The Works of Bastiat 3: The Paris Writings II 1848-1850
Part 3: The “Paris” Writings II: Bastiat the Politician, Anti-Socialist, and Economist (Feb. 1848 - Dec. 1850)
[Updated: 30 March, 2018 - a "work in progress"]
New: a revised translation of The Law.
Note: We have added final draft versions of material which will appear in the Collected Works, vol.3 "Economic Sophisms and WSWNS"; and the Collected Works, vol. 4 "Miscellaneous Writings on Economics."
Street Barricades in Paris, June Days 1848
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The National Assembly in Paris
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Introduction to the Collected Works in Chronological Order
Frédéric Bastiat’s 6 volume Collected Works published by Liberty Fund is a thematic collection.
- Vol. 1: The Man and the Statesman: The Correspondence and Articles on Politics, translated from the French by Jane and Michel Willems, with an introduction by Jacques de Guenin and Jean-Claude Paul-Dejean. Annotations and Glossaries by Jacques de Guenin, Jean-Claude Paul-Dejean, and David M. Hart. Translation editor Dennis O’Keeffe (Indianapolis: Liberty Fund, 2011). /titles/2393.
- Vol. 2: The Law, The State, and Other Political Writings, 1843–1850, Jacques de Guenin, General Editor. Translated from the French by Jane Willems and Michel Willems, with an introduction by Pascal Salin. Annotations and Glossaries by Jacques de Guenin, Jean-Claude Paul-Dejean, and David M. Hart. Translation Editor Dennis O’Keeffe. Academic Editor, David M. Hart (Indianapolis: Liberty Fund, 2012). /titles/2450.
- Vol. 3: Economic Sophisms and “What is Seen and What is Not Seen”. Jacques de Guenin, General Editor. Translated from the French by Jane and Michel Willems, with a foreword by Robert McTeer, and an introduction and appendices by the Academic Editor David M. Hart. Annotations and Glossaries by Jacques de Guenin, Jean-Claude Paul-Dejean, and David M. Hart. Translation Editor Dennis O'Keeffe. (Indianapolis: Liberty Fund, 2017). (Not yet online.)
- Vol. 4: Miscellaneous Works on Economics: From “Jacques-Bonhomme” to Le Journal des Économistes (forthcoming)
- Vol. 5: Economic Harmonies (forthcoming)
- Vol. 6: The Struggle Against Protectionism: The English and French Free-Trade Movements (forthcoming)
There will also be an online edition of Bastiat’s writings in chronological order. We have divided Bastiat’s works into 4 parts based upon the key periods and events in his life:
- Early Writings: The Bayonne and Mugron Years, 1819–1844
- The “Paris” Writings I: Bastiat and the Free Trade Movement (Oct. 1844 - Feb. 1848)
- The “Paris” Writings II: Bastiat the Politician, Anti-Socialist, and Economist (Feb. 1848 - Dec. 1850)
- The Unfinished Treatises: The Social and Economic Harmonies and The History of Plunder (1850–51)
For further information, see:
- the LF published edition of Bastiat’s Collected Works in 6 vols.
- the main Bastiat page in the OLL
- the Reader’s Guide to the Works of Frédéric Bastiat (1801–1850)
- the Liberty Matters discussion of Bastiat: Lead essay by Robert Leroux, “Bastiat and Political Economy” (July 1, 2013) with response essays by Donald J. Boudreaux, Michael C. Munger, and David M. Hart. </pages/bastiat-and-political-economy.
- Essays and other material about Bastiat
- Table of Contents of Bastiat’s Letters, Articles, and Books Listed in Chronological Order
The abbreviations used in this paper:
- 1847.02.14 = the work was published on Feb. 14, 1847
- ACLL = the English Anti-Corn Law League (1838-46)
- AEPS = L'Annuaire de l'économie politique et statistique (published by Guillaumin)
- ASEP = Annales de la Société d'Économie Politique. Publiées sous la direction de Alph. Courtois fils, secrétaire perpétuel, Tome premier 1846-1853 (Paris: Guillaumin,1889).
- CRANC = Compte rendu des séances de l'Assemblée Nationale Constituante
- CRANL = Compte rendu des séances de l'Assemblée Nationale Législative
- CF = Le Courrier française
- CH = Letters from Lettres d'un habitant des Landes, Frédéric Bastiat. Edited by Mme Cheuvreux. (1877)
- CW = the Collected Works of Frédéric Bastiat (Liberty Fund edition)
- CW1 = volume 1 of The Collected Works of Frédéric Bastiat
- OC = Oeuvres complètes de Frédéric Bastiat (Paillottet/Guillaumin edition)
- OC1.9 = the 9th article in vol. 1 of the Oeuvres complètes
- DEP = Dictionnaire d'économie politique
- DMH = text discovered by David M. Hart which is not in Paillottet's OC
- EH = Economic Harmonies
- EH1 = Economic Harmonies - the incomplete edtion publlished by FB during his lifetime in Jan. 1850 (11 chaps.)
- EH2 = Economic Harmonies - the expanded edtion with 22 chaps. publlished by Paillottet and Fontenay in July 1851
- Encyclopédie du dix-neuvième siècle (1846) = Encyclopédie du dix-neuvième siècle: répertoire universel des sciences, des lettres et des arts avec la biographie de tous les hommes célèbres, ed. Ange de Saint-Priest (Impr. Beaulé, Lacour, Renoud et Maulde, 1846)
- ES1 = Economic Sophisms. First Series (published Jan. 1846)
- ES1.10 = the tenth essay in ES1
- ES2 = Economic Sophisms. Second Series (published Jan. 1848)
- ES3 = Economic Sophisms. Third Series (compiled and published by LF in 2017 in CW3)
- FEE = Foundation for Economic Education
- JB = the journal Jacques Bonhomme (June 1848)
- JCPD = the original document was unpublished and is in the possession of Jean-Claude Paul-Dejean
- JDD = Journal des débats
- JDE = Journal des Économistes
- LÉ = Le Libre-Échange
- n.d. = no date of publication is known
- OC1 = Oeuvres complètes de Frédéric Bastiat, ed. Prosper Paillottet in 6 vols. (1854–55)
- OC2 = 2nd edition of Oeuvres complètes de Frédéric Bastiat, ed. Prosper Paillottet in 7 vols. (1862–64)
- PES = Political Economy Society (Société d'économie politique)
- PP = Prosper Paillottet, the editor of FB's OC
- RF = La République française Feb.-March 1848)
- Ronce = P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905).
- SP = La Sentinelle des Pyrénées
- PES = Political Economy Society (Société d'Économie Politique)
- T = either means "volume" (tome) or "Text" ID number (as in T.28)
- T.1 = text number one in the chronological table of contents of his writings
- WSWNS = What Is Seen and What Is Not Seen
The full method of citation for Bastiat’s writings (which is sometimes abbreviated in this article for reasons of space):
- T.102 (1847.01.17) "L'utopiste" (The Utopian) [Le Libre-Échange, 17 January 1847] [OC4.2.11, pp. 203–12] [ES2 11, CW3, pp. 187-98]
- text number in chronological ToC, date, French title, English title, place and date of original publication, location in French OC, location in ES, location in LF's CW volume.
- Letter 3. Bayonne, 18 March 1820. To Victor Calmètes [OC1, p. 3] [CW1, pp. 28-30]
- letter number in CW1, place and date letter written, recipient, location in OC, location in LF CW
Table of Contents
- Letter 91. Paris, 25 Feb. 1848. To Richard Cobden
- Letter 92. Paris, 26 Feb. 1848. To Richard Cobden
- Letter 93. Paris, 27 Feb. 1848. To Madame Marsan
- Letter 94. Paris, 29 Feb. 1848. To Félix Coudroy
- Letter 95. Paris, 4 March 1848. To M. Domenger, in Mugron
- Letter 96. Mugron, 5 Apr. 1848. To Richard Cobden
- Letter 97. Mugron, 12 Apr. 1848. To Horace Say
- Letter 98. Paris, 11 May 1848. To Richard Cobden
- Letter 99. Paris, 17 May 1848. To Madame Schwabe
- Letter 100. Paris, 27 May 1848. To Richard Cobden
- Letter 101. Paris, 9 June 1848. To Félix Coudroy
- Letter 102. Paris, 24 June 1848. To Félix Coudroy
- Letter 103. Paris, 27 June 1848. To Richard Cobden
- Letter 104. Paris, 29 June 1848. To Julie Marsan
- Letter 105. Paris, 1 July 1848. To M. Schwabe
- Letter 106. Paris, 7 Aug. 1848. To Richard Cobden
- Letter 107. Paris, 18 Aug. 1848. To Richard Cobden
- Letter 108. Paris, 26 Aug. 1848. To Félix Coudroy
- Letter 109. Paris, 3 Sept. 1848. To M. Domenger
- Letter 110. Paris, 7 Sept. 1848. To Félix Coudroy
- Letter 111. Dover, 7 Oct. 1848. To M. Schwabe
- Letter 112. Paris, 25 Oct. 1848. To M. Schwabe
- Letter 113. Paris, Nov. 1848. To Madame Cheuvreux
- Letter 114. Paris, 14 Nov. 1848. To Madame Schwabe
- Letter 115. Paris, 26 Nov. 1848. To Félix Coudroy
- Letter 116. Paris, 5 Dec. 1848. To Félix Coudroy
- Letter 117. Paris, 21 Dec. 1848. To M. le Comte Arrivabene
- Letter 118. Paris, 28 Dec. 1848. To Madame Schwabe
- Letter 119. Paris, Jan. 1849. To Madame Cheuvreux
- Letter 120. Paris, 1er Jan. 1849. To Félix Coudroy
- Letter 121. Paris, 15 Jan. 1849. To M. George Wilson
- Letter 122. Paris, 18 Jan. 1849. To M. Domenger
- Letter 123. Paris, Feb. 1849. To Madame Cheuvreux
- Letter 124. Paris, Feb. 1849. To Madame Cheuvreux
- Letter 125. Paris, 3 Feb. 1849. To M. Domenger
- Letter 126. Paris, no date, 1849. To M. Domenger
- Letter 127. Paris, no date 1849. To M. Domenger
- Letter 128. Paris, March 1849. To Madame Cheuvreux
- Letter 129. Paris, 11 March 1849. To Madame Schwabe
- Letter 130. Paris, 15 March 1849. To Félix Coudroy
- Letter 131. Paris, 25 March 1849. To M. Domenger
- Letter 132. Paris, 8 Apr. 1849. To M. Domenger
- Letter 133. Paris, 25 Apr. 1849. To Félix Coudroy
- Letter 134. Paris, 29 Apr. 1849. To M. Domenger
- Letter 135. Paris, 3 May 1849. To Madame Cheuvreux
- Letter 136. Paris, sans date, 1849. To M. Domenger
- Letter 137. Bruxelles, hôtel de Bellevue, June 1849. To Madame Cheuvreux
- Letter 138. Bruxelles, June 1849. To Madame Cheuvreux
- Letter 139. Anvers, June 1849. To Madame Cheuvreux
- Letter 140. Paris, mardi 13, summer 1849. To M. Domenger
- Letter 141. Paris, 14 July 1849. To M. Paillottet
- Letter 142. Paris, 30 July 1849. To Félix Coudroy
- Letter 143. Mont-de-Marsan, 30 Aug. 1849. To Madame Cheuvreux
- Letter 144. Mugron, 12 Sept. 1849. To Madame Cheuvreux
- Letter 145. Mugron, 16 Sept. 1849. To Madame Cheuvreux
- Letter 146. Mugron, 16 Sept. 1849. To Horace Say
- Letter 147. Mugron, 18 Sept. 1849. To Madame Cheuvreux
- Letter 148. Paris, 7 Oct. 1849. To Madame Cheuvreux
- Letter 149. Paris, 8 Oct. 1849. To Madame Cheuvreux
- Letter 150. Paris, 14 Oct. 1849. To Madame Schwabe
- Letter 151. Paris, 17 Oct. 1849. To Richard Cobden
- Letter 152. Paris, 24 Oct. 1849. To Richard Cobden
- Letter 153. Paris, Nov. 1849. To Madame Cheuvreux
- Letter 154. Paris, 13 Nov. 1849. To M. Domenger
- Letter 155. Paris, 13 Dec. 1849. To Félix Coudroy
- Letter 156. Paris, 25 Dec. 1849. To M. Domenger
- Letter 157. Paris, 31 Dec. 1849. To Richard Cobden
- Letter 158. Paris, Jan. 1850. To Félix Coudroy
- Letter 159. Paris, 2 Jan. 1850. To Madame Cheuvreux
- Letter 160. Paris, Jan. 1850. To Madame Cheuvreux
- Letter 161. Paris, Feb. 1850. To Madame Cheuvreux
- Letter 162. Paris, 18 Feb. 1850. To M. Domenger
- Letter 163. Paris, March 1850. To Madame Cheuvreux
- Letter 164. Paris, 22 March 1850. To M. Domenger
- Letter 165. Paris, 11 Apr. 1850. To Madame Cheuvreux
- Letter 166. Bordeaux, May 1850. To Madame Cheuvreux
- Letter 167. Mugron, 19 May 1850. To M. Paillottet
- Letter 168. Mugron, 20 May 1850. To Madame Cheuvreux
- Letter 169. Mugron, 23 May 1850. To Madame Cheuvreux
- Letter 170. Mugron, 27 May 1850. To Madame Cheuvreux
- Letter 171. Mugron, 2 June 1850. To M. Paillottet
- Letter 172. Mugron, 3 June 1850. To Horace Say
- Letter 173. Mugron, 11 June 1850. To Mlle Louise Cheuvreux
- Letter 174. Eaux-Bonnes, 15 June 1850. To Madame Cheuvreux
- Letter 175. Eaux-Bonnes, 23 June 1850. To M. Paillottet
- Letter 176. Eaux-Bonnes, 23 June 1850. To Madame Cheuvreux
- Letter 177. Eaux-Bonnes, 24 June 1850. To Madame Cheuvreux
- Letter 178. Eaux-Bonnes, 28 June 1850. To M. Paillottet
- Letter 179. Eaux-Bonnes, 2 July 1850. To M. Paillottet
- Letter 180. Eaux-Bonnes, 3 July 1850. To M. de Fontenay
- Letter 181. Eaux-Bonnes, 4 July 1850. To Madame Cheuvreux
- Letter 182. Eaux-Bonnes, 4 July 1850. To Horace Say
- Letter 183. Mugron, July 1850. To Madame Cheuvreux
- Letter 184. Mugron, 14 July 1850. To M. Cheuvreux
- Letter 185. Paris, 3 Aug. 1850. To Richard Cobden
- Letter 186. Paris, 17 Aug. 1850. To Richard Cobden
- Letter 187. Paris, 17 Aug. 1850. To the President of the Congrès de la Paix
- Letter 188. Paris, 9 Sept. 1850. To Richard Cobden
- Letter 189. Paris, 9 Sept. 1850. To Félix Coudroy
- Letter 190. Lyon, 14 Sept. 1850. To M. Paillottet
- Letter 191. Lyon, 14 Sept. 1850. To Melle Louise Cheuvreux
- Letter 192. Lyon, 14 Sept. 1850. To Madame Cheuvreux
- Letter 193. Marseille, 18 Sept. 1850. To M. Cheuvreux
- Letter 194. Marseille, 22 Sept. 1850. To Madame Cheuvreux
- Letter 210 to Paillottet (Pisa, 30 Sept. 1850) [CW4 draft - 16 June 2017]
- Letter 195. Pisa, 2 Oct. 1850. To Madame Cheuvreux
- Letter 211 to Paillottet (Pisa, 7 Oct. 1850) [CW4 draft - 16 June 2017]
- Letter 196. Pisa, 8 Oct. 1850. To M. Domenger
- Letter 212 to Paillottet (Pisa, 11 Oct. 1850) [CW4 draft - 16 June 2017]
- Letter 197. Pisa, 11 Oct. 1850. To M. Paillottet
- Letter 213 to M. Soustra, (Pise, 12 Oct. 1850) [CW4 draft - 16 June 2017]
- Letter 198. Pisa, 14 Oct. 1850. To Madame Cheuvreux
- Letter 199. Pisa, 18 Oct. 1850. To Richard Cobden
- Letter 200. Pisa, 20 Oct. 1850. To Horace Say
- Letter 201. Pisa, 28 Oct. 1850. To M. le Comte Arrivabene
- Letter 202. Pisa, 29 Oct. 1850. To Madame Cheuvreux
- Letter 214 to Paillottet (Rome, 8 Nov. 1850) [CW4 draft - 16 June 2017]
- Letter 203. Rome, 11 Nov. 1850. To Félix Coudroy
- Letter 204. Rome, 26 Nov. 1850. To M. Paillottet
- Letter 205. Rome, 28 Nov. 1850. To M. Domenger
- Letter 206. Rome, 8 Dec. 1850. To M. Paillottet
- Letter 207. Rome, 14, 15, 16, 17 Dec. 1850. To Madame Cheuvreux
- Letter 208. Letter from Prosper Paillottet to Mme Cheuvreux, Rome, 22 Dec. 1850
- Letter 209. (1851.??) “Lettre non datée” (Undated letter), "Les Harmonies économiques. Lettre de M. Carey; réponse de MM. Frédéric Bastiat et A. Clément"
Bastiat's Writings after the February 1848 Revolution
- T.293 (post-1848) "On Experience and Responsibility" [CW4 - draft 19 June 2017]
- T.295 (c. 1848) "Why our Finances are in a Mess" [CW4 - draft 19 June 2017]
- T.186 [1848.02.26] "A Few Words about the Title of our Journal: La République française" (26 Feb. 1848, RF) [CW4 - draft 19 June 2017]
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Articles in La République française (26 Feb. to 14 March)
- T.186 (1848.02.26) "A Few Words about the Title of our Journal" (RF, Feb. 1848) [CW3 - final draft]
- T.187 (1848.02.27) "The Streets of Paris" (RF, Feb. 1848)
- T.188 (1848.02.27) "Under the Republic" (RF, Feb. 1848)
- T.189 (1848.02.28) "A thought in La Presse" (RF, Feb. 1848)
- T.190 (1848.02.28) "All our cooperation" (RF, Feb. 1848)
- T.191 (1848.02.28) "On Disarmament" (RF, Feb. 1848)
- T.192 (1848.02.29) "The General Good" (RF, Feb. 1848)
- T.193 (1848.02.29) "The Kings Must Disarm" (RF, Feb. 1848)
- T.194 (1848.02.29) "The Sub-Prefects" (RF, Feb. 1848) [CW3 - final draft]
- T.195 (1848.03.01) "Untitled Article" (On Diplomacy and Government Jobs) (RF, March 1848)
- T.196 (1848.03.01) "The Parisian Press" (RF, March 1848)
- T.197 (1848.03.02) "Petition from an Economist" (RF, March 1848)
- T.198 (1848.03.04) "Freedom of Teaching" (RF, March 1848)
- T.199 (1848.03.05) "The Scramble for Office" (RF, March 1848)
- T.200 (1848.03.06) "Impediments and Taxes" (RF, March 1848)
- T.201 (1848.03.12) "The Immediate Relief of the People" (RF, March 1848) [CW3 - final draft]
- T.202 (1848.03.14) "A Disastrous Remedy" (RF, March 1848)[CW3 - final draft]
- T.204 (1848.03.15) "Disastrous Illusions" (JDE, March 1848)
- T.205 (1848.03.19) "Circulars from a Government that is Nowhere to be Found" (LE, March 1848)
- T.206 (1848.03.22) "Statement of Electoral Principles. To the Electors of Les Landes, 22 March, 1848"
- T.207 (1848.03.28) "Letter to an Ecclesiastic"
- T.302 [1848.05.13] "Speaks in a Discussion in the Assembly on the Formation of Committees" (13 May 1848) [CW4 - draft 19 June 2017]
- T.208 (1848.05.15) "Property and Law" (JDE, May 1848)
- T.209 (1848.06) Individualism and Fraternity
- T.210 (1848.06.??) "On Religion"
- T.303 [1848.06.09] "Speaks in a Discussion of Randoing 's Proposal to increase Export Subsidies on Woollen Cloth" (9 June 1848) [CW4 - draft 19 June 2017]
-
Articles in Jacques Bonhomme (11-20 June)
- T.211 (1848.06.11) "Freedom" (JB, June 1848)
- T.212 (1848.06.11) "The State" (JB, June 1848)
- T.213 (1848.06.11) "The National Assembly" (JB, June 1848)
- T.214 (1848.06.11) "Laissez-Faire" (JB, June 1848)
- T.216 [1848.06.15] "A Hoax" (15 June 1848, JB) [CW4 - draft 19 June 2017]
- T.217 [1848.06.15] "Taking Five and Returning (giving back) Four is not Giving" (15 June 1848, JB) [CW4 - draft 19 June 2017]
- T.218 [1848.06.20] "A Dreadful Escalation" (20 June 1848, JB) [CW4 - draft 19 June 2017]
- T.219 (1848.06.20) "To Citizens Lamartine and Ledru-Rollin" (JB, June 1848)
- T.215 (1848.06.15) "Justice and Fraternity" (JDE, June 1848)
- T.220 (1848.07.24) "Property and Plunder" (JDD, July 1848)
- T.304 [1848.07.26] "Speaks in a Discussion on the Decree concerning the Regulation of the Political Clubs" (26 July 1848) [CW4 - draft 19 June 2017]
- T.203 [1848.07.28] "A Complaint made by M. Considerant and F. Bastiat's Reply." [CW4 - draft 19 June 2017]
- T.305[1848.08.09] "Report to the Assembly from the Finance Committee concerning a Grant to assist needy citizens in the Department of la Seine" (9 August 1848) [CW4 - draft 19 June 2017]
- T.306 [1848.08.10] "Additional Comments in the Assembly on the Report from the Finance Committee concerning a Grant to assist needy citizens in the Department of la Seine" (10 August 1848) [CW4 - draft 19 June 2017]
- T.221 (1848.08.13) "Letter on the Referendum for the Election of the President of the Republic" (JDL, Aug. 1848)
- T.307 [1848.08.24] "Speech in the Assembly on Postal Reform" (24 August 1848) [CW4 - draft 19 June 2017]
- T.222 (1848.09.25) "The State" (JDD, Sept. 1848)
- T.223 [1848.09.01] "Economic Harmonies: I, II, and III. The Needs of Man" (1 Sept., 1848, JDE) [CW4 - draft 19 June 2017]
- T.224 [1848.10] Bastiat's Letter to Garnier on the Right to a Job (Oct, 1848) [CW4 - draft 19 June 2017]
- T.273 [1848.10.10] "Comments at a Meeting of the Political Economy Society on Income Tax" (10 Oct., 1848) [CW4 - draft 19 June 2017]
- T.308 [1848.10.27] "Speaks in a Discussion in the Assembly on the Election of the President of the Republic" (27 Oct. 1848) [CW4 - draft 19 June 2017]
- T.274 [1848.12.10] "Comments at a Meeting of the Political Economy Society on the Emancipation of the Colonies" (10 Dec. 1848) [CW4 - draft 19 June 2017]
- T.225 [1848.12.15] "Economic Harmonies IV" (JDE, 15 Dec. 1848) [CW4 - draft 19 June 2017]
Bastiat's Writings in 1849
- T.226 (1849.??) "On the Separation of the Temporal and Spiritual Domains"
- T.227 (1849.??) "Report Presented to the 1849 Session of the General Council of the Landes, on the Question of Common Land"
- T.228 (1849.??) "Statement of Electoral Principles in 1849"
- T.229 (1849.??) "Concerning Religion"
- T.294 [1849.??] "On the Value of Services" (c.1849-50) [CW4 - draft 19 June 2017]
- T.316 [1849.??] "Money and the Mutuality of Services" (c. 1849) [CW4 - draft 19 June 2017]
- T.231 (1849.01) Protectionism and Communism
- T.232 [1849.01.01] "The Consequences of the Reduction in the Salt Tax" (JDD, 1 Jan. 1849) [CW4 - draft 19 June 2017]
- T.309 [1849.01.11] "Speaks in a Discussion in the Assembly on a Proposal to change the Tariff on imported Salt" (11 Jan. 1849) [CW4 - draft 19 June 2017]
- T.233 (1849.01.15) "Letter from Bastiat to Mr. G. Wilson, 15 Jan. 1849" [CW6 -to come]
- T.234 [1849.02] Capital and Rent (Feb. 1849) [CW4 - draft 19 June 2017]
- T.235 (1849.02) Peace and Freedom or the Republican Budget
- T.275 [1849.02.10] "Comments at a Meeting of the Political Economy Society on Financial Reform" (10 Feb. 1849) [CW4 - draft 19 June 2017]
- T.310 [1849.02.22] "Speaks in a Discussion in the Assembly on Amending the Electoral Law" (26 Feb. 1849) [CW4 - draft 19 June 2017]
- T.236 (1849.03) Parliamentary Conflicts of Interest
- T.311 [1849.03.10] "Speech in the Assembly on Amending the Electoral Law (Third Reading)" (10 and 13 March 1849) [CW4 - draft 19 June 2017]
- T.237 (1849.03.15) Bastiat's remarks from a discussion on "Parliamentary Conflicts of Interest" (JDE, March 1849)
- T.238 (1849.04) "Statement of Electoral Principles in April 1849"
- T.239 [1849.04.15] Damned Money! (15April 1849, JDE) [CW4 - draft 19 June 2017]
- T.276 [1849.05.10] "Comments at a Meeting of the Political Economy Society on the Peace Congress and State support for an Experimental Socialist Community" (10 May 1849) [CW4 - draft 19 June 2017]
- T.230 [1849.06??] "Capital" (mid-1849, Almanac rép.) [CW4 - draft 19 June 2017]
- T.290 [1849.06] "When extremes meet" (June 1849) [CW4 - draft 19 June 2017]
- T.240 and T. 283 [1849.08.22] Speech on "Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement." (22 Aug. 1849) [CW4 - draft 19 June 2017]
- T.312 [1849.10.06] "Speaks in a Discussion in the Assembly on changing the Law on the Appropriation of Private Property for Public Use" (6 Oct. 1849) [CW4 - draft 19 June 2017]
- T.277 [1849.10.10] "Comments at a Meeting of the Political Economy Society on the Limits to the Functions of the State (Part 1) and Molinari's Book" (10 Oct. 1849) [CW4 - draft 19 June 2017]
-
T.241 [1849.10.22] Free Credit (Oct. 1849 - March 1850, Voix du peuple) [CW4 - draft 19 June 2017]
- Letter No. 1: F. C. Chevé to F. Bastiat (22 October 1849)
- Proudhon's Preface to Bastiat's First Letter
- Letter No. 2: F. Bastiat to the Editor (12 November 1849)
- Letter No. 3: P. J. Proudhon to F. Bastiat (19 November 1849)
- Letter No. 4: F. Bastiat to P. J. Proudhon (26 November 1849)
- Letter No. 5: P. J. Proudhon to F. Bastiat (3 December 1849)
- Letter No. 6: F. Bastiat to P. J. Proudhon (10 December 1849)
- Letter No. 7: P. J. Proudhon to F. Bastiat (17 December 1849)
- Letter No. 8 : F. Bastiat to P. J. Proudhon (24 December 1849)
- Long footnote from Letter 8
- Letter No. 9: P. J. Proudhon to F. Bastiat (31 December 1849)
- Letter No. 10: F. Bastiat to P. J. Proudhon (6 January 1850)
- Letter No. 11: P. J. Proudhon to F. Bastiat (21 January 1850)
- Letter No. 12: F. Bastiat to P. J. Proudhon (4 February 1850)
- Letter No. 13: P. J. Proudhon to F. Bastiat (11 February 1850)
- Letter No. 14: F. Bastiat to P. J. Proudhon (7 March 1850)
- T.242 [1849.11.10] "Comments at a Meeting of the Political Economy Society on Disarmament and the English Peace Movement" (10 Nov. 1849) [CW4 - draft 19 June 2017]
- T.319 [1849.11.16] "Speaks in the Assembly on the Right to Form Unions" (16 Nov. 1849) [CW4 - draft 19 June 2017]
- T.243 (1849.11.17) "Speech on The Repression of Industrial Unions"
- T.245 [1849.12.10] "Comments at a Meeting of the Political Economy Society on State Support for popularising Political Economy, his idea of Land Rent in Economic Harmonies, the Tax on Alcohol, and Socialism" (10 Dec. 1849) [CW4 - draft 19 June 2017
- T.244 (1849.12.12) "Speech on the Tax on Wines and Spirits"
- T.245 (1849.12.15) Bastiat's comments from a discussion of Economic Harmonies and the tax on alcohol (JDE, Dec. 1849) [CW4 - to come]
Bastiat's Writings in 1850
- T.246 (1850.??) "The Three Pieces of Advice"
- T.247 (1850.??) Baccalaureate and Socialism
- T.168 [1850.??] "Liberty, Equality" (c. 1850) [CW4 - draft 19 June 2017]
- T.168 [1850.??] "Liberty, Equality" (c. 1850) [CW4 - draft 19 June 2017]
- T.301 [1850.??] "On coerced Charity" (c. 1850) [CW4 - draft 19 June 2017]
- T.315 [1850.??] "The Consequences of an Action" (c. 1850) [CW4 - draft 19 June 2017]
- T.182 [1850.??] "Our Abilities vs. Our Needs" (c. 1850) [CW4 - draft 19 June 2017]
- T.284 [1850.??] "A Note on Economic and Social Harmonies" (c. early 1850) [CW4 - draft 19 June 2017]
- T.249 (1850.01) Economic Harmonies. 1st ed. [CW5 -to come]
- T.250 [1850.01.10] "Comments at a Meeting of the Political Economy Society on the Limit to the Functions of the State" (Part 2)" (10 Jan. 1850) [CW4 - draft 19 June 2017]
- T.313 [1850.02.06] "Speaks in a Discussion in the Assembly on Public Education" (6 Feb. 1850) [CW4 - draft 19 June 2017]
- T.314 [1850.02.09] "Speaks in a Discussion in the Assembly on a Plan to give money to Workers Associations" (9 Feb. 1850) [CW4 - draft 19 June 2017]
- T.251 [1850.02.10] "Comments at a Meeting of the Political Economy Society on the Limits to the Functions of the State (Part 3)" (10 Feb. 1850) [CW4 - draft 19 June 2017]
- T.253 [1850.03.29] "The Balance of Trade" (29 March 1850) [CW4 - draft 19 June 2017]
- T.254 (1850.04.01) "Reflections on the Amendment of M. Mortimer-Ternaux"
- T.255 [1850.04.15] "England's New Colonial Policy. Lord John Russell's Plan" (JDE, 15 Apr. 1850) [CW4 - draft 19 June 2017]
- T.256 [1850.04.10] "Comments at a Meeting of the Political Economy Society on Land Credit" (10 Apr. 1850) [CW4 - draft 19 June 2017]
- T.257 (1850.05.15) "Plunder and Law" (JDE, May 1850)
- T.248 [1850.06??] "Abundance" (summer 1850, DEP) [CW4 - draft 19 June 2017]
- T.258 (1850.06) The Law [revised translation (February, 2018)]
- T.259 (1850.07) What is Seen and What is Not Seen [CW3 - final draft]
- T.278 [1850.09.10] "The Society's farewell to Bastiat at a Meeting of the PES" (10 Sept. 1850) [CW4 - draft 19 June 2017]
- T.292 [1850.10??] "On the Idea of Value" (late 1850) [CW4 - draft 19 June 2017]
- T.279 [1851.01.15] "The announcements of Bastiat's death at a Meeting of the PES and in the JDE" (10, 15 Jan. 1851) [CW4 - draft 19 June 2017]
Posthumous Material
- T.260 (1851.07) Economic Harmonies (2nd ed.) [CW5 -to come]
- T.261 (1852.??) "Abundance"; "The State"; "The Law" (DEP, 1852-53) [CW4 - draft 29 Jan. 2016 version]
- T.262 (1854-55) Oeuvres complète (1st ed.)
- T.263 (1862-64) Oeuvres complète (2nd ed.)
- T.264 (1863) Oeuvres choisies, 3 vols.
- T.265 (1877.??) Lettres d’un habitant des Landes
- What is Seen and What is Not Seen (July 1850) [CW3 - final draft]
Introduction to Part 3: The “Paris” Writings II: Bastiat the Politician, Anti-Socialist, and Economist (Feb. 1848 - Dec. 1850)↩
Large armaments necessarily entail heavy taxes : heavy taxes force governments to have recourse to indirect taxation. Indirect taxation cannot possibly be proportionate, and the want of proportion in taxation is a crying injustice inflicted upon the poor to the advantage of the rich. This question, then, alone remains to be considered : Are not injustice and misery, combined together, an always imminent cause of revolutions?
(Speech to the Friends of Peace Conference, Paris, 22 Aug., 1849. CW3)
Key works from this period:
- his revolutionary street journalism in La République française (Feb.-March 1848) and Jacques Bonhomme (June 1848):
- his statement of Republican and liberal principles in T.186 “A Few Words about the Title of our Journal” (26 Feb. 1848)
- his classic essay on “the great fiction”, T.212 “The State” (June 1848) and T.222 (Sept. 1848)
- T.214 "Laissez-Faire" (June 1848)
- T.219 “To Citizens Lamartine and Ledru-Rollin” (June 1848)
- his T.238 “Statement of Electoral Principles” (April, 1849)
- the 12 anti-socialist pamphlets or “Petits Pamphlets”, such as The State (June, Sept. 1848)
- his plans for cutting taxes and the size of the military:
- T.235 Peace and Freedom or the Republican Budget (February 1849) and
- T.240 “Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement” (Aug. 1849)
- his writings on money and interest:
- T.239 Damn Money! (April 1849) and
- T.241 Free Credit (October 1849 - February 1850)
- his important last works:
- T.258 The Law (June 1850) and
- T.259 What is Seen and What is not Seen (July 1850)
Beginning the day after the Revolution, Bastiat and some younger friends started a small daily newspaper, La République française, which they distributed on the streets of Paris for an entire month.[49] On the first page of the first issue Bastiat and his friends declared their fervent republican ideals and a long list of liberal reforms they wanted to see introduced in the new Republic: the complete freedom of working, an end to state funded religion and education, an end to all taxes on food, an end to conscription into the army, and the “inviolable respect for property” (especially that form of property which was one’s own labour).[50]
This began a new phase in Bastiat’s life which was focussed on national politics (he was elected to the Constituent Assembly in April 1848 and to the Legislative Assembly in May 1849 representing his home district of Les Landes), reforming the taxation and expenditure policies of the new government (via his position as VP of the Finance Committee of the Chamber), and countering the socialist movement which had become a powerful force during the revolution.
Concerning Bastiat’s more formal political activities, we have several examples of the material Bastiat circulated to the electors in his home town and electoral district of Mugron in his efforts to get elected, firstly unsuccessfully in July 1846 with “To the Electors of the Arrondissement of Saint-Sever”[51], and then successfully to the Constituent and then the National Assembly in a “Statement of Electoral Principles” (March, 1848),[52] “Letter on the Referendum for the Election of the President of the Republic” (Aug. 1848),[53] and “Statement of Electoral Principles” (April, 1849).[54] These provide some clues to his political ideas and his program for reform. In his address “To the Electors of the Arrondissement of Saint-Sever” (July 1846) he gave a clear statement of his belief in a very limited role for government, seeing it as a dangerous living power which was constantly trying to grow in size. It was up to informed voters to make sure that it stuck to doing its proper job of “administering justice, of repressing crime, of paving roads, of repelling foreign aggression.” He also has an impassioned denunciation of French colonial policy in Algeria, calling the colonial system, whether British or French, “the most disastrous illusion ever to have led nations astray.”
In his campaign to get re-elected to the Legislative Assembly in April 1849 he reminded the Landais voters that he had served with some distinction on the Finance Committee and had opposed the socialist policies of the new government which he described as “theft regularized by law and executed through taxes.” One of his arguments to counter criticism of his voting behaviour in the Assembly was that he sometimes supported the right (on cutting taxes) and sometimes the left (on the right to form unions) depending on who best supported the principle of individual liberty at any given moment. He usually sided with the right on economic issues, and with the left on civil liberties issues. We also have a couple of formal speeches which he gave in the Assembly on cutting the tax on alcohol and the right of workers to form unions.[55] Unfortunately we do not yet have a detailed account of his activities in the Chamber’s Finance Committee (of which he was repeatedly elected Vice-President) or of his full voting record in the Chamber. We do know that he voted to reduce the tax on salt and the mailing of letters, reducing the size of the military, and abolishing conscription. We also have a couple of pamphlets he wrote on matters before the Assembly which he wanted to have circulated in print because he could not make himself heard in the Chamber because of his worsening throat condition. This included pamphlets on reducing the tax on salt (Jan. 1849), ending state subsidies to education, cutting the size of the military budget, and ending conflicts of interest in the Chamber by forbidding civil servants from also being Deputies.[56]
He briefly returned to radical street journalism while an elected Deputy in June 1848 when he, Molinari, and a few other economists created another magazine directed at ordinary people called, Jacques Bonhomme,[57] which appeared for only 4 issues before the rioting and army crackdown of the June Days forced them to close for reasons of safety. In the middle of street demonstrations in favour of socialism Bastiat and his friends were handing out their newspaper with articles calling for laissez-faire economic policies and denouncing the welfare state as “that great fiction where everybody tries to live at the expence of everybody else.”[58] The earliest version of his great essay “The State” appeared as a short article in Jacques Bonhomme and it is quite likely that it was also pasted up all over the working class areas of Paris as a wall poster or placard. Bastiat also bravely wrote and circulated leaflets calling for the immediate closing down of the National Workshops which were bankrupting the French state.[59] It was the closure of the Workshops which prompted the June Days’ rioting and its brutal suppression by the Army and National Guard, when thousands were killed or arrested. In spite of opposing the demands of the rioters, Bastiat courageously intervened when he saw soldiers firing into the crowds by arranging a cease fire and helping carry the dead and wounded into the side streets where they could be attended to.[60]
Bastiat played an important part in the anti-socialist campaign undertaken by Guillaumin and the political economists. They published a large number of pamphlets and books during 1848 and 1849 to oppose the socialists’s support for the right to work (i.e. a right to a job guaranteed by the state) which they wanted to see included in the new Constitution which was being debated by the Constituent Assembly over the summer of 1848, the National Workshops unemployment relief program established by Louis Blanc, Proudhon’s plans for a Peoples’ Bank which would issue interest free credit to workers, and the greatly expanded demands on the state’s budget to provide all manner of what we would today call policies of the modern welfare state. This is the context of Bastiat’s anti-socialist pamphlet, The State (June, Sept. 1848),[61] which would become the first of a series of 12 anti-socialist pamphlets, marketed by Guillaumin as “Mister Bastiat’s Little Pamphlets” which he wrote over the next two years. These pamphlets include Property and Law (May 1848)[62] - which was a general defence of the right to property; Individualism and Fraternity (June 1848)[63] - where he defends the idea of individualism against socialist ideas of fraternity espoused by people like Louis Blanc; Property and Plunder (July 1848)[64] - where Bastiat discusses the difference between plunder, or the appropriation of other people’s justly acquired property, and non-violent trade where services are exchanged for other services to mutual advantage including rent charged for land use; two works which point out to conservative protectionists that their ideas are very similar to that of the socialists, that it was just another form of the communism, or legal plunder, Protectionism and Communism (January 1849)[65] and Plunder and Law (May 1850);[66] and Damn Money! (April 1849) in which he warns of the dangers of paper money.[67]
One of Bastiat’s major concerns as a Deputy was to cut the size of the government’s budget by eliminating programs and reducing expenditure to an absolute minimum. This would allow the abolition or cutting of most taxes and tariffs which weighed heavily on the poor and the average worker (especially on food and drink). Since expenditure on the military was the single biggest item in the budget (30%) Bastiat wanted to see it cut massively (he advocated an immediate cut of 50%). He lobbied in the Chamber but because of his failing voice he circulated his ideas by means of a printed pamphlet Peace and Freedom or the Republican Budget (February 1849). Connected to this was the idea pushed by the leading free traders in Europe, Richard Cobden in England and Bastiat in France, to reduce international tensions by cutting tariffs and putting pressure on governments to reduce the size of their military, and to create mechanisms for the arbitration of international disputes. Both Cobden and Bastiat gave important speeches at the big Friends of Peace meeting which was held in Paris in August 1849.[68] Bastiat’s was entitled “Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement” and in it he denounced conscription as a form of “military taxation” of the poor and called for “absolute non-intervention” in the affairs of other nations and for “simultaneous disarmament” of both England and France. As a result of this speech and other writings, Bastiat was likely sent on a secret government mission in October or November to London to speak with Cobden about the possibilities of a disarmament treaty between Britain and France. President Louis Napoléon’s government reshuffle in December put an end to this effort.
In spite of all the political distractions he faced, Bastiat did not neglect his more theoretical economic interests completely, although these did suffer to some degree. Because of the criticisms of socialists of the very idea of the legitimacy or profit, interest, and rent, and the near bankruptcy of the French state, Bastiat turned for the first time to monetary matters and wrote a series of pamphlets and essays such as Capital and Rent (February 1849),[69] Damn Money! (April 1849),[70] and his important and very long debate with Proudhon over the legitimacy of profit, interest, and rent, Free Credit (October 1849 - February 1850),[71] in order to address these issues.
In Capital and Rent (Feb. 1847) Bastiat defended the payment of rent against the criticism of the socialists who argued that it was unjust because it was “unearned”. He also developed in more detail his own new theory of rent. He argued that there was nothing special about rent from agricultural land, compared to other returns on capital such as profits and interest, since they were all examples of the "mutual exchange of services." Maudit argent! (Damn Money) (April 1849) is Bastiat’s most extended discussion of money. It was written to counter the growing socialist demand for government measures to solve the economic crisis which followed the February Revolution. This came in the form of two demands: for banks to issue credit at very low or zero interest rates (especially from Proudhon), and to expand the money supply in order to cover the growing government debt which was used to fund unemployment measures and other government expenditures.
Some wealthy benefactors made it possible for Bastiat to spend the summer of 1849 in the seclusion of a hunting lodge in a Paris on the outskirts of Paris so he could work full-time and without distraction on completing his economic treatise. He was thus able to get together 10 chapters for the first edition of Economic Harmonies which was published in January 1850. Many of his ideas were so new and radical, especially those on population growth, exchange as the mutual exchange of services (including rent), and his ideas on subjective value, that the book was not well received by his colleagues in the PES.
As his health continued to fail, Bastiat took a leave of absence from the Chamber and in the summer of 1850, when he had completely lost the ability to speak and was suffering excruciating pain from a lump in his throat, and travelled to Mugron and a nearby spa in order to seek some relief from his affliction and probably say goodbye to his family and friends. While in Mugron and Eaux-Bonnes he managed to finish two of his best known works, The Law (June 1850)[72] and What is Seen and What is not Seen (July 1850),[73] with the famous chapter on “The Broken Window.” The Law (June 1850) is Bastiat’s clearest statement of his view of natural law as the basis for the right to life, liberty, and property; and that individuals had the right to organise themselves in such a way as to exercise a legitimate defence of these rights, and that this was the sole legitimate function of the state. As he put it, “the law (should limit) itself ”to ensuring that all persons, freedoms, and properties were respected“ and that it should be ”merely the organization of the individual Right of legitimate defense, the obstacle, brake and punishment that opposed all forms of oppression and plunder."
Unfortunately, he believed the state kept exceeding this strict limit on its power which allowed some people to plunder the property and liberty of others. This he defined as “legal plunder” and thought it was the main cause of “the disturbiong factors” which created so many of the economic problems which plagued humanity. The pamphlet “Property and Plunder” (June 1848) is Bastiat’s most extended treatment of plunder. He had planned to write another book on “The History of Plunder” once he had finished the Economic Harmonies but did not live long enough to do so. We can get some idea of what he might have written from the fragments he has left us. There is this pamphlet, several of the anti-socialist pamphlets also deal with plunder in its various forms, as well as the first two chapters of Economic Sophisms. Series II, “The Physiology of Plunder” and “Two Moralities”.[74] Bastiat believed that human history had progressed through various stages of organised plunder, such as Slavery, Theocracy, Monopoly, and Government Exploitation, and would soon move onto Communist plunder if the socialists of 1848 could have their way.
However, Bastiat may well have left his best to the very last. His French editor Paillottet tells us that Bastiat lost the first draft of What is Seen and What is Not Seen (July 1850) when moving house, rewrote it and threw it into the fire because he was not happy with it, and then wrote it a third time, in spite of his rapidly failing health. It is a collection of 12 essays which are connected by different treatments of the same theme, namely the opportunity costs of making economic decisions, or as Bastiat phrased it the “unseen” costs. This might be one of Bastiat’s most important insights, one for which he has not had due recognition.[75] As he cleverly illustrates the principle in the opening chapter on “The Broken Window”, what the poor shopkeeper Jacques Bonhomme has to spend on replacing his broken window is money he could have spent on something else. He thus loses twice because he has lost a capital good (the window) as well as being prevented from making another purchase he might have preferred to make had his window not been broken by his hooligan son.[76] Bastiat applies this important insight to such topics as dismissing large numbers of the armed forces and its impact on garrison towns, the state funding of theaters, government subsidies to colonists going to Algeria, and so on. He concluded the book, and perhaps his life since he was to die not long after this was published, that “not to know Political Economy is to let oneself be be blinded by the immediate effect of a phenomenon; to know Political Economy is to take into consideration all the effects, both immediate and future.”
A brief discussion of his unfinished magnum opus on Social and Economic Harmonies and Disharmonies will be provided in the next section.
In this final, all too brief period of Bastiat’s life, we see him move from being an almost full-time agitator for free trade to being a revolutionary street journalist, an elected politician, an expert on Government financial affairs, an anti-socialist pamphleteer, a peace campaigner, and a very determined man who wanted to finish his last work before he died.
Endnotes-
La République française. A daily journal. Signed by the editors: F. Bastiat, Hippolyte Castille, Gustave de Molinari. It appeared from 26 February to 28 March in 30 issues. ↩
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T.186 "A Few Words about the Title of our Journal" La République française, (26 February 1848), in CW3, pp. 524–26. ↩
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T.71 “To the Electors of the Arrondissement of Saint-Sever (Mugron, July 1, 1846)”, CW1, pp. 352–67. ↩
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T.206 “Statement of Electoral Principles. To the Electors of Les Landes, 22 March, 1848,” CW1, p. 387. ↩
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T.221 “Letter on the Referendum for the President of the Republic,” 13 August 1848, CW1, pp. 395–96. ↩
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T.238 “Statement of Electoral Principles in April 1849,” CW1, pp. 390–95. ↩
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T.243 "Speech on The Repression of Industrial Unions“ (17 November 1849), CW2, pp. 348–61; T.244 ”Speech on the Tax on Wines and Spirits" (12 December 1849), CW2, pp. 328–47. ↩
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T.232 “The Consequences of the Reduction in the Salt Tax” (Jan. 1849), CW2, pp. 324–27; on state education, T.254 “Reflections on the Amendment of M. Mortimer-Ternaux” (1 April 1850), CW2, 362–65, and T.247 “Baccalaureate and Socialism” (early 1850), CW2, pp. 185–234; T.235 “Peace and Freedom or the Republican Budget” (February 1849), CW2, pp. 282–327; T.236 “Parliamentary Conflicts of Interest” (March 1849), CW2, pp. 366–400. ↩
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Jacques Bonhomme. Editor J. Lobet. Founded by Bastiat with Gustave de Molinari, Charles Coquelin, Alcide Fonteyraud, and Joseph Garnier. It appeared approximately weekly with 4 issues between 11 June to 13 July; with a break between 24 June and 9 July because of the rioting during the June Days uprising. See "Bastiat’s Revolutionary Magazines," in Appendix 6, in CW3, pp. 520–22. ↩
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T.214 "Laissez-Faire", Jacques Bonhomme, 11–15 June 1848, CW1, pp. 434–45; T.212 “The State”, Jacques Bonhomme, 11–15 juin 1848, CW2, pp. 105–6. ↩
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T.219 “To Citizens Lamartine and Ledru-Rollin”, Jacques Bonhomme, 20–23 June 1848, CW1, pp. 444–45. ↩
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This was the second time Bastiat got caught in the cross-fire during the 1848 Revolution. The first occasion was in February and then again in June. See, Letter 93 to Marie-Julienne Badbedat (Mme Marsan), 27 February 1848, [CW1, pp. 142–43]/titles/2393#lf1573–01_head_119); and Letter 104 to Julie Marsan (Mme Affre), Paris, 29 June 1848, CW1, pp. 156–57. ↩
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This was an expanded version of his article from June 1848. T.222 “The State” (25 September 1848), CW2, pp. 93–104. See also, "Bastiat's Anti-Socialist Pamphlets" in Further Aspects of Bastiat's Thought, CW4 (forthcoming). ↩
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T.208 “Property and Law,” JDE, 15 May 1848, CW2, pp. 43–59. ↩
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T.209 “Individualism and Fraternity” (June 1848), CW2, pp. 82–92. ↩
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T.220 “Property and Plunder,” Journal des débats, 24 July 1848, CW2, pp. 147–84. ↩
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T.231 “Protectionism and Communism” (January 1849), CW2, pp. 235–65. ↩
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T.257 “Plunder and Law”, Journal des Économistes, 15 May 1850, CW2, pp. 266–76. ↩
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T.239 “Damned Money!” Journal des Économistes, 15 April 1849, in CW4 (forthcoming). ↩
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Frédéric Bastiat’s Speech (T.240) on “Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement”, pp. 49–52, in Report of the Proceedings of the Second General Peace Congress, held in Paris, on the 22nd, 23rd and 24th of August, 1849. Compiled from Authentic Documents, under the Superintendence of the Peace Congress Committee. (London: Charles Gilpin, 5, Bishopsgate Street Without, 1849), pp. 49–52; in Addendum: Additional Material by Bastiat, CW3, pp. 514–20. ↩
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T.234 Capitale et rente (Paris: Guillaumin, 1849), in CW4 (forthcoming). ↩
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T.239 “Damned Money”, Journal des Économistes, 15 April 1849, in CW4 (forthcoming). ↩
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T.241 Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Free Credit. A Discussion between M. Fr. Bastiat and M. Proudhon) (Paris: Guillaumin, 1850) in CW4 (forthcoming). ↩
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T.258 La Loi, par M. F. Bastiat. Membre correspondant de l'Institut. Représentant du peuple à l'Assemblée Nationale (Paris: Guillaumin, 1850). In CW2, pp. 107–46. ↩
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T.259 Bastiat, Ce qu’on voit et ce qu’on ne voit pas, ou l’Économie politique en une leçon. Par M. F. Bastiat, Représentant du peuple à l’Assemblée nationale, Membre correspondant de l’Institut (Paris: Guillaumin, 1850), in CW3, pp. 401–52. FEE ed.](/titles/bastiat-selected-essays-on-political-economy#lf0181_label_033) ↩
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T.161 ES2.1 "Physiologie de la Spoliation" (The Physiology of Plunder) and ES2.2 "Deux morales" (Two Moral Philosophies) in CW3 (in production). FEE ed. ↩
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Anthony de Jasay believes this insight is original to Bastiat and is his main contribution to the development of economic science. Jasay wrote a two part article called “The Seen and the Unseen” which appeared on the Econlib website in December 2004 and January 2005 where he applies Bastiat’s idea and borrows the name for his own title. See https://www.econlib.org/library/Columns/y2004/Jasayunseen.html. He makes explicit reference to the greatness of Bastiat as an economist in the second article he wrote for Econlib, “Thirty-five Hours” (July 15, 2002) https://www.econlib.org/library/Columns/Jasaywork.html and credits him for inventing the idea of “opportunity cost”: “he anticipated the concept of opportunity cost and was, to my knowledge, the first economist ever to use and explain it.” See David M. Hart, "Negative Railways, Turtle Soup, talking Pencils, and House owning Dogs: "The French Connection" and the Popularization of Economics from Say to Jasay," (Sept. 2014) . A shortened version of this paper was published in the "Symposium on Anthony de Jasay" in The Independent Review, vol. 20, no. 1, Summer 2015, "Broken Windows and House-Owning Dogs: The French Connection and the Popularization of Economics from Bastiat to Jasay," pp. 61–84. ↩
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See, T.259 WSWNS 1 “The Broken Window,” in CW3, pp. 405–7; and T.128 ES3 4 “One Profit versus Two Losses” (LE, 9 May, 1847), in CW3, pp. 271–76, in which Bastiat discusses what he termed “the double incidence of loss.” ↩
Correspondence↩
Letter 91. Paris, 25 Feb. 1848. To Richard Cobden↩
SourceLetter 91. Paris, 25 Feb. 1848. To Richard Cobden (OC1, pp. 168-70) [CW1, pp. 139-41].
TextMy dear Cobden, you already know our news. Yesterday we were a monarchy and today we are a republic.201
[140]I have not the time to tell you about it, I simply want to put before you a point of view of the utmost importance.
France wants and needs peace. Her expenses are going to increase, her income to decrease, and her budget is already in deficit. She therefore needs peace and a reduction in her military undertakings.
Without this reduction no serious savings are possible, and therefore no financial reform and no abolition of odious taxes. And without these, the revolution will fall out of favor.
But France, as you will understand, cannot take the initiative of disarming. It would be absurd to ask her to do so.
You see the consequences. Because she does not disarm, she cannot reform anything; and because she does not reform anything, she will be killed by her finances.
The sole fact that foreigners are retaining their forces is obliging us to perish. But we do not wish to perish. Therefore, if foreign nations do not put us in a position to disarm by disarming themselves, if we have to keep three or four hundred thousand men in a state of readiness, we will be drawn into a war of words. This is inevitable. For in this case, the only means of being able to draw breath here would be to create embarrassment for all the kings of Europe.
If, therefore, foreigners understand our situation and its dangers, they will not hesitate to give us this proof of confidence by disarming significantly. In this way, they will put us in a position to do likewise, rebuild our finances, relieve the people, and accomplish the work which has been thrust upon us.
If, on the other hand, foreigners consider it prudent to remain armed, I do not hesitate to say that this so-called prudence is the greatest imprudence, since it will reduce us to the extremity which I have already mentioned.
Please heaven that England understands this and makes it understood. It would save the future of Europe. If she follows the traditions of old-style politics, I challenge you to tell me how we can escape the consequences.
Think carefully about this letter, dear Cobden, and weigh all its statements. See for yourself whether everything I have said to you is not inevitable.
If you remain armed, we will remain armed with no evil intentions. But because we remain armed, we will be overcome by the weight of unpopular taxes. No government could survive this. Governments can change as much as they like. Each will encounter the same problem and the day will come [141] when it will be said, “Since we cannot send the soldiers back to their homes, we will have to dispatch them to arouse the people.”
If you disarm to a significant extent and if you unite closely with us to advise Prussia to follow the same policy, under these conditions a new era may and will spring into being on 24 February.
Letter 92. Paris, 26 Feb. 1848. To Richard Cobden↩
SourceLetter 92. Paris, 26 Feb. 1848. To Richard Cobden (OC1, pp. 170-71) [CW1, pp. 141-42].
TextMy dear Cobden, I would give a great deal of money (if I had it) to have M. de Lamartine as our minister of foreign affairs for a moment. But I cannot reach him.
I wanted to go to London, but not without having seen him, since I need to submit to him the ideas I have to communicate to you.
England can do an immense amount of good without damaging herself in the slightest. She can replace France’s disastrous prejudices with a sincere affection. She has only to will this. For example, why does she not quite freely abandon her veiled opposition to our sad conquest of Algeria? Why does she not quite freely abandon the dangers arising from the right of inspection?202 Why does she allow the idea that she wishes to humiliate us to take root here? Why wait for events to poison these matters? What a magnificent spectacle it would be if England said: “When France has chosen a government, England will make haste to recognize it, and as proof of her friendship she will also recognize Algeria as French and renounce the right of inspection, of which she moreover acknowledges the ineffectualness and drawbacks!”
Tell me, my dear Cobden, what would such acts cost your country if they were freely carried out as I describe?
Over here, we cannot divest ourselves of the idea held by the French that the English covet Algeria. This is absurd, but this is how it appears.
We cannot efface from people’s minds that the right to inspect is part of your policy. This is also absurd, but this is how it appears.
In the name of peace and humanity, bring about these great measures! Let us carry out popular diplomatic policies and let us do it in good time.
[142]Write to me. Tell me frankly if a journey to London with this in mind, under the auspices of M. de Lamartine, would have any chance of bringing about a result. I will show him your letter.
Letter 93. Paris, 27 Feb. 1848. To Madame Marsan↩
SourceLetter 93. Paris, 27 Feb. 1848. To Madame Marsan (Marie-Julienne Badbedat) (JCPD) [CW1, pp. 141-42].
TextYou must be anxious. I would like to reassure you. My cold has almost disappeared and in this respect I am in my normal state, with which you are familiar. On the other hand, the revolution has left me safe and sound.
As you will see in the newspapers, on the 23rd everything seemed to be over. Paris had a festive air; everything was illuminated. A huge gathering moved along the boulevards singing. Flags were adorned with flowers and ribbons. When they reached the Hôtel des Capucines, the soldiers blocked their path and fired a round of musket fire at point-blank range into the crowd. I leave you to imagine the sight offered by a crowd of thirty thousand men, women, and children fleeing from the bullets, the shots, and those who fell.203
An instinctive feeling prevented me from fleeing as well, and when it was all over I was on the site of a massacre with five or six workmen, facing about sixty dead and dying people. The soldiers appeared stupefied. I begged the officer to have the corpses and wounded moved in order to have the latter cared for and to avoid having the former used as flags by the people when they returned, but he had lost his head.
The workers and I then began to move the unfortunate victims onto the pavement, as doors refused to open. At last, seeing the fruitlessness of our efforts, I withdrew. But the people returned and carried the corpses to the outlying districts, and a hue and cry was heard all through the night. The following morning, as though by magic, two thousand barricades made the insurrection fearsome. Fortunately, as the troop did not wish to fire on the National Guard, the day was not as bloody as might have been expected.
All is now over. The Republic has been proclaimed. You know that this is good news for me. The people will govern themselves. I am convinced that for a long time they will govern themselves badly, but they will learn from [143] experience. Right now, ideas I do not share have the upper hand. It is fashionable to expand the functions of the state considerably, and I think they should be restricted. For this reason, I am outside the movement, although several of my friends are very powerful in it. Two friends and I produced a leaflet to inject some of our ideas into the intellectual to and fro.204
Do not worry about the sequel. My age and health have extinguished in me any taste for street campaigning. As for a situation, I will not be seeking one, and will wait until I am considered useful.
I am writing you just a hasty note. I still have repose in view, since age and duties are piling up.
Julie is not giving me as good news as I would like.
Please ask her to write to me from time to time. I embrace both her and her children warmly.
Letter 94. Paris, 29 Feb. 1848. To Félix Coudroy↩
SourceLetter 94. Paris, 29 Feb. 1848. To Félix Coudroy (OC1, pp. 80-82) [CW1, pp. 143-45].
TextMy dear Félix, in spite of the shabby and ridiculous conditions you have been given, I will wholeheartedly congratulate you if you reach a settlement. We are getting old; a little peace and tranquillity in our later years is the happy condition to which we should lay claim.
Since, dear friend, I cannot give you either consolation or advice on this sad outcome, you will not be surprised if I immediately tell you about the major events which have just occurred.
The February revolution has certainly been more heroic than that of July.205 There is nothing so admirable as the courage, order, calm, and moderation of the people of Paris. But what will the results be? For the last ten years, false doctrines that were much in fashion nurtured the illusions of the working classes. They are now convinced that the state is obliged to provide bread, work, and education to all. The provisional government has made a solemn promise to do so; it will therefore be obliged to increase taxes to endeavor to keep this promise, and in spite of this it will not keep it. I have no need to tell you what kind of future lies ahead of us.
[144]There is one possible recourse, which is to combat the error itself, but this task is so unpopular that it cannot be carried out safely; I am, nevertheless, determined to devote myself to this if the country sends me to the National Assembly.
It is clear that all these promises will succeed in ruining the provinces to satisfy the population of Paris, since the government will never undertake to feed all the sharecroppers, workers, and craftsmen in the départements and, above all, in the countryside. If our country understands the situation, I say frankly that she will elect me; if not, I will carry out my duty with greater safety as a simple writer.
The scramble for office has started, and several of my friends are very powerfully placed. Some of them ought to understand that my special studies may be useful, but I do not hear them mentioned. As for me, I will set foot in the town hall only as an interested spectator; I will gaze on the greasy pole but not climb it. Poor people! How much disillusionment is in store for them! It would have been so simple and so just to ease their burden by decreasing taxes; they want to achieve this through the plentiful bounty of the state and they cannot see that the whole mechanism consists in taking away ten to give it back eight, not to mention the true freedom that will be destroyed in the operation!
I have tried to get these ideas out into the street through a short-lived journal206 which was produced in response to the situation; would you believe that the printing workers themselves discuss and disapprove of the enterprise? They call it counterrevolutionary.
How, oh how can we combat a school which has strength on its side and which promises perfect happiness to everyone?
My friend, if someone said to me, “You will have your idea accepted today but tomorrow you will die in obscurity,” I would agree to it without hesitation, but striving without good fortune and without even being listened to is a thankless task!
What is more, as order and confidence are the supreme aims at present, so we must refrain from any criticism and support the provisional government at all cost, making allowances even for its errors. This is a duty that obliges me to make an infinite number of allowances.
Farewell, the elections will take place shortly, and we will see what happens [145] then. In the meantime, let me know if you come across any attitudes favorable to me.
Letter 95. Paris, 4 March 1848. To M. Domenger, in Mugron↩
SourceLetter 95. Paris, 4 March 1848. To M. Domenger, in Mugron (OC7, pp. 385-86) [CW1, pp. 145-46].
TextYou are quite right to remain calm. Apart from the fact that we will all need it, the tempest would need to howl furiously before it was felt in Mugron. Up to now, Paris is enjoying the most perfect peace, and this spectacle is in my view just as imposing in its way as courage in battle. We have just witnessed the funeral ceremony.207 I think that the entire universe was out in the street. I have never seen so many people. I have to say that the population appeared to be friendly but cold. Nothing can bring it to utter cries of enthusiasm. This is perhaps all to the good and appears to prove that time and experience have matured us. Are not unbridled demonstrations something of an obstacle to the proper management of affairs?
The political aspect of the future is not being given much attention. It seems that universal suffrage and other rights of the people are so unanimously agreed upon that they are given no further thought. But what is darkening our prospects are economic matters. In this respect, ignorance is so profound and widespread that severe experiences are to be feared. The idea that there is a scheme yet unknown but easy to find, which is bound to ensure the well-being of all by reducing work, is the dominant theme. As it is adorned with such fine terms as fraternity, generosity, etc., no one dares attack these wild illusions. Besides, no one would know how to do so. People instinctively fear the consequences which may arise from the exaggerated hopes of the working classes, but between this and being in a position to determine the truth there is a wide gap. For my part, I continue to think that the fate of the workers depends on the speed with which capital is built up. Anything that can, directly or indirectly, damage property, undermine confidence, or weaken security is an obstacle to the accumulation of capital and has an unfavorable effect on the working classes. This is also true for all taxes and irritating governmental interference. What should we therefore [146] think of the systems in fashion today which have all these disadvantages at once? As a writer, or in another capacity, if my fellow citizens call upon me, I will defend my principles to the last. The current revolution is not changing them any more than it is changing my behavior.
Let us say no more about the statements attributed to F——. This is far behind us. Frankly this meretricious program could not be sustained. I hope that people will be satisfied with the choices made in our département. Lefranc is a courageous and honest Republican who is incapable of making life difficult for anyone without serious and just reasons.
Letter 96. Mugron, 5 Apr. 1848. To Richard Cobden↩
SourceLetter 96. Mugron, 5 Apr. 1848. To Richard Cobden (OC1, pp. 171-731) [CW1, pp. 146-47].
TextMy dear friend, here I am, all alone. Why can I not bury myself here forever and work peacefully on the economic synthesis208 I have in my head and which will never leave it! For, unless there is a change in public opinion, I am going to be sent to Paris with the responsibility of the awe-inspiring mandate of a representative of the people. If I had health and strength, I would accept this mission with enthusiasm. But what can my weak voice and my sickly and nervous constitution do in the midst of the revolutionary whirlwind? How much wiser it would have been to devote my final days to examining in silence the great problem of society and what the future holds in store for it, especially since something tells me that I would have found the answer. Poor village, the humble dwelling of my fathers, I am about to bid you an eternal farewell; I am going to leave you with the foreboding that my name and life, lost in the midst of storms, will not have even the modest usefulness for which you prepared me!
My friend, I am too far from the theater of events to tell you about them. You will learn about them before I do, and at the time I am writing to you, it may be that the facts on which I might base my reasoning are past history. If the overthrown government had left us finances in good order, I would have total faith in the future of the Republic. Unfortunately the treasury has been destroyed and I know enough about the history of our first revolution to realize the influence of financial chaos on events. An urgent measure leads to an arbitrary one, and it is above all in this situation that fate [147] exercises its power. At present, the people are behaving admirably, and you would be surprised to see how well universal suffrage is working right from the start. But what will happen when taxes, instead of decreasing, increase, when there is a shortage of jobs, and when bitter reality succeeds brilliant hopes? I had perceived a lifeline, on which it is true I scarcely placed much hope, since it presupposed wisdom and prudence in kings; this was the simultaneous disarmament of Europe. If this happened, finances would have been restructured everywhere, nations relieved and restored to order, industry would have developed, the number of jobs increased, and peoples would have waited calmly for the gradual development of administrative institutions. Monarchs, however, have preferred to stake their all or rather they were unable to assess present or future situations. They are pressing against a spring, without understanding that as their strength weakens that of the spring increases proportionately.
Imagine that they had disarmed everywhere and reduced taxes accordingly, and had, also, given to their nations institutions that are, moreover, not to be gainsaid. France, burdened with debt, would make haste to do likewise, only too happy to be able to found the Republic on the solid basis of a genuine relief of the burden on the people. Peace and progress would go hand in hand. However, the opposite has happened. People are arming everywhere, public expenditure (and taxes and hindrances) is increasing everywhere, when the taxes that exist are precisely what is causing revolutions. Will not all of this end in a terrible explosion?
What is wrong? Is justice so difficult to exercise and prudence so difficult to understand?
Since my arrival here, I have not seen an English newspaper. I do not know what is happening in your Parliament. I would have hoped that England would take the initiative in rational politics and would take it with the energetic boldness which she has shown so often in the past. I would have hoped that she would want to teach mankind how to live,209 by disarming, abandoning expensive colonies, ceasing threatening behavior, protecting herself from any possibility of being threatened, removing unpopular taxes, and presenting the world with a fine spectacle of union, strength, wisdom, justice, and security. But, alas! Political economy has not yet sufficiently pervaded the masses, even in your country.
Letter 97. Mugron, 12 Apr. 1848. To Horace Say↩
SourceLetter 97. Mugron, 12 Apr. 1848. To Horace Say (OC7, pp. 381-82) [CW1, pp. 148-49].
TextMy dear friend, I constantly look for your name in the newspapers, but they are not yet discussing the elections. They are probably too busy reporting on the political clubs. This is the only explanation I can give of the silence of the Paris press. Perhaps Paris is too stormy a theater, given your character and the life you are used to. I now regret that you have not considered moving to one of the départements. Socialist folly has whipped up such terror that because of your well-known antecedents you would have had wonderful opportunities there. Your candidature has the advantage of giving you the opportunity of putting about sane ideas. This is a great deal but not enough for our cause. For this reason, make a supreme effort, abandon your customary reserve for a few days, start something of a campaign, and leave no stone unturned to enter the Constituent Assembly. I sincerely believe that the salvation of the country depends on our principles gaining a majority.
If there is no change in public opinion here, my election is assured. I even think that I will gain all the votes except for those of a few traders in resin who are terrified of free trade.
All the committees210 in the cantons support me.
Next Sunday, we will be having a general central meeting. I would have to make a huge mess of things to change the attitudes of electors toward me.
A very strange fact is the ignorance of socialist doctrines of the people in this country. There is a horror of communism. But communism is seen only as the sharing out of land. Last Sunday, during a large public meeting, a general murmur arose when I said that communism was not a threat in this respect. People seemed to deduce from these words that I was only very tepidly opposed to this form of communism. The rest of my speech removed this impression. It is really very dangerous to speak before an audience that is so little informed. You risk not being understood. . . .
I must admit to you that I am very worried about the future. How can industry revive when it is accepted in principle that the scope for regulation [149] is unlimited? When every minute a decree on earnings, working hours, the cost of things, etc., can upset all economic decision making?
Farewell, my dear M. Say. Please remember me to Mme Say and M. Léon.
P.S. The central meeting of delegates took place yesterday; I do not know why it was brought forward. After answering questions, I withdrew and this morning learned that I have all of the votes except two. Having forgotten to post my letter before leaving, I have opened it to tell you this result which may please you. Try to make a supreme effort, my dear friend, to ensure that political economy, which is lifeless in the Collège de France,211 is represented in the Chamber by M. Say. Shame to the country, if it excludes a name of this eminence that is so nobly borne!
Letter 98. Paris, 11 May 1848. To Richard Cobden↩
SourceLetter 98. Paris, 11 May 1848. To Richard Cobden (OC1, pp. 173-74) [CW1, pp. 149-50].
TextIn the meantime, I will go straight to the subject of my letter.
You know that a workers’ commission used to meet at the Luxembourg Palace under the chairmanship of M. Louis Blanc. The presence of the National Assembly dispersed it, but it was quick to set up a commission responsible for carrying out an inquiry on the situation of industrial and agricultural workers and suggest ways of improving their lot.
This is a huge task, which the current illusions are making very hazardous.
I have been called upon to take part in this commission. I was fairly nominated, [150] after I set out my doctrines frankly, but above all from the point of view of property rights. I am having printed what I said, which succeeded in having me nominated, in an article entitled Property and Law, which will be appearing in the next issue of Le Journal des économistes. Please read it.212
I now want to use this inquiry to bring truth out into the open. Whether I am right or wrong, we need the truth. In France, we do not have much experience of the machinery known as a parliamentary inquiry. Do you know of any work which describes the art of organizing these inquiries so as to reveal the truth? If you know of one, please let me know, or better still send it to me.
Anti-British prejudices are still far from being extinguished here. People think that the English are devoting themselves on the continent to countering the republican policy of France and I would not put this past your aristocracy. For this reason, I will be following with great interest your new campaign in favor of political and economic reform, which may reduce the foreign influence of the squirearchy.213
Letter 99. abc↩
SourceLetter 99. Paris, 17 May 1848. To Madame Schwabe (OC7, pp. 421-23) [CW1, pp. 150-51].
TextYou must think me a very badly brought up Frenchman to have taken so long to thank you and your husband for the many gestures of affection you both showered on me during your stay in Paris. I certainly have not forgotten them. The memory of them will never be effaced from my heart, but you know that I made a journey to the Pyrenees I hold so dear. What is more, I did not know where to address my letters; this one will be sent in the hope it will be lucky.
The National Assembly has met. What will come out of this blazing furnace? Peace or war? Fortune or misfortune for the human race? Up to now, it has been like a child who stutters before speaking. Can you imagine a hall as big as the Place de la Concorde? In it, there are nine hundred members debating and three thousand onlookers. To have the opportunity of making yourself heard and understood, you have to utter high-pitched shouts accompanied by very emphatic hand movements, which rapidly result in an outburst of unreasonable fury in whoever is speaking. That is how we are conducting our internal proceedings. This takes up a lot of time and [151] the general public does not have the common sense to understand that this waste of time is inevitable.
You will have learned from the newspapers of the events of the 15th. The Assembly was invaded by a horde of the populace. The pretext was a demonstration in favor of Poland. For four hours, these people endeavored to wrest from us the most subversive votes. The Assembly bore this tempest calmly, and to do justice to our population and our century I have to say that we cannot complain of any personal violence. The result of this outrage has been to make known the wishes of the entire country. It enables the executive power to take prudent measures to which it cannot have recourse if there is no provocation. It is very fortunate that things were taken so far. Without this, the aims of the seditionists would never have been so clearly seen. Their hypocrisy brought them followers. They no longer have any; they have been unmasked, and once again the finger of Providence has been seen. There were ten thousand chances that things would not turn out so well.
I assume you are calling on Mrs. Cobden. Please convey to her the admiration I feel for her, following all you have said about her.
Farewell, dear lady. Can you not give me some hope of seeing you again? Your children do not know enough French and one of your daughters is a citizen of the Republic.214 She must be made to breathe the air of her fatherland.
I shake the hand of Mr. Schwabe with great affection.
Letter 100. Paris, 27 May 1848. To Richard Cobden↩
SourceLetter 100. Paris, 27 May 1848. To Richard Cobden (OC1, pp. 175-76) [CW1, pp. 151-52].
TextMy dear Cobden, thank you for having given me the opportunity of making the acquaintance of Mr. Baines.215 I regret only having had just an instant to talk to such a distinguished man.
Forgive me for having caused you the trouble of writing to me on the subject of inquiries and their format. I have abandoned our working committee for the one on finance. When all is said and done, this is where all the questions and even all the utopian ideas will end up. Unless the country renounces the use of reason, it will need to subordinate even its foreign [152] policy to financial stringency to some extent. If only we can make the policy of peace triumph! For my part, I am convinced that, after the present war, nothing is more disastrous for my country than the system inaugurated by our government, which it calls “armed diplomacy.” From whatever point of view it is considered, a system of this sort is unjust, wrong, and ruinous. I am saddened to think that just a few simple notions of political economy would be enough to make it unpopular in France. But how do we manage this when the vast majority thinks that the interests of nations and even interests in general are at root naturally antagonistic? We must wait for this prejudice to dissipate, and this will take a long time. As far as I am concerned, nothing can change my belief that my role was to be a country magistrate as in the past or, at the very most, a teacher. It should not be my fate to have been born in an age in which my place is on the stage of active politics.
What would be apparently simpler than convincing France and England to agree to disarm simultaneously? What would they have to fear? How many genuine, imminent, and pressing difficulties would they then be capable of resolving? How many taxes could be reformed! How many sufferings could be relieved! How much popular affection could be gained! How many troubles and revolutions could be averted! But we will not achieve this. The physical impossibility of collecting taxes will not suffice, in either of our countries, to have disarmament accepted, even though this is advisable as the simplest of prudent measures.
However, I have to say that I was pleasantly surprised to find the most favorable attitudes in our committee, made up of sixty members. May God enable the spirit animating it to be first diffused upon the Assembly and subsequently upon the general public. But alas! Out of fifteen committees there is one, responsible for ways and means, which has attained concepts of peace and economy. The other fourteen committees are preoccupied only with projects, all of which will lead to new expenditure; will they withstand the torrent?
I believe that at the present time you are enjoying the company of Mrs. Cobden and Mr. and Mrs. Schwabe. Please convey to them my affectionate good wishes. Since the departure of Mr. Schwabe, the Champs-Élysées seems to me to be a desert; before, I thought that they lived up to their name.216
Letter 101. Paris, 9 June 1848. To Félix Coudroy↩
SourceLetter 101. Paris, 9 June 1848. To Félix Coudroy (OC1, pp. 82-84) [CW1, pp. 153-54].
TextMy dear Félix, it has indeed been a very long time since I wrote to you; you must forgive me as I do not know which way to turn. This is how I live; I get up at six o’clock, dress, shave, have breakfast, and scan the newspapers, which takes me up to seven or half past seven. Around nine o’clock I have to leave, as the session of the finance committee217 to which I belong starts at ten. This lasts up to one o’clock and then the public session begins and lasts until seven. I return home for dinner, and it is very rare that after dinner there is not a meeting of subcommissions responsible for special matters.
The only time at my disposal is therefore between eight and nine in the morning, and this is also when visitors arrive. All of this means that not only do I have no time for my correspondence but I cannot study anything just at the time when, now that I am in contact with the practical side of matters, I realize that I have everything to learn.
For this reason, I am profoundly disgusted with this job and what is happening is not conducive to raising my spirits. The Assembly218 is certainly excellent from the point of view of its intentions; it has plenty of goodwill and wants to do good, but it cannot, first of all because it has no knowledge of the principles and secondly because there is no initiative anywhere. The executive commission is totally self-effacing; no one knows whether the members composing it agree with one another, because they emerge from their inertia only to express the most strangely incoherent of views. It is useless for the Chamber to express repeatedly its confidence in order to encourage them to act; it would appear that they have taken the decision to leave us to our own devices. Imagine what an assembly of nine hundred people responsible for debating and acting is like and add to this a huge hall in which one cannot be heard. For having wanted to say a few words today,219 I have left with a cold, which is why I am not going out and can write.
But other symptoms are much more terrifying. The dominant notion, the one that has permeated every class of society, is that the state is responsible [154] for providing a living for everyone. This has caused a general rush in which the workers have finally become involved. They are blamed, feared; and what do they do? What every class up to now has done. The workers have a better case; they say, “Give us bread in exchange for work.” Monopolists were and still are more demanding. But where will this lead us in the end? I dread to think.
Naturally the finance committee is resisting this, as its mission makes it thrifty and economical; it has therefore already become unpopular. “You are standing up for capital!” We are being killed by this word, since you ought to know that here “capital” is seen as a devouring monster.
Far from being dead, Duprat is not ill.
“The people you are killing off are in quite good health.”
In the riots of the 15th,220 I was neither struck nor threatened; I would even add that I did not feel the slightest emotion, except for the moment I thought that a public gallery was about to collapse under the feet of the seditionists. Blood would have flowed in the hall and then. . . .
Farewell, my dear Félix.
Letter 102. Paris, 24 June 1848. To Félix Coudroy↩
SourceLetter 102. Paris, 24 June 1848. To Félix Coudroy (OC1, p. 84) [CW1, pp. 154-55].
TextMy dear Félix, the journals will have told you of the frightful state of our sad capital. Cannon and rifle fire are the sounds that predominate; civil war has begun and with such ferocity that no one can foretell the outcome. While this sight distresses me as a man, you can only imagine what I am suffering as an economist; the real cause of the evil is certainly the false ideas of socialism.
You will perhaps be surprised, and many here are surprised that I have not yet set out our doctrine on the rostrum. They would doubtless forgive me if they were to cast a glance at this huge hall, in which you cannot make yourself heard. What is more, our Assembly is undisciplined; if a single word shocks a few members, even before the sentence is completed a storm breaks out. In these circumstances, you will understand my aversion to speaking. I [155] have concentrated my insignificant action on the committee of which I am a member (the finance committee), and up to now this has not been wholly unsuccessful.
I wanted to be able to give you the news of the outcome of the terrible battle that is raging around us. If the party of order wins, how far will reaction to this go? If the party of the riots wins, how far will its pretensions extend? We tremble to think. If this were some random struggle, I would not be discouraged. But the thing afflicting society is a manifest error, which will run its course to the end, since it is more or less shared by the very people who combat its exaggerated manifestations. May France never become like Turkey!
Letter 103. Paris, 27 June 1848. To Richard Cobden↩
SourceLetter 103. Paris, 27 June 1848. To Richard Cobden (OC1, pp. 176-78) [CW1, pp. 155-56].
TextMy dear Cobden, you have learned of the huge catastrophe that has just afflicted France and which is afflicting the world. I believe you will be glad to have news of me but I will not go into many details. It is really too distressing for a Frenchman, even for a cosmopolitan Frenchman, to have to describe these dreadful scenes to an Englishman.
Allow me therefore to leave the task of giving you the facts to our journals. I will just say a few words about the causes. In my opinion, they are all rooted in socialism. For a long time our rulers have prevented a knowledge of economics from being widespread as far as they could. They have gone further. Out of ignorance, they have prepared people’s minds to accept the errors of socialism and false republicanism, since this is the obvious trend in classical and university education. The nation has been infatuated with the idea that fraternity can be established by law. The state has been required to provide for the welfare of its citizens directly. But what has been the outcome? Because of the natural leanings of the human heart, each person has begun to claim a greater share of the welfare for himself from the state. This means that the state or the public treasury has been plundered. Every class has demanded from the state the means of subsistence, as of right. The efforts made by the state to provide this have led only to taxes and restrictions and an increase in deprivation, with the result that the demands of the people have become more pressing. In my view, a protectionist regime has been the first manifestation of this disorder. Owners, farmers, manufacturers, and shipowners have called upon the law to intervene to increase their share of [156] wealth. The law has been able to satisfy them only by creating distress in the other classes, especially the working classes. These therefore raised a clamor, and instead of demanding that this plundering should cease, they demanded that the law should allow them to take part in the plundering as well. It has become general and universal. It has led to the ruin of all forms of industry. The workers, who are more deprived than ever, began to think that the dogma of fraternity had not been designed for them and took up arms. You know the rest: a frightful slaughter which, for four days, desolated the capital of the civilized world and which has still not been ended.221
It seems to me, my dear Cobden, that I am alone in the National Assembly to perceive the cause of the evil and consequently its remedy. However, I am obliged to keep quiet, for what is the use of speaking if I am not understood? I therefore sometimes ask myself if I am not a crank, like so many others, submerged in my old errors; but this thought cannot be right since I know too much, I think, about the problem in all its details. Besides, I tell myself: “In the end, what I am asking for is that the very harmonious and simple laws of Providence should triumph. Or are we to take it that Providence is in error?
I now profoundly regret that I accepted the mandate entrusted to me. I am not good for anything there, whereas, as a simple political writer, I might have been useful to my country.
Letter 104. Paris, 29 June 1848. To Julie Marsan (Mme Affre)↩
SourceLetter 104. Paris, 29 June 1848. To Julie Marsan (JCPD) [CW1, pp. 156-57].
TextCables and newspapers will have told you all about the triumph of the republican order after four days of bitter struggle.
I shall not give you any detail, even about me, because a single letter would not suffice.
I shall just tell you that I have done my duty without ostentation or temerity. My only role was to enter the Faubourg Saint-Antoine after the fall [157] of the first barricade, in order to disarm the fighters. As we went on, we managed to save several insurgents whom the militia wanted to kill. One of my colleagues displayed a truly admirable energy in this situation, which he did not boast about from the rostrum.
Your own letter arrived this morning precisely at the time the government was changed. I do not know M. ——, on whom the fate of Romain222 depends, but I got together with Duprat to try to prevent the creation of the position. This is the best hope there is for the time being, subject to something better turning up.
I am happy to learn that the health of your mother is improving.223 I hope that, as the children grow, her pain will be eased somewhat, because she is more and more attached to them. As far as I am concerned, I am longing to get acquainted with little Eugénie.
Mlle Marsan has been often writing to me in the last days. Her letters give such a picture of her. She tells me for example: “Three lines every three months, this is how you are treating me!” When I wrote to you, I wrote to her as well to tell her that I was not in any danger, and I added, “I tell you this to prevent any flights of fancy on your part.” In her answer, she resorts to the word “flights” five or six times.
I am very sorry indeed about what you tell me of your financial position, my dear Julie, all the more so given that mine is not so brilliant that I could help you at this moment.
On 1 September, M. Lagelouze and Co. will remit me 650 francs that I shall put at the disposal of your mother.
Letter 105. Paris, 7 Aug. 1848. To Richard Cobden↩
SourceLetter 105. Paris, 7 Aug. 1848. To Richard Cobden (OC1, pp. 178-79) [CW1, pp. 157-59].
TextMy dear Cobden, I have left the Assembly to reply in a few lines to your letter of the 5th. I hoped to see our ministers to discuss your communication with them, but they did not come. While we are waiting for further details, this is what I know.
For 1848, we are facing a deficit that is impossible to make good through taxes. The minister of finance took the decision to solve this through a loan and to organize the budget in 1849 so as to balance the income and expenditure without having to call upon credit once again. The intention is good; what is needed is to remain faithful to it.
With this in mind, he acknowledged that ordinary income could meet expenditure in 1849 only if this was reduced by a rather significant amount. He therefore declared to all his colleagues that they set about making a reduction to be shared among all the departments. The Ministry of the Navy was targeted for thirty million of the proposed reduction and, since this department has sections that it is impossible to touch, such as expenditure on colonies, convict prisons, living expenses, salaries, etc., it follows that the reduction will bear only on the production of new armaments.
This resolution is not immutable. It does not come from a determination to reduce our military forces. However, it is certain that the government and Assembly would be strongly encouraged to continue down this road if England offered to follow us, and above all to precede us to a reasonable extent. It is to this that I shall be drawing Bastide’s attention.
Right now, rumors about Italy are circulating which are likely to foil the good intentions of the minister of finance. I very much fear that peace in Europe cannot be maintained. Please God that at least our two countries walk in step!
Farewell, my dear Cobden; I will write to you shortly.
Letter 106. Paris, 1 July 1848. To M. Schwabe↩
SourceLetter 106. Paris, 1 July 1848. To M. Schwabe (OC7, pp. 423-25) [CW1, p. 159].
TextI thank you for the affectionate interest that made you think of me on the occasion of the terrible events which have afflicted this capital city. Thank heaven the cause of order and civilization won the day. Our excellent friends MM Say and Anisson were in the country, the first in Versailles and the second [158] in Normandy. Their sons took part in the combat and came through with honor and unscathed.
It was false socialist ideas that caused our brothers to take up arms. It also has to be said that deprivation was a major contributor, but deprivation itself can be attributed to the same cause since, from the time we wished to make fraternity a legal obligation, capital no longer dares to show its face.
This is a very good time to preach the truth. During the entire time of the troubles, I have been able to consult widely with the National Guard, trying to show that each person should call upon his own forces to provide his means of existence and expect the state to provide only justice and security. I assure you that, for the first time, this doctrine was well received and a few friends gave me the means of expounding it in public, which I will be starting to do on Monday.
You will perhaps ask me why I am not fulfilling this mission within the National Assembly, whose rostrum echoes widely. This is because the hall is so huge and the audience so impatient that any demonstration is impossible.
This is very unfortunate, since I believe that there has never been in any country an assembly with better intentions, that is more democratic, a more sincere advocate of good, and more devoted. It is an honor to universal suffrage, but it has to be said that it shares the dominant preconceived ideas.
If you glance at the map of Paris, you will see that the insurrection has been graver than you appear to think. When it broke out, Paris had troops of no more than eight thousand men which, in accordance with good tactics, had to be kept together, since their number was insufficient to carry out operations. For this reason, the riot quickly overcame the suburbs and in a matter of two hours later would have overrun our street. From another direction, it was attacking the Town Hall and through the Gros-Caillou224 was threatening the National Assembly to the extent that we also were reduced to erecting barricades. However, after two days, reinforcements reached us from the provinces.
You ask me whether this insurrection will be the last. I dare to hope so. We now have a government with determination and unity. The Chamber is imbued with a spirit of order and justice, but not vengeance. Today, our greatest enemy is deprivation and the lack of work. If the government reestablishes security, business will regenerate and this will be our salvation.
[159]You should not doubt, my dear sir, the enthusiasm with which I would accept your and Mrs. Schwabe’s kind invitation, if I could. Two weeks spent with you in discussion, walks, music making, and playing with your lovely children would be true happiness for me. However, it very much appears that I will have to refuse myself this pleasure. I very much fear that our session will last a long time. You may be sure at least that, if I am able to get away, I will not fail to do so.
Letter 107. Paris, 18 Aug. 1848. To Richard Cobden↩
SourceLetter 107. Paris, 18 Aug. 1848. To Richard Cobden (OC1, pp. 179-80) [CW1, pp. 160-61].
TextMy dear Cobden, I have received your letter and the fine speech by Mr. Molesworth. If I had enough time at my disposal I would have translated it for Le Journal des économistes. But I do not have the time and, what is more, the strength. This is slipping away from me and I must admit that I am now seized with the obsession of all writers. I would like to devote the little health left to me, first of all to set out the true principles of political economy as I see them, and then to show their links with all the other moral sciences. This is still my chimera of Economic Harmonies. If this work had been completed I think that it would draw to our cause a host of fine minds whose hearts are being drawn to socialism. Unfortunately, in order for a book to survive and be read, it has to be short, clear, accurate, and as full of feeling as of ideas, all at the same time. This means that it must not contain a single word that has not been weighed. It has to be formed drop by drop like crystal, and in silence and obscurity, also like crystal. This makes me sigh greatly for my beloved Landes and Pyrenees.
It has not yet seemed the right time to make overtures to Cavaignac on the subject of your letter.225 The time seems to me badly chosen. We must wait until the situation in Italy is clearer. Nothing would be more unpopular now than a reduction of the army. All the parties would unite in condemning it, the politicians because of the state of Europe and owners and traders because of demagogic passion. The French army is a model of devotion and discipline. For the moment, it is our anchor of salvation. Its most popular leaders are in power and would not accept anything that would alienate the affection felt for it.
As for the navy, it is not likely that France will enter into negotiations on the subject of proportional reduction. England would need to go further and I very much fear that it is not prepared for this. I would at least like to know what we might hope to obtain.
The spirit of the public on this side of the Channel makes negotiations of this kind extremely difficult, especially with England alone. We must endeavor to expand it to include all the powers.
This is why I have not dared to compromise success by asking Cavaignac [161] for an ad hoc audience. I will endeavor to sound out his ideas from time to time and will let you know.
It is impossible to set oneself a nobler aim. I was pleased to see that La Presse is going down this road. I will try to get the Débats226 to join in as well. The difficulty, however, will be in involving the popular journals, although I have not lost all hope of this.
Farewell, I must leave you now.
Letter 108. Paris, 26 Aug. 1848. To Félix Coudroy↩
SourceLetter 108. Paris, 26 Aug. 1848. To Félix Coudroy (OC1, pp. 85-87) [CW1, pp. 161-63].
TextMy dear Félix, I am very sorry to see that despite my wishes our correspondence is languishing. It would be very pleasant for me to continue by letter this exchange of feelings and ideas which, for so many years, was sufficient to maintain our happiness. Besides, your letters would be just what I need. Here, in the midst of events and the tumult of passions, I can feel the clarity of principles becoming blurred because of the compromises life demands. I am now convinced that the carrying out of business excludes the possibility of producing a work that is truly scientific, and yet I do not hide from you that I still have this old elusive fancy of writing my Social Harmonies, and I cannot suppress the idea that, had I remained in your company, I would have succeeded in coming up with a useful idea for the world. For this reason, I am longing to go into retirement.
This morning, we concluded the major inquiry which weighed so heavily on the Assembly and on the country. A vote by the Chamber authorized proceedings against Louis Blanc and Caussidière for the part they played in the uprising on 15 May.227 People will perhaps be surprised in our region that this time I voted against the government. It was once my aim to explain to my electors the reason for my votes. Lack of time and strength is the only reason I would fail in this duty, but this vote is so serious that I would like to explain what determined it. The government believed that the proceedings against these two colleagues were necessary. People went so far as to say that the support of the National Guard could be counted on only on this condition. I did not feel I had the right, even for this reason, to gag the [162] voice of my conscience. You know that perhaps in the whole of France there is no more determined an opponent of the doctrines of Louis Blanc than I. I have no doubt that these doctrines will have a disastrous influence on the attitudes of the workers and, consequently, on their actions. But were we being called upon to express an opinion on doctrines? Anyone who holds a belief must consider as disastrous a doctrine that contradicts this belief. When the Catholics had the Protestants burned, it was not because Protestants were in error but because this error was deemed to be dangerous. On this principle we would all kill each other.
We therefore needed to investigate whether Louis Blanc had really been guilty of the offenses of conspiracy and insurrection. I did not think so and anyone who read his defense could not think so. In the meantime, I cannot forget the situation in which we are: a state of siege228 is in force, ordinary justice is suspended, and the press is muzzled. Could I hand over two colleagues to political opponents at a time when no rule of law was assured? This was an act with which I could not associate myself, a first step which I did not wish to take.
I do not blame Cavaignac for having temporarily suspended all forms of freedom; I believe that this sad necessity was as painful for him as it is to us and it may be justified by what justifies everything, public safety. However, does public safety require two of our colleagues to be handed over? I did not think so. Quite the contrary, I believed that such an act could only sow discord among us, inflame hatred, and deepen the abyss between the parties, not only in the Assembly but also in the whole of France. I considered that in the face of the current internal and external circumstances, when the country is suffering and needs order, confidence, governing institutions, and unity, it was an ill-chosen moment to sow the seeds of discord among the representatives of the nation. I think that we would do better to forget our grievances and causes of bitterness in order to work for the good of the country, and I considered myself fortunate that there were no detailed charges against our colleagues, since it was because of this that I was spared the duty of handing them over.
The majority thought otherwise. I hope it is not mistaken! I hope this vote is not the death knell of the Republic.
[163]If you consider it apposite, I authorize you to send an extract of this letter to the local journal.
Letter 109. Paris, 3 Sept. 1848. To M. Domenger↩
SourceLetter 109. Paris, 3 Sept. 1848. To M. Domenger (OC7, pp. 386-88) [CW1, pp. 163-64].
TextTomorrow we are starting to debate the constitution. However, whatever you say, this work will always carry within its heart an all-devouring canker, since it will be debated in an atmosphere of siege and in the absence of freedom of the press. As for us, the representatives, we feel that we are totally free, but that is not enough. The parties will exploit the abnormal nature of our situation to undermine and discredit the constitution. I therefore voted against the state of siege yesterday. I believe that Cavaignac is making the common and very natural mistake of sacrificing the future to the present. As disposed as I am to lending strength to this honest and well-intentioned government we have put in place, I cannot go beyond this. Here I am then, voting yet again with the Red Republic, but it is not my fault. People should not look at with whom one votes, but why.
I presume that a new effort will be attempted in favor of freedom of the press. I will join this; above all I want the constitution to be respected. If in Paris there are such great ferments of disorder that the rule of law cannot be maintained, I would prefer the combat to be renewed and the country to learn to defend itself.
All the rumors are of legitimist plots. I cannot believe them! The legitimists who were powerless in ’89 hope to be strong in 1848? May God prevent them from reawakening the beast of revolution! If you chance to see them, tell them clearly that they should be under no illusion. They are opposed by all the workers, all the socialists, all the republicans, and all the people, with leaders capable of prolonging events right up to the limit. Above all, the clergy should be circumspect. Men of principle who, like me, have faith in the power of truth ask only for a free debate and accept in advance the triumph of public opinion, even if (except for changing it) these men are few in number. Those who accept the struggle elsewhere, on the battlefield, are countless and determined to take things right to the end. Let the legitimists and clergy not give the signal for action; they would be overrun. Legitimists know that their principles have had their day, and as for the clergy, while they are not totally blind, they cannot ignore their vulnerable side. Let a degree of popular irritation arising from the industrial crisis and financial [164] problems not inspire dangerous and wild hopes in them, unless they want to play their trump card once and for all.
Use your influence to safeguard our beloved département from the consequences of a desperate struggle. God knows that I do not want to deprive anyone of the right to express and put across his ideas! But we should carefully avoid anything that might resemble a conspiracy.
Letter 110. Paris, 7 Sept. 1848. To Félix Coudroy↩
SourceLetter 110. Paris, 7 Sept. 1848. To Félix Coudroy (OC1, pp. 87-88) [CW1, pp. 164-65].
TextMy dear Félix, your letter did not leave me the choice of the course of action I had to take. I have just sent in my resignation as a member of the General Council; I have not resigned as a representative and you know the reason why. In the end, it was not a few people from Mugron who bestowed this title on me. When all is said and done, the people from Mugron who bestowed this title on me were not few in number.
I would like to know how many there are of those who blame me who have read the defense of Louis Blanc in the Moniteur,229 and, if they have not read it, it must be said that they are extremely presumptuous in speaking out.
It is said that I gave way to fear; fear was completely on the other side. Do these men think that less courage is needed in Paris than in the départements to confront the passions currently raging? We were threatened with the fury of the National Guard if we rejected the plan to start legal proceedings. This threat came from the sector that controls the might of the army. It was possible therefore for fear to influence the black balls but not the white ones.230 You need to be uncommonly absurd and foolish to believe that it is an act of courage to vote in favor of might, the army, the National Guard, the majority, the passions of the moment, and the government.
Have you read the inquiry? Have you read the deposition of Trélat, an ex-minister? It says, “I went to Clichy but did not see Louis Blanc and did not hear that he went there; but I recognized traces of his passage in the attitudes, gestures, facial expressions, and even the utterances of the workers.” [165] Have you ever seen such passions expressed by more dangerous trends? And three-quarters of the inquiry is in this vein!
In short, in all conscience, I believe that Louis Blanc has done a great deal of harm in conjunction with all the socialists, and there are many of these who are, without even knowing this, among those who are making an outcry against him. However, I do not think that he took part in the outrages of May and June and I have no other reasons to give as to my conduct.
Thank you for having made me aware of the state of people’s minds. I am too familiar with the human heart to blame anyone. From their point of view, those who blame me are right. May they be long preserved from this plague of socialism! I feel relieved of a great weight since I posted my letter to the prefect. The country will see that I want it to be represented as it wishes. When the by-election occurs, please ask M. Domenger urgently not to support my candidature. By accepting it, I was drawn by the desire to see my region once again; this was an entirely personal feeling and I have been punished for it. Now I want nothing more than to be rid of a mandate that is most painful.
Letter 111. Dover, 7 Oct. 1848. To M. Schwabe↩
SourceLetter 111. Dover, 7 Oct. 1848. To M. Schwabe (OC7, pp. 425-26) [CW1, pp. 165-66].
TextI do not want to leave the soil of England, my dear sir, without expressing the gratitude I feel and also without asking your pardon for all the trouble my stay with you caused. You will perhaps be surprised to see the date on this letter. While I was looking for Mr. Faulkner at Folkestone, the steamer was impolite enough to sail, leaving me on the quay, undecided as to whether I should jump on board. Twenty years ago, I would have tried. But I just watched it and, learning that another steamer was leaving this evening from Dover, I came here and do not regret the misadventure, since Dover is well worth staying an extra day in England for. This is what I would do even if I were not without all my luggage. Finally, I was able to deliver your message to Mr. Faulkner without any hurry.
. . . The two days I spent with Mr. Cobden were very pleasant. His temporary unpopularity has not changed his joyful and equitable temper. He says, and I believe he is right, that he is closer to disarmament today than he was to free trade when he founded the League. He is a great man and I recognize it for this reason: that his own interests, his reputation and [166] glory are never weighed in the balance against the interests of justice and humanity.
Letter 112. Paris, 25 Oct. 1848. To M. Schwabe↩
SourceLetter 112. Paris, 25 Oct. 1848. To M. Schwabe (OC7, pp. 426-27) [CW1, p. 166].
TextI thank you for your kind offers. One never leaves such good friends without planning to see them again. It would be too cruel not to nurture this hope. Alas, however! It is often just an illusion, as life is very short and Manchester very far away. Perhaps it will be given to me to do you the honors of my beloved Pyrenees. I often dream that your family, Cobden’s family, Say’s family, and I will all gather together in one of my cool valleys. These are plans which men would certainly carry out if they really knew how to live.
Paris continues to be calm. The boulevards are gay and sparkling, there are shows and spectacles to attract the crowds, and the French character is manifest in all its carefree lightness. This is a hundred times better than London, and if the revolutions in Germany continue231 I do not abandon the hope of seeing Paris become an asylum for those fleeing political storms. What do we lack that stops us from becoming the most fortunate of nations? A grain of common sense. I think that this is not very much.
I can see why cholera232 terrifies you, since you are surrounded by such a lovely and numerous family. The happier we are in our affections, the more we risk danger. He who is alone is vulnerable only through his least sensitive point, which is himself. Fortunately this dreadful scourge appears to be totally embarrassed by its impotence, like a tiger without teeth and claws. Because of my friends on the other side of the Channel, I rejoice to see from the journals that the most dreadful characteristic of cholera is its name and that, in fact, it causes less havoc than a head cold.
Letter 113. Paris, Nov. 1848. To Madame Cheuvreux↩
SourceLetter 113. Paris, Nov. 1848. To Madame Cheuvreux (CH, pp. 9-10) [CW1, p. 167].
TextAt the Hôtel Saint-Georges, there are three forms of health that are so involved in each other that should one decline, the others are threatened. Allow me to ask how you are. At Mugron, at nine o’clock in the morning we have news of all of our friends. You know, provincial monotony has its compensations.
If you have to hand the name of the learned pharmacist who has discovered the art of making cod-liver oil palatable, please send it to me. I would also love it if this valued alchemist could teach me the secret of producing a pared-down version of political economy; this is a remedy that our sick society is very much in need of, but it refuses to take the smallest teaspoonful, so repulsive does it find the stuff.
Letter 114. Paris, 14 Nov. 1848. To Madame Schwabe↩
SourceLetter 114. Paris, 14 Nov. 1848. To Madame Schwabe (OC7, pp. 427-28) [CW1, pp. 167-68].
TextIf my thoughts, guided by the memory of such pleasant and cordial hospitality, often turn to Crumpsall House and Manchester, they did so with still more emphasis yesterday evening, because Sonnambula233 was being played at the Italiens and I could not stop myself from disobeying the doctor’s orders and going to see this production. Each scene and each tune took me back to England, and either through emotion or the weakness of my constitution, I felt my eyes constantly brimming with tears. Who can explain the intimate nature of music! While I listened to the very touching duet and the splendid finale of the first act, it seemed to me that several months had been swept away and that, with the two performances blending into one, I was experiencing one and the same emotion. However, I must tell you, without wishing to criticize your singers, the work was infinitely better performed here, and although your first tenor was as good as ours, Madame [168] Persiani infinitely surpasses your prima donna. And also the Italian language was invented and specially made for music. When I heard Madame Persiani cry out, “Sono innocente” in the recitative, I could not help remembering the singular effect produced by the rhythmic translation of this sentence, “I am not guilty.”
What can you do? The language of business, the sea, and political economy can never be that of music.
Letter 115. Paris, 26 Nov. 1848. To Félix Coudroy↩
SourceLetter 115. Paris, 26 Nov. 1848. To Félix Coudroy (OC1, pp. 88-92) [CW1, pp. 168-70].
TextMy dear Félix, you must all have been expecting me in Mugron. My initial plan was to go there; when I agreed to join the General Council, I must admit to my shame that I was somewhat influenced by the prospect of this journey. The air of my birthplace has always had such great attraction! And I would so liked to have shaken your hand. At that time, there was one thing that was taken for granted, that the Assembly would be prorogued during the Council session. Since then, things have changed; it was considered dangerous to dissolve the only authority standing in our country and, as I shared this opinion, I had to remain at my post. It is true that I have been ill and often confined to my room, sometimes even to my bed, but at least I was in Paris, ready to do whatever circumstances required, to the extent of my strength.
This deterioration in my health, which is revealed mostly by weakness and apathy, has come at a bad time. To tell you the truth, my friend, I believe I might have been useful. I always note that our doctrines provide us with the solution to the difficulties that arise and, what is more, that when these solutions are set out simply, they are always well received. If a wider and more witty version of political economy had found an outlet in the Assembly, it would have been a real force since, no matter how often it is said, while this Assembly may lack enlightenment, there has never been one with more goodwill. Errors and the most strange and threatening theories have been advocated from the rostrum, as though to construct a counterpedestal to political economy and put its light in the shade. I was there, a witness glued to my seat, I felt within me what was needed to rally the intelligent minds and even the sincere hearts, and my wretched health condemned me to silence. What is worse, in the committees, commissions, and offices, I had to be very careful to keep my counsel in the certainty that if I had to take the [169] stage I would not have been able to play my role. This is a cruel test. For this reason, I have to renounce public life and my total ambition is now to have three or four months of peace before me to write my Economic Harmonies. They are in my head but I am very much afraid that they will never come out.
Today’s journals will tell you about yesterday’s session. It went on until midnight. It was awaited with anxiety and even unease. I hope that it will produce a good effect on public opinion.
You ask my opinion on the forthcoming elections. I cannot understand how, with identical principles, the milieu in which we live is enough to make us see things from such different points of view. What journals or information do you receive for you to say that Cavaignac is leaning toward La Montagne?234 Cavaignac was put where he is to support the Republic and he will do this conscientiously. Would people like it better if he betrayed it? At the same time as he wants the Republic, he understands the conditions under which it will survive. Let us go back to the time of the general elections. What was the almost generally held feeling? There were a certain number of true and honest republicans and also a huge multitude that until then had been divided, neither requesting nor wanting the republic but whose eyes had been opened by the February revolution. They understood that the monarchy had outlived its time and wanted to join the new order, letting it prove its worth. I dare to say that this was the dominant feeling, as the result of the election shows. The masses have chosen their representatives from the republicans of whom I have spoken, and this is why we may consider these two categories as making up the nation. However, above and below this huge body, there are two parties. The one above is known as the Red Republic and is made up of men who make exaggerated assaults when they need to flatter popular passions, while the one below is known as Reaction. This gathers together all those who aim to overthrow the Republic, set traps for it, and shackle its progress.
This was the situation in the early days of May, and to understand what came after, you should not forget that power was then held by the Red Republic, still dominated by the most extreme and violent parties.
What point have we reached through time, patience, and many perils? We have succeeded in making the power homogeneous with this huge mass, [170] which forms the nation itself. In effect, whence has Cavaignac drawn his government? Partly from the honest republicans of yesteryear and partly from the men who rallied to him sincerely. Note that he could not neglect any of these elements, nor could he ascend as far as the Montagne nor descend as far as the Reaction. This would have been to lack sincerity and a proper policy. He has taken enough open republicans for no one to doubt the Republic, and from the men of another age he chose those whose proclaimed loyalty prevented them from being considered suspect, like Vivien and Dufaure.
In this downward progression toward the exact point which coincides with public opinion and the stability of the Republic, we have offended the party of exaggerations, which conveyed to us the level of its discontent on 15 May and 23 June and we have disappointed the reactionaries, who are taking revenge through their choice. . . .
Now, if this huge multitude, which had rallied the government, breaks up and abandons the aim it set itself, forgetting the difficulties that the Assembly has encountered, I do not know any longer where we will be going. If it continues to be loyal, it must prove this by nominating Cavaignac.
The Reds, who at least have the merit of being consistent and sincere, are giving their votes to Ledru-Rollin and Raspail. . . . What ought we to do? I defer to your wisdom.
Except for the days in June when, like all my colleagues, on returning from the barricades, I went to tell the leader of the executive power what I had seen, I have never spoken to Cavaignac. I have never been in his circles, and he very probably does not know that I exist. But I listen to his words, I have observed his acts, and although I have not approved of them all, while I have often voted against him, in particular each time I considered that the exceptional measures arising from the requirements of June were being continued for too long, I am able to say, at least in my soul and conscience, that I believe Cavaignac to be honest. . . .
Letter 116. Paris, 5 Dec. 1848. To Félix Coudroy↩
SourceLetter 116. Paris, 5 Dec. 1848. To Félix Coudroy (OC1, p. 92) [CW1, pp. 170-71].
TextMy dear Félix, I am taking advantage of a reply I am sending Hiard to write you a couple of lines.
The elections are approaching. I have written a letter to the newspapers in the Landes. I do not know whether it has been published. In my own interest it would have been more prudent to keep quiet, but I considered [171] that I ought to make my views known. If I am not nominated again, I will easily be consoled.
Up to now, we have had no news of the pope.235 This is a major question that has been raised. If the pope wishes to agree to become the first among bishops, Catholicism may have a great future. Whatever Montalembert236 says, temporal power is a major problem. We are no longer in an age in which it is possible to say, “All peoples will be free and will give themselves the government they wish, except for the Romans, because this suits us.”
Letter 117. Paris, 21 Dec. 1848. To M. le Comte Arrivabene↩
SourceLetter 117. Paris, 21 Dec. 1848. To M. le Comte Arrivabene (OC7, pp. 416-18) [CW1, pp. 171-72].
TextThe doubt you have expressed is very natural. It is possible that in pushing terms a little far I have gone beyond my ideas. The words, by anticipation, inserted in the passage you quote tell you that I intend to discuss the matter in detail. In a future article, I will cover exchange and then set out what I was bold enough to call my theory of value. I ask you to be kind enough to suspend your judgment until then. You may be sure that after this I will welcome your comments gratefully as they will enable me to explain better or to correct as needed.
You will acknowledge, I hope, that what appears to divide us is not very serious. I believe that value lies in the services exchanged and not in the things. Materials and physical forces are provided free of charge in nature and move free of charge from hand to hand. However, I do not say that two items of work, considered to be equal in intensity and duration, should be equally remunerated. He who is positioned to render a service that is more precious because of the materials or forces at its disposal is better remunerated; his work is more intelligent, more fortunate if you wish, but the value is in this work and not in things. The proof of this is that the same phenomenon occurs even where there is no physical object to mislead us and appear to take on value. In this way, if I feel the desire to hear the finest voice in the [172] world and am willing to make exceptional sacrifices to do this, I would call upon Jenny Lind. As she is the only one in the world who could render me this service, she could ask whatever price she wants. Her work would be better remunerated than that of another; it would have greater value, but this value lies in the service.
I believe that this is also true where a physical object is involved, and if we give it a value, it is through pure metonymy. Let us take one of your examples. A man grinds his wheat between two stones. Later he takes advantage of his situation on a hill exposed to wind and builds a mill. I request from him the service of grinding my wheat. Many others do likewise, and, as he disposes of a great force, he is able to render a great number of similar services. He is highly remunerated. What does this prove? That his intelligence is being rewarded, that his work is fortunate, but not that the value lies in the wind. Nature never receives any remuneration; I remunerate only a man and I do so only because he has rendered me a service. I appreciate this service because it would cost me more to do it for myself or to ask it from others. The value, therefore, lies in a comparative appreciation of a variety of services exchanged.
This is so true that, if competition is involved, the miller will lower his price; the service offered in future would have less value, even though the action of the wind remains the same and retains all of its usefulness. It is I, the consumer, who will profit freely from this decrease. It is not the usefulness of the wind that has changed, it is the value of the service.
You see that basically it is a quarrel of words. What does it matter, you tell me, if the value lies in a natural force or in the service rendered to me, by means of this force, by the person who has harnessed it? The result is the same for me.
I cannot tell you here what consequences, which according to me are very important, will result from this distinction. I sincerely believe that if I manage to put across my thesis I would have crushed all the socialist, communist, and other arguments, just as I would have removed many errors that have escaped economists with regard to property, income, credit, etc. It is perhaps an illusion of authorship, but I admit that it has taken over my entire being, and I regret that I have only a few moments to devote to this study.
your devoted servant.
Letter 118. Paris, 28 Dec. 1848. To Madame Schwabe↩
SourceLetter 118. Paris, 28 Dec. 1848. To Madame Schwabe (OC7, pp. 428-29) [CW1, p. 173].
TextI acknowledge your kindness and that of Mr. Schwabe in insisting on inviting me a second time to experience the hospitality of Crumpsall House. You must know that I do not need any other persuasion than that of my heart, even though you might not be offering me the happy prospect of shaking Cobden’s hand or hearing the great artist, Jenny Lind. But Manchester is really too far away. This is perhaps not a very gallant thing for a Frenchman to say, but at my age I can at least speak from reason. Please accept at least my deep gratitude.
Has Jenny Lind developed a hatred for my dear country? According to what you say, this vile sentiment must be foreign to her heart. Oh, let her come to Paris! She would be surrounded with tributes and enthusiasm. Let her come to cast a ray of joy over this desolate town, which so delights in anything that is generous and beautiful! I am sure that Jenny Lind would make us forget our civil discord. If I dared to express my thoughts in full, I can predict the finest palm that she could collect. She might be able to arrange things so as to bring back, if not a great deal of money, at least the sweetest memories of her life. Just appearing in two concerts and choosing for herself the benefits to spread around. What pure glory and what a noble way of avenging herself, if it is true, as it is said, that she was not acknowledged there! See, my good Mrs. Schwabe, if this great singer can be won over by this appeal to her heart. I will wager my head on this success.
We are approaching a new year. I formulate the wish that it will spread joy and prosperity over you and all those who surround you.
Letter 119. Paris, Jan. 1849. To Madame Cheuvreux↩
SourceLetter 119. Paris, Jan. 1849. To Madame Cheuvreux (CH, pp. 10-11) [CW1, pp. 173-74].
TextI have just been told that tomorrow, Tuesday, at two o’clock, some very curious music will be played in the Church of Saint Louis d’Antin. It consists of thirteenth-century songs found in the archives of the Sainte Chapelle, which are imbued with all the naiveté of the time. Other people say that these songs cannot be old, since in the thirteenth century the art of writing music down was unknown.
[174]Be that as it may, the solemnity will be of great interest; this is a question that is less difficult to assess by impression than by erudition.
Yesterday evening, I again took this dreadful brew, not without a terrible struggle between my stomach and my willpower. Is it possible for something so horrible to do good, and are not medical practitioners making fun of us?
On the whole, all remedies are unpleasant.
What does my dear Mlle Louise need? A little more physical exercise and a little less mental exercise, but she does not want this. What does her mother need? To seek a little less drawing room martyrdom, but she does not want this. What am I prescribed? Cod-liver oil? Decidedly, the art of being in good health is the art of doing what you really don’t like.
Letter 120. Paris, 1 Jan. 1849. To Félix Coudroy↩
SourceLetter 120. Paris, 1 Jan. 1849. To Félix Coudroy (OC1, pp. 92-94) [CW1, pp. 174-75].
TextMy dear Félix, I want to give myself the pleasure of benefiting from the postal reform,238 since I also contributed to it. I wanted it to be radical and we have only the mere beginnings; as it stands, it will at least allow the effusions of friendship.
Since February, we have experienced difficult days, and I believe that the future has never been darker and very much fear that the election of Bonaparte will not solve the problems. At first, I was happy with the majority which raised him to the presidency. I voted for Cavaignac, because I am sure of his total loyalty and intelligence, but although voting for him I felt that power would be a heavy burden for him. He has faced up to a terrible storm, drawn inextinguishable hatred to himself, and the party of disorder will never forgive him. If it was an advantage to be a man whose republicanism was assured and who at the same time could not enter into pacts with the Reds, on the other hand this very history created major difficulties for him. For a moment, I hoped that the appearance on the scene of a new personality with no links to the parties might inaugurate a new era. . . . Be that as it may, I and all the other sincere Republicans have taken the decision of [175] supporting this product of universal suffrage. I have not seen the slightest sign of systematic opposition in the Chamber. . . .
On the other hand, though they may well later begin to fight among themselves, the supporters of fallen dynasties start by demolishing the Republic. They know full well that the Assembly is the anchor of our salvation; they are therefore striving with all their might to have it dissolved and are putting forward petitions to do this. A coup d’état is imminent. Where will it come from? What will it bring? What is worse is that the masses prefer the president to the Assembly.239
For my part, my dear Félix, I am keeping away from all these intrigues. As far as my strength permits, I am occupying my time with advocating my program. You know its general outlines. This is the practical plan: to reform the post and the taxes on salt and wine and spirits; hence, a deficit in the income budget reduced to 1.2 or 1.3 billions; require the government to adjust the expenditure budget accordingly. Declare to it that we will not allow it to spend a penny more, thus obliging it to abandon any interventions abroad and all the socialist utopian measures at home; in a word, require these two principles and obtain them out of necessity, since we have not been able to obtain them from public reason.
I am putting this project forward everywhere. I have spoken to ministers who are my friends about it, but they scarcely listened to me. I have preached it in meetings of deputies. I hope that it will prevail. The first two acts have already been accomplished; there remains the tax on wine. Credit will suffer for a while, the stock exchange is in turmoil, but we must not retreat. We are faced with a gulf which is growing ever larger; we cannot hope to close it without someone suffering. The time for compromise is past. We will lend our support to the president and all ministers but we want these three reforms, not so much for themselves, but as the sure and sole means of achieving our motto, peace and freedom.
Farewell, my friend; I send you my good wishes for the New Year.
Letter 121. Paris, 15 Jan. 1849. To M. George Wilson↩
SourceLetter 121. Paris, 15 Jan. 1849. To M. George Wilson (OC7, pp. 412-16) [CW1, pp. 176-79].
TextPlease express to your committee my warmest gratitude for the kind invitation you have sent me in its name. I would have had much pleasure in attending as, sir, I say this loudly and clearly, nothing greater has been accomplished in this world in my opinion than this reform you are preparing to celebrate. I have the most profound admiration for the men I would have met at this banquet, George Wilson, Villiers, Bright, Cobden, Thompson, and so many others who have achieved the triumph of free trade or, rather, have given this great cause its initial and decisive impetus. I do not know which I admire more, the greatness of the aim you have pursued or the morality of the means you have used. I hesitate when I compare the direct good you have done with the indirect good for which you have prepared the ground, when I seek to assess on the one hand the actual reform you have carried out and on the other the art of pursuing all the reforms within the law and peacefully, a priceless art for which you have provided both the theory and the model.
I appreciate the benefits of free trade as keenly as anyone in the world. [177] Even so, I am unable to limit the hopes that humanity should place on the triumph of your campaigning to this question alone.
You have not been able to demonstrate the right to trade without debating and consolidating the right of property at the same time. And perhaps England owes to your discourse that it is not, unlike the continent, permeated at this time with the false communist doctrines which, like protectionism, are only the negation of the right of property in a variety of forms.
You have not been able to demonstrate the right to trade without shedding a bright light on the legitimate functions of the government and the natural limits of the law. However, once these functions have been understood and these limits set, the people governed will no longer expect prosperity, well-being, and absolute good fortune but equal justice for all from their governments. Once this is so, governments will have their ordinary action circumscribed, will no longer repress individual energy, will no longer dissipate public assets as they build up, and will themselves be freed from the illusionary hopes pinned on them by their peoples. They will not be overthrown at each inevitable setback and the principal cause of violent revolution will be eliminated.
In sum, you have not been able to demonstrate the doctrine of free trade from the economic point of view without removing from people’s minds the sad and disastrous aphorism, “The good of one person is at the expense of another.” As long as this odious maxim was an article of faith around the world, there was radical incompatibility between the simultaneous prosperity of nations and peace between them. Proving that vested interests can be in harmony is thus preparing the way to universal fraternity.
I am convinced that in its more immediately practical aspects your trade reform is just the first link in a long series of reforms that will be even more valuable. For example, can it fail to extricate Great Britain from the violent, abnormal situation into which protectionism had drawn it, which is antagonistic to other peoples and consequently full of danger? The notion of monopolizing consumers had led you to pursue domination over the entire globe. Well then! I have no doubt that your colonial system is on the point of undergoing a most fortunate transformation. I do not dare forecast that you will come round to divesting yourself voluntarily of your colonies in your own interests, although I think you should, but even if you retain them, they will open up to world trade and will no longer reasonably be a source of jealousy and envy for anyone.
[178]When this happens, what will happen to this famous vicious circle of an argument, “You need a navy to have colonies and you need colonies to have a navy.” The English nation will become tired of paying alone the costs of its numerous possessions, in which it will have no more privileges than it has in the United States. You will reduce the size of your armies and fleets, as, once the danger has been removed, it would be absurd to retain the expensive precautions that this danger alone justifies. This would be a double and firm guarantee of world peace.
I will stop there; my letter would take on unseemly proportions if I wanted to list all the benefits of which free trade is the seed.
I would have liked to take an active part in promoting this great cause in my country as I am persuaded of its fruitfulness. Nowhere else are there such lively minds, nowhere else are hearts so inflamed with the love of universal justice, absolute good, and ideal perfection. France was enthusiastically in favor of greatness, morality, simplicity, and true free trade. All that was needed was to overcome a preconceived idea that was purely economic; to establish a proper commercial accounting, if one may put it that way; and to prove that trade, far from damaging the national labor force, always expands as long as it is beneficial and ceases, by its very nature and by virtue of its own law, when it starts to do harm, from which it follows that it does not need artificial, legal obstacles. It was an exceptional opportunity, in the midst of the shock of conflicting doctrines in this country, to raise the flag of freedom here. It would certainly have rallied all hopes and persuasions to it. It was at this moment that it pleased Providence, whose decrees I nevertheless applaud, to withdraw what little health and strength I had been granted. It will therefore fall to another to accomplish the work of which I dreamed, and may he come forward soon!
It is this reason of health, as well as my parliamentary duties, that obliges me to refrain from being present at the democratic and solemn occasion to which you are inviting me. I deeply regret this, as it would have been one of the highlights of my life and a precious memory for the rest of my days. Please present my apologies to the committee and allow me, in closing, to associate myself in my heart with your festivity through this toast:
[179]To free trade among peoples! To the free circulation of men, things, and ideas! To universal free trade and all its economic, political, and moral consequences!
Letter 122. Paris, 18 Jan. 1849. To M. Domenger↩
SourceLetter 122. Paris, 18 Jan. 1849. To M. Domenger (OC7, p. 388) [CW1, p. 179].
TextWe are almost all agreed here on the need to disband.241 However, a very large number (and were it not for fear of the elections, it would be all of us) would not want to bow to violent and artificial pressure. Many also fear for the very existence of the Republic. If there were only one pretender, it would be a matter of a revolution (from which God preserve us); but since there are several,242 it is a question of civil war. We have every right to hesitate.
Letter 123. Paris, Feb. 1849. To Madame Cheuvreux↩
SourceLetter 123. Paris, Feb. 1849. To Madame Cheuvreux (CH, pp. 11-12) [CW1, pp. 179-80].
TextI have just sent Faucher a reminder with regard to your protégé; he had lost touch with him, alas! How much compassion can he retain in a mind responsible for the destiny of the Republic! However, he has promised.
I did not see M. Say, Léon, or M. Cheuvreux at the Italiens yesterday; have you been ill? Was Mlle Louise tired of singing or writing letters? Or is it purely and entirely a matter of her fancy, such being the goddess, it is said, of Parisian women? Besides, the show was horribly gloomy; Alboni heavy, Ronconi out of tune, Bordogni243 useless, costumes dreadful, etc., etc.
Please would you let me know if on Sunday you would like to pay a brief visit to the Auxerrois gate and then the Sainte Chapelle? I think that Mlle [180] Louise, who loves everything that is beautiful, would like this monument. In my view it reaches the extreme point achieved by art in substituting the ethereal for the solid and daylight for stone, an art which appears to have been lost, judging from modern architecture.
Letter 124. Paris, Feb. 1849. To Madame Cheuvreux↩
SourceLetter 124. Paris, Feb. 1849. To Madame Cheuvreux (CH, pp. 12-13) [CW1, p. 180].
TextIt is with some confusion that I inform you of the result, closely resembling a fiasco, of my application to Faucher, but what do you expect, given that I am the worst petitioner in the world; it is perhaps a good thing. With regard to petitions, if I were habitually successful, who knows where I would stop, since everyone knows that I have no self-control.
M. Ramel may be granted 150 francs from the ministry of the interior. The administrative conventions require this to be given the name of assistance and not pension!
Yesterday evening’s music ran through my head all night: “Io vorrei saper perche” and other delightful songs.
Farewell, Madam; I remain your devoted servant and that of Mlle Louise.
Letter 125. Paris, 3 Feb. 1849. To M. Domenger↩
SourceLetter 125. Paris, 3 Feb. 1849. To M. Domenger (OC7, pp. 388-90) [CW1, pp. 180-81].
TextI am going to deal with the Le Peyrat farm244 and the canal. For this reason, I will postpone speaking about this to you to another time.
My bad state of health coincides with the harsh exigencies of work. Since I hold, or think I do, a general view of the world of finance, I expounded it to my office colleagues. This was successful, since they almost unanimously nominated me to the budget commission. I wanted to perform the same demonstration again before this commission but, on the pretext of saving time, it forbade a general debate. It was thus necessary to discuss the details from the outset, which prevented an overall view being achieved. What would be your opinion of such a procedure in the face of a hopeless financial [181] situation, which could be saved only by a great theory if one were to be presented? For this reason, I felt it necessary to appeal to the Assembly and the general public by means of a brochure245 on which I have been working yesterday and this morning.
I do not hide from myself that this is unlikely to succeed. Great assemblies lack initiative. Opinions are too wide ranging and nothing of worth can be achieved if the cabinet is inert. Ours is systematically inert: I sincerely believe that it is a public disaster. The current government might do some good. I have several friends in it, and I know that they are capable. Unfortunately, it came to power with the preconceived idea that it would not have the support of the Assembly and that it would have to maneuver in order to have it dismissed. I am absolutely sure that it is mistaken, and in any case was it not its duty to try? If it had come to the chamber to say, “The election on 10 December has put an end to the revolutionary period; now let us work together for the good of the people and administrative and financial reform,” the chamber would have followed it enthusiastically, as it is passionately in favor of good and needs only to be guided. Instead of that, the government started by sulking. It presumed there would be disagreement, based on the sympathy shown by the Assembly to Cavaignac. But there is one thing that the Assembly prizes a thousand times above Cavaignac and that is the will of the people, as shown by universal suffrage. To show its absolute submission, it would have given its support to the head of the executive authority. How much good would have come of this! Instead of taking this course, the government retrenched itself in inertia and teasing. It proposes either nothing or else things that are unacceptable. Its tactic is to extend the stagnation of business through inertia, in the certainty that the nation will attack the Assembly for this. The country has lost a magnificent opportunity to move forward which it will not recover, since I very much fear that other storms are lying in wait for the next Assembly.
Letter 126. Paris, no date, 1849. To M. Domenger↩
SourceLetter 126. Paris, no date, 1849. To M. Domenger (OC7, pp. 390-92) [CW1, pp. 181-83].
TextAs my unfortunate cold has prevented me from taking the rostrum, I sometimes have recourse to the pen. I enclose two brochures. One does not have a great deal of interest for the provinces. It is entitled Capital and Rent. My aim is to refute a preconceived idea, which has done much damage [182] among the workers and even among the young students at schools. This preconceived idea consists in thinking that interest from capital is theft. I therefore sought to demonstrate the intrinsic nature and raison d’être of interest. I might have made this brochure provocative, as the subject was conducive to this. However, I thought it best to refrain from this so as not to irritate those whom I wished to win over. The result has been that I have fallen into sluggishness and boredom. If ever I produce a second edition, I will rewrite it.
The other brochure is a draft budget or rather the fundamental idea that, in my view, must be at the base of the gradual reform of our financial system.246 It shows the signs of having been written rapidly. There are portions that are too long, omissions, etc. Be that as it may, the prevailing idea is sufficiently highlighted.
I did not limit myself to writing down these ideas; I explained them in various workplaces and before the budget commission, of which I am a member. What I consider to be the most basic prudence was taken to be wild temerity. What is more, as the government is determined to remain inert, it is impossible for the commission to achieve anything worthwhile. A crowded meeting of men deprived of the resources provided by the administrative authority cannot pursue a systematic plan. Projects conflict with each other. General ideas are rejected as a waste of time, and they end up just dealing with details. Our budget for 1849 will be a fiasco. I believe that history will blame this on the Cabinet.
The elections are coming closer; I do not know what the Assembly will decide with regard to the notice period. Will I be able to come to see you? I would like to do so for various reasons: first of all, in order to breathe the air of my region and shake my friends’ hands; second, to combat a few false notions which may have arisen concerning my actions in parliament; and lastly, to inform the electors of my views on the spirit in which they should make their choices. In my opinion, they could not do better than to remain faithful to the spirit which prevailed over them in April 1848. They do not think they produced a good Assembly. I maintain the opposite. It was slightly changed by the partial elections, which sent us both several revolutionaries and a large number of plotters. God preserve my country from having recourse in this way to the extreme wings of both parties! A [183] violent clash would ensue. Doubtless, the country can nominate people only in accordance with its impressions and opinions of the moment. If it is reactionary, it will nominate reactionaries. But let it at least select new men. If it sends long-standing deputies with hearts full of bitterness and well versed in parliamentary intrigue, who are determined to overthrow everything, create traps for new institutions, and bring out as rapidly as possible all the faults that may sully our constitution, all will be lost! We already have the proof of this. Our constitution puts two equal powers into confrontation with each other without the means of settling any possible conflict. This is a great failing. And what has been the result? Instead of at least waiting for this failing to be revealed and for conflict to arise in due course, the government made haste to generate it needlessly. This is the thinking of a man in a hurry to derive criticism of our institutions from whatever happens. And why has this man acted in this way? Did he need to? No. But he is one of those who were deeply thwarted by the revolution and, without realizing it, he is taking pleasure in exacting his revenge at the expense of the country.
As for my personal fate, I do not know what this will be. The country might reproach me for not having done much! In effect, my health has been an invincible obstacle. It has paralyzed my physical and mental strength. I have thus disappointed my friends’ expectations. But is this my fault? Whatever happens, if my mandate is withdrawn, I will resume with no bitterness the solitary habits that are so dear to me.
Letter 127. Paris, no date 1849. To M. Domenger↩
SourceLetter 127. Paris, no date, 1849. To M. Domenger (OC7, pp. 392-94) [CW1, pp. 183-85].
TextYour letter has reached me attached to that from M. Dup——.247 The minister of trade had initially made me promises. Later, I learned that Dup—— had insisted with all his customary tenaciousness. Yesterday evening, I went to Buffet’s house, taking Turpin with me. As he had been present at the General Council, he could testify as to what had happened and he did so in very formal terms. We met Dampierre there and he helped us. [184] In spite of all this, I saw that the minister was uneasy; Duv——’s obsessions must have frightened him. He told us, “If I refuse Duv—— his farm, it will cause his death.”
I had already written Buffet a closely reasoned letter and will write another, which I will end as follows: France wants administrative decentralization. If the minister believes he can overlook the wishes of all the regular mouthpieces of the département and act as he wishes, when it is a matter of determining where a farm will be set up, he may as well eliminate the institution of the general councils, as they will then just be a mirage.
I ask you, my dear D., to apologize on my behalf to M. Dup—— for not replying to him today. I will do so when I have further information. You see how the law regarding political associations248 arouses Paris. The minister was very reckless to raise this matter. However, his unfortunate tactic is to disregard the Assembly, and I believe that he wished to have the law rejected in order to attribute full responsibility for the future to it.
No vote has ever cost me so dear as the one I cast yesterday. You know that I have always been in favor of freedom except for the repression of crime. I must admit that in the face of the political clubs this principle appears to have to give way. When I contemplate the fear they inspire in peace-loving people, the memories they resurrect, etc., etc., I tell myself that those who sincerely love the Republic must understand that they have to make it loved. It will be compromised if there is an intention to impose by force on the country an institution or even a liberty which appalls it. I therefore voted for the elimination of the clubs.
When I did this, I did not hide the disadvantages of this action. To succeed in politics, you have to join a party and, if possible, the strongest party. Voting according to your conscience with the right and the left according to the circumstances is to risk being abandoned by both. But before reaching this point, I had taken the decision only to consult my judgment and conscience and not vote according to party lines. This influenced the proposal I put forward. Systematic majorities and minorities are the death of representative government.
I believe that our government will make a considerable effort to avoid war. In previous times we might have feared that it would be carried along [185] by popular feelings in support of Italy, but things have changed a great deal. The disturbances in the peninsula have reduced this support. Charles Albert249 will probably be defeated before we have the time to debate the opportunity of what should be done. But once the Austrians have reached Turin, all will not be lost, far from it. I am not even sure that it is only then that serious problems will begin. Oh, how difficult is it for men to get along together, when it might be so easy!
Letter 128. Paris, March 1849. To Madame Cheuvreux↩
SourceLetter 128. Paris, March 1849. To Madame Cheuvreux (CH, pp. 13-15) [CW1, pp. 185-86].
TextI am quite positive that I have left something very precious at your house, something which men of my age should no longer leave behind, something which we should always feel when our hand strays to the left side of our chest, something whose loss reduces us to being scatterbrained or blind, in a word, my glasses.
If by any chance they have been found in your drawing room, please hand them to my messenger.
I am taking advantage of this opportunity to ask after the health of your Louisette, since this is the name you like to call her; I would be happy to learn that we will be able to hear her sweet voice tomorrow; admit that you are very proud of it.
Oh! You have good reason to be. I dare not repeat it too often, but I prefer a romantic song sung by her to an entire concert highlighted by musical trills and tours de force. After all, is it not good practice to judge things and especially the arts by the impression they give us? When your daughter sings, every heart pays attention and everyone’s breath is held, from which I conclude that it is true music.
I am intrepidly protecting my health. I value it highly, being weak enough to believe that it still has some use.
Yesterday I went to see Mme de Planat. Through a few Germanic mists her mind shows traces of a deep source of common sense and original judgment, with just enough erudition for it not to be too much and perfect impartiality; [186] our unfortunate civil disturbances do not trouble the sureness of her opinions. She is a woman who thinks for herself and I would like you to meet her. However, she made me talk too much.
I have not visited Victor Hugo because I thought he lived in the Marais;250 if I had known he lived in your district, then since the slope down to this area of Paris is easy, I would have made my entrance to his salon, which must be worth a visit.
Farewell. I shake the hands affectionately of those you call the Trio whom I love dearly.
Letter 129. Paris, 11 March 1849. To Madame Schwabe↩
SourceLetter 129. Paris, 11 March 1849. To Madame Schwabe (OC7, pp. 429-30) [CW1, pp. 186-87].
TextI have been horribly negligent and horrible is the right word, since it is close to ingratitude. How can I excuse it after all the kindnesses with which I have been showered at Crumpsall House?
What is certain is that my activities exceed my strength. Perhaps I will be relieved of them soon. According to the opinions I am receiving from my region, I will not be returned. I was sent to uphold the Republic. I am now being reproached for being faithful to my mission. This will wound my feelings, as I have not deserved to be abandoned, and what is more we ought to weep for a country that discourages even honest action. What consoles me, however, is that I will be able to renew the ties of friendship and my work in solitude that is so dear to me.
It is with surprise and satisfaction that I learn of your forthcoming visit to Paris. I do not need to tell you with what pleasure I will shake your hand and that of Mr. Schwabe. My only fear is that this date coincides with that of our elections. If this is so, I will be two hundred leagues away, at least if I decide to subject myself to the risk of election. I have not yet made up my mind on this.
As you can well imagine, I am following the efforts of our friend Mr. Cobden with the keenest interest. I am even echoing it here. Yesterday, we obtained from our budget commission a reduction of two hundred thousand men in our armed forces. It is not very likely that the Assembly and the [187] government will accept such a radical change, but is this achievement with a commission nominated by the Assembly itself not a good sign?
. . . Farewell, madam, I am determined to write to you more regularly in the future. Today, I am busy with an important debate251 which I have raised in the Assembly and which obliges me to carry out some research.
Letter 130. Paris, 15 March 1849. To Félix Coudroy↩
SourceLetter 130. Paris, 15 March 1849. To Félix Coudroy (OC1, pp. 94-97) [CW1, pp. 187-89].
TextMy dear Félix, your letters are really very infrequent, but they give me the pleasant feeling you experience when you see the steeple of your village church after a long absence.
It is a thankless task being a patriot and wanting to remain one of some consequence. Through some unknown optical illusion, the changes that occur around you are attributed to you. I have carried out my mandate in the spirit in which I received it; my country has the right to change and consequently to change its representatives, but it does not have the right to say that it is I who have changed.
You will have read in the newspapers that I proposed my motion. Let representatives remain representatives, I said, since if the law makes other prospects more appealing in their eyes, the mandate instantly becomes vitiated and exploited and, because it is the very essence of representative government, this entire system is undermined at its source and in its fundamental principles.
It was an extraordinary thing! When I mounted the rostrum I did not have ten supporters, and when I left it I had the majority. It is certainly not my powers of oratory that caused this phenomenon, but the power of common sense. The ministers and all those who aspired to become ministers were in ecstasy. They were just about to vote when the commission, with M. Billault at its head, evoked the amendment. It was sent back as of right to this commission. On Sunday and Monday there was a reaction in public opinion, which besides had had very little preparation, with the result that on Tuesday everyone said, “Let representatives remain representatives! But this is a frightful danger, it is worse than the Terror!” All the journals had cut, distorted, and deleted my words and put absurd notions into my mouth. [188] All the meetings in the rue de Poitiers,252 etc., had emitted a cry of alarm; in a word all the usual means were employed.
In short, I was left with a minority made up of a few enthusiasts who no more understood me than the others, but one thing that is certain is that the impression was vivid and will be remembered for some time. More than one hundred members have told me that they were in favor of my proposal but voted against it for fear of making a mistake with such an important innovation on which they had not reflected sufficiently.
You know me well enough to think that I would not have liked to succeed through surprise. Later on, public opinion would have attributed all the calamities time would have brought on us to my amendment.
From a personal point of view, what is sad is the charlatanism that dominates newspapers.253 There is a bias in favor of exalting certain men and deprecating others. What are we to do? It would be easy for me too to have a great number of friends in the press, but to do this I would need to make an effort, which I refuse, since the resulting chains would be too heavy.
As for the elections, I do not know whether I will be able to be present; I will go only when the Assembly has been dissolved. As a member of the budget commission, I have to remain at my post; let the country punish me if it wishes, I will have done my duty. I have one thing only I can reproach myself for, and that is not to have worked enough, and my excuse for this is my very poor health and the inability of my poor lungs to compete with the storms in parliament. Because I could not speak out, I took the course of writing. There is not a single question of burning importance which has not produced a pamphlet from me. It is true that I discussed the practical aspect less than the principles; in doing this I was obeying the character of my mind, which is to go back to the source of error, each person making himself useful in his own way. In the midst of all the heated emotions unleashed, I could not influence the effects, I just pointed out the causes. Have I really remained inactive?
In opposition to the doctrine of Louis Blanc, I wrote Individualism and [189] Fraternity.254 When property was attacked, I wrote Property and Law. Income from land came under fire, so I wrote the five articles in the Débats.255 The practical source of communism was revealed, so I wrote the pamphlet Protectionism and Communism. Proudhon and his followers preached free credit, a doctrine which spread like wildfire, so I wrote Capital and Rent. It was clear that a balanced budget would be sought through additional taxes, so I wrote Peace and Freedom.256 We were faced with a law that encouraged parliamentary coalitions, so I wrote a pamphlet on conflicts of interest.257 We were threatened with paper money, so I wrote the pamphlet Damned Money. All these pamphlets were distributed free of charge and in great numbers, which cost me a great deal; from this point of view the electors have nothing to reproach me for. From the point of view of action, I did not betray their trust either. On 15 May and during the days of June I played my part in the troubles. After this, let their verdict condemn me; I will perhaps feel it in my heart but not in my conscience.
Letter 131. Paris, 25 March 1849. To M. Domenger↩
SourceLetter 131. Paris, 25 March 1849. To M. Domenger (OC7, pp. 394-96) [CW1, pp. 189-91].
TextThe last time I wrote to you I did so in haste, and I believe I forgot to speak to you about the elections. The time is coming closer, and since you are determined to put me on your list, I would be grateful if you would inform me regularly of what is being said and done. I am certain that there is a great deal of prejudice in the region against me and that these sentiments are sustained and perhaps inflamed by candidates or someone in their midst. I am aware that discussions with my proposers would be useful, but I cannot leave the National Assembly before it is dissolved. For this reason, I will shortly be sending a report.
[190]I am sure that I will have little support from the district258 that would be most necessary to me, that is, Saint-Sever. If a bargain is struck among the three districts and each puts forward two candidates, I will probably not be on the Saint-Sever list, and while the two other districts would regret this somewhat, these regrets would not go so far as to break the agreement. I will therefore be, as they say, among three stools, etc.
As I am convinced that I have done my duty, this failure will be hurtful initially. I hope that I will be rapidly consoled. I do not lack other work to do outside the legislature.
But, from the political point of view, I would consider it a great misfortune if the elections produced a result that differed significantly from that of 1848. If you assess it with impartiality you would acknowledge that the Assembly has carried out its mission, overcome the greatest physical and moral difficulties, and finally restored order to events and peace to people’s minds, and that the most dangerous utopian ideas have been brought down before it, even though at the outset it was strongly imbued with illusionary hopes. This Assembly is on the right track. It would have accomplished for finance, if it had had the time, everything it was possible to do. Is it the right time to turn it out and replace it with different men imbued with a different spirit and with hearts full of bitterness? I can tell you that the government is very anxious about the future in this respect. Will we never cease to embark on adventures? I therefore think that, if there were anything better to do, it would be to continue in the electoral spirit of 1848, except for the removal of a few men, on the right and the left, who have shown a disruptive spirit of unruliness.
In our département, this reproach can scarcely be made to our representatives. Only one of them, probably in good faith, has produced a dangerous proposal, that of progressive taxation and the taking over by the state of several private industries. Keeping the Republic honest has been the motto of the job of a deputy. The question should thus be asked: are we going to send back the same representatives or will we make new choices with new purposes in view?
Experience has proved to me that the struggle between the districts will be a very small affair if it breaks out. I can assure you that the district of Saint-Sever is the one that gives me the least work. I do not remember having [191] received a single letter from the chief towns: Hagetmau, Amou, Geaune, or Aire. Even Mugron has sent me only three on matters that are not incompatible with the mandate of a deputy; Dax and Le Saint Esprit have sent me more. In all, I am edified to see just how far the spirit of lobbying has died out.
Letter 132. Paris, 8 Apr. 1849. To M. Domenger↩
SourceLetter 132. Paris, 8 Apr. 1849. To M. Domenger (OC7, pp. 396-99) [CW1, pp. 191-93].
TextYour letters are always precious to me and it is a consolation to me to think that impartial and enlightened friends are not being influenced by the prejudices against me.
I have in fact spoken again to Buffet.259 I put the argument most likely to produce an effect to him. I said, “If, when it is a question of pure locality to ascertain where a model farm may render the most service, the unanimous wishes of thirty general councillors are set aside, do not talk to us any further of decentralization.” He replied, “I have made up my mind to give way to the wishes of the region in questions like these.” In spite of this he has not taken a firm decision; he fears our tenacious and obstinate opponents. I have been assured that he is spreading invective against me. He is a very singular type of liberal.
I have received a letter from M. Dup——. He is asking me to send a note to the minister. I have already sent him a memorandum. You can be sure that we will neglect nothing in ensuring the triumph of the general council’s note.
My friend, I would like to speak to you about the elections and politics. But in truth, there is so much to say that I do not dare start. The need for order, security, and confidence is dominant in the country. This is only natural. However, I am convinced that this is misleading the people with regard to the relationship between the government and the Assembly at the moment. I would very much like to go around the département to put right disastrous misunderstandings. The Assembly should be dissolved and thus allow the representatives to go out to explain themselves, not in their own interest but in the interest of the future. It is very important that the elections are not held under the influence of false preoccupations.
The current ministers are honest, well intentioned, and determined to [192] maintain order. They are my personal friends and I believe that they understand the meaning of true liberty. Unfortunately, they came into power with the preconceived idea that the Assembly, which came out in support of Cavaignac, would of necessity be opposed to Bonaparte. In my soul and conscience this was a mistaken assessment, and it has had the most disastrous consequences. The ministers thought of nothing other than dismissing the Assembly and, with this in view, discrediting it. They pretend to take no note of its votes, even when it demands the execution of laws. They refrain from any initiatives. They give us free rein. They are present at debates like strangers in the gallery. Since they feel that they are supported by the wind of public opinion they generate strife because they think that it will be advantageous to them in the eyes of the country. They thus accustom the country to having a low opinion of the principal power of any representative government. They go even further: they put forward unacceptable laws in order to provoke their rejection. This is what happened with regard to the clubs. You will say that my vote on this law will go some way to reconciling me with the electors. Well then! I have to tell you that this vote is the only one I have on my conscience, as it is contrary to all my principles, and if I had had a few minutes in which to reflect calmly I would certainly not have given it. What determined me to do this was this. I said to my neighbors, “If we want the Republic to remain in place, we must make it loved, not make it feared. The country is in fear of the clubs, it hates them, let us sacrifice them.” The results of the law have proved that it would have been better to stick to our principles, provide all the possible means of control, but not eliminate freedom. This law has done nothing other than organize secret societies.
Since then, I have voted three times and always to my regret against the government. I will be reproached for this in the region, but nevertheless these votes were conscientious.
- 1. The Italian question. Like La Montagne, I rejected the agenda which pressed for an invasion of the Piedmont,260 but for the opposite reason. La Montagne did not find this agenda sufficiently warlike; I found it too much so. You know that I am [193]against intervention and this explains my vote. Besides, I do not approve of the diplomacy carried out in parliament. Foolhardy undertakings are entered into which subsequently prove to be an embarrassment. I preferred the pure and simple agenda for which I voted.
- 2. The question of the prefects.261 If the government had made a frank admission, I would have overlooked it. However, it wished to claim that forty prefects became ill on the same day. Subtleties like this disgust common sense.
- 3. The Changarnier affair.262 The same reason. If the government had demanded that a state of affairs contrary to the law should be prolonged, on the premise of the requirements of order, we might have agreed. However, it came to us to say, “We are asking for something arbitrary and the National Assembly is no judge of the length of time this arbitrary state should last!” The greatest despot in the world could not ask for anything different. I could not agree to this.
As for the elections, they will be what the good Lord wants them to be. If I have to fall, I have taken steps in advance and I have much work to do outside parliament. I have a work in my head and fear that I will not be able to deliver it. If the electors give me some leisure, I will console myself by working on this book, which is my chimera. My only wish is that they do not replace me in too unworthy a manner. There are some who, if put in my place, would not bring honor to the département.
Letter 133. Paris, 25 Apr. 1849. To Félix Coudroy↩
SourceLetter 133. Paris, 25 Apr. 1849. To Félix Coudroy (OC1, pp. 97-99) [CW1, pp. 193-95].
TextMy dear Félix, the elections may well be approaching, but I am not receiving any direct news of them. A nice, affectionate letter from Domenger is the sum of my pittance. I may presume that I am the only representative in this situation, and this gives me a premonition of my fate. Besides this, I have received a few bits of indirect information through Dampierre. He has left [194] me in no doubt that the region has formed a movement, which implies that the confidence it placed in me has been withdrawn. I am neither surprised nor upset by this, as far as I am concerned. We are in an age in which you have to fling yourself into one of the extremist parties if you wish to succeed. Whoever casts a cool eye on the exaggerations of the parties and combats them remains abandoned and crushed in the center. I am afraid that we are moving toward a social war, a war of the poor against the rich, which may be the dominant event of the end of this century. The poor are ignorant, violent, and riddled with illusionary and absurd ideas, and the movement which is carrying them along is unfortunately justified to a certain extent by genuine claims, since indirect taxes are a reverse form of progressive taxation for them. As this is so, I could have only one plan, to combat the errors of the people and anticipate well-founded complaints, in order never to leave justice on their side. This has given rise to the eight or nine pamphlets I have written and my votes for all the financial reforms.
However, it has happened that, taking advantage of the need for security, which is the salient characteristic of public opinion, the rich are exploiting this need to the benefit of their own injustice. They remain cold and selfish, and they weaken any effort made to save them, their sole dream being the restoration of the small number of abuses brought down by the Revolution.
In this situation a clash appears inevitable to me, and it will be terrible. The rich are counting a great deal on the army, but experience of the past should make them rather less confident in this regard.
As for me, I ought to have been out of favor with both parties for the very reason that I was more concerned with combating their errors than enrolling myself under their banner; I and all the other men of scientific good will, that is to say, that which is based on justice as explained by science, will remain on the sidelines. The new Chamber, which ought to have been the same as the present one without the extremes, will on the contrary be made up of the two extreme camps, and intermediate prudence will be banished from it.263 If this does happen, there is just one thing left for me to say: may God protect France! My friend, by remaining in obscurity, I would have reasons with which to console myself if at least my somber predictions fail to materialize. I have my theory to write down and I am receiving powerful encouragement just at the right time. Yesterday I read these words in an English review: in [195] political economy, the French school has gone through three phases encapsulated by the following three names, Quesnay, Say, and Bastiat.264
Of course, it is premature for me to be assigned this rank and role, but it is clear that I have a new, fertile idea that I believe to be true. This idea is one that I have never developed methodically. It has come through almost accidentally in a few of my articles, and since this has been enough to catch the attention of learned men, since it has already been given the honor of being considered as a milestone in science, I am now certain that when I produce the complete theory it will at least be examined. Is this not all I could wish for? With what ardor will I use my retirement to set out this doctrine, in the certainty that it will be scrutinized by judges who understand and who are waiting for it!
On the other hand, professors of political economy are trying to teach my Theory of Value265 but are no more than feeling their way. It has made an impression in the United States, and yesterday in the Assembly a delegation of Americans presented me with a translation of my works.266 The preface shows that they are waiting for the fundamental idea which up to now has rather been outlined than formulated. This situation is also true for Germany and Italy. It is true that all this is happening in the closed circle of professors, but it is through them that ideas make their entrance into the wider world.
I am therefore ready to accept with resolution the naturally very hard life that will be allocated to me. What gives me courage is not Horace’s “non omnis moriar,”267 but the thought that perhaps my life will not have been pointless for the human race.
Right now, where will I base myself in order to carry out my task, in Paris or in Mugron? I have not yet taken any decision but I feel that in your company the work would be better formulated. Having just one concept and subjecting it to an enlightened friend is certainly the best recipe for success.
Letter 134. Paris, 29 Apr. 1849. To M. Domenger↩
SourceLetter 134. Paris, 29 Apr. 1849. To M. Domenger (OC7, pp. 399-401) [CW1, pp. 196-97].
TextI have been very dilatory in replying to your letter of the 14th, but what could I do? Nature has riddled me with the oddest afflictions and I appear to become increasingly inert just when I need to be most active. So, since the question of elections has arisen, I have become absorbed and fascinated by a purely theoretical work, which takes up all my waking hours.
The very rare items of news reaching me give me no doubt as to the result of the vote concerning me; I have lost the confidence of the region. Let me explain; my mistake, and this is only a personal point of view, has been to perceive the two conflicting exaggerations and associate myself with neither. My friend, they are leading us toward civil war, a war of the poor against the rich. The poor demand more than is just; the rich do not want to grant even what is just. This is the danger. Taxes that increase with wealth have been rejected, and this is right, but taxes that increase with deprivation have been maintained, and this has provided good arguments to the people. No one knows better than I how many absurd claims they are making, but I also know that they have well-founded complaints. Therefore simple prudence, in the absence of equity, traced out the line of conduct for me to follow: resist the illusionary demands of the people and acknowledge their legitimate claims. But alas! The notion of justice has been distorted in the minds of the poor and the sentiment of justice has been extinguished in the hearts of the rich. I have therefore had to alienate myself from both classes. All that is left to me is to be resigned to my fate.
I hope that I am a false prophet! Before February, I said: “Increasing resistance in the government and an increasingly active movement in the opposition could result only in a wrenching division. Let us seek out the point at which justice occurs as this will save us.” I was not mistaken. Both parties persisted in their ways and the result was a revolution.
Today, I say: The poor are demanding too much and the rich not granting enough; let us seek justice; this is where conciliation and security reside. But the parties persist, and we will have social war.
This will occur, I fear, in unfortunate conditions, as the more we refuse what is just to the populace the greater moral and material strength we give to its cause. This is why it is making terrifying progress. This progress is veiled by a transitory reaction, one determined by the general need for security, but it is genuine. The explosion will be delayed, but it will occur.
[197]I had reached this point in my letter when I received one from our friends in Mugron. I left my letter to you to reply to them and naturally I repeated what I said above, since I can say only what is filling my heart. They are pressing me to return to the region, but what would I do there? Are people ready to organize major meetings? Without this, how could I make contact with such a large number of electors?
I received your letter of the 27th on the 30th. I will be going later to the Assembly and will see whether I can obtain leave of absence without any problem. I am very disinclined to do this just at the time when the budget for war will be debated and I will perhaps be called upon to defend it.
Everyone wants economy in general. But everyone resists each individual economy in particular.
Letter 135. Paris, 3 May 1849. To Madame Cheuvreux↩
SourceLetter 135. Paris, 3 May 1849. To Madame Cheuvreux (CH, pp. 16-18) [CW1, pp. 197-98].
TextPlease allow me to send you a copy of my letter to the electors. This is certainly not to have your political opinion on it, but these documents are above all a matter of tact and delicacy. You have to talk about yourself a lot in them and how do you avoid either false modesty or outrageous vanity? How do you show yourself to be sensitive to ingratitude without falling into the ridiculous category of being misunderstood? It is very difficult to reconcile dignity with the truth. I think that a woman is above all suitable for pointing out any faults of this nature, provided that she is frank enough to say so. It is for this reason that I am sending you this piece of homework in the hope that you will be willing to read it and help me to avoid improprieties if they occur. I have learned that you are starting your salons again this evening. If I can escape from a meeting in which I will be kept a little late, I will come to receive your advice. Is this not a strange mission I am giving you and an opportunity to say with Faucher that “You really have to come from the wide Landes to be gallant in this style.”
Have you had the patience to read last night’s session?268 What a sad conflict! In my opinion, an act of more than doubtful morality would have [198] become excusable by a simple admission, especially as the responsibility for it lay with Faucher’s predecessors. It is the system of defense that is pitiful. And then the representatives who hope to become ministers came to inflame and exploit the fault. Ah, madam! Am I condemned to go from one setback to another? Will it be necessary for me, who left the region as a believer, to return to it as a skeptic? It is not my faith in humanity that I fear to lose, that is unshakeable, but I need also to believe in a few of my contemporaries, in the people I see and who surround me. Faith as a general principle is not enough for me.
Here is a pamphlet on Biarritz; I am sure that when you read it you will say, “That is where we ought to go269 to give my beloved Louise a strong constitution.”
The author of this pamphlet wanted me to hand it over to one of my friends in a position close to the president of the Republic (always this Proteus of lobbying); I could not carry out this commission because of the word Prince, clumsily deleted in front of the name Joinville; this author,270 a doctor, had also asked me to write a preface in the form of an apology. “But I do not know anything about medicine,” I said to him. “Well then, hide your science behind your feelings.” I then set about it. This introduction has no other merit than a certain sobriety of description, which is not very fashionable. As I am very fond of Biarritz, I am trying to do some advertising for it.
What a long letter this is! I will be outdoing M. Blondel.
Your devoted servant,
Letter 136. Paris, no date, 1849. To M. Domenger↩
SourceLetter 136. Paris, no date, 1849. To M. Domenger (OC7, pp. 401-3) [CW1, pp. 198-200].
TextMy election,272 which I learned of two days ago, will make me busier after it than before, for while I was able to neglect it a little, I must not at least forget to express my total gratitude to my friends, not for the service they [199] have rendered me, but for the devotion and confidence that they have demonstrated. You are in the front rank of these and I am most touched by the zeal you devoted to this, especially as it must have cost you a great deal. I know that you dislike electioneering and that for a long time you wished to take only a purely personal part in it. On the other hand, you must have put yourself into conflict with very many of your friends. I want you to know that these circumstances taken together have made me appreciate your devotion all the more.
What will be the fate of the new Assembly? People are pinning high hopes on it. God willing, these will not be pure illusions. It will certainly not be better intentioned than the one that has just passed on. But what do intentions achieve? Like La Presse, I think that the best assembly is good only for preventing evil. To do good, you need the initiative of a more concentrated power; we have had the proof of this for the last five months. The government has limited its role to arousing and sustaining a conflict, and the Chamber, with all its good intentions, was unable to do anything about this.
What makes the future fearful is ignorance. The poor classes are becoming regimented and are marching as one man to a senseless war, without the slightest premonition that they are committing suicide, since after they have destroyed capital and the very motive that builds it up, what will be their fate?
Fundamentally, the matter of taxation alone should stand between the two classes. Achieving proportional taxes is all that justice requires; beyond this, there is only injustice, oppression, and misfortune for all. But how do we put this across to men who combat the very principle of ownership?
I will tell you that in my head there is a thought that is absorbing me, distracts me from my work, and makes me neglect my friends. This is a new explanation of these two words: property and community.273 I think that I can show in the most obvious way that the natural order of society bases on ownership itself the most beautiful, wide-ranging, and progressive community. This may appear paradoxical to you, but I have total certitude in my mind. I am anxious to be able to put this thought to the general public as I think that it will reconcile sincere men in all schools of thought. It will doubtless not draw the leaders of sects, but it will prevent the young people [200] in schools from going to enroll themselves under the flag of communism. Am I in the coils of an illusion? This is possible, but the fact is that I am consumed with the desire to publish my idea. I am still afraid that I will not have the time, and when cholera was decimating the Assembly I said to God, “Do not take me from this world before I have accomplished my mission.”
Letter 137. Bruxelles, hôtel de Bellevue, June 1849. To Madame Cheuvreux↩
SourceLetter 137. Bruxelles, hôtel de Bellevue, June 1849. To Madame Cheuvreux (CH, pp. 19-24; also extract in CW7, pp. 432-33) [CW1, pp. 200-02].
TextYou wanted me to send you my traveler’s impressions noted pell-mell on paper; do you not know that the diary has its dangers? It resembles memoirs in which you talk only about yourself. Oh, how much I would prefer to talk to you about yourself and your beloved Louise, about her occupations, her interests, her views, La Jonchère, and also a little about Le Butard; there, all is poetry, which cannot be said of the Brabant, this classic land of work, order, economy, and full stomachs. Besides, I can talk about it only through hearsay, as I arrived only yesterday evening and have seen it only through the window; in all truth this is serving me well, since it lays out before my gaze the king’s palace. Thus, a few hours ago I was breathing air infected by republicanism, and now I have been plunged into an atmosphere of monarchy. Well then, would you believe that I have not even noticed the transition? The last word I heard on the other side of the frontier was the same as I heard on this side, “your passport.” Alas, I did not have one. For a moment, I hoped that I would be sent back to Paris and my heart beat faster, but everything is becoming civilized, even gendarmes and customs officers, and in short I was allowed to pass with the recommendation that I should declare myself to the ministry of justice since, as the gendarme added, “We have been caught out several times, and only recently we nearly allowed M. Proudhon to escape.” “I am not surprised,” I replied, “that you have become so careful, and I will certainly go to make a declaration in order to encourage the gendarmerie to continue acting in this way.”
But let us take things to a higher level. On Saturday, when I left the session (you see that I am writing a conscientious diary), I mentioned the word Brussels. “I am going there tomorrow at half past eight,” said Barthélemy Saint-Hilaire; “let us go together.” Accordingly I went to the rue La Fayette, thinking that I was arriving at the agreed time, but the convoy had left and [201] I had to wait for the one at midday. What was I to do in the interval? The Butte Montmartre is not far and the view from it is boundless. Around five o’clock, we crossed from France into Belgium and I was surprised not to feel any emotion. This was not so when I crossed our frontier for the first time; then I was eighteen and I was entering Spain! It was at the time of the civil war, I was riding a superb steed from Navarre, and, ever a man of caution, I had put a pair of pistols in my portmanteau, since Iberia is the land of great adventures, distractions that are unknown in Belgium. Might it be true that good social order kills poetry? I can still remember the impression made on me by the proud Castilians when I met them on the road on horseback and equipped with a blunderbuss apiece. They seemed to be saying: “I am not paying anyone to protect me; I protect myself.” Among all races, it seems that civilization raises the level of the masses and lowers the value put on individual character. I fear that this country will confirm this observation.
It is impossible not to be struck by the appearance of comfort and well-being offered by Belgium. Huge factories that you meet at every step trumpet a happy confidence in the future to the traveler. I wonder if the industrial world, with its monuments, comfort, railways, steam, electric telegraphs, floods of books and journals, achieving the ubiquity, unpriced character, and common availability of material and intellectual goods, does not also have its own form of poetry, a collective form of poetry, of course. Does the ideal exist only in biblical, warlike, or feudal manners? Should we, in this respect, mourn the passing of wildness, barbarism, and chivalry? In this case, it is in vain that I seek harmony in civilization, since harmony is incompatible with the prosaic. However, I believe that what makes the past appear to us in such poetic colors, the Arab’s tent, the grotto of the anchorite, or the keep of the lord of the manor, is distance, an optical illusion. We admire what contrasts with our habits and life in the desert moves us, while Abd el-Kader goes into ecstasy over the marvels of civilization. Do you think that there has ever been as much poetry in one of the heroines of antique times as in a woman of our era? Or that their minds were as cultured, their feelings as delicate, and that they had the same tenderness of heart and grace of movement and language?
Oh, let us not denigrate civilization!
Forgive me, mesdames, for this essay, but you asked for this in requesting me to write freely about things as they occurred to me. This is what I am doing, and I have to give my mind free rein, since two sources of ideas are [202] closed to me: my eyes and my heart. My poor eyes do not know how to see as nature has refused them length of vision and rapidity; I cannot therefore describe towns or landscapes. As for my heart, it has been reduced to loving an abstraction, becoming passionate about humanity and science; others direct their aspirations toward God. This is not superfluous with respect to either; this is what I thought a short time ago when I left an asylum run by nuns devoted to caring for sick children, the mentally deficient, the deformed, and the scrofulous. What devotion! What selflessness! And after all, this life of sacrifice must not be full of suffering, since it leaves such expressions of serenity on their faces. Some economists deny the good done by these saintly women; what cannot be doubted is the influence for good that such a sight produces. It touches, induces tenderness, and raises the spirit; we feel ourselves to be better and capable of a faint imitation of this at the sight of such sublime and modest virtue.
I am running out of paper; otherwise you would not escape a lengthy dissertation on Catholicism, Protestantism, the pope, and M. de Falloux.
Please give me news of M. Cheuvreux; I hope he finds in the waters health and moral peace, so disturbed by the unrest caused by our miserable politics! Unlike me, he is not an isolated person without responsibility. He is thinking of you and his Louise; I understand his irritation at those causing trouble and reproach myself for not always having respected this sufficiently.
Farewell, I present my homage to both mother and daughter.
Letter 138. Bruxelles, June 1849. To Madame Cheuvreux↩
SourceLetter 138. Bruxelles, June 1849. To Madame Cheuvreux (CH, pp. 25-27) [CW1, pp. 202-03].
TextThe absence of your brother-in-law274 will have a bad effect on those in favor of peace;275 they are expecting a reception which they are not going to receive. M. Say is one of those who signed the invitation. On the basis of this circular several hundred foreigners are going to come to Paris, some crossing the Channel and others the ocean, and they will be expecting to find ardent zeal over here. What a disappointment they will have when they see that the cause of peace in France is represented by Guillaumin, Garnier, and Bastiat. [203] In England, it arouses entire populations, men and women, priests and the laity; does my country always have to be left behind?
I will be returning to Paris via Ghent and Bruges. I would like to arrive two days before the conference in order to find out what practical arrangements have been made since, I must admit, I am anxious about this. At the very least, I must carry out my duty of hospitality to Cobden, and to do this I may have to call on your boundless good nature; I will ask your permission to introduce to you one of the most remarkable men of our time. If I succeed, as I hope, in reaching Paris on Saturday, I will take the liberty of going to La Jonchère on Sunday. Will I find that nothing has changed there?
Will Mlle Louise be in full possession of her health and voice? It is a very pleasant although imperative habit to be informed as to what is interesting day by day and it makes even the shortest absence difficult.
Taking everything into account, mesdames, allow me not to take advantage of your indulgence and to hold back the telling of my tale of Antwerp. What is the use of sending it to you and giving you the trouble of reading it when I can shortly replace it with a few minutes of conversation? Besides, on rereading these notes, I see that they talk about everything except Antwerp. I have found the Belgians to be very proud of the common sense they have shown in the last two years of European troubles. They have hastened to put an end to their disagreements by mutual concessions; the king has set the example, and the Chamber and people have followed him. In short, they are all delighted with each other and with themselves. However, socialist and communist doctrines have continued their underground work and I think this is somewhat frightening for the people. This has brought to my mind a project that I will tell you about, but what in fact are projects? They resemble tiny bubbles, which appear and disappear on the surface of rough water.
Farewell, madam. Do not think that feelings act in the same way as projects. The affection I feel for you and your family is too deep and too solidly anchored not to last as long as my life and I hope beyond it.
Letter 139. Anvers, June 1849. To Madame Cheuvreux↩
SourceLetter 139. Anvers, June 1849. To Madame Cheuvreux (CH, pp. 27-31) [CW1, pp. 203-05].
TextThe extremes have met. This is what you feel on the railways; the extreme multiplicity of impressions cancels them out. You see too many things to see any one thing. This is a singular way of traveling: you do not speak, your [204] ears and eyes fall asleep, and you are wrapped in your thoughts in solitude. The present, which ought to be everything, is nothing. But also, with what tenderness does the heart turn back to the past and with what eagerness does it leap forward toward the future. “A week ago . . . in a week’s time.” Are these not well-chosen texts for meditation when, for the first time, Vilvorde, Malines, and Brabant fly past under a gaze that does not see them!
This morning I was in Brussels, this evening at five o’clock I was once more in Brussels; in the intervening period I saw Antwerp, its churches, its museum, its port, and its fortifications. Is this really traveling? What I call traveling is to enter into the society you are visiting, finding out the state of people’s minds, their tastes, their occupations, their pleasures, the relationships between the classes, the moral, intellectual, and artistic level they have attained and what we can expect from them for the advancement of the human race. I would want to ask questions of their statesmen, their merchants, their laborers, their workers, their children, and above all their women, since it is the women who prepare future generations and control manners.
Instead of that, I am shown a hundred paintings, fifty confessionals, twenty steeples, I do not know how many statues in stone, marble, and wood, and I am told, “This is Belgium.”
To tell you the truth, there is just one resource for the observer and that is the dinner table. It gathered around it today sixty diners not one of whom was Belgian. You could see five Frenchmen and five long beards; the five beards belonged to the five Frenchmen or rather the five Frenchmen to the five beards, since the principal should never be taken for the accessory.
This being so, I asked myself this question, “Why do the Belgians, English, Dutch, and Germans shave? And why do the French not shave?” In each country, men like to have it thought that they possess the qualities that are the most highly prized. If fashion turned to blond wigs, I would say to myself that these people are effeminate; if I noticed in portraits an exaggerated development of the forehead, I would think that these people had dedicated a cult to intelligence; and when savages disfigure themselves to make themselves look frightening, I conclude that they prize brute force above all. This is why I experienced a dreadful feeling of humiliation today when I saw all the efforts of my fellow countrymen to make themselves look ferocious. Why did they have these beards and moustaches? Why this military tattooing? Whom do they want to terrify and why? Fear! Is this the tribute that my country is bringing to civilization?
[205]It is not only traveling salesmen who are indulging in this ridiculous travesty; should it not be up to women to fight it? But is this all I have brought back from Antwerp? It was worth the trouble to travel for miles without end or purpose. I saw paintings by Rubens in their own country; you can well imagine that I sought in living nature the models for these ample studies in flesh tints that the master of the Flemish School reproduced with such pleasure. I did not find them since in truth I think that the Brabant race is inferior to the Norman race. I am told I should go to Bruges; I would go to Amsterdam if this was my type of attraction but this red flesh is not my ideal. Sentiment and grace, this characterizes woman or at least the type of woman worthy of the paintbrush.
Letter 140. Paris, Tuesday 13, summer 1849. To M. Domenger↩
SourceLetter 140. Paris, Tues. 13, summer 1849. To M. Domenger (OC7, pp. 403-4) [CW1, pp. 205-06].
TextYou ask me to give you some news. Do you know that I might well ask you for some? For the last few days I have made myself into a hermit and what has happened to me is like a dream. I was tired and ill; in short, I had decided to ask for a leave of absence and I am spending it at the lodge at Le Butard. What is Le Butard? It is this:
Do you know the area which extends from Versailles to Saint-Germain and which includes Bougival, La Celle-Saint-Cloud, Vaucresson, Marly, etc.? It is the most delightful, hilly region and one that is certainly the most wooded in the world after the forests in America. This is why, as he did not have a sufficiently extended view at Versailles, Louis XIV had the chateau de Marly built and why immediately Mesdames de Montespan, Maintenon, and later Dubarry277 had the delightful villas built at Louveciennes, Malmaison, La Jonchère, Beauregard, etc.
Today, these are all lived in by people I know. Near the center, in the middle of a thick forest, isolated like an eagle’s nest, there is the lodge of Le Butard, which the king sited at the convergent point of a thousand avenues as a hunting lodge. It takes its name from its elevated position.
However, a reactionary, who has known for a long time that I wanted to enjoy this picturesque and untamed place and that I was thinking about [206] producing something on property, allowed me to camp in his lodge at Le Butard, which he had rented from the state with the surrounding hunting rights. Here I am then, all alone, and I am enjoying this way of life so much that when my leave of absence is over I am proposing to go to the Chamber and return here every day. I read, go for walks, play the bass, write, and in the evening I go down one of the avenues which leads me to a friend. This is how I learned yesterday of the death of Bugeaud. He is a man who will be missed. His military frankness inspired confidence and in particular sorts of potential situations he might have been very useful to us.
I have come to Paris. There I have found things in a very sorry state. The senseless audacity of —— exceeds any belief. These men amuse themselves by trampling underfoot all the rules of representative government, constitution, laws, and decrees. They do not see that they are even making the monarchy they dream about impossible! What is more, they are playing with the honor, word, and even the security of France; they are compromising what she stands for and are drowning justice in blood. It is worse than madness.
Under these circumstances, I will be forced to leave my lodge in Le Butard or at least spend part of my days on the main roads. I will also have to interrupt the work I had begun to sketch out and which I had decided to publish, even in its rough form.
Letter 141. Paris, 14 July 1849. To M. Paillottet↩
SourceLetter 141. Paris, 14 July 1849. To M. Paillottet (OC7, pp. 436-37) [CW1, pp. 206-07].
TextMy dear Paillottet, I am very grateful that you remembered me in our Pyrenees and at the same time I am proud of the impression they made on you. How happy I would have been to accompany you on your outings! We would perhaps have brought a chill and a touch of vulgarity to these fine landscapes by adding political economy to them. Actually, no, since social laws have their harmonies just like the laws governing the physical world. This is what I am trying to demonstrate in the book that I am currently working on—I have to admit that I am not happy with it.278 I had a magnificent subject to which I have not done justice and have no time to rewrite, since the first pages are being printed. Perhaps this fiasco is not my fault. It is a difficult if not impossible thing to talk appropriately about social harmonies to an audience that is ignorant of, or which contests, the most elementary [207] notions. Everything has to be proved, right up to the legitimacy of interests, etc. It is as if Arago wished to demonstrate the harmony of the movement of the planets to people who know nothing of arithmetic.
What is more, I am ill disposed and do not know to what to attribute this given that I am in good health. I am living at Le Butard where I hoped to find inspiration; instead of this, inspiration has fled.
It is being said that the Assembly will be prorogued from 15 August to 1 October. Please God that this is so! I will try to retrieve myself in my second volume in which I will be drawing the consequences of the first with regard to our current situation. A social problem—a French problem. . . .
Political economy owes a great deal to you as do I for your zeal in recommending us. Please continue to do so. One convert produces others. The country has a great need of this science, which will be its savior.
servant,
Letter 142. Paris, 30 July 1849. To Félix Coudroy↩
SourceLetter 142. Paris, 30 July 1849. To Félix Coudroy (OC1, pp. 99-100) [CW1, pp. 207-08].
TextMy dear Félix, you have seen that the prorogation for six weeks has been passed with just a small majority. I am planning to leave on the 12th or 13th. I leave you to imagine with what happiness I will see Mugron, my relatives, and friends again. Please God that I will be left alone throughout this time! With your help perhaps I will finish the first part of my work.279 I care very much about this. It got off to a bad start; it is too controversial; it is too labored, etc., etc.; I am longing to present it to the world, but I am determined not to play any parliamentary role before it is able to provide me with support. The other day, M. Thiers put out a challenge to those who believed they had the solution to the social problem. I was on tenterhooks on my seat but felt myself to be anchored to it because of the impossibility of making myself understood. Once the book has been published, I will have a resource to which I can refer the men of little faith.
Since we should be having the joy of seeing each other and continuing our delightful conversations, there is no point my replying to the political part of your letter. We are of one mind regarding principles; it is simply impossible for us to have differed on the facts themselves and on people.
[208]I will bring the books you have asked me for, and perhaps also those that I need. Would you please do me the service of telling my aunt that I am in excellent health and that I am preparing to leave?
Letter 143. Mont-de-Marsan, 30 Aug. 1849. To Madame Cheuvreux↩
SourceLetter 143. Mont-de-Marsan, 30 Aug. 1849. To Madame Cheuvreux (CH, pp. 31-34) [CW1, pp. 208-09].
TextOrganizations that are somewhat ethereal are unfortunate in that they are highly sensitive to tiresome trials and disappointments, but how sensitive are they too to unexpected good fortune when it happens to them! Who would have told me that today I would receive news from La Jonchère? Space has the effect of time, and because I am many leagues away from my beloved Butard, I feel that I am also distant from it by many days both past and in the future. You and Mlle Louise, who are so indulgent, will forgive my outpourings on this subject; perhaps it is because I feel profoundly disgusted by political and social sentimentality that I have become somewhat sentimental in my affections. What can you do! The heart needs revenge; and also, I do not know how you, both mother and daughter, do it, but you have the gift and art of making all those who come into contact with you so content and happy that they can be excused for showing it a little. I was sure that M. Cheuvreux would be sorry not to have been able to join you in the fine welcome given to Cobden at his house. But I am happy to hear this. Would he not have found my manner of dispensing hospitality somewhat indiscreet? I wanted France and England to appear to each other in their best light. With the Cheuvreux ladies I was proud of Cobden; with Cobden I was proud of the Cheuvreux ladies. These insular peoples ought to know that each of the two countries has something to envy the other for.
It is a good sign that M. Cheuvreux is extending his stay at the spa; this proves that it is doing him good.
The journey ought to have tired me more. Two coaches always went together, with ours behind, that is to say in a cloud of dust. My traveling companions were dreary; thank God I talk to myself and imagination is enough for me; it has produced a plan that is the finest and most useful to humanity that you could imagine. It has only to be written down, but once again I will just have to rely on good intentions. If God takes account of this, I will be saved!
[209]Just think, mesdames, how amusing I must find it to be kept here by the General Council, knowing that my aunt and friend280 are expecting me in Mugron. And that is not all: I am enduring the weight of my fame; had they not held back all the most troublesome matters in order to do me the honors of the session? It was a question of being modest and a Gascon; I was both of these and to relieve myself of this strange form of courtesy I spoke of my fatigue. I took the opportunity, however, of producing a little economiste propaganda, given that our prefect has just infected his speech with socialism; this leprosy is getting everywhere. Tomorrow I will know which of the two schools will gain the majority in the Council. My fellow citizens are first-rate in support of me, they do have some small peccadilloes with which to reproach me, but they treat me like a spoiled child and appear to understand that I must be left to act, work, and vote capriciously.
I would like to bring Mlle Louise back a souvenir from our Landes, but what? Shall I go to Bayonne to find a few very tender romances set in restoration times, or else some Spanish boleros?
Mesdames, take pity on a poor exile; is it not strange to be an exile when one is at home? At this, you will say that I love paradoxes and that is a genuinely felt truth. For this reason, please write to me from time to time; I do not greatly dare to ask this sacrifice of Mlle Louise.
Please remain assured, both of you, of my fondness.
Letter 144. Mugron, 12 Sept. 1849. To Madame Cheuvreux↩
SourceLetter 144. Mugron, 12 Sept. 1849. To Madame Cheuvreux (CH, pp. 34-39) [CW1, pp. 209-11].
TextIt seems to me that twenty deliveries of letters have passed without bringing me any letters. Has time, like my watch, stopped since my return here? Or has Mlle Louise taken me at my word? However, a careful calculation which I have redone a hundred times tells me that it is not a week since my letter has gone. It is not your dear daughter who is in the wrong but my impatience. I would like to know whether M. Cheuvreux has returned to you in full health, if you yourself have recovered from your unpleasant insomnia, and in short if there is as much joy at La Jonchère as it deserves and [210] as I would wish. What a good invention the electric telegraph will be when it is put to the service of friendship! Perhaps one day it will have a telescope, which will enable it to see at two hundred leagues. Distance would then be bearable; for example, I would now turn it toward your drawing room. Mlle Louise is at the piano. I can guess from her expression the romantic song she is singing. M. Cheuvreux and you are experiencing the sweetest joy you can experience on this earth and your friends are forgetting that the last coaches are about to leave. This picture is heartwarming. Would it be unseemly and too provincial to tell you that this portrait of virtue, happiness, and union of which your family has given me such an example has been an antidote for me to the skepticism that is fashionable and a protection against anti-Parisian prejudice. What does this reproach by Rousseau mean, “Paris, a town of mud, etc.”? Not long ago I came across a novel by Jules Janin.281 What a dreary and disastrous portrait of society! “The stable and the church go together,” he says, meaning that esteem is gained in Paris only through the horse on which you parade in the wood or through hypocrisy. Tell me, pray, that you have never met this man or rather that he has never met you. Because they present wealth and selfishness as being the two sides of the same coin, novelists like him have supplied the grounds for socialist ranting. For my harmonies,282 I needed to be sure that wealth is not only compatible with the qualities of the heart but that it develops and perfects them. I am sure of this now and feel that I am proof, as the English say, against skepticism.
Right now, madam, do you want me to lend you my marvelous telescope for a minute? I would really like you to be able to see from behind the curtain the following scenes of provincial life. In the morning, Félix and I walk around my room reading a few pages of Madame de Staël or a psalm by David; when dusk falls I go to the cemetery to look for a tomb, my foot recognizes it, here it is! In the evening I spend four hours in intimate contact with my good aunt. While I am buried in my Shakespeare, she talks with the most sincere animation, being kind enough both to ask the questions and provide the answers. Here comes the chambermaid, however, who thinks that the hours are long and feels obliged to give them a bit of variety; she comes on the scene and tells us about her electoral tribulations. The poor girl has been giving me publicity; people have always challenged her on free trade and she [211] has argued with them. Alas, what arguments! She proudly repeats them to me and while she is giving her speech in Basque dialect, patois, and French, I remember this quotation from Patru, “There is nothing like a bad advocate for ruining a good cause.”283 Finally, suppertime arrives; dogs and cats rush into the room, escorting the garbure.284 My aunt becomes furious. “Dreadful animals,” she cries. “You see how bold they become when M. Bastiat arrives!” My poor aunt! This great fury is just artful tenderness and can be translated thus: “See what a nice person Frédéric is.” I do not say that this is true, but my aunt wants this to be believed.
I was rightly telling you, madam, that letters from villages are deadly things; we can find subjects to write about only in the environment in which we live or in our own selves.
What a milieu Paris is for someone who writes! The arts, politics, and news are all in abundance, but here the outside world is sterile. You have to have recourse to another world, the inner one. In a word, you have to talk about yourself, and this consideration ought to have made me choose the smallest of scales. Instead of this I am clumsily sending you an acre of chatter; what reassures me is that my indiscretion will find it impossible to exhaust your indulgence.
I think that the prorogation has calmed the political effervescence a little; this should be a good thing, and in this respect we should wish that it were not so near to the end of its term. On our return, I would like the government to deliver us a heap of laws on which to browse, to take up our time, and to distract us from discussions that are sterile, or rather fertile only in hatred and exaggeration.
Please convey to M. Cheuvreux and Mlle Louise the great pleasure that I will have when I meet them again soon. Perhaps I will be back at La Jonchère again on Sunday, 30th September.
If I am in Paris, I will offer to escort Mme Girard, happy to receive the confidence of her maternal joys and cares. As for the tourists, I will be writing shortly to M. Say.
to assure you of my respectful
affection.
Letter 145. Mugron, 16 Sept. 1849. To Madame Cheuvreux↩
SourceLetter 145. Mugron, 16 Sept. 1849. To Madame Cheuvreux (CH, pp. 39-43) [CW1, pp. 212-13].
TextYou have probably returned from the spa, my dear M. Cheuvreux. I am somewhat surprised at being reduced to conjecture.
There are some dreary times in which disturbed imaginations are easily inflamed. Can anyone leave Paris without thinking that he has left cholera there? The silence of our friends, which is always hard, is now becoming difficult to bear.
The purity of the air at La Jonchère reassures me. However, you have many relatives in Paris, and are not you yourself kept there almost every day by your judicial duties? These ladies have doubtless not thought of sparing me this form of anxiety. I would like to attribute their silence to less-dismal causes: business matters, pleasurable activities, walks, visits, music, chats, etc., and they also have a great many correspondents! Everyone has to take his turn. However, I would be happy to learn that everyone in your house is in good health and that this is also true of M. Say, the Renouards, at Croissy, etc.
When I arrived here, I organized a shooting party. I am sharing the catch between the Hôtel Saint Georges and the rue Boursault.
Yesterday, to put this matter of the shoot in context, I spent the day in the countryside where I lived in the past, sometimes alone and sometimes with others. The countryside here is very similar to that in which you live, a chain of hills with a river at their foot and plains as far as the eye can see beyond. The village is on the top of the hill and my property on the opposite bank of the river. But if art has done more to the banks of the Seine, nature is more unspoiled on those of the Adour. It would be impossible for me to express to you the impression I felt when I saw these long avenues of old oaks, this house with its huge rooms with only memories for furniture, these peasants with clothing in clear colors who speak in a simple language which I cannot help associating with the pastoral life. In fact I always think that a man in an overall and cap who speaks French is not really a peasant, and then the benevolent relationship between an owner and his sharecropper seems habitually to me to be another essential condition in establishing the genuine countryside. What a sky! What nights! What shadows! What silence, broken only by the distant barking of dogs to each other or by the vibrant and prolonged note echoing through space of the melancholy voice of a belated cowherd! These scenes affect the heart more than the eyes.
[213]But here I am, back at the village. The village! It has moved one step closer to Paris. They read the gazette. Depending on the weather, they discuss Tahiti, or Saint-Jean d’Acre, Rome, or Comorn.285 I was counting on the holidays to calm the political effervescence a little, but see how the wind of passions is getting up. France is once more between two impossible choices. The Republic has been led by guile and violence onto a terrain on which legitimism will beat it quite logically. It is sad to think that M. de Falloux matters and that the France of the nineteenth century does not. The population is nevertheless endowed with common sense; it wants what is good and understands this, but it has forgotten how to act of its own accord. A few horseflies always succeed in provoking it into inextricable difficulties. But let us not talk about such a dreary subject.
I hoped to have made progress with my book here,286 an additional disappointment. Besides, I am no longer in such a hurry as, instead of being a work of current interest, it has become a work of pure doctrine and can have an effect, if effect it has, only on a few theoreticians. The real solution of the social problem would need to be propagated by a journal while still being based on a major book. I have something of an idea of embarking on a monthly publication, such as those of Lamartine and Louis Blanc. I think that our doctrine would spread like a fire or rather like a light, since it is certainly not incendiary. Everywhere I have preached it, I have found minds marvelously disposed to receive it. I tried this out on my colleagues in the General Council. Two obstacles terrify me: my health and finding the down payment.287 We will discuss this soon, as I hope to spend the day of 30th September with you.
Farewell, my dear sir; if you have an extra moment, please spare your ladies the trouble of writing to me. Please assure them that the regime of privation to which they are subjecting me has not made me forget their boundless benevolence.
Letter 146. Mugron, 16 Sept. 1849. To Horace Say↩
SourceLetter 146. Mugron, 16 Sept. 1849. To Horace Say (OC7, pp. 382-83) [CW1, p. 214].
TextSee how our holidays, which have scarcely started, are coming to an end, even if they are not shortened for us. Are we going to be recalled to put an end to the Catholic muddle? Alas! It is to be feared that all we will do is muddle it a bit more. We are really in a blind alley. The Republic, through the determination of the government and disregard of the National Assembly, has put itself at the service of the inquisition. It now has two choices: either it goes the whole way, becoming more Jesuitical than the Jesuits, or it backs down, acknowledging the position of the Constituent Assembly, destroying the government and the current majority, and running the risk of internal upheaval and universal war. Like honor, principles are:
- . . . like an island with steep hills and no shores;
- You cannot go back to it once you have left it.288
And yet the political difficulties are what worry me the least. What is distressing for this country is to see the men in the public eye one after the other sacrificing every shred of moral dignity and all intellectual consistency. The result is that the people are losing all trust and yielding to the most irremediable of solvents, skepticism.
This is why I would like the solution to the social problem, as provided by the most severe form of political economy, that is to say self-government,289 to have a special mouthpiece all to itself. This idea should be put before the general public: that the government should guarantee security to each person and that it should not concern itself with anything else. A monthly publication with this aim and which would be distributed like those of Louis Blanc and Lamartine at a cost of six francs a year might be a useful sharpshooter for Le Journal des économistes. We will discuss this soon as I am planning to leave Bordeaux on the 28th if I can get a seat on the mail coach. . . .
Letter 147. Mugron, 18 Sept. 1849. To Madame Cheuvreux↩
SourceLetter 147. Mugron, 18 Sept. 1849. To Madame Cheuvreux (CH, pp. 43-48; extract also in CW7, p. 435 but dated July 1850) [CW1, pp. 215-17].
TextThere is a note of sadness in your letter, madam, and this is very natural. You have just lost a childhood friend. In these circumstances, the initial feeling is one of regret, and then you look around your entourage with worry and end up looking in at yourself. Your mind asks questions of the great unknown and, on receiving no reply, panics. This is because there is a mystery there which is not open to the spirit but to the heart. Can you have any doubts when facing a tomb?
Madam, allow me to remind you that you have not got the right to mourn for very long. Your soul is a tuning fork for all those who love you and you have to be happy under pain of making miserable your mother, your husband, and the delightful child whom you love so much that you would force everyone to love her if she did not do so perfectly well on her own.
My ideas have taken the same road, since we too have our trials. Cholera has not visited this region but it has sent a distressing emissary: my aunt’s chambermaid is gravely ill, but they hope to save her. This has made my aunt appear to have lost twenty years, as she is on her feet night and day. For my part, I bow before such devotion to duty and I will always maintain that you, ladies, are worth a hundred times more than we. It is true that I do not agree with other economists on the meaning of the word value.290
Are you making fun of me, madam, in reproaching me for not writing? Five letters in four weeks! But what has happened to the precious missive which you mention? I will be inconsolable if it is lost definitively.
What was M. Augier talking about for you to have the kindness to send me his work? I like this young poet’s verses a great deal and will long remember the vivid impression we had at the reading of his drama.291 In any case, this play will be obtainable; he has doubtless kept the text and he will be happy to send it to me.
However, are your letter and that of Mlle Louise lost forever? In this case, will you be able to tell me what was in them? You may be sure that I will ask you to do this.
[216]It is on Saturday that I am leaving for Bayonne; I have only four more days here. Although Mugron is monotony personified, I will miss this sojourn of peace, the total independence, and free disposal of my time and the hours that so resemble one another that they cannot be distinguished:
- The uniform habits
- that bind from day to day;
- Neither fame nor study,
- Nothing but solitude,
- Prayer and . . .292
I have not finished the line as my literature master taught me that reason should never be sacrificed to rhyme.
19th. In two hours I will myself be going to Tartas293 to post the boxes containing ortolans.294 They will be leaving on Thursday morning and will arrive in Paris on Saturday. If, by chance, they are not delivered to the Hôtel Saint-Georges, you will have to take the trouble to go to the post office as punctuality is essential for these small creatures.
I hope that my fellow countrymen will not let themselves be corrupted on the way and that you will not have to echo the quotation from Faucher with regard to the conflicts of interest:295 “Can anything good come out of the Great Landes?” Our friend de Labadie is already a good contrary case; what do you think, Mlle Louise? Since I am addressing you, allow me to say that my poor ears are in a sort of vacuum here. They are hungering and thirsting for music. Please keep a pretty romantic song, the most minor possible, for me. Would you not also like to practice the “Tropical Night”? You will end up liking it.
From music to the Harmonies is a very tempting switch. But since it is a question of economic harmonies, it throws a bit of cold water on things. So I will not talk to you about it. I will simply admit that, because of developments into which I have been drawn, my book will no longer reach other people than those professionally engaged. I am therefore almost resolved, as [217] I said to M. Cheuvreux, to start a monthly publication. I will be calling on you to place advertisements. Where journals are concerned, placing advertisements is at least as important as composition of articles. This is what our colleagues are too apt to forget. You must interest women in this work.
Farewell, madam; please remember me to M. Cheuvreux. I am not surprised that he finds the air at La Jonchère is better than that at Vichy. I beg Mlle Louise to allow me the word friendship. One is always embarrassed faced with such charming creatures; homage is very respectful and affection is very familiar. There is a bit of all this here and I do not know how to express it. They will have to guess at it a little.
Letter 148. Paris, 7 Oct. 1849. To Madame Cheuvreux↩
SourceLetter 148. Paris, 7 Oct. 1849. To Madame Cheuvreux (CH, pp. 48-50) [CW1, pp. 217-18].
TextI have received from my beloved Landes this morning a carton that I assume contains some ortolan buntings. I am sending it to you without opening it. Supposing it contains woolen stockings! Oh, I would be very embarrassed, but when all is said and done I would be the butt of a few jokes. Yesterday evening, in my haste and with characteristic tact, I arrived at M. Say’s house right in the middle of dinner. To celebrate the reopening of the Monday gatherings, all our friends were there. The party was in full swing to judge from the bursts of laughter that reached me in the drawing room. The hall embellished with a number of black, white, and pink cloaks showed that there were not only economists present.
After dinner, I approached the sister-in-law of M. D—— and, knowing that she has just arrived from Belgium, I asked her if she had had a pleasant trip. This is what she answered: “Sir, I had the unspeakable pleasure of not seeing the face of a single Republican because I hate them.” The conversation could not continue for long on this subject, so I spoke to the person next to her, who started to tell me about the pleasant impressions made on her by Belgian royalism. “When the king passes,” she said, “everything is joyful: shouts of joy, heraldic figures, banners, ribbons, and lanterns.” I see that in order not to displease the ladies too much, we must make haste to elect a king. The embarrassment is to know which one, since we have three in the wings and who will win (after a civil war)?
[218]I was obliged to take refuge with groups of men, since to tell you the truth political passions are grimaces on women’s faces. The men pooled their skepticism. They are splendid propagandists who do not believe a word of what they preach. Or rather, they do not doubt, they just pretend to doubt. Tell me which is worse, to pretend to doubt or to pretend to believe? Economists really must stop this playacting. Tomorrow, there will be many guests to dinner. I will ask about a journal intended to disseminate principled intellectual certainties. I regret that M. Cheuvreux cannot be with us. While I disagree with him on particular questions, opinions of people or circumstances, we agree on ideas and the fundamentals of things. He would support me.
call myself the most devoted and
respectful of your friends.
Letter 149. Paris, 8 Oct. 1849. To Madame Cheuvreux↩
SourceLetter 149. Paris, 8 Oct. 1849. To Madame Cheuvreux (CH, pp. 50-52) [CW1, pp. 218-19].
TextQuite by chance the journal of the Landes has published the traditional recipe in the region for preparing ortolans; doubtless Lord Trompette would not be offended if I sent him, through you, so precious a document.
Yesterday, when I came to deliver my parcel at the rue Saint-Georges, M. Cheuvreux did not make an appearance, although it was an audience day. Today we had an appointment to visit the electric telegraph. He did not come; can he be ill?
The discussion on socialism has been very good, with Charles Dupin excelling himself. Dufaure was admirable and La Montagne violent, nonsensical, and ignorant. What a desolate arena the Chamber has become! How inferior it is, as far as intentions are concerned, to the Constituent Assembly! Then, the vast majority was passionately in favor of good. Now people just dream of revolution and the only thing that checks them is the choice. In spite of this, society is making progress. No one can be taken to task for individual accidents, and I am sorry that that upsets good Mme Alexandre, but it is clear that the general movement is toward order and security.
For you, mesdames, to meet any contingency, you have laid up resources [219] of good fortune in the affection of those close to you and will not both mother and daughter always be angels of consolation for each other?
give just a little value to the
unshakeable devotion of your
respectful friend,
Letter 150. Paris, 14 Oct. 1849. To Madame Schwabe↩
SourceLetter 150. Paris, 14 Oct. 1849. To Madame Schwabe (OC7, pp. 430-32) [CW1, pp. 219-20].
TextDo not be afraid, madam, that your advice is untimely. Is it not based on friendship? Is it not the surest sign of this?
It is in vain that you predict late flowering happiness for me in the future. This cannot happen for me, even in the pursuit or the triumph of an idea that is useful to the human race since my health condemns me to hate the struggle. Dear lady, I have poured into your heart just a drop from the chalice of bitterness that fills mine. For example, just look at my difficult political position and you will see whether I can agree with the prospects you offer me.
I have always had a political idea that is simple, true, and can be grasped by all, and yet it is misunderstood. What was I lacking? A theater in which to expose it. The February revolution occurred. It gave me an audience of nine hundred people, the elite of the nation given a mandate by universal suffrage with the authority to put my views into practice. These nine hundred people were full of the best intentions. They were terrified of the future. They hesitated and cast about for some notion of salvation. They were silent, waiting for a voice to be heard and to which they could rally. I was there; I had the right and duty to speak. I was aware that my words would be welcomed by the Assembly and would echo around the masses. I felt the idea ferment in my head and my heart . . . and I was forced to keep silent. Can you imagine a worse form of torture? I was obliged to keep silent because just at this time it pleased God to remove from me all my strength, and when huge revolutions are achieved such as to afford me a rostrum, I am unable to mount it. I was not only incapable of speaking but also even of writing. What a bitter disappointment! What cruel irony!
Here I am, since my return, confined to my room for simply having wanted to write a newspaper article.
[220]That is not all; I had just one last hope. It was to put this thought down on paper before disappearing from this world so that it did not perish with me. I know very well that this is a poor resource as people today read only well-known authors. Cold print certainly cannot take the place of a speech delivered to the leading political theater in the world. But at least the idea that torments me would have survived. What can one do? The strength to write down and organize a whole theoretical treatise is failing me. It seems as though my mind is becoming paralyzed in my head. Is this not a poignant affliction?
But why am I telling you all this? I have to beg your indulgence. It is because I have bottled up my troubles for so long inside myself that, when I am in contact with a compassionate heart, I find all my private feelings longing to escape.
I would like to send your dear children a small French work that is full of feeling and truth and which has delighted almost all the generations of French young people. It was my childhood companion and later, not very long ago on winter evenings, a woman, her two children, and I wept together on reading it. Unfortunately, M. Heron has left and I do not know how to send it. I will try to send it to Mr. Faulkner in Folkestone.
Farewell, dear lady, I must leave you. Although I am not well, I have to go to defend the cause of the blacks in one of our committees296 and then return to my only friend, my pillow.
Letter 151. Paris, 17 Oct. 1849. To Richard Cobden↩
SourceLetter 151. Paris, 17 Oct. 1849. To Richard Cobden (OC1, p. 181) [CW1, pp. 220-21].
TextMy dear Cobden, you should not doubt my eagerness to attend the meeting on 30 October, if my parliamentary duties are not a total obstacle to this. To have the pleasure of shaking your hand and witnessing the progress of public opinion in England in favor of peace will be a double happiness [221] for me. It will also be very pleasant for me to thank Mr. B. Smith297 for his gracious hospitality, which I accept with gratitude.
Be assured that I will do all in my power to bring our excellent friend, M. Say. I am afraid his duties in the Council of State may retain him. I am all the more anxious to have him as a traveling companion since he does not totally believe in the peace conference.298 To witness your meetings will surely steel his confidence. I will be seeing him this evening.
My friend, nations, like individuals, are subject to the law of responsibility. England will have a great deal of trouble convincing people of the sincerity of her efforts for peace. For a long time, for centuries perhaps, it will be said on the continent that England is preaching moderation and peace, but it has fifty-three colonies and two hundred million subjects in India. This single sentence will neutralize many a fine speech. When will England be advanced enough to renounce voluntarily a few of its expensive conquests? This would be a fine means of propaganda.
Do you think it would be imprudent or out of place to touch on this delicate subject?
Letter 152. Paris, 24 Oct. 1849. To Richard Cobden↩
SourceLetter 152. Paris, 24 Oct. 1849. To Richard Cobden (OC1, p. 182) [CW1, pp. 221-222].
TextMy dear Cobden, Say must have written to you to say that we plan to leave on Sunday evening to be in London on Monday morning. He is bringing his son with him. As for Michel Chevalier, he is still in the Cévennes.
However, there is another thing. M. Say’s brother-in-law, M. Cheuvreux, who was absent when we went to spend a day at his house in the country, and who very much regretted having missed this opportunity of making your acquaintance, is planning to join us. In addition, he very much wants to be present at the movement of English public opinion in favor of peace and disarmament. However, as I do not want to be separated from M. Cheuvreux, [222] I am obliged to write to Mr. Smith to express my deepest gratitude and explain to him the reasons which prevent me from taking advantage of his generous hospitality.
While I am writing this letter, the repeal of the laws of banishment is being debated. I am very afraid that our Assembly will not have the courage to open France’s doors to fallen dynasties. In my opinion this act of justice would consolidate the Republic.
Letter 153. Paris, Nov. 1849. To Madame Cheuvreux↩
SourceLetter 153. Paris, Nov. 1849. To Madame Cheuvreux (CH, pp. 52-53) [CW1, p. 222].
TextHere is a document that will interest you. For my part, I have not been able to read it without being moved to tears (the nature of a mountain is not always a rocky nature). To whom could I turn to share my impressions if not you?
I will be obliged to contest the opinion of my friends and this costs me dearly. But some Greek, whose name I can’t recall, has said: “I love Plato, but I love truth better.” It seems a certainty now that political economy has opened its doors to communism and it is up to it to close them.
If you have five minutes to spare, may I dare to ask you to give me news of the trio?
Letter 154. Paris, 13 Nov. 1849. To M. Domenger↩
SourceLetter 154. Paris, 13 Nov. 1849. To M. Domenger (OC7, pp. 404-5) [CW1, pp. 222-23].
TextThe High Court of Versailles has just rendered its verdict.299 We do not yet have all the details of this; we know only that eleven of the accused, including a member of the Assembly, have been acquitted. All the other representatives have been condemned to be deported, as well as Guinard. I have not followed the discussions sufficiently closely to have an opinion on them. [223] I bow to justice and regret only that the defense was limited as to its means. This is always a worrying precedent. The authority of the cause being judged is not enhanced by this.
You have doubtless heard about my short trip to England. I left on Monday evening after the session and was back on Saturday morning, and for four days I saw only great things and great men, at least in my view.
When I arrived, a sort of very courteous cartel of socialists came to see me. It was a question of detailed discussions before an audience of workers and against Proudhon on the question of whether interest on capital is legitimate, a question that is more difficult and dangerous than the one concerning property, in that it is more general. I believe that I did some good in accepting the contest.300
On this subject, I will tell you, my dear Domenger, that the electors in the Landes may well grow tired of my apparent inaction. It is true that my work is capricious; I have to be taken with all my faults. However, I sincerely believe that the current danger is neither from the authorities nor from the Assembly, but from the misguidedness of popular opinion. It is thus in this direction that I am devoting my weak efforts. I hope that the good sense of our fellow countrymen will make them understand that each person has his own mission in life and that I am fulfilling mine.
Letter 155. Paris, 13 Dec. 1849. To Félix Coudroy↩
SourceLetter 155. Paris, 13 Dec. 1849. To Félix Coudroy (OC1, pp. 100-2) [CW1, pp. 223-25].
TextMy dear Félix, it is sad that our correspondence has slowed down so much. Do not conclude from this, I beg you, that my long-standing friendship for you is cooling; on the contrary, it seems that time and distance, those two great poets, lend charm to the memory of our walks and conversations. I miss Mugron, its philosophical calm and fruitful leisure hours on many occasions. Here, life is worn out with our doing nothing, or at least producing nothing.
Yesterday I spoke during the debate on wines and spirits. As I rarely take the rostrum, I wanted to put forward our ideas. With a bit of perseverance, we will make them triumph. They must have been deemed worthy of examination, as the entire Assembly listened to them in silence, without anyone [224] being able to attribute this rare phenomenon to talent or to the reputation of the speaker. But what is appalling is that these efforts are wasted as far as the public is concerned, because of the poor condition of the journals. Each cloaks me in its own ideas. If they limited themselves to disfiguring or ridiculing my thought, I would accept my lot, but they attribute to me the very heresies that I am combating. What am I to do? Incidentally, I enclose Le Moniteur; enjoy yourself making comparisons.
I did not say all I wanted to say, nor in the way I wished to say it. Our southern volubility is an oratorical plague. When a sentence has been finished, we think of how the sentence should have been phrased. However, with the help of gestures, intonation, and action, we make ourselves understood by our audience. But this discourse written in shorthand is just slovenly and I myself cannot bear to read it.
We are really overworked301 here, as the English say. These long sessions, office meetings, and commissions weigh you down and do no good. They constitute ten wasted hours, which waste the rest of the day, since (at least for weak heads) they are enough to remove the faculty of work. This being so, when will I be able to write my second volume, on which I am relying far more for publicity than on the first? I do not know whether La Voix du peuple is available in Mugron. Socialism is today enclosed in a formula, free credit. It describes itself thus: I am this or I am nothing. For this reason, it is on these grounds that I have attacked it in a series of letters to which Proudhon is replying.302 I think they have done a great deal of good in removing the illusions of a great many misguided followers. But here is something that will astonish you: the bourgeoisie is so blind, so intense, and so confident in its natural strength that it considers it correct not to support me. My letters are in La Voix du peuple and this is enough for them to be despised by these people, as though they might do good elsewhere. Well! When it is a question of reconverting the workers, is it not better to tell the truth in the journal that they read?
On Tuesday, I will be starting my lectures to the young people in the schools. As you can see, there is no shortage of work and, just to make life simple, I am undergoing a treatment for my chest that takes up two hours of my day every day. It is true that it is making me feel very well indeed.
I am talking only about myself, my dear Félix. Please follow this example [225] and tell me a lot about yourself. If you wanted to follow my advice, I would strongly commit you to doing something useful, like producing a series of small pamphlets, for example. They take a long time to penetrate the masses but they end up doing their work.
Letter 156. Paris, 25 Dec. 1849. To M. Domenger↩
SourceLetter 156. Paris, 25 Dec. 1849. To M. Domenger (OC7, pp. 405-6) [CW1, p. 225].
TextI can write you only a few words, as my cold has laid me low. I assure you that it makes my existence very hard to endure.
The hospice affair303 is one of those that make me decide to venture into the labyrinthine world of government. Yesterday, I ascertained that approval of the exchange would not encounter any difficulty and the decree authorizing it was drafted in front of me. However, it can be taken to the Élysée for signature only after the Council of State has approved it. One of my friends has promised me to expedite this affair as quickly as possible.
As for the subsidy, you will have something, but not one thousand francs. The fund handling this has only three hundred thousand francs for the whole of France and needs are unlimited, to the extent that each year the allocation for the following year is gobbled up in advance. I continue to believe that it would be better for the government not to become involved with this, because it would require a lot of senseless administrative work.
And is it not perfectly ridiculous that Mugron and M. Lafaurie are unable to exchange their houses without the approval of the Council of State and permission from the prisoner of Ham?304 Truly, France has created problems and obstacles, merely for the sake of generating additional costs.
It is impossible for me to send you my polemical exchanges with Proudhon, as I have not kept the issues of La Voix du peuple in which my letters were published; but I have been assured that they will be collected into a volume, which I will send to you. Anyway, they are rather boring.
Letter 157. Paris, 31 Dec. 1849. To Richard Cobden↩
SourceLetter 157. Paris, 31 Dec. 1849. To Richard Cobden (OC1, pp. 182-85) [CW1, pp. 226-28].
TextMy dear Cobden, I am delighted with the Bradford meeting305 and congratulate you sincerely for having finally tackled the colonial question. I know that you have always considered this subject very delicate as it affects the most sensitive chords of patriotic hearts. Renouncing rule over a quarter of the globe! Never has such evidence of common sense and faith in science been displayed by any nation! It is surprising that you were allowed to finish your speech. For this reason, what I admired most about this meeting was not the orator (allow me to say this!) but the audience. What can you not achieve with a nation which cold-bloodedly analyzes its dearest illusions and allows, before its very eyes, investigations of the darker side of its glory?
I recall that I boldly intimated the advice to you in the past to direct your aim on the colonial regime, with which free trade is incompatible. You replied at the time that national pride is a plant that grows in all countries and especially in yours, that you should not try to rip it out roughly, and that free trade would gnaw gradually on its roots. I agreed with this good commonsense observation while deploring the necessity for you to keep quiet, since I was perfectly aware of one thing, which was that as long as England had forty colonies Europe would never believe the sincerity of her protestations. For my part, it was useless for me to say, “Colonies are a burden.” This assertion appeared as paradoxical as “It is a great misfortune for a gentleman to have fine farms.” Obviously it is necessary for the assertion and proof to come from England herself. Forward then, my dear Cobden, redouble your efforts, triumph, liberate your colonies, and you will have achieved the greatest thing that exists under the sun since it began to shed light on the follies and fine actions of mankind. The more Great Britain prides herself on her colonial colossus, the more you have to demonstrate the clay feet of this idol, which devours the substance of your workers. Do what is needed to enable England freely, maturely, and in full conscience of what she is doing to tell Canada, Australia, and the Cape, “Govern yourselves by yourselves.”306 Liberty [227] will have won its greatest victory and political economy in action will be taught to the entire world.
For it is essential for protectionists in Europe to have their eyes opened at last.
Initially, they used to say, “England allows manufactured articles to enter the country. What great generosity since she has uncontested superiority in this respect! But she will not remove protection from agriculture since, with regard to this, she cannot stand up to competition from countries where the soil and labor cost nothing.” You have answered this charge by removing the duty from wheat, animals, and all agricultural products.
They then said, “England is playacting and the proof of this is that she is not changing her laws on navigation, since rule over the seas is her life-blood.” And you have reformed these laws, not in order to destroy your navy but to strengthen it.
Now they say, “England may well decree free trade and freedom of the seas since, with her forty colonies, she has taken control of all the outlets in the world. She will never lay a hand on her colonial system.” Overturn the old system and I do not know behind what prophecy protectionists will take refuge. As to prophecy, I dared make one two years ago. It was in Lyons, before a large assembly. I said at the time, “In less than ten years, England will herself voluntarily dismantle the colonial regime.” Do not let me pass here for a false prophet.
Economic matters are as fiercely controversial in France as they are in England, but in a different direction. The basics of economic science are being stirred up. Property, capital, everything is being called into question; and what is deplorable is that good reasons are not always on the side of rationality. This is because of the universal ignorance of these matters. Communism is being combated with communist arguments. But at last the extremely lively intelligence of this country is being put to work. What will be the result of this work? It will doubtless be good for humanity, but will this good not be dearly purchased? Will we have to endure bankruptcies and paper money issued against the security of state landholdings, etc.? That is the question.307
[228]You will doubtless be surprised to see me publish a purely theoretical work right now and I imagine that you will not be able to bear reading it. Nevertheless, I believe that it would have been of some use in this country if I had thought of issuing it in a cheap edition, and especially if I had been able to produce the second volume. Ma non ho fiato: in both physical and moral meanings, I lack the breath to do it.
I have sent a copy of this book to Mr. Porter. My friend, our reputations are like our wines; both need to cross the sea to acquire their full flavor. I would therefore like you to give me the names of a few people to whom I might send my volume so that, with your good offices, they might review it in the journals. It is of course understood that I am not seeking praise but a conscientious appraisal from my judges.
Letter 158. Paris, Jan. 1850. To Félix Coudroy↩
SourceLetter 158. Paris, Jan. 1850. To Félix Coudroy (OC1, pp. 102-4) [CW1, pp. 228-29].
TextNever a day goes past, my dear Félix, on which I do not think of replying to you. Always for the same reason, my head is so weak that the slightest work wears me out. As soon as I am involved in one of these preemptive matters, the little time that I can devote to holding a pen is taken up, and I am forced to put off my correspondence day after day. But finally, if I have to seek indulgence somewhere, it ought to be from my friends.
In a previous letter you told me that you had a project that you would tell me about. I am waiting and very willing to give you support, but if it concerns newspapers, I have to warn you that I have very little contact with them, and you can guess why. It would be impossible to create ties to them without losing one’s independence. I have taken the decision that, whatever happens, I will not be a party man. With our ideas, that would be impossible. I am well aware that in these times to isolate yourself is to remove any influence you may have, but I prefer that. If I had the strength I had in the past, this would be the right time to carry out a real campaign to win over public opinion and my distance from any faction would be an advantage to me. But I can see the opportunity slipping away and this is very sad. Not a day goes by on which I am not given the opportunity to say or write some useful truth. The agreement between all the points of our doctrine will end up by making a strong impression on people’s minds, which have incidentally been made ready for this by the succession of deceptions with which they have been misled. I can see this. Many of my friends are pressing me to [229] enter the ring and I cannot. I assure you that I am learning resignation, and when I need it I will have laid up a good stock.
The Harmonies have passed unnoticed here, except for about a dozen connoisseurs. I was expecting this; it could not have been otherwise. I do not even have the support of the customary zeal of our small church, which accuses me of heterodoxy; in spite of this I am confident that this book will gradually carve out a place for itself. In Germany, it was received quite differently.308 It is examined, ploughed up, worked over, and examined for what is there and what is not. Could I have asked for anything better?
Now I would ask the heavens to grant me one year to write the second volume, which has not even been started, after which I will sing the “Nunc dimittis.”
Socialism is spreading at a frightening rate, but like all contagious diseases it is weakening as it spreads, and it is even mutating. This will be the death of it. The name may survive but not the thing. Today, socialism has become synonymous with progress; anyone who wants any form of change is a socialist. If you refute Louis Blanc, Proudhon, Leroux, or Considérant, you are nonetheless a socialist if you do not demand the status quo in all circumstances. This leads to a strange situation. One day, everyone will meet wearing this label in his hatband, and since, for all that, people will not be in any closer agreement on the reforms to carry out, other names will have to be invented and war will be declared among the socialists. This is already the case and it is this that is saving France.
Farewell, my dear Félix; please tell my aunt that I am well.
Letter 159. Paris, 2 Jan. 1850. To Madame Cheuvreux↩
SourceLetter 159. Paris, 2 Jan. 1850. To Madame Cheuvreux (CH, pp. 53-57) [CW1, pp. 229-31].
I have been aroused from my slumbers to be handed three volumes, which you sent me without a single word of explanation; have I been so unfortunate as to displease you?
Yesterday, you gathered your family and a few friends around your table to see in the New Year. This meal should have been only a joyful and cordial feast. Alas! Politics crept into it and it is all too true that, without me, even [230] politics might not have been able to cast its somber shadow over it, as perhaps everyone would have been in agreement.
But am I guilty? Did I not keep silent for a long time and did I not treat as general comments what I might have taken as personal ones? Words that resembled provocation? What would happen to me, madam, if this reserve were not enough?
Isolated, scarcely retaining for work the remnants of a strength that is deserting me, must I also lose the sweetness of intimacy, the one delight that binds me to the world?
Between M. Cheuvreux and me, what does a difference of opinion matter, especially when this does not concern our aims or any fundamental principle, but only the means of overcoming momentary difficulties?
It is as much through respect for him as for you, madam, that I drank the chalice that these people put to my lips. And after all, are the opinions for which I am reproached in fact so extravagant?
I would like people to agree to consider me as a hermit, a philosopher, a dreamer, if you like, who does not wish to join a party but who examines them all in order to see where danger lies and whether it can be averted.
In France, I can see two major classes, each of which can be divided into two. To use hallowed although inaccurate terms, I will call them the people and the bourgeoisie.
The people consist of a host of millions of human beings who are ignorant and suffering, and consequently dangerous. As I said, they are divided into two; the vast majority are reasonably in favor of order, security, and all conservative principles, but, because of their ignorance and suffering, are the easy prey of ambitious sophists. This mass is swayed by a few sincere fools and by a larger number of agitators and revolutionaries, people who have an inborn attraction for disruption or who count on disruption to elevate themselves to fortune and power.
The bourgeoisie, it must never be forgotten, is very small in number. This class also has its ignorance and suffering, although to a different degree. It also offers dangers, but of a different nature. It too can be broken down into a large number of peaceful, undemonstrative people, partial to justice and freedom, and a small number of agitators. The bourgeoisie has governed this country, and how has it behaved? The small minority did harm and the large majority allowed them to do this, not without taking advantage of this when they could.
[231]These are the moral and social statistics of our country.
Since I hold very little to and believe even less in various forms of politics, am I going to devote my efforts and speak out against the Republic or the monarchy? Plot to change the institutions which I consider to be of no importance? No! But when I have the opportunity to address the people, I tell them of their errors, illusions, and false aspirations, I seek to unmask the impostors who are misleading them, and I say to them: “Ask only for justice for only justice can be of some use to you.”
And when I speak to the bourgeoisie, I tell them: “It is not raging and ranting which will save you. In all encounters you must grant the people what justice demands, in order to be strong enough to refuse everything which exceeds justice.”
And this is why the Catholics tell me that I have a double-edged doctrine and why Le Journal des débats says that I have to become used to displeasing both parties. Goodness, would it not be easier for me to throw myself body and soul into one of the two camps, to espouse its hatreds and illusions, to make myself the toady either of the people or the bourgeoisie, and to affiliate myself to the evil elements of both armies?
Letter 160. Paris, Jan. 1850. To Madame Cheuvreux↩
SourceLetter 160. Paris, Jan. 1850. To Madame Cheuvreux (CH, pp. 57-58) [CW1, pp. 231-32].
TextI have just met Commander Matta,309 who claims that people will be ill tomorrow at the Hôtel Saint-Georges. I hope he is as bad a prophet as he is a brave soldier! Please be good enough to let me have the true state of affairs. You will not allow me to mention health without giving some news of mine. I am better and Charruau,310 like Sganarelle,311 declares that I must be cured. However, yesterday evening, a fatiguing coughing fit revealed the red symptom that is as terrifying in physiology as it is in politics.312 In spite of this, I would still be strong enough to take on whatever is left of your Louisette’s [232] cough if that were possible, but affection cannot do this miracle; this is one harmony that this world is lacking.
Letter 161. Paris, Feb. 1850. To Madame Cheuvreux↩
SourceLetter 161. Paris, Feb. 1850. To Madame Cheuvreux (CH, pp. 58-59) [CW1, p. 232].
TextWith some regret I am returning to you the speech delivered by M. de Boislembert to mark the unveiling of the bust of M. Girard, with the reminder that you had promised me a copy. I read it with enthusiasm and would like to reread it once a month to steep myself in it. This is a life of Plutarch proportions, in harmony with our century. How I admire a life so fine, so honorable, and so fulfilled! What a magnificent blend of all the qualities that most honor human nature: genius, talent, activity, courage, perseverance, unselfishness, greatness, and strength of character in adversity! Up to this point, however, the portrait is very impressive and reveals only pure but severe lines; we admire but do not yet love him. Shortly after this, though, we are totally won over when the author describes, perhaps with too much sobriety, the sparkling wit, gentle gaiety, and inexhaustible benevolence that M. Girard invariably brought to his home life, the most precious gifts of all from heaven, that your father has not carried with him to the tomb.
These noble figures, madam, make men appear very small and humanity very great.
Letter 162. Paris, 18 Feb. 1850. To M. Domenger↩
SourceLetter 162. Paris, 18 Feb. 1850. To M. Domenger (OC7, pp. 406-7) [CW1, pp. 232-33].
TextThe political future is still very somber. Unfortunately, much passion and artificial suspicion are mingled with genuine grievances; this is always the case in revolutions. I who see men from all parties can, as it were, measure what is false in their mutual accusations. But hatred, whether well founded or not, produces the same effects. I believe that the majority understands that the most prudent course is to retain the republic. Its mistake is not to come out with sufficient resolution on this side. What is the use of unceasingly [233] belittling and threatening that which you do not want to change? For its part, the minority is seeking to seize power again by means which will create a very heavy burden for it. It raises hopes which it will not be able to satisfy.
In the meantime I do not despair as debate clarifies a great many questions. The main thing is to gain time.
Letter 163. Paris, March 1850. To Madame Cheuvreux↩
SourceLetter 163. Paris, March 1850. To Madame Cheuvreux (CH, pp. 59-62) [CW1, pp. 233-34].
TextHow can you hope to get better? Your cold is the prey of all those whom it pleases to make you speak in spite of it, and the number of these is great.
From Saturday up to yesterday morning, I have had just one coughing fit. It lasted twelve hours. I cannot understand how the fragile envelopes of breathing and thought do not burst under these violent and prolonged shocks. At least I have nothing to reproach myself for; I am meekly obeying my doctor. I have been kept in these last two days, but I will have to go to M. Say’s house this evening to join my coreligionists.313 It will be an effort. You would not believe how vividly my indisposition has brought out in me my old solitary and provincial inclinations. A peaceful room full of sunlight, a pen, a few books, a close friend,314 and warm affection; this is all I needed to live. Do I need more to die? This little was what I had in my village, and when the time comes in a great many years I will no longer find it.
I am sending Mlle Louise a few verses on women, which I liked. They are, however, by a poet who is an economist since he has been nicknamed the free trade rhymer.315 If I had the strength I would do a free translation of this piece in thirty pages of prose; this would do well in Guillaumin’s journal. Your sweet little tease (I do not forget that she possesses the art of teasing to a high degree, not only without wounding but almost caressing) does not greatly believe in poetry of production and she is perfectly right. It is what I ought to have called Social Poetry, which henceforth, I hope, will no longer take for the subject of its songs the destructive qualities of man, the exploits of war, carnage, the violation of divine laws, and the degradation of moral [234] dignity, but the good and evil in real life, the conflicts of thought, all forms of intellectual, productive, political, and religious combinations and affinities, and all the feelings that raise, improve, and glorify the human race. In this new epic, women will occupy a place worthy of them and not the one given to them in the ancient Iliad genre. Was their role really to be included in the booty?
In the initial phases of humanity, when force was the dominant social principle, the action of woman was wiped out. She had been successively beast of burden, slave, servant, and mere instrument of pleasure. When the principle of force gave way to that of public opinion and customs, she recovered her right to equality, influence, and power, and this is what the last line of the small item of verse I am sending Mlle Louise expresses very well.
You see how dangerous and indiscreet the letters of poor recluses are. Please forgive me this chatter; all I ask for in reply is reassurance as to the health of your daughter.
Letter 164. Paris, 22 March 1850. To M. Domenger↩
SourceLetter 164. Paris, 22 March 1850. To M. Domenger (OC7, pp. 407-8) [CW1, pp. 234-35].
TextI have reason to believe that the decree that authorizes the exchange of buildings for the hospice in Mugron will reach the prefecture of the Landes on the day this letter reaches you. I have been assured that the president of the Republic has signed it, that the secretariat of the ministry of the interior has given it authority, and that the office for hospices is ready to act. The rest is up to you.
It is already two or three days since I gave the order to my publisher to send you three copies of my debate with Proudhon and three of my speeches on education, which have degenerated into a pamphlet since my cold has become a loss of voice. It is certainly not that I wish to have you swallow these lucubrations three times, but I would like you to give a copy each from me to Félix and Justine.316
The newspapers save me the trouble of having to talk politics with you. I believe that reactionary blindness is our greatest danger at the moment; we are being led straight into a catastrophe. What occasion have they selected [235] to carry out experiments of this nature? One in which the people appear to be becoming disciplined and giving up illegal means. The great party said to be in favor of order has met one hundred and thirty thousand opponents at the elections and has carried only one hundred and twenty-five thousand followers. What will be the result of the proposed laws? It will be to make forty or fifty thousand people on the right go over to the left and thus give the left greater strength and a feeling of being right and to concentrate this strength on a lesser number of newspapers, which will result in giving it greater homogeneity, continuity, and strategy. This appears to me to be pure folly. I predicted this on the day Bordeaux sent us Thiers and Molé, that is to say, enemies of the Republic. Today we are in the position we were just before 1830 and 1848: the same slope, the same wagon, and the same coachmen. But then people’s minds could understand the content of a revolution; now, who can say what will succeed the Republic?
Letter 165. Paris, 11 Apr. 1850. To Madame Cheuvreux↩
SourceLetter 165. Paris, 11 Apr. 1850. To Madame Cheuvreux (CH, pp. 62-64; also extract in CW7, pp. 433-34) [CW1, pp. 235-36].
TextPlease forgive this address, which has escaped in a moment of effusion. We who suffer, like children, need indulgence, since the weaker the body, the more the spirit grows soft and it seems as though life, at its final as at its initial sunset, instills in the heart the need to seek attachments everywhere. These involuntary expressions of tenderness are the effect of all moments of decline, the end of the day, the end of the year, the basilica half-days, etc., etc. I experienced this yesterday in the shadowy alleys of the Tuileries. However, you must not become alarmed at this elegiac effusion. I am not at all Millevoie, and the leaves that have scarcely opened are not about to fall. In short, I am not worse, on the contrary, but only weaker and I can scarcely retreat in the face of an order that I take a holiday. What is in prospect is a solitude that is even more solitary; in the past I liked it, I knew how to people it with reading, work of a whimsical sort, and political dreams with interludes of cello playing. Temporarily, all these old friends have deserted me, even the faithful companion of isolation, meditation. This is not because my thought is slumbering, it has never been so active; at every instant it is grasping new harmonies317 and it seems as though the book of humanity is opening before [236] it. However, this is just one more torment since I cannot continue to transcribe the pages of this mysterious book onto a more palpable book published by Guillaumin. I am therefore chasing away these dear phantoms and, like the grumpy drum major who said, “I am handing in my resignation, let the government do what it can,” I too am resigning as an economist and let posterity get on with it if it can.
There it is, this is a lamentation to explain my tactlessness. It is said of misfortunes that they never come singly and this is truer still for actions lacking tact. How many words have I used to justify a single one which you would have pardoned without all these comments, since you would not hold it against me if, in this spate of idleness, my thoughts fly to the Hôtel Saint-Georges, where everyone is always so good to me. This dear house! It is now full of extremely serious preoccupations.318 The future of your Louise is perhaps being decided and consequently yours and that of M. Cheuvreux. The idea that so much peace, union, and happiness will be put to the test of a decisive revolution is truly frightening. But take courage, you have so many favorable opportunities!
Truly, my letters exceed by a hundred cubits those of M. B——. I beg you, madam, to accept my apologies for this. The most valid of these is that I scarcely dare to appear at your house this evening; is it not very selfish to seek distraction at a place to which you can bring only inopportune coughing fits? Of course, I do not say this about my friends; that would be ungrateful. But is society standing shoulder to shoulder with your benevolence?
devoted servant,
Mrs. Schwabe has just arrived without her children. I would like to introduce her to you.
Letter 166. Bordeaux, May 1850. To Madame Cheuvreux↩
SourceLetter 166. Bordeaux, May 1850. To Madame Cheuvreux (CH, pp. 65-69) [CW1, pp. 236-38].
TextHere I am in Bordeaux, plunged with delight in the atmosphere of southern France. Although I have left the bustle of Paris to find the peace of my family roof once more, I assure you that my thoughts throughout the journey [237] returned to the past more often than they envisaged the future. I therefore made haste to open the traveling case which I owe to the thoughtful consideration of M. Cheuvreux.
To be reduced to making my health the subject of the first chapter of my letters humiliates me somewhat but your kindness requires it. I can understand this: illnesses which involve coughs have the disadvantage of worrying our friends too greatly. They carry with them an intrusive bell, which unceasingly asks the question: which will gain the upper hand, the cold or the cold-ridden patient? Instead of tiring me, the trip made me feel better; it is true that for three days I had at my disposition an excellent remedy, silence, as it was only from Ruffec319 onward that I departed somewhat from your orders. My two companions, who took it in turn to move to the outside seat of the mail coach to savor the delights of a cigar, were curious enough to examine the travel document. It turned out that they were both keen followers of political economy, and when they resumed their seat, they made sure to let me know that they were familiar with my small works (since not even the title of the Harmonies had reached them), and so, taking advantage of the opportunity, the green grass, and probably prodded by some devil, I have clipped from this pasture (conversation) the width of my tongue.320 I had no right to do this since I had been forbidden to. But I yielded to it and my larynx did not fail to punish me. Do not scold me, madam; is silence not a regime that would suit you sometimes as much as it suits me and yet it is the last thing you do?
Let Mme Girard,321 who is now staying with you, assert her authority to sequester you; what good does it do you to remain in your room if you open its doors wide from ten o’clock in the morning? Could you not sacrifice a few moments of conversation to your health? However, you know that the sacrifice will fall on others and for this reason you do not wish to do this. As you can see, I know the old ploy, which is to scold first so as not to be scolded. After all, I can see that we all descend from our mother, Eve. Your daughter, herself, who is so reasonable, often allows herself to be caught in the trap of music. On the subject of music, it is a great mistake to think that a sound is stifled in the narrow space of a drawing room and a second; a note, or rather a cry from the heart which I heard on Saturday, has traveled [238] two hundred leagues with me. It is still vibrating in my ear, to say the very least.
Poor dear child, I think that I have guessed the thought with which she cloaked Pergolesi’s sad song; was this touching voice whose final accents seem to be lost in a tear not saying farewell to the illusions of youth, the fine dreams of an ideal happiness? Yes, it seemed as though your dear Louise felt herself carried along by circumstances to this fatal and solemn boundary, which separates the land of dreams from the world of reality. May real life bring her at least a calm and solid although slightly solemn happiness. What does she need for this? A good heart and common sense in the man who will be responsible for her destiny, that is the first condition; men whose fiery and artistic imagination casts a bright glow provide opportunities that are often dangerous, but we should not doubt that the noble aspirations of your child will find satisfaction one day.
How are you going to spend next month? Will you be staying in Paris? Will you be going to Auteuil, Saint-Germain, or London? I would more readily cast my vote for England, as it is there that you will find a pleasant blend of peace and amusement. To tell you the truth, my votes are not in good odor although their conscientious aim is to turn away the misfortunes that you fear; but let us not slide down the slope of politics. There is so much that is unforeseen in your resolutions that I am anxious to know what you will decide. I am afraid that I might learn that you are leaving for Moscow or Constantinople. Please, let me find you comfortably installed close to Paris. France is like Frenchwomen; she may have a few caprices but at the end of the day she is the most lovable, gracious, and finest woman in the world and so the most loved.
Farewell, mesdames, let these two months of absence not efface me from your memories; a further farewell to M. Cheuvreux and Mlle Louise.
Letter 167. Mugron, 19 May 1850. To M. Paillottet↩
SourceLetter 167. Mugron, 19 May 1850. To M. Paillottet (OC7, pp. 437-39) [CW1, pp. 238-40].
TextMy dear Paillottet, thank you for the interest you take in my health and in my journey. This was completed very well and with fewer incidents than you foresaw. There was no misunderstanding between my seat and me. On the way, from Tours to Bordeaux, I met some ardent enthusiasts for political [239] economy, which gave me pleasure but which forced me to speak rather too much. At Bordeaux I could not avoid anything worse than simple conversation since reaction has reached such excesses there that you needed to be made of marble to listen coolly to such blasphemy. All this meant that my larynx arrived here rather tired and the outpourings of friendship, as delightful as they were, are not conducive to relieving it. However, taking things as a whole, I am feeling a little better; I have more physical and intellectual strength. This is certainly a long bulletin on my health; your friendship demanded it, so lay the blame on that.
Yesterday I received Le Journal des économistes at the same time as your letter and read my article322 in it. I do not know how you managed it, but I found it impossible to identify the reworkings, so well did they blend in with the original. Might I just suggest that the dominant idea of this article has not been sufficiently highlighted. In spite of this, it should attract sympathetic minds, and if I had been in Paris I would have had five hundred copies printed separately to distribute them in the Assembly. As the article was not long, I consider that La Voix du peuple ought to print it in one of its Monday editions.323 If you hear anything about this, please let me know what is being said.
Here you are, responsible for my public and private affairs. In any case, please do not devote any other than your spare moments to this. You are very eager for my poor Harmonies to acquire a reputation. You will find this difficult. Only time will succeed in this, if they are worth time taking any trouble over them. I have obtained all that I could reasonably want, that is to say, that a few young men of goodwill study the book. This is enough for it not to fall down if it deserves to remain standing. M. de Fontenay will have done a great deal for me if he succeeds in obtaining the insertion of an account of it in La Revue des deux mondes.324 He will do even more in the future through the developments he will be able to make from the principal idea. There is an entire continent to clear. I am just a pioneer, starting out with instruments that are very imperfect. Improved cultivation will come later and I could not encourage de Fontenay too strongly to prepare himself for this. In the meantime, try to gain M. Buloz’s favor through our friend Michel Chevalier.
[240]I have probably forgotten a great many things, but they will return, because you will, I hope, be willing to write to me as often as possible. As for me, I will continue to provide you with my writing to decipher.
Letter 168. Mugron, 20 May 1850. To Madame Cheuvreux↩
SourceLetter 168. Mugron, 20 May 1850. To Madame Cheuvreux (CH, pp. 69-73) [CW1, pp. 240-41].
TextHow I thank you, madam, for thinking of the exile in the Landes in the middle of all your occupations; I would scarcely dare to ask you to continue this charitable work if I did not know how persevering in your goodness you are. Please be certain that there is no cordial nor chest remedy that can equal a few lines from Paris, and my health is more dependent on the postman than the pharmacist. It is true that the pen is a heavy and tiring machine; do not send me long letters but just a few words as often as possible, so that I know what is being done, thought, felt, and resolved at the Hôtel Saint-Georges.
Here, for example, is a change of situation that I cannot say is completely unexpected. A short note from M. Cheuvreux made me think it was coming. Poor M. D—— has been dismissed; I am sure that the heart of your Louise is greatly relieved and that is already a good thing. If my wishes were granted, she would go through life without all these trials.
After I wrote to you from Bordeaux, I made some visits. Fortunately several of my friends were absent, as I would not have been able to avoid talking and shouting a great deal. The ones I saw are in such a state of exaltation that calm conversation with them is not possible. These unfortunate people are convinced that for the last two years no one has dared open the shops in Paris. Having taken this idea to heart, they want to escape a situation like this at any cost and, to do this, they do not recoil even from the idea of a civil or foreign war. My département has seemed to be more moderate; our prefect325 has devoted himself unceasingly to moderating public opinion and he was therefore discharged from office on the day I passed through Mont-de-Marsan. We are being sent one who will be better able to arouse the people.
I arrived on Friday. When I saw the church spire of my village I was surprised not to experience the vivid emotions that the sight of it never failed [241] to arouse in me in the past. Are we like plants, and do the strings of the heart become woody with age, or else do I now have two fatherlands? I remember that Mlle Louise predicted that country life would have lost a great deal of its charms for me.
In a family council made up of my aunt, her chambermaid, and me (and I might say, epitomized by her chambermaid), it was decided that Mugron was as good as Les Eaux-Bonnes and that, in any case, it was not yet warm enough for the Pyrenees. I am therefore staying in the Landes until further instructions. This being decided, our native of the Basque country began to unpack my trunk; we soon saw her return to the drawing room totally upset and crying out, “Madamoiselle, M. Bastiat’s linen is completely perrec, perrec, perrec!” I am sorry that de Labadie is no longer with you to explain the strength of the word perrec, which combines the three notions of shreds, rags, and tatters. What profound scorn must the poor girl feel for Paris and its laundrywomen! It is enough to make one resign as a representative!
On Saturday I went to see the rest of my family in the country and came back tired. The coughing fits have come back so strongly that breathing could not cope; I thought of the description of whale fishing that your cousin gave you. “Everything is fine,” he said, “when you can give a little line to the wounded animal.” Coughing is equally not much of a problem as long as the lungs can give it a little line, after which the situation becomes uncomfortable.
Truly, madam, these details prove to you that I am yielding to the affection I feel for you and that I am counting on yours, as long as this does not, I beg you, go beyond what we call the trio.
The post has brought me a letter; how can I express my gratitude to you! Did you guess my wishes then? My aunt and I have started to have arguments about the north and the south; she praises the superiority of the south, doubtless in order to keep me here, while I claim that everything of any good comes from the north, even the sun (we are receiving light from the north today). It is sending me your good wishes, giving me some reassuring news about Mlle Louise and a few details on these pleasant scenes in the home which I have often witnessed and which I appreciate so much.
Letter 169. Mugron, 23 May 1850. To Madame Cheuvreux↩
SourceLetter 169. Mugron, 23 May 1850. To Madame Cheuvreux (CH, pp. 73-76) [CW1, pp. 242-43].
TextDear Mme Cheuvreux, my last letter had scarcely reached the other end of the long line that separates us, when along comes a second, ready to start out on the same road. Is there no indiscretion or unseemliness in this haste? I do not know, since I am not yet well versed in worldly manners, but please be indulgent; even more, please allow me to write to you as the whim takes me, without much regard for the dates and under the sway of impulse, the law that governs weak natures. If you knew how empty and dreary Mugron is, you would forgive me for always directing my gaze toward Paris. My poor aunt, who is more or less all my company, has aged a great deal and is losing her memory. All she has become is a heart; it seems as though her faculties of affection gain what the other faculties lose and I love her more than ever for this, but in her actual presence I cannot prevent my imagination from wandering; am I not ill, after all?
What good are illnesses if they do not give us the privilege of having our fantasies tolerated? This being so, it is agreed, I will attribute my indiscretion to my alleged sufferings; this is a trick that will always take in a woman’s heart, but this must not lead me to deceive you and present myself in the light of a dying man. This is my health report: my cough is less frequent and strength is returning. I can climb the stairs without becoming out of breath; I have found my voice again, which can hum a complete octave. The only thing that inconveniences me is a small pain in the larynx, but I do not think it will last four days. Lastly, although I am not yet ready to offer up my visage to the daunting and exacting gaze of Mlle Louise, I think I am looking better.
Here I am, at peace with my conscience and having obeyed your orders. With regard to Mlle Louise and the face in question, this dear child is always destined to be prey to a painful doubt for a young girl: not to know, in spite of her exquisite tact, if she is being sought for her own merits. This is one of the disadvantages of wealth, but what should reassure her is that if anyone were initially attracted by this wealth, very shortly she would be appreciated for herself. I have told you that goodness of the heart could replace all the other qualities, but I was mistaken; there is something that perhaps is worth even more and that is a sense of duty, a natural disposition to conform to the rule, which is something that goodness of heart does not always imply.
Whatever the number and merit of your friends, please keep me a place [243] in your affections; for my part, I can say this to you, to the extent that time and death are breaking the links around me, to the extent that I am losing the ability to take refuge in politics or study, your benevolence and that of your family are becoming increasingly necessary to me. This is the last light that shines on my life and this is doubtless why it is also the gentlest, purest, and most penetrating. After it will come the night, and let this at least be the night of the tomb.
Letter 170. Mugron, 27 May 1850. To Madame Cheuvreux↩
SourceLetter 170. Mugron, 27 May 1850. To Madame Cheuvreux (CH, pp. 76-80) [CW1, pp. 243-45].
TextI was confused about the calendar and now my exile has set things right; it is the 27th.
My holiday326 dates from the 12th, which means that a quarter of the two months has passed. After three times as long as this I will see Paris again.
I have done another calculation, madam, which is less attractive; your last letter was date-stamped the 17th. It is ten days since you wrote it and eight since I received it, eight days! This is nothing for you who spend them surrounded by your family or walking along the banks of the Seine or the Marne, chatting almost always delightfully with your daughter and husband! If at least I could be sure that no cold is stopping you from writing!
Yesterday, a telegraphed dispatch arrived announcing the vote on article 1;327 I thought that the telegraph might be better employed at least as far as I am concerned.
You have so many friends who, while recommending you to rest, pursue you from morning to night; how anxious I am to learn that you have put a few kilometers between their assiduity and your graciousness!
I have to admit, madam, that La Fontaine was right and that a good number of men are women when it comes to chattering; when I was coming to seek my health here I had not thought that I would find it totally impossible to avoid long conversations. The people of Mugron have nothing to do and so they do not take account of time, except for the times of lunch or dinner. They also resemble Pope a little; they are so many question marks. I [244] leave you to think of how many words you have to deliver. Through a clever maneuver, I lead them into the village gossips or on their pet subjects, their eccentric preoccupations. This gives me a small respite, but all in all, frankly I talk too much, and this has cost me a crisis, which fortunately had no aftermath. I am much better now and ready to leave for Les Eaux-Bonnes, when the sun is pleased to play its part, but it is lazy; we can see mountains covered with snow from here, which will not be habitable much before the month of June.
When I look at Mugron with what are now city dweller’s eyes, I believe I would be ashamed to show it to you; I would blush for it with its smoke-filled houses, its single, deserted road, its patriarchal furniture and neglected civil administration. Its only charm lies in a rustic naiveté, poverty that does not seek to hide itself, a nature that is always silent and peaceful, a total absence of rowdiness, all things that are appreciated and understood only through habit. Nevertheless, if in this uniform existence you place two objects of affection, I maintain that it becomes general happiness, just as when these objects of affection are absent it becomes general boredom and nothingness.328 There I found again the affection of Félix. It is impossible to say with what joy we started our interrupted conversations again and what pleasure is to be found in the communion of two spirits in harmony, two parallel minds born on the same day, cast in the same mold, fed on the same milk, and having the same opinion on all things, be they religion, philosophy, politics, or social economics. Everything is examined without our succeeding in finding on any subject the slightest difference of opinion between us. This identity of understanding is a great guarantee of certainty, especially since, only ever having just a few books, these are our own opinions which are in contact and not the opinion of a common master. However, in spite of the pleasantness of this company, there is an emptiness here; Félix and I are companions mainly through our minds, and something is lacking in feeling. Here I am, being totally egotistical. I am ashamed of myself, and as a punishment I will take leave of you until tomorrow.
28th. The mail has arrived empty-handed, for what is this pile of letters and journals? However, I recognize Paillottet’s writing; what has he got to say to me? He does not know you and will not have met M. Cheuvreux. I now regret not having dared to introduce him to you as I had the presentiment [245] that he would be punctual and that he would be good for me. Oh! I do hope that nothing dreadful has happened at the Hôtel Saint-Georges.
Farewell, mesdames, I feel that I am beginning to write in f minor. I had better stop while assuring you of my respectful and devoted attachment.
Letter 171. Mugron, 2 June 1850. To M. Paillottet↩
SourceLetter 171. Mugron, 2 June 1850. To M. Paillottet (OC7, p. 439) [CW1, p. 245].
Text. . . My cousin left for Paris yesterday.329 He will arrive at just about the same time as this letter and will hand you more than half of the article I am writing to complete the pamphlet.330 However, the article has taken on such dimensions that we can no longer use it for this purpose. There will be nearly fifty pages of my writing, that is to say, enough to make a new pamphlet if it so merits. This is a trial. You know that I have always had the desire to know what would happen if I refrained from rewriting. This has been written almost by improvisation. For this reason I am afraid that it will lack the detail required for a pamphlet. In a few days’ time I will send you the rest. When you have the entire article, you will be able to decide.
Letter 172. Mugron, 3 June 1850. To Horace Say↩
SourceLetter 172. Mugron, 3 June 1850. To Horace Say (OC7, pp. 384-85) [CW1, pp. 245-46].
TextWhy have you confined the excellent letter you sent to the latest issue of Le Journal des économistes within such narrow limits? With regard to the events and causes, it is full of wisdom and reveals a level of business experience which we are often reproached for lacking, with some justification. Articles like this always satisfy readers and put forward principles without mentioning them. You ought to develop the thought that you indicate only at the end of your letter. Yes, because of the sluggishness of financial markets, the prices of cereals are lower than they ought to be, and it is inevitable that they will soon exceed the normal level. This is the general law of supply and demand. Busier trading would have brought the two extremes closer [246] to the average. What is more, it would have lowered the average itself as it would have prevented waste and reckless exports. A work by you on this subject would be very useful from both the practical and the scientific points of view. From the latter aspect, it would dissipate the disastrous prejudices against middlemen and the cornering of goods. Please undertake this work.
Although I take little interest in politics, I have been able to convince myself, and painfully, that our great statesmen have succeeded only too well in the first part of their campaign plan, which is to spread disquiet in order to exploit it. Everywhere I have been I have seen a truly morbid terror reign. It seems that we are threatened with an agrarian law.331 People think Paris is sitting on a volcano. They go so far as to talk about an imminent conflict or foreign invasion, not for perverse reasons but out of fear of the worst. The Republic, republicans, and even those who merely submit are cursed and the lower classes are insulted by a flood of outrageous epithets. In short, I believe that everything is being thrown to the wind, even caution. Please God that this paroxysm passes quickly! Where will it lead?
Letter 173. Mugron, 11 June 1850. To Mlle Louise Cheuvreux↩
SourceLetter 173. Mugron, 11 June 1850. To Mlle Louise Cheuvreux (CH, pp. 80-84; also extract in CW7, p. 434) [CW1, pp. 246-48].
TextIt was my resolution, firmly taken, to let a full week go by before I wrote to you, for one may well count on the benevolence of friendship, but it should not be abused. However, I think that my haste may be excused, for you tell me that your mother is unwell and I am at the end of the world; I cannot send my rustic maid from the Franche-Comté to the Hôtel Saint-Georges to ask for news.
Here you are at last, finally settled in Fontainebleau, far from any noise. We must hope that a week of retirement and silence will restore all those with damaged health; it was yesterday that I learned of your departure from M. Say. This news had a strange effect on me at first; it was as though a hundred leagues more had come to separate us. This is because, since I have never been to Fontainebleau, my imagination was turned upside down.
I cannot thank you enough, dear demoiselle, for your most affectionate [247] words; you have sent me words that are so sweet that they resemble recollections of harmonies or perfumes which the senses sometimes suddenly remember, mingled with a few childhood memories.
But I sense from your letter that you have not yet recovered your gaiety; let us see if I am mistaken. You have such noble self-control that, when it is necessary, you overcome your emotions, but you lack the carefree spirit that makes people forget them. Your nature will always arouse sympathy and admiration, but it will find it hard in this world to come upon the calm which gives rise to long-lasting gaiety. What do you think of my efforts in psychology? Whether or not they are accurate, I will give them to you; please do not try to change yourself, you will gain nothing from this.
I am leaving tomorrow for Les Eaux-Bonnes; this is just another excuse for this letter. The name Eaux-Bonnes reminds me of the dreadful risk I am running; who knows whether I will not leave it just at the time you arrive? Who knows whether your post chaise will not pass the enormous vehicle which will carry me to Paris in the other direction? You must allow that it would be a big disappointment for me.
Oh, come to the Pyrenees! Come right now to breathe this pure and always fragrant air. Come and enjoy this peaceful corner of nature, such an impressive place. There you will forget the troubles of this winter and politics. There you will avoid the heat of the summer. Every day you will vary your walks and excursions; you will gaze on new marvels and combine strength, health, and moral adaptability with physical exercise. You will have the joy of seeing your father lose sight of all his uncertainties which are now an inseparable part of life in Paris. Take the decision, then. I will take you to Biarritz and Saint-Sebastian in the Basque country; compare the journeys; is this not better than Belgium and Holland?
One writer has said that there are just two types of people in the world, “those that drink beer and those that drink wine.” If you want to know how you earn money, go and see the people who drink beer; if you prefer to see how they laugh, sing, and dance, come and visit the people who drink wine.
I had adopted a few illusions about the effect of the air of my native region; although I am coughing less frequently, I have a slight fever every evening. However, fever and Les Eaux-Bonnes have never been compatible.
I would also like to be cured of a bout of low spirits which I cannot explain. Where has it come from? Is it the result of the doleful changes that Mugron has undergone in the last few years? Is it because ideas fly from me [248] without my having the strength to write them down on paper, to the great detriment of posterity? Is it because . . . is it because? But if I knew, this sadness would have a cause and it does not . . . I will stop there, before starting the boring jeremiads of splenetic dispositions, misunderstood souls or blasé ones, geniuses without recognition or those seeking soul mates, a cursed race that I detest. I prefer that people simply tell me, like Bazile:332 It is your fever, buona sera.
Farewell; tell your father and mother how much I appreciate their remembering me. Farewell; when will I see you all again? Farewell; I repeat this word which is never neutral, since it is the most painful or the most pleasant that can ever cross our lips.
Please be assured, dear demoiselle, of the tender attachment of your devoted servant,
Letter 174. Eaux-Bonnes, 15 June 1850. To Madame Cheuvreux↩
SourceLetter 174. Eaux-Bonnes, 15 June 1850. To Madame Cheuvreux (CH, pp. 85-89) [CW1, pp. 248-50].
TextHaving arrived yesterday evening in Les Eaux-Bonnes, I went this morning to the post office. Reason told me there would be nothing there, but I had the feeling there would be something; in fact, reason was wrong as often happens, in spite of its name.
Thus, thanks to your goodness, I feel a fundamental joy that had deserted me, and our delightful valley will lose nothing by my looking upon it in this light.
On Thursday I went to Pau at around seven o’clock. I was in the rue du Collège where I think I have identified the house where you lived. How joyful and impressive this view of Pau is; light clouds hid the mountain and you could enjoy the foreground only: the Gave, Gélos, Bizanos,333 and the slopes and villas of Jurançon.
[249]If the star under which I was born had created me a poet instead of making me a cold economist, I would send you verses, as there was in me a little of Lamartine; have not you and your Louise distributed a great many smiles over this landscape and does it not appear to have kept the memory of these? But poetry enjoys a degree of license forbidden to prose.
In Les Eaux-Bonnes, I have taken a room at the junction of three roads, which is well ventilated and full of sunlight and with an admirable view. The first night, I slept for twelve hours to the murmur of the Valentin.334 When I arose I already felt in a better mood when I received the wonderful surprise of your letter. I took it with me on my morning walk and now I feel better in both mind and body than I have felt for a long time. This should be a warning to my friends; you should never take too much notice of the lamentations of a man under stress.
Mesdames, you scold me for having been unfaithful to my beloved Harmonies, but have they not set me a bad example? What evidence have they given me of their affection? For the last six months the only word they have addressed to me has been through the good offices of M. Paillottet; seriously, I can see that this book, if ever it is to be useful, will have its use only in the far distant future, and perhaps even this assessment is just a refuge for my amour propre. As the opportunity has arisen to write a small pamphlet335 that is more topical, I have taken it and have a second in my head: I would like to paint the moral state of the French nation as I see it; analyze and dissect the highly varied elements which make up our two major political movements, socialism and reaction; distinguish what is justifiable and reasonable in them from what is false, exaggerated, selfish, and reckless; and end it with a solution or view of what should be done or rather undone.
The elections will not take place until 1854; let us not look so far into the future. I know in what state of mind the electors nominated me and I have never strayed from this path. They have changed and that is their right. However, I am persuaded that they have been wrong to change. It had been agreed that the republican form of government, a form that I could personally live without if necessary, would be tried honestly, and perhaps this would not have stood up to the test, however sincere. In this case it would naturally have fallen under the weight of public opinion: instead [250] of this, people are trying to overthrow it by means of plots, lies, injustice, organized and calculated terror, and discredit. They are preventing it from working and imputing to it things for which it is not responsible, and in doing this they are acting contrary to agreements without having anything to replace it.
Would it not be singular if, after so many projects and hesitations, you quite simply returned to La Jonchère? This countryside has been somewhat denigrated; ask the gardener for her opinion. When all is said and done, you have spent a good summer there. I will go to see you as often as possible as M. Piscatore wishes to let me have Le Butard again.
Your next letter will tell me what has been decided. Do you know that, from this point of view, your letters are fearful? The previous one never lets me guess what the following will say; four days in Fontainebleau are all well and good, but I am afraid that you will end up writing to me from Rome or Spa.
Mlle Louise will have returned in time to enjoy the young cousins from whom she is unfortunately growing apart; why therefore does she not want to make sure of a closer, more direct, and permanent happiness in this connection? She must sometimes ask herself this simple question: what would my father and mother do if they did not have me?
In bidding you farewell, it is with great joy that I think this is not a farewell from a far distance or a farewell for several months; I will be in Paris when the holiday is over.
Letter 175. Eaux-Bonnes, 23 June 1850. To M. Paillottet↩
SourceLetter 175. Eaux-Bonnes, 23 June 1850. To M. Paillottet (OC7, p. 440) [CW1, pp. 250-51].
Text. . . Here I am at the so-called source of health. I am doing things conscientiously, which means that I am doing very little work. As I am not inclined to start further work on the Harmonies, I am finishing the pamphlet What Is Seen and What Is Not Seen and will probably be able to send it to you in a few days’ time.
Thank you for the article you had printed in L’Ordre. It has just been reprinted in the newspapers in my département. This is probably all that will ever be known about my book.
[251]Another report has appeared in Le Journal des économistes.336 I cannot understand how M. Clément has thought it apposite to criticize my future chapter on population. What has been printed offers enough to work on without dealing in advance with what has not yet appeared. It is true that I have announced that I will be trying to prove the following thesis: The density of the population is equivalent to an increasing production capacity. M. Clément will have to agree with this or deny the virtues of trade and the sharing of work.
The criticism he has made of the chapter on landed property makes me think that it might be useful to reprint as a pamphlet the four or five articles which have appeared in the Débats337 entitled “Property and Plunder.” Besides, this would be another weapon in the armory of our manifesto, which those who do not have the patience to read the Harmonies will need.
Please remember me to MM Quijano and de Fontenay.
Letter 176. Eaux-Bonnes, 23 June 1850. To Madame Cheuvreux↩
SourceLetter 176. Eaux-Bonnes, 23 June 1850. To Madame Cheuvreux (CH, pp. 89-91) [CW1, pp. 251-52].
TextYou have just joined forces with Mlle Louise, madam, to make me endure absence. In the midst of the problems of setting up home, you have found the time to write to me and, what is more, you give me the presentiment that those who are absent will not lose out to your leisure activities at La Jonchère. Oh, how good women’s hearts are! I know full well that I owe a great deal to my sickly health; do you remember that I once said that the moments I remembered with the greatest pleasure were those of suffering, because of the touching care it brought me from my good aunt. Truly, mesdames, you are such as could make one want to be ill, but I must not play the hypocrite here and, even if it delays your next letter by twenty-four hours, I really must admit that I am better. I take the waters cautiously, although without the assistance of a doctor, for what is their use? Spa doctors are like confessors; they always have the same remedy.
[252]However, do not take advantage of my confession, and if you do not write to me on account of my health, write to me to tell me about your family.
There you are at La Jonchère. Since you are boasting of being properly countrified, try to get up earlier in the morning and gain a few extra minutes each day. Go for many walks, read a little, the newspapers as little as possible, and do not attract to yourselves more than a small number of friends at a time. This is the result of my consultation; it snaps its fingers at M. Chaumel’s as he has lost my confidence.
Les Eaux-Bonnes is beginning to be very crowded; my dinner table is, however, not as well composed as on my last journey. It may be that the effort to avoid politics cools the conversation. Today, two people arrived from Le Havre who quizzed me on the chapter about my solution to the social problem.338 I took advantage of the opportunity to put abroad some detailed publicity, reciting almost an entire pamphlet, which I wrote in Mugron. It was very strange! Everyone kept saying: “That’s right! That’s right!” until I spoke of applications; there, I was on my own. It is to be deplored that the classes who make the laws are unwilling to be just whatever that might cost, since, if this were so, each person would want to make the law, whether he be a manufacturer, farmer, shipowner, family man, taxpayer, artist, or worker. In the event, each person is a socialist as far as he himself is concerned and claims a share in the injustice, after which people are quite willing to grant others state charity, and this is a second form of injustice. As long as the state is regarded in this way as a source of favors, our history will be seen as having only two phases, the periods of conflict as to who will take control of the state and the periods of truce, which will be the transitory reign of a triumphant oppression, the harbinger of a fresh conflict. But may God forgive me, I am thinking myself still at the dinner table; I will go to bed, as it is better to put down the pen than use it too much.
Letter 177. Eaux-Bonnes, 24 June 1850. To Madame Cheuvreux↩
SourceLetter 177. Eaux-Bonnes, 24 June 1850. To Madame Cheuvreux (CH, pp. 92-94) [CW1, pp. 253-54].
TextYou have seen the Pyrenees in Paris; I for my part am finding Paris in the Pyrenees. There are only beautiful women, fine outfits, countesses, and marquises; this morning some children chased one of their comrades away because he had come dressed in twill: you are not smart enough! These were the expressions used. His father, a doctor, was mortified by this.
Recently, I have been to the village of Aas; you know, you have to go down into the valley and up on the other side. I visited the cemetery; it is full of monuments: young men and women who came to Les Eaux-Bonnes to seek an end to their suffering and succeeded far beyond their hopes. Should we envy their fate? Oh, no. Not yet. I met two women and came back with them. The daughter was weak, slim, thoughtful, and fearful of the ride she was taking on horseback; her mother was in good health and indefatigable. Add to this the purest of language, the most distinguished manners, and you will understand that this necessarily reminded me of an outing at La Jonchère.
Yesterday, Sunday, we had a few joys, but alas, all the local color is leaving; the mountain folk were making their rounds to the sound of violins and Spaniards danced the fandango in smocks: tambourines, castanets, striped jackets, and mantillas, what will become of you? Violins are invading everywhere, and as for smocks, there are no more Pyrenees.339 Oh, the smock will become the symbol of the next century! But after all, is not what appears to us to be a profanation in fact progress? It is funny that we, civilized people, so proud of our arts and outfits, should want people elsewhere to preserve knickerbockers and the Provençal flute forever and ever, to entertain the tourists.
Did I read correctly, mesdames? You tell me that I must not return to Paris until I am cured, that I must spend the winter in Mugron! You must find my absence very pleasant then!
Ah, there is no point in your saying this. I take your words as evidence of interest since I am the most obliging interpreter in the world. I am therefore hoping to return to Paris on 20 July, unless the Chamber is prorogued; this will be an extension of a week to my holiday. It would be amusing if the [254] Assembly inflicted a penalty on me for having returned too late while you scolded me for returning too soon.
I am anxious to receive a letter from La Jonchère to know whether M. Cheuvreux has decided to take a little rest or if you were pursuing your projects alone? Solitude for three! That is a universe; and is not Croissy close at hand, and the Renouard and Say families and Mme Freppa? In all conscience, I cannot pity you your fate!
Goodness, how I am overusing M. Cheuvreux’s fine writing desk; it has solved the problem of pens for me and I have never written such incommensurate letters!
Please persuade Mlle Louise to pardon me and please call what others might call indiscretion, friendship.
Letter 178. Eaux-Bonnes, 28 June 1850. To M. Paillottet↩
SourceLetter 178. Eaux-Bonnes, 28 June 1850. To M. Paillottet (OC7, p. 441) [CW1, pp. 254-55].
Text. . . Here is the first part of the pamphlet entitled The Law.340 I have added nothing to it. I suppose that the other part is on the way. This is very serious for a pamphlet. However, the experience has taught me that what you count on the least is sometimes the most successful and that the mind is harmful to the idea.
I wanted to send you What Is Seen341 but I do not think it is very successful. I ought to have adopted a lighter tone instead of resorting to a serious tone and, what is worse, a geometric form.342
I will be delighted to receive Michel Chevalier’s work.343 While he does me the honor of borrowing a few points of view, he provides me with a great [255] many facts and examples; this is free trade. Our manifesto is in sore need of his pen.
Letter 179. Eaux-Bonnes, 2 July 1850. To M. Paillottet↩
SourceLetter 179. Eaux-Bonnes, 2 July 1850. To M. Paillottet (OC7, pp. 441-42) [CW1, p. 255].
Text. . . Your comment on The Law is accurate. I have not proved that the selfishness that distorts the law is unintelligent. However, there is now no time to do this. Besides, this proof is shown by all of the preceding pamphlets and will be shown even better by those that follow. People will see that the severe hand of providential justice will sooner or later weigh cruelly on these demonstrations of selfishness. I very much fear that the middle classes of our time will pay the penalty. This is a lesson that has not spared kings, priests, the various forms of aristocracy, the Romans, members of the National Convention, or Napoléon.
I would write to M. de Fontenay to thank him for his kind letter if he had not told me he was leaving for the country. This colleague is made of stern stuff. What is more, the young people of our time have a flexible style which they will use to surpass us. This is how the world goes and should go. I am happy that this is so. What good would it do for an author to make a discovery if others did not come along to fertilize it, correct it if necessary, and above all spread it widely?
I intend to leave here on the 8th and to arrive in Paris around the 20th. I will subject my health to your ruling.
Letter 180. Eaux-Bonnes, 3 July 1850. To M. de Fontenay↩
SourceLetter 180. Eaux-Bonnes, 3 July 1850. To M. de Fontenay (OC1, pp. 204-5) [CW1, pp. 255-56].
Text. . . Perhaps you are too ardently in favor of the Harmonies in the face of opposition from Le Journal des économistes. Middle-aged men do not easily abandon well-entrenched and long-held ideas. For this reason, it is not to them but to the younger generation that I have addressed and submitted my book. People will end up acknowledging that value can never lie in materials and the forces of nature. From this can be drawn the absolutely free characteristic of gifts from God in all their forms and in all human transactions.
[256]This leads to the mutual nature of services and the absence of any reason for men to be jealous of and hate each other. This theory should bring all the schools together on a common ground. Since I live with this conviction, I am waiting patiently, since the older I become the clearer I perceive the slowness of human evolution.
However, I do not conceal a personal wish. Yes, I would like this theory to attract enough followers in my lifetime (even if only two or three) for me to be assured before dying that it will not be abandoned if it is true. Let my book generate just one other and I will be satisfied. This is why I cannot encourage you too strongly to concentrate your thinking on capital, which is a huge subject and may well be the cornerstone of political economy. I have no more than touched upon it; you will go further than I and will correct me if need be. Do not fear that I will take offence. The economic horizons are unlimited: to see new ones makes me happy, whether it was I that discovered them or someone else that is showing them to me.
. . . Yes, you are right. There is a complete avenue of science to be explored with regard to the dread word consumption; this is what I will be establishing at the start of my second volume. As for population, it is incomprehensible that M. Clément can attack me on a subject that I have not yet tackled! And basically, to deny the axiom that the density of the population is an advantage for production is to deny all the power of trade and the division of labor.345 What is more, it is to deny facts that are blindingly obvious. Doubtless, populations naturally organize themselves so as to produce as much as possible, and to do this they divide or merge as circumstances require; they obey a double tendency to spread out and to concentrate, but the more they increase, ceteris paribus, that is to say, all virtues, forward planning, and dignity being equal, the more the services divide and are mutually rendered and the more each person is rewarded for the least of his particular qualities, etc. . . .
Letter 181. Eaux-Bonnes, 4 July 1850. To Madame Cheuvreux↩
SourceLetter 181. Eaux-Bonnes, 4 July 1850. To Madame Cheuvreux (CH, pp. 95-100) [CW1, pp. 257-59].
TextAt last I have a letter from La Jonchère, my dear madam, and I am now certain that you are somewhere definite. What is more, you tell me that your first few days in the country have been happy, that you are taking long walks in the woods, and that you are having some lovely visits, since today the Say family have come to call.
Just as I have your first letter from La Jonchère, this is, I think, my last from Les Eaux-Bonnes. I will be leaving on the 8th, unless in the meantime I learn that the Assembly is going on holiday. However, if there is any doubt, I will have to leave. It is not that I have been fundamentally cured; while my health has improved, my larynx stubbornly continues to suffer.
It is clear that in Les Eaux-Bonnes this year, ridicule of the gentlefolk has risen to such a height that it is ruining everything. People adopt accents, figures, and manners worthy of Molière’s pen; the only person who continues to be unaffected here is Mme de Latour-Maubourg. If she is giving a lesson to the précieuses around her, this lesson has gone unnoticed. Of course, I do not frequent these circles overly much, since I have noticed that they welcome only those people who give them the opportunity of saying, “I was with M. de ——, we were on a walk with the Count of ——, etc.” My company is made up of a very ill lieutenant, a young Spaniard who is at death’s door, and a Parisian aged twenty-three, as ill as the two others.
I am surprised that this time of exile, whose end I have desired so ardently, has seemed so short: “Everything that has to end passes quickly.” This saying is as true as it is sad. In fact, the provincial habits I rediscovered have had a certain charm. Independence, free time, work, and leisure at will, reading at odd times, thoughts that wander on impulse, solitary walks, scenery that is admirable, peace and quiet, this is what you can find in our mountains, and the power of a piece of music in b, a single piece in b, would make it a paradise. What else would you need, other than a drop of the ambrosia that perfumes all the details of life that is called friendship?
You have seen the success and ovations given to MM Scribe and Halévy in the newspapers. This will have pleased you and doubtless made you regret that you were not there to witness it. Mlle Louise had the feeling that pleasant amusements were awaiting her in London. We should congratulate ourselves on everything that brings peoples together and unites them: in this respect your friends’ attempt will bear good fruit. It will increasingly [258] encourage our neighbors to study French. Reciprocity would be very useful, for we have a lot to learn from the other side of the Channel. I was happy to see that Richard Cobden, in difficult circumstances which must have been a cruel test for him, neither slipped nor stumbled.346 He has remained true to himself, but these are things that our newspapers do not notice.
Have you read the article by M. de Broglie on Chateaubriand in La Revue des deux mondes? I was not displeased to see this chastisement inflicted on vanity that is inflated to a childish level. With such exclusive selfishness of heart one can be a great writer, but do you believe one can be a great man? For my part, I detest these blind and proud men who spend their lives striking postures and attitudes, who put humanity on one side of the scales with themselves on the other and believe they win the day. I regret that M. de Broglie did not seek to appreciate the value of Chateaubriand’s philosophy; he would have found that it was very slight. From the eleventh volume of his memoirs, I copied out this paradox, “The perception of good and evil is obscured in proportion to the enlightenment of the mind; the conscience shrivels in proportion to the expansion of ideas.”
If this is so, the human race is condemned to fatal and irremediable degradation; the man who has written these lines is a soul condemned.
5 July
Here is another letter from La Jonchère, but one that does not confirm its predecessor. In the meantime, I have had news from M. Say and I thought that you were all in good health. I see that sleep is eluding you, that Mlle Louise is fatigued by the heat, and that M. Cheuvreux himself is unwell! What a well-organized trio! What upsets me considerably is that I will have no news of you from now until 20 July, unless you are good enough to write to me once more, if only a note to Mugron. I am definitely leaving Les Eaux-Bonnes repeating the chorus of our ballad:
- Aigues caoutes, aigues rèdes,
- Lou mein maou n’es pot guari.347
“Hot water, cold water, nothing can cure my ill.” It is true that the good cavalier was doubtless speaking of some strange wound on which all the springs [259] of the Pyrenees had no effect. I was better placed to count on them for my larynx; it resisted them; what should I do?
I will probably have some strong battles to confront at Mugron to get any holiday there as well. But I will resist these assaults as I cannot allow myself not to be present at the Assembly.
Do you wish to visit Les Cormiers?348 It is a place that is very peaceful, cool, and solitary. If I spend two months there, I will perhaps reach the stage of starting out in the world of the Harmonies. I have not done anything about them here; my publisher is pressing me and I tell him that the coolness of the public is cooling my ardor. In this respect, I am committing the sin of lying. Authors do not lose courage over so little. In these types of mis-adventures, the angel or demon of pride calls out to them, “It is the public which is mistaken, it is too scatterbrained to read you or too backward to understand you.” “That is all very well,” I say to my angel, “but in this case I can dispense with working for it.” “It will appreciate you in a century and that is enough for fame,” replies the stubborn tempter.349
Fame! Heaven is my witness that I did not aspire to it and if one of its stray rays, ever so weak, should fall on this book, I would be delighted for the advancement of the cause and also a little for the satisfaction of my friends; let them love me without this and I will not give it another thought.
Letter 182. Eaux-Bonnes, 4 July 1850. To Horace Say↩
SourceLetter 182. Eaux-Bonnes, 4 July 1850. To Horace Say (OC1, pp. 200-1) [CW1, pp. 259-60].
Text. . . I have read the article by M. Clément on the Harmonies. If I thought a controversy useful, I would accept it, but who would read it? M. Clément appears to think that it is a lack of respect for our masters to go deeper into problems that they have scarcely touched on, because at the time they were writing these problems had not been raised. According to him, they have [260] said everything, seen everything, and have left us nothing to do. This is not my opinion and it was certainly not theirs. Between the first and last pages of your father there is too significant a degree of progress for him not to have seen for himself that he had not reached the horizon and that no one would ever reach it. For me, even if the Harmonies were ever completed to my satisfaction (which they will not be), I would still see them only as a point from which our successors will draw a whole new world. How can we make progress when we are obliged to devote three-quarters of our time to elucidating the simplest questions for a misguided public?
. . . If you write the article on insurance for Guillaumin’s Dictionary,350 please make it clear that it is not only the companies that join together in association but also and above all those who are insured. It is they that form, without suspecting this, an association which is no less real for being voluntary and something one enters and leaves at will.
Letter 183. Mugron, July 1850. To Madame Cheuvreux↩
SourceLetter 183. Mugron, July 1850. To Madame Cheuvreux (OC7, pp. 435-36) [CW1, p. 260].
Text. . . You had just lost a childhood friend. In these circumstances, your first feeling is one of regret. You then cast a worried look around you and end up looking introspectively into yourself. The mind asks questions of the great unknown, and, as it receives no reply, it becomes terrified. This is because there is a mystery that is not accessible to the mind, but only to the heart. Can you doubt on a tomb? . . .
Letter 184. Mugron, 14 July 1850. To M. Cheuvreux↩
SourceLetter 184. Mugron, 14 July 1850. To M. Cheuvreux (CH, pp. 100-103; also extract in CW7, pp. 435-36) [CW1, pp. 260-62].
TextYour kind letter, my dear M. Cheuvreux, has just been handed to me. A few hours later and it would have had to retrace its journey to Paris in the same mail coach as the person to which it was addressed, since I am preparing [261] to leave tomorrow. I am doubtless making a mistake; this must be so since everyone says so and I have already endured countless verbal and epistolary assaults. I do not claim to be right in the face of everyone, although Mme Cheuvreux is calling me a sophist in advance. The truth is that I could scarcely excuse myself from putting in an appearance in the Chamber before the holidays; after this I admit that I am yielding a bit to caprice. For some time now, I have had a very local pain in the larynx that is unbearable because it is continuous. I think I will find relief by changing my environment.
Mlle Louise may fear that her letter has gone astray in the Pyrenees. Please reassure her, it was given to me here on my arrival. Truly, it would have been a great privation for me, since your dear child has the art (if art it is) of infusing her letters with her soul and goodness. She spoke to me of the impression English literature had on her and then deplores the loss of belief that characterizes ours.
I was getting ready to write an essay in reply, on this text, but I will spare her this. Since I am leaving tomorrow, I will take my revenge face to face.
You are quite right, my dear M. Cheuvreux, to encourage me to continue these elusive Harmonies. I too feel that I have the duty to complete them, and I will endeavor to devote my holidays to them.
The field is so vast that it terrifies me.
When I said that the laws of political economy are harmonious, I did not mean only that they harmonize with each other, but also with the laws of politics, the moral laws, and even those of religion (granted the making of generalizations as to the particular rules of each cult). If this were not so, what good would it be for a set of ideas to promote harmony if this set clashed with other sets no less essential?
I do not know whether I am deluding myself, but it seems to me that it is through this and only through this that the lively and fertile beliefs whose loss Mlle Louise deplores will be regenerated within the human race. Extinguished beliefs will no longer be revived, and the efforts made in times of terror and danger to give society this anchor are more meritorious than effective. I believe that an inevitable ordeal is lying in wait for Catholicism. Acquiescence in form alone, which each person requires from others and from which acquiescence each person allows himself dispensation, cannot be a permanent state of affairs.
The plan I had conceived required political harmony to be first of all brought down to rigorous certainty, since this is its basis. It appears that I [262] have not established this certainty adequately, since it has not struck anyone, even professional economists. Perhaps the second volume will provide more consistency for the first. I am subjecting myself to your and Mme Cheuvreux’s advice to stop me in the future from doing anything else.
This letter will precede me by so little that I find it almost incorrect to send it to you. However, I did not want to leave Mugron without thanking you for all the kindnesses that you and your family have shown me during this absence.
Your devoted servant,
Letter 185. Paris, 3 Aug. 1850. To Richard Cobden↩
SourceLetter 185. Paris, 3 Aug. 1850. To Richard Cobden (OC1, pp. 185-86) [CW1, pp. 262-63].
TextMy dear Cobden, since the departure of our dear friends, the Schwabes, I no longer have the opportunity of talking about you. However, I have not altogether lost sight of you, and recently I noted with joy, but no surprise, that you had disassociated yourself from your friends in order to remain faithful to your convictions. I am referring to the vote on Palmerston.351 The upsurge in British pride that characterized this episode is not in step with the natural sequence of events and the progress of public reasoning in England. You were right to resist this. It is this perfect coherence of all of your actions and votes that will in the future give your name and example an unassailable authority.
I have spent some time in my native region to see whether my poor lungs, which serve me in a highly unreliable fashion, might be cured. I have returned somewhat better but suffering from an ailment of my larynx coupled with a total loss of my voice. My doctor has ordered me to keep total silence. For this reason, I am going to spend two months in the country not far from Paris. There, I will endeavor to write the second volume of the Economic Harmonies. The first went almost unnoticed in scholarly circles. I would not be an author if I accepted this judgment. I call on the future to correct this [263] for I am convinced that this book contains an important idea, a core concept. Time will prove me right.
Today, I wanted to say a few words in support of our colleague in political economy, A. Scialoja. You know that he was a professor in Turin. Events caused him to become a minister of trade in Naples for a few days. This was in the days of the constitution. When absolute authority was reinstated, Scialoja, thinking that a ministry of trade was not sufficiently political to compromise its holder, did not wish to flee. He was to regret this. He was arrested and imprisoned. For ten months now, he has been clamoring to be released or put on trial.
I have taken a few steps here to arouse the interest of our diplomatic service. (Let diplomacy be good for something for once in its life!) I received the reply that our embassy would do what it could but that it stood little chance. It is said that Scialoja would be much better protected by English goodwill. Could you therefore please obtain support for him from your ambassador in Naples?
Scialoja is asking to be put on trial! I would much prefer for him to be given a passport for London or Paris, since I do not think that a Neapolitan trial would guarantee much equity, even for the most shining innocence.
Will you be going to Frankfurt?352 For my part, it is no good my attending the Congress, since I have become dumb, but I would be very pleased to see you when you pass through Paris and my apartment at 3, rue d’Alger is at your disposal.
Letter 186. Paris, 17 Aug. 1850. To Richard Cobden↩
SourceLetter 186. Paris, 17 Aug. 1850. To Richard Cobden (OC, pp. 187-881; also CH, pp. 104-107) [CW1, pp. 263-64].
TextMy dear Cobden, as you know about my poor health, you will not have been surprised at my absence from the Congress in Frankfurt, especially since you will not have attributed it to a lack of zeal. Apart from the pleasure of being one of your colleagues in this noble enterprise, it would have been very pleasant for me to meet in Frankfurt friends that I rarely have the occasion to see and to meet a host of distinguished men from these two excellent races, the Anglo-Saxon and the Germanic. In a word, I have been deprived of this consolation like many others. For a long time now, mother nature has [264] gradually been making me accustomed to all sorts of deprivations, as though to familiarize me with the final one which includes them all.
As I have had no news of you, for a time I did not know whether you were going to the Congress; since it did not occur to me that you could go from England to Frankfurt without going through Paris, and since I did not think either that you would pass through our capital city without letting me know, I concluded that you yourself had been prevented from doing so. I have been told that this is not so and I am happy for the Congress. Try to deal a mighty blow to this monster of war, an ogre that is almost as voracious when digesting as it is when eating, for I truly believe that arms cause almost as much harm to nations as war itself. What is more, they hinder good. For my part, I constantly return to what seems to me to be as clear as daylight: as long as disarmament prevents France from restructuring her finances, reforming her taxes, and satisfying the just hopes of the workers, she will continue to be a nation in convulsion . . . and God alone knows what the consequences will be.
A man whom I would have liked to see because of all the interest he has shown in me is M. Prince Smith, from Berlin. If he is at the Congress, please convey to him my great desire to meet him personally. How happy I would be, my dear Cobden, if you decided to pass through Paris and if you persuaded M. Prince Smith to accompany you on this excursion! But I do not dare to formulate such hopes. Good fortune does not seem to be made for me. For a long time now, I have been endeavoring to take advantage of good things when they come but not to expect them.
I consider that a short stay in Paris must be of interest to politicians and economists. Come and see the profound peace we are enjoying here, whatever the newspapers might say. Certainly, internal and external peace in the face of such a tumultuous past and such an uncertain future is a phenomenon that shows great progress in public common sense. Since France has survived this, it will survive a great many other difficulties.
Say what you like, the human mind is making progress, interests in the best sense of the word are prevailing, disagreements are less profound, and long-lasting harmony is establishing itself.
Letter 187. Paris, 17 Aug. 1850. To the President of the Congrès de la Paix↩
SourceLetter 187. Paris, 17 Aug. 1850. To the President of the Congrès de la Paix (OC1, pp. 197-200) [CW1, pp. 265-66].
TextAn ailment of the larynx would not have been enough to keep me away from the Congress, especially as my role would rather have been to listen than to speak, if I were not undergoing a treatment that obliges me to remain in Paris. Please convey my regret to your colleagues. Much taken as I am with all that is grand and new in the spectacle of men of all races and languages who have come from all corners of the globe to work together for the triumph of universal peace, I would have joined my efforts to yours in favor of such a holy cause with zeal and enthusiasm.
In truth, universal peace is considered in many places an illusion, and as a result the Congress is considered to be an honorable effort but with no far-reaching effect. Perhaps this feeling is more prevalent in France than elsewhere because this is a country in which people are more weary of utopias and where ridicule is the more to be feared.
For this reason, if it had been given to me to speak at the Congress, I would have concentrated on correcting such a false assessment.
There was doubtless a time when a peace congress would have had no chance of success. When men made war to acquire loot, land, or slaves, it would have been difficult to stop them by moral or economic considerations. Even various forms of religion have failed to do this.
But today, two circumstances have changed the question radically.
The first is that wars no longer have vested interest as their cause or even their pretext, since they are always contrary to the real interests of the masses.
The second is that they no longer depend on the whims of a leader, but on public opinion.
The result of the combination of these two circumstances is that wars are due to become increasingly rare and finally disappear through the force of events and independently of any intervention by the Congress, since an event that harms the general public and which depends on the general public is bound to cease.
What, therefore, is the role of the Congress? It is to hasten this inevitable [266] result by showing, to those who do not yet perceive this, how and why wars and arms are harmful to the general interest.
What element of utopia is there in such a mission?
For the last few years, the world has experienced circumstances which, in other eras, would have caused long and cruel wars. Why have these been avoided? Because, although there is a party in favor of war in Europe, there are also those who love peace. Although there are men who are ever ready to make war, in whom a stupid form of education has imbued ancient ideas and barbaric prejudices and who attach honor to physical courage alone, seeing glory only in military exploits, fortunately there are other men who are more religious, more moral, more farsighted, and who can work things out better. Is it not only natural that this latter category should endeavor to gain recruits from the former? How many times has civilization, as in 1830, 1840, and 1848, been, so to speak, in suspense faced with this question: which of the war or peace parties will gain the upper hand? Up to now, the peace party has triumphed and, it must be said, it is perhaps less through fervor or numbers than because it had political influence.
So peace and war depend on public opinion and opinion is divided. There is therefore a constantly imminent danger. In these circumstances, is not the Congress undertaking something that is useful, serious, effective, and even, I dare say, easy by trying to gain support for those in favor of peace so as to give them at last a decisive weight?
What is utopian in this? Does it mean saying to the people, “We are coming to enjoin you to trample your interests underfoot, to act henceforward in accordance with the principles of devotion, sacrifice, and self-renunciation?” Oh, if this were so, the enterprise would indeed be risky!
But on the contrary, we are coming to tell them: “Do not consult only your interests in the next life, but those in this one. Examine the effects of war. See whether they are not disastrous for you. See whether wars and heavy arms do not lead to interruptions in work, crises of production, the loss of strength, crushing debt, heavy taxes, impossible financial situations, discontent, and revolutions, not to mention deplorable moral habits and reprehensible violations of religious law.”
Are we not allowed to hope that this language will be heard? Take courage, then, you men of faith and devotion, have courage and confidence! The gaze and hearts of those who are now unable to join your ranks will be following you.
respectful and devoted servant.
Letter 188. Paris, 9 Sept. 1850. To Richard Cobden↩
SourceLetter 188. Paris, 9 Sept. 1850. To Richard Cobden (OC1, pp. 188-91) [CW1, pp. 267-69].
TextMy dear Cobden, I am grateful for the interest you are good enough to take in my health. It is still shaky. At the moment I have a severe inflammation and probably ulcers on the two tubes that take air to the lungs and food to the stomach. The question is to know whether this disease will stop or whether it will get worse. In the latter case, there will no longer be any means of breathing or eating, a very awkward situation indeed.355 I hope not to be subjected to this ordeal for which, however, I am not neglecting to prepare myself by practicing patience and resignation. Is there not an inexhaustible source of consolation and strength in these words, “Non sicut ego volo sed sicut tu”?356
One thing that distresses me more than these physiological prospects is the intellectual weakness whose progression I see so clearly. I will doubtless have to abandon the completion of the work I have started. But, at the end of the day, has this book as much importance as I like to give it? Will posterity not get along very well without it? And if one should combat the unseemly love of material possessions, is it not also good to stifle the upsurges of author’s vanity that come between one’s heart and the only thing worthy of one’s aspirations?
Besides, I am beginning to think that the principal idea that I am seeking to disseminate is not lost; yesterday a young man sent me in a letter an article entitled “An Essay on Capital.”357 It included these sentences:
[268]“Capital is the characteristic sign and measure of progress. It is the sole and necessary vehicle for it, with the special mission of aiding the movement from priced goods to free ones. Consequently, instead of augmenting natural prices, as it is alleged, its unchanging role is to lower them persistently.”
These sentences encompass and summarize the most fertile of the economic phenomena that I have endeavored to describe. They include a guarantee of the inevitable reconciliation between the property-owning and the proletarian classes. Since this point of view on social order has not been defeated, since it has been perceived by others who will set it out for all to see better than ever I could, I have not entirely wasted my time and I am able to sing my “Nunc dimittis,” with slightly less distaste.
I have read the report on the Congress in Frankfurt. You are the only one to know how to give this work a practical character, an influence on the world of business. The other speakers limit themselves to well-worn commonplaces. But I continue to think that the association will end up having a significant indirect influence by awakening and molding public opinion. Doubtless, you will not obtain the official declaration of universal peace, but you will make wars more unpopular, difficult, rare, and odious.
However, we should not hide the fact that the affair in Greece358 has dealt a body blow to the supporters of peace and they will need a great deal of time to recover. Which French deputy, for example, will be sufficiently bold to speak merely of partial disarmament in the presence of the international principle involved in this Greek affair, with the consent (and it is above all this that is serious) of the British nation? Disarm! Could this be their cry when a formidable power is openly acting according to the principle that when it considers itself in confrontation, however slight the grounds of complaint, with another government, it will not only employ force against this government but also seize the private property of its citizens? As long as such a principle remains standing, whatever its cost, we will need to remain armed to the teeth.
There was a time, my friend, when diplomacy itself tried to have respect for individual property prevail at sea in time of war. This principle has entered our military mores. In 1814, the English took nothing in the south of France without paying for it. In 1823, we made war in Spain under the same conditions, and however unjust this war was from the political point of view, it made an admirable distinction, now acknowledged, between the public [269] domain and personal property. M. de Chateaubriand tried at this time to have the elimination of privateering and letters of marque,359 in a word, respect for private property, included in international law. He failed, but his efforts reveal great progress in civilization.
How far back into the past Lord Palmerston360 is taking us! It is therefore now admitted that if England has a grievance against King Othon, no Greek can claim ownership of a bark or a keg of goods. For the same reason, if France has any complaint against Belgium, Switzerland, or Piedmont, it may send battalions to seize houses, harvests, cattle, etc. This is barbaric. I repeat, with a system like this, everyone will need to remain armed to the teeth and be ready to defend his property, for, my friend, men are not yet Quakers. They have not renounced the right to personal defense, and they will probably never renounce this.
If, moreover, everything was limited to the doctrines and acts of Lord Palmerston, this would be one more iniquity for which to reproach diplomacy, but that would be all. But what is serious and threatening is the unexpected approval given to this policy by the English nation. One hope is left to me: that this approval is not typical.
But while making politics, I am forgetting to tell you that, in order to obey my doctors’ prescriptions, with no great belief in them, I am leaving for Italy. They have condemned me to spend this winter in Pisa in Tuscany. From there, I will doubtless visit Florence and Rome. If you have any friends there who are close enough for me to introduce myself to them, please let me know, without taking the trouble to send introductory letters. If I knew where to find Mr. and Mrs. Schwabe, I would warn them of this journey in order to take their instructions. When you have occasion to write to them, please tell them about this trip.
Letter 189. Paris, 9 Sept. 1850. To Félix Coudroy↩
SourceLetter 189. Paris, 9 Sept. 1850. To Félix Coudroy (OC1, p. 104) [CW1, pp. 269-70].
TextMy dear Félix, I am writing to you on the point of starting a long journey. The illness which I had when I saw you has settled on my larynx and throat. [270] The constant pain and weakness it causes has made it a genuine torture. However, I hope that I will not lack resignation. My doctors have ordered me to spend the winter in Pisa and I am obeying, although these gentlemen have not habitually inspired trust in me.
Farewell, I must stop because my head is preventing me from writing any more. I hope that I will have more vigor during my journey.
Letter 190. Lyon, 14 Sept. 1850. To M. Paillottet↩
SourceLetter 190. Lyon, 14 Sept. 1850. To M. Paillottet (OC7, pp. 442-43) [CW1, p. 270].
TextI do not wish to start out on the second half of my journey without telling you that everything has gone quite well up to now. I became a little tired only during the stage between Tonnerre and Dijon, but that was almost inevitable. I think that it would have been better to sacrifice a night and take the mail coach. It is always the best way. Spending the night on the way always obliges you to take stage carts and old crocks or be cast in among drunken men, etc., and you arrive at a bad inn only to repeat the procedure the next day.
I have not told you, my friend, how much I appreciated the idea that occurred to you for a moment to accompany me to Italy. I am as grateful to you as if you had in fact carried out this project. But I could not have agreed to this. This would have deprived Mme Paillottet of one day seeing this beautiful country or at least have reduced her chances of doing so. Besides, as I cannot talk, all the delight of traveling together would have been lost. Either we would have often disobeyed orders, which would have caused us regret, or we would have obeyed them only after a difficult and constant struggle. Be that as it may, I thank you from the bottom of my heart, and if Mme Paillottet feels up to the journey, come and fetch me in the spring, when I will no longer be dumb.
Please remind M. de Fontenay of my advice or, to put it more strongly, my pressing invitation to have his Capital printed
Letter 191. Lyon, 14 Sept. 1850. To Melle Louise Cheuvreux↩
SourceLetter 191. Lyon, 14 Sept. 1850. To Melle Louise Cheuvreux (CH, pp. 107-113) [CW1, pp. 270-73].
TextHere I am in Lyons since yesterday evening; at a stretch you might have had this letter twenty-four hours earlier, but on my arrival I hesitated between the writing desk and bed. My heart encouraged me to favor the first [271] and my body the second; who would ever have told me that my body would win in a conflict of this kind? However, scarcely was I in bed than it fell victim to a high fever, which explains its victory and justifies me in my own eyes. However, do not worry about this fever; it was very temporary and has completely gone this morning.
On Tuesday, after leaving you, I went to the Économistes dinner. M. Say was in the chair. Following the fatigue I always suffer in the evening, I could not go to bid farewell to Mme Say, for which I am very sorry.
On Wednesday, I set out at half past ten. Up to Tonnerre, the journey went extremely well. We went so quickly that we were scarcely able to enjoy the scenery, with the result that since my eyes were fixed on a cloud probably visible from La Jonchère, I remembered that you were not very happy with the words set to the pretty melody by Félicien David.
I addressed other words to my cloud. Unfortunately they did not rhyme and therefore are not worth my copying them down here. From Tonnerre to Dijon, troubles of all sorts began. If you follow this route, as I hope you will, M. Cheuvreux must contact M. G—— in writing to procure mail coaches.
As I was responsible only for myself, I trusted to luck, which could have looked after me better. There were six of us in the seating space of a stagecoach made for four. Out of these six people, four were women, which meant that under our feet, on our knees, and up against our sides we had a multitude of parcels, bags, baskets, etc.; truly, women, who are such adorable models of self-sacrifice in domestic life, appear not to understand that they owe something to others, even people they do not know, when in public.
From Châtillon to Dijon, I was crowded onto the top deck as the fourteenth passenger. It was during this stage that we crossed the watershed, one side of which looks to the ocean, the other the Mediterranean. When this line is crossed, it seems as though you are leaving your friends for a second time, as you no longer breathe the same air and are no longer under the same sky. Finally, from Dijon to Châlon, you have only two hours on the train and from Châlon to Lyons there is a delightful excursion by water.
But can I say that I am traveling? I am going through a succession of landscapes, that is all. I have no communication with anyone, whether in coaches, in boats, or in hotels. The more attractive people’s faces appear, the more I shun them. The chapter of random adventures or unforeseen meetings does not exist for me. I am going through space like a bale of goods, except for a few visual delights of which I am soon tired.
You told me, dear demoiselle, that poetic Italy would be a source of new emotions for me. Oh, I very much fear that it will be unable to extricate [272] me from this numbness which is gradually taking over all of my faculties. You gave me a lot of encouragement and advice, but for me to be sensitive to nature and art, you would have needed to lend me your soul, the soul that longs to blossom with happiness, which so quickly becomes attuned to everything that is beautiful, graceful, sweet, and lovely and which has such great affinity with all that is harmonious in light, color, sound, and life. Not that this need for happiness reveals any selfishness in your soul; on the contrary, if it seeks, attracts, or desires it, it is to concentrate it in itself as in a hearth and from there radiate it around you in wit, a fine mischief, constant good deeds, consolation, and affection. It is with this disposition of the soul that I would like to travel, as there is no prism that embellishes external objects more. However, I am changing surroundings and skies under a totally different influence.
Oh, how fragile is the human frame! Here I am, the plaything of a tiny pimple growing in my larynx. It is the thing that is driving me from the south to the north and from north to south. It is the thing that makes my knees buckle and empties my head. It is the thing that makes me indifferent to the Italian landscapes of which you speak. I will soon have no thought or concentration for anything other than it, like the old invalids who fill their entire conversations and all their letters with one single idea. It seems as though I am well down this path already.
To escape this, my imagination has one route still open to me and that is to go to La Jonchère. I imagine that you are enjoying with delight the fine days that September stores up. Here you are, all together! Your dear father and M. Edouard361 have returned from Cherbourg delighted with the magnificent things they have seen and full of tales to tell. Just the presence of Marguerite would be enough to make your mountain a charming place to stay. Here is one who might boast of having been caressed! I love to hear parents reproaching each other for spoiling their children, a very innocent small conflict, since the most spoiled, that is to say the most loved, are those that succeed the best.
Dear demoiselle, allow me to remind you that you should not sing for too long a time, especially with the windows open. Be careful of the autumn chills and avoid catching cold in this season. Remember that if you caught one through your own fault it would be as though you were making all those who love you ill. Be careful of returning from Chatou362 at eleven o’clock at [273] night. To combine care for your health and your love of music, might not your evenings be turned into mornings? Farewell, dear Mlle Louise.
deep affection,
Letter 192. Lyon, 14 Sept. 1850. To Madame Cheuvreux↩
SourceLetter 192. Lyon, 14 Sept. 1850. To Madame Cheuvreux (CH, pp. 113-115) [CW1, pp. 273-74].
TextI am leaving tomorrow for Marseilles. If you take the boat at eleven o’clock you have only the inconvenience of spending the night in Valence and this will not be inconvenient for me since I will have the pleasure of taking news to your brother, the captain.
If you go to Lyons, do not fail to climb Fourvières! This is an admirable viewpoint from which you can see the Alps, the Cévennes, the mountains of Forez, and those of the Auvergne. What an image of the world Fourvières gives! Down below, there is work and its insurrections,363 halfway up, cannons and soldiers, and at the top religion with all its sad excrescenes. Is this not the story of the human race?
Contemplating the theater of so many bloody conflicts, I thought that there is no more pressing need in man than that for confidence in a future that offers some stability. What troubles the workers is not so much how low their wages are but their uncertainty, and if men who have achieved wealth were prepared to take a look at themselves, seeing with what ardor they love security, they would perhaps be somewhat indulgent toward the classes which always, for one reason or another, have the specter of unemployment before them. One of the most beautiful of economic harmonies is the ever-increasing tendency for all classes in succession to achieve stability. Society achieves this stability as civilization is attained, through earnings, fees, rent, and interest, in short everything that the socialists reject; to such an extent that their plans bring the human race back precisely to its point of departure, that is to say the time when uncertainty is at its highest for everyone. There is a subject here for new research for political economy . . . But what shall I tell you about Fourvières! What poetry, heavens, for the delicate ear of a [274] woman! . . . Farewell once more, forgive this torrent of words; I am taking revenge for my silence, but is it fair that you should be the victim?
Letter 193. Marseille, 18 Sept. 1850. To M. Cheuvreux↩
SourceLetter 193. Marseille, 18 Sept. 1850. To M. Cheuvreux (CH, pp. 115-117) [CW1, pp. 274-75].
TextIt was painful for me to leave Paris without shaking your hand, but I could not delay my departure on pain of missing the mail boat here. In fact, I arrived here yesterday and have just one day to make all my arrangements, obtain a passport, etc.
It is not even certain that I will be embarking; I have learned that travelers who go by sea are welcomed in Italy by quarantine. Three days in a quarantine station is not very attractive!
When I arrived in Marseilles, my first visit was to the post office, as I hoped to find a letter there; to know that all three of you were enjoying good health at La Jonchère would have made me so happy! There was no letter. Thinking about it made me realize that I was being too demanding since it is scarcely a week since I left the dear mountain. Silence makes time seem so long that it is not surprising that I attach so much importance to receiving a letter.
How anxious I am to reach Pisa. How anxious I am to know whether this fine climate will make my head strong and give it two hours of work a day. Two hours! This is not too much to ask, and yet this is still a vanity.
Doubtless, like André Chénier and like all authors, I think I have something there, but this upsurge of pride scarcely lasts long. Whether I transmit to posterity two volumes or just one, the progress of human affairs will remain unchanged.
No matter, I claim my two hours, if not for future generations, at least in my own interest. For if the prohibition to work has to be added to so many others, what will become of me in this tomb of my anticipation? I spent the night of Sunday to Monday in Valence. In spite of the desire I had to see the captain and the efforts I made to do this, I was not able to do it.
The 19th. I am definitely leaving tomorrow and by land. Here I am embarked upon an adventure whose outcome I cannot see.
This morning I was still hoping for a letter; I would have left happier. [275] Now only the good Lord knows where and when I will have news of you all; will I have to wait two weeks?
Dear M. Cheuvreux, please remember me to both mother and daughter and assure them of my profound friendship. Do not forget to remember me also to M. Edouard and Mme Anna, who will allow me to embrace their delightful child, although from afar.
Letter 194. Marseille, 22 Sept. 1850. To Madame Cheuvreux↩
SourceLetter 194. Marseille, 22 Sept. 1850. To Madame Cheuvreux (CH, pp. 117-120) [CW1, pp. 275-76].
TextBefore leaving France, allow me to send you a few lines. The date of this letter will surprise you; here is the explanation.
As you know, since I was determined to go by land, I allowed the boat on the 19th to leave. At the time, a day sooner or later was of little importance and I was not willing to leave Marseilles knowing that one of your letters was on the point of arriving. I waited and was right to do so, since I have at last received your very benevolent and affectionate encouragement, and what is more, I know the major decision that has been taken at La Jonchère.
In short, I should have been taking the coach yesterday, but I was perfectly aware that, to avoid the quarantine station, I would encounter other inconveniences, such as going through clouds of dust, going from inn to inn, cab to cab, and using my larynx to argue with porters; all this was scarcely an attractive prospect. At eleven o’clock, while reading the Marseilles journal, I saw that the Castor was leaving for Leghorn in the afternoon. Although you advised me to avoid making unplanned decisions, I booked and paid for a ticket, thinking that the quarantine would be swallowed at a gulp if I closed my eyes. In the evening, the sea was so rough that the boat did not leave, and this is how I come to be scribbling this epistle while they are raising the anchor.
Since my arrival on board, I have noticed that it is a great mistake to be the last to book your ticket. Instead of having a good single cabin, you have a bed in a joint cabin.
Oh, what an improvident man! You are going to cross the Mediterranean in the joint cabin of a packet-boat; you will die in the general ward of a hospital and will be thrown in the common grave of a Campo Santo! What [276] difference does it make, if the happiness I have dreamed of in this world is waiting for me in the next? However, it is better to have a single cabin, and this is why I am writing to you so that you can take the necessary steps.
Your journey is worrying me. At first, I thought I had the answer (who does not seek answers today?). I thought that His Holiness, who subjects his infallibility to the protection of our bayonets, should spare his soldiers an insulting quarantine. If this were so, it would have been easy for M. Cheuvreux and M. Edouard Bertin to obtain passages on a state vessel going to Civitavecchia. It seems, however, that even our troops are subject to the health regulations (a bad solution). The final consideration, then, is that a journey across the Apennines seems to me to be a risky venture at the end of October.
I meant to write to Mlle Louise since, just as a good government is very willing to raise a great many taxes but distributes them evenly, I feel the necessity to divide the weight of my lamentations; alas, my letter would not have been very pleasant! On my journey, I have been able to see only the side of things that is reprehensible and can be criticized. I am fully aware that colors are not in objects but in ourselves. According to whether we are in a rosy or black mood, we see everything in rosy or black hues.
Farewell, I cannot hold the pen any longer under the vibration of the steam engine.
Letter 210 to Paillottet (Pisa, 30 Sept. 1850)↩
SourceLetter 210. Pisa, 30 Sept. 1850. Letter to Paillottet in P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905), pp. 253-55. [CW4]
Editor's IntroductionBastiat's health continued to get worse throughout 1850. His last attendance at a session of the Chamber of Deputies was on 9 February after which he took a leave of absence. The first volume of his treatise Economic Harmonies was published in January 1850 with 10 chapters but he was too ill to work much on completing volume 2 which was eventually reconstructed from his notes and drafts by his friend Prosper Paillottet. 50 This enlarged edition of Economic Harmonies with an additional 15 chapters appeared posthumously in July 1851.
In May 1850 Bastiat left Paris and returned to his home town Mugron in Les Landes, and then went to the spa town of Les Eaux-Bonnes in June and July to recuperate and work on his two pamphlets The Law and What is Seen and What is Not Seen . He briefly returned to Paris in August but was told by his doctor that he could not survive another winter in Paris and advised him to go to Italy where the climate was less harsh. He attended his last meeting of the Political Economy Society on 10 September so he could say farewell to his friends and colleagues. 51
He took 6 weeks travelling to Rome, spending time along the way in Lyon and Marseilles (September), Pisa (October), before arriving in Rome in early November, where he stayed until his death on 24 December. His friend Prosper Paillottet went to Rome to see him during his last days, as did the Cheuvreux family who had become close friends and supporters of Bastiat. Madame Hortense Cheuvreux 52 ran an important liberal salon in Paris which Bastiat had attended over the previous two years.
One of the things Bastiat and Paillottet discussed at this time was the completion of his treatise Economic Harmonies and the editing of his Complete Works after his death. Bastiat appointed Paillottet his literary executor and with the assistance of Roger Fontenay 53 carried out Bastiat's wishes.
TextMy dear Paillottet, I left Paris on the 11th and here it is the 30th. So there you have it. Twenty days away and I have still only received a single letter from Marseilles. I keep asking at the post office and the usual answer is "there is nothing for you." I fear that they have the wrong address and there is a misunderstanding about this, as I cannot imagine my friends leaving me without any news. They must know that in this life of hardships to which I have been condemned, not being able to speak or write or to make friends, their memory is all I have to soothe my soul. How happy I would be if only they thought to write to me often! But are absent friends always in the wrong? No! I much prefer to think that it is the Post Office which is not doing its job properly. And anyway, how can they be mistaken with such a simple address: M. F. B., poste restante, Pisa, Tuscany?
My dear Paillottet, I am waiting for the arrival of what you wrote to me about from Marseilles, that is the dispatch of the box of books. 54 Sadly, I now see that they will not be of much use to me, either for reading or for working with, because the Italian climate instills in me a great feeling of far niente (doing nothing). And then, without feeling that I am sicker, it is clear that I am weaker. I do not sense it by comparing one day to the next, but if I turn my mind back one or two months I cannot fail to see my decline. If this continues for much longer I will not be able to do anything.
I suppose M. de Fontenay has returned from the countryside. Next time you see him, give him a kick in the pants to get his book on Capital published. 55 Without that, I think he is a man who will let the days and months slip by.
Pisa is a delightful place, at least the quarter where foreigners and the sick live. The Arno river forms a large semi-circle along which are houses. From my window I can see the sun from sunrise to sunset. The warmth, the light, the view of the river, the activity on the quay, makes any sad thoughts seem far away. There is not even time for boredom. One has to think that the sound morale influence of this location augurs well for my physical recovery.
Mme Cheuvreux told me that they have decided to travel here from Florence. I received this news from Marseilles. But not having received any more letters I am in an agony of uncertainty not knowing if they will change their minds. You would do me a very great service if you could make inquiries upon receipt of this letter and let me know by return mail. At the same time, tell M. Cheuvreux that, according to what I have been told, quarantine would not last longer than October 19, which is the day the State packet-boat departs. In addition, assure him that the quarantine station at Livorno is quite comfortable. Therefore I think the best plan is to board the Post ship. If I had had advance warning I would have gone to the quarantine station to reserve the best places, on the assumption that this hoax which is quarantine takes longer than expected.
Farewell my dear Paillottet. I will have your reply in only 12 days time. Like a good schoolboy I will cross myself every morning at matins.
Farewell, your devoted friend.
50 Prosper Paillottet (1804-78) was a successful businessman in the jewelry industry and was active in the French Free Trade Association. He became a close friend of Bastiat and in his final days spent time with him in Rome and agreed to become his literary executor, forming a group called the "Société des amis de Bastiat" (Society of the Friends of Bastiat) which would preserve his papers and edit his collected works.
51 See below, pp. 000.
52 Hortense Cheuvreux (née Girard) (1808-1893) was married to Jean Pierre-Casimir Cheuvreux (1797-1881), who was a wealthy textile merchant and was active in liberal circles in Paris, helping to fund their activities. Hortense ran an important salon from their Paris home and became a close friend of Bastiat's. In 1877 she published Bastiat's letters to her family in Lettres d'un habitant des Landes which are quite personal and show a very different side to Bastiat.
53 Roger de Fontenay (1809-91) was a member of the PES and an ally of Bastiat in their debates in the Société on the nature of rent (they rejected the orthodox Ricardian view) and Malthus's theory of population (they rejected his pessimism). Fontenay worked with Prosper Paillottet in publishing Bastiat's 2nd edition of Economic Harmonies in 1851 and his Œeuvres complètes in 1854 for which he wrote a lengthy introduction.
54 Ronce says that Bastiat had asked Paillottet to send him some books he had forgotten to bring with him from Paris, namely Jeremy Bentham's Essay on Political Tactics: Containing Six of the Principal Rules Proper to be Observed by a Political Assembly (1791) and a copy of the Constitution , "in case he had a chance to reflect on the changes that were taking place there."
55 Bastiat is referring to Roger de Fontenay, Du revenu foncier (Paris: Guillaumin, 1854).
Letter 195. Pisa, 2 Oct. 1850. To Madame Cheuvreux↩
SourceLetter 195. Pisa, 2 Oct. 1850. To Madame Cheuvreux (CH, pp. 120-124) [CW1, pp. 276-78].
TextDoubtless, we are both complaining about each other, you of the flood of letters with which I am overwhelming you and I who am desolate at not receiving any. However, I am not accusing you of not writing; it is not possible that you have let all this time go by without writing to me. I attribute my disappointment to some mismanagement by the Italian postal service. This explanation is all the more likely since I am also without news of my family and Paillottet.
I do not know whether you are continuing to plan your journey, what route you will be taking, etc. I have been to Leghorn to find out about the conditions at the quarantine station. The large apartments lack furniture, [277] but as soon as I am sure of the date of your arrival, I will see that two rooms are prepared. A decent caterer will supply food and then, if you permit, I will put myself with pleasure into quarantine . . . “and Phaedra in the labyrinth.” Poor man! I am forgetting that I cannot speak and that my company will be only a nuisance.
If only you knew, madam, how your enterprise worries me with regard to Mlle Louise. It is not that it offers the slightest danger; I even hope for fine weather in October, since the wind blows in September, but I fear that you will both be unwell. I entreat the influence of the heavens and the sea to be favorable!
At last, a moment of pleasure! I have read your letter of the 25th, which arrived accompanied by a missive from my aunt and another from Cobden. I wish you could see me; I am no longer the same person.
Is it really dignified for a man to be so wholly dependent on an external event, an accident of the post? Are there no extenuating circumstances for me? My life is just one long deprivation. Conversation, work, reading, plans for the future, all this I find lacking. Is it surprising that I am becoming attached, perhaps too much so, to those who are willing to take an interest in this ghost of an existence? Oh, their affection is more astonishing than mine. So you are leaving on the 10th? If this letter reaches you, please reply immediately.
You advise me to speak to you as I would to a court, to speak the truth, the whole truth, and nothing but the truth; I am very willing to do this but it is impossible to know whether I am better or worse. The progress of this illness, whether it moves forward or back, is so slow, so imperceptible that you see no difference between the day before or the day after. You have to take points of comparison that are further apart. For example, how was I a year ago at Le Butard? How was I there this year and how am I now? Here are three periods, and I have to admit that the results of this examination are not good.
The departure of your brother and his family will have left a great emptiness in La Jonchère. It needs only one lovely child like Marguerite to fill an entire house.
Farewell, dear Mme Cheuvreux.
Come, and come soon, to bring a little life to the Italy that seems dead to me. When you are all here, I will appreciate more its sun, climate, and arts. Until then, I will follow your advice and just take care of my body, make it an [278] idol, dedicate a cult to it, and prostrate myself in adoration before it. If only I might recover speech when you arrive, for, madam, dumbness is painful in your presence! You have a collection of paradoxes in whose defense you are highly skilled, but to which it is a pleasure for me to reply.
Farewell; M. Cheuvreux will not be the least busy of the three. Please accept my great and respectful affection.
Letter 211 to Paillottet (Pisa, 7 Oct. 1850)↩
SourceLetter 211. Pisa, 7 Oct. 1850. Letter to Paillottet in P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905), pp. 255-56). [CW4]
Editor's IntroductionIn a last flurry of activity towards the end of his life, Bastiat had to respond to the charge made against him by the American economist Henry Carey 56 that he had plagiarised Carey's work on the idea of "the harmony of interests" and his criticism of Ricardo's idea of the natural productivity of land. Bastiat's book on Economic Harmonies was circulating among the economists in Paris in manuscript form by the end of 1849 and was published by Guillaumin early the following year, in January or February. It was reviewed quite critically by Ambroise Clément in the JDE in June 1850 57 after a delay which Bastiat thought was a slight on him because of his radical new ideas. Although he lived in America, Carey read Clément's review and this provoked him into writing a letter of complaint to the Editors of the JDE in August 1850 but which was not published until January 1851, two weeks after Bastiat's death. In the letter he argued that he had expressed his ideas on harmony and land rent in his book Principles of Political Economy which was published in 1837 and that Bastiat should have cited this in his book, especially since he not not started writing about economic matters until 1844. 58
Carey's next book, with the strikingly similar title, The Harmony of Interests, was published in Philadelphia in 1851 59 but Carey's book was available in proofs at the end of 1850, probably sent by him to the Parisian economists to prove his case against Bastiat. The difficulty was in getting a copy of the proofs to the dying Bastiat in Rome in time for him to look at them. They arrived sometime in November and Bastiat wrote a reply to Carey's criticisms and sent it to the JDE just a couple of weeks before he died. They published Carey's original August 1850 letter, along with Bastiat's response, and a letter in support of Bastiat by Clément in the 15 January 1851 issue of the JDE. 60 In essence, Bastiat said he got his ideas from many sources, only one of whom was Carey (he listed in his correspondence and elsewhere that J.B. Say, Charles Comte, and Charles Dunoyer had been the major influences on his thinking) and that the idea of "the harmony of interests" was not "une individuelle invention" (an invention of an individual) of Carey or anyone else.
In spite of being saddened by Bastiat's death in December Carey continued the debate with another letter to the JDE which was published in May 1851 61 in which he responded to Bastiat and denied that he was seeking any "brevet d'invention de ces lois" (patent on these (economic) laws) but just wanted due recognition of his prior work. There was some venom in these letters back and forth which was complicated by feelings of national pride, with Bastiat not liking criticisms of French institutions by an American, and Carey in turn not liking French criticism of America, citing the work of Tocqueville and Beaumont in particular.
In the absence of his friend, Proposer Paillottet jumped in with a letter to Carey published in the June 1851 issue of the JDE 62 in which he pointed out that Bastiat had been writing on economic matters, especially on the relative contributions to the creation of "value" made by labour or land itself, as early as 1834 and could not have plagiarised Carey's 1837 work. 63
Carey's final word on the matter was penned in December 1851. 64 By then he had come to accept the idea that "the word" harmony had been used independently by many writers but that "la chose" (the thing or the theory) which lay behind its meaning could be very different. Whereas Bastiat thought that what lay behind the idea of value, including the value produced by land, was the exchange of "service for service," 65 Carey thought it was the exchange of "labour for labour." However, Carey's bigger concession was to come to realise during the course of the debate that Bastiat's views were also strongly opposed by the more orthodox economists at the JDE, like Joseph Garnier, who were staunch Ricardians and Malthusians. Thus, although he may have resented Bastiat's claim to have independently discovered the idea of "the harmony of interests," Bastiat was in fact an ally of his with his radical rethinking of the Ricardian theory of rent and Malthusian pessimism which ran along very similar lines to his own.
Another thing we learn from this letter is the real excitement Bastiat felt at the immanent arrival of the Cheuvreux family, in particular Madame Hortense Cheuvreux whose salon Bastiat had attended in Paris and to whom he was very close. She and Paillottet were the only people from his circle of Parisian economist friends who visited him in Rome as he was dying.
TextMy dear Paillottet,
I intended to reply to your kind note of 27 September but at the moment my head and my hand are tired from scribbling down the pages which are included below. I will write back you in the next day or so to discuss Carey, the books, etc. and what concerns me the most, your plans to travel in Italy with Mme Paillottet. In the meantime, I will say to you that since one has a trip like this only once in one's life, it is necessary to do this in the best possible conditions. If I get better between now and the spring, and if chatting to you is not forbidden, I don't need to tell you how much pleasure it would give me if I could be a tourist with you. But if I am like I am now, pray don't let my presence here influence your plans. I would only be a hindrance to you and thus completely ruin your plans; and you yourself, by trying to be kind to me, would cause me harm by encouraging me to talk. You can understand how delighted I am to see the arrival of the Cheuvreux family. Well, reason tells me that their presence here will be painful for me. I will suffer terribly knowing that they are so close and not being able to follow them; or at least, if I give in to this feeling I can say goodbye to what little have left of my larynx.
But whatever may happen, this is not what I am writing to you about today. My letter has a special purpose. Mme Cheuvreux writes that she leaves Paris on 14 October. Now, it is that very day that the letter I inclose will arrive in Paris. Will she receive it? Will her concierge know where to send it?
This is what I am going to ask you to do. Since I am giving Mme Cheuvreux some information about her travels, would you see that it is forwarded to her upon receipt of this letter ?
If she has already left, would you address the letter to M. Auguste Girard, Captain of Artillery at Valence and the brother of Mme Cheuvreux, and attach stamps to it so the barracks porter doesn't get it into his head to refuse to accept it.
Farewell, my dear Paillottet, your devoted friend.
56 Henry C. Carey (1793-1879) was an American economist who argued that national economic development should be promoted by extensive government subsidies and high tariff protection. There were several topics on which he was close to the French economists, most notably his idea that economies are governed by the operation of natural laws which are observable by men, and that there is no inherent reason why the interests of economic actors are not "harmonious" in a free society. His best known book is The Harmony of Interests, Agricultural, Manufacturing, and Commercial (1851).
57 Harmonies économiques , par M. Frédéric Bastiat. (Compte-rendu par M.A. Clément), JDE, T. 26, N° 111, 15 juin 1850, pp. 235-47.
58 Henry Charles Carey, Principles of Political Economy (Philadelphia: Carey, Lea & Blanchard, 1837-1840), 3 vols.
59 Henry Charles Carey, The Harmony of Interests agricultural, manufacturing, and commercial (Philadelphia: J. S. Skinner, 1851).
60 "Les Harmonies Économiques. Lettre de M. Carey; Réponse de MM. Bastiat et A. Clément," JDE, T. 28, no. 117, 15 Jan. 1851, pp. 38-54. Bastiat's Letter can be found in CW1, Letter 209, pp. 297-302.
61 "Observations de M. H.C. Carey, au sujet de la dernière note de Frédéric Bastiat," JDE, T. 29, N° 121, 15 May 1851, pp. 43-51.
62 P. Paillottet, "Correspondance. Au sujet des reclamations de M.H. Carey," JDE, T. 29, N° 122, 15 June 1851, pp. 156-60.
63 Paillottet cites Réflexions sur les pétitions de Bordeaux, le Havre et Lyon, concernant les douanes, par Frédéric Bastiat, membre du Conseil général du département des Landes. (A Mont-de-Marsan, chez Delaroy, imprimeur de la Préfecture et de l'Echévé, Avril 1834). 16 pp. This can be found in CW2.1, pp. 1-9.
64 "Lettre de M. Carey," JDE, T. 21, no. 129, 15 Jan. 1852, pp. 81-83.
65 See the glossary entry on "Service for Service."
Letter 196. Pisa, 8 Oct. 1850. To M. Domenger↩
SourceLetter 196. Pisa, 8 Oct. 1850. To M. Domenger (OC7, pp. 408-10) [CW1, pp. 278-79].
TextWho would have told us on the last occasion, when I had the pleasure of seeing you, that my first letter would be dated in Italy? I have come here strictly on doctor’s orders. In fact, I have no doubt that if there is still time for my throat to be helped by anything, it will be by the pure, warm air of Pisa. Unfortunately, this is just one aspect of the question. The finest climate in the world cannot alter the fact that, when you cannot talk, write, read, or work, it is very sad to be alone in a foreign country. This makes me miss Mugron and I think that I would prefer to shiver in Chalosse than be warm in Tuscany. I am experiencing all sorts of disappointments here. For example, it would be easy for me to have contact with all the distinguished men in this country. This is because, as political economy is included in the study of law, this science is cultivated by almost all educated men. Do you want a singular proof of this? In Turin, although the principal language spoken is Italian, more copies of my Harmonies (in the French edition)364 have been sold than in Marseilles, Bordeaux, Lyons, Rouen, and Lille combined, and this is true of all works on economics. You see, my dear friend, in what a state of illusion we live in France when we think we are in the vanguard of intellectual civilization. This being so, I was able to gain access to all the leading figures and eminent people and was perfectly placed to study this country in depth. Unfortunately, my constant preoccupation is to see nobody and to avoid people I know. What is more, close friends are going to come to see me from Paris; they will be visiting Florence and Rome as genuine connoisseurs, as they appreciate the arts and know a great deal about them. In any other [279] circumstances or with any other illness this would be such a pleasant event! But dumbness is an abyss that isolates you, and I will be obliged to flee them. Oh, I assure you that I am learning patience very well.
Let us talk of Mesdames X. I have always noticed that customary devotion does nothing to change the way men act and I very much doubt that there is more probity, gentleness, or mutual respect and consideration among our highly devout populations in the south than among the indifferent populations in the north. Young and amiable people will attend the bloody sacrifice of their Redeemer every day and will promise Him a great deal more than simple equity, and every evening they will deck altars to Our Lady with flowers. At every instant they will repeat: deliver us from evil, lead us not into temptation, thou shalt not take away or keep what belongs to another, etc., etc., and then when the opportunity occurs, they take as much as they can from their father’s inheritance at the expense of their brothers, just as the sinners do. Why not? Are they not quits with an act of contrition and a firm purpose of amendment? They do good work; they give a half farthing to the poor and thus gain absolution. So what do they have to fear? What do they have to reproach themselves for, since they have succeeded in making accomplices of the ministry of God and God Himself?
I seem to think that Mme D—— had the notion of spending Holy Week in Rome. If she carried out this plan, I would perhaps make my devotions in her company; her presence and consequently yours would be very pleasant for me, at least if I succeeded in articulating a few words. Otherwise, considering only myself, I would rather you stayed where you are, since knowing that you were close to me and being reduced to avoiding you would be just one extra torture.
Letter 212 to Paillottet (Pisa, 11 Oct. 1850)↩
SourceLetter 212. Pisa, 11 Oct. 1850. Letter to Paillottet in P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905), pp. 256-59). Only part of this letter was included in Paillottet's edition of the Oeuvres complètes and in our CW1: Letter 197. Pisa, 11 Oct. 1850. To M. Paillottet (OC1, pp. 443-44). [CW4]
Editor's IntroductionWe can only speculate about the reasons why Paillottet left out this part of Bastiat's letter from his edition. In it Bastiat talks about his illness and his doctors, his worries about not being able to fulfill his duties to his electorate and the Chamber of Duties where he had been Vice-president of the Finance Committee, his fussing about the Cheuvreux's travel plans to come visit him in Italy, his embarrassment at not having said farewell to some of his friends in Paris, and matters concerning the sending of Henry Carey's manuscript to him so he could evaluate for himself the reasons for Carey's accusation of his plagiarising his work on "the harmony of interests" and the productivity of land.
Concerning his activities in the Chamber of Deputies during the Second Republic, after the Revolution of February 1848 Bastiat was elected on 23 April as a Deputy in the Constituent Assembly representing the département of Les Landes. He was soon after appointed Vice-President of the Finance Committee to which he was re-appointed 8 times. He was re-elected on 13 May as a Deputy in the Legislative Assembly representing the département of Les Landes on the "Social Democratic" list. As his health deteriorated Bastiat lost his voice and was unable to speak in the Chamber as there were 900 Deputies in a very large hall with no amplification. He tried writing his speeches as pamphlets and circulating them among the Deputies so he could reach more people. He also began taking leaves of absence from the Chamber to let his voice recover. He gave his last formal speech in the Chamber on 12 Dec. 1849, on "The Tax on Wine and Spirits" and he last spoke in the Chamber in a debate on plans to give money to Workers' Associations on 9 February 1850. 66 Shortly after this he took another leave of absence, returned to his home town of Mugron and the local spa town of Eaux-Bonnes to rest, and never returned to the Chamber.
Text[The following passage concludes the first paragraph of Letter 197 in OC and our CW1, p. 280. The following paragraphs were cut by Paillottet and then the letter continues in CW1, pp. 280-81]:
Thank God I am not dead, nor even sicker … But in the end, if the news had been true it would have been necessary to accept it and resign oneself to it. I would like all my friends to be able to adopt the philosophy I myself have adopted in this regard. I assure you that I would surrender my last breath without pain, almost with joy, if I could be sure to leave behind for those who love me, not bitter regrets but soft, affectionate, and melancholy memories. I want to prepare them for the time when I will get sicker.
[The following lines were cut by Paillottet in his edition of OC but were included in an Appendix in Ronce's book.]:
Mme Paillottet shared your worries. Tell her how much I appreciate this show of concern for me. I hope that in the spring she can reassure herself in person that my body and soul are holding together quite well, and that they will not be separated without fierce resistance. Concerning this journey, I beg you to make up you mind without any consideration regarding me. If I am better, I will let you know, and then I'm sure it would be a pleasure for both of us to be tourists together. But if I am in the same state as I am now, then your trip would be completely ruined. Even in the first situation, I have to avoid making my stay in Italy anything other than purely therapeutic. What would my electorate say, what would my colleagues say, if I, supposedly under care for my health, went to admire the marvels of Naples and Venice in the middle of the parliamentary session and after having taken a year of successive sick leave? No, that would not be acceptable. M. Andral 67 prescribed Pisa or Rome and I will limit myself to that, and I will try to spend the month of April with my family in Mugron. 68 As for the rest, we have plenty of time to talk about all these other projects. 69
When you see M. de Fontenay thank him for the recommendations he made. The one for Livorno was not useful. I hope never to have anything more to do with that town. As for a doctor, I have met one who appears to me to be a prudent and educated man. He is professor Mazzoni. After he examined me he told me that his observation was that what was suitable for my condition was healthy living rather than any remedies. Here is a doctor who doesn't want to impose himself on you.
The Cheuvreux left Paris on the 14th. It seems that their travel plans were very different from my way of undertaking a journey. Not only did they not follow my advice but their letters prove to me that they didn't even read them. There they are, leaving Paris on the 14th, just in time to miss the Post Ship which leaves Marseilles on the 19th. Now, from every perspective that was their best way to make the crossing. They will now be reduced to travelling partly by land, partly by sea, in ships loaded down with cargo, where people smoke, where there is neither first nor second class berths, no security, etc. 70 The worst is that they will remain at sea for so long, despite the portion of the journey which they will take on land. I spelled out all of this to them like so many As, Bs, and Cs. They certainly skipped over all these passages in my letters. I am really upset.
My cousin 71 hasn't written to me. However, he should have received one of my letters, one of the first letters I sent from here. If you see him, remind him about me and tell him not to neglect me in this way.
I would also be very much obliged if you could visit on my behalf M. and Mme de Planat 72 whom I was not able to visit to say my goodbyes. I don't excuse myself for this omission which only you can carry out now if you are willing to do so.
When Guillaumin 73 sends me Carey's article I will be able to see what I have to reply to. 74 I said a word or two about this to M. Say 75 yesterday. Unfortunately, I fear that our communication and the shipping of the proofs of Carey's book will be impossible because of the price. Each letter I write costs 12 sous in stamps and those I receive cost 30 sous in shipping costs. My conclusion is that shipping large parcels would be exorbitant. As for the rest, as I am nowhere near being on the road to recovery in my ability to work, the postal reform of Tuscany will have to wait. 76
66 His last formal speech in the Chamber was on 12 Dec. 1849, on "The Tax on Wine and Spirits", CRANL, vol. 4, p. 159-65. OC5, pp. 468-93. CW2.16, pp. 328-47. He last spoke in the Chamber in a debate on plans to give money to Workers' Associations on 9 Feb. 1850, CRANL, vol. 5, p. 452; also see below pp. 000.
67 Andral was Bastiat's doctor in Paris.
68 Bastiat's estranged wife Clotilde Hiard had died on 10 February 1850 and it was rumoured that they had had a son, but Bastiat never mentioned either in his correspondence. His aunt Justine who had raised him when his own parents had died when he was quite young still lived in Mugron and Bastiat visited her frequently.
69 Bastiat would die on 24 December.
70 See Bastiat's letter to Richard Cobden about his own trip to Italy for similar stories, Letter 199 to Cobden (Pisa, 18 Oct. 1850), CW1, pp. 282-83.
71 Eugène de Monclar (1800-1882) was Bastiat's first cousin and a priest. Like Bastiat, he worked in the family commercial firm, which he left to study law. Shortly after becoming a lawyer, he studied for the priesthood. He visited him in Rome and gave Bastiat the last rites when he died on December 24, 1850.
72 Bastiat is possibly referring to Charles Planat (1801-1858) who had been a businessman in Cognac and its mayor 1838-1848. During the revolution he was elected a Deputy representing Charente. He sat on the right in the Chamber, possibly with the moderate Republicans, and probably got to know Bastiat then.
73 Gilbert-Urbain Guillaumin (1810-1864) was a mid-19th century French classical liberal publisher who founded a publishing dynasty which lasted from 1835 to around 1910 and became the focal point for the classical liberal movement in France. His firm became the major publishing house for liberal ideas in the mid nineteenth century. Guillaumin helped found the JDE in 1841 with Horace Say (Jean-Baptiste's son) and Joseph Garnier. The following year he helped found the PES which became the main organization which brought like-minded classical liberals together for discussion and debate.
74 See above for information about the controversy between Carey and Bastiat over a charge of plagiarism, pp. 000.
75 Horace Say (1794-1860) was the son of Jean-Baptiste Say. He married Anne Cheuvreux, sister of Casimir Cheuvreux, whose family were friends of Bastiat. Say was a businessman and was very active in liberal circles, participating in the foundation of the PES, the Guillaumin publishing firm, the JDE , and was an important collaborator in the creation of the Dictionnaire de l'économe politique (1852-53) and the Dictionnaire du commerce et des marchandises (1837, 1852).
76 This is a wry reference to his earlier efforts to reform the postal system in France during 1848. He wanted to drastically cut the cost of sending and receiving letters so ordinary people could afford to communicate with each. He wanted to eliminate the tax on sending letters, and charge a flat rate for pre-paid stamps paid by the sender (not the recipient) which was modeled on the British Uniform Penny Post which had been introduced in 1840. See below for some essays he wrote on this topic, pp. 000.
Letter 197. Pisa, 11 Oct. 1850. To M. Paillottet↩
SourceLetter 197. Pisa, 11 Oct. 1850. To M. Paillottet (OC1, pp. 443-44) [CW1, pp. 279-81].
TextI feel the desire to live, my dear Paillottet, when I read your account of your anxiety at the news of my death.365 Thank heaven, I am not dead, not even more seriously ill. This morning, I saw a doctor who is going to try to rid me, at least for a few minutes, of this pain in my throat, whose constancy is so distressing. But in any case, if this news had been true, you would have had to accept it and be resigned to it. I would like all my friends to acquire [280] the philosophy I have myself acquired in this respect. I assure you that I will yield my last breath with no regret and almost with joy, if I could be sure to leave behind me, to those who love me, no searing regrets but a sweet, affectionate, and slightly melancholic memory. When I am no longer ill, this is what I will prepare them for. . . .
I do not know how long the current legislation on the press and obligatory signatures will last.366 In the meantime, here is a good opportunity for our friends to make an honorable name for themselves in the press. I have noted with pleasure the articles by Garnier, well thought out and carefully written, and in which you see that he does not want to compromise the honor of the teaching profession. I urge him to continue. From all points of view, the situation is opportune. He can establish a fine position for himself by disseminating a doctrine in favor of which public sympathy is ready to be aroused. Tell him from me that, if the occasion arises, he should not allow either M. de Saint-Chamans or anyone else to identify my position with that of M. Benoist d’Azy with regard to tariffs. There are three essential differences between us:
- 1. First, although it is true that I am driven by the love of my region, this is not the same thing as being driven by the love of money.
- 2. Everything I have inherited and all my worldly assets are protected by our tariffs. Therefore, the more M. de Saint-Chamans deems me to be self-seeking, the more he has to consider me sincere when I state that protectionism is a plague.
- 3. But what totally precludes the protectionists’ position in the Assembly from being identified with that of the free traders is the abyss that separates their demands. What M. Benoist d’Azy is asking of the law is that it should fleece me for his benefit. What I ask of the law is that it should be neutral between us and that it should guarantee my property in the same way as that of the blacksmith.
From what La Patrie appears to say, Molinari is responsible for a party that is livelier and more salient. For heaven’s sake, let him not treat it lightly. How much good might he not do by showing how many leaflets there are [281] that are unknowingly steeped in socialism! How could he have let pass the article in Le National on the book by Ledru-Rollin and these sentences?367
“In England, there are ten monopolies stacked one on top of the other; therefore it is free competition that is doing all the harm.”
“England is enjoying a precarious prosperity only because it is based on injustice. For this reason, if England returns to the ways of justice, as Cobden is proposing, her economic decline is inevitable.”
And it is for having made these great discoveries that the National has awarded Ledru-Rollin the title of Great Statesman!
Farewell, I am tired.
Letter 213 to M. Soustra (Pisa, 12 Oct. 1850)↩
SourceLetter 213. Pisa, 12 Oct. 1850. Letter to M. Soustra, in P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905), pp. 225-27). [CW4]
Editor's IntroductionBastiat was surprised and hurt by the poor reception his book on Economic Harmonies received, even by his colleagues in the Political Economy Society, when it appeared in print in January 1850. This should not have surprised him as he had published a number of articles which later became chapters in Economic Harmonies , such as the articles on competition 77 and population 78 in 1846, the opening chapters of Economic Harmonies in the JDE in January, September, and December 1848, 79 and two pieces on rent in 1849. 80 So he knew his very different views on the Malthusian population trap, the Ricardian theory of rent, and the orthodox view of the nature of value had upset some of the other economists and that they had expressed their reservations in personal conversations and at meetings of the Political Economy Society several times. 81
The Journal des Économistes was slow to publish a review of his book perhaps knowing that it would hurt Bastiat especially as his health was rapidly deteriorating. His friend Ambroise Clément 82 reviewed it some six months after it had appeared in print which was rather unusual as the JDE was quick to bring new books to the attention of its readers. 83 After making some brief remarks about his skill as a writer and complimenting him on his chapters of "Natural and Artificial organisation" and "Exchange" Clément attacked as "graves erreurs" (grave errors) Bastiat's opinions on several key issues, namely his rejection of Malthusian population theory, his rejection of the idea that land and other raw materials create "unearned" income for the owner, and his new argument value is created by the reciprocal exchange of "service for service." 84 In a posthumous review of the second enlarged edition (which appeared in July 1851) in the JDE in August 1851 Joseph Garnier 85 reprimanded Bastiat for continuing to ignore "the masters" of political economy (as well as his colleagues) whose views on value and land rent he rejected. 86 Garnier had hoped Bastiat might have left some notes or drafts written during his final year to address these criticisms. But he did not.
Another close friend, Gustave de Molinari, shared Garnier's criticism of Bastiat's theories in the obituary he wrote for the JDE which appeared in February 1851. 87 He considered Bastiat's attempts to rethink Ricardo's and Malthus' ideas to be "fâcheuse" (unfortunate), that his reformulation of the theory of value as the exchange of "service for service" a mere play on words, and that ultimately Bastiat was a popularizer of economic ideas like Benjamin Franklin, rather than an innovative theorist like J.B. Say. 88 Among his professional colleagues, only Michel Chevalier thought highly of it.
In several other letters Bastiat's expresses his frustration with the responses of what he called "middle-aged men (who) do not easily abandon well-entrenched and long-held ideas" and sadly came to believe that he was only speaking to a future generation of thinkers who might understand his ideas and develop them further. 89
This letter also gives an interesting insight into Bastiat's very critical views about the practice of journalism in France. His series of witty and clever articles known as the "economic sophisms" showed that in just a few years (1844-48) Bastiat had become a master of the craft of journalism becoming perhaps one of the greatest economic journalists who has ever lived. Many of his friends and colleagues were also journalists so he knew the profession very well.
Text… My dear Soustra, 90 don't think that the indifference shown by the journals towards my book has affected me very much. What has affected me a little (and again I begin to bore myself by talking about it) is the impossibility of seeing myself continuing to work on it. As for journalism, I have seen it too close up. It is a trade, the most trade-like thing imaginable. A man overburdened with tasks, who does not have time to read, who cannot and will not correct his ideas, who has a party line to follow, runs the business. Five or six beardless youths, who are crassly ignorant, who have no other skill than knowing how to turn a nice phrase, compose the article line by line. They never read, they never study, and they attach no importance even to the things they write. One can only compare them to a student doing his homework. Such is the Parisian press, with only a very few exceptions. Also, the signature of a well-known author confuses them. If this system can be helped, it will renew the blood of journalism which it needs very much.
Whatever the case may be, upon reflexion, I understand that in our present time, few of these young writers have been able to penetrate very far in understanding enough of my theory to review it. I would be consoled on the day when some pen or another has grasped the key idea, because then I would be sure that it has not been lost. My regret is that I have left this work in draft form. 91 There remains a lot for me to do, but this work demands strength …
77 Bastiat,"On Competition,"which first appeared in l'Encyclopédie du dix-neuvième siècle (no date given) and then rewritten with a very different first half for the JDE , May 1846. It was then revised again and appeared as Chap. X "Competition" in the first edition of Economic Harmonies . See below, pp. 000.
78 Bastiat, "Population" which first appeared in Encyclopédie du dix-neuvième siècle (probably mid-1846) and then republished as "On Population" in JDE , Oct. 1846. A revised version of this article appeared as chap. 16 in the 2nd, posthumous edition of Economic Harmonies (1851), with extensive explanatory notes by Fontenay. See below, pp. 000.
79 Bastiat, "Natural and Artificial Organisation", JDE , January 1848, which was republished with minor changes as the opening to the 1st edition of EH ; "Economic Harmonies: I., II., and III. The Needs of Man" JDE , 1 Sept. 1848 and "Economic Harmonies IV", JDE , 15 Dec. 1848. These 4 articles on "Economic Harmonies" were slightly changed and appeared as chapters 1-3 in the 1st edition of EH . See below, pp. 000.
80 Bastiat, Capital and Rent (published as a pamphlet in February 1849), and his lengthy discussion with Proudhon on Free Credit which appeared between October 1849 and March 1850. See below, pp. 000.
81 See in particular the discussion of Bastiat's ideas on land credit and rent in the April 10, 1850 meeting of the Political Economy Society, as reported in the JDE , 15 April 1850, T. XXVI, pp. 99-101. See below, pp. 000.
82 Ambroise Clément (1805-86) was an economist and secretary to the mayor of Saint-Étienne for many years. He was a member of the PES from 1848, a regular writer and reviewer for the JDE , and was made a corresponding member of the Académie des sciences morales et politiques in 1872.
83 Harmonies économiques , par M. Frédéric Bastiat. (Compte-rendu par M.A. Clément), JDE , T. 26, N° 111, 15 June 1850, pp. 235-47.
84 See the glossary entry on "Service for Service."
85 Joseph Garnier (1813-81) was a professor, journalist, politician, and activist for free trade and peace. He was appointed the first professor of political economy at the École des ponts et chaussées in 1846 and was one of the leading exponents of Malthusian population theory. Garnier was one of the founders of L'Association pour la liberté des échanges and (with Bastiat) of the 1848 liberal broadsheet Jacques Bonhomme .
86 "La deuxième édition des Harmonies économiques de Frédéric Bastiat," par M. Joseph Garnier, JDE , T. 29, N° 124, 15 August 1851, pp. 312-16.
87 Molinari, "Nécrologie. Frédéric Bastiat, notice sur sa vie et ses écrits," JDE , T. 28, N° 118, 15 février 1851, pp. 180-96.
88 Molinari, "Nécrologie," pp. 195-96.
89 See Letter 180 To Fontenay 3 July 1850, CW1, p255-56. Also, Letter 158 to Félix Coudroy (Jan. 1850), Letter 167 To Prosper Paillottet (19 May 1850), Letter 174 To Hortense Cheuvreux (15 June 1850), Letter 175 To Prosper Paillottet (23 June 1850), Letter 180 To Fontenay (3 July 1850), Letter 181 To Hortense Cheuvreux (4 July 1850), Letter 182 To Horace Say (4 July 1850), Letter 184 To Casimir Cheuvreux (14 July 1850), Letter 185 To Richard Cobden (3 Aug. 1850), Letter 188 To Richard Cobden (9 Sept. 1850), Letter 196 To Bernard Domenger (8 Oct. 1850), Letter 203 To Félix Coudroy (11 Nov. 1850), Letter 206 To Prosper Paillottet (8 Dec. 1850), Letter 209 Bastiat's long letter to JDE (no date).
90 Nothing is known about M. Soustra other than Ronce describes him as one of Bastiat's friends.
91 By the end of 1849 Bastiat had completed 10 chapters of a much longer work and decided to published what he had as Economic Harmonies . This appeared in print in January 1850. He died before he could complete his project and his friends Prosper Paillotttet and Roger de Fontenay edited his papers and published a longer second edition of the work with 25 chapters in July 1851.
Letter 198. Pisa, 14 Oct. 1850. To Madame Cheuvreux↩
SourceLetter 198. Pisa, 14 Oct. 1850. To Madame Cheuvreux (CH, pp. 124-27) [CW1, pp. 281-82].
TextAt last! If nothing has upset your plans, if there has not been a coup d’état in Paris, if Mlle Louise has not been overcome by some cursed indisposition or M. Cheuvreux by a migraine, if he has settled his affairs with his court, if . . . if you have now taken the first step, the most difficult one, the one that costs the most, you will be on the railway en route for Tonnerre. Each evening, I will be able to say: “There are fifty leagues fewer between us.” Oh, how happy our descendants will be to have electric telegraphs which will tell them: “Departure took place one minute ago.” And now, madam, why are wishes based on friendship totally useless? If mine could be heard, your journey would be just a series of pleasant impressions; you would have beautiful sunshine as a constant companion, not to mention pleasant meetings all along your way. Mlle Louise would feel her strength increasing hourly and her gaiety and friendly interest in everything would not flag for a minute. This disposition would be caught by her father and mother, and this is how you would reach Marseilles. There, you would find a mirror-like sea, quarantine waived, etc. But all the wishes in the world will not prevent your having chosen a date for your departure that greatly increases the difficulties of your journey. This is somewhat due to my bad reputation. You are so convinced, having constantly repeated it, that I do not know my left from my right, your convictions in this respect are so deeply rooted, that I am taken to be totally [282] incapable of properly executing the slightest maneuver, let alone of advising others. This is why you have not read a single word of what I have written on this subject. From what you say, it is as clear as daylight that you have leaped with both feet over all the passages in my letters where I set myself up as an adviser. However, it is pointless going over this again, since this advice, presuming you take account of it, will arrive too late.
Instead of a good French mail boat, will you not have a small Sardinian boat, loaded with goods, crowded with all kinds of passengers subject neither to control nor discipline, where the second-class passengers invade the first-class seats and come to smoke under the noses of women? No complaint can be made, least of all to the captain, since he sets the example of breaking all the rules. At least, this pilgrimage is beginning by the grace of God and it has to end under the same auspices.
Very dear madam, how can I end this letter without begging a pardon of which I am in great need? I have complained loudly of your silence; I was very ungrateful and very unjust, since I have received more letters, not than I wished but than I dared to hope for. The only thing was that the first was delayed and was a little laconic, and this was the cause of all this noise. Please be indulgent toward the complaints of patients: people with your goodness pity and excuse them but do not become annoyed by them.
Letter 199. Pisa, 18 Oct. 1850. To Richard Cobden↩
SourceLetter 199. Pisa, 18 Oct. 1850. To Richard Cobden (OC1, pp. 192-3) [CW1, pp. 282-83].
TextMy dear Cobden, thank you for the interest you take in my health. I cannot say whether it is better or worse. Its progress is so imperceptible that I scarcely know the fate to which it is leading me. All that I ask of the heavens now is that the tubes that go from my mouth to my lungs and stomach do not become more painful. I have never given thought to the immense role they play in our lives. Drinking, eating, breathing, talking, all pass through them. If they do not work, we die; if they work badly it is very much worse.
The first sight of Italy, and in particular of Tuscany, has not had the same effect on me as it had on you.368 This is not surprising; you arrived here in [283] triumph after having made the human race take one of its most remarkable steps forward. You were welcomed and feted by all the most enlightened and liberal men in the country who love the public good; you saw Tuscany from the summit. For my part, I have entered it from the opposite extreme; all my contacts up to now have been with boatmen, coachmen, waiters in inns, beggars, and facchini,369 who constitute the most rapacious, tenacious, and abject race of men you could ever meet. I often tell myself that we should not be quick to judge and that very probably my interior disposition clouds my view of things. It is true that it is very difficult for a man who cannot speak and who can scarcely stand upright not to be very irritable, and therefore unjust. However, my friend, I do not think I am mistaken in saying this: when men disregard their dignity, when they acknowledge no other law than carelessness, and when they refuse to submit to any form of order or voluntary discipline, there is no hope. Here men are very well disposed to one another, and this disposition is taken to such lengths that it becomes a fault and an insuperable obstacle to any serious attempt to achieve independence and freedom. In the streets, in steamboats, on the railway, you will constantly see rules being flouted. People smoke where it is forbidden to do so, second-class passengers invade first class, and those that have not paid take the places of those who have. These are accepted events that do not annoy anyone, not even their victims. They seem to say: he has dared to do this, he was right and I would do as much in his place. As for officialdom and police constables and captains, how can they ensure that the rules are respected when they are always the first to break them?
Nevertheless, my dear Cobden, do not take these words for more than the tirade of a misanthropist. In the evening of the day before yesterday, boredom took me to Florence. I arrived at three o’clock in the afternoon. As I had no other luggage than an overnight bag, no one wanted to allow me into his hotel. I was overcome with tiredness and could not explain my situation since my voice had gone. Finally, in a more hospitable inn, I was given a cold, dark room in the attic. For this reason, yesterday I was in a hurry to leave this city of flowers, which for me had been just a city of worries. However, I did have the pleasure of meeting the marquis de Ridolfi. We talked a great deal about you. Later, if my vocal cords recover some of their sound, I will return to reconcile myself with the city of the Medici.
Letter 200. Pisa, 20 Oct. 1850. To Horace Say↩
SourceLetter 200. Pisa, 20 Oct. 1850. To Horace Say (OC1, pp. 201-3) [CW1, pp. 284-85].
TextMy dear friend, we wrote to each other at almost the same time on the day of the monthly dinner, which made our letters cross between Paris and Pisa. Since then, I have noticed no change, either for better or for worse, in my illness. Only, the feeling of pain is wearing because of its constancy. Weakness, isolation, and boredom I could overcome, if only it were not for this cursed tearing in the throat which makes all the numerous and essential functions that pass through it so painful. Oh, how much I would like to have one day of respite! But all the invocations on earth are powerless. From the strange dreams I have and the perspiration that always follows sleep, I can see that I have a slight fever every night. However, since I do not cough any more than before, I think that this fever is rather an effect of my continuous state of indisposition than a symptom of a constitutional illness.
. . . I believe in fact that political economy is more widely known here than in France because it is included in the law. It is a great thing to give a gloss of this science to the men who are more or less closely concerned with the execution of the laws, since these men contribute greatly to their drafting and in addition they form the basis of what is known as the enlightened class. I have no hope of seeing political economy taking root in the school of law in France. In this connection, the blindness of governments is incomprehensible. They do not want us to teach the only approach to economic science that guarantees them durability and stability. Is it not typical that the minister of trade and the minister of education, by passing me from one to the other like a ball, have effectively refused me a location in which to give lectures free of charge?
Since you are our cappoletto, our leader, you ought to indoctrinate our friends Garnier and Molinari in order that they take advantage of this unique occasion of the signature370 which, whatever people say, is giving dignity to the newspaper. It is up to them, I believe, to give La Patrie something it has never had, which is color and character. They will have to act with great prudence and circumspection, since the paper is not an économiste publication either with respect to its director, its shareholders, or its subscribers. Its cachet should become apparent only gradually. I believe that our friends should not act as though they were in an overtly économiste journal and one [285] which displayed the flag. This would be to cross swords with our opponents. But in La Patrie the tactic should not be the same. First of all, questions of free trade should be discussed only now and then, in particular the most controversial (such as the laws on navigation). It would be better to deal with the question on a higher plane, one that embraces politics, political economy, and socialism at the same time, that is to say, state intervention. In my view, they should also not put forward nonintervention as a theory or set of principles. All they should do is draw the attention of the reader to it each time the opportunity arises. In order not to generate mistrust, their role is to show for each individual case the advantages and disadvantages of intervention. Why should we hide the advantages? There have to be some if this intervention is so popular. They will therefore have to admit that, when there is good to be done or an evil to be combated, a call for government enforcement appears at first to be the shortest, most economic and effective means. In this very respect, in their place, I would show myself to be very broad-minded and conciliatory to government supporters, since they are very numerous and it is less a question of refuting them than winning them over. But after having acknowledged the immediate advantages, I would draw their attention to later disadvantages. I would say: This is how new functions, new civil servants, new taxes, new sources of discontent, and new financial problems are created. Then, by substituting government enforcement for private activity, are we not removing the intrinsic value of individuality and the means of acquiring it? Are we not making all citizens into men who do not know how to act individually, take a decision, and repulse unexpected events and surprise attacks? Are we not preparing elements of society for socialism, which is nothing other than one man’s thought taking the place of everyone else’s will?
If the various special questions that may arise are discussed from this point of view with impartiality, with the arguments for and against being correctly made, I believe that the public would take a greater interest in them and would soon recognize the true cause of our misfortunes. M. Dumas’ circulars provide a good text to start with.
Farewell, my dear friend, would you believe that I am tired from having scribbled these few lines? However, I still have the strength to ask you to remember me to Mme Say and Léon.
Letter 201. Pisa, 28 Oct. 1850. To M. le Comte Arrivabene↩
SourceLetter 201. Pisa, 28 Oct. 1850. To M. le Comte Arrivabene (OC7, pp. 419-20) [CW1, p. 286].
TextI was profoundly touched, my dear sir, by the quite unforced and tactful interest you have shown me in sending me a letter of introduction to Mme Primi. You accurately guessed what suits my position and, above all, my character and I must admit that not only Tuscany but paradise as well would have less attraction for me if I did not meet a friendly soul there. You can therefore imagine with what enthusiasm I would have met Mme Primi. Unfortunately, she is away on holiday and I very much fear that I will have no further opportunity to pay her my respects as I am planning to move my quarters to Rome for the coming winter. It is exactly the need for a few friends that has persuaded me to do this. In Rome, I will meet one of my relatives, an excellent priest, and M. Say’s brother-in-law with his family.371 Not being able to frequent society and, what is much worse, not being able to work, I would be faced with enforced isolation and idleness, unbearable without a few friends willing to bear with me and my miseries.
All that you tell me about Mme Primi and her sister makes me very much regret missing this opportunity of making their acquaintance. If I am better in the spring, I will probably be going through Tuscany again on my return to France, since you can scarcely avoid examining a region that has such interesting institutions and history when you have undergone so much to come here. In this case, I will compensate for the disappointment that my sudden departure has given me today.
I remember that at our last meeting in Paris, you spoke to me of M. Gioberti. I have been to see him and am in debt to him for some excellent recommendations for which my gratitude extends to you.
your devoted servant,
Letter 202. Pisa, 29 Oct. 1850. To Madame Cheuvreux↩
SourceLetter 202. Pisa, 29 Oct. 1850. To Madame Cheuvreux (CH, pp. 127-30) [CW1, pp. 287-88].
TextHow difficult your journey from Florence to Rome must have been!372 In spite of that philosophical strength with which you encounter setbacks, in spite of the good humor that each one of you will have brought to the company, it is not possible for you not to have suffered from such terrible weather, traveling on potholed roads and in a region with no resources. My imagination scarcely dares follow you in this odyssey; all M. Sturler’s forecasts rise up before it. However, how I bless the happy inspiration that made you take the sea route in Marseilles on the 19th! Two days later, the crossing became dangerous as the Mediterranean became rough enough to disrupt all the services, and when the boat that followed you arrived in Genoa, it was not able to reach Leghorn. It abandoned the journey at La Spezzia, where it put its passengers ashore. You escaped these perils, thank heaven, and this idea comforts me a little in the face of your current deprivations which, fortunately, will end this evening. The sight of the Eternal City makes you forget everything. I am counting on arriving in this Eternal City on Saturday, 2 November. I will leave Leghorn by the state mail boat (tempo permettendo) and you will understand why I will not be stopping in Civitavecchia.
Dear madam, let us not talk about my health; this is a sonata which I will have ample time to deafen you with in Rome. When I think that you have come to provide your husband and especially your daughter with pleasures and amusements, I have some remorse in leaping into your midst like some killjoy, since I am fully aware that for a long time I have been turning to Victor Hugo and his “Last Days of a Condemned Man,” which is not much fun for my friends. I still find Victor Hugo’s hero very fortunate, since he could at least think and speak; he was in the same situation as Socrates, so why did he not have the same attitude to things?
This small book that I asked you for shows us this Athenian philosopher, condemned to death, speaking about his soul and future. Socrates, however, was a pagan and reduced to creating for himself uncertain hopes through a process of reason. A condemned man who is a Christian does not have to [288] go down this road. Revelation spares him this, and his point of departure is precisely this hope, become a certainty, which was a conclusion for Socrates. This is why Victor Hugo’s condemned man is just a coward. Is it not better to have in front of one a single month of strength and health, one month of vigor in body and soul with hemlock at the end, rather than one or two years of decline, increasing weakness and distaste, during which every link breaks and nature no longer appears to do other than detach one from earthly existence? In fact, however, it is for God to ordain and for us to be resigned.
I really think that I am a little better; I have been able to spend quite long sessions with M. Mure and in addition I have received a great many visits.
Paillottet has written to me. He is always the same person, good, obliging, devoted, and, what is more, unaffected, which is rather rare in Paris. My family has also given me news of itself.
Farewell, dear Mme Cheuvreux, till Saturday or Sunday. In the meantime, please assure M. Cheuvreux and your daughter of my wholehearted friendship, not forgetting the captain, and please express my compliments and respects to M. Edouard and Mme Bertin.
Letter 214 to Paillottet (Rome, 8 Nov. 1850)↩
SourceLetter 214. Rome, 8 Nov. 1850. Letter to Paillottet in P. Ronce, Frédéric Bastiat. Sa vie, son oeuvre (Paris: Guillaumin, 1905), pp. 260-61). [CW4]
Editor's IntroductionRonce tells us that Bastiat's spirits were lifted by the early arrival of his friends from Paris, the Cheuvreux and Bertin 92 families, to Pisa on October 22. He felt well enough to spend a day or so travelling with them to Florence. The Cheuvreux then accompanied him to Rome where he would remain until his death. He relates to Paillottet how he now suffers from boredom as he is no longer able to work on projects like rewriting his pamphlet on "Parliamentary Conflicts of Interest" (March, 1849) which the Guillaumin publishers wanted to reprint.
One interesting fact we learn from the letter is that, even at this very late stage in his illness, Bastiat still has the capacity to joke and laugh at himself, on this occasion a joke about the inefficiency of the "Roman Revenue Service" and "the seen and the unseen."
TextIt would give me great pleasure to write to you, my dear Paillottet, a long letter. But I will have to content myself (and perhaps you as well) with a short one in the style of Girardin, 93 because even though I could write for a long time I would have to confront my great physical difficulties.
I am very happy to have come to Rome where I enjoy the loving and constant care of the Cheuvreux family. Furthermore, I have been able to shake off a second illness which was growing upon the first one while I was in Pisa. It goes by the name of boredom . At last, I have had the good fortune to find here a close relative and friend (Eugène de Monclar). You can see how pleased I am with my move here. However, I ought to say that my larynx 94 does not appear ready to move into the next phase of convalescence.
You can tell Guillaumin to go ahead and reprint my pamphlet "Parliamentary Conflicts of Interests" 95 and that I approve of the measures you have taken together. However, don't think that if I were not prevented from doing so, I wouldn't resist correcting the pamphlet. I would want to cut the first part, lengthen all the examples I gave on the constitutional history of Britain, and above all correct something which I attributed to M. Thiers. 96 I was so angry to have made this mistake that, when the public discussion of it was taking place, I would have retracted my statement from the rostrum, if I hadn't forgotten to do so. But let us not dwell on the impossible.
As for the book by Carey, send it to me when and as you can. 97 If Guillaumin had some contacts in the French embassy, this way of contacting me would be convenient. As for the other matters, getting copies of the Journal des Économistes costs me in Tuscany no more than a standard letter. I don't know what it is like in the Roman States. But sending it via the Embassy is more convenient from the point of view of security than that of cheapness.
Concerning the delivery of letters, I have just learned that those which come from France in envelopes cost double. This is absurd, but it is true. If you fold it and seal it in the old fashioned manner you would save me 75 centimes that I can see and which the Roman Fisc (revenue service) does not see . 98
Our dear friend Michel Chevalier 99 has not failed us in writing a strong review in favour of my book. 100 I plan to write to him to thank him for his article which, as you can imagine, has made me very happy.
Tell me about M. de Fontenay. Is he hard at work? What is he busy with? Perhaps he should avoid concentrating all his energy for too long on a single subject. Experience has shown many thinkers that a single object of study disappears in the face of too determined research. By examining several topics at once one can see the connections between them. When he has finished working on Capital , then could work hard on something else, like Wages , or this wonderful subject which I have been busy with, the importance of the consumer .
Farewell, my dear Paillottet. Don't don't forget to mention me to our friends, and give my news to Justin.
Your devoted friend.
92 Armand Bertin (1801-1854) was the son of François Bertin who founded Le Journal des débats. He began working for his father's journal in 1822, took over as editor when he died in 1841, and remained with it until his death. The journal became one of the leading journals in France with authors like Hector Berlioz, Chateaubriand, Victor Hugo writing for it. Politically it was rather conservative, opposing many liberal reforms during the July Monarchy . After 1848 it took a more moderate conservative position and economists like Michel Chevalier and Bastiat were able to have some essays published in it, most notably Bastiat's essay "The State" in September 1848, most likely because of their strong anti-socialist position.
93 Possibly a reference to Saint-Marc Girardin (1801-1873) who was a literary critic, professor of history at the Sorbonne (succeeding François Guizot), and a Deputy during the July Monarchy. During Bastiat's time he wrote multi-volume works on "passion in drama" and collections of criticism.
94 In his correspondence Bastiat complained about "un petit bouton" (a pimple or lump) in his larynx which made it difficult for him to swallow and talk. It might have been throat cancer. See, Letter 191. To Louise Cheuvreux (Sept. 14, 1850), CW1, p. 272.
95 It was written in March 1849 when the Chamber was debating whether or not public servants could also sit in the Chamber as elected representatives, and whether Ministers should be chosen from among the Deputies or outside the Chamber (Bastiat opposed both as "conflicts of interest"). It was also published as a pamphlet, Incompatibilités parlementaires (Parliamentary Conflicts of Interest) (1849). OC5, pp. 518-61; CW2.19, pp. 366-400. See also Bastiat's speeches in the Chamber on amending the electoral law, below, pp. 000.
96 Bastiat mentions Thiers on two occasions in the pamphlet, once on the matter of proposals for parliamentary reform, and once on colluding with Guizot to overthrow the government of Molé. It is not clear which one he is referring to here.
97 See note 000 above on the matter of Carey's charging Bastiat with plagiarism.
98 Even at this late stage in his illness Bastiat is able to joke about his well known theory of "the seen" and "the unseen."
99 Michel Chevalier (1806-87) was a liberal economist and alumnus of the École polytechnique and a Minister under Napoleon III. Initially a Saint-Simonist, he was appointed to the chair of political economy at the Collège de France in 1840 and became a senator in 1860. He was an admirer of Bastiat and Cobden and played a decisive role in the free trade treaty signed between France and England in 1860 (Chevalier was the signatory for France, while Cobden was the signatory for England).
100 We have not been able to locate this review by Chevalier.
Letter 203. Rome, 11 Nov. 1850. To Félix Coudroy↩
SourceLetter 203. Rome, 11 Nov. 1850. To Félix Coudroy (OC1, pp. 104-6) [CW1, pp. 288-89].
TextIf I put off writing to you from day to day, my dear Félix, it is because I always think that in a little while I will have the strength to indulge in a long chat. Instead of this, I am obliged to make my letters ever shorter, either because my weakness is increasing or because I am losing the habit of writing. Here I am in the Eternal City, my friend, unfortunately very little disposed to visit its marvels. I am infinitely better than in Pisa, surrounded by excellent friends who wrap me in the most affectionate solicitude. What is more, I have met Eugene again and he comes to spend part of the day with me. So, if I go out, I can always give my walks an interesting aim. I would ask for one thing only, and that is to be relieved of this piercing pain in the larynx; this constant suffering distresses me. Meals are genuine torture for me. Speaking, drinking, eating, swallowing saliva, and coughing are all painful operations. A stroll on foot tires me and an outing in a carriage irritates my throat; I cannot work nor even read seriously. You see the state to which I am reduced. Truly, I will soon be just a corpse that has retained the faculty of suffering. I hope that the treatment that I have decided to undergo, the [289] remedies I am given, and the gentleness of the climate will improve my deplorable situation soon.
My friend, I will speak only vaguely about one of the subjects you have discussed with me. I had already thought about this, and among my papers there should be some outlines of articles in the form of letters addressed to you. If my health returns and I am able to write the second volume of the Harmonies, I will dedicate it to you. If not, I will insert a short dedication in the second edition of the first volume. In the second of these cases, which will imply the end of my career, I will be able to set out my plan to you and bequeath to you the mission of completing it.
Here we have trouble getting papers. I have come across an old one, from the time when people were enthusiastic about improving the lot of the working classes. The future of workers, the condition of workers, and the eternal virtues of workers formed the text of all the books, pamphlets, reviews, or journals. And to think that these are the same writers who shower the people with insults, committed as they are to one of the three dynasties that are fighting over our poor France, and who are wholly responsible for this bad situation. Can you think of anything more dismal?
Thank you for having sent some biographical information to M. Paillottet. My life is of no interest to the general public, except for the circumstances that drew me out of Mugron. If I had known that people were interested in this account, I would have related this interesting fact.
Farewell, my dear Félix; unless I am completely unable to travel or completely cured, I am counting on spending the month of April in Mugron, since I have been forbidden to return to Paris before May. I groan at not being able to fulfill my duties as a representative, but it is unfortunately clear that it is not my fault. In Italy as well as in Spain, we often see how little influence external devotion has on morals.
Please remember me to all our friends and give news of me to my aunt. Please assure your sister of my friendship.
Letter 204. Rome, 26 Nov. 1850. To M. Paillottet↩
SourceLetter 204. Rome, 26 Nov. 1850. To M. Paillottet (OC1, pp. 206-7) [CW1, pp. 290-91].
TextMy dear Paillottet, each time I receive a letter from Paris, it seems to me that my correspondents are Toinettes and that I am Argan:373
The cheeky girl has claimed for an entire hour that I was not ill! You know, my love, what is really the case.
All of you are taking a friendly interest in my illness, but you then treat me as a healthy man. You plan things for me to do, you ask my opinion on various serious subjects, and then you tell me just to write you a few lines. I would have liked you to have included the secret of saying everything in a few words, along with your advice, in your letter. How can I discuss the parliamentary conflicts of interest with you, the corrections to be made to it, and the reasons that make me think that this subject cannot be combined, either in substance or form, with the speech on the tax on wines and spirits—all of this in a single line? And then I have to say something about Carey, since you are sending me his proofs here in Tuscany—and the Harmonies, since you tell me that the current edition is out of print.374
In your fine letter, which I received today, you express the fear that, at the sight of Rome, I will be overcome with enthusiasm and that this will undermine my healing by shattering my nerves. In this, you are still assuming that I am a healthy man. You should understand, my friend, that there are two reasons, which are just as strong as each other, that Rome’s monuments do not trigger an outburst of dangerous enthusiasm in me. The first is that I do not see any of these monuments, since I am more or less confined to my room, surrounded by ashes and coffeepots; the second is that the source of enthusiasm has completely dried up in me, since all the strength of my concentration and imagination are centered on the means of swallowing a little food or drink and getting a little sleep between two coughing fits.
In spite of my writing to Florence, I have no news of Carey’s proofs.375 God alone knows when they will arrive.
[291]Farewell; I will end abruptly. I would have a thousand things to say to you for M. and Mme Planat, M. de Fontenay, and M. Manin. Shortly, when I am better, I will chat longer with you. Now, it is all I can do to reach this page.
Letter 205. Rome, 28 Nov. 1850. To M. Domenger↩
SourceLetter 205. Rome, 28 Nov. 1850. To M. Domenger (OC7, pp. 410-12) [CW1, pp. 291-92].
TextI am very happy to have come to Rome where I have found a degree of medical treatment as well as some medicines; I do not know how I would have got on in Pisa. My throat has become so painful that just eating and drinking has become a major operation. Special preparations have to be made for me, and for this my friends have been very useful to me. I cannot say whether I am better. I do not notice any change from one day to the other, but if I compare myself on a month to month basis, I cannot avoid noticing a definite gradual weakening. May I have the strength in February, my dear D., to return to Mugron! However much the virtues of the climate are praised, they cannot replace home. Besides, I envisage two outcomes for my illness, a cure or the final conclusion. If I have to die, I would like to be laid to rest in the common resting place in which my friends and parents lie. I would like our circle of friends to accompany me to this final resting place and our excellent parish priest in Mugron to say for me this sublime request: “Lux perpetua luceat ei!”377 etc., etc. Also, if I can, I intend to take advantage of the fine days of February to go to Marseilles, where Justin can come to fetch me.
If ever I return home, it will be a very sharp disappointment to have spent several months in Rome and not seen anything. I have visited Saint Peter’s only, because its temperature never changes. I limit myself to taking the sun every day on Mount Pincio, where I cannot stay very long because there are no benches. I will therefore have seen Rome only as the crow flies. In spite of this, you always gain some information through reading, conversation, and [292] the atmosphere. What strikes me the most is the solidity of the Christian tradition and the abundance of irrefutable evidence of this.
My friend, the recent political outcome has given me much pleasure, since it gives some respite to our France. It seems to have justified totally my line of conduct. At the first elections, I promised to give an honest Republic a loyal trial, and I am sure that this was the general wish. For one reason or another, priests, nobles, and plebeians were in agreement on this although with different expectations. The Legitimists and Orleanists disappeared completely as such. But what happened? As soon as they were able, they began to belittle, cheat, calumniate, and embarrass the Republic in favor of Legitimism, Orleanism, or Bonapartism. All of this has failed, and now they are doing what they promised to do, which is what I have done and from which they diverged for two years. They have caused commotion in France for no good reason.
I was very mistaken, I admit, to talk to you as I did about Mesdames X——. I was under the influence of the idea that devotion, when it takes charge of detailed practices, overlooks genuine morals, and I had striking examples of this in view. But it is certain that this was nothing to do with these ladies.
Letter 206. Rome, 8 Dec. 1850. To M. Paillottet↩
SourceLetter 206. Rome, 8 Dec. 1850. To M. Paillottet (OC1, pp. 207-9; also CH, pp. 130-32) [CW1, pp. 292-94].
TextDear Paillottet, Am I better? I cannot say; I feel constantly weaker. My friends think that my strength is returning. Who is right?
The Cheuvreux family is leaving Rome immediately because of Mme Girard’s illness. You can imagine my sorrow. I like to think that it is above all because of the sorrow of such very good friends, but certainly more selfish motives have the upper hand.
Quite providentially, yesterday I wrote to my family asking them to send me a sort of Michel-Morin, a man full of gaiety and also resourceful, a coachman, cook, etc., etc., who has often served me and who is totally devoted to me. As soon as he arrives, I will be free to leave whenever I like for France. For you have to know that the doctor and my friends have taken a solemn decision on this matter. They consider that the nature of my illness has created so many problems that all the advantages of the climate do not outweigh the care provided at home. Given these opinions, my dear Paillottet, you will not be coming to Rome to carry out works of mercy for me. The [293] affection you have shown me is such that you will be annoyed by this, I am sure. But console yourself with the thought that, because of the nature of my illness, you would have been able to do very little for me other than coming to keep me company for two hours a day, something that is more pleasant than reasonable. I would have liked to be able to give you some explanation of this. But heavens above! To explain would require a great deal of writing and I cannot do this. My friend, in a multitude of ways I am undergoing the torture of Tantalus. Here is a new example: I would like to express my thoughts to you in detail and I have not the strength. . . .
What you and Guillaumin will have done for the conflicts of interest378 will be well done.
As for the Carey matter,379 I must admit that it seems a little odd to me. On the one hand, Garnier has announced that the journal has taken the side of property and monopoly. On the other, Guillaumin tells me that M. Clément is going to take part in the conflict. If Le Journal des économistes wants to punish me for having treated a question in economic science independently, it is not very generous of it to choose a time when I am on my sickbed, unable to read, write, or think and seeking to retain at least the ability to eat, drink, and sleep which is escaping me.
As I feel that I cannot take up the conflict, I have added to my reply to Carey a few considerations addressed to Le Journal des économistes. Let me know how they have been received.
Will Fontenay then never be ready to enter the arena? He must understand how much I would need his assistance. Garnier says, “We have the support of Smith, Ricardo, Malthus, J. B. Say, Rossi, and all the economists except for Carey and Bastiat.” I very much hope that belief in the legitimacy [294] of landed property will soon find other defenders and I am especially counting on Fontenay.
Please write to Michel Chevalier to tell him how grateful I am for his excellent article on my book. His only fault is to be too benevolent and to leave too little room for criticism. Tell Chevalier that I am waiting only for a little strength to return to convey to him myself my deep gratitude. I sincerely hope that he will inherit M. Droz’s380 chair; this would be no more than belated justice.
Letter 207. Rome, 14, 15, 16, 17 Dec. 1850. To Madame Cheuvreux↩
SourceLetter 207. Rome, 14, 15, 16, 17 Dec. 1850. To Madame Cheuvreux (CH, pp. 132-35) [CW1, pp. 294-95].
TextI hope to sit on occasion at this desk, adding one line to another to send you a souvenir.
I have never been so close to nothingness and I would like to be all-powerful in order to make the sea as calm as a lake.
What emotions and duties await you in Paris! My only consolation is for you to tell me that you are ready, with courageous energy, to go down the road that God will have prepared for you, however painful it is.
My health remains the same. If I started to speak about it, it would be through a series of small details only, which would not be of any importance the following day.
Basically, I think Doctor Lacauchy is right not to listen to a word I say.
I am very pleased to think that M. Cheuvreux will shortly be seeing our excellent, all too excellent friend, Paillottet, and will persuade him to abandon an act of devotion that is now totally unnecessary. I very much fear that his presence in Paris will be absolutely essential for me if the Harmonies are reprinted. I cannot be involved with this and everything will be on his shoulders.381
[295]Sunday, 15 December
Here you are in Genoa and with just a little more patience you will be in France. It is five o’clock, the time you used to come to see me. Then I knew what gallery Mlle Louise had visited, what ruin or painting had interested her. This was a ray of sunshine in my life. Everything is ended, I am alone for twenty-four hours a day, except for the two visits from my cousin, de Monclar. The time to which I am referring has become bitter because it used to be too sweet; you proved to me with the scientific approach of your father that I was right to be the most grumpy, stupid, irritable, and often the most unjust of men. Besides, I think that I am learning resignation and am acquiring a certain taste for it.
Monday, 16 December
When Joseph came to say goodbye, the poor man dissolved into thanks. Alas! No one owes me any thanks and I owe them to everyone, especially to Joseph, who has been such a help to me.
A new discovery! A sudden movement removed all breath from me. With one breath being unable to join another, the pain was unbearable. I have concluded that I will have to make all movements slowly like an automaton.
Tuesday, 17 December382
Paillottet has arrived. He has announced the dreadful news to me.383 Oh! You poor woman, poor child! You have received the most terrible and unexpected blow of all. How can you have borne it with a soul so little made for suffering? Louise will be able to control her sorrow better. Throw yourself into the arms of this divine strength, the only strength that can sustain you in such times of trial. May this strength never desert you. Dear friends, I do not have the fortitude to continue these disconnected words and fractured thoughts.
Farewell; in spite of my state of prostration, I still find bright sparks of sympathy for the misfortune that has come upon you.
Letter 208. Letter from Prosper Paillottet to Mme Cheuvreux, Rome, 22 Dec. 1850↩
SourceLetter 208. Letter from Prosper Paillottet to Mme Cheuvreux, Rome, 22 Dec. 1850 (CW1.208) (CH, pp. 135-39) [CW1, pp. 296-97].
TextI am settling a personal debt and carrying out the wishes of our friend in giving you news of him. You had few illusions when you left him, and yet you could not have imagined that his strength would have declined so rapidly. This decline is very noticeable since my arrival here. The poor invalid is aware of it and is pleased within himself, as though it were a favor from heaven to shorten his suffering.
At first he protested in word and gesture at what he called my folly. M. de Monclar and I had difficulty persuading him that this was the right thing to do. However, I soon realized that my presence was a consolation and I am infinitely grateful to you, madam, for having made it possible to give him this. “Since you have made this long journey, I am very glad that you are here,” he said to me on the third day. Besides, he never fails to ask me when I leave: “At what time will I see you tomorrow?”
This is how M. de Monclar, whose agreement I naturally sought, and I have divided his days. M. de Monclar visits him in the morning and leaves when I arrive, at half past eleven. I keep him company up to five o’clock in the afternoon, and after supper M. de Monclar returns.
It is an extremely painful spectacle that I am witnessing, but I would be very sorry, both through affection and duty, if I were not there. Death is almost always the third person present in our talks. Both he and I refrain from mentioning his name; he in order not to upset me and I in order not to give him the example of breaking down and weeping when he is such an example of courage. He is dying in fact just as I have always thought he ought to die, staring death in the face with total resignation.
The subjects we discuss are absent friends, among whom you and yours have the pride of place, followed by his beloved science, political economy, for which he has done so much and for which he would have wanted to do still more. I have no need to tell you that these discussions are very short and that I put my ear close to his lips from time to time. The few sentences he pronounces are received by me with a religious respect.
Yesterday, we went on an outing that enchanted him. Leaving by the Popolo [297] gate, we went to the ponte Molle and returned through the Angelica gate. The sites we saw were bathed in fine sunshine. He repeatedly said to me, “What a delightful outing! How successful we have been!” The serenity of the sky had entered his soul. He was expressing a final farewell to the splendors of nature, which had so often aroused his enthusiasm.
Since the 20th, he has made his confession. “I want,” he told me, “to die in the religion of my forefathers. I have always loved it, even though I have not followed its external practices.”
I am limiting myself to these few details and perhaps I should even apologize for sending them to you, when you are in the throes of the most legitimate affliction caused by the most cruel of losses.
I missed meeting you in Leghorn by a whisker, since it appears that we were there on the same day, as I later found out. Anyway, I was glad that this encounter did not take place, since you still had a shred of hope, which I would have found it difficult to remove from you.
Please convey, madam, my affectionate sentiments to M. Cheuvreux and I assure you and Mlle Louise of my homage and respectful devotion.
Letter 209. Undated letter, "Les Harmonies économiques. Lettre de M. Carey; réponse de MM. Frédéric Bastiat et A. Clément"↩
SourceLetter 209. [1851.??] "Lettre non datée" (Undated letter), "Les Harmonies économiques. Lettre de M. Carey; réponse de MM. Frédéric Bastiat et A. Clément", JDE, T. 28, no. 117, 15 Jan. 1851, pp. 38-54. [OC1, pp. 209-16] [CW1, pp. 297-302].
TextMy book385 is in the hands of the general public. I do not fear that it will encounter a single person who, after reading it, will say, “This is the work of a plagiarist.” A slow assimilation, the fruit of lifelong meditation, is only too evident, especially if it is compared with my other writings.
But whoever mentions assimilation admits that he has not drawn all his material from his own resources.
Oh, yes! I owe a great deal to Mr. Carey; I owe something to Smith, J. B. Say, Comte, and Dunoyer; and I owe something to my opponents and something to the air I have breathed. I owe something to the intimate discussions I have had with a close friend, M. Félix Coudroy, with whom for twenty years I have investigated all these questions in solitude, without there appearing the slightest disagreement in our assessments and ideas, something [298] that is very rare in the history of the human mind and very propitious to the enjoyment of the delights of certainty.
This means that I do not claim the title of inventor with regard to harmony. I even believe that it is the mark of a small mind, one that is incapable of linking the present to the past, to imagine that it invents principles. Sciences and academic disciplines grow like plants; they spread, grow, and become refined. But what successor owes nothing to those that went before him?
In particular, the “harmony of interests” could not be the invention of one person only. Is it not the presentiment and aspiration of the human race, the aim of its eternal evolution? How can a political writer dare to claim for himself the invention of an idea that is the instinctive belief of all men?
This harmony has been proclaimed by economic science from the outset. This is proved by the very title of the physiocrats’ books. Doubtless, scholars have often demonstrated this badly, they have allowed a great many errors to creep into their works which, for the very reason that they were errors, contradicted their beliefs. What does that prove? That scholars make mistakes. However, by dint of much trial and error, the core idea of the harmony of interests has always shone over the economist school, like its pole star. The only proof I want of this is the motto it has been criticized for: laissez-faire, laissez-passer.386 It certainly implies a belief that interests achieve justice among themselves, under freedom’s dispensation.
That having been said, I do not hesitate to give justice to Mr. Carey. I have known his works for a short time only; I have read them very superficially because of my occupations, my illness, and especially because of the singular divergence that, both in fact and in method, characterizes the English and French minds. We make generalizations, which our neighbors disdain. They go into detail in thousands and thousands of pages, which our attention cannot cope with. Be that as it may, I acknowledge that we owe this great and consoling cause, the conformity between the interests of the various classes, to no one more than to Mr. Carey. He has pointed it out and proved it from a great many and varied angles in such a way that there can be no further doubt of the general law.
[299]Mr. Carey complains that I have not acknowledged him. This is perhaps a mistake on my part, but it is not intentional. Mr. Carey has been able to show me new views and supply me with arguments but he has not revealed any principle to me. I could not quote him in my chapter on trade, which is at the root of all, nor in those on value, the progressive society, or competition. The time to base myself on his authority would have been in connection with landed property, but in this first volume I treated the question through my own theory of value, which is not that of Mr. Carey. At this time, I was planning to write a special chapter on rent from land, and I firmly believed that my second volume would follow the first closely. It was in this that I would have quoted Mr. Carey, and not only would I have quoted him, but I would have given way to him to allow him the leading role on the stage; this was in the interest of the cause. In fact, on the question of land, Mr. Carey cannot fail to be a major authority. To study the primitive and natural development of property, all he has to do is open his eyes. To set it out, he has only to describe what he sees, more fortunate in this than Ricardo, Malthus, Say, and all of us European economists, who can see only a landed property that is subject to the thousand artificial combinations of conquest. In Europe, to go back to the principle of landed property you have to use the difficult process used by Cuvier to reconstruct a mastodon. It is not very surprising that most of our writers made mistakes in this attempt at analogy. In America, every career reveals its genuine mastodons; one has only to open one’s eyes. Therefore, I had everything to gain, or rather the cause had everything to gain, from my quoting the evidence of an American economist.
Finally, I cannot prevent myself from observing to Mr. Carey that a Frenchman can scarcely do him justice without a great effort at impartiality, and, as I am French, I was far from expecting him to deign to concern himself with me and my book. Mr. Carey professes the deepest scorn for France and the French and a hatred that borders on frenzy. He has expressed these sentiments in a good third of his voluminous writings and has taken the trouble to gather together, with no discernment it is true, a number of statistical documents to prove that we scarcely rank above the Hindus in the scale of humanity. To tell the truth, in his book Mr. Carey denies this hatred.387 But in denying it, he proves it, for how can such a denial be explained? What provoked it? It is Mr. Carey’s own conscience, when he himself was surprised [300] by all the proofs of hatred toward France that are accumulated in his book, that impelled him to proclaim that he did not hate France. How many times have I not told M. Guillaumin, “There are excellent points in Mr. Carey’s works and it would be a good thing to have them translated. They would contribute to advancing political economy in our country.” However, I was obliged to add, “Can we cast before the French general public diatribes like this against France and do we not risk missing our aim? Will the public not reject the good that is in these books because of what is wounding and unjust?”
May I be allowed to end with a reflection on the word plagiarism, which I used at the start of this letter? The people from whom I may have borrowed a view or an argument think that I am greatly in their debt. I am convinced of the contrary. If I had not allowed myself to be drawn into any controversy, if I had not examined any theory, if I had not quoted anyone’s name, if I had limited myself to establishing these two proposals: Services are exchanged for other services; value is the relationship between services exchanged, if I had then used these principles to explain all the highly complicated categories of human transactions, I believe that the monument I sought to raise would have gained a great deal (too much, perhaps, for the period) in clarity, grandeur, and simplicity.
P.S. I am leaving the subject of Mr. Carey and addressing, perhaps for the last time, with feelings of deep-seated goodwill, our colleagues on the editorial staff of Le Journal des économistes. In the note by this journal that provoked the complaint from Mr. Carey, the management announces that, with regard to landed property, it is siding with Ricardo’s theory. The reason it gives is that this theory has the authority of Ricardo himself, as well as Malthus, Say, and all the economists, “except for MM Bastiat and Carey.” The epigram is sharp and it is certain that the American economist and I are humbled in this antithesis.
Be that as it may, I reiterate that the journal’s management has passed a decisive resolution for its scientific authority.
Do not forget that Ricardo’s theory can be summed up thus: “Landed property is an unjust but necessary monopoly whose effect is to render the rich inevitably richer and the poor ever poorer.”
The first disadvantage of this formula is that its very enunciation arouses an invincible distaste and conflicts in people’s hearts, not with everything I would call generous and philanthropic, but with what more simply and [301] bluntly I would see as honest. Its second mistake is that it is based on incomplete observation and consequently runs counter to logic.
This is not the place to demonstrate the legitimacy of rent from land, but since I have to provide a useful aim for this text, in a few words I will set out how I understand it and how my opponents err.
You have certainly known traders in Paris whose profits increase annually without anyone being able to conclude that they are overcharging for their goods each year. They are far from doing this, and there is nothing more commonplace and more true than this proverb: Compensate through quantity. It is even a general law governing the flow of trade, that the greater it becomes, the greater the discount that the trader gives his customers, while at the same time making more profit. To persuade you of this, you have only to compare what a hatter in Paris and one in a village earn per hat. This is a well-known example of a case in which, when public prosperity grows, the sellers become ever richer and so does the buyer.
Now, what I say is that it is not only the general law of profit, but also the general law of capital and interest, as I have proved to M. Proudhon, and the general law of land rents, as I would prove if I were not exhausted.
Yes, when France prospers, there is a consequent general rise in land rents and “the rich become ever more rich.” To this extent Ricardo is right. But it does not follow that each agricultural product is increased in price at the expense of the workers. It does not follow that each worker is reduced to giving a greater proportion of his work to acquire a hectoliter of wheat. In a word, it does not follow that “the poor become ever poorer.” It is exactly the opposite that is true. As rent increases, through the natural effect of public prosperity it becomes less and less of a burden on products that are more abundant, exactly like the hatter who favors his customers all the more when he is in a milieu in which there is a greater demand.
Believe me, my dear colleagues, let us not incite Le Journal des économistes to reject these explanations lightly.
Lastly, the third and perhaps the greatest mistake, in terms of economic science, of the Ricardo theory is that it is belied by all the individual and general events that occur around the globe. According to this theory, for a century we should have seen industrial and commercial movable assets drawn into rapid and fatal decline compared with landed fortunes. We ought to have witnessed the onset in our towns of barbarous behavior, of darkness and filth, and of difficulties in the means of transport. What is more, with merchants, artisans, and workers reduced to giving an ever-increasing proportion [302] of their work to obtain a given quantity of wheat, we ought to be seeing wheat used less or at least no one being able to allow himself the same level of consumption of bread without curtailing other things he enjoys. I ask you, my dear colleagues, does the civilized world show any evidence of such a situation?
And then, with what purpose would you endow the journal? Would it say to landowners: “You are rich because you are enjoying an unjust but necessary monopoly, and, since it is necessary, enjoy it without scruple, especially since it ensures you ever-increasing riches”? Then turning to workers of all classes, would you say: “You are poor; your children will be poorer than you and your grandchildren even more so, until you die of starvation. This is because you are subject to an unjust but necessary monopoly, and since it is necessary, resign yourselves wisely and let the ever-increasing riches of the rich console you”?
I certainly do not ask for my ideas to be adopted without examination, but I believe that Le Journal des économistes would do better to subject the matter to study rather than issue an opinion right now. Oh, let us not readily believe that Ricardo, Say, Malthus, and Rossi, such eminent and well-founded minds, are mistaken. But let us not, either, lightly admit a theory that leads to such monstrosities.388
Louis-Philippe abdicated on 24 February 1848, thus bringing the July Monarchy to an end.
As part of the British campaign against the slave trade, British vessels would inspect foreign ships on the high seas to see if they were carrying slaves.
Fifty-two people were killed by the military.
Bastiat wrote a number of articles in February 1848 for La République française on these events.
The revolution of February 1848 brought an end to the July Monarchy, which in turn had come to power by revolution in 1830.
Jacques Bonhomme.
The ceremony that took place on Saturday, 4 March, organized by the provisional government in honor of the citizens who died for the Republic during the days of 23 and 24 February.
Bastiat is referring here to his posthumously published Economic Harmonies.
In English in the original.
Candidates to the elections of deputies were heard, then nominated, by county committees who then gathered to establish a list of candidates for the district. Each district would then discuss its candidates with the other districts in order to arrive at a single list for the département.
(Paillottet’s note) The chair occupied by M. Michel Chevalier had been withdrawn and not yet reinstated.
OC, vol. 4, p. 275, “Propriété et loi.”
That is, the nobility and the gentry. In English in the original.
One of the daughters of Mrs. Schwabe was born in Paris shortly after the Revolution.
Edward Baines.
Bastiat is making a play on words with the name of the Schwabes. In German, der Schwabe is a Swabian and schwabenstreich means “tomfoolery.” Perhaps he is hinting that the Schwabes threw good parties.
Bastiat was vice president of the finance committee of the Constituent Assembly. On 9 May the Assembly elected the five members of an executive commission, a sort of joint presidency, above the ministers. General Cavaignac was nominated minister of war on 17 May.
Constituent Assembly.
On 8 June a proposition was made to raise by 5 percent the export subsidy of woollen cloth. The following day, Bastiat argued against the proposal.
A demonstration had been organized on 15 May in order to support Poland, but it degenerated into a revolt against the government elected by the Assembly. The rioters invaded the Assembly, proclaimed its dissolution, and “formed” a revolutionary government. They were dispersed the same evening, and their leaders were arrested.
Bastiat is referring to the so-called June Days, when, after the government attempted to close the national workshops, an uprising took place in Paris between 21 and 26 June. This was brutally crushed by the army under General Cavaignac, whose troops killed fifteen hundred workers.
Romain Affre, Julie’s husband, had a temporary position as the head doctor at the Biarritz bains de mer. The position was to be made permanent for a candidate supported by political connections.
Her health had deteriorated following the death of her husband, Julie’s father.
An area of Paris, then semiagricultural, near the Invalides.
(Paillottet’s note) This refers to a simultaneous reduction of armaments by France and England.
Le Journal des débats.
Caussidière was active in the revolutions of 1830 and 1848. He was accused, with Louis Blanc, of being an agitator in the “conspiracy” of 15 May.
The state of siege was decreed on 4 June. A proposal to repeal it was discussed at the Assembly on 2 September. It was rejected by 529 deputies against 140. Bastiat was among the 140. The state of siege was repealed only on 19 October.
Le Moniteur industriel.
In order to vote yes or no to a specific question, the deputies dropped white or black balls into a ballot box.
Revolution broke out in February 1848 in France and in March in the German states. These uprisings resulted in the formation of the Frankfurt parliament and an attempt to create a liberal constitution, which ultimately failed.
In autumn 1848 there was an epidemic of cholera in Paris, but it was less severe than the epidemic of 1832.
La Sonnambula (The Sleepwalker), an opera by Vincenzo Bellini (1801-35).
“The Mountain,” a reference to “the Left.” During the French Revolution, the deputies from the “Left” had been sitting on the top rows of the Assembly, “the mountain.”
Pius IX.
Charles Forbes.
(Paillottet’s note) The letter from the Count Arrivabene, to which Bastiat is replying, relates to a passage in chapter 3 of the Harmonies, published in December 1848 in Le Journal des économistes. [OC, vol. 6, p. 73, “Des besoins de l’homme.”]
This reform, inspired by the English reform dating back to 1840, introduced a single payment in the form of a twenty-centime stamp for a standard letter for the whole of the country, plus Algeria. Previously, a fee had been paid by the addressee.
In January 1849 Bastiat seems to be foretelling the coming of a dictatorship. Louis-Napoléon seized power in a coup d’état in December 1851 and was made emperor in December 1852.
(Paillottet’s note) Here is the text of the invitation to which Bastiat is replying. [The following letter is in English in the original.]
BANQUET TO CELEBRATE THE FINAL REPEAL OF THE CORN LAWS
The act for the repeal of our corn laws will come into operation on the 1st February next, and it has been resolved to celebrate the event by a banquet in the Free Trade Hall in this City on the 31 January.
The prominent part you have taken in your own country, in the adversary of the principles of commercial freedom, and the warm sympathy you have always manifested in our movement, has induced the Committee to direct me respectfully to invite you to be present as a guest.
In conveying this invitation, permit me to hope that you may be able to make it convenient to make one among us at our festival.
Believe me, dear sir,
The Assembly had been elected to draw up a constitution. It was voted on 4 November. On 10 December, Louis-Napoléon Bonaparte was elected president of the Republic and formed a new government. There was no reason to maintain the Constituent Assembly. Finally, in late January, the Assembly set the date for the election of the new Legislative Assembly provided for in the constitution for 19 May 1849.
There were three groups of pretenders to the restoration of the monarchy, or empire: the Legitimists (for the descendant of Charles X), the Orleanists (for the descendant of Louis-Philippe), and the Bonapartists.
Marietta Alboni, Giorgio Ronconi, Giulio Marco Bordogni: opera singers.
A candidate for the experimental farm mentioned in Letter 127.
OC, vol. 5, p. 407, “Paix et liberté ou le budget républicain.”
Ibid. Possibly a reference to the pamphlet Paix et liberté; ou le budget républicain.
On 3 October 1848, a decree established that there would be a farm school in each département. The General Council of the Landes decided that the school would be in the Chalosse. On 15 October, Aristide Dupeyrat declared his candidacy for the direction of the school. He was eventually chosen from among several candidates.
Léon Faucher had submitted a law forbidding clubs of political orientation because some clubs were engaging in vigorous campaigning and fomenting trouble. The law was passed (404 votes for, 303 against).
On February 1849, in Rome, the Assembly decided to end the temporal authority of the papacy and proclaim the republic in Tuscany. The same year, Charles Albert, king of Sardinia, invaded Lombardy but was defeated by Austria and had to abdicate.
District in the center of Paris.
The debate concerned a potential conflict of interest when serving civil servants could also be elected to the Chamber of Deputies.
A group of deputies of the extreme right used to meet in a building on the rue de Poitiers.
For example, the following comment was made in La Revue des deux mondes: “M. Bastiat is keen to extend truths as far as paradoxes. This time, he has gone to the most paradoxical extreme of a false idea” (14 March 1843).
The pamphlet Individualism and Fraternity was written to refute Louis Blanc’s socialist interpretation of the first French Revolution, Histoire de la révolution française, the first volume of which appeared in 1847. (OC, vol. 7, p. 328, “Individualisme et fraternité.”)
Property and Plunder.
See Letter 126, note 246.
OC, vol. 5, p. 518, “Incompatibilités parlementaires.”
There are three electoral districts in the département: Mont de Marsan, Dax, and Saint-Sever.
See Letter 127, pp. 183-84.
See Letter 127, note 249. After its victory over Charles Albert, the Austrian government spoke of reestablishing the principles prevailing in Europe after the treaty of Vienna, in 1815. That was interpreted in France as a threat to the Republic, and a military intervention “of solidarity with the Italian republic” was decided on.
Some prefects, retired for reasons of illness or infirmity, were recalled because of their hostility to the Republic.
Refers to Nicolas Anne Theodule Changarnier (1793-1877).
Bastiat’s prediction was right: the extreme right got 53 percent of the seats; the extreme left, 35 percent; and the moderate republicans, 9.3 percent.
That is, the physiocrats, the Smithians, and now the followers of Bastiat.
Bastiat could be referring to chapter 5 of Economic Harmonies, “On Value.” (OC, vol. 6, p. 140, “De la valeur.”)
An example of an American translation of one of Bastiat’s works is an 1848 translation of Economic Sophisms, titled Sophisms of the Protective Policy. See Letter 63, note 142.
“All of me shall not die.”
The discussion in the Chamber on the subject of a telegram sent by Léon Faucher, minister of the interior, to the prefects a few days before the elections on 18 May 1849.
Quotation from Mignon by Goethe.
Romain Affre.
Most probably 15 or 16 May 1849.
Bastiat, who was the deputy representing the Landes in the Constituent Assembly of 1848, was reelected in 1849 to the Legislative Assembly.
Chapter 8 of Economic Harmonies deals with that very subject. (OC, vol. 6, p. 256, “Propriété, communauté.”)
Horace Say.
The peace congress held in Paris, starting on 22 August 1849.
No month given.
Madame de Montespan, mistress of Louis XIV; Madame de Maintenon, second wife of Louis XIV; and Madame Dubarry, mistress of Louis XV.
Economic Harmonies.
Ibid.
Félix Coudroy.
Possibly a reference to Jules Gabriel Janin (1804-74), the author of Pictures of the French.
Economic Harmonies.
Possibly a reference to Olivier Patru, a seventeenth-century author.
A local cabbage and bacon soup.
A fortress in Hungary.
Economic Harmonies.
This may be a reference to the fact that Bastiat had to make a down payment to publishers to cover some of the costs of having his books and pamphlets published. See also Letter 68, note 155.
Source unknown.
In English in the original.
Bastiat is referring to his chapter on value in Economic Harmonies. (OC, vol. 6, p. 140, “De la valeur.”)
Gabrielle.
Source unknown.
A small town in the Landes.
A type of bird; a table delicacy.
Bastiat is mockingly comparing French political corruption with the potential spoiling of the Ortolans.
Slavery was abolished twice in France, once during the first revolution, when Haiti declared its independence from France. This was supported by leading abolitionists in Paris, such as the Abbé Grégoire and Brissot, through the Society of the Friends of the Blacks. Napoléon reintroduced slavery after a bloody repression of the Haitian revolution in 1802. Slavery was abolished a second time on 27 April 1848, during the 1848 revolution.
John Benjamin Smith.
It is not clear what peace conference Bastiat was referring to, possibly a domestic British conference. International peace congresses were held in Brussels in September 1848, Paris in August 1849, Frankfurt in August 1850, and London in July 1851. Classical liberals came from all over the world to discuss ways to disarm and cut taxes. See the Report of the Proceedings of the Second General Peace Congress and the Report of the Proceedings of the Third General Peace Congress.
On 13 June there was a demonstration against the Roman expedition. It was easily dispersed, but sixty-seven people were arrested for inciting civil war and were brought to the High Court in Versailles. The normal rights of the accused had not been entirely respected.
Bastiat discusses this in his letters to Proudhon. (OC, vol. 5, pp. 94-335, “Gratuité du crédit.”)
In English in the original.
OC, vol. 5, pp. 94-335, “Gratuité du crédit.”
To extend the size of Mugron’s hospice, a M. Lafaurie had agreed to exchange his large house for the existing hospice building. This operation, however, required a government decree.
Louis-Napoléon Bonaparte. In 1840 he attempted to provoke a military uprising in Boulogne. It failed, and he was condemned to life in the fortress of Ham by the House of Peers. He escaped in 1846.
Bastiat and Cobden were both active members of an international association called the Friends of Peace. This association had a congress in Brussels in 1848, one in Paris (chaired by Victor Hugo) in 1849, and one in Frankfurt in 1850. Cobden organized follow-up meetings in London, Birmingham, Manchester, and Bradford, all of which Bastiat attended.
After a rebellion in 1837 the Durham Report of 1839 recommended that the Canadian provinces be granted responsible government, which was put into effect by 1849. Responsible government (i.e., the Westminster system) was also introduced a little later in the Australian colonies: Victoria (1855); New South Wales, South Australia, and Tasmania (1856). New Zealand was granted this right in 1856 as well. The Cape Colony followed in 1872.
In English in the original.
See Letter 133, note 265.
An army medical officer.
A physician.
One of Molière’s characters, borrowed from the Commedia dell’arte. He appears in particular in Le Médecin malgré lui.
Another reference to the fatal illness that would eventually kill Bastiat.
The economists living in Paris met for a dinner once a month.
Félix Coudroy.
Ebenezer Elliot.
Félix Coudroy and Justine Bastiat.
Bastiat had plans for writing a book titled Social Harmonies.
Allusion to a plan of marriage for Louise Cheuvreux, which had no follow-up. See letters 166, 168, and 169.
Small town in the département of La Charente, between Paris and Bordeaux.
Allusion to a well-known fable of La Fontaine, Les Animaux malades de la peste.
Mother of Mme Cheuvreux.
Plunder and Law.
La Voix du peuple did not publish Bastiat’s article.
The review did not publish any account of Economic Harmonies.
Louis-Napoléon Bonaparte appointed his supporters to the highest military and administrative positions in the country.
Bastiat had been given a two-month leave of absence for health reasons.
Article 1 of a law restricting universal suffrage, opposed by 197 deputies, including Bastiat. The law was approved by the majority on 31 May.
He is referring to his fondness for his Aunt Justine and his friend Félix Coudroy.
Eugène de Monclar.
(Paillottet’s note) This work, instead of being used as an addition to the pamphlet Plunder and Law, became a separate pamphlet titled The Law.
The rise of socialism during the 1848 revolution made this a serious problem for many classical liberals. See the article by Courcelle-Seneuil on “Lois agraires,” in the Dictionnaire de l’économie politique.
A character in Beaumarchais’ plays Le Barbier de Seville and Le Marriage de Figaro.
The Gave de Pau River, running through Pau; Gélos, a small town in the vicinity of Pau; Bizanos, a small town in the vicinity of Pau.
A mountain brook flowing through Les Eaux-Bonnes.
The Law, written in Mugron a few days earlier.
Bastiat published a short version of Economic Harmonies with only ten chapters in 1850. After Bastiat’s death Paillottet and Fontenay went through his papers and put together a larger edition with twenty-five chapters. The shorter first edition was reviewed by Ambroise Clément in Le Journal des économistes 26 (April-July 1850).
Le Journal des débats.
In his discussions of social problems in various places in his works, for example, in The Law, Property and Law, Property and Plunder, and Economic Harmonies, Bastiat often elaborated on those discussions by writing that liberty was “the solution to the social problem.”
An allusion to a phrase of Louis XIV’s uttered when the king of Spain, Charles II, decided to make Philippe d’Anjou (grandson of Louis XIV) his heir.
(Paillottet’s note) No longer in manuscript form but as a printed proof.
What Is Seen and What Is Not Seen.
(Paillottet’s note) See the note on page 336 of vol. 5. [Paillottet is referring to a footnote he wrote to What Is Seen and What Is Not Seen in which he describes how Bastiat lost the original manuscript in a house move and had to rewrite it. See also the Glossary of Subjects and Terms, What Is Seen and What Is Not Seen.]
Bastiat could be referring to one of several books that Chevalier published in 1850: Les Questions politiques et sociales; Cours d’économie politique fait au Collège de France: La Monnaie; or Lettres sur l’organisation du travail.
See Letter 175, note 336.
Bastiat seems to be anticipating an argument that would be taken up by Julian Simon in the twentieth century. Simon saw population as “the ultimate resource.” See Julian P. Simon, The Ultimate Resource (Princeton, N.J.: Princeton University Press, 1981).
Cobden was opposed to the foreign policy of Palmerston.
This is the Gascony dialect, which evolved from the langue d’oc, from which Catalan and Provençal also evolved.
Le Butard.
For most of the first half of the twentieth century the works of Bastiat lay forgotten. It was not until the Foundation for Economic Education published a translation of “La Loi” in 1950, the centenary of Bastiat’s death, that his work became known to another generation.
Horace Say did write the article on insurance in the Dictionnaire de l’économie politique (published in 1854). The Say family was very much involved in compiling the various dictionaries of political economy published by Guillaumin. In the first edition, of 1852, a number of articles carried the name “Jean-Baptiste Say” (obviously selected from his books, as Say had died in 1832); his son Horace contributed twenty-seven articles, and his grandson Léon also wrote some articles. A second version, the Nouveau dictionnaire de l’économie politique, which appeared in 1891 and 1900, was edited by Léon Say.
Palmerston got a vote of censure from the Lords for having blocked the harbor of Piraeus to defend the interests of a British citizen named Pacifico. A few days later, Palmerston made a speech to defend his position and won approval—but not from Cobden. See Letter 188.
International peace congresses were held in Brussels in September 1848, Paris in August 1849, Frankfurt in August 1850, and London in July 1851.
For the Peace Congresses, see Letter 157, note 305. The Frankfurt Congress took place on 22, 23, and 24 August 1850. Among the 600 delegates, 250 were British, 31 American, and 15 French.
This letter was also contained in the book published by Mme Cheuvreux, preceded by the following note:
After having left the Pyrenees in July, Bastiat settled in the vicinity of Paris. He spent his mornings alone at Le Butard, and his evenings at La Jonchère. But his very painful laryngitis worsened, and regular work became more and more difficult. His friends, who the year before saw him write several chapters of The Harmonies amid noise and movement in a corner of their living room, on a table edge, dipping his pen in a bottle of ink drawn from his pocket, caught him then pushing away his paper with an impatient gesture; idle and bowing his head, Bastiat kept silent until the moment when his ardent thinking erupted like a meteor in eloquent sentences. But his words quickly brought back the pain in his throat and forced him to be silent.
On 9 September 1850, the sick man, with a stoical self-control, informed Richard Cobden about the dreadful consequences of his situation.
In English in the original.
“Not my will but Thine be done.”
An unpublished paper by M. de Fontenay. See Letter 180.
See Letter 185, note 351.
Privateering (la course) refers to the expeditions of the corsairs, or privateers. The letter of marque was a commission given by a country to a privateer, in time of war, to capture ships of the hostile nation.
During the blockade of the Piraeus, two hundred Greek soldiers were captured.
Edouard Girard.
Small town on the Seine, near Paris, in which La Jonchère was located.
Allusion to the revolts of 1830 and 1834 of the “canuts,” the textile workers who lost their jobs because of the growing use of machinery. The revolts were severely repressed.
(Paillottet’s note) Two months later, I encountered in Leghorn the counterfeit Belgian edition, which was selling well.
An Italian newspaper had announced Bastiat’s death.
A law of 8 June 1850 increased the postage cost, reestablished the surety (see Letter 68, note 155), and made the journalist’s signature compulsory for all articles of political, philosophical, or religious discussion.
Bastiat is possibly referring to Ledru-Rollin’s work De la décadence de l’Angleterre, which was reviewed in Le Journal des économistes, August 1850, by Coquelin.
Cobden journeyed to Italy in 1847.
“Porters.”
Signatures of Garnier and Molinari, who started to write articles in La Patrie.
Eugène de Monclar; Cheuvreux family.
After having spent two days with him in Pisa, Bastiat’s friends went to Rome to wait for him.
Toinettes and Argan, characters from Molière’s play Le Malade imaginaire.
Carey’s book, The Harmony of Interests, Agricultural, Manufacturing, and Commercial, was sent to Bastiat as proofs in November 1850, before it appeared in print.
Ibid.
(Paillottet’s note) Here the exact date is important because of the political assessments which follow, and Bastiat left the day blank. However, the address carries the clear Sardinia date stamp of 1 December, from which it follows that the letter was probably written and posted in Rome on 28 November.
“May perpetual light shine on him.”
See Letter 204, note 374
In a letter sent on 31 August 1850 to Le Journal des économistes, Carey criticized Bastiat’s use of the word harmony in the title of his book and accused Bastiat of having been influenced by his own works on harmonies of interests without acknowledging it. This event prompted a storm of debate in the journal and in the Société d’économie politique during the first half of 1851. Numerous articles appeared in Le Journal des économistes in the 28 (January-April) and 29 (May-August) issues.
Bastiat replied indirectly in a letter to the journal written on 8 December 1850 and published after his death, on 15 January 1851 (see Letter 209). The controversy continued after Bastiat’s death. In June 1851, in Le Journal des économistes, Paillottet quoted some writings of Bastiat dating back to 1834, which showed the originality of Bastiat’s ideas. An exchange of letters between Paillottet and Carey put an end to the debate, and Carey acknowledged Bastiat’s honesty (13 January 1852).
Droz was appointed to the Académie française in 1813 and to the Académie des sciences morales et politiques in 1833. His death on 9 November 1850 would have left the vacancy to which Bastiat is probably referring.
A shortened version of Economic Harmonies with ten chapters had been printed in Bastiat’s lifetime. Bastiat was working on additional chapters when he died. Paillottet found these unfinished chapters in Bastiat’s papers and edited them for a new, larger edition of the book.
This letter, the last he wrote, preceded his death by just eight days.
The death of Mme Cheuvreux’s mother.
Although this letter is not by Bastiat, it is included because it is an essential piece for an understanding of his last days.
(Paillottet’s note) After the death of Bastiat, it was easy for his friends to inform Mr. Carey of his total loyalty. However, we consider that this letter is worthy of preservation, especially since the postscript contains the elements of a major exposition.
Bastiat wrote a short article titled “Laissez-faire” for the first issue of the short-lived journal Jacques Bonhomme in June 1848 (see “Laissez-faire,” p. 434. Joseph Garnier discusses the origin of the expression in the work of the physiocrats Gournay and Turgot (see “Laisser-faire, laissez-passer,” in Dictionnaire de l’économie politique).
In an article of 15 May 1851, Carey claimed that it was not France as such he hated but rather war, and according to him, France was the great warrior nation of Europe.
The text of this letter up to the postscript was published as “Note de M. Bastiat,” in Le Journal des économistes 28 (January-April 1851): 50-52. The “Note” was preceded by Carey’s letter and followed by a reply by Ambrose Clément. The postscript, however, appeared only in the Œuvres complètes.
Articles and Essays↩
Bastiat's Witings in 1848 after the February Revolution↩
T.293 (post-1848) "On Experience and Responsibility"↩
SourceT.293 (post-1848) "On Experience and Responsibility" (no date). This previously unpublished sketch was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to "The Law" (June, 1850). No date was given. Probably post-1848. [OC4, pp. 375-76] [CW2, p. 133]
Editor's IntroductionThis short piece is one of several unpublished sketches found by Bastiat's literary executor and first editor, Prosper Paillottet, and inserted in another piece. In this case it was inserted in a footnote to the pamphlet The Law (July 1850). 977 It was written probably post-revolution, as the final paragraph points out that a State which intervenes too much in the lives of the people prevents them from learning from their mistakes and progressing. This he believes, will produce "a hotbed of revolutions" which will go nowhere. There are also similarities to views he expressed in "The State" (Sept. 1848). 978 In the original footnote Paillottet suggests he may have reconstructed some of these thoughts from other things Bastiat had written.
TextFor a people to be happy, it is essential for the individuals that make it up to be farsighted and prudent and to have the confidence in one another that is rooted in security.
However, it can acquire these things only by experience. It becomes farsighted when it has suffered from a lack of foresight, prudent when its recklessness has been frequently punished, etc., etc.
The result of this is that freedom always begins by being accompanied by the misfortunes that follow the rash use made of it.
At the sight of this, some men stand up and demand that freedom should be forbidden.
"The State," they say, "should be farsighted and prudent on behalf of everyone."
In response to which I ask the following questions:
1. Is this possible? Can an experienced State arise from an inexperienced nation?
2. In any case, is this not to stifle experience in the bud?
If government commands an individual to act (in certain ways), how can an individual learn from the consequences of his acts? Will he remain subject to (government) tutelage in perpetuity?
And the State, having ordered everything, will be responsible for everything.
This will constitute a hotbed of revolutions - dead end revolutions - since they will be carried out by a people who, having been forbidden to gain experience, have been forbidden (the opportunity) to progress.
T.295 (c. 1848) "Why our Finances are in a Mess"↩
SourceT.295 (Probably 1848) "Why our Finances are in a Mess" (no date). This previously unpublished sketch was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to "Peace and Freedom or the Republican Budget" (Feb. 1849) and no date was given. Probably 1848. [OC5, p. 447] [CW2, p. 311-12]
Editor's IntroductionThis short piece is one of several unpublished sketches found by Bastiat's literary executor and first editor, Prosper Paillottet, and inserted in another piece. In this case it is untitled, undated, and was inserted in a footnote to "Peace and Freedom or the Republican Budget" (Feb. 1849). 979 Given the closing sentence and its similarities to similar views expressed in "The State" this piece might be dated sometime in mid-1848.
The idea of one group of people living at the expence of another group of people was one expressed half a dozen times in Bastiat's writings. He first used it the article "Organisation and Liberty" (JDE, Jan. 1847); 980 then in "Disastrous Illusions. Citizens make the State thrive. The State cannot make the citizens thrive)," JDE March 1848; 981 twice in his pamphlet "The State" (Sept. 1848), and then in "The Physiology of Plunder" (ES2 1) 982 where it becomes one of the key factors in his theory of plunder.
The title used here is one given by us.
TextWhy are our finances in a mess?
Because, for the representatives, there is nothing easier than to vote for a new item of expenditure and nothing harder than to vote for a new tax.
Or, if you prefer, because (getting) salaries are very pleasant and paying taxes very hard.
I know another reason.
Everyone wants to live at the state's expense, and we forget that the State lives at the expense of everyone. 983
979 In CW2, pp. 282-327; footnote on pp. 311-12,
980 CW6 (forthcoming).
981 ES3 24 "Disastrous Illusions" (JDE, March 1848), CW3, pp. 384-99.
982 ES2 1 "The Physiology of Plunder," CW3, p. 125.
983 In his essay "The State" (Sept. 1848) Bastiat defines the State as "The state is the great fiction by which everyone endeavors to live at the expense of everyone else." See CW2, p. 97.
Writings in La République française
T.186 "A Few Words about the Title of our Journal: La République française" (26 Feb. 1848, RF)↩
SourceT.186 (1848.02.26) "A Few Words about the Title of our Journal" (Quelques mots d'abord sur le titre de nos journal), La République française , 26 February 1848, no. 1, p. 1 [CW3 & CW4]
La République française. A daily journal. Signed by the editors: F. Bastiat, Hippolyte Castille, Gustave de Molinari. It appeared from 26 February to 28 March in 30 issues. There were 2 editions of the 1st issue (one page only) and 2 editions of the second issue (of two pages).
This statement of principles is provided by Hatin in a long quote from La République française (possibly from the 1st issue of 26 February 1848), pp. 491-2. It was probably written by Bastiat with some assistance from Gustave de Molinari one of the co-founders of the journal. 984
Editor's IntroductionBastiat was a strong believer in the Republic which emerged after the Revolution of February 1848. There are scattered remarks throughout the Economic Sophisms which suggest that he accepted the ideals of the French Revolution of 1789 - "liberté, égailité, fraternité" - but thought that they had been appropriated by the Jacobins in the 1790s and then by the socialists in his own day. He regretted the fact that one of the key ideals, that of property, had been omitted from the list.
There are indications of his republican sympathies well before the revolution broke out. In ES3 2 "Two Principles" (LE, 7 February 1847) 985 Bastiat added the following principles to the traditional trilogy of revolutionary ideals: "universal peace, well-being, savings, order, and all the progressive principles of the human race." One might therefore describe Bastiat's own liberal rallying cry updated for the 1840s as follows: "liberty, equality, fraternity, property, tranquility, prosperity, frugality, and stability." In ES3 12 "The Man who asked Embarrassing Questions" (12 December 1847) the character speaking for Bastiat states "I am in favor of democracy if what you understand by this word is: to each the ownership of his own work, freedom for all, equality for all, justice for all and peace among all."
Twice during the course of the 1848 Revolution Bastiat and some of his colleagues published magazines designed to appeal to ordinary people which they handed out on the streets of Paris and turned into posters which they plastered to the walls of buildings. The first was La République française which first appeared two days after the overthrow of King Louis Philippe in February and lasted for 30 issues between February 26 and March 28. It was written and distributed by Bastiat, Molinari, and Hippolyte Castille. 986 The second was Jacques Bonhomme which had 4 issues which appeared between June 11 and July 13. it was written and distributed by Bastiat, Molinari, Charles Coquelin, Alcide Fonteyraud, and Joseph Garnier. 987 We reproduce below the complete statement of principles which appeared in the first issue of La République française which gives a good indication of Bastiat's thinking at the time the Revolution broke out. It was called "A Few Words about the Title of our Journal The French Republic " (26 February 1848).
A couple of months later, when he was campaigning for the April election to the Constituent Assembly, he wrote in his electoral manifesto "To the Electors of the Landes" (Mugron, 22 March 1848) of his fervent republicanism. 988 He tells the prospective voters from his home district why they should vote for him:
Here is the spirit in which I will support the Republic with wholehearted devotion:
War waged against all forms of abuse: a people bound by the ties of privilege, bureaucracy, and taxes is like a tree eaten away by parasite plants.
Protection for all rights: those of conscience like those of intelligence; those of ownership like those of work; those of the family like those of the commune; those of the fatherland like those of humanity. I have no ideal other than universal justice; no motto other than that on our national flag, liberty, equality, fraternity.
Molinari provides an amusing anecdote about how he, Bastiat, and Hippolyte Castille started La République française . 989 Two days after the revolution broke out they were on the streets of Paris with a new magazine aimed at the ordinary working people. The format of the magazine was only one or two pages which could be handed out on street corners or pasted to walls so that passers by could read them. Many were written by Bastiat under the fictitious name of "Jacques Bonhomme" in an effort to appeal to ordinary working people. These posters reveal another side of Bastiat the populist writer who addresses the people in the familiar "tu" form as he makes his case for limited government, free markets, and low taxes. Here is part of a typical poster:
People, be more alert; do as the Republicans of America do: give the State only what is strictly necessary and keep the rest for yourself.
Demand the abolition of useless functions, a reduction of huge salaries, the abolition of special privileges, monopolies and deliberate obstructions, and the simplification of the wheels of bureaucracy.
With these savings, insist on the abolition of city tolls, the salt tax, the tax on cattle, and on wheat...
Then, oh people, you will have solved the problem, that of earning more sous and obtaining more things for each sou. 990
In a review of a collection of letters Bastiat wrote to the Cheuvreux family, the economist Gustave de Molinari reminisced about his revolutionary activities with Bastiat in 1848. 991 Bastiat was then forty-seven and Molinari twenty-nine. Molinari notes that the February revolution forced the young radical liberals to "replace our economic agitation (for free trade) with a politico-socialist agitation," which they did on 24 February, when they and Castille decided to start their magazine. The prime minister at the time, François Guizot, was forced to resign on 23 February, and a provisional government was formed on 26 February (thus, they started their new journal the day after the revolution broke out). Molinari asked Bastiat if he would join him as coeditor; Bastiat agreed to do so with the understanding that they would abide by the censorship laws, which at the time called for approval by the government before publication took place. Molinari wryly noted that Bastiat told them that "we may be making a revolution but revolutions do not violate the laws!"
The three of them proceeded to the Hôtel-de-Ville in order to have their hastily written screed approved by the government, but the building was in complete turmoil with armed revolutionaries milling about. The three wisely decided that the provisional government was "otherwise occupied," and Bastiat consented to publish the journal without prior approval. In Montmartre, on their way to the printer, they came across another would-be revolutionary hawking in the street a journal that had already taken the name La République , such was the competition at the time for catchy titles. The three decided on the spot to rename their journal La République française and had 5,000 copies printed and distributed. Like most periodicals at the time La République française lasted a very short while, but it did include a number of striking articles penned by Bastiat directed at the working class, who were pushing the revolution in an increasingly socialist direction. As Molinari notes, their journal "was decidedly not at the peak of the events" that were swirling about them, and it soon folded after a month.
TextLet's begin with a few words about the title of our journal.
The provisional government wants a republic without ratification by the people. Today we have heard the people of Paris unanimously proclaim a republican government from the top of its glorious barricades, and we are of the firm conviction that the whole of France will ratify the wishes of the conquerors of February. But whatever might happen, even if this wish were to be misunderstood, we will keep the title which the voice of all the people have thrown to us. Whatever the form of government which the nation decides upon, the press ought henceforth remain free, no longer will any impediment be imposed upon the expression of thought. This sacred liberty of human thought, previously so impudently violated, will be recognised by the people, and they will know how to keep it. Thus, whatever might happen, being firmly convinced that the republican form of government is the only one which is suitable for a free people, the only one which allows the full and complete development of all kinds of liberty, we adopt and will keep our title:
THE FRENCH REPUBLIC.
Time and events are pressing, we can only devote a few lines to stating our program.
France has just got rid of a regime which it found odious, but it is not sufficient just to change men, it is necessary to also change things.
Now, what was the foundation of this regime?
(Trade) restrictions and privilege! Not only was the monarchy, which the heroic efforts of the people of Paris have just overturned, based upon an electoral monopoly, 992 but it also depended upon numerous branches of human activity from which it profited with invisible ties of privilege.
We wish that henceforth labour should be completely free, no more laws against unions, 993 no more regulations which prevent capitalists and workers from bringing either their money or their labour to whatever industry they find agreeable. The liberty of labour proclaimed by Turgot 994 and by the Constituent Assembly ought henceforth be the law of a democratic France.
Universal suffrage. 995
No more state funded religions. 996 Each person should pay for the religion which he uses.
The absolute freedom of education.
Freedom of commerce, to the degree that the needs of the treasury allow. 997 The elimination of duties on basic food as we enjoyed under the Convention. Life at low prices for the people! 998
No more conscription; voluntary recruitment for the army. 999
Institutions which allow the workers to find out where jobs are available and how to discover the going rate of wages throughout the entire country. 1000
Inviolable respect for property. All property has its origin in labour: to attack property is to attack labour.
Finally, in order to crown the work of our glorious regeneration, we demand leniency within the country and peace outside. Let us forget the past, let us launch into the future with a heart without any hatred, let us fraternize with all the people of the world, and soon the day will come when liberty, equality, and fraternity will be the law of the world!
984 Eugène Hatin, Bibliographie historique et critique de la presse périodique française, ou Catalogue systématique et raisonné de tous les écrits périodiques de quelque valeur publiées ou ayant circulé en France depuis l'origine du journal jusqu'à nos jours, avec extraits, notes historiques, critiques et morales, indication des prix que les principaux journaux ont atteints dans les ventes publiques, etc. Précédé d'un essai historique et statistique sur la naissance et les progrès de la presse périodique dans les deux mondes (Paris: Didot frères, fils, 1866), pp. 491-92.
985 In CW3, pp. 261-68; quote p. 267.
986 Protests and riots forced King Louis Philippe to resign and on the evening of 24 February a Provisional Government was proclaimed, followed the next day by the formation of the Second Republic.
987 See also the glossary entries for "La République française" and "Jacques Bonhomme (journal)."
988 In CW1, p. 387.
989 See also "Bastiat the Revolutionary Journalist and Politician" in the Editor's Introduction to CW3, pp. lxviii; and "The Law-Abiding Revolutionary" in "Bastiat's Political Writings: Anecdotes and Reflections," pp. 401-3.
990 ES3 21, "The Immediate Relief of the People," 12 March, 1848, La République française . In CW3, pp. 377-79.
991 Molinari, "Frédéric Bastiat: Lettres d'un habitant des Landes." JDE 4e Série, no. 7 (July 1878): 60-70. Review of Lettres d'un habitant des Landes, Frédéric Bastiat. Edited by Mme Cheuvreux. Paris: A. Quantin, 1877.
992 Bastiat called the rich minority of tax-payers who were allowed to vote during the July Monarchy (some 240,000 out of a total population of 36 million) as"la classe électorale" (the electoral or voting class). See the glossary on "The Chamber of Deputies and the Electoral Class," and 1847.05.22 "Peuple et Bourgeoisie" (The People and the Bourgeoisie) Libre-Échange , 22 May 1847] [OC2.51, pp. 348-55] [CW3] [ES3.6]. Quote on p. 286.
993 In 1845 Molinari covered for the magazine Le Courrier française the court case against a group of Parisian carpenters for trying to start a union which was forbidden under the law. He also tried to raise money to help pay their legal expences. Bastiat gave an important speech in favour of abolishing these laws in the National Assembly on 17 Nov. 1849. He stated that those who supported the ban on forming unions as "none other than slavery. For what is a slave if not a man obliged by law to work under conditions he rejects?" See CW2, pp. 348-61; quote p. 351.
Turgot (1727-1781) was an economist of the physiocratic school, a politician, and reformist bureaucrat. Louis XVI made him minister of finance between 1774 and 1776 at which time Turgot issued his "six edicts" to reduce regulations and taxation. Those relating to labour were forced labour obligations or "corvées" which required local farmers to work a certain number of days every year (8) for their local lord or on various local and national road works.
995 The February Revolution of 1848 introduced universal manhood suffrage (21 years or older) and the Constituent Assembly (April 1848) had 900 members (minimum age of 25). Some 7.8 million men voted in this election.
996 Although the Catholic Church was the established church, other denominations also received government subsidies from taxpayers' money. In the 1848 Budget a total of fr. 39.6 million was set aside for expenditure by the state on religion. Of this 38 million went to the Catholic Church, 1.3 million went to Protestant churches, and 122,883 went to Jewish groups.
997 Bastiat made a distinction between protective tariffs , which he wanted to see abolished, and fiscal tariffs to raise money for necessary state functions. he thought the latter should be at a rate of 5% on both imports and exports.
998 The phrase used is "la vie à bon marché" (life at low prices) This was an expression often used by Lamartine in his speeches on behalf of free trade and was used by Bastiat as one of the three mottoes underneath the title banner of his free trade magazine Le Libre-Échange which appeared between November 1846 and April 1848. Bastiat and Molinari used it again in their revolutionary magazine, Jacques Bonhomme , which they published in June 1848, JB. Au bon marché was also the name of one of the earliest department stores in Paris which would revolutionise shopping for ordinary people.
999 In 1849 the size of the French army and navy was approximately 460,000 men which cost the French state fr. 465,526,415 per annum to maintain. In order to maintain an army that size with 7 year enlistments the French government had to recruit about 80,000 new men each year by a combination of voluntary enlistment, conscription (by drawing lots), and substitutions. See the glossary entry on "The French Army and Conscription."
1000 The idea of "labour exchanges" was a pet idea of Gustave de Molinari, one of Bastiat's collaborators in writing La République française .
T.187 (1848.02.27) "The Streets of Paris" (RF, Feb. 1848)↩
SourceT.187 (1848.02.27) "The Streets of Paris" (untitled in original), La République française, 27 Feb. 1848, no. 2, p. 1. [OC7.43, pp. 212-13.] [CW1.2.4.14, pp. 440-41.]
Editor's Note[to come]
TextWhen we go through the streets of Paris, which are scarcely wide enough to contain the throngs of people, and remember that in this immense metropolis at this moment there is no king, no court, no municipal guard, no troops, and no civil administration other than that exercised by the citizens over themselves, when we reflect that a few men, only yesterday emerged from our ranks, are taking care of public affairs on their own, then, judging by the joy, the sense of security, and the confidence shown on every face, our initial feelings are admiration and pride.
We soon return to the past, however, and say to ourselves, “So popular self-government is not as difficult as certain people tried to persuade us it was, and economy in government is not utopian.”
There is no getting round the fact that in France we have become accustomed to excessive and grossly intrusive government. We have ended up believing that we would tear each other to pieces if we had the slightest liberty and if the state did not regulate all our movements.
[441]This great experiment reveals indestructible principles of order within the hearts of men. Order is a need and the first of the needs, if not of all, at least of the vast majority. Let us be confident therefore and draw from this the lesson that the great and extravagant government machine which those involved called indispensable can and should be simplified.
T.188 (1848.02.27) "Under the Republic" (RF, Feb. 1848)↩
SourceT.188 (1848.02.27) "Under the Republic" (Sous la République) (Untitled in original), La République française, 27 Feb. 1848, no. 2, p. 1. [OC7.42, pp. 210-12.] [CW1.2.4.11, pp. 435-37.]
Editor's Note[to come]
TextNo one can say what the repercussions of the Revolution will be in Europe. Please heaven that all the peoples will be able to withdraw from the sad necessity of launching an attack on each other at a signal from the aristocracy and their kings.26
[436]But let us suppose that the absolutist powers retain their means of acting abroad for a short time.
I put before you two facts which seem to me incontestable and whose consequences will then be seen:
- 1. France cannot take the initiative of disarming.
- 2. Without disarmament, the revolution27 can fulfill the hopes of the people only imperfectly.
These two facts are, as we say, incontestable.
As for disarmament, the greatest enemy of France could not advise her to do this as long as the absolutist powers are armed. There is no point insisting on this.
The second fact is also obvious. Keeping oneself armed so as to guarantee national independence is to have three or four hundred thousand men under the flag and thus to find it impossible to make any significant cuts in public expenditure such as would permit a restructuring of the tax system immediately. Let us allow that, by means of a tax on luxury articles, we might reform the salt tax and a few other exorbitant ones. Is this something that might content the French people?
Bureaucracy will be reduced, they say. This may be so. However, as we said yesterday, the probable reduction in revenue will outweigh these partial reforms, and we should not forget that the last budget28 ended in a deficit.
But if the revolution finds it impossible to restructure an iniquitous tax system whose incidence is unfair, and which oppresses the people and paralyzes work, it will be compromised.
However, the revolution has no intention of perishing.
Here are the necessary consequences of this situation with regard to foreigners. We, of course, will never advise wars of aggression, but the last thing that can be asked of a people is to commit suicide.
For this reason, if the armed bellicosity of foreigners forces us to keep three or four hundred thousand men in a state of readiness, even if they do not attack us directly, it is as though they were asking us to commit suicide.
In our view, it is perfectly clear that if France is placed in the situation we [437] have just described, whether she wishes to or not, she will scatter the lava of revolution across Europe.
This will be the only way to create embarrassment for kings within their own territory, which will enable us to breathe more freely at home.
Let foreigners understand this clearly. They can escape danger only by taking the initiative and disarming straightforwardly. This advice will seem foolhardy to them. They will hasten to say, “This is rash.” And we, for our part, say, “This is the most consummate prudence.”
It is this which we will undertake to demonstrate.
EndnotesThe revolution of 1848.
The 1847 budget foresaw 1,357,253,000 francs of revenues and 1,458,725,000 francs of expenses, out of which 335,898,000 were for the army and 108,315,000 for the navy.
T.189 (1848.02.28) "A thought in La Presse" (RF, Feb. 1848)↩
SourceT.189 (1848.02.28) "A thought in La Presse" (untitled in original), La République française, 28 Feb. 1848, no. 3, p. 1. [OC7.44, pp. 213-14.] [CW1.2.4.14, pp. 441-42.]
Editor's Note[to come]
TextLet us share this thought in La Presse:
What we need to ask a provisional government,36 those men who devote themselves to public salvation amid incalculable difficulties, is not to govern in exact accord with all of our ideas, but to govern. We should help it, support it and make its rough task easy, and postpone any doctrinal discussion. The agreement of all the newspapers on this will not be among the least glorious events in our revolution.
We can all the more render to ourselves this homage to abnegation in favor of the common cause, because it is deep within us.
In a few of the decrees which follow one another, we see signs of the application of a doctrine which is not ours. We have combated this and will do so again when the time permits.
Two systems are confronting one another, both of which are born of sincere convictions and both having the common good as their objective. But, it has to be said, they emanate from two quite different ideas, which moreover oppose one another
The first, more seductive and popular, consists in taking a great deal of the people’s earnings, in the form of taxes, in order to spread largesse among the people by way of philanthropic institutions.
The second wants the state to take very little, give very little, guarantee security, and give free rein to the honest exercise of every faculty; one consists in expanding indefinitely, the other in restricting as far as possible, the prerogatives [442] of power. The one of these two systems to which we are attached37 through total conviction has few outlets in the press; it could not have had many representatives in government.
However, full of confidence in the rectitude of the citizens, to whom public opinion has entrusted the mission of building a bridge between our fallen monarchy and our burgeoning and well-ordered republic, we are willing to postpone the manifestation of our doctrine, and we will limit ourselves to sowing ideas of order, mutual trust, and gratitude to the provisional government.
EndnotesA provisional government was formed on 24 February 1848 and presided over by Jacques Charles Dupont de l’Eure, who was a liberal deputy under the restoration and a minister of justice under the July Monarchy. Among the government’s most famous ministers were Lamartine (Foreign Affairs), Ledru-Rollin (Interior), Cremieux (Justice), and two socialists without portfolios: Alexandre Martin (called Albert) and Louis Blanc.
(Paillottet’s note) Here and elsewhere the use of the plural shows that Bastiat was speaking for his colleagues as well as himself. At this time, his signature appears in the paper as a mark of solidarity.
T.190 (1848.02.28) "All our cooperation" (RF, Feb. 1848)↩
SourceT.190 (1848.02.28) "All our cooperation" (untitled in original), La République française, 28 Feb. 1848, no. 3, p. 1. [OC7.46, pp. 218-21.] [CW1.2.4.14, p. 442.]
Editor's Note[to come]
TextAll our cooperation, all our poor portion of influence, is devoted to the provisional government.
Certain of the purity of its intentions, we do not need to discuss all its measures in detail. It would be extremely demanding and even unjust, we might say, to demand perfection in emergency measures whose weight almost exceeds the limits of human strength.
We find it perfectly natural, at a time when the municipality needs so many resources, that local taxes be maintained, and it is an obligation for all citizens to ensure that this revenue is used wisely.
We would have liked the provisional government, however, not to appear to prejudge a major question with these words, “This tax must be revised and it will be shortly; it must be modified so as to make it less burdensome for the laboring classes.”
We consider that we should not seek to modify the city toll but aim to eliminate it.
T.191 (1848.02.28) "On Disarmament" (RF, Feb. 1848)↩
SourceT.191 (1848.02.28) "On Disarmament" (untitled in original), La République française, 28 Feb. 1848, no. 3, p. 1. [OC7.45, pp. 215-17.] [CW1.2.4.12, pp. 437-39.]
Editor's Note[to come]
TextIt asks, “Will we be attacked?” and, after having taken a look at the problems faced by Austria, Prussia, and Russia,31 it answers in the negative.
We agree entirely with this opinion.
What we fear is not being attacked but that the absolutist powers, with or without premeditation and simply through maintaining the military status quo, will reduce us to seeking the salvation of the revolution32 in armed propaganda.
We do not hesitate to repeat what we have said, since we wish to be understood both here and elsewhere. What we say with total conviction is this: We cannot take the initiative of disarming, and yet the simple military status quo gives us the alternative of perishing or fighting. It is for the kings of Europe to calculate the consequences of this fatal alternative. There is just one salvation for them: to disarm themselves first and immediately.
Readers will perhaps allow us a little useful fiction.
[438]Let us imagine a small island, for many years more exploited than governed, with countless taxes and life insufferably curtailed, economically and politically. The nation is bent under the weight of this taxation and what is more it has to withdraw a significant part of its healthy population from the labor force to defend the realm and arm and feed it.
Out of the blue, this nation overthrows its oppressive government, with the aim of freeing itself from burdensome taxes and intolerable politics.
But the government, as it falls, leaves it with a huge burden of debt.
Initially, then, aggregate expenditure increases.
In parallel, however, all sources of revenue have diminished.
Now taxes are so odious that it is morally and materially impossible to maintain them, even provisionally.
Faced with this situation, the great and the good, who run all the nearby islands, anxiously entreat caution on the fledgling Republic:
“We hate you but we do not wish to attack you, in case we suffer harm ourselves. We will make do with surrounding you with a ring of soldiers and guns.”
At this the young Republic is forced to come up with many soldiers and guns in like measure.
It cannot cut back on taxes, even the most unpopular ones.
It cannot keep any of its promises to its people.
It cannot fulfill any of the hopes of its citizens.
It flounders about in its financial straits, increasing taxes with all the burden that that entails. No sooner is the people’s capital—the source of all paid employment—accumulated than it confiscates it.
In this desperate situation, nothing in the world could prevent our government from replying, “Your so-called moderation is killing us. Forcing us to maintain huge armies at the ready is to propel us toward social upheaval. We do not wish to perish and, rather than suffer this, we will stir up within your borders all the elements of disaffection that you have engendered in your own people, since you leave us no other path to salvation.”
This illustrates rather precisely our position with regard to the kings and aristocracies in Europe.
We fear that the kings will not understand this. When have we ever seen them save themselves through prudence and justice?
Nevertheless, we should tell them this. They have just one resource, to act justly toward their people, relieve them from the weight of oppression, and immediately take the initiative and disarm.
[439]Other than this, their crowns run the risk of a huge and prolonged struggle. This is not a question of revolutionary fever, but of historical understanding and the actual nature of the things which conduce to such fever.
The kings will say, “Is it not our right to remain armed?”
Probably so, but at their own risk and peril.
They will also say, “Does not simple prudence require us to remain armed?”
Prudence requires them to disarm immediately and today rather than tomorrow.
In fact all considerations which will impel France to break her bounds, if she is forced to arm, will retain her within them if she is put into a position to reduce her military forces.
In this event the Republic will have a good reason for swiftly eliminating the most odious of the taxes, allowing the people to breathe, giving capital and labor the opportunity to develop, and abolishing the restrictions and encumbrances that are inseparable from heavy taxation.
It will welcome with joy the chance to put into practice the great principle of fraternity it has just emblazoned on its flag.
EndnotesBastiat’s letter is dated 27 February (1848). On 23 February the prime minister, François Guizot, resigned and a number of demonstrators were shot. On 26 February the liberal opposition organized a provisional government and declared the Second Republic, leading to the abdication of King Louis-Philippe.
The Austrian empire, ruled by Metternich under the nominal authority of Ferdinand I; Prussia of Frederick William IV; and the Russian empire of Tsar Nicholas I were the three great absolutist powers in Europe.
The revolution of 1848.
T.192 (1848.02.29) "The General Good" (RF, Feb. 1848)↩
SourceT.192 (1848.02.29) "The General Good" (untitled in original), La République française, 29 Feb. 1848, no. 4, p. 1. [OC7.47, p. 218.] [CW1.2.4.14, pp. 442-44.]
Editor's Note[to come]
TextThe general good, the greatest sum possible of happiness for everyone, and the immediate relief of the suffering classes are the subjects of every desire, every wish, and every preoccupation.
Such, moreover, constitute the greatest guarantee of order. Men are never [443] better disposed to help one another than when they are not suffering, or at least when they cannot accuse anyone, especially not the government, of those sufferings inseparable from human imperfection.
The revolution38 began with a cry for reform. At that time, this word was restricted just to one of our constitutional arrangements. Today, it is still reform that we want, but of the fundamental kind, reform of our economic organization. The people, their complete freedom restored, are going to govern themselves. Does this mean the realization of all their hopes? We cannot bank on this chimera. The people will choose the measures that appear best suited to their purposes, but choice entails the possibility of error. However, the great advantage of government of the nation by the nation is that it has only itself to blame for the results of its errors and that it can always benefit from its experience. Its prudence now should consist in not allowing system builders to experiment too much on it and at its expense.
So, as we have said, two systems, discussed at length by polemicists, now confront one another.
One aspires to create the happiness of the people through direct measures. It says: “If someone suffers in any way, the state will be responsible for relieving him. It will give bread, clothing, work, care, and instruction to all those who need it.” If this system were possible, one would need to be a monster not to embrace it. If somewhere, on the moon perhaps, the state had an always accessible and inexhaustible source of food, clothing, and remedies, who could blame it for drawing on it with both hands for the benefit of those who are poor and destitute?”
But if the state does not have in its possession and does not produce any of these things, if they can be created only by human labor, if all the state can do is to take them by way of taxation from the workers who have created them in order to hand them over to those who have not created them, if the natural result of this operation must be, far from increasing the mass of these things, to discourage their production, if from this reduced mass the state is obliged to keep a part for its agents, if these agents who are responsible for the operation are themselves withdrawn from useful work, and if, finally, this system which appears so attractive at first sight, generates more misery than it cures, then it is proper to have doubts and seek to ascertain whether the welfare of the masses might not be generated by another process.
The one we have just described can obviously be put into practice only [444] by an indefinite extension of taxes. Unless we resemble children who sulk when they are not given the moon when they first ask for it, we have to acknowledge that, if we make the state responsible for spreading abundance everywhere, we have to allow it to spread taxes everywhere, since it cannot give what it has not taken.
However, major taxes always imply major restrictions. If it were only a question of asking France to provide five or six hundred million, you might conceive an extremely simple financial mechanism for gathering it. But if we need to extract 1.5 to 1.8 billion, we need to use all the ruses imaginable in the operation of the tax laws. We need the town taxes, the salt tax, the tax on drink, and the exorbitant tax on sugar; we need to restrict traffic, burden industry, and limit consumers. An army of tax collectors is needed, as is an endless bureaucracy. The liberty of the citizens must be encroached upon, and all this leads to abuse, a desire for civil service posts, corruption, etc., etc.
It can be seen that, if the system of abundance drawn by the state from the people in order to be spread over the people by it, has its attractive side, it is also a medal that has its reverse side.
We, for our part, are convinced that this system is bad, and that there is another for achieving the good of the people, or rather for the people to achieve their own good; this consists in our giving the state all it needs to accomplish its essential mission, which is to guarantee internal and external security, respect people and property, the free exercise of faculties, and the repression of crime, misdemeanors, and fraud, and, after having given this liberally to the state, in keeping the rest for ourselves.
Finally, since the people are called upon to exercise their right, which is to choose between these two systems, we will often compare these before them, in all their political, moral, financial, and economic aspects.
EndnotesThe revolution of 1848.
T.193 (1848.02.29) "The Kings Must Disarm" (RF, Feb. 1848)↩
SourceT.193 (1848.02.29) "The Kings Must Disarm" (Les rois doivent désarmer), La République française, 29 Feb. 1848, no. 4, p. 1.] [OC7.48, pp. 221-22.] [CW1.2.4.13, pp. 439-40.]
Editor's Note[to come]
TextIf only the kings of Europe were prudent, what would they do?
England would freely renounce the right of search.33 She would freely recognize that Algeria is French. She would not wait for these burning questions to be raised, and she would disband half her navy and use these savings to benefit her people by reducing the duties on tea and wine accordingly.
The king of Prussia would liberalize the half-baked constitution of his country,34 and by giving notice to two-thirds of his army he would ensure the devotion of the people by relieving them of the weight of taxes and military service.
[440]The emperor of Austria would quickly evacuate Lombardy and by reducing his army would put himself in a position to increase Austria’s proverbial power.
The tsar would return Poland to the Poles.
All this done, France, no longer anxious as to her future, would concentrate on internal reform and let moral considerations take charge.
The kings of Europe, however, would expect to lose out if they followed this policy, the only one that can save them.
They will do exactly the opposite; they will want to stifle liberalism. So they will arm and the republics will arm too. Lombardy, Poland, and perhaps Prussia will become the theater of war. The alternative laid down by Napoléon, that Europe will be Republican or Cossack, will have to be resolved to the sound of guns. In spite of her ardent love of peace, expressed unanimously by the newspapers, but forced by her evident interest, France will not be able to avoid throwing her sword into the balance and . . . kings perish but nations do not.
EndnotesUnder the honorable pretext of fighting the trade in slaves, the “right of search” in practice gave control of the seas to England. See “On Parliamentary Reform,” note 31, p. 378.
In fact, the kingdom of Prussia did not have a constitution but a set of laws.
T.194 (1848.02.29) "The Sub-Prefects" (RF, Feb. 1848)↩
SourceT.194 (1848.02.29) "The Sub-Prefects" (Les sous-préfectures), La République française, 29 Feb. 1848, no. 4, p. 1. [OC7.49, p. 223.] [CW3]
Editor's Note[to come]
TextWhat is a Sub-Prefecture? It is a letter box. The Prefect writes: “Monsieur Sub-Prefect, here is a letter for the mayor of ...; send it to him without delay and send me his reply along with your opinion.”
The Sub-Prefect replies: “Monsieur Prefect, I have received the letter for the Mayor of ....; I will send it to him without delay and will send you his reply with my opinion.”
For this service, there is a Sub-Prefect in each arrondissement who earns fr. 3,000, fr. 3,000 in administrative costs, a secretary, office rental, etc., etc.
We are mistaken: the Sub-Prefects have another real function, namely that of influencing and corrupting the elections.
For how many days will the Sub-Prefectures be able to survive the February Revolution?
In general, we are in no hurry to call for changes in personnel, but we are adamant in demanding the abolition of useless government jobs.
Endnotes[1] A Prefecture ("la préfecture") is the town in which the administration of a département is carried out. The Prefect ("préfet") is the name of the government official who is charge of the Prefecture. The General Council ("le Conseil général") is the elected body which governs the département. The Départements are further divided into arrondissements (districts), the administrative town of which is called a Subprefecture ("sous-préfecture") which is administered by a Subprefect ("sous-préfet"). Bastiat was elected to the Conseil général of Les Landes in 1833 and again in 1839. See the glossary entry on “French Government Administrative Regions.”
T.195 (1848.03.01) "Untitled Article" (On Diplomacy and Government Jobs) (RF, March 1848)↩
SourceT.195 (1848.03.01) "Untitled Article" (On Diplomacy and Government Jobs), La République française, 1 March 1848, no. 5, p. 1. [OC7.50, p. 223-26.] [CW1.2.4.6, pp. 429-30.]
Editor's Note[to come]
TextA newspaper does not achieve high circulation figures without echoing a few ideas dominant in the country. We acknowledge that La Presse has always been able to speak to the interests of the moment and even that it has often given good advice; in this way it has been able to sow in the soil of the country, along with the good grain, a great deal of chaff which will take a long time to remove.
Since the Revolution, it must be said, its attitude has been frank and resolute.
We are in complete agreement, for our part, with the two clarion calls which it is broadcasting today, No diplomacy! No rush for positions!
No diplomacy! What has the Republic to do with this institution, which has done so much harm and which perhaps has never done any good, where sharp practice is so traditional that it is used in the most simple matters and where sincerity is considered foolishness? It was by a diplomat and for diplomacy’s sake that it was first observed that speech was given to man to disguise his thoughts.
One of the purest English democrats, Mr. Cobden, on a visit to Madrid, was visited by Mr. Bulwer. He said to him: “Ambassador, in ten years Europe will no longer need you.”
When on principle nations are the property of kings, diplomacy and even diplomatic trickery are conceived. Events must be prepared well in advance, as must alliances and wars to expand the domain of the master.
However, what does a people which belongs to itself have to negotiate? All its diplomacy is carried out in the open in deliberating assemblies; its traders are its negotiators, the diplomats of union and peace.
It is true that, even for free peoples, there is a territorial question of the highest importance, that of natural borders. But does this question require the intervention of diplomacy?
Nations know full well that it is in the common interest and in the interest [430] of order and peace that each should have borders. They know that if France withdrew within its limits, that would be one more guarantee of security for Europe.
What is more, the principle that peoples belong to themselves guarantees that, if there has to be a merger, it will take place with the free consent of those involved and not by armed invasion. The Republic has only to proclaim its rights, wishes, and hopes in this respect. There is no need for either ambassadors or trickery to do this.
Without ambassadors and kings, we would not in recent times have had the question of Spanish marriages. Has anyone ever given attention to the marriage of the president of the United States? As for the rush for positions, our desire echoes that of La Presse. We would have liked France in February not to give the world this sad and disgusting spectacle. But we have little hope of this, as we have no illusions about the weakness of the human heart. The means of reducing the rush is to reduce the number of positions themselves. It is puerile to expect lobbyists to restrain themselves; it is up to the public to restrain them.
For this reason, we must constantly repeat: Let us eliminate all superfluous positions. We advise children to think twice before saying something rash. We, for our part, say to the government: Break thirty quills before endorsing the creation of new positions.
A sinecure eliminated will thwart its holder but not enrage him. A sinecure passed from hand to hand exasperates him who has lost it, disappoints ten would-be placemen, and angers the public.
The most difficult part of the task handed down to the provisional government will probably be resisting the flood of requests for such sinecures.
All the more so because several schools of thought, which today are much in favor, hope to increase indefinitely the scope of the government, by repeated taxation, and to have the state do everything.
Other people say: The state needs to spend a great deal in order to provide a living for a great many people.
Is it therefore really so difficult to see that, when the government spends taxpayers’ money, it is not the taxpayers who spend it?
T.196 (1848.03.01) "The Parisian Press" (RF, March 1848)↩
SourceT.196 (1848.03.01) "The Parisian Press" (La Presse parisienne), La République française, 1 March 1848, no. 5, p. 1. [OC7.51, pp. 226-27.] [CW1.2.4.4, pp. 425-26.]
Editor's Note[to come]
TextThe Parisian press offers a spectacle that is no less extraordinary or less imposing than the population on the barricades.
What has happened to the burning and often brutal controversy of late?
The lively discussions will doubtless return. But is it not very consoling [426] to see that at the moment of danger, when the country has an overwhelming need for security, order, and confidence, all forms of bitterness are forgotten and even the most eccentric doctrines endeavor to present themselves in a reassuring light?
Thus, Le Populaire, the communist newspaper, shouts “Respect for ownership!” M. Cabet reminds his followers that they should seek triumph for their ideas only through discussion and by convincing the public.
La Fraternité, the workers’ newspaper, publishes a lengthy program that economists might adopt in its entirety, except perhaps for one or two maxims that are more illusionary than dangerous.
L’Atelier, another newspaper edited by workers, beseeches its brothers to stop the ill-considered movement that in the first instance led them on to smash machinery.
All the newspapers vie with one another in trying to moderate or anathematize another barbarous sentiment that unfortunately the partisan spirit had worked for fifteen years to bolster: chauvinism. Apparently a single day of revolution has caused this engine of war incarnate, to which all the opposition parties have recourse, to disappear, simply by making it irrelevant.
External peace, internal order, confidence, vigilance, and fraternity: these are the watchwords for the entire press.16
(Paillottet’s note) From the second issue of La République française, that of 27 February, until the fifth dated 1 March 1848, Bastiat’s name figures on the last line of the newspaper with the names of its other editors. This is no longer the case in the following issues. Bastiat no longer gave his signature to the newspaper, but limited himself to signing his own articles.
T.197 (1848.03.02) "Petition from an Economist" (RF, March 1848)↩
SourceT.197 (1848.03.02) "Petition from an Economist" (Pétition d'un Economiste), La République française, 2 March 1848, no. 6, p. 2. [OC7.52, pp. 227-30.] [CW1.2.4.5, pp. 426-29.]
Editor's Note[to come]
TextAt the moment a petition is being signed that asks for: A Ministry of Progress or for the Organization of Production.17 On this subject, La Démocratie pacifique has this to say:
“In order to organize production in French society, you have to know how to organize it at the village level, in the living and breathing workshops of the [427] nation. Any serious doctrine of social development must therefore succeed at the level of the basic workshop and be tried out initially on a small parcel of land. Let the Republic therefore create a Ministry of Progress and Organization of Production whose function will be to examine all the plans put forward by the various socialist doctrines and to favor over them a local, free, and voluntary experiment carried out in a territorial unit, the square league.”
If this idea is put into practice, we will ask that we too be given our square league to try out our ideas. Why, after all, should the various socialist schools of thought be the only ones to have the privilege of having at their disposal square leagues, basic workshops, and everything which constitutes a locality, in short, villages?
They say that it is a matter of free and voluntary experiments. Are we to understand that the inhabitants of the commune who will be subjected to socialist experimentation will have to agree to it and that, on the other hand, the state should not take part with revenue raised from other communes? If so, what is the use of the petition, and what prevents the inhabitants of communes from carrying out freely, voluntarily, and at their own expense social experiments on themselves? Or is the intention that the experiment be forced or at the very least supported by funds raised from the entire community?
This in itself will provide a highly inconclusive result for the experiment. It is quite clear that having all the nation’s resources at our disposal, we might squander a great deal of welfare on a square league of land.
In any case, if each inventor in the field of social organization is called upon to carry out his experiment, let us register ourselves and formally request a commune to organize.
Our plan is otherwise very simple.
We will claim from each family and through a single tax a very small part of its income, in order to ensure the respect of persons and ownership, the elimination of fraud, misdemeanors, and crimes. Once we have done this, we will carefully observe how people organize themselves.
Religion, teaching, production, and trade will be perfectly free. We hope that, under this regime of liberty and security, with each inhabitant having the facility, through free trade, to create the largest sum of value possible, in any form which suits him, capital will be built up with great speed. Since all capital is intended to be used, there will be fierce competition between capitalists. Therefore earnings will rise; therefore workers, if they are far-sighted and thrifty, will have a great opportunity to become capitalists; and [428] therefore it will be possible to create alliances or associations whose ideas are conceived and matured by themselves alone.
As the single tax will be modest in the extreme, there will be few civil service posts and few civil servants, no wasted efforts, and few men withdrawn from production.
As the state will have very restricted and well-defined powers, its inhabitants will have total freedom to choose their work. Here it should be noted clearly that any wasteful civil service post is not only a burden on the community but an infringement of the freedom of citizens. About the public services imposed without debate on the citizens, there are no half measures; either they are useful or else essentially harmful; they cannot be neutral. When a man exercises an action with authority, not over things but over his fellow men, if he does not do them good, he must necessarily do them harm.
With taxes thus reduced to the minimum required to procure security for all, lobbyists, abuses, privileges, and the exploitation of laws for individual interests will also be reduced to a minimum.
Since the inhabitants of this experimental commune will have, through free trade, the opportunity of producing the maximum value with the minimum work, the square league will provide as much welfare as the state of knowledge, activity, order, and individual economy allows.
This welfare will tend to spread out in an ever-more egalitarian manner, since, as the highest paid services will be the most sought after,18 it will be impossible to amass huge fortunes, especially since the minimum level of tax will not allow great public contracts, loans, nor speculation, all sources of the scandalous fortunes we see accumulating in a few hands.
Since this small community will be interested in attacking no one and all the others will have an interest in not attacking it, it will enjoy the most profound peace.
Citizens will feel loyal to the country because they will never feel slighted or held back by the agents of the government, and to its laws because they will recognize them as based on justice.
In the conviction that this system, which has the merit at least of being simple and respecting human dignity, is all the better if it applies to a wider territory and a greater number of people, since it is there that the most security [429] is obtained with the least taxes, we conclude that if it succeeds in a commune, it will succeed at the level of the nation.
EndnotesThe title of the petition was “A Ministry of Progress, Work Organization, and Abolition of the Exploitation of Man by Man.”
(Paillottet’s note) In the sense that they attract competition the most.
T.198 (1848.03.04) "Freedom of Teaching" (RF, March 1848)↩
SourceT.198 (1848.03.04) "Freedom of Teaching" (Liberté de l'enseignement), La République française, 4 March 1848, no. 7, p. 1. [OC7.53, pp. 231-32.] [CW1.2.4.2, pp. 419-20.]
Editor's Note[to come]
TextAll the acts of the provisional government relating to public education are designed, we are annoyed to say, in a spirit that supposes that France has abandoned freedom of teaching.9
[420]The circular from the minister to the rectors convinces us of this.
Here is a decree that creates a commission for scientific and literary studies.
Out of the twenty members who make it up, fifteen of them at least, if we are not mistaken, belong to the university.
In addition, the final article of the decree lays down that this commission will add another ten members, chosen by itself, as it says, from civil servants in primary and secondary education.
We cannot help noticing here that, of all the branches of national activity, that which has made perhaps the least progress is the teaching profession. It is still approximately at the stage it was in the Middle Ages. The idylls of Theocrates and the odes of Horace are still the basis of the instruction we give to the youth of the nineteenth century. This appears to indicate that there is nothing less progressive and more immutable than that carried out by government monopoly.
In France, there is a large school of opinion that thinks that, apart from legal repression or abuse, every citizen should have the free exercise of his faculties. This is both the prerogative of progress and its necessary condition. This is how they view liberty in the United States, and empirically this experiment is just as revealing as our experiences with monopoly in Europe. It should be noted that none of the men who belong to this school, known as the économiste school, has been called upon to join any of the commissions that have just been organized.
It is not surprising that they have been kept away from paid public office. They have kept themselves away and they had to, since their ideal is to reduce the number of positions to those that are essential for maintaining order, internal and external security, respect for persons and property, and, at the very least, the creation of a few projects of national importance.
However, that their contribution to simple surveys is systematically overlooked is a significant eventuality; it proves that we are being swept along by a hypertrophy of government, one which threatens an endless diminution of true liberty.
EndnotesOn 29 February 1848, a High Commission for Education was set up to help the minister of education.
T.199 (1848.03.05) "The Scramble for Office" (RF, March 1848)↩
SourceT.199 (1848.03.05) "The Scramble for Office" (Curée des Places), La République française, 5 March 1848, no. 8, p. 1. [OC7.54, pp. 232-34.] [CW1.2.4.7, pp. 431-32.]
Editor's Note[to come]
TextAll the newspapers, without exception, are speaking out against the scramble for office of which the Town Hall19 is given a sad example. Nobody could be more indignant about, or more disgusted by, this frenzied greed than we.
But at the end of the day we have to find the cause of the evil, and it would be puerile to expect the human heart to be other than it has pleased nature to make it.
In a country in which, since time immemorial, the labor of free men has everywhere been demeaned, in which education offers as a model to all youth the mores of Greece and Rome, in which trade and industry are constantly exposed by the press to the scorn of citizens under the label profiteering, industrialism, or individualism, in which success in office alone leads to wealth, prestige, or power, and in which the state does everything and interferes in everything through its innumerable agents, it is natural enough for public office to be avidly sought after.
How can we turn ambition away from this disastrous direction and redirect the activity of the enlightened classes toward productive careers?
Obviously by eliminating a great many public posts, limiting government action, leaving a wider, freer, and more prestigious role to private activities and reducing the salaries for high public office.
What should our attitude be then to those theories, so fashionable currently, which propose the transfer into the world of paid public service, of activities still in the realm of private industry? La Démocratie pacifique wants the state to provide insurance, public transport, and haulage, and also to handle the trading of wheat, etc., etc., etc.
Do these ideas not provide fresh fuel for this disastrous mania which so offends honest citizens?
We do not want to discuss the other disadvantages of these proposals here. Examine one after the other all the industries managed by the state and see if these are not, indeed, the ones through which citizens are the most badly and most expensively served.
[432]Take education, obstinately limited to the study of two languages dead these two thousand years.
See what kind of tobacco is provided to you and at what price.20
Compare in terms of regular supply and proper market price the distribution of printed matter by the public authority in the rue Jean-Jacques Rousseau with that by individual enterprises in the rue de la Jussienne.
However, setting aside these considerations, is it not evident that the scramble for office is and will always be proportional to the enticement to it?
Is it not evident that having industry run by the state is to remove work from honest activity in order to deliver it to lazy and indolent intrigue?
Finally, is it not clear that it will make the disorder which the Town Hall exemplifies, a disarray which saddens the members of the provisional government, permanent and progressive?
EndnotesThe Town Hall of Paris was the seat of the temporary government after the “three glorious days” of February 1848.
The sale of tobacco products was a state monopoly in France.
T.200 (1848.03.06) "Impediments and Taxes" (RF, March 1848)↩
SourceT.200 (1848.03.06) "Impediments and Taxes" (Entraves et Taxes) (Untitled Article), La République française, 6 March 1848, no. 9, p. 1. [OC7.55, pp. 234-35.] [CW1.2.4.8, pp. 432-33.]
Editor's Note[to come]
TextWhile a movement, possibly an irresistible one, is pushing us toward the hypertrophy of the state, and an increase in the number of taxes as well as of the irritating encumbrances such an increase inevitably entails, a very pronounced change in the opposite direction is apparent in England, one which will perhaps lead to the fall of the government.
There, every experiment and every effort to achieve good through the intervention of the state results in disappointment. It will soon be realized that good is not being achieved and that the experiment leaves behind it just one thing: tax.
Thus, last year, a law was passed to regulate the work of factories and the execution of this law required the creation of a body of civil servants.21 Today, entrepreneurs, workers, inspectors, and magistrates agree in acknowledging [433] that the law has encroached upon all the interests in which it has interfered. Only two things remain: disorder and taxes.
Two years ago, the legislature dashed off a constitution for New Zealand22 and voted for considerable expenditure to implement it. In spite of this, the said constitution collapsed badly. The only thing that did not fall, however, was taxation.
Lord Palmerston believed he had to intervene in the affairs of Portugal.23 He thus brought down on the name of England the hatred of an allied nation, and that at a price of fifteen million francs, or a hefty tax.
Lord Palmerston persists in seizing Brazilian ships24 engaged in the slave trade. To do this, he endangers the lives of a considerable number of English sailors, subjects British subjects living in Brazil to affronts, and makes a treaty between England and Rio de Janeiro impossible; all this damage is paid in ships and legal actions, that is to say, in the form of taxes.
The result is that the English are paying, not for receiving benefits, but for suffering damages to England.
The conclusion that our neighbors appear to wish to draw from this phenomenon is this: that the people, after having paid what is necessary to their political masters to guarantee their security, keep the rest for themselves.
This is a very simple thought, but it will sweep the world.
EndnotesOn 3 May 1847, the Whig government of John Russell adopted the Factory Bill (Ten Hours’ Bill), which limited the work of women and young people under eighteen to ten hours on weekdays and eight hours on Saturday.
By the treaty of Waitangi, the Maoris acknowledged English sovereignty but did not accept the constitution.
The queen of Portugal, Maria II, was threatened by rebels. Palmerston imposed a compromise that was not observed.
In 1845 Brazil had not yet abolished slavery. Palmerston decided that suspicious Brazilian ships would be inspected, even in territorial waters, and that guilty shipowners and captains would be prosecuted by British tribunals (Aberdeen Bill). The bill was applied.
T.201 (1848.03.12) "The Immediate Relief of the People" (RF, March 1848)↩
SourceT.201 (1848.03.12) "The Immediate Relief of the People" (Soulagement immédiat du peuple), La République française, 12 March 1848, no. 15, p. ?? [OC2, pp. 459-60.] [CW3 - ES3.21]
Editor's Note[to come]
TextXXI. The Immediate Relief of the People729 730 [12 March 1848] (final draft)↩
Publishing history- Original title, place and date of publication: “Soulagement immédiat du peuple” (The Immediate Relief of the People) [12 March 1848, La République française]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 2: Le Libre-Échange (1855), pp. 459-60. Published as one of the “Small Posters of Jacques Bonhomme.”731
- Previous translation: [none]
People,732
You733 are being told: “You have not enough to live on; let the State add what is missing.” Who would not wish for this if it were possible?734
But alas, the tax collector’s coffers are not the wine pitcher of Cana.735
When Our Lord put one liter of wine in this pitcher, two came out, but when you put one hundred sous in the coffers of the tax collector,736 ten francs do not emerge; not even one hundred sous come out, since the collector keeps a few for himself.
How then does this procedure increase your work or your wages?
The advice being given to you can be summed up as follows: You will give the State five francs in return for nothing and the State will give you four francs in return for your work. An exchange for dupes.737
People, how can the State keep you alive, since it is you who are keeping the State alive?
Here are the mechanics of charity workshops presented systematically:738 739
The State takes six loaves of bread from you; it eats two and demands work from you in order to give you back four. If now you ask it for eight loaves, it can do nothing else but this: take twelve from you, eat four and make you earn the rest.
People, be more alert; do as the Republicans of America do: give the State only what is strictly necessary and keep the rest for yourself.
Demand the abolition of useless functions, a reduction of huge salaries, the abolition of special privileges, monopolies and deliberate obstructions and the simplification of the wheels of bureaucracy.
With these savings, insist on the abolition of city tolls, the salt tax, the tax on cattle and on wheat.740
In this way, the cost of living will be cheaper, and since it will be cheaper each person will have a small surplus of his present wages; with this small surplus multiplied by thirty-six million inhabitants, each person will be able to take on and pay for a new form of consumption. With everyone consuming a little more, we will all get a little more employment for each other and, since labor will be in greater demand in the country, wages will rise. Then, oh people, you will have solved the problem, that of earning more sous and obtaining more things for each sou.
This is not as brilliant as the alleged wine pitcher of Cana of the Luxembourg Palace741, but it is sure, solid, practicable, immediate and just.
Endnotes729 (Paillottet’s note) Among the many journals that started up on 24 February 1848 and which had a fleeting existence only, must be counted Jacques Bonhomme, to whose editing Bastiat contributed. This publication, which aimed to enlighten the people, contained a final article intended to be put up for the public to read free of charge. [DMH - Paillottet is mistaken as he confuses the two revolutionary broadsides which Bastiat and his colleagues published during the revolution. The first magazine was La République française which appeared between 26 February and 28 March (30 issues) just after the Revolution broke out on 22-23 February. The second was called Jacques Bonhomme and it appeared briefly between 24 June and 13 July 1848 (4 issues). Paillottet obviously is confusing the title of the magazine with the main protagonist whom Bastiat used repeatedly in his writings, namely the French everyman “Jacques Bonhomme”, who was used by Bastiat to express his political and economic views. See the glossary entries "Jacques Bonhomme. [person]", "Jacques Bonhomme. [journal]," and “La République française.”]
730 This and the next three articles mark a break with the previous ones as they were all written immediately after the outbreak of revolution on 22-24 February 1848. Protests and riots forced King Louis Philippe to resign and on the evening of 24 February a Provisional Government was proclaimed, followed the next day by the the Second Republic. Bastiat and some of his younger friends (Gustave de Molinari and Hippolyte Castille) decided to form a magazine in order to spread their ideas about constitutional government and free markets among the workers and protesters in Paris. Thus was launched the short lived magazine La République française from which some of the following articles are taken. See the glossary entries on "The 1848 Revolution," “The Chronology of the 1848 Revolution,” "Molinari," and “Castille.” For a list of the articles Bastiat wrote for his revolutionary magazines see the Appendix “Articles by Bastiat which were published in La République française and Jacques Bonhomme.” See the Appendix on "Bastiat's Republicanism."
731 See the glossary entry "Jacques Bonhomme."
732 This and the next piece were designed as a wall poster to be pasted to the walls lining the streets of Paris so the rioting population could read them during the early days of the February Revolution.
733 In his address to the people Bastiat uses the familiar “tu” form of you.
734 In this and the next article Bastiat prefigures his definition of the state as “the great fiction by which everyone endeavours to live at the expense of everyone else” which he developed during the course of 1848. A draft of the essay appeared in his revolutionary magazine Jacques Bonhomme in June 1848 (see CW, vol. 2, pp. 105-06), a larger article on “The State” appeared in the Journal des débats in September 1848, and it was subsequently published as a separate booklet of the same name later that same year (see CW, vol. 2 , pp.93-104).
735 This is a reference to the first public miracle which Christ was reported to have done when he turned water in wine at a wedding feast in the town of Cana. See John 2, verses 1-11.
736 Bastiat uses the word "buraliste" which usually refers to a "tobacconist" who would sell state monopolized and heavily taxed tobacco products to smokers. It thus has another meaning to do with the collection of taxes and could also be used more generally to refer to any clerk who collected taxes on behalf of the state.
737 The words "duperie" (deceit) and "dupes" (those who are deceived) are key terms in Bastiat's theory of plunder ("spoliation"), according to which the plunderers ("les spoliateurs") deceive their victims by means of “la ruse” (deception, fraud) to justify and disguise what they are doing. By means of "Sophisms" (sophistical arguments and fallacies) the dupes are persuaded that the plundering of their property is necessary for the well-being of the nation and thus ultimately for their own good as well. See ES2 I. “The Physiology of Plunder” and the glossary entry on “Bastiat on Plunder.”
738 (Bastiat's note) Jacques Bonhomme does not mean to criticize emergency measures.
739 Bastiat is referring to the "National Workshops" created on February 27, 1848 to employ unemployed workers at government expence. The workers got paid 2 francs a day, which was soon reduced to 1 franc because of the tremendous increase in their numbers (29 000 on March 5; 118 000 on June 15). Struggling with financial difficulties, irritated by the inefficiency of the workshops, the Assembly dissolved them on June 21 prompting widespread rioting in the streets of Paris (known as the “June Days”) which was bloodily put down by the army under General Cavaignac. Although Bastiat opposed the policy of the National Workshops he defended the right of the workers to protest and opposed the army shooting them in the streets. See the glossary entry on “The National Workshops.”
740 See the glossary entry on “French Taxes.”
741 The Luxemburg Palace was the headquarters of the "Government Commission for the Workers". See the glossary entry on “The National Workshops.”
T.202 (1848.03.14) "A Disastrous Remedy" (RF, March 1848)↩
SourceT.202 (1848.03.14) "A Disastrous Remedy" (Funeste remède), La République française, 14 March 1848, no. 17, p. 1. [OC2, pp. 460-61.] [CW3 - ES3.22]
Editor's Note[to come]
TextXXII. A Disastrous Remedy742 [12 March 1848] (final draft)↩
Publishing history- Original title, place and date of publication: “Funeste remède” (A Disastrous Remedy) [12 March 1848, La République française]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 2: Le Libre-Échange (1855), pp. 460-61. Published as one of the “Small Posters of Jacques Bonhomme.”743
- Previous translation: [none]
When our brother suffers we must come to his aid.
However, it is not the goodness of the intention that makes the goodness of the medicine. A mortal remedy can be given in all charity.
A poor worker was ill. The doctor arrived, took his pulse, made him stick out his tongue and said to him: “Good man, you are undernourished.” “I think so too,” said the dying man, “however, I did have an old doctor who was very skilled. He gave me three-quarters of a loaf of bread each evening. It is true that he took the whole loaf from me each morning and kept a quarter of it as his fee. I turned him away when I saw that this regime was not curing me.” “My friend and colleague was an ignorant man who thought only of his own interest. He did not see that your blood was anemic. This has to be reorganized.744 I am going to transfuse some new blood in your left arm and to do this I have to take it out of your right arm. But provided that you take no account either of the blood that comes out of your right arm or the blood that will be lost during the operation, you will find my remedy admirable.”745
This is the position we are in. The State tells the people: “You do not have enough bread; I will give you some. But since I do not make any, I will begin by taking it from you and when I have satisfied my appetite, which is not small, I will make you earn the rest.”
Or else: “Your earnings are not high enough, pay me more tax. I will distribute part to my agents and with the surplus, I will set you to work.”
And if the people have eyes only for the bread being given to them and lose sight of the bread being taken away from them;746 if they can see the small wage which taxes provide but don't see the large part of their wage which taxes take away, then we can predict that their illness will become more serious.
Endnotes742 This and the last piece were designed as a wall poster to be pasted to the walls lining the streets of Paris so the rioting population could read them during the early days of the February Revolution.
743 See the glossary entry on “Jacques Bonhomme [person].”
744 Bastiat uses the word "réorganiser" to make reference to one of the key slogans of the socialists in February 1848, namely "l'organisation" (the organisation of labor and industry by the state for the benefit of the workers). See Louis Blanc's highly influential book L’Organisation du travail (1839) which was reprinted many times. See also the glossary entries on "Blanc" and “Association and Organization.”
745 Recall Bastiat’s parody of Molière’s parody of 17th century doctors who bled their patients in ES2 IX. "Theft by Subsidy", above p. ??? See “Bastiat’s Rhetoric of Liberty” in the Introduction, above, pp. ??? for a discussion of this.
746 See Bastiat’s pamphlet which follows entitled “What is Seen and What is not Seen” for an extended discussion of this point.
T.204 (1848.03.15) "Disastrous Illusions" (JDE, March 1848)↩
SourceT.204 (1848.03.15) "Disastrous Illusions" (Funestes illusions. Les citoyens font vivre l'État. L'État ne peut faire vivre les citoyens), Journal des Economistes, 15 March 1848, T. 19, no. 70, pp. 323-33. [OC2, pp. 466-82.] [CW3 - ES3.24]
Editor's Note[to come]
TextXXIV. Disastrous Illusions [March 1848]753 (final draft)↩
Publishing history- Original title, place and date of publication: “Funestes illusions” (Disastrous Illusions) [Journal des Economistes, March 1848, T. 19, pp. 323-33.]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 2: Le Libre-Échange (1855), pp. 466-82.
- Previous translation: [none]
CITIZENS GIVE THE STATE LIFE
THE STATE CANNOT GIVE ITS CITIZENS LIFE
It has sometimes happened that I have combated Privilege by making fun of it. I think this was quite excusable. When a few people wish to live at the expense of all, it is totally permissible to inflict the sting of ridicule on the minority that exploits and the majority that is exploited.
Now, I am faced with another illusion. It is no longer a question of particular privileges, but of transforming privilege into a common right. The entire nation has conceived the odd idea that it could increase production indefinitely by handing it over to the State in the form of taxes in order for the State to give it back a portion in the form of work, profit and pay.754 The State is being requested to ensure the well-being of every citizen; and a long and sorry procession, in which every sector of the work force is represented, from the severe banker to the humble laundress, is parading before the organizer in chief755 in order to ask for financial assistance.
I would keep quiet if it were a matter only of temporary measures that were required and to some extent justified by the upheaval of the great revolution that we have just accomplished, but what people are demanding are not exceptional remedies but the application of a system. Forgetting that citizens’ purses fill that of the State, they want the State’s purse to fill those of the citizens.
I do have to make it clear that it is not by using irony and sarcasm that I will be striving to dispel this disastrous illusion. In my view at least, it casts a somber shadow over the future, which I very much fear will be the rock on which our beloved Republic will founder.756
Besides, how will we summon up the courage to admonish the people for not knowing what they have always been forbidden to learn, and for cherishing in their hearts illusionary hopes that have assiduously been placed there?
What did those in power in this century, the major landowners and manufacturers, do in the past as they continue to do? They demanded additional profit from the law to the detriment of the masses. Is it surprising, therefore, that the masses, now in a position to make the law, are also requiring additional pay? But alas! There is no other mass beneath them from which this source of subsidy can arise. With their gaze fixed on power, businessmen transformed themselves into solicitors of the legislature. Arrange for me sell my wheat more profitably! Arrange for me an increased profit from my meat! Raise the price of my iron, my woolen cloth or my coal artificially! These were the cries that deafened the Chamber, the very seat of privilege. Is it surprising that the people, now that they are victorious, are becoming solicitors of the legislature in their turn? But alas! Although the law is able, at a stretch, to give handouts to a few privileged people at the expense of the nation, how can we imagine that it can give handouts to the entire nation?757
What example is being given at present even by the middle class? It is seen harrassing the provisional government and leaping on the budget as though onto its prey. Is it surprising that the people are also displaying the very modest ambition of making a living, at least through work?
What used those who governed to say repeatedly? At the slightest gleam of prosperity, they attributed its entire merit to themselves without ceremony; they made no mention of the popular virtues that are its basis nor of the activity, order and economy of the workers. No, they claimed the authorship of this prosperity, which incidentally is highly doubtful. Less than two months ago, I heard the minister of trade758 say: “Thanks to the active intervention of the government, thanks to the wisdom of the king, thanks to the patronage of science, all the productive classes are flourishing.” Should we be surprised that the people have ended up believing that they obtain well-being from above, like manna from heaven, and that they now turn their gaze to the regions of power? When you claim the merit for all the good that occurs, you incur responsibility for all the harm that arises.
This reminds me of a parish priest in our region. In the initial years of his residence no hail fell in the village, and he succeeded in convincing the good villagers that his prayers had the infallible virtue of chasing storms away. This was fine so long as it did not hail, but at the first onset of the calamity he was chased out of the parish. People said to him: “Is it out of ill-will, therefore, that you have allowed us to be struck by the storm?”
The Republic was inaugurated with a similar disappointment. It made this statement to the people, who were, incidentally, only too happy to hear it: “I guarantee well-being to all citizens.”759 And let us hope this statement does not attract storms to our country!
The people of Paris have gained eternal glory through their courage.
They have aroused the admiration of the entire world for their love of public order and their respect for all rights and property.
All that remains to them is to accomplish another particularly difficult task, that of rejecting the poisoned chalice that is being presented to them. I say this with conviction; the entire future of the Republic is now resting on their common sense. It is no longer a question of the honesty of their intentions, no one can fail to recognize this; it is a question of the honesty of their instincts. The glorious revolution that they have achieved through their courage and preserved through their wisdom has just one danger to face, disappointment, and against this danger there is just one lifeline, the sagacity of the people.
Yes, if friendly voices warn the people, if courageous spirits open their eyes, something tells me that the Republic will avoid the gaping abyss that is opening in front of it, and if this happens, what a magnificent sight France will present to the world!760 A people triumphing over its enemies and false friends, a people that is conquering the obsessions of others and its own illusions!
I will start by saying that the institutions that weighed us down just a few days ago have not been overturned, and that the Republic, or the government of everyone by all, has not been founded in order to leave the people (and by this term I now mean the working class, those earning wages or what used to be called the proletariat) in the same situation as they were before.
That is the will of all, and it is their own will that their situation should change.
However, two means are open to them and these means are not only different, they are, it has to be said, diametrically opposed to each other.
The school of thought known as the Economist School761 proposes the immediate dismantling of all privileges and all monopolies, the immediate elimination of all non-useful state functions, the immediate reduction of all excessive salaries, deep reductions in public expenditure, and the reorganization of taxes so that those that weigh heavily on public consumption, those that hamper their movement and paralyze their work, are got rid of. For example, this school demands that city tolls, the salt tax,762 the duties on the import of subsistence items and working tools to be abolished forthwith;
that it demands that the word Liberty, which floats on all our banners and which is engraved on all our buildings, become the truth at last.
that it demands that, after paying the government what is essential for maintaining internal and external security, repressing fraud, misdemeanors and crime and subsidizing the major works of national utility, THE PEOPLE SHOULD KEEP THE REST FOR ITSELF.
It confidently asserts that the more the people contribute to the security of persons and property, the faster capital will grow.
And that capital will grow even faster if the people are able to keep their wages for themselves instead of handing them over to the state through taxes.
And that rapid capital formation necessarily implies that wages will rise rapidly, with the result that the working classes will gradually increase their level of well-being, independence, education and dignity.
This system does not have the advantage of promising the instant achievement of universal happiness, but it appears to us to be simple, immediately practicable, in conformity with justice, faithful to freedom and likely to encourage all human tendencies to equality and fraternity. I will return to this once I have set out in detail the views of another school, which appears right now to have the upper hand in popularity.
This school also wants the good of the people, but it claims to achieve it through a direct route. Its pretension is no less than to increase the well-being of the masses, that is to say, increase their consumption, while reducing their work, and in order to accomplish this miracle it has conceived the idea of drawing additional pay either from the common purse or from the excessive profits of business entrepreneurs.
It is the dangers of this system that I propose to point out.
Let no one misunderstand what I am saying. I do not mean here to condemn voluntary association.763 I sincerely believe that association will enable great progress to be made in every sphere of human endeavor. Tests are being carried out at this time, in particular by the management of the Northern Railway764 and that of the journal, La Presse.765 Who could criticize these attempts? I myself, before I had ever heard of the École sociétaire766, had conceived a project for a farming association with the aim of improving the sharecropping system.767 Health reasons were the only cause of my relinquishing this enterprise.
The cause of my doubts, or to put it frankly, what my strong conviction rejects with all its strength, is the clear tendency that you have doubtless noticed, and which also perhaps carries you along with it, to invoke State intervention in all matters, and in particular for the achievement of our Utopias,768 or our “systems” if you prefer, with legal coercion as the principle and public money as the means.
You may well emblazon Voluntary Association on your flag: I say that if you call upon the aid of law and taxes, the ensign is as total a lie as it can be, since in that case there is no longer association nor a voluntary act.
I will devote myself to demonstrating that the excessive intervention of the State cannot increase the well-being of the masses and that, on the contrary, it tends to decrease it;
that it deletes the first word of our Republican motto, the word Liberty;
that while it is erroneous in principle, it is particularly dangerous for France, and threatens to engulf, in a great and irreparable disaster, private wealth, public wealth, the fate of the working classes, our institutions, and the Republic.769
In the first place, I say that the promises of this deplorable system of thought are illusory.
And really, this seems so obvious to me that I would be ashamed to spend time on a long demonstration of this if striking facts did not convince me that this demonstration is necessary.
For what is the sight being offered to us by the country?
At the Town Hall770, there is a scramble for office, at the Luxembourg Palace a scramble for wages.771 The first leads to ignominy, the second to deep disappointment.
As for the scramble for office, the obvious remedy would be to abolish all useless functions and reduce the remuneration of those functions that excite greed; but this prey is left in its entirety to the avidity of the bourgeoisie, and these people rush after it madly.
What happens then? The people in turn, the people who are the workers, who witness the joys of an existence ensured by public resources, forgetting that they themselves make up this public and that the budget is made up of their flesh and blood, demand in their turn that a scramble be prepared for them.
Long delegations throng around the Luxembourg Palace, and what do they demand? An increase in pay, that is to say, in a word, an improvement in the workers’ means of existence.
However, those who go to these delegations personally are not merely acting on their own account. They genuinely mean to represent the entire great confraternity of workers who people both our towns and our countryside.
Material well-being does not consist in earning more money. It consists in being better fed, clothed, housed, heated, lit, educated, etc., etc.
What they are asking for then, when you go into the detail of things, is that from the glorious era of our revolution, each Frenchman who is a member of the working classes should have more bread, wine, meat, linen, furniture, iron, fuel, books, etc., etc.
And, something that beggars belief, at the same time some of these want to decrease the work needed to produce these things. Some, fortunately few in number, even go so far as to demand the destruction of machines.772
Can a contradiction as flagrant as this ever be imagined?
Unless the miracle of the wine pitcher of Cana773 be repeated in the coffers of the tax collector, how can the State take more out of them than the people put in? Do the people believe that for each hundred sou coin that goes into these coffers ten francs can be taken out? Alas, just the opposite is true. The hundred sou coins that the people cast into them whole and entire come out again only badly clipped, since the tax collector has to keep a share of them for himself.
What is more, what does money mean? Even if it were true that you could withdraw from the public Treasury a fund of wages that was different from what the public itself had put into it, would you be better off? It is not a matter of money, but of food, clothing, housing, etc.
Well, has the organizer who sits in the Luxembourg Palace774 the power to multiply these things by decree? Or, if France produces 60 million hectoliters of wheat, is he able to ensure that each of our 36 million fellow citizens receives 3 hectoliters, and the same thing for iron, woolen cloth and fuel?
Recourse to the public Treasury as a general practice is thus deplorably mistaken. It is ensuring that a cruel disappointment is in store for the people.775
Doubtless it will be said: “No one is thinking of such absurdities. What is clear, however, is that some in France have too much and others not enough. What we are trying to do is to level things justly and distribute things more equitably.”
Let us examine the question from this point of view.
If what they mean is that, once they had removed all the taxes that could be removed, all those that remained should as far as possible be borne by the class best able to support them, our wishes could not be better expressed. But that is too simple for the organizers; it is good for economists.
What people want is for each Frenchman to be well supplied with everything. It has been announced in advance that the State would guarantee the well-being of all, and the question is to know whether it is possible to squeeze the wealthy class sufficiently in favor of the poor class to achieve this result.
Setting the question out is to solve it, for in order for everyone to have more bread, wine, meat, woolen cloth, etc. the country has to produce more of these, and how can you take from a single class, even the wealthy class, more than all the classes together produce?
Besides, you should note this clearly: it is a question here of taxes. These have already reached a billion and a half.776 The trends I am combating, far from allowing any decreases, will lead to inevitable increases.
Allow me a rough calculation.
It is extremely difficult to put an accurate figure on the two classes, but we can come close to one.
Under the regime that has just fallen, there were 250 thousand electors.777 Assuming 4 members per family, this implies one million inhabitants, and everyone knows that electors paying 200 francs of taxes were very close to belonging to the class of less well off landowners. However, to avoid any argument, let us attribute to the wealthy class not only these million inhabitants, but sixteen times this number. This is already a reasonable concession. We therefore have sixteen million wealthy people and twenty million who are, if not poor, at least brothers who need assistance. If we assume that a very insignificant addition of 25 percent per day is essential to put into practice philanthropic views that are more benevolent than enlightened, this means a tax of five million per day or close to two billion per year and we can even make it two billion to include the costs of collection.
We are already paying one and a half billion. I am willing to admit that with a more economic system of administration we can reduce this figure by one third : we would still have to levy three billion. Well, I ask you, can we envisage levying three billion from sixteen million of the wealthiest inhabitants in the country?
A tax like this would be confiscatory, and look at the consequences. If in fact all property was confiscated as quickly as it was created, who would take the trouble to create property? People do not work just to live from day to day. Among the most powerful incentives to work, perhaps, is the hope of acquiring a nest egg for one’s old age, to set one’s children up and to improve the situation of one’s family. But if you organize your financial system in a way that confiscates all property as it is created, no one would be interested in either work or thrift and capital would not be built up; it would decrease rapidly, if indeed it did not suddenly go abroad, and in this case, what would become of the very class that you wished to relieve?
I add another truth here that it is essential for the people to learn.
In a country in which tax is very moderate, it is possible to share it out in accordance with the rules of justice and collect it at little cost. Assume, for example, that France’s budget did not exceed five or six hundred million. I sincerely believe that if this were so, according to this hypothesis, it would be possible to establish a single tax based on the property acquired (both movable and fixed).
But when the State extracts from the nation one quarter, one third or half of its income, it is reduced to acting with deception,778 increasing the number of sources of revenue and inventing the strangest and at the same time most vexatious of taxes. It ensures that tax is combined with the price of things, so that taxpayers pay it unknowingly. This gives rise to the consumption taxes that are so disastrous for the free movement of industry. Well, anyone who has had dealings with finance is fully aware that this type of tax is productive only if it is levied on the most general of consumer products. It is no good basing your hopes on taxes on luxury articles; I call on these earnestly for reasons of equity, but they can never provide more than an insignificant contribution to a huge budget. People would be deluding themselves totally if they thought it was possible, even for the most popular government, to increase public spending which is already heavy and at the same time to make the wealthy class alone responsible for bearing it.
What should be noted is that, from the moment recourse is made to consumption tax (which is the inevitable consequence of a heavy budget), the equality of the burden is destroyed, since the objects subjected to taxes form a greater part of the consumption of the poor than the consumption of the wealthy, in proportion to their respective incomes.
In addition, unless we enter into inextricable difficulties of classification, when we subject a given object, wine for example, to a uniform tax, the injustice leaps to the eye. A worker who buys one liter of wine at 50 centimes per liter that is subjected to a tax of 50 centimes, pays 100 per cent. The millionaire who drinks Lafitte wine at 10 francs a bottle pays 5 percent.779
From every angle, therefore, it is the working class that has the most interest in seeing the budget reduced to proportions that allow taxes to be simplified and equalized. But in order to do this they must not be dazzled by all these philanthropic projects, which have just one certain result: that of increasing nation-wide charges.
If the increase in taxes is incompatible with equality between taxpayers and with the security that is essential for capital to be created and increased, it is no less incompatible with freedom.
I remember in my youth reading one of the sentences so familiar to Mr. Guizot,780 who was then a mere substitute teacher. To justify the heavy budgets that appeared to be the obligatory corollaries of constitutional monarchies, he said: “Freedom is an asset that is so precious that a nation should never trade it away.” From that day on, I said to myself: “Mr. Guizot may have eminent abilities but he would certainly be a pitiful Statesman.” 781
In fact, freedom is a very precious asset and one for which a nation cannot pay too high a price. However, the question is precisely to know whether an overtaxed nation is able to be free, and if there is not a radical incompatibility between freedom and excessive taxation.
Well, I assert that there is a radical incompatibility.
Let us note that in reality the civil service does not act on things, but on people, and it acts on them with authority. Well, the action that certain men exercise on other men with the support of the law and public coercion can never be neutral. It is essentially harmful if it is not essentially useful.
The service of a public functionary is not one whose price is negotiated or one that people are in a position to accept or refuse. By its very nature, it is imposed. When a nation can do no better than to entrust a service to public coercion, as in the instance of security, national independence or the repression of misdemeanors and crimes, it has to create this authority and be subject to it.
But if a nation puts into the domain of public service what absolutely ought to have remained in that of private services, it is denies itself the ability to negotiate the sacrifice it wishes to make in exchange for these services and deprives itself of the right to refuse them; it reduces the sphere of its freedom.
The number of state functionaries cannot be increased without increasing the number of functions they occupy. That would be too flagrant. The point is that increasing the number of functions increases the number of infringements of freedom.
How can a monarch confiscate the freedom of religion? By having the clergy on hire.782
How can he confiscate freedom of education? By having a university on hire.783
What is being proposed now? To have trade and transport carried out by civil servants. If this plan is put into practice, we will pay more in taxes and be less free.
You can clearly see, then, that under the guise of philanthropy, the system being recommended today is illusory, unjust, destructive of security, harmful to the formation of capital and thereby, to increasing wages. In sum, it is undermining the liberty of the citizens.
I might blame it for many other things. It would be easy for me to prove that it is an insurmountable obstacle to any progress because it paralyses the very impetus to progress, the vigilance of private interest.
What are the areas of human activity that offer the sight of the most complete stagnation? Are these not precisely those entrusted to public services? Let us take education. It is still where it was in the Middle Ages. It has not emerged from the study of two dead languages, a study that was in the past so rational and is so irrational today. Not only are the same things being taught, but the same methods are being used to teach them. What industry other than this has remained where it was five centuries ago?
I could also accuse excessive taxes and the increase in number of public functions of developing the unfettered ardor for office that in itself and in its consequences is the greatest plague of modern times.784 But I lack space and entrust these considerations to the sagacity of the reader.
I cannot stop myself, nevertheless, from considering the question from the point of view of the particular situation in which the February Revolution has placed France.
I do not hesitate to say this: if the common sense of the people and the common sense of the workers do not exact proper and swift justice on the mad and illusionary hopes that have been cast into their midst in a reckless thirst for popularity, these disappointed hopes will be fatal to the Republic.
Certainly, they will be disappointed, because they are illusionary. I have proved this. Promises have been made that are physically impossible to honor.
What is the situation we are in? On its death, the constitutional monarchy has left us as an inheritance a debt whose interest alone is an annual burden of three hundred million on our finances,785 apart from an equal amount of floating debt.786
It has left us Algeria, which will cost us one hundred million a year for a great many years.787
Without attacking us, without even threatening us, the absolute kings of Europe just have to maintain their current level of military forces to oblige us to retain ours. Under this heading, five to six hundred million has to be included in our budget for the army and navy.788
Finally, there remain all the public services, all the costs of tax collection and all the work of national utility.789
Add it all up, set out the figures any way you like and you will see that the budget for expenditure is inevitably enormous.
It has to be assumed that the ordinary sources of revenue will be less productive from the first year of the revolution. Let us assume that the deficit that they produce is compensated for by the abolition of sinecures and the retrenchment of parasitic state functions.
The inexorable result is nonetheless that it is already very difficult to give satisfaction to the taxpayers.
And it is at this time that into the midst of the people is cast the vain hope that they too can draw life from this same treasure, which they are feeding with their very lives!
It is at this time, when production, trade, capital and labor need security and freedom to widen the sources of taxes and wages, it is at this very time that you are holding over their heads the threat of a host of arbitrary plans, ill thought out and ill designed institutions, projects for organization that have been hatched in the brains of political writers, who for the most part know nothing about this subject!
But what will happen on the day disappointment with this occurs? And this day will surely come.
What will happen when workers perceive that work provided by the State is not work added to that of the country but subtracted through tax at one point in order to be paid by charity at another, with all the loss that the creation of new administrative authorities implies?
What will happen when you are reduced to coming forward to say to taxpayers: “We cannot touch the salt tax, city tolls, the tax on wines and spirits or any of the most unpopular fiscal inventions; on the contrary, we are obliged to think up new ones.”?790
What will happen when the claim to increase ineluctably the mass of wages, taking no account of a corresponding increase in capital (which implies the most blatant contradiction), will have disrupted all the workshops on the pretext of organization and perhaps forced capital to seek the bracing atmosphere of freedom elsewhere?
I do not wish to dwell on the consequences. It is enough for me to have pointed out the danger as I see it.
“What!” it will be said, “Following the great February Revolution, was there nothing left to do? Was no satisfaction to be given to the people? Should we have left things exactly where they were before? Was there no suffering that needed to be relieved?”
This is not what we think.
In our view, increasing wages does not depend on either benevolent intentions or philanthropic decrees. It depends and depends solely on an increase in capital. In a country such as the United States, when capital is built up quickly, wages rise and the nation is happy.
Now, in order for capital to be created, two things are needed: security and freedom. In addition, it must not be pillaged by taxation as it grows.
This, we think, is where the rules of conduct and the duties of the government lie.
New schemes, agreements, organizations and associations ought to have been left to the common sense, experience and initiative of the citizens. Such things are not accomplished by taxes and decrees.
Providing universal security by peaceful and reassuring public servants who have been chosen in an enlightened manner, basing true freedom on the elimination of privileges and monopolies, allowing free entry of items of prime necessity and those most essential for work, creating the resources needed at no charge by means of a reduction of excessive duties and the abolition of prohibition, simplifying all administrative procedures, cutting out whole layers of bureaucracy, abolishing parasitic state functions, reducing excessive remuneration of pubic servants, negotiating immediately with foreign powers to reduce armed forces, abolishing city tolls and the salt tax, and fundamentally reorganizing the tax on wines and spirits, and creating a sumptuary tax: all these form the mission of a popular government in my view, and this is the mission of our republic.
Under a regime like this of order, security and liberty, we would see capital being created and giving life to all branches of production, trade expanding, farming progressing, work actively being encouraged, labor sought after and well paid, wages benefiting from the competition of increasingly abundant capital, and all the living forces of the nation, currently absorbed by useless or harmful administrative bodies, turned towards furthering the physical, intellectual and moral well-being of the entire nation.
Endnotes753 First published in Journal des Economistes, March 1848. Issues of the JDE usually appeared on the 15th of the month. This essay was published in the Journal des économistes soon after the revolution had broken out in February (22-24). The issue at the time which was concerning the Provisional Government was the creation of the National Workshops and the program to provide state funded work relief to the unemployed. See the glossary entry on “The National Workshops.”
754 One of the very first things the Provisional Government did after King Louis Philippe abdicated and the Second Republic was declared (22-24 February 1848) was to announce the creation of the National Workshops (26 February), limit the length of the working day to 10 hours in Paris and 11 hours in the provinces (2 March), and increase by 45% the level of direct taxes (15 March) (the "impôt des quarante-cinq centimes”). See the glossary on “A Brief Chronology of the 1848 Revolution.”
755 Bastiat uses the term “la grande organisateur” to disparage those who, like the socialists, wanted to “organize” society from top to bottom. One might also have translated it in the 20th century sense of “the central planner.” See the glossary entry on “Association and Organization.”
756 Bastiat seems to be having some regrets here about his use of satire and humour in many of the Economic Sophisms which he had written over the past three years, yet he was to change his mind when it to writing one of his final works "What is Seen and What is not Seen" (July 1850). Paillottet tells us that Bastiat rewrote it completely because he thought he had over-corrected and had made it too severe. See the Introduction to this volume for more details. See below, pp. ???
757 This of course is exactly what led Bastiat to declare in June that a state which tried to live by this principle had become a “great fiction,” namely that the state was “the great fiction by which everyone endeavours to live at the expense of everyone else” which he developed during the course of 1848. A draft of the essay appeared in his revolutionary magazine Jacques Bonhomme in June 1848 (see CW, vol. 2, pp. 105-06), a larger article on “The State” appeared in the Journal des débats in September 1848, and it was subsequently published as a separate booklet of the same name later that same year (see CW, vol. 2 , pp.93-104).
758 Laurent Cunin-Gridaine was the Minister of Commerce from 1840 to 1848 and was a strong supporter of protection for the textile industry. See the glossary entry on “Cunin-Gridaine.”
759 Among many similar decrees, the Provisional Government stated on 25 February that: "Le Gouvernement provisoire de la République française s'engage à garantir l'existence de l'ouvrier par le travail; Il s'engagea garantir du travail à tous les citoyens; Il reconnaît que les ouvriers doivent s'associer entre eux pour jouir du bénéfice légitime de leur travail. Le Gouvernement provisoire rend aux ouvriers, auquel il appartient, le million qui va échoir de la liste civile." (The Provisional Government of the French Republic undertakes to guarantee the existence of the workers by means of work; it undertakes to guarantee work to all citizens; it recognizes that workers must form associations in order to enjoy the legitimate benefits of their labour. The Provisional Government will hand over to the workers, what belongs to them, the million francs which is due to be paid to the civil list.) See Actes officiels du gouvernement provisoire dans leur ordre chronologique, arrêtès, décrets, proclamations, etc., etc: Revue des faits les plus remarquables précédés du récit des événements qui se sont accomplis les 22, 23 et 24 février 1848 (Paris: Barba, Garnot, 1848), p. 9. The Civil List was the grant given by the Chamber to the Crown to assist in their upkeep. In the budget for 1847 (the year before the revolution) fr. 13.3 million was set aside for this purpose. See "Budget de 1846 et 1847," in Annuaire de l'économie politique et de la statistique pour 1847 (1847), p. 38.
760 In February 1848, the day after the Revolution broke out, Bastiat declared that he was "firmly convinced that the republican form of government is the only one which is suitable for a free people, the only one which allows the full and complete development of all kinds of liberty." He and Molinari wanted to call their revolutionary magazine just "La République" but had to settle for "La République française" as the former had already been taken. His political beliefs could be summed up as follows: in additional to "liberty, equality, and fraternity" he also believed in "property, tranquility, prosperity, frugality, and stability" (to paraphrase him slightly). See the Appendix on "Bastiat's Republicanism."
761 The "Economists school" or "Les Économistes" (Economists) was the name given to the group of liberal, free-trade political economists who were active in the late 18th and the first half of the 19th century. See the glossary entry on “The Economists.”
762 One of the first taxes to be abolished after the Revolution of 22-24 February was the much hated salt tax on 21 April. See the glossary entry on “French Taxes.”
763 On the difference between the socialists’ and the Economists’ idea of association see the glossary entry “Association and Organization.”
764 Under the Railway Law of 11 June 1842 the government ruled that 5 main railways would be built radiating out of Paris which would be built in cooperation with private industry. The government would build and own the right of way, bridges, tunnels and railway stations, while private industry would lay the tracks, and build and maintain the rolling stock and the lines. The government would also set rates and regulate safety. The first railway concessions were issued by the government in 1844-45 triggering a wave of speculation and attempts to secure concessions. The first major line was the "chemin de fer du Nord" (June 1846) followed by the "chemin de fer d'Amiens à Boulogne" (May 1848). The Northern railway is the one Bastiat would be familiar with in this essay. See the glossary entry on "The French Railways."
765 La Presse was a widely circulated daily newspaper under the control of the politician and businessman Émile de Girardin (1806-81). See the glossary entries “La Presse” and “French Newspapers.”
766 "École sociétaire" (the school of members (of society), or the social school) was the name used by Charles Fourier and his school to describe themselves. See Fourier's, Le Nouveau Monde industriel et sociétaire (1829). See the glossary entry on “Fourier.”
767 See “Proposition for the Creation of a School for Sons of Sharecroppers” (1844) in Collected Works, vol. 1, pp. 334-40, on Bastiat’s failed attempt to start a school for his sharecroppers.
768 See the glossary entry on “Utopias.”
769 On Bastiat’s republicanism see the Appendix “Bastiat’s Republicanism.:
770 The “Hôtel-de-Ville” (the town or city hall) was the seat of the provisional government. This is a scene which Bastiat personally witnessed. According to Molinari, he, Bastiat, and Castille went “arm in arm” to the Hôtel-de-Ville on the day the revolution broke out (24 February) in order to get permission to start their journal La République français. This was impossible to do as people armed with rifles and swords had invaded the building and an enormous crowd had gathered in order to try to get jobs in the new regime. See Gustave de Molinari’s review of Bastiat’s “Lettres d’un habitant des Landes”, JDE, July 1878, p. 61.
771 The newly established administration for the National Workshops was located in the Luxemburg Palace. See the glossary entry on “The National Workshops.”
772 This is a reference to the Luddites who were members of a movement in the early 19th century in England who protested the introduction of mechanized weaving machines believing that that they would put handloom weavers out of work. They were active between 1811-13 before being suppressed by the government in a mass trial in 1813. They took their name from a weaver named Ned Ludd who smashed machines in 1779. See Bastiat’s previous reference to smashing machines in ES1 XX “Human Labor and Domestic Labor” below, pp. ??? See the glossary entry on “Luddites.”
773 This is a reference to the first public miracle which Christ was reported to have done when he turned water in wine at a wedding feast in the town of Cana. See John 2, verses 1-11.
774 Pierre-Émile Thomas (1822-1880) was a civil engineer was was appointed the Director of the National Workshops between March and May 1848. The socialist Louis Blanc (1811-1882) was the driving intellectual force behind the scheme. He was appointed minister without portfolio by the Provisional Government and head of the Luxemburg Commission to study labor problems, out of which emerged the National Workshops program. See the glossary entry on “The National Workshops”.
775 Shortly after this article was written Bastiat was elected to the new Constituent Assembly of the Second Republic to represent the département of Les Landes on 23 April. He was nominated by the Assembly to the Finance Committee to which he was reappointed 8 times. He spent much of his time telling the members of the Committee and the Assembly much the same things as he is saying here and with little success. See the Appendix on “Bastiat’s Activities in the National Assembly, 1848-1850.”
776 Total annual income for the government in 1848 was fr. 1.4 billion. See the Appendix on "French Government Finances in 1848-49."
777 Between 1820 and 1848, 258 deputies were elected by a small group of individuals who qualified to vote because they paid more than 300 francs in direct taxes (this figure varied over time from 90,000 to 240,000). One quarter of the electors, those who paid the largest amount of taxes, elected another 172 deputies. Therefore, those wealthier electors enjoyed the privilege of a double vote. Bastiat referred to this group as the "classe électorale" (the electoral class) in ES3 VI. “The People and the Bourgeoisie” for "classe électorale" (the electoral class), below pp. ??? Another term for this group which was popular at the time was "monopole électoral" (electoral monopoly). This was used by Molinari in a number of works as it nicely captured the idea that there was a political corollary to the phenomenon of economic monopolies. See L’Économiste belge, March 1866, p. 55. See the glossary entry on “The Chamber of Deputies.”
778 Bastiat uses the word “ruse” (deception). The words "duperie" (deceit) and "dupes" (those who are deceived) are key terms in Bastiat's theory of plunder ("spoliation"), according to which the plunderers ("les spoliateurs") deceive their victims by means of “la ruse” (deception, fraud) to justify and disguise what they are doing. By means of "Sophisms" (sophistical arguments and fallacies) the dupes are persuaded that the plundering of their property is necessary for the well-being of the nation and thus ultimately for their own good as well. See ES2 I. “The Physiology of Plunder” and the glossary entry on “Bastiat on Plunder.”
779 In 1845 the city of Paris imposed an octroi (entry tax) on all goods which entered the city which raised fr. 49 million. Of this fr. 26.1 million were levied on wine and other alcoholic drinks which comprised 53% of the total. The tax on wine was the heaviest as a proportion of total value and the most unequally applied. Cheap table wine was taxed at the rate of 80-100% by value whilst superior quality wine was taxed at the rate of 5-6% by value. See Horace Say, Paris, son octroi et ses emprunts (Paris: Guillaumin, 1847). See the glossary entry on “French Taxes [Octroi].”
780 François Guizot (1787-1874) was a conservative liberal historian and politician (a member of the “Doctrinaires” who supported a constitutional monarchy) who played an important role in the July Monarchy. He served as minister of the interior, then minister of education (1832-37), ambassador to England in 1840, foreign minister and prime minister, becoming in practice the leader of the government from 1840 to 1848. It was his government which collapsed in February 1848. See the glossary entry on “Guizot.”
781 We have not been able to find this quotation from Guizot. It may well have originated in a passage from D’Amilaville’s article on “Population” in Diderot’s Encyclopedia where he states that large populations are fostered by states which are limited and where rights are respected: “Il n'est pas nécessaire de pousser plus loin nos remarques, pour prouver que l'esprit des grandes monarchies est contraire à la grande population. C'est dans les gouvernemens doux & bornés, où les droits de l'humanité seront respectés, que les hommes seront nombreux. La liberté est un bien si précieux que, sans être accompagnée d’aucune autre, elles les attire et les muliplie” (The spirit of large monarchies is not conducive to having large populations. It is in gentle and limited governments, where the rights of humanity are respected, that men become numerous. Liberty is a good so precious that, without being accompanied by anything else, they (limited governments) attract men and increase their number.) (p. 95). Encyclpédie, ou dictionnaire raisonné des sciences, des arts et des metier, tome 13 Pom-Regg (Neufchastel: Samuel Faulche, 1765), D’Amilaville, “Population,” pp. 88-103.
782 Bastiat uses the expression “un clergé à gages” which suggests someone for hire or a mercenary. In the statement of principles which Bastiat and his colleagues published in their journal La République française on 26 February just after the Revolution broke out was a call for an end to "salaried religion" (Plus de cultes salariés!). See the Appendix on "Quelques mots d'abord sur le titre de notre journal" (A few words on the title of our Journal), below, pp. ???
783 In 1849 fr. 21.8 million was spent on public education of which fr. 17.9 went for the University and fr. 3.3 million on "Science and Letters." See the Appendix on "French Government Finances 1848-1849."
784 See Louis Reybaud's amusing critiques of French bureaucracy in Mémoires de Jérôme Paturet, which appeared in serial form between 1843 and 1848 where he describes the behaviour of individuals within the "ruche bureaucratique" (bureaurocratic hive) where appointments are solicited by the weak and powerless of the powerful and well-connected thus creating a network of obligation and control throughout the hierarchy which radiates outwards to infinity ("ces ricochets allaient à l'infini"). See the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
785 Total debt held by the French government in 1848 amounted to fr. 5.2 billion which required annual payments of fr. 384 million to service in 1848. Since total annual income for the government in 1848 was fr. 1.391 billion the outstanding debt was 3.7 times receipts. In 1848 the deficit was estimated at fr. 55 million. In 1849 (after the economic upheaval of the 1848 Revolution and a large increase in taxes - especially the 45 centime tax), government receipts rose slightly to fr. 1.412 billion while expenditure rose to fr. 1.573 billion, leaving a deficit of fr. fr. 161 million. See the See the Appendix on "French Government Finances 1848-1849"; and Gustave de Puynode, "Crédit public," DEP, vol. 1, pp. 508-25.
786Bastiat may have in mind here the difference between consolidated debt at relatively low, fixed rates of interest of 3-5% and floating debt of various kinds for special projects, short term debt, and covering the annual deficit. In 1848 the former required an annual payment of fr. 293 million; the latter required a payment of fr. 93 million (at presumably higher rates of interest) plus however the deficit of fr.55 million was going to be paid for. The total of the latter came to fr. 148 million which is only 50% of the consolidated debt payment. See the Appendix on "French Government Finances 1848-1849".
787 The JDE gives a figure of fr. 120 millions spent in Algeria in 1847. See “Chronique” in JDE, February 1848, T. 19, p. 315. See glossary entry on “Algeria.”
788 According to the budget passed on 15 May 1849 the size of the French army was 389,967 men and 95,687 horses. [This figure rises to 459,457 men and 97,738 horses for the entire French military (including foreign and colonial forces).] The expenditure on the Army in 1849 was fr. 346,319,558 and for the Navy and Colonies was fr. 119,206,857 for a combined total of fr. 465,526,415. Total government expenditure in 1849 was fr. 1.573 billion with expenditure on the armed forces making up 29.6% of the total budget. See the Appendix on "French Government Finances 1848-1849". See the glossary entry on “The French Army and Conscription.”
789 In 1848 the administrative costs to the government in collecting taxes such as direct taxes, stamp duty, customs, indirect taxes, and the post office amounted to fr. 157 million out of of total receipts of fr. 1.391 billion, or 11%. A summary of other expenditure can also be found in the Appendix. See the Appendix on "French Government Finances 1848-1849".
790 The much hated salt tax (gabelle) was cut on 21 April to 10 centimes per kilogramme. During the Revolution of 1848 it was reduced. According to the Budget Papers of 1848 the French state raised fr. 38.2 million from tariffs on imported salt and fr. 13.4 million from the salt tax on internal sales. Thus cutting the salt tax cost the Treasury a relatively modest fr. 71.6 million. On the other hand, on 15 March the Provisional Government increased direct taxes by 45% (the so-called "impôt des quarante-cinq centimes"). In 1848 direct taxes such as the land tax, personal and property taxes, the door and window tax, and trading licences raised fr. 421 million, or 30% of total receipts, for the Treasury. See the Appendix on "French Government Finances 1848-1849".
T.205 (1848.03.19) "Circulars from a Government that is Nowhere to be Found" (LE, March 1848)↩
SourceT.205 (1848.03.19) "Circulars/Memos from a Government that is Nowhere to be Found" (Circulaires d'un ministère introuvable), Le Libre-Échange, 19 March 1848, no. 16 (2nd year), p. 88. [OC2, pp. 462-65.] [CW3 - ES3.23]
Editor's Note[to come]
TextXXIII. Circulars from a Government that is Nowhere to be Found [19 March 1848] (final draft)↩
Publishing history- Original title, place and date of publication: “Circulaires d'un ministère introuvable” (Circulars from a Government that is Nowhere to be Found) [19 March 1848, Le Libre-Échange]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 2: Le Libre-Échange (1855), pp. 462-65.
- Previous translation: [none]
The Minister of the Interior to the Commissioners of the government, the Prefects, Mayors, etc.747
The elections are approaching.748 You want me to indicate to you the line of conduct you ought to be following; here it is: As citizens, I have no instructions to give you other than to draw your inspiration from your conscience and love for the public good. As civil servants, respect and ensure respect for the freedoms of the citizens.
We will be asking for the opinion of the country. This is not to drag from it, either by intimidation or fraud, an untruthful reply. If the National Assembly has views that conform to ours, we will govern with immense authority thanks to this union. If the Assembly does not share our views, all that is left to us will be to withdraw and endeavor to bring it round to us through honest discussion. Experience has warned us of what it costs to wish to govern with artificial majorities.
The Minister of Trade to the merchants of the Republic
CITIZENS,
My predecessors have made or appear to have made great efforts to procure business for you. They did so in a multitude of ways with no other result than this: an increase in the nation’s fiscal burden and the creation of obstacles in our path. In turn they compelled exports with subsidies and restricted imports with barriers. They often acted in collusion with their colleagues in the Department of the Navy and the Department of War to seize some small island lost in the Ocean and when, after many borrowings and battles, they succeeded, you as Frenchmen were given the exclusive privilege of trading with the small island on condition that you did not trade with the rest of the world.749
All these tentative efforts led to the acknowledgement of the following rule, in which your own interest, the national interest and the interest of the human race are combined: buy and sell wherever you can do so to the greatest advantage.
Well, since this is what you do naturally without any interference from me, I am reduced to admitting that my functions are worse than pointless; I am not even the backseat driver.
For this reason, I am giving you notice that my ministry is being abolished.750 At the same time, the Republic is abolishing all the restrictions with which my predecessors have hobbled you and all the taxes that we have to make the people pay to put these restrictions into operation. I beg you to forgive me for the harm I have done you, and to prove to me that you harbor no bitterness, I hope that one of you would be so good as to accept me as a clerk in your office so that I may learn about commerce, for which my short sojourn in the ministry has given me a taste.
The Minister of Agriculture to farmers
CITIZENS,
A happy chance put a thought into my head that had never occurred to my predecessors: it is that you, like me, belong to the human race. You have a mind you can use and, what is more, that true source of all progress, a desire to improve your situation.
On this basis, I ask myself how I may serve you. Will I teach you agriculture? It is more than likely that you know more about it than I do. Will I stimulate in you a desire to replace good practices for bad? This desire is in you at least as much as it is in me. Your own self-interest generates it and I do not see how my circulars can sound louder in your ears than your own interest.
You know the price of things. You therefore have a rule that tells you what it is better to produce and what not to produce. My predecessor wanted to find manufacturing work for you to fill your days of inactivity. You could, he said, commit yourself to this work, with benefit both to you and to consumers. You are then faced with two alternatives: either this is true, in which case do you need a ministry to inform you of lucrative work within your range? You will discover this yourselves if you do not belong to an inferior race suffering from idiocy, a hypothesis on which my ministry is based and which I do not accept. Or this is not true, and in this case how damaging would it be for the minister to impose sterile work on all of France’s farmers through an administrative measure?
Up to now, my colleagues and I have been very active with no result, other than to have you pay taxes, for you should note this clearly; each of our actions has a corresponding tax. Even this circular is not free of charge. It will be the last. Henceforward, to make farming prosper you should rely on your own efforts, and not on those of my bureaucrats; turn your gaze to your fields and not to a Ministry building in the Rue de Grenelle.
The Minister for Religion to ministers of religion.
CITIZENS,
The object of this letter is for me to take leave of you. Freedom of religion has been proclaimed.751 Henceforward, you, like all citizens, will have to deal only with the minister of justice. By this I mean that if, and far be it from me to think this will happen, you use your freedom to harm the freedom of others, upset public order or outrage common decency, you will inevitably encounter that legal repression from which no one should be exempt. Other than this you may act as you see fit, and if you do this I fail to see what use I can be to you. I and all of the huge administrative body that I manage are becoming a burden to the public. This is not to say the half of it, for how can we occupy our time without infringing freedom of conscience? Obviously any civil servant who does not do a useful job does a damaging one by the very fact of taking action. By withdrawing, we are therefore fulfilling two conditions of the Republican manifesto: economy and freedom.752
The Secretary to the government that is nowhere to be found,
F.B.
Endnotes747 Bastiat is making fun of the practice of the newly installed Provisional Government to issue sweeping declarations which may or may not have had any support from the people or the cooperation of the state bureaucracy. The titles of his "Circulars" mimic closely those of the official pronouncements of the Provisional Government, e.g. "Circulaire du ministre de l'intérieure aux commissaires du Gourvernement provisoire" (p. 72). See Actes officiels du gouvernement provisoire dans leur ordre chronologique, arrêtès, décrets, proclamations, etc., etc: Revue des faits les plus remarquables précédés du récit des événements qui se sont accomplis les 22, 23 et 24 février 1848 (Paris: Barba, Garnot, 1848).
748 Elections to the Constituent Assembly were announced for 23 April with universal manhood suffrage. Bastiat was to win a seat representing the Département of the Les Landes. See the glossary entry on the “Chamber of Deputies.” See the Appendix on “Bastiat’s Activities in the National Assembly 1848-1850.”
749 See Bastiat’s discussion of this in ES3 XVII. “Antediluvian Sugar” above, pp ???
750 See ES2 XI. “The Utopian”, above pp. ??? for a fuller discussion of what Bastiat would like do if he were made Prime Minister of the country.
751 Bastiat is referring to a decree issued on 10 March 1848 in which the Provisional Government stated that: "Les citoyens détenus par suite de condamnations prononcées contre eux pour faits relatifs au libre exercice du culte, seront immédiatement rendus à la liberté, s’ils ne sont retenus pour une autre cause. Toute poursuite commencée est abolie. Remise est faite des amendes prononcées, et non encore acquittées. Le ministre de la Justice et le ministre des finances sont chargés de l’exécution du présent décret." (Citizens who have been detained as a result of judgements pronounced against them for matters relating to the free exercise of religion will be immediately freed, unless they are being held for another matter. All proceedings which are underway will be terminated. Fines already imposed will be refunded. The Minister of Justice and the Minister of Finance are charged with carrying out this decree.) See Actes officiels du gouvernement provisoire dans leur ordre chronologique, arrêtès, décrets, proclamations, etc., etc: Revue des faits les plus remarquables précédés du récit des événements qui se sont accomplis les 22, 23 et 24 février 1848 (Paris: Barba, Garnot, 1848), pp. 69-70. See also Jacqueline Lalouette, "La politique religieuse de la Seconde République," Revue d'histoire du XIXe siècle. [Société d'histoire de la révolution de 1848 et des révolutions du XIXe siècle], vol. 28, 2004, pp. 79-94.
752 See the Appendix on "Bastiat's Republicanism."
T.206 (1848.03.22) "Statement of Electoral Principles. To the Electors of Les Landes, 22 March, 1848"↩
SourceT.206 (1848.03.22) "Statement of Electoral Principles. To the Electors of Les Landes, 22 March, 1848" (Profession de foi électorale de 1848. Aux électeurs des Landes, Mugron, 22 March 1848). [OC1, p. 506.] [CW1.2.2.1, p. 387.]
Editor's Note[to come]
TextYou are going to entrust the destiny of France and perhaps that of the world to the representatives of your choice, and I have no need to tell you how much I would be honored if you judged me to be worthy of your confidence.
You cannot expect me to set out here my views on the many and serious tasks which will have to be dealt with by the National Assembly. I hope you will find in my past record some form of guarantee for the future. I am also ready to provide answers, through the newspapers or in public meetings, to any questions I may be asked.
Here is the spirit in which I will support the Republic with wholehearted devotion:
War waged against all forms of abuse: a people bound by the ties of privilege, bureaucracy, and taxes is like a tree eaten away by parasite plants.
Protection for all rights: those of conscience like those of intelligence; those of ownership like those of work; those of the family like those of the commune; those of the fatherland like those of humanity. I have no ideal other than universal justice; no motto other than that on our national flag, liberty, equality, fraternity.
I remain your devoted fellow countryman.
T.207 (1848.03.28) "Letter to an Ecclesiastic"↩
SourceT.207 (1848.03.28) "Letter to an Ecclesiastic" (Lettre à un ecclésiastique). Written 28 March, 1848; published later in Molinari's L'Economiste Belge, 14 Jan. 1860. [OC7.78, pp. 351-54.] [CW1.2.4.20, pp. 463-65.]
Editor's Note[to come]
TextWhen I arrived from Bayonne, I found your letter dated the 22nd in which you tell me that your vote in my favor will be subject to an issue you are now raising with me. At the same time I am put to the same test in the Maransin.46
I would be a very odd representative if I entered the National Assembly after rejecting, indeed because I had in fact rejected, freedom of trade and religion. The only remaining thing I would need to do to win a few other votes is to disavow freedom of teaching. In any case, my dear sir, I thank you for believing in the sincerity of my answer. You want to know my opinion on the emoluments given to the clergy; I must not disguise my thoughts even to gain votes I might legitimately be proud of.
It is true that I have written that each person should contribute freely to support the religion he professes. I have expressed this opinion and I will support it as a political writer and as a legislator, although not in any spirit of obstinacy, until good reasons make me change my mind. As I have said in my statement of principles/election manifesto,47 my ideal is universal justice. The relations between the church and the state do not appear to me to be currently based on justice: on the one hand Catholics are forced to pay the pastoral stipends to the Protestant and Jewish religions (before long you will perhaps be paying Abbé Chatel, and that will upset a few sensibilities); on the other hand, the state takes advantage of whatever part of your budget it controls to intervene in the affairs of the clergy and to exercise an influence [464] to which I am opposed. It plays a part in appointing bishops, canons, and parish priests, though of course the Republic can take this sort of direction, even if fetters like this put some of us out of sorts. It seems to me, for instance, contrary to freedom and likely to increase the number of points of conflict between the temporal and spiritual powers.
I believe, furthermore, in a future merger of all the Christian religions or, putting it another way, in the absorption of the dissenting sects by Catholicism. For this to happen, however, the churches must not be political institutions. It is undeniable that the roles attributed to Victoria in the Anglican Church and to Nicholas in the Russian Orthodox Church are a serious obstacle to the reuniting of the entire flock under a single shepherd.
As for the objection arising from the situation in which thirty thousand priests would be placed by a measure such as the elimination of their payments48 by the state, you are arguing, I believe, on the assumption that this step would be taken violently and not in a spirit of charity. As I see it, it implies the total independence of the clergy and, moreover, in decreeing this, we would have to take account of the treaty concluded in ’89, one which you will remember.
I would need a whole volume to develop my thesis, but, after having expressed my views so frankly and in a way intended to preserve all my independence as a legislator and political writer, I hope that you will not cast doubt upon the sincerity of what remains for me to tell you.
I believe that the reform which I am discussing with you must and will be a subject for discussion rather than a matter for legislation, for many years and perhaps for many generations to come. The forthcoming National Assembly will have the straightforward mission of conciliating minds and reassuring consciences, and I do not think it will want to raise and even less to resolve the question you are putting to me in any way that will offend public opinion.
Take note, in fact, that even if my opinion is correct, it is held only by a very small number of men. If it triumphed now in the sphere of legislation, this would be so only at the price of alarming and arousing the opposition of the vast majority of the nation. It is, therefore, for those who share my [465] views a belief to be defended and propagated and not a measure amenable to immediate realization.
I differ from many others in that I do not think I am infallible. I am so struck by the native infirmity of individual reason that I neither seek nor will ever seek to impose my ideas. I set them out and develop them. As to their realization, I wait for public reason to pronounce its verdict. If they are right, their time will certainly come; if they are wrong, they will die before I do. I have always thought that no reform can be considered mature, with deep roots, and therefore useful, unless a lengthy debate has brought mass public opinion round to it.
It is on this principle that I have acted with regard to free trade. I have not addressed myself to those in power but to the general public and I have striven to bring it round to my opinion. I would consider free trade a lamentable gift if it were decreed before a reasoning public had called for it. I swear to you on my honor that if I had left the barricades as a member of the provisional government, with an unlimited dictatorship, I would not have taken advantage of it, as did Louis Blanc, to impose my personal views on my fellow citizens. The reason for this is simple: in my view, a reform introduced in this way, by surprise, has no solid foundation and will fall at the first test. This is also true for the question you put to me. If it depended on me, I would not accomplish the separation of the church and state violently, not because this separation does not seem to me to be a good thing in itself, but because public opinion, which is the queen of the world according to Pascal, still rejects it. This is the opinion that needs to be won over. On this question and on a few others, it will cost me nothing to remain, perhaps for the rest of my life, in an obscure minority. The day will come, I believe, when the clergy itself will feel the need to regain its independence through a new agreement with the state.
In the meantime, I hope that my opinion, which may be considered purely speculative and which in any case is far from being hostile to religion, will not lose me the honor of your vote. If, however, you feel obliged to withdraw it from me, I will in no sense regret that I have replied sincerely to you.
T.302 "Speaks in a Discussion in the Assembly on the Formation of Committees" (13 May 1848)↩
SourceT.302 [1848.05.13] "Speaks in a Discussion on the Formation of Committees in the Assembly". Short speech in the National Constituent Assembly, 13 May 1848, CRANC, vol. 1, p. 161, 172. Not in OC. CW4
Editor's IntroductionDean Russell in his book Frédéric Bastiat: Ideas and Influence (1965) lists five major speeches Bastiat gave in the Assembly. 1001 We have identified two more as well as eight shorter contributions he made to discussions on various bills being debated in the Chamber. For some unknown reason the Oeuvres complètes published by Paillottet in 1854-55 and 1862-62 only included two of these speeches which were given in the National Assembly, namely "The Banning of Trade Unions" (17 Nov. 1849) and "Speech on the Tax on Alcohol" (12 December, 1849), both of which are in our edition of Bastiat's Collected Works, vol. 2. 1002
We have found six speeches and contributions to four other discussions in the Constituent Assembly (4 May 1848 to 27 May 1849) and two speeches and three contributions to other discussions in the Legislative Assembly (28 May 1849 to 22 December 1851) for a combined total of eight speeches and seven other contributions which we include in this volume. Some are quite short, where he makes some brief comment or observation about matters which are under discussion, but the others are more substantial formal speeches, and one in particular, on " Amending the Electoral Law" (10 and 13 March, 1849), is very substantial (some 20 pages). His speeches and comments were originally published in the Proceedings of the National Constituent Assembly (CRANC) 1003 and the Proceedings of the National Legislative Assembly (CRANL) 1004 and are included in this volume for the first time. The complete list of speeches is the following:
- "Speaks in a Discussion on the Formation of Committees in the Assembly". Short speech in the National Constituent Assembly, 13 May 1848
- "Speaks in a Discussion on the Proposal of Randoing to increase export subsidies on woollen cloth". Short speech in the National Constituent Assembly, 9 June 1848
- "Speaks in a Discussion on the Decree concerning the Policing of the Political Clubs". Short speech in the National Constituent Assembly, 26 July 1848
- "Report from the Finance Committee concerning a loan to assist needy citizens in the Department of la Seine". Presents a Report from the Finance Committee to the National Constituent Assembly, 9 August 1848
- "Additional Comments on the Report from the Finance Committee concerning a loan to assist needy citizens in the Department of la Seine". Presents further details on a Report from the Finance Committee to the National Constituent Assembly, 10 August 1848
- "Speech on Postal Reform". Speech to the National Constituent Assembly, 24 August 1848
- "Speaks in a Discussion on the Election of the President of the Republic". Short speech to the National Constituent Assembly, 27 Oct. 1848
- "Speaks in a Discussion on a Proposal to change the tariff on imported salt". Short speech to the National Constituent Assembly, 11 Jan. 1849
- "Speaks in a Discussion on Amending the Electoral Law". Short speech to the National Constituent Assembly, 26 Feb. 1849
- "Speaks in a Discussion on Amending the Electoral Law (Third Reading)". Short speech to the National Constituent Assembly, 10 March 1849
- "Speaks in a Discussion on changing the law on the appropriation of private property for public use". Short speech to the National Legislative Assembly, 6 Oct. 1849
- "The Repression of Industrial Unions" (Coalitions industrielles). Speech given in the Legislative Assembly on 17 Nov. 1849 (CW2.17, pp. 348-61).
- "Speech on the Tax on Wines and Spirits" (Discours sur l'impôt des boissons). Speech given in the Legislative Assembly on 12 Dec. 1849 (CW2.16, pp. 328-47).
- "Speaks in a Discussion on Public Education". Short speech to the National Legislative Assembly, 6 Feb. 1850
- "Speaks in a Discussion on a Plan to give money to Workers Associations". Short speech to the National Legislative Assembly, 9 Feb. 1850
Bastiat spoke mainly on economic matters, as one might expect, on topics such as export subsidies for the textile industry, government grants to needy workers, postal reform, the tariff on salt, the right of workers to form trade unions, and the tax on alcohol. However, he also spoke twice on political matters which reveal some interesting "Public Choice" like thoughts on the economics of political behaviour. The first speech he gave in the Assembly was on the incentives Deputies had to join Committees (13 May, 1848) and how their vested interests might distort the advice they gave the Chamber regarding what legislation to adopt. The second one on political matters was a very substantial one he gave in March 1849 upon the Third Reading of a Bill to Reform the Electoral Law. Here we have his most extended thoughts on the economics of politics, most particularly on the formation and conduct of parties (or "coalitions" as he called them), the different incentives which face cabinet ministers who are appointed from within the Chamber (like the English parliamentary system) or by appointment from outside (like the American "spoils system"), how the jockying for power will destabilise France's political system, and how it will eventually lead to the disillusionment of the voters with party politics.
Bastiat was elected to the Constituent Assembly in the election of 23 April 1848 to represent the département of Les Landes. 1005 He was the second delegate elected out of 7 with a vote of 56,445. He served on the Comité des finances (Finance Committee) and was elected 8 times as vice-president of the committee (such was the regard of his colleagues for his economic knowledge) and he made periodic reports to the Chamber on Finance Committee matters. He was also asked to join the Committee on Labour but did stay long as he wanted to focus on financial matters. Bastiat was also elected to the Legislative Assembly in the election of 13 May 1849 to represent the département of Les Landes. 1006 He received 25,726 votes out of 49,762. Because of his deteriorating health Bastiat was less able to speak in the Chamber and his attendance fell off. However, he was able to write articles on matters before the Chamber which he distributed.
Where Bastiat's remarks are interrupted by comments by other politician we have removed the lengthier ones for reasons of space. We have kept the short interjections to give a flavour of what he had to face when he was speaking on the floor of the Chamber. Occasionally he apologises for his weak voice which made it hard for others to hear. One needs to remember he was suffering from a severe throat condition which would eventually force him to take a leave of absence and lead to his death on 24 December 1850. These remarks were recorded by an official stenographer, the accuracy of whom we cannot assess. Many of the remarks are in colloquial French and use the official terminology used in the Chamber (such as "L'honorable préopinant" (the Honourable Speaker)).
TextCitizen Frédéric Bastiat : Citizen Representatives, I will put to you another doubt I have concerning the usefulness of the committees in the form you have proposed, especially the conditions governing the way in which they are nominated. If each of us is authorized to sign up for a committee in which we have the greatest interest the result of this will be that all those, for example, who are supporters of Algeria will sign up for the Algerian Committee; members of the Army will sign up for the War Committee, and so on. The general tendency will then be for these supporters to call for all the resources of the State, or at least as much as possible, to go to their areas of special interest. Instead of introducing an element of order into our discussion, the committees will, on the contrary, be able to present proposals there which will reflect particular interests, but which would meet with opposition in the Assembly. Instead of simplifying our work, it would be made more complicated. Because of these reasons I do not see there is sufficient reason to adopt the proposal to substitue the Committees for the work of the Government bureaux. 1007 …
Citizen Frédéric Bastiat : I only have one thing to say.
I am far from bringing myself to oppose the creation of a permanent committee to deal in a permanent way with the situation of the working classes and everything which concerns the economic aspect of this huge question. But I think that the creation of this committee is not at all incompatible with the existence of the commission which has already been formed. (There are interruptions from the floor).
It is clear that two great needs were born with the Revolution itself: a committee for legislation and a special commission for the workers. 1008
Well then, I think that it would not be politic, considering what you want to do, and what you have already begun to do in naming a committee for legislation, not to finish your work. You wanted to show the importance which you attach to this question. I think that the best means to make these views a reality is to give the commission which you have nominated the character of a commission of inquiry, all the while creating a permanent committee for the question of the workers. (Put it to a vote!) 1009 …
1001 Two speeches on free trade (9 June 1848 against a proposal by Randoing to increase subsidies to the textile industry, and 11 January 1849 on the importation of salt), a speech on 10 March, 1849 on a constitutional amendment to reorganize the structure of the Chamber preventing public servants also being elected to the Chamber (the so-called "parliamentary incompatibility"), a speech on the freedom to form unions (17 November, 1849), and a speech on the taxation of alcohol (12 December 1849), in Dean Russell, Frédéric Bastiat: Ideas and Influence (Irvington-on-Hudson, New York: Foundation for Economic Education, 1965,1969), p. 106.
1002 "The Banning of Trade Unions" (17 Nov. 1849), CW2 17, pp. 348-61; and "Speech on the Tax on Alcohol" (12 December, 1849), CW2 16, pp. 328-47.
1003 Compte rendu des séances de l'Assemblée Nationale Constituante (4 May 1848 - 27 May 1849) . 10 vols. Compte rendu des séances de l'Assemblée Nationale. Exposés des motifs et projets de lois présentés par le gouvernement; rapports de Mm. les Représentants (Paris: Imprimerie de l'Assemblée national, 1848-1850). Henceforth CRANC.
1004 Compte rendu des séances de l'Assemblée Nationale Législative (28 May 1849 - 2 December 1852) . 17 vols. (28 Mai 1849 - 1 Déc. 1851). Compte rendu des séances de l'Assemblée Nationale Législative. Exposés des motifs et projets de lois présentés par le gouvernement; rapports de Mm. les Représentants (Paris: Imprimerie de l'Assemblée national, 1849-1852). Henceforth CRANL.
1005 For information about Bastiat's activities in the National Assembly see, Dean Russell, Frédéric Bastiat: Ideas and Influence (Irvington-on-Hudson: Foundation for Economic Education, 1969), Chap. 9 "Bastiat as Legislator," 106-24; Bibliography, p. 155; Dictionnaire des parlementaires français comprenant tous les Membres des Assemblées françaises et tous les Ministres français, depuis le 1er mai 1789 jusqu'au 1er mai 1889. Vol. I. A-Cay, publié sous la direction de MM. Adolphe Robert et Gaston Cougny (Paris: Bourloton, 1889-1891). "Bastiat", pp. 192-93.
1006 On Bastiat's activities in the Legislative Assembly see Table analytique par ordre alphabétique de matières et de noms de personnes du Compte rendu des séances de l'Assemblée nationale législative (28 mai 1849 - 2 décembre 1851) et des documents imprimés par son ordre. Rédigée aux Archives du Corps législatifs (Paris: Henri et Charles Noblet, Imprimeurs de l'Assemblée nationale, 1852). Bastiat, p. 56.
1007 CRANC, vol. 1, p. 161.
1008 The Commission for the Workers was headed by the socialist Louis Blanc and it used the Luxembourg Palace as its headquarters from which it ran the National Workshops. It was opposed strongly by Bastiat from within the Finance Committee as its expenditure on finding work for unemployed workers paid for at taxpayer expence was getting out of control. The Chamber agree to close it at the end of May 1848 which led to public protests and the rioting of the June Days.
1009 CRANC, vol. 1, p. 172.
T.208 (1848.05.15) "Property and Law" (JDE, May 1848)↩
SourceT.208 (1848.05.15) "Property and Law" (Propriété et loi), Journal des Economistes, 15 May 1848, T. 20, no. 80, pp. 171-91; also published as a pamphlet, Propriété et Loi. Justice et Fraternité (Property and Law. Justice and Fraternity) (Paris: Guillaumin, 1848). [OC4, pp. 275-97.] [CW2.4, pp. 43-59.]
Editor's Note[to come]
TextThe confidence of my fellow citizens has given me the title of legislator.
I would certainly have declined this title if I had understood it as Rousseau did.
“He who dares undertake to provide institutions to a people,” he said, “must feel that he is capable, so to speak, of changing human nature, of transforming each individual who, of himself, is a perfect and solitary whole, into a part of a much greater whole from which this individual is to receive to a certain degree his life and being; of changing the physical constitution of man in order to strengthen it, etc., etc. If it is true that a great prince is a rare man, what is to be said of a great legislator? The first has only to follow the model that the second has put forward. The second is the inventor of the machine, while the first is only the workman who assembles it and makes it work.”1
Since Rousseau was convinced that the social state was a human invention, he had to place law and the legislator on a high pedestal. Between the legislator and the rest of the human race, he saw the distance or rather the abyss that separates the inventor from the inert matter of which the machine is made.
According to him, the law ought to transform people and create or not create property. According to me, society, people, and property existed before the laws, and, to limit myself to a particular question, I would say: It is not because there are laws that there is property, but it is because there is property that there are laws.
The opposition of these two systems is radical. The consequences that [44] result from them are constantly divergent; let me therefore set out the question clearly.
I warn you first of all that I am taking the word property in a general sense and not in the restricted sense of landed property. I regret, and probably all economists regret with me, that this word involuntarily awakens in us the idea of possession of land. What I mean by property is the right the worker has over the value he has created through his work.
That having been said, I ask myself whether this right is a creation of the law or if it is not, on the contrary, prior to and higher than the law, whether it was necessary for the law to give birth to the right of property or whether, on the contrary, property was a fact and right that existed before the law and that had given rise to it? In the first case the mission of the legislator is to organize, amend, and even eliminate property if he thinks this right; in the second his powers are limited to guaranteeing it and ensuring that it is respected.
From the preamble to a draft constitution issued by one of the greatest thinkers of modern times, M. Lamennais, I quote:
The French people declare that they acknowledge rights and duties that predate and are greater than all the positive laws and that are independent of them.
These rights and duties, directly handed down by God, are summarized in the triple dogma expressed by these sacred words: equality, liberty, fraternity.
I put the question whether the rights of property are not among those that, very far from deriving from positive law, predate the law and are its raison d’être.
This is not, as might be thought, a slight or pointless question. It is a vast and fundamental one. The answer to it is of the highest concern to society, something you will be convinced of, I hope, once I have compared the origins and effects of the two opposing theoretical systems.
Economists consider that property, like the person, is a providential fact. The law does not give existence to one any more than to the other. Property is a necessary consequence of the constitution of man.
In the full sense of the word, man is born a property owner, since he is born with needs whose satisfaction is essential to life, with organs and faculties whose exercise is essential to the satisfaction of these needs. These faculties are merely an extension of the person, and property is just an extension [45] of these faculties. To separate man from his faculties is to make him die; to separate man from the product of his faculties is once again to make him die.
There are political writers who are greatly preoccupied with finding out how God ought to have made man. For our part, we study man as God has made him. We ascertain that he cannot live without satisfying his needs, that he cannot provide for his needs without work, and that he cannot work if he is not certain of applying the fruits of his work to his needs.
This is why we consider that property is a divine institution and that its safety and protection are the object of human law.
It is so true that property predates the law that it is acknowledged even by primitive people who have no laws or at least no written laws. When a savage has devoted his work to building himself a hut, no one disputes his possession or ownership of it. Doubtless another savage who is stronger than he can drive him out but not without angering and alarming the entire tribe. It is actually this abuse of strength that gives rise to association, agreement, and the law, which places public force in the service of property. Therefore the law arises out of property, a far cry from property arising from law.
It can be said that the principle of property is even recognized by animals. The swallow tends her young family with care in the nest she has built with her own efforts.
Even plants live and thrive by assimilation, by appropriation. They appropriate substances, the elements of air and salts that are within their reach. You have only to interrupt this phenomenon for them to dry up and die.
In the same way, men live and develop through appropriation. Appropriation is a natural and providential phenomenon that is essential to life, and property is only appropriation that has become a right through work. When work has rendered assimilable and appropriable substances that were not so, I really do not see how it can be claimed that, in law, the phenomenon of appropriation has to be attained for the benefit of an individual other than he who has carried out the work.
It is in view of these primordial facts, necessary consequences of the very constitution of man, that the law intervenes. Since the aspiration toward life and development may induce a strong man to despoil a weak one, thus violating the rights of production, it has been agreed that the strength of all would be devoted to the prevention and repression of violence. The purpose of the law is therefore to ensure respect for property. It is not property that is conventional but law.
Let us now seek the origin of the opposing theoretical system.
[46]All of our past constitutions proclaimed that property is sacred, which appears to assign to our coming together as a society the purpose of the free development either of individuals or of particular associations by means of work. This implies that property is a right that predates the law, law’s only objective being to guarantee property.
I wonder, however, whether this declaration has not been introduced into our charters instinctively, so to speak, by virtue of catchwords, of language spoken long ago, and above all I wonder whether it is at the root of all social convictions.
Now, if it is true, as people say, that literature is the expression of society, doubts may be raised in this connection, since it is certain that never have political writers, after having respectfully saluted the principle of property, so oft en called for the intervention of the law, not in order to have property respected but to amend, alter, transform, fine-tune, weigh down, and organize property, credit, and labor.
Now, this supposes that an absolute power over people and property is attributed to the law and consequently to the legislator.
This may distress us but it should not surprise us.
From where do we draw our ideas on these subjects, especially our notion of law? In Latin books and in Roman law.
I have not studied my Roman law, but it is enough for me to know that this is the source of our ideas to be able to assert that these ideas are erroneous. The Romans had to regard property as purely conventional, a product and an artificial creation of the written law. Obviously, the Romans could not, as political economy does, go back to the constitution of man and perceive the relationship and necessary links between these phenomena: needs, faculties, work, and property. This would have been a suicidal error. How could they, who lived by pillage, all their property being the fruit of plunder and their means of existence based on the labor of slaves, have brought into their legislation, without shaking the foundations of their society, the notion that the true title of property was produced by work? No, they could neither say this nor think it. They had to have recourse to the following empirical definition of property: jus utendi et abutendi,2 a definition that relates only to effects and not to causes or origins, since they were clearly obliged to keep the origins dark.
It is sad to think that the science of law in our country and in the nineteenth [47] century is still at the level of ideas that the presence of slavery must have inspired in the classical world, but there is an explanation for this. The teaching of law is a monopoly in France, and monopoly rules out progress.
It is true that jurists do not mold the entire range of public opinion, but it has to be said that university and church education is a marvelous preparation for the young people of France to receive the erroneous notions of jurists on these subjects since, as though the better to make sure of this, for the ten finest years of our life, it plunges us all into this atmosphere of war and slavery that enveloped and permeated Roman society.
Let us not therefore be surprised to see reproducing itself in the eighteenth century this Roman idea that property is a mere convention and a legal institution, that far from law being a corollary of property, it is property that is a corollary of law. We know that according to Rousseau not only property but also society as a whole was the result of a contract, an invention originating in the mind of the legislator.
“Social order is a sacred right which forms the basis of all the others. However, this right does not come from nature. It is therefore based on conventions.”3
Thus, the right that is the basis of all the others is purely conventional. Therefore property, which is a subsequent right, is also conventional. It does not come from nature.
Robespierre was imbued with the ideas of Rousseau. From what the pupil had to say on property, we can recognize the theories and even the form of oratory of the master.
Citizens, I will first of all put before you a few articles which are necessary to complete your theory of property. Let no one be alarmed by the use of this word. You souls of mud, who esteem only gold, I do not wish to touch your treasures, however tainted their source. . . . For my part, I would prefer to be born in Fabricius’s hut than in Lucullus’s palace, etc., etc.4
I will draw to your attention here that when you analyze the notion of property, it is irrational and dangerous to make this word a synonym [48] of opulence and in particular of ill-gotten opulence. Fabricius’s cottage is just as much an item of property as Lucullus’s palace. However, may I draw the reader’s attention to the following sentence, which sums up this entire outlook?
In defining liberty, this primary need of man, the most sacred of the rights he holds from nature, we have correctly stated that its limit lies in the rights of others. Why have you not applied this principle to property, which is a social institution, as though the eternal laws of nature were less inviolable than the conventions of mankind?
Following these introductory remarks, Robespierre establishes the principles in these terms:
Article 1: Property is the right of each citizen to enjoy and dispose of the portion of goods which is guaranteed to him by the law.
Article 2: The right to property is limited, like all others, by the obligation to respect the rights of others.5
In this way, Robespierre contrasts liberty and property. These are two rights with different origins: one comes from nature; the other is a social institution. The first is natural, the second conventional.
The common limit that Robespierre places on these two rights ought, it would seem, to have led him to think that they have the same source. Whether it is a question of liberty or property, respecting others’ rights is not to destroy or alter that right; it is to acknowledge and confirm it. It is precisely because property is a right that predates the law just as liberty does that both exist only on condition that they respect the rights of others, and the mission of the law is to ensure that this limit is respected, which means that it recognizes and maintains the very principle of it.
[49]Be that as it may, it is certain that Robespierre, following Rousseau’s example, considered property to be a social institution, like a convention. In no way did he link it to its true justification, which lies in work. It is the right of disposal of the portion of goods guaranteed by the law, he said.
I have no need to remind you here that through Rousseau and Robespierre the Roman notion of property has been transmitted to all our so-called socialist schools. We know that the first volume by Louis Blanc on the Revolution6 is an extravagant eulogy to the Geneva philosopher and to the leader of the Convention.
Thus, this idea that the right of property is a social institution, that it is an invention of the legislator, a creation of the law, in other words, that it is unknown to man in a state of nature, this idea, say I, has been transmitted from the Romans to us through the teaching of law, classical studies, the political writers of the eighteenth century, the revolutionaries of’93, and the theorists of organization of today.7
Let us now move on to the consequences of the two theoretical systems that I have just contrasted beginning with the jurist view.
The first step is to open a limitless field to the imagination of utopian thinkers.
This is obvious. Once we establish the principle that property takes its existence from the law, there are as many possible means of organizing production as there are possible laws in the minds of dreamers. Once we establish the principle that the legislator is responsible for arranging, combining, and molding both people and property at will, there is no limit to the imaginable means by which people and property can be arranged, combined, and molded. Right now, there are certainly more than five hundred projects on the organization of production circulating in Paris, not counting an equal number of projects on the organization of credit. Doubtless these plans contradict [50] one another, but they have in common the fact that they are based on this consideration: the law has created the right of property; the legislator is the absolute master in disposing of workers and the fruits of their work.
Among these projects, those that have attracted the greatest public attention are those by Fourier, Saint-Simon, Owen, Cabet, and Louis Blanc. However, it would be madness to think that these five methods of organization are the only ones possible. Their number is boundless. Every morning a new one may be hatched, more attractive than yesterday’s, and I leave you to imagine what would happen to the human race if, when one of these inventions was imposed on it, another more-specious one was suddenly revealed. The human race would be reduced to the choice of either changing its way of carrying on every morning or continuing forever down a path known to be erroneous, just because it had once set out on this path.
A second consequence is to arouse the thirst for power in all dreamers. Let us suppose that I have thought out a system for organizing work. Setting out my system and expecting people to adopt it if it is a good one would be to suppose that the prerogative of action lies with them. However, in the system that I am examining the principle of action lies with the legislator. “The legislator,” as Rousseau says, “must feel that he has the strength to transform human nature.”8 This being so, my ambition should be to become a legislator in order to impose the social order of my devising.
It is also clear that systems based on the idea that the right to property is a social institution all lead either to the most highly concentrated privilege or the most fundamental communism, depending on the good or bad intentions of the inventor. If he has sinister designs, he will make use of the law to enrich a few at the expense of all. If he obeys philanthropic impulses, he will want to equalize the level of well-being, and to do this he will think of stipulating that each person should legally share equally of the products created. It remains to be seen whether, under these conditions, it is possible to engage in production.
With regard to this, the Luxembourg Palace9 recently offered us an extraordinary sight. A few days after the February revolution, in the middle of the nineteenth century, did we not hear a man who was more than a minister, a member of the provisional government, a civil servant invested with [51] unlimited revolutionary authority speak in the name of liberty and coldly ask whether, in distributing salaries, it was a good thing to take account of the strength, talent, activity, and skill of the worker, that is to say the wealth he produced, or whether it was not better to disregard these personal virtues and their beneficial effect and in future give everyone the same pay. The question amounts to this: will a meter of cloth sold by a lazy man be sold for the same price as two meters offered by someone who is industrious? And, something that beggars belief, this man has proclaimed that he preferred profits to be uniform, whatever the work offered for sale, and in his wisdom he has decided that although two equals two by nature, they would in future be by law only one.
That is what happens when we act on the basis that the law is stronger than nature.
His audience apparently grasped the fact that the very constitution of man rose up against such an arbitrary decision and that people would never allow one meter of cloth to claim the same remuneration as two meters. If this were to be so, the competition that he wished to abolish would be replaced by another form of competition a thousand times more deadly: everyone would compete to work the least and demonstrate the least activity since, by law, the reward would be always guaranteed and equal for all.
However, Citizen Blanc had foreseen the objection and, to prevent this sweet do-nothing, alas so natural to man when work is not rewarded, he had thought of setting up a post in each commune on which would be inscribed the names of those who were lazy. However, he did not say whether there would be inquisitors to uncover the sin of laziness, courts in which to judge it, and gendarmes to execute the sentence. It should be noted that utopians never concern themselves with the huge machine of government indispensable for putting their legal machinery in motion.
Since the delegates in the Luxembourg Palace were rather incredulous, Citizen Vidal, Citizen Blanc’s secretary, appeared to complete his master’s thought. Using Rousseau’s example, Citizen Vidal suggested nothing less than changing the nature of man and the laws of Providence.10
It has pleased Providence to place within each individual certain needs and their consequences and faculties and their consequences, thus creating [52] personal interest, in other words, an instinct for preservation and a love of development that is the mainspring of the human race. M. Vidal will be changing all that. He has looked at the work of God and seen that it was not good. Consequently, starting from the principle that the law and the legislator can do anything, he will be abolishing personal interest by decree and replacing it by point of honor.
Men will no longer work to live, to provide for and raise their families, but to obey a point of honor, to avoid the hangman’s noose, as though this new motive were not still a personal interest of another kind.
M. Vidal constantly refers to what the question of honor encourages armies to do. But alas! Everything must be stated clearly, and if the wish is to regiment workers we should be told whether the military code, with its thirty transgressions carrying the death penalty, would become the labor code!
An even more striking effect of the disastrous principle which I am endeavoring to combat here is the uncertainty it always holds suspended, like the sword of Damocles, over production, capital, trade, and industry. This is so serious that I dare to claim the reader’s entire attention.
In a country like the United States, where the right of property is placed above the law, and where the sole mission of the forces of public order is to have this natural right respected, every individual may with total confidence devote his capital and strength to production. He has no need to fear that his plans and arrangements will be upset by the legislative power from one minute to the next.
But when on the contrary, on the principle that it is not work but the law that is the basis of property, all the creators of utopias are allowed to impose their arrangements generally and through the authority of decrees, who can fail to see that all the farsightedness and prudence that nature has implanted in men’s hearts are being turned against industrial progress?
Where is the bold speculator now who would dare to set up a factory or take on a business? Yesterday, it was decreed that people would be allowed to work for only a given number of hours.11 Now it is being decreed that the payment for this type of work will be fixed, and who can predict what will be decreed tomorrow, the day after tomorrow, and the days after that? Once the legislator has set himself at such an incommensurable distance from other [53] men and in all conscience thinks that he can dispose of their time, work, transactions, everything that is property, what man in all the land will have the slightest knowledge of what constraints he and his profession will be placed under tomorrow by the law? And in such circumstances, who will be able or want to undertake anything?
I certainly do not deny that, among the innumerable systems to which this erroneous principle will give rise, many and perhaps the majority will be based on benevolent and generous intentions. But what is to be feared is the principle itself. The manifest aim of each individual arrangement is to equalize well-being. But the even more manifest effect of the principle on which these arrangements are based is to equalize deprivation; I cannot put this too plainly, it will reduce affluent families to the ranks of the poor and decimate poor families through illness and starvation.
I admit that I am afraid for the future of my country when I consider the gravity of the financial difficulties that this dangerous precedent will make even worse.
On 24 February, we found a budget that exceeds the proportions that France can reasonably achieve and what is more, according to the current minister of finance, with nearly a billion francs in debts that are for immediate repayment.
Because of this situation, already alarming enough, expenditure has steadily increased and revenue steadily decreased.
That is not all. Two types of promises have been tossed with a boundless prodigality to the general public. According to one lot, they are going to be given a countless mass of institutions that are beneficial but expensive. According to the second lot, all taxes will be reduced. In this way, on the one hand the numbers of day nurseries, asylums, primary schools, free secondary schools, workshops, and industrial pensions will be increased. The owners of slaves will be indemnified and the slaves themselves paid damages. The state will found credit institutions, lend workers their instruments of work, double the size of the army, reorganize the navy, etc., etc., and on the other hand it will abolish the salt tax, city tolls, and all the most unpopular contributions.
Certainly, whatever idea one has of the resources of France, it has at least to be admitted that such resources must increase if they are to meet twin aspirations that are so vast in scale and so contradictory in appearance.
But, in the midst of this extraordinary movement, which might be considered beyond human strength even when the entire energy of the country is being directed toward productive work, a cry can be heard: the right to [54] property is a creation of the law. Consequently, the legislator can issue, at any time and in accordance with the theoretical systems with which he is imbued, decrees that overturn all the arrangements made by industry. Workers are not the owners of any object or thing of value because they have created these through their work but because the laws in effect today guarantee this. Tomorrow’s law may withdraw this guarantee, at which time property will no longer be legitimate.
I ask you, what is bound to happen? Capital and production are terrified; they can no longer count on the future. Under the influence of a doctrine like this, capital will hide, flee, and be reduced to nothing. And what will then happen to the workers, these very workers for whom you profess such a lively, sincere, but so unenlightened affection? Will they be better fed when farming production has ceased? Will they be better clothed when no one dares start up a factory? Will they be more fully occupied when capital has vanished?
And taxes, where will you obtain these? And the financial position, how will this be restored? How are you going to pay the army? How will you pay your debts? What money will there be to lend for investment in machinery? With what resources will you support the charitable institutions whose existence it is so easy to decree?
I hasten to abandon these somber considerations. It remains for me to examine the consequences of the opposite principle that prevails today, namely, the “economists’ principle,”12 the principle that attributes the right of property to labor [travail] and not to the law; the principle that says that property existed before the law; the sole mission of the law is to ensure respect for property wherever it is and wherever it is formed, in whatever manner in which the worker has created it, either in isolation or in association, provided that he respects the rights of others.
First, just as the jurists’ principle virtually implies slavery, that of the economists espouses liberty. Property, the right to enjoy the fruit of your labor, the right to work, develop yourself, and exercise your faculties as you please without the intervention of the state except in its protective role, that is liberty. And I still cannot understand why the many partisans of opposing persuasions allow the word liberty to remain on the republican flag. It is said [55] that some of them have removed it and substituted the word solidarity. Such people are more frank and consistent. However, they should have put communism, not solidarity, since the solidarity of interests, like property, exists outside the law.
It also implies unity. We have already seen this. If the legislator creates the right to property, there are as many ways for property to exist as there may be errors in the minds of utopians, that is to say, an infinite number. If, on the other hand, the right to property is a providential fact that predates any human legislation and the aim of human legislation is to ensure its respect, there is no place for any other arrangements.
It is also security, and this is perfectly clear: if a people fully acknowledge that each person has to provide for his means of existence but also that each person has a right to the fruit of his work that predates and is higher than the law, also that human law has been necessary and has intervened only to guarantee to all the freedom to work and the property of the fruit of that work, it is clearly evident that a totally secure future opens out before human activity. It no longer has to fear that legislative power will through successive decrees stop its efforts, disrupt its arrangements, and bring to nothing its forecasts. Within the shelter of this security capital will spring up rapidly. The rapid increase in capital, for its part, is the sole reason for growth in the value of labor. The working classes will therefore become better off and will themselves contribute to providing new sources of capital. They will be increasingly capable of freeing themselves from wage-labor,13 becoming partners in the businesses, founding their own businesses, and recovering their dignity.
Last, the eternal principle that the state should not be a producer but should provide security for producers would inexorably lead to economy and order in public finances. The implication is that only this principle makes it possible to establish a good foundation and just distribution for taxes.
In fact, we should never forget that the state has no resources of its own. It has nothing and it owns nothing that it does not take from workers. Therefore, when it interferes in everything, it substitutes the grim and expensive activity of its agents for private activity. If, as happens in the United States, people came to realize with regard to this matter that the mission of the state is to provide a perfectly safe context for all, the state would be able to [56] accomplish this mission with a few hundred million. This saving, combined with economic prosperity, would at last make it possible to establish a single direct tax which would bear only on actual property, of whatever kind.
But for this contingency we would have to wait until a few experiences, sometimes cruel ones, had somewhat diminished our faith in the state and increased our faith in humanity.
I will end with a few words on the Free Trade Association. It has oft en been reproached for this title. Its opponents have rejoiced, and its supporters have regretted, what both have considered to be a fault.
“Why cause alarm in this way?” say its partisans. “Why emblazon a principle on your flag? Why do you not limit yourselves to demanding those wise and prudent alterations to the customs tariff that time has made necessary and experience has shown to be opportune?”
Why? First, because, in my view at least, free trade has never been a matter of customs and tariffs but a question of right, justice, public order, and property. Second, because privilege, in whatever form it is manifested, implies a negation or scorn for property. Third, because state intervention to level out fortunes, increasing some shares at the expense of others, is communism, just as one drop of water is water just as the entire ocean is water.
Fourth, because I foresaw that once the principle of property has been undermined in one form, it would soon be attacked in a thousand different forms. Fifth, because I did not quit my solitude to pursue a partial amendment of the tariffs, which would have implied my adherence to the false notion that law predates property, but to fly to the aid of the opposite principle, compromised by protectionism. Finally, because I was convinced that the landowners and capitalists had themselves, with the tariff, sown the seed of the communism that terrifies them now, since they were demanding additional profits from the law at the expense of the working classes. I could see clearly that the working classes would not be slow to demand, in the name of equality, the benefits of the law applied to leveling out well-being, which is communism.
Let people read the first statement of principles issued by our Association, the program drawn up in a preparatory session on 10 May 1846; this will convince them of our central approach.
Trade is a natural right, like property. Every citizen who has created or acquired a product should have the option either of using it immediately or of selling it to someone anywhere in the world who is willing to give him what he wants in exchange. Depriving him of this faculty, when [57] he is not using it for a purpose contrary to public order or morals and solely to satisfy the convenience of another citizen, is to justify plunder and violate the laws of justice.
It also violates the conditions of order, since what order can exist within a society in which each economic activity, with the assistance of the law and the powers of government, seeks success by oppressing all the others?
We placed this question so far above that of tariffs that we added the following:
The undersigned do not dispute society’s right to establish, on goods that cross the border, taxes intended to meet common expenditure, provided that they are determined by the needs of the treasury.
However, as soon as the tax loses its fiscal nature and is aimed at discouraging foreign products—to the detriment of the tax authorities themselves—in order to raise the price of a similar home product artificially and thus hold the community to ransom for the benefit of a particular class of people, it then becomes protection or rather plunder, and these are the ideas and practices that the Association is seeking to discredit and remove totally from our laws.
Of course, if we had pursued only the immediate modification of the tariffs, if we, as was claimed, had been the agents only of a few commercial interests, we would have taken care not to emblazon on our flag a word that implies a principle. Does anyone believe that I did not foresee the obstacles that this declaration of war against injustice would raise for us? Did I not know full well that by scheming, concealing our aim, and hiding half of our thought we would arrive more quickly at this or that partial victory? But how would these triumphs, which are fleeting anyway, have identified and safeguarded the great principle of property which we ourselves would have kept in the shadows and ruled out?
I repeat, we were asking for the abolition of the protectionist regime, not as a good government measure but as justice, as the achievement of freedom, as the rigorous consequence of a right that is higher than the law. We should not conceal behind its outward form that which we most desire.14
The time is coming when it will be recognized that we were right in not agreeing to insert a catch, a trap, a surprise, or an ambiguity in the title of our [58] Association but rather a frank expression of an eternal principle of order and justice, since only principles have power. They alone are the flame of intelligent minds or the rallying point for misguided convictions.
Recently, a universal shiver of terror has run through the entire territory of France. At the single word communism, every soul has become alarmed. Seeing the strangest systems appear in broad daylight and almost officially, and subversive decrees issued in succession, which may be followed by even more subversive ones, everyone has asked himself where we are all going. Capital has become terrified, credit has fled, work has been suspended, and the saw and hammer have been stopped in mid task as though a disastrous and universal electric current had suddenly paralyzed both mind and arm. Why? Because the principle of property, whose essence has already been compromised by the protectionist regime, has suffered further violent shocks as a consequence of the first. Because the intervention of the law with regard to industry and as a way of adjusting values and redistributing wealth, an intervention of which the protectionist regime was the first manifestation, is threatening to reveal itself in a thousand known or unknown forms. Yes, I say it loud and clear; it is the landowners, those who are considered to be property owners par excellence, who have undermined the principle of property, because they have called upon the law to give their lands and products an artificial value. It is the capitalists who have suggested the idea of leveling out wealth by law. Protectionism was the forerunner of communism; I will go even further, it was its first manifestation. For what are the suffering classes asking for now? Nothing other than what the capitalists and landowners have asked for and obtained. They are asking for the intervention of the law to balance, adjust, equalize wealth. What the capitalists and landowners have done by means of customs, the poor want to do by way of other institutions, but the principle is always the same: to take from some people on the basis of legislation to give the proceeds to others, and certainly, since it is you, property owners and capitalists, who have had this disastrous principle accepted, you should not complain if those more unfortunate than you claim the benefit. They have at least a right to it that you did not.15
But at last our eyes are being opened, and we see toward what abyss this initial blow against the essential conditions of public safety is driving [59] us. Is this not a terrible lesson, clear proof of the chain of cause and effect through which at long last the justice of providential retribution is appearing, when we now see the rich terrified out of their wits by the invasion of a false doctrine whose iniquitous foundations they themselves laid and whose consequences they thought they could peacefully turn to their own profit? Yes, protectionists, you have been the promoters of communism. Yes, landowners, you have destroyed in people’s minds the true concept of property. It is political economy that disseminates this concept; and you have proscribed political economy because, in the name of the right to property, it opposed your unjust privileges.16 And when they have seized power, what has also been the first thought of these modern schools of thought that so terrify you? It is to eliminate political economy, since economic science is a constant protestation against the legal leveling out that you have sought and others are seeking today, following your example. You have asked the law for things that are far and away beyond what may be demanded of the law. You have asked it not for security (which would have been your right) but for added value on what belongs to you, which could not be given to you without damaging the rights of others. Now the folly of your claims has become universal folly. And if you wish to stave off the storm that threatens to engulf you, you have just one means left. Acknowledge your mistake; renounce your privileges; restrict the law to its own powers and limit the legislator to his role. You have abandoned us and you have attacked us, probably because you did not understand us. At the sight of the abyss you have opened up with your own hands, make haste to come over to our side and adopt our propaganda in favor of the right to property by, I repeat, giving this word its widest meaning, including in it both the faculties of man and all that they are able to produce, whether in production or trade!
The doctrine that we are defending arouses a certain mistrust because of its extreme simplicity; it limits itself to asking the law for security for all. People find it hard to believe that the mechanics of government can be reduced to these proportions. What is more, since this doctrine encloses the law within the limits of universal justice, some reproach it for excluding fraternity. Political economy does not accept this accusation. That will be the subject of another article.
Rousseau, Du contrat social, bk. 2, chap. 7.
“The right of using and abusing.”
Rousseau, Du contrat social, bk. 1, chap. 1.
Gaius Fabricius Luscinus was a Roman ambassador and consul (282 bc) renowned for his probity, incorruptibility, and parsimonious life. He was much admired by Cicero as a model of good behavior. Lucius Licinius Lucullus (117 bc–57 bc) was a successful Roman general who amassed a huge fortune during his twenty years of military service. He used his wealth to build sumptuous palaces, libraries, and gardens in Rome.
Bastiat is quoting from a speech Robespierre gave in the National Convention on 24 April 1793. In this speech Robespierre argues that the Convention in its deliberations on a new Declaration of the Rights of Man and the Citizen (which it passed in June) was too favorable to the natural right of property and did not give adequate attention to the “social” and “moral” aspects of property. He gave his own formulation in four articles, two of which Bastiat quotes above. The third and fourth articles, which Bastiat did not quote, are quoted here: Article 3: “He (the citizen) can harm neither the security, liberty, existence, nor property of others.” Article 4: “All possession, all exchange (traffic) which violates this principle is illicit and immoral.” Robespierre then offers his own proposal for a Declaration of Rights, which is turned down by the Convention as too radical. (Œuvres de Maximilien Robespierre, vol. 3, pp. 352–53.)
Bastiat is referring to Blanc’s Histoire de la Révolution française. The first and second volumes appeared before the revolution of 1848 broke out.
Bastiat distinguishes between the “revolutionaries of 1789” and the “revolutionaries of 1793.” By the former he means the liberals and constitutional monarchists, such as the Girondin group, who wanted to replace the monarchy and the ancien régime with a new regime limited by a constitution and the rule of law. By the latter he means the radical Jacobins around Robespierre, who used the Terror to eliminate their enemies and to introduce socialist legislation between 1793 and 1795. (See also the entry for “Girondins” in the Glossary of Subjects and Terms and the entry for “Robespierre, Maximilien de,” in the Glossary of Persons.)
Rousseau, Du contrat social et autres œuvres politiques, p. 260.
The Luxembourg Palace was the seat of the Government Commission for the Workers, created on 20 February 1848. Louis Blanc was the president and François Vidal, the secretary.
(Paillottet’s note) See vol. 1 for the report on the work by M. Vidal on the Distribution of Wealth and vol. 2 for the reply to five letters published by M. Vidal in the journal La Presse. (OC, vol. 1, p. 440, “De la répartition des richesses”; and vol. 2, p. 147, “L’Organisation et liberté.”)
The decree of 2 March (1848) appeared in the first few weeks of the new regime that came to power following the February revolution of 1848. The decree limited working time to ten hours a day in Paris and eleven hours in the provinces.
Bastiat uses the expression “le principe économiste,” which is the name that the free-market political economists gave themselves in France, for example, Le Journal des économistes. See also the term “Les Économistes” in the Glossary of Subjects and Terms.
That is, workers paid by the hour.
(Paillottet’s note) See in vol. 1 the letter dated January 1845 and addressed to M. de Lamartine on the Right to Work. (OC, vol. 1, p. 406, “Du droit au travail.”)
(Paillottet’s note) See vol. 2 for a group of articles on the question of subsistence and, following this, Protectionism and Communism. (OC, vol. 2, pp. 63ff., “Subsistances”; and vol. 4, p. 504, “Protectionisme et communisme.”)
(Paillottet’s note) See vol. 5, Plunder and Law—The War Against Chairs of Political Economy. (OC, vol. 5, p. 16, “Guerre aux chaires d’économie politique.”)
T.209 (1848.06) Individualism and Fraternity↩
SourceT.209 (1848.06) Individualism and Fraternity (Individualisme et fraternité). No date but possibly June 1848. [OC7.79, pp. 355-57.] [CW2.6, pp. 82-92.]
Editor's Note[to come]
TextA systematic view of history and the destiny of mankind, which seems to me to be as erroneous as it is dangerous, has recently been produced.1
Authority relates to the aristocratic eras, individualism to the reign of the bourgeoisie, and fraternity to the triumph of the people.
The first of these principles is above all incarnated in the pope. It leads to oppression by stifling personality.
The second, inaugurated by Luther, leads to oppression through anarchy.
The third, announced by the thinkers in La Montagne, has given birth to true freedom by shrouding men in the ties of harmonious association.
As the people have been the masters in only one country, France, and for a short period, in’93, we still know the theoretical value and practical attractions of fraternity only through the attempt so noisily made at it at that time. Unfortunately, union and love, personified in Robespierre, were only half able to stifle individualism, which reappeared the day after 9 Thermidor.2 It still prevails.
What is individualism, then? The author of the work to which we are referring defines it as follows:
“The principle of individualism is that which, taking man out of society, makes him the sole judge of what surrounds him and of himself, gives him [83] an exalted view of his rights without indicating his duties, abandons him to his own resources, and, with regard to all matters of government, proclaims the system of laissez-faire.”3
That is not all. Individualism, the driving force of the bourgeoisie, was bound to invade the three major branches of human activity: religion, politics, and industry. From this sprang three major individualist schools: the school of philosophy, with Voltaire as its leading light, which by demanding freedom of thought led us to a profound moral anarchy; the school of politics, founded by Montesquieu, which, instead of political freedom, brought us an oligarchy based on a property franchise; and the school of economists, represented by Turgot, which, instead of economic freedom, bequeathed us competition between rich and poor to the advantage of the rich.4
We see that up to now humanity has been very poorly inspired and that it has gone wrong at every turn. This has not, however, been through lack of warnings, since the principle of fraternity has always issued its protests and reservations through the voices of Jean Huss,5 Morelli, Mably, and Rousseau and through the efforts of Robespierre.
But what is fraternity? “The principle of fraternity is that which, considering the members of the extended family as being interdependent, tends to organize the various forms of society, the work of man, in line with the model of the human body, the work of God, and bases the power of government on persuasion and the voluntary acquiescence of the heart.6
This is M. Blanc’s system. What makes it dangerous in my view, apart from the brilliance with which it is set out, is that in it the true and the false are intermingled in proportions that are difficult to determine. I have [84] no intention of studying it in all its symmetrical ramifications. In order to respect the requirements of this booklet, I will consider it principally from the point of view of political economy.
I must admit that when it is a question of setting out the principles which, in a given era, were the driving force of the social body, I would like them expressed in terms less vague than individualism and fraternity.
Individualism7 is a new word that has been simply substituted for egoism. It is an exaggeration of the concept of personality.
Man is essentially a sympathetic creature. The more his powers of sympathy are concentrated on himself, the more of an egoist he is. The more they embrace his fellow men, the more of a philanthropist he is.
Egoism8 is thus like all other vices, like all other prevarications; that is to say, it is as old as man himself. This can also be said of philanthropy. In all eras, under all regimes, and in all classes, there have been men who were hard, cold, self-centered, and who related everything to themselves, and others who were good, generous, humane, and selfless. I do not think that we can make one of these states of mind the basis of society any more than we can anger or gentleness, energy or weakness.
It is therefore impossible to accept that from a fixed date in history, for example, from the time of Luther, all the efforts of the human race have been systematically, and so to speak providentially, devoted to the triumph of individualism.
On what basis can it be held that an exaggerated sense of self was born in modern times? When ancient people pillaged and ravaged the world, reducing those they conquered to slavery, were they not acting under the influence of an egoism of the highest degree? If, in order to ensure victory, overcome resistance, and escape the frightful fate they reserved for those they called savages, alliances of warriors felt the need to join forces, if individuals were even disposed to make genuine sacrifices to this end, was egoism thereby any less egoism for being collective?
I would say the same thing with regard to domination by theological authority. Whether force or guile is used to achieve the servitude of men, whether their weakness or credulity is exploited, does not the very fact of unjust domination reveal a feeling of egoism in those who dominate? Did not Egyptian priests who imposed false beliefs on their fellow men in order [85] to make themselves masters of their actions and even of their thought seek personal advantage through the most immoral means?
As nations became stronger they rejected plunder achieved by force. They progressed toward moral propriety and the production and economic freedom attending it, and yet some people profess to find in freedom of production the primal manifestation of selfishness!
But you who do not want production to be free must want it constrained, for there is no halfway house. Yes, there is, you say, association. This is to misunderstand words, for as long as association is voluntary, production remains free. It is not an abandonment of freedom to enter into agreements or voluntary associations with your fellow men.
As men became more enlightened, they reacted against superstition, false beliefs, and opinions that were imposed. And there you go again discovering in free inquiry a second sign of selfishness.
But you who do not accept either authority or free examination, what would you put in its place? Fraternity, you say. Will not fraternity put into my mind either totally preconceived ideas or ones it has itself elaborated?
So you do not want men to examine opinions critically! I can understand this intolerance in theologians. They are logically consistent. They say: Seek the truth in everything, traditus est mundus disputationibus eorum,9 when God has not revealed it. Where He has said: This is the truth, it would be absurd for you to want to examine it critically.
However, by what right do modern socialists refuse us the free inquiry they use so widely? They have just one means of curbing our minds and that is to claim to be inspired. A few of them have tried, but up to now they have not shown us their qualifications to be prophets.
Without calling into question their intentions, I say that at the basis of these doctrines there is the most irrational of all despotisms and consequently of all individualisms. What is more tyrannical than to want to regiment our work and minds, leaving aside, indeed not even invoking, any supernatural authority? It is not surprising that we end up seeing in Robespierre the archetype, the hero, and the apostle of fraternity.
If selfishness is not the exclusive motivation of a period in modern history, no more is it the principle that guides one class to the exclusion of all the others.
In moral sciences a certain symmetry in presentation is oft en taken for the truth. Let us be wary of superficial appearance.
[86]This is how the notion that modern nations are made up of three classes—the aristocracy, the bourgeoisie, and the common people—has gained credibility. Therefore, it is concluded that there is the same antagonism between the two lower classes as between the two upper ones. The bourgeoisie, it is said, has overthrown the aristocracy and taken its place. With regard to the common people, it constitutes another form of aristocracy and will, in turn, be overthrown by it.
For my part, I see only two classes in society: conquerors who fall on a country, taking possession of the land, the wealth, and legislative and judiciary power; and a common people that has been overcome, that suffers, works, grows, breaks its chains, reconquers its rights, and governs itself more or less well, or very badly, for a long time, is taken in by a great many charlatans, is oft en betrayed by its own members, learns through experience, and gradually achieves equality through freedom and fraternity through equality.10
Each of these two classes obeys an indestructible sense of itself. But if this disposition deserves the name “selfishness,” it is certainly in the case of the conquering and dominating class.
It is true that within the common people there are men who are more or less rich in infinite variation. But the difference in wealth is not enough to make up two classes. As long as a man of the common people does not turn against the common people themselves to exploit them, as long as he owes his wealth only to work and an ordered and economic life, despite the few riches he acquires and the limited influence that these riches give him, he will remain a member of the common people and it is a misuse of terminology to claim that he has entered another class, an aristocratic class.
If this were so, see what the consequences would be. An honest artisan who works hard and plans for the future, who imposes severe privations on himself, who increases the number of his customers because of the confidence he inspires, who gives his son a rather fuller education than the one he received himself, would be on the way to joining the bourgeoisie. This is a man to be distrusted, a nascent aristocrat, an egoist.
If, on the contrary, he is lazy, dissipated, improvident, if he totally lacks the dynamism necessary for making a few savings, we can then be certain that he will remain one of the common people. He will adhere to the principle of fraternity.
And now, how will all these men retained in the ranks of the lowest of [87] society through improvidence, through vice, and only too oft en, I admit, because of misfortune understand the principle of equality and fraternity? Who will be their defender, their idol, their apostle? Do I need to name him? . . .
Abandoning the theater of polemics, I will endeavor, as far as my strength and time allow, to consider egoistical individualism and fraternity from the point of view of political economy.
I will begin by declaring very frankly that the concept of the individual, of self-love, the instinct of self-preservation, the indestructible desire within man to develop himself, to increase the sphere of his action, increase his influence, his aspiration to happiness, in a word, individuality, appears to me to be the point of departure, the motive and universal dynamic to which Providence has entrusted the progress of humanity. It is absolutely in vain that this principle arouses hostility in modern socialists. Alas! Let them look into themselves; let them go deep into their consciences and they will rediscover this drive, just as we find gravity in all the molecules of matter. They may reproach Providence for having made man as he is and, as a pastime, seek to find out what would happen to society if the divinity, accepting them as counselors, changed his creatures to suit another design. These are dreams for distracting the imagination, but it is not on these that social sciences are founded.
There is no feeling that is so constantly active in man or so dynamic as the sense of self.
We can differ in the way we conceive happiness or seek it in wealth, power, and glory or the terror we inspire, in the responsiveness of our fellow men, in the satisfaction of vanity or the crown of election, but continue to seek it we do and we cannot stop ourselves from doing so.
From this it must be concluded that egoistic individualism, which is the sense of self taken in its unfavorable meaning, is as old as the concept itself, since there is not one of his qualities, above all the one most inherent in its nature, that man cannot abuse and has not abused through the ages. To claim that the sense of self has always been held within just limits, except since the time of Luther and among the bourgeoisie, can be considered only a form of wit.
I think that the contrary thesis, in any case a more consoling one, could with more reason be held, and here are my arguments.
It is a sad truth, but one born of experience, that men in general give full rein to the sense of self and consequently abuse it up to the point at which they can do so with impunity. I say in general, since I am far from claiming [88] that the inspiration of conscience, natural benevolence, or religious prescriptions have not oft en been enough to prevent personality from degenerating into egoism. However, it can be stated that the general obstacle to the exaggerated development or abuse of the sense of self is not in us but outside us. It is in the other personalities who surround us and react when we upset them to the point of keeping us in check, if you will excuse the expression.
This having been said, the more a gathering of men finds itself surrounded by weak or credulous beings and the less it finds obstacles in them, the more the concept of personality has to grow stronger in them and break the bounds that reconcile it with the general good.
Thus we see the peoples in classical times desolated by war, slavery, superstition, and despotism, all manifestations of egoism in men stronger or more enlightened than their fellows. It is never through action on itself in obedience to the moral laws that the concept of personality is confined within its just limits. To restrict it to these, it has been necessary for force and enlightenment to become the common heritage of the masses; and it is just as necessary that individualism, when manifested through force, is brought to a halt by a superior force, and when manifested through deceit, perishes through lack of support from public credulity.
Perhaps it will be thought that the representation of personalities as in a state of virtually perpetual antagonism containable only by a balance of force and enlightenment constitutes a very gloomy doctrine. It would follow that, as soon as this balance is disturbed, as soon as a people or a class realizes that they are endowed with irresistible force or an intellectual superiority that might make other peoples or classes subservient to them, the sense of self is always ready to exceed its limits and degenerate into egoism and oppression.
It is not a question of knowing whether this doctrine is gloomy, but whether it is true and whether the constitution of man is not such that he has to win his independence and security by the development of his strength and intelligence. Life is a conflict. This has been true up to now, and we have no reason to believe that that will ever cease to be the case as long as man carries within his heart this sense of self that is so ready to exceed its limits.
The socialist schools endeavor to fill the world with hopes that we cannot prevent ourselves from considering to be illusory, precisely because they take no account, in their trivial theories, of this indelible disposition and the unchangeable nature that drives it, if it is not contained, toward its own exaggeration.
We search in vain in their mathematical systems of series and harmonies [89] for the obstacle to the abuse of personality, for we will never find it. The socialists appear to us to be revolving ceaselessly in this vicious circle: if all men wish to be selfless, we have found social forms that will maintain fraternity and harmony between them.
For this reason, when they come to propose something which appears to be practical, we always see them dividing humanity into two parts: on the one hand, the state, the ruling power which they take to be infallible, impeccable, and free from any egoistic character; on the other, the people who no longer need plans for the future or any guarantees as to their security.
To carry out their plans, they are reduced to entrusting the ruling of the world to a power that is drawn, so to speak, from outside humanity. They invent a word: the state. They suppose that the state is a being that exists in itself, that possesses an inexhaustible amount of wealth independent from society’s wealth, and that by means of this wealth the state can provide work for everyone and ensure everyone’s existence. They take no heed of the fact that the state can only give back to society goods that it started off taking from it, and that it can actually give back only a part of these; nor furthermore, that the state is made up of men endowed with the sense of self, which in them just as in those being governed is inclined to degenerate into abuse; nor that one of the greatest temptations enticing one personality to offend others occurs when the man concerned is powerful and able to overcome resistance. In truth, although they have never expressed many views on this subject, the socialists probably hope that the state will be supported by institutions, by education, by foresight, and by close and severe supervision of the masses. However, if this is to be so, the masses have to be enlightened and farsighted, and the system of governance that I am examining tends precisely to destroy the foresight of the masses since it makes the state responsible for supplying all necessities, combating all obstacles, and providing for everyone.
But, people will say, if the sense of self is indestructible, if it has the disastrous tendency to degenerate into abuse, if the force that represses it is not within us but exterior to us, if it is contained within just limits only by the resistance and reaction of other selves, if the men who exercise power do not escape this law any more than those on whom power is exercised, so that society can be maintained in good order only by the constant vigilance of all its members over each other and in particular by those governed over those who govern, then radical antagonism is irremediable. We have no other safeguards against oppression than a sort of balance among all the [90] egoisms that keep one another in check; and fraternity, the principle that is so comforting, whose very name touches and softens hearts, that is capable of realizing all the hopes of all men of goodwill, uniting men through the bonds of friendship, this principle, proclaimed eighteen centuries ago by a voice that almost all of humanity has held to be divine, would be banished forever from the world.
God forbid that this should be our thought. We have ascertained that the sense of individuality is a general human law, and we believe that this fact is beyond doubt.
It is now a matter of knowing whether the fully understood and constant interest of a man, a class, or a nation is radically opposed to the interest of another man, class, or nation. If this is so, it has to be stated with sorrow but truthfully that fraternity is just a dream, since it must not be expected that each person will sacrifice himself for others, and if this happened, we cannot see how humanity would gain, since the sacrifice of each one would be equivalent to the sacrifice of the entire human race; this would constitute universal misfortune.
But if, on the contrary, by studying the action that men exercise over one another, we discover that their general interests concur, that progress, morality, and the wealth of all are conditions for the progress, morality, and wealth of each individual, we will then understand how the concept of individuality is reconciled with that of fraternity.
There is one condition, however. It is that this agreement does not consist in a vain proclamation but is clearly, rigorously, and scientifically demonstrated.
When this happens, as this demonstration is better understood and inculcated in a greater number of intelligent minds, that is to say, as enlightenment and moral science progress, the principle of fraternity will extend further and further throughout the human race.
Well, this is the comforting demonstration that we think we can make.
First of all, what should we understand by the word fraternity?
Should we, as it is said, take this word literally? And does it imply that we should love everyone currently living on the surface of the globe as we love the brother who was conceived in the same womb and fed on the same milk and whose cradle, games, emotions, sufferings, and joys we have shared? Obviously this is not the meaning of the word that we should accept. No man could exist for more than a few minutes if each sorrow, each setback, or each death that occurred around the world had to arouse in him the same emotion [91] as if it concerned his brother, and if the socialist gentlemen are adamant on this point (and they are very adamant . . . when it applies to others), they have to be told that nature is much less demanding. It is useless for us to beat our breasts or indulge in the affectation of words, so commonly seen these days; we will never, fortunately, be able to raise our sensitivity to this height. If nature does not allow this, morality forbids it, too. We all have to fulfill our duties toward ourselves, those close to us, our friends, our colleagues, and all those whose existence depends on us. We are also responsible to our profession and for the functions entrusted to us. For most of us these duties take up all our time, and it is impossible for us to be able always to have a thought for and make our immediate aim the general interests of humanity.
The question is to establish whether the scheme of things, resulting from the way men organize themselves and their perfectibility, does not lead to individual interests becoming increasingly merged with the general interest, and whether we are not brought by observation and perhaps by experience to desire the general good and consequently to contribute to it. In this case, the code of fraternity would arise from the very sense of self to which at first sight it is opposed.
Here, I need to return to a fundamental idea, one I have already discussed in this book11 in the articles titled “Competition” and “Population.”
With the exception of blood relationships and acts of pure selflessness and self-sacrifice, I think it can be said that the whole economy of a society is based on exchanged services.
However, to anticipate any misinterpretation, I have to say a word on self-sacrifice, which is the voluntary sacrifice of the sense of self.
Economists are accused of not taking self-sacrifice into account and perhaps despising it. Please God, we will never fail to recognize the power and grandeur in self-sacrifice. Nothing that is great and generous, nothing that arouses fellow feeling and admiration in men can be accomplished except [92] through selflessness. Man is not just an intelligent mind, and he is not merely a calculating being. He has a soul, and in this soul there is a germ of fellow feeling which may be developed until it attains universal love, to the point of the most absolute sacrifice, at which point it produces the generous actions that, when narrated, bring tears to our eyes.
However, economists do not think that everyday events in our lives, the daily and constant actions that men carry out to keep themselves alive and fed and to develop themselves can be based on the principle of self-sacrifice. Well, these acts and transactions that are freely negotiated are the very ones that are the subject of political economy. The field is sufficiently large to constitute a science. Men’s actions relate to a variety of sciences: when they give rise to dispute, they are subject to the science of law; when they are subject to the direct influence of the established authority, they relate to politics; and when they call for the effort we consider virtue, they concern morality or religion.
None of these sciences can do without the others and even less contradict them. However, we should not require one of them to embrace the others totally. And although economists have little to say about self-sacrifice since this is not their subject, we dare to assert that their biographies in this respect can bear comparison with those of writers who have embraced other doctrines. In the same way as priests have little to say about value and competition because these things are only indirectly concerned with the sphere of their predications, they buy and sell just like common mortals. This can also be said of socialists.
Let us say, then, that in human actions, those that form the subject of economic science involve the exchange of services.
Perhaps people will find that this is to disparage the science. However, I sincerely believe that it is substantial, although simpler than is supposed, and that it is entirely based on these vulgar notions: give me this and I will give you that; do this for me and I will do that for you. I cannot conceive of any other forms of human transaction. The intervention of cash, merchants, and middlemen may complicate this elementary system and obscure our view of it. It is nonetheless typical of all economic acts.
Bastiat is possibly referring to the first two volumes of a history of the French Revolution (Histoire de la Révolution française, 1847) that the socialist Louis Blanc had published just prior to the outbreak of the February Revolution of 1848. (See also the entry for “Blanc, Louis,” in the Glossary of Persons.)
Date of the arrest of Robespierre (27 July 1794). He was guillotined the fol lowing day.
(Bastiat’s note) Blanc, Histoire de la Révolution française, vol. 1, p. 9. [Bastiat is quoting from the 1847 edition of Blanc’s work.]
(Bastiat’s note) Blanc, Histoire de la Révolution française, vol. 1, pp. 350–51. [Bastiat is again quoting from the 1847 edition of Blanc’s work. In this passage Bastiat is summarizing Blanc’s critique of eighteenth-century theories of individualism.]
Jan Hus.
(Paillottet’s note) As Bastiat had not finished copying the passage of the book he is dealing with by hand in his manuscript, I have had to make good this lacuna and present the whole sentence. With regard to the last few words, I make so bold as to say that they imply a contradiction with the thought of achieving any form of social system through the intervention of the state, that is to say, by force. Those who put forward social systems they have invented do not limit themselves, any more than Robespierre does, to claiming to persuade or to obtain the voluntary acquiescence of the heart, and have no greater justification than he in assuming the flag of freedom.
See “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 407–8.
Ibid., p. 408.
“And the world has been handed over to their discussions.”
See “Note on the Translation,” pp. xiii–xiv, and also “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 409–10.
It is not clear to what book Bastiat is referring here. He published only three book-length works before his death: Cobden and the League (1845), Economic Sophisms (1847), and Economic Harmonies (1850). The last was only partially completed when it was first published and contained only the first ten chapters. A more complete edition was published in 1851, after his death. Chapter 10 of Economic Harmonies was titled “Competition,” and chapter 16 was titled “Population.” This essay appeared with no date or place of publication and may have been written in June 1848. Bastiat thus may be referring to a draft of the Economic Harmonies, which he was writing at the time this essay appeared.
T.210 (1848.06.??) "On Religion"↩
SourceT.210 (1848.06.??) "On Religion" (La question religieuse). Internal evidence suggests composed mid-1848. [OC7.79, pp. 355-57.] [CW1.2.4.21, pp. 466-68.]
Editor's Note[to come]
TextI always thought that the religious question would continue to move the world. The legitimate religions of today, however, retain too much of the spirit and methods of exploitation to be reconciled with the inevitable progress of enlightenment. On the other hand, corrupt religious practice will put up a long and terrible resistance, being based on, nay confused with, the greatest need of humanity, that is to say with religious morality.49
It appears, therefore, that humanity has not done with this sad pendulum swing which has filled the pages of history. On the one hand religious abuse is attacked, and in the heat of the conflict people are led on to dislodging religion itself. On the other hand, people stand as the champions of religion, and in the zeal of defense abuses are justified.
This long tearing apart was decided upon on the day a man used God to make another man his intellectual slave, the day one man said to another, “I am the minister of God. He has given me total power over you, your soul, your body, and your heart.”
But, leaving aside these general reflections, I want to draw your attention to two facts referred to by the newspapers of today which prove how far from resolution are the problems surrounding the unity or separation of the spiritual and the temporal.
It is said that it is this complete separation which will solve all the difficulties. Those who put forward this assertion should begin by proving that the spiritual and the temporal can follow independent destinies and that the master of the spiritual is not the master of all.
Be that as it may, here are the two facts, or perhaps there is only one fact.
His Lordship, the Bishop of Langres, having been chosen by the electors of the département of —— to represent them, did not think he had to regard this election as sufficient, or even rely on his own decision. He has a superior who is neither French nor in France and, it should be said, who is at the [467] same time a foreign king. It is to this superior that His Lordship the Bishop of Langres refers. He says to him, “I promise you full and gentle obedience; will I do well to accept?” His spiritual superior (who is at the same time a temporal king) replies, “The state of religion and the church is so alarming that your services may be more useful on the political stage than in the midst of your flock.”
At this, His Lordship of Langres lets it be known to his electors that he accepts their mandate. As a bishop he is obliged to leave them, but they will receive in compensation an apostolic blessing. Thus all was arranged.
Now, I ask you, is it to defend religious dogmas that the pope confirmed the election of ——? Is his Lordship of Langres going to the Chamber to fight heresies? No, he is going there to pass civil laws and to occupy himself exclusively with temporal matters.
What I want to point out here is that we have fifty thousand people in France, all highly influential in character, who have sworn total and gentle obedience to their spiritual leader, who is at the same time a foreign king, and that the spiritual and temporal are so intertwined that these fifty thousand men can do nothing even as citizens without consulting this foreign king whose decisions are unquestionable.
We would shudder if someone said to us, “We are going to endow a king, whether Louis-Philippe, Henri V,50 Bonaparte, or Leopold,51 with spiritual power.” We would think that this might establish a boundless despotism. However, whether you add spiritual power to temporal power or superimpose one upon the other, is it not the same thing? How is it that we would not consider without horror the usurpation of the government of souls by the civil authorities while we find quite natural the usurpation of civil government by priestly authority?
After all, His Holiness Pius IX is not the only man in Europe in whom is vested this twin authority. Nicholas is both tsar and pope and Victoria is queen and female pope.
Let us suppose that a Frenchman professing the Anglican faith is elected as a representative. Supposing that he writes and has published in the newspapers a letter that goes as follows:
[468]Gracious sovereign,
I owe you nothing as queen, but as you are placed at the head of my religion, I owe you my total and gentle obedience. Please would you let me know, after consulting your government, if it is in the interests of the state and the Church of England for me to be a legislator in France.
Let us suppose that Victoria replies and has her reply published as follows:
My government is of the opinion that you should accept the office of deputy. Through this you would be able to render great service directly to my spiritual power and, consequently, indirectly to my temporal power, for it is very clear that each of these serves the other.
I ask you, could this man be considered a loyal and sincere representative of France? . . .
Endnotes(Paillottet’s note) This draft article indicates its date itself. [There are references in this piece to Pope Pius, who was pope from 1846 to 1878. Also there is a reference to “His Lordship, the Bishop of Langres” (Pierre-Louis Parisis), who was elected to the Constituent Assembly of 4 May 1848. Thus, we estimate that this article could be dated sometime in mid-1848.]
The name given by the absolutists to the count of Chambord, son of Charles X. He never reigned.
Leopold I.
T.303 "Speaks in a Discussion of Randoing 's Proposal to increase Export Subsidies on Woollen Cloth" (9 June 1848)↩
SourceT.303 [1848.06.09] "Speaks in a Discussion of Randoing's Proposal to increase export subsidies on woollen cloth". Short speech in the National Constituent Assembly, 9 June 1848, CRANC, vol. 1, pp.749-50. Not in OC. CW4
Editor's IntroductionThis is the 2nd of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
Following the Revolution of February 1848 there was a severe economic recession in France which put many people out of work and led to a collapse in tax revenue for the Provisional Government. As the Vice-President of the Constituent Assembly's Finance Committee Bastiat spent much time trying to bring order to the government's finances which was complicated by the power of Louis Blanc who controlled the National Workshops relief program which was run out of the Luxembourg Palace, the cost of which got out of control and led to its closure in June, prompting the June Days uprising with considerable loss of life. The Provisional Government introduced a new tax, the "45 centime tax," in 16 March, 1848 as a temporary measure to cover the budget shortfall by imposing a new 45% direct tax on things like land, doors and windows, and trading licences. Is was a very unpopular tax which led to widespread protests especially in the southwest of France. The government was faced with constant demands for both tax cuts (on stamps, alcohol, salt, and tobacco) and increased government spending such as this proposal to subsidise the woollen industry by giving them export subsidies. It was Bastiat's job as Vice-President of the Fiance Committee to give periodic reports to the Assembly and to argue the case for putting limits on spending.
In this brief speech we see Bastiat using several arguments which we have seen before, that subsidies to one group are always paid for by taxes on other groups, that these taxes usually fall on the poorest workers and taxpayers who are least able to bear them, that public works such as military fortifications will produce concentrated benefits which are immediately seen (prosperity in the military town) but will cause hardships elsewhere which will not be immediately seen, and that many people suffer under "dreadful illusions" about the impact of government economic policies.
TextCitizen Bastiat : I am obliged to repeat that I do not question the fact that there is suffering in particular industries, nor that the workers in those industries are suffering. Unfortunately, in our time there is no industry whose suffering can be questioned. I only call your attention to the illusion which is embodied in the remedy which has been proposed.
What is the issue at hand, and what is being asked for? People say: "Here is an industry which is not selling its products; if it could export them it would clear its surplus stock in the stores and this would be a great benefit either for this industry or for the workers it employs.
This fact is certainly indisputable, but what do we have to do to attain this end? To increase taxes and to increase export subsidies. This seems to me to exactly like giving taxpayers' money to foreigners, in order to allow them to buy French cloth at a discount. With a system like this, there is no industry which couldn't be assisted, for example that of wheat, wine, canvas, luxury goods, which all have goods which cannot be sold. Nearly all our industries are in the same situation, and that does not affect just the owner but agricultural workers and all kinds of work.
Well, is it possible to solve a problem by passing the burden of taxes from one group of people to another? I don't think so. If this method were effective, nothing would be so easy as this to revive all industry. It would be sufficient to slap on some new taxes and to share them out as export subsidies to all those industries which are experiencing difficulties in making sales. They would be able to lower their prices; and who would make a profit? The purchaser, the foreigner.
These subsidies are practically like money for the building of the fortifications of Langres 1010 which people have been talking about recently.
When the Government spends money in Langres it does some good for the workers of this town, and this is a good which everybody sees; but it is also necessary to see where this money comes from. 1011 It comes out of the pockets of the taxpayers; if they give it to the State they can no longer then spend it themselves, and there is as much work extinguished on one side as there is work stimulated on the other.
It is true that people say that, from the perspective of the working classes, the system is good because the tax falls on the wealthy and is spent for the benefit of the working classes; but I think that, if the working class thinks in this way, it is profoundly deluding itself; because by taking in turn all the articles in the Government's revenue budget one sees clearly that it is precisely on the working classes that the taxes fall. 1012 Unfortunately, the taxes, when they are imposed at the level where we now see them, inevitably have to be levied on the entire mass of the people, because otherwise they would not be productive; and when they are levied on the entire mass of the people, then it is especially the poor and suffering class which is hit the hardest, and that is inevitable, so to speak, because one cannot make a distinction between diverse objects hit by the tax; to do so would be never-ending and would require several colossal administrative agencies to administer.
What is the result of all this? It is that goods of inferior quality support the largest share of the tax. Wines of the lowest quality, sugar of the lowest quality, coffee of the lowest quality; all these things support very heavy taxes, which ensures that the proportion of tax paid is much greater for the people, for the people who are the poorest, than for those who are richer.
The project which has been put to you and other similar plans all have the same problems.
If the Government could pay these subsidies with the money it could get from Mexico or from some Eldorado, I would eagerly support it; but it takes the money out of the same pocket as those it is trying to help; these are the same people who see the tax on tobacco, on salt, on wine, on meat, increase from year to year; and they are under the disastrous illusion, 1013 if they don't believe that it is with this money, ultimately, that the export subsides are paid, and which have no other effect than to put our products in the hands of foreigners at a price lower than that which we ourselves pay.
Is this an effective solution?
To make sure of it, it is sufficient to present to the lips of all the industries this cup full of subsidies one after the other, and one would be forced to recognize that one had done nothing more than present an immense gift to foreigners.
I am not opposed to taking this matter into consideration, because I think that it is always useful to examine and to discuss such questions; but I wish to protect the Assembly from the illusion that one makes when one sees the good which accumulates at one point, and neglects to see the harm which is distributed on the whole, because I believe that the largesses of the State which are offered to us as a solution are precisely the cause of our suffering. (Very good! Very good! or Well said! Well said!)
1010 Langres is a Commune in the French Department of Haute-Marne in the east of the country. A citadelle was built by the Romans which was modernised between 1842-50, along with the wall which encircled it (1844-56). The fort was designed in the classic star shape pioneered by Vauban in the 17th century and which was also used in the ring of forts built by Thiers around Paris between 1841-44. See the glossary on "The Fortifications of Paris."
1011 This is an early version of his argument about "the seen and the unseen" which he will take up in earnest in a book of that name in July 1850.
1012 In 1848-49 the French government collected 1.37 billion fr. in revenue, of which 510 million fr. (or 37%) came from customs duties on things like sugar and salt, and indirect taxes on things like alcohol, salt, sugar, and tobacco. See the Appendix on French Government Budgets." ???
1013 See the economic sophism "Disastrous Illusions" (March 1848), CW3 24, pp. 384-99, on this same topic.
Articles in Jacques Bonhommme↩
T.211 (1848.06.11) "Freedom" (JB, June 1848)↩
SourceT.211 (1848.06.11) "Freedom" (La liberté), Jacques Bonhomme, no. 1, 11-15 June 1848, p. 1. [OC7.56, pp. 235-36.] [CW1.2.4.9, pp. 433-4.]
Editor's Note[to come]
TextI have lived a long time, seen a great deal, observed much, compared and examined many things, and I have reached the following conclusion:
Our fathers were right to wish to be free, and we should also wish this.
[434]It is not that freedom has no disadvantages, since everything has these. To use these disadvantages in argument against it is to say to a man trapped in the mire: Do not get out, as you cannot do this without some effort.
Thus, it is to be wished that there be just one faith in the world, provided that it is the true one. However, where is the infallible authority which will impose it on us? While waiting for it to manifest itself, let us maintain the freedom of discussion and conscience.
It would be fortunate if the best method of teaching were to be universally adopted. But who has it and on what authority? Let us therefore demand freedom of teaching.
We may be distressed to see writers delight in stirring up all forms of evil passion. However, to hobble the press is also to hobble truth as well as lies. Let us, therefore, take care never to allow the freedom of the press to die.
It is distressing that man should be reduced to earning his bread by the sweat of his brow. It would be better for the state to feed everyone, but this is impossible. Let us at least have the freedom to work.
By associating with one another, men can gain greater advantage from their strength. However, the forms of association are infinite; which is best? Let us not run the risk that the state imposes the worst of these on us; let us seek the right one by trial and error, and demand the freedom of association.
A people has two ways of procuring something. The first is to make it; the second is to make something else and trade it. It is certainly better to have the option than not to have it. Let us therefore demand the freedom to trade.
I am throwing myself into public debate; I am trying to get through to the crowd to preach all the freedoms, the total of which make up liberty.
T.212 (1848.06.11) "The State" (JB, June 1848)↩
SourceT.212 (1848.06.11) "The State" (draft) (L’État), Jacques Bonhomme, no. 1, 11-15 June 1848, p. 2. [OC7.59, pp. 238-40.] [CW2.8, pp. 105-6.]
Editor's Note[to come]1
Text“There are those who say, ‘A financial man, such as Thiers, Fould, Goudchaux, or Girardin, will get us out of this.’ I think they are mistaken.”
“The people.”
“When?”
“When the people have learned this lesson: since the state has nothing it has not taken from the people, it cannot distribute largesse to the people.”
“The people know this, since they never cease to demand reductions in taxes.”
“That is true, but at the same time they never cease to demand handouts of every kind from the state.
They want the state to establish nursery schools, infant schools, and free schools for our youth, national workshops for those that are older, and retirement pensions for the elderly.
They want the state to go to war in Italy and Poland.
They want the state to found farming colonies.
They want the state to build railways.
They want the state to bring Algeria into cultivation.
They want the state to lend ten billion to landowners.
[106]They want the state to supply capital to workers.
They want the state to replant the forests on mountains.
They want the state to build embankments along the rivers.
They want the state to make payments without receiving any.
They want the state to lay down the law in Europe.
They want the state to support agriculture.
They want the state to give subsidies to industry.
They want the state to protect trade.
They want the state to have a formidable army.
They want the state to have an impressive navy.
They want the state to . . .”
“Have you finished?”
“I could go on for another hour at least.”
“But what is the point you are trying to make?”
“This. As long as the people want all of this, they will have to pay for it. There is no financial man alive who can do something with nothing.”
Jacques Bonhomme is sponsoring a prize of fifty thousand francs to be given to anyone who provides a good definition of the word state, for that person will be the savior of finance, industry, trade, and work.
EndnotesThis piece is a rough draft of Bastiat’s best-known pamphlet, “The State,” published in September 1848 (see “The State,” pp. 93–104 in this volume. For more details on Bastiat’s journalistic activity during the revolution of 1848, see “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 401–7 in this volume.
T.213 (1848.06.11) "The National Assembly" (JB, June 1848)↩
SourceT.213 (1848.06.11) "The National Assembly" (L’Assemblée Nationale), Jacques Bonhomme, no. 1, 11-15 June 1848, pp. 1-2. [OC7.58, pp. 237-38.] [CW1.2.4.17, p. 451.]
Editor's Note[to come]
Text“Master Jacques, what do you think of the National Assembly?”
“I think it is excellent, well intentioned, and devoted to the good. It is a product of the people; it loves the people and wants them to be happy and free. It brings honor to universal suffrage.”
“But how hesitant it is! How slow! How many storms in a teacup there are! How much time wasted! What good has it done? What evils has it prevented? The people are suffering, production is failing, work is at a standstill, the treasury is ruining itself, and the Assembly spends its time listening to boring speeches.”
“What are you saying? The Assembly cannot change the nature of things. The nature of things is at variance with nine hundred people governing with a will at once determined, logical, and swift. This being so, you must see how the Assembly is waiting for a government that will reflect its thought, how it is ready to give it a compact majority of seven hundred votes in favor of democratic ideas. However, no such government is in the offing at present and could hardly be so in the interim situation in which we find ourselves.”
“What should the Assembly do?”
“Three things: deal with the emergency, draw up the constitution,42 and make itself scarce.”
EndnotesThe Constituent Assembly, elected on 23 April 1848, adopted the Constitution on 4 November and dissolved itself by the end of April 1849.
T.214 (1848.06.11) "Laissez-Faire" (JB, June 1848)↩
SourceT.214 (1848.06.11) "Laissez-Faire" (Laissez-Faire), Jacques Bonhomme, no. 1, 11-15 June 1848, p. 1. [OC7.57, pp. 237.] [CW1.2.4.10, pp. 434-35.]
Editor's Note[to come]
TextLaissez-faire! I will begin by saying, in order to avoid any ambiguity, that laissez-faire is used here for honest things, with the state instituted precisely to prevent dishonest things.
This having been said, and with regard to things that are innocent in themselves, such as work, trade, teaching, association, banking, etc., a choice [435] must be made. It is necessary for the state to let things be done or prevent them from being done.
If it lets things be done, we will be free and optimally administered most economically, since nothing costs less than laissez-faire.
If it prevents things from being done, woe to our freedom and our purse. Woe to our freedom, since to prevent things is to tie our hands; woe to our purse, since to prevent things requires agents and to employ agents takes money.
In reply to this, socialists say: “Laissez-faire! What a disaster!” Why, if you please? “Because, when you leave men to act, they do wrong and act against their interests. It is right for the state to direct them.”
This is simply absurd. Do you seriously have such faith in human wisdom that you want universal suffrage and government of all by all and then you proclaim these very men whom you consider fit to govern others unfit to govern themselves?
T.216 "A Hoax" (15 June 1848, JB)↩
SourceT.216 (1848.06.15) "A Hoax" (Une mystification), Jacques Bonhomme , no. 2, 15-18 June 1848, p. 2. [OC7.61, pp. 242-44.] [CW4]
Editor's IntroductionThere are several facets to Bastiat's brief career after he left his home in Mugron, Les Landes in early 1845 and his death at the end of 1850. During those 6 years he wrote prolifically for the Courrier français 1014 and the Journal des Économistes on both popular economic and policy related topics, he became the leader of the free trade movement in France with the founding of the French Free Trade Association in February 1846 then the editor of its journal Le Libre-Échange in November 1846 and one of their leading public speakers, he successfully stood for election in the new Second Republic in April 1848 and served as Vice-President of the Chamber's Finance Committee, he became one of the Guillaumin publishing firm's leading anti-socialist pamphleteers, and finally, he was an aspiring economic theorist who did not live long enough to see his treatise completed.
On top of this hectic schedule of speaking, writing, agitating, and publishing he also found time to engage in street politics in Paris at two key moments during the 1848 Revolution - the first was in February and March with a daily called La République française , 1015 and the second was a weekly in June 1848, called Jacques Bonhomme . 1016 On both occasions, he and Molinari, and some other economist friends started a newspaper or journal directed at ordinary French people which they handed out on the streets of Paris. Also on both occasions, Bastiat was caught in the cross-fire as troops fired on protesters, killing hundreds during the "June Days" rioting of 23-26 June, 1848. 1017 In this volume we have three articles from Jacques Bonhomme - "A Hoax," "Taking Five and Returning Four is not Giving," and "A Dreadful Escalation." 1018 Other articles from these magazines can be found elsewhere in the Collected Works . 1019
The title of the magazine Jacques Bonhomme was named after the character of the French everyman. 1020 Bastiat began using him as a foil in his journalism as a way to reach out to readers beginning in May 1846 in an article on "Salt, the Mail, and the Customs Service." 1021 The wily Frenchman Jacques Bonhomme would typically challenge the ideas of the protectionists or government officials with his free market ideas and scepticism about the efficacy of government regulations. Before the appearance of the eponymous magazine, Jacques Bonhomme appeared several times in articles written in late 1847 which would appear in Economic Sophisms. Series 2 (published in January 1848), once in his first revolutionary newspaper La République française , and then many times in Jacques Bonhomme , either by name or simply as "I". 1022 After a brief rest, Jacques Bonhomme appeared once again in Bastiat's last published work What is Seen and What is Not Seen (July 1850) most notably in the the first chapter on "The Broken Window." 1023
Bastiat begins this story speaking as "I, (Jacques Bonhomme)" and immediately challenges a "Great Minister" who had the unlikely name of "Monsieur Budget" about government tax policy. The Minister relates the history of how the government responded to demands by the public for make-work programs (like the National Workshops instituted by Louis Blanc in February 1848) 1024 to relieve unemployment. It began raising money by means of direct taxes on income (which did not exist in France at that time) with the Minister taking a cut of one third for himself and the bureaucrats who ran the program. Since the income tax was very visible, the workers began to realise that they were being duped and were in fact paying for their own unemployment relief (this was also the argument Bastiat used in his essay "The State" which also appeared in Jacques Bonhomme ). 1025 Thus they began to complain to the Minister who then decided to invent a new and less visible way of raising taxes which would deflect the workers' criticism, namely indirect taxes on food and other essential items such as salt and alcohol (this is France after all!). The indirect taxes raised over three times as much money, allowing the Minister to take a much larger cut for himself and his bureaucrats, and to fool the workers into thinking that the government was providing them with employment. This was the great "hoax" or deception.
It should be noted that, according to budget figures for 1848, the French state collected 1,350 million francs in all forms of taxation. 1026 Direct taxes on land, personal property, windows and doors, etc, raised 421 million francs. Indirect taxes on alcohol, salt, sugar, tobacco, etc raised 308 million francs. The amount spent by the French State on public works of various kinds was 111 million francs, or 8% of the total budget. Bastiat was a very strong opponent of direct taxation as his speeches in the Chamber demonstrate. 1027 He called for drastic cuts in or abolition of the taxes on salt and alcohol, the tax on letters, as well as for the closing down of the National Workshops in May, 1848. 1028 He wanted to replace indirect taxes which fell most heavily on the poor with low direct taxes and a 5% tariff rate.
One should also note two aspects of the language Bastiat uses in this article. Firstly, in an article he wrote for the JDE in January 1846, "Theft by Subsidy," 1029 Bastiat decided that the time for using circumlocutions to describe government economic policies was over and that henceforth he was going to use much more direct, even "brutal" language, such as "theft" and "plunder." He called for "an explosion of plain speaking" by free market advocates and in his own work we see many occurrences of words such as "dépouiller" (to dispossess), "spolier" (to plunder), "voler" (to steal), "piller" (to loot or pillage), "raviser" (to ravish or rape), and "filouter" (to filch). The latter is a word he uses several times in this article as part of this campaign.
Secondly, his theory of plunder which was emerging in late 1847 and early 1848 (see the first two chapters of ES2 1 "The Physiology of Plunder" and ES2 2 "Two Moral Philosophies") 1030 uses a very specific vocabulary, some of which we also see in this article. His theory can be summed up as follows:
Bastiat described taxation as nothing less than "plunder" (la spoliation) where the more powerful, the plunderers ("les spoliateurs"), use force to seize the property of others (the plundered) in order to provide benefits for themselves or favoured vested interest groups like the aristocracy or the church resulting in what he termed "aristocratic" or "theocratic plunder." He uses a number of closely linked expressions to describe this process of plunder: the plunderers (les spoliateurs) use a combination of outright coercion (la force), fraud (la ruse), and deception (la duperie) and "hoaxes" (la mystification) to acquire resources from ordinary workers and consumers. They also resort to the use of misleading and deceptive arguments (sophismes) to deceive ordinary people, the dupes (les dupes), and to convince them that these actions are taken in their own interests and not those of the ruling elites.
One can only wonder what the rioters on the streets of Paris in June 1848 thought of these arguments.
TextAs you know, I have traveled a great deal, and I have lots of tales to tell. 1031
As I was journeying through a far-off country, I was struck by the sorry situation in which the people appeared to be, in spite of their industriousness and the fertility of the land.
Desiring an explanation of this phenomenon, I turned to a Great Minister whose name was Budget . 1032 This is what he told me:
"I have had a count made of the workers. There are one million of them. They complain that they are not paid enough, and to me has fallen the task of improving their lot.
First of all, I thought of taking two sous 1033 from the daily pay of each worker. 1034 That brought 100,000 francs each morning into my coffers, or thirty million francs per year.
Out of this thirty million , I kept back ten for me and my officials.
I then told the workers: I have twenty million left, which I will use to have various projects started, and this will be of great benefit to you.
In fact, they were marvelously happy for a little while. They are decent folk, who do not have very much time for reflection. They were very upset at having two sous a day filched from them, but they were much more mesmerized by the millions apparently being spent by the State.
In spite of this, they gradually began to change their minds. The most alert of them said: 'We have to admit that we are real dupes. 1035 Minister Budget has started by taking thirty francs per year from each of us, free of charge . He then is giving us back twenty francs, not free of charge but in return for work. When all is said and done, we are losing ten francs and some working days in this arrangement.'"
"It seems to me, Lord Budget , 1036 that these workers are reasoning correctly."
"I thought the same thing, and I saw clearly that I could not continue to extract considerable sums from them in such a naïve way. With a bit more deception, I said to myself, instead of two, I will obtain four.
This was when I invented indirect taxation. Now, each time that workers buy two sous' worth of wine, one sou goes to me. I am taking something on tobacco, something on salt, something on meat and something on bread. I am taking from everything, and all the time. I am thus gathering, not thirty but one hundred million at the expense of the workers. 1037 I feast in grand hotels, I lounge about in fine carriages, I have myself served by fine servants, up to ten million franc's worth. I give twenty million francs to my officials to keep an eye on wine, salt, tobacco, meat, etc., and with what remains of their own money I set to work the workers."
"And don't they see through the hoax?"
"Not in the slightest. The way in which I empty their pockets is so subtle that it escapes them. However, the large-scale projects I arrange to be carried out dazzle them. They say to each other: 'Goodness! What a good way of eradicating poverty. Long live Citizen Budget ! 1038 What would become of us if he did not give us work?'"
"Don't they see that if this happened then you would no longer be taking big bucks from them and that if they spent this themselves they could provide employment for one another?"
"This does not occur to them. They constantly cry out to me: ' Great Statesman, make us work even more .' And this warms my heart for I interpret this to mean: Great Statesman, take even more of our sous as taxes on our wine, our salt, our tobacco and our meat ."
1014 See the glossary entries on " Le Courrier français, " the " Journal des Économistes ," " Le Libre-Échange ."
1015 La République française appeared daily and was edited by Frédéric Bastiat, Hippolyte Castille, and Gustave de Molinari. It appeared in 30 issues between 26 February and 28 March 1848. The format of the magazine was only one or two pages which could be handed out on street corners or pasted to walls so that passers by could read them.
1016 Jacques Bonhomme was a short-lived biweekly paper four issues of which appeared between 11 June to 13 July. It was written and distributed by Bastiat, Gustave de Molinari, Charles Coquelin, Alcide Fonteyraud, and Joseph Garnier. The first issue appeared just before the June Days uprising (23-26 June) took place and it was forced to close soon after as a result of the violence on the streets.
1017 Bastiat talks about his experience on the barricades in February and June of 1848 in 93. Letter to Marie-Julienne Badbedat (Mme Marsan), 27 February 1848, CW1, pp. 142-43;
104. Letter to Julie Marsan (Mme Affre), Paris, 29 June 1848, CW1, pp. 156-57; and "Statement of Electoral Principles in April 1849", CW1, pp. 390-95.
1018 "A Hoax," Jacques Bonhomme , no. 2, 15-18 June 1848, below, pp. 000; "Taking Five and Returning Four is not Giving," Jacques Bonhomme , no. 2, 15-18 June 1848, below, pp. 000; "A Dreadful Escalation," Jacques Bonhomme , no. 3, 20-23 June 1848, below, pp. 000.
1019 Articles written by Bastiat are listed in the glossary entries on " La République française " and " Jacques Bonhomme (Journal)."
1020 "Jacques Bonhomme" (literally Jack Goodfellow) is the name used by the French to refer to "everyman," sometimes with the connotation that he is the archetype of the wise French peasant. Bastiat uses the character of Jacques Bonhomme frequently in his constructed dialogues in the Economic Sophisms as a foil to criticise protectionists and advocates of government regulation. See the glossary entry on "Jacques Bonhomme (person)".
1021 ES2 12 "Salt, the Mail, and the Customs Service," (JDE, May 1846), CW3, pp. 198-214.
1022 The history of how Jacques Bonhomme came to publish a journal is explained in the first issue: "Histoire de Jacques Bonhomme. Comment est venue à Jacques Bonhomme l'idée d'écrire un journal." Jacques Bonhomme , no. 1, 11-15 June 1848, p. 1. Unsigned but probably by Bastiat.
1023 See the glossary entry on "Jacques Bonhomme (person)" for a history of Bastiat's use of the character of "Jacques Bonhomme."
1024 See the glossary entry on "Blanc" and "The National Workshops."
1025 "The State (draft)," Jacques Bonhomme , no. 1, 11-15 June 1848, CW2, pp. 105-6. In the essay Jacques Bonhomme offers a prize for the best definition of the State.
1026 See the Budget Papers for 1848.??
1027 See his speeches in Chamber:"Speech on the Tax on Wines and Spirits" (12 Dec. 1849), CW2, pp. 328-47; and"Peace and Freedom or the Republican Budget," also published as a pamphlet, CW2, pp. 282-324. See also his article on the salt tax "Consequences of the reduction of the Salt Tax" ( Journal des Débats , 1 Jan. 18490, CW2, pp. 324-27.
1028 Bastiat wrote a provocative article calling for the immediate abolition of the National Workshops the week during which the rioting opposing this took place. They closed their journal soon afterwards:"To Citizens Lamartine and Ledru-Rollin", Jacques Bonhomme , no. 3, 20-23 June 1848, CW1, pp. 444-45.
1029 ES2 9 "Theft by Subsidy" ( JDE , Jan. 18460), CW3, pp. 170-79.
1030 See the glossary entry on "Bastiat's Theory of Plunder." Also, ES2 1 "The Physiology of Plunder," CW3, pp. 113-30, and ES2 2 "Two Moral Philosophies," CW3, pp. 131-38.
1031 This is Bastiat speaking through the persona of "Jacques Bonhomme." Bastiat had travelled in Spain and Portugal on family business in the 1820s and 1830s, and had been to England several times in the mid- and late 1840s. He had not travelled elsewhere that we know about.
1032 Bastiat uses the English word "Budget" here.
1033 1 sou = 5 centimes.
1034 2 sous is 10 centimes which works out at about 1/30 (3.33%) of the daily pay of an unskilled labourer. A few years after the revolution Horace Say provided data on the average daily wages of 13 groups of workers in the Paris area, including unskilled labourers who earned 2.50 to 3 fr per day; stone masons 5 fr.; tailors 4 fr.; textile factory workers 4.30 fr.; metal workers 4.25 fr.; and printers 3.50 fr. Horace Say, "Du taux des salaires à Paris," JDE, 2nd. série, T. VII, no. 7, 15 Juillet 1855, pp. 17-27.
1035 Here Bastiat uses the phrase "grandes dupes" (great dupes or fools) which is an important part of the vocabulary of his theory of plunder. See ES2.1 "The Physiology of Plunder" and the glossary entry on "Bastiat's Theory of Plunder."
1036 Bastiat changes the title of Minister Budget throughout this story, from "Great Minister," to "Minister Budget", to "Lord Budget" (Seigneur Budget), then the comradely "Citizen Budget", and finally "Grand Statesman".
1037 The tax on salt (la gabelle) raised 37 million fr. in 1847; the state monopoly of tobacco sales raised 115 m. p.a. between 1846-49; and the tax on wine raised 104 m. in 1848. Without taking into account municipal taxes on meat and bread this raised a total of about 256 million fr. for the government. See the French Budget papers for 1849.
1038 The workers go from using the deferential "Seigneur" to the comradely "citoyen" Budget.
T.217 "Taking Five and Returning (giving back) Four is not Giving" (15 June 1848, JB)↩
SourceT.217 (1848.06.15) "Taking Five and Returning Four is not Giving" (Prendre cinq et rendre quatre ce n'est pas donner), Jacques Bonhomme , no. 2, 15-18 June 1848, p. 1. [OC7.60, pp. 240-42.] [CW4]
Editor's IntroductionThis is the second of three articles which were written for Bastiat's revolutionary street magazine Jacques Bonhomme in June 1848 which we are including in this volume. For more information about the magazine, see the introduction to "A Hoax" (above).
In this essay, he returns to issues which preoccupied him throughout the Revolution of 1848, namely what is the State, and what is the relationship between those who work for the State and those who pay taxes to the State? In the first issue of Jacques Bonhomme (11 June) in the essay called "The State" Bastiat ends by announcing that:
Jacques Bonhomme is sponsoring a prize of fifty thousand francs to be given to anyone who provides a good definition of the word state, for that person will be the savior of finance, industry, trade, and work. 1039
Here, Bastiat provides his own definition of the State as "the collection of all civil servants" and contrasts them with "the workers of all sorts who make up society." The latter pay the taxes which are used to pay the salaries of the former, or as he phrases it, the workers who make up society "enable the State to live," and not vice versa.
The constant call by the socialists for the State to employ the unemployed, feed the hungry, and care for the old and sick, reached a high point during the summer of 1848 as the Constituent Assembly debated the wording of the new constitution for the Second Republic. The socialists wanted specific clauses, such as "the right to a job" (le droit au travail), inserted in the constitution which would guarantee a state funded job for anyone who wished to work and a declaration of responsibility by the state to care for the sick and old. This was opposed by the economists and liberal Deputies such as Léon Faucher, Frédéric Bastiat, Louis Wolowski, de Parieu, and Alexis de Tocqueville, and the socialists' motion was defeated by the end of the summer. 1040 This article should be seen as part of Bastiat's campaign to make the economists' objections known to the socialists' supporters who were regularly mobilised on the streets of Paris.
Bastiat often used references to classic French literature to help make his ideas better understood by his readers, especially in the Economic Sophisms . 1041 One of his favourite authors was the playwright Molière whose play Le malade imaginaire (The Hypocondriac) (1673) is quoted here. 1042 Molière's comedy was the last play he wrote and acted in as he was dying from tuberculosis and had suffered at the hands of doctors who were trying to cure him. (It should be noted that Bastiat too was suffering from an incurable disease of the throat which would later kill him and he would have seen many doctors looking for a cure or at least some relief from the pain.) In the play there is an appendix at the end which is in "Latin de cuisine" ("kitchen" or dog Latin) in which Molière mocks the practice of 17th century doctors of prescribing the same "cures" for all types of illnesses, i.e. bleeding and purging their clients for no apparent medical benefit. An apprentice doctor (Bachelierus) is being inducted into the fraternity of practising doctors and is asked by Dr. Praeses what he would do under various circumstances. His answer is always "reseignare, repurgare, et reclisterisare" (bleed him again, purge him again, and inject him again). 1043
Si maladia Opiniatria Non vult se guarire, Quid illi facere? Purgare, saignare, clysterisare, Repurgare, resaignarer, reclysterare. |
But of the illness, in your opinion, is not cured? What would you do? Purge him, then bleed him, give him an injection, Then purge him again, bleed him again, and inject him again. |
Bastiat uses this passage to accuse the socialists of prescribing over and over again the same "cure" for poverty and unemployment, namely higher spending by the government and higher taxes on the people. It was not the first time he had done this. In a witty parody of Molière's parody in the economic sophism ES2.9, "Theft by Subsidy" (January, 1846) 1044 Bastiat wrote his own fake Latin oath of induction for aspiring tax collectors who like to "Volandi, Pillandi, Derobandi, Filoutandi" (to steal, plunder, filch, and swindle) travellers as they cross the country.
Dono tibi et concedo Virtutem et puissantiam Volandi Pillandi Derobandi Filoutandi Et escroquandi Impune per totam istam Viam |
I give to you and I grant virtue and power to steal to plunder to filch to swindle to defraud at will, along this whole road |
Interestingly, Edmund Burke also turns to this passage from Molière in order to criticise the French Revolutionaries' habit of trying to solve all their political problems by issuing more assignats (paper money) which finally resulted in hyper-inflation and the collapse of the French currency. See the following witty passage from Reflections on the Revolution in France (1790):
TextTheir fanatical confidence in the omnipotence of church plunder, has induced these philosophers to overlook all care of the public estate, just as the dream of the philosopher's stone induces dupes, under the more plausible delusion of the hermetic art, to neglect all rational means of improving their fortunes. With these philosophic financiers, this universal medicine made of church mummy is to cure all the evils of the state. These gentlemen perhaps do not believe a great deal in the miracles of piety; but it cannot be questioned that they have an undoubting faith in the prodigies of sacrilege. Is there a debt which pressed them? Issue assignats. Are compensations to be made, or a maintenance decreed to those whom they have robbed of their freehold in their office, or expelled from their profession? Assignats. Is a fleet to be fitted out? Assignats. If sixteen millions sterling of these assignats, forced on the people, leave the wants of the state as urgent as ever—issue, says one, thirty millions sterling of assignats—says another, issue fourscore millions more of assignats. The only difference among their financial factions is on the greater or the lesser quantity of assignats to be imposed on the publick sufferance. They are all professors of assignats. Even those, whose natural good sense and knowledge of commerce, not obliterated by philosophy, furnish decisive arguments against this delusion, conclude their arguments, by proposing the emission of assignats. I suppose they must talk of assignats, as no other language would be understood. All experience of their inefficacy does not in the least discourage them. Are the old assignats depreciated at market? What is the remedy? Issue new assignats. Mais si maladia, opiniatria, non vult se garire, quid illi facere? Assignare; postea assignare; ensuita assignare. The word is a trifle altered. The Latin of your present doctors may be better than that of your old comedy; their wisdom, and the variety of their resources, are the same. They have not more notes in their song than the cuckow; though, far from the softness of that harbinger of summer and plenty, their voice is as harsh and as ominous as that of the raven. 1045
Let us get it right, what is the State? Is it not the collection of all civil servants? Therefore, there are two species of men in the world: the civil servants of all sorts who make up the State and the workers of all sorts who make up society. That said, is it the civil servants who enable workers to live or the workers who enable civil servants to live? In other words, does the State enable society to live, or does society enable the State to live?
I am not a scholar but a poor devil called Jacques Bonhomme, 1046 who is and never has been anything other than a worker.
Well, as a worker who pays tax on my bread, wine, meat, salt, my windows and door, on the iron and steel in my tools, on my tobacco, etc., 1047 I attach great importance to this question and repeat:
Do civil servants enable workers to live or do workers enable civil servants to live?
You will ask why I attach importance to this question, and this is why:
For some time, I have noticed a great tendency for everyone to ask the State for the means of existence.
Farmers ask: Give us subsidies, training, better ploughs, and finer breeds of cattle, etc.
Manufacturers say: Enable us to make a bit more on our woolen cloth, our canvas, and our iron goods.
Workers say: Give us work, pay, and tools to work with.
I find these requests perfectly natural and would like the State to be able to give whatever was asked of it.
But in order to give all this, from where does it take it? Alas, it takes a bit more tax on my bread, a bit more on my wine, a bit more on my meat, a bit more on my salt, a bit more on my tobacco, etc. etc.
To ensure that it has something to give me, it must take something away from me, and cannot avoid doing this. Wouldn't it be better for it to give me less and take less from me?
For in the end, it never gives back to me all that it takes. Even to take and give, it needs officials who keep part of what is taken.
Am I not a real dupe to make the following bargain with the State? I need work. In order to arrange some for me, you put a tax of five francs on my bread, five francs on my wine, five francs on my salt, and five francs on my tobacco. That makes twenty francs. You will keep six for your own expenses and will arrange for me to have work for fourteen. Obviously I will be somewhat poorer than before and will call upon you to put this right, and this is what you will do. You will start again. You will take another five francs on my bread, another five francs on my wine, another five francs on my salt, and another five francs on my tobacco, which will make another twenty francs. To which you will add another six francs for your pocket and will enable me to earn another fourteen francs. When this is done, I will have fallen one degree further into poverty. I will turn to you once again, etc.
Si maladia Opiniatria Non vult se guarire, Quid illi facere? Purgare, saignare, clysterisare, Repurgare, resaignarer, reclysterare. |
But of the illness, in your opinion, is not cured? What would you do? Purge him, then bleed him, give him an injection, Then purge him again, bleed him again, and inject him again. |
Jacques Bonhomme! Jacques Bonhomme! I find it hard to believe that you have been crazy enough to submit to this regime just because some scribblers baptised it with the name of Organization and Fraternity . 1048
1039 "The State" (draft), Jacques Bonhomme , no. 1, 11-15 June 1848, CW2, pp. 105-6. This was expanded and later published in the more upmarket journal the Journal des Débats, (25 Sept. 1848), CW2, pp. 93-104.
1040 See Bastiat's "Letter to Garnier on the right to a job," (October, 1848), below, pp. 000.
1041 See "Bastiat's Rhetoric of Liberty: Satire and the 'Sting of Ridicule'"" in the Editor's Introduction to CW3, pp. lviii-lxiv.
1042 Jean-Baptiste Poquelin (or Molière) (1622- 1673) was a playwright in the late 17th century during the classical period of French drama. Bastiat quotes Molière many times in the Sophisms as he finds his comedy of manners very useful in pointing out political and economic confusions. See especially, The Misanthrope (1666); L'Avare (The Miser) (1668); Le Bourgeois gentilhomme (The Would-Be Gentleman) (1670); Le malade imaginaire (The Hypocondriac) (1673).
1043 See, Théatre complet de J.-B. Poquelin de Molière, publié par D. Jouast en huit volumes avec la preface de 1682, annotée par G. Monval, vol. 8 (Paris: Librairie des bibliophiles, 1883), Third Interlude, p. 286.
1044 ES2 9 "Theft by Subsidy" ( JDE , Jan. 1846), CW3, p. 176.
1045 See, Edmund Burke, Select Works of Edmund Burke. A New Imprint of the Payne Edition. Foreword and Biographical Note by Francis Canavan (Indianapolis: Liberty Fund, 1999). Vol. 2. Reflections on the Revolution in France .
1046 See the glossary entries on "Jacques Bonhomme (person)" and " Jacques Bonhomme (journal)."
1047 In 1848 the French state raised about 1.4 billion fr. in income of which 930 million came from direct taxes such as land and window and door taxes (420.1 m.), customs duties on imported goods (iron and steel) and the state salt monopoly (202 m.), and indirect taxes on alcohol, sugar, and tobacco (308 m.). See App. on French Finances ???
1048 The words "Organisation" and "Association" (usually capitalised by Bastiat) were slogans used by the socialist movement, inspired by the work of Louis Blanc and Victor Considerant. They had the special meaning of cooperative, state funded or state organised institutions set up for the benefit of workers. See the glossary entry on "Organisation."
T.218 "A Dreadful Escalation" (20 June 1848, JB)↩
SourceT.218 (1848.06.20) "A Dreadful Escalation" (Funeste gradation), Jacques Bonhomme , no. 3, 20-23 June 1848, p. 1. [OC7.62, pp. 244-46.] [CW4]
Editor's IntroductionThis is the third of three articles which were written for Bastiat's revolutionary magazine Jacques Bonhomme in June 1848 which we are including in this volume. For more information about the magazine, see the introduction to "A Hoax" (above).
Here Bastiat discusses an issue which had concerned him all year, especially as Vice-President of the Chamber's Finance Committee to which he had been elected following his election to the Chamber in April 1848, namely, the worsening budget deficit which had been brought about by a decline in tax revenues and by the increased demands being placed upon the provisional government by new political groups, especially the socialists and their supporters. An economic recession immediately followed the outbreak of the Revolution which lead to a dramatic decrease in business activity and higher unemployment. In this article, Bastiat provides some economic data on this crisis which can be summarised as follows:
- budgeted expenditure 1.7 billion fr.
- expected revenue 1.5 billion fr.
- deficit 200 million fr.
- immediate debt payments of 550 million for Treasury Bonds and Savings Bank bonds
It is not clear where Bastiat gets these figures but he should know as he was appointed Vice-President of the Finance Committee of the Constituent Assembly and he is normally reliable in his use of economic data. The data we have for 1848 and 1849 show that expenditure for 1848 was estimated at 1.446 billion fr. and for 1849 at 1.572 billion fr. Taking the latter year as being closer to Bastiat's figures, income for 1849 was estimated to be 1.412 billion fr. which would leave a deficit of 160.8 million fr. Total debt held by the French government in 1848 amounted to fr. 5.2 billion. Payments to service this debt amounted to 455 million fr. in 1849 which was about 32% of total income for that year. 1049
To compound the problem, the Provisional Government under Alphonse Lamartine encouraged socialists like Louis Blanc to begin putting into practice their scheme to create experimental "social workshops," now called "national workshops," which were modeled on their ideas of labour organisation, cooperative work practises, and profit sharing. They set up the National Workshops on February 27 which they ran out of the Luxembourg Palace and which were designed to provide tax-payer funded unemployment relief for the newly unemployed workers. 1050 Workers got 2 francs a day, which was soon reduced to 1 franc because of the tremendous increase in their numbers (29,000 on March 5; 118,000 on June 15). Workshops were set up in a number of regional centres but the main Workshop was in Paris. The National Workshops were run like a separate parallel government under the control of Louis Blanc and Émile Thomas over which the fledgling Constituent Assembly had little control.
In addition, Louis-Antoine Pagès (Garnier-Pagès) (1803-1878), 1051 the Mayor of Paris and then Minister of Finance in the Provisional Government, outlined the list of options his government was considering in late February and March when the full extent of the financial crisis of the French government was becoming clear: to impose forced (i.e. compulsory) loans on the citizens, issue paper currency backed by state owned property, to create a new central state bank, to sell state assets like forests, to impose a progressive tax on property or income, to increase direct taxes, to impose a tax on capital, or to declare bankruptcy. He chose to impose a new, "temporary" 45% increase on certain direct taxes and to force the privately owned Bank of France to limit withdrawals of large amounts (over 100 fr.) and to increase the number of smaller notes in circulation. The government passed the new tax law on March 16, 1848 which increased direct taxes on things such as land, moveable goods, doors and windows, and trading licenses, by 45%. It was known as the "taxe de quarante-cinq centimes" (the 45 centimes tax) and was deeply unpopular, prompting revolts and protests in the south west of France. After the crisis had passed Garnier-Pagès wrote a book justifying his actions in an attempt to save his reputation among ordinary tax payers who called him "l'Homme aux 45 centimes" (Mr. 45 Centimes, or The 45 Centimes Taxman). 1052
Much further to the left than Garnier-Pagès was the socialist Louis Blanc who headed the National Workshops program. He outlined his hopes for a real socialist revolution in April 1848 which would see the state replace the Bank of France with a national bank, the nationalisation of the railways, the amalgamation of insurance companies, the creation of a separate government budget for workers affairs, and the creation of a Minister for Economic Progress. 1053
By May, the Constituent Assembly, partly as a result of the critical reports made to it by Bastiat as VP of the Finance Committee, decided to pull the plug on the National Workshops and they were to cease functioning in June. The socialists were able to mobilise considerable popular support to protest this decision and angry crowds took to the streets on June 23-26, the so-called "June Days," which were the bloodiest days of the Revolution. Troops under General Cavaignac, assisted by members of the National Guard, were ordered to clear the streets of protesters, resulting in the death and arrests of thousands. About 1,500 people died and 15,000 were arrested (over 4,000 of whom were sentenced to transportation). The Assembly immediately declared a state of siege (martial law) in Paris and gave Cavaignac full executive power which lasted until October.
In the same issue in which this article appeared (20-23 June) Bastiat also published a potentially provocative article calling on "Citizens Lamartine and Ledru-Rollin" to close the National Workshops immediately. 1054 Bastiat and his economist friends who worked on the magazine got caught up in the street violence which followed and had to close the magazine after only 4 issues.
Bastiat's strategy in this short essay is to personalise the problem of the French State for the workers in the streets of Paris by telling them a story about Jacques Bonhomme's advice to a profligate friend who was living beyond his means. 1055 His advice was for his friend to "sack any unnecessary staff, move to a modest house, and sell your carriages, and you will gradually restore the state of your affairs." Exactly the same as Bastiat had been advising the government to do without a great deal of success.
TextThe ordinary expenditure of the State has been set at one billion seven hundred million for the 1848 budget.
Even with a tax at 45 centimes, you cannot extort more than one billion five hundred million from the people.
There remains a net deficit of two hundred million .
In addition to this, the State owes two hundred and fifty million in Treasury bonds and three hundred million to the Savings Banks, and these sums are due right now.
What can we do? Taxation has reached its ultimate limit. What can we do? The State has an idea: to seize lucrative industries and operate them for its own benefit. It will start with the railways and the insurance industry, followed by the mines, the transport industry, paper mills, the parcel post, etc. etc.
Taxing, borrowing and usurping, what a dreadful escalation!
I very much fear that the State is following a path that ruined Old Man Mathurin. I went to see Old Man Mathurin one day and asked him "Well, then, how is business?"
"Dreadful", he answered, "I have difficulty in making ends meet. My expenditure outstrips my income."
"You have to try to earn a bit more."
That's impossible."
"In that case, you have to make your mind up to spend a little less."
"Nonsense, Jacques Bonhomme! You are fond of giving advice and as far as I am concerned, I hate receiving it."
A little later, I met Old Man Mathurin as shiny as a new penny in yellow gloves and patent leather boots. He came up to me with no hard feelings. "Things are going wonderfully well!" he cried, "I have found lenders who are very eager to oblige. Thanks to them, my budget is balanced each year with marvelous ease."
"And, apart from these loans, have you increased your income?"
"Not by a single obole (penny)." 1056
"Have you reduced your expenditure?"
"God forbid! Quite the contrary. Take a look at this suit, this waistcoat, and this top hat! Ah, if you could see my town house, my servants, and my horses!"
"That is wonderful, but let us work it out. If last year you couldn't make ends meet, how are you making them meet now that, without increasing your income, you are increasing your expenditure and have arrears on the loans to pay?"
"Jacques Bonhomme, it is not nice talking to you. I have never met anyone so gloomy."
Nevertheless, the inevitable happened. Mathurin displeased his creditors, who all disappeared. What a cruel situation!
He came to see me. "Jacques, my good friend," he said, "I am in dire straights; what can I do?"
"Rid yourself of all that is superfluous and work hard, live frugally, and at least pay the interest on your debts, and thus arouse the interest of some charitable Jew 1057 in your fate so that he lends you enough to last a year or two. In the meantime, sack any unnecessary staff, move to a modest house, and sell your carriages, and you will gradually restore the state of your affairs."
"Master Jacques, you never change. You cannot give a piece of advice that is agreeable and in line with people's inclinations. Farewell. I will take only my own counsel. I have exhausted my resources. I have exhausted my loans; now I will start to …"
"Don't say it, let me guess."
1049 See Charles Coquelin, "Budget," DEP (1852), vol. 1, pp. 224-35; Alphonse Courtois, "Le budget de 1849" in Annuaire de l'économie politique et de la statistique pour 1850 par MM. Joseph Garnier. 7e année (Paris: Guillaumin, 1850), pp. 18-28; and Alphonse Courtois, "Le budget de 1848" in the Annuaire de l'économie politique et de la statistique pour 1848. 5e Année (Guillaumin, 1848), pp. 29-51.
1050 See the glossary entries on "Louis Blanc", "The Luxembourg Palace", and "The National Workshops."
1051 Louis-Antoine Pagès (Garnier-Pagès) (1803-1878) was a stock broker, republican politician, Mayor of Paris (February-March, 1848), and then Minister of Finance in the Provisional Government (March-May, 1848). As Minister of Finance he introduced the unpopular "45 centime" tax in order to balance the budget which was collapsing in the aftermath of the Revolution.
1052 See, Louis-Antoine Garnier-Pagès, Un épisode de la Révolution de 1848. L'impot de 45 centimes (Paris: Pagnerre, 1850), pp. 116-18 and 119 ff. and Garnier-Pagès, Histoire de la Révolution de 1848. Deuxième édition. (Paris: Pagnerre, 1861-1872).10 vols. Vol. IV. Gouvernement provisoire I. (1866), chap. I on the government's financial problems.
1053 See Louis Blanc's speech from 26 April in La Révolution de février au Luxembourg (Paris: Michel Lévy, 1849), Exposé général (26 avril 1848), Deuxième partie, pp. 91-92; and his summary in Pages d'histoire de la révolution de février 1848 (Paris: Bureau du Nouveau Monde, 1850), p. 82.
1054 "To Citizens Lamartine and Ledru-Rollin", Jacques Bonhomme , no. 3, 20-23 June 1848, CW1, pp. 444-45.
1055 See the glossary entry on "Jacques Bonhomme (person)."
1056 An "obole" was a coin of very low value. Traditionally, the relative value of coinage before the introduction of the France was 240 denier = 20 sol = 1 livre. An obole was a small fraction of a denier (sometimes 1/2).
1057 Bastiat uses the expression "quelque juif charitable" (some charitable Jew). This is one of the very few instances in Bastiat's writings of the casual anti-semitism which was quite common in 19th century France.
T.219 (1848.06.20) "To Citizens Lamartine and Ledru-Rollin" (JB, June 1848) (missing)↩
SourceOC, vol. 7, p. 246. Jacques Bonhomme, no.3, 20-23 June 1848.
Editor’s Introduction(to come)
TextDissolve the national workshops. Dissolve them with all the care that humanity requires, but dissolve them.
If you want a reborn confidence, dissolve the national workshops.
[445]If you want production to revive, dissolve the national workshops.
If you want shops to empty and fill, dissolve the national workshops.
If you want factories to reopen, dissolve the national workshops
If you want the countryside to become peaceful, dissolve the national workshops.
If you want the National Guard to have some rest, dissolve the national workshops.
If you want the people to bless you, including one hundred thousand workers out of the one hundred and three thousand in these workshops, dissolve the national workshops.
If you have not concluded that the stagnation of business followed by the stagnation of employment, followed by poverty, followed by starvation, followed by civil war, followed by desolation will become the Republic’s funeral procession, dissolve the national workshops.
If you have not decided to ruin the finances, crush the provinces, and exasperate the peasants, dissolve the national workshops.
If you do not want the entire nation to suspect you of deliberately having the specter of riots hanging over the National Assembly, dissolve the national workshops.
If you do not want to starve the people after having demoralized them, dissolve the national workshops.
If you do not want to be accused of having imagined a means of oppression, fright, terror, and ruin which exceeds anything the greatest tyrants have ever invented, dissolve the national workshops.
If you do not have the ulterior motive of destroying the Republic by making it hated, dissolve the national workshops.
If you do not want to be cursed in the present and if you do not want your memory to be reviled from generation to generation, dissolve the national workshops.
If you do not dissolve the national workshops, you will draw down onto the country every plague simultaneously.
If you do not dissolve the national workshops, what will happen to the workers when you have no more bread to give them and private production is dead?
If you retain the national workshops with sinister intent, posterity will say of you, “It was doubtless by cowardice that they proclaimed the Republic, since they killed it by treason.”
abc
T.
T.220 (1848.07.24) "Property and Plunder" (JDD, July 1848)↩
SourceT.220 (1848.07.24) "Property and Plunder" (Propriété et spoliation) (5 letters to the editor and a reply to Considerant, 24-28 July, 1848.) Journal des Débats, 24 July 1848, p. 1; also published as a pamphlet, Propriété et spoliation (Property and Plunder), ed. Prosper Paillottett (Paris: Guillaumin, 1850). [OC4, pp. 394-441.] [CW2.10, pp. 147-84.]
Editor's Note[to come]1
TextFirst Letter
The National Assembly has been set an immense question, the answer to which is of the greatest interest to the prosperity and peace of France.2 A new right is knocking on the door of the Constitution: the right to work. Not only is it demanding a place for itself, but also it claims to take, in all or in part, the place of the right to property.
M. Louis Blanc has already provisionally proclaimed this new right with the success we have seen.3
M. Proudhon claims the right to work in order to put paid to property.
M. Considérant claims it in order to strengthen it by making it legitimate.
Thus, according to these political writers, property carries within it something that is unjust and wrong, a germ of death. I pretend to demonstrate that it is truth and justice itself and that what it carries within itself is the very basis of progress and life.
[148]They appear to believe that, in the combat about to take place, the poor have an interest in the triumph of the right to work and the rich in the defense of the right to property. I believe I can prove that property rights are essentially democratic and that everything that denies or violates them is fundamentally aristocratic and anarchical.
I hesitated to ask for space in a journal for a dissertation on social economy. The following may perhaps justify this attempt:
First of all, there is the seriousness and topicality of the subject.
Second, MM Louis Blanc, Considérant, and Proudhon are not merely political writers. They are also the heads of schools with a number of enthusiastic disciples, as is shown by their presence in the National Assembly. Their doctrines today exercise considerable influence, which I think disastrous, on the world of business; and, what is no less serious, they may be strengthened by concessions at odds with the orthodoxy of the masters of political economy.
Last, and why should I not admit it, something in the depths of my conscience tells me that at the heart of this burning controversy it might be given to me to cast an unexpected ray of light to illuminate the terrain on which the schools most in opposition may sometimes be reconciled.
This is enough, I hope, for these letters to be accepted by their readers.
First of all, I have to set out the criticism made of property.
In short, this is how M. Considérant explains it. I do not think I am distorting his theory by summarizing it.4
All men legitimately possess the thing that their activity has created.
They may consume it, give it, exchange it, and transmit it without any person, even the whole of society, having any concern with it.
Landowners therefore legitimately possess not only the products they have created on the land but also the added value they have given to the land itself through farming.
However, there is one thing that they have not created, which is the fruit of no work, and that is the ground in its natural state, the original capital and the productive power of the agents of nature. However, landowners have taken over this capital. In this lie usurpation, confiscation, injustice, and constant illegitimacy.
[149]The human race has been put on this globe in order to live and develop itself. The species is therefore the usufructuary of the surface of the globe. However, this surface has now been confiscated by the minority at the expense of the majority.
It is true that this confiscation was inevitable, for how can it be cultivated if each person can exercise, as he sees fit and in total freedom, his natural rights, that is to say, the rights of savagery?
We should therefore not destroy property but legitimize it. How? We should do it by recognizing the right to work.
In fact, savages exercise their four rights (to hunt, fish, grow crops, and graze animals) only provided they work. It is therefore under the same proviso that society owes the proletariat the equivalent of the usufruct of which it has robbed them.
To sum up, society owes all the members of humanity, on condition that they work, a wage that puts them in a situation that can be reckoned equally favorable to that of savages.
Property will then be legitimate from all points of view, and the poor and the rich will be reconciled.
This is M. Considérant’s entire theory.5 He asserts that this question of property is very simple, since it can be solved with just a little common sense, but nevertheless no one before him had understood it at all.
This is not much of a compliment to the human race, but in compensation I can only admire the extreme modesty expressed in the author’s conclusions.
What in effect is he asking of society?
[150]That it acknowledge the right to work as equivalent for humanity’s well-being to a usufruct of the land in its natural state.
And what value does he place on this equivalent?
He reckons it equivalent to the level at which the land in its natural state can keep savages alive.
Since there is approximately one inhabitant per square league, the owners of land in France can certainly legitimize their usurpation at very little cost. All they have to do is to undertake that thirty to forty thousand nonowners will continue to live side by side with them at the full level of the Eskimos.
But what am I saying? Why are we talking about France? In this system there is no longer any France and no longer any national property, since the life tenancy of the land belongs as of right to the whole human race.
Besides, I have no intention of examining M. Considérant’s theory in detail, since that would take me too far. I wish only to attack what is weighty and consequential at the core of this theory, that is to say, the question of rent.
M. Considérant’s system can be summarized thus:
An agricultural product exists through the combination of two actions:
The action by a man, or work, which creates the right to property,
And the action of nature, which ought to be free and which landowners can arrange to be turned unjustly to their advantage.
This is what constitutes the usurpation of the rights of humanity.
If, therefore, I were to prove that men, in the course of their transactions, are mutually paid only for their work and that they do not contrive to have the action of nature included in the price of the items being exchanged, M. Considérant should consider himself to be totally satisfied.
M. Proudhon’s complaints against property are absolutely identical.6 “Property,” he says, “will cease to be abusive through the mutual sharing of services.” Therefore, if I demonstrate that men exchange only services with each other, never charging each other a sou for the use of the forces of nature that God has given to everyone free of charge, M. Proudhon, for his part, should agree that his utopia has been achieved.
These two political writers are not entitled to claim the right to work. It does not matter that they consider this famous right in such a diametrically [151] opposed light that, in M. Considérant’s view, it ought to legitimize property while according to M. Proudhon it ought to put paid to it. It is still true that there will no longer be any question of this right, provided that it is clearly proved that, under the regime of property, men will exchange hardship for hardship, effort for effort, work for work, and service for service, with the contribution made by nature always provided in addition to the bargain struck, so that the forces of nature, intended to be free of charge, continue to be free of charge through all human transactions.
We can see that what is being contested is the legitimacy of rent, since it is supposed that this is, in whole or in part, an unjust payment that the consumer makes to the landowner, not for a personal service but for the advantages supplied by nature free of charge.
I have said that modern reformers can base themselves on the opinion of the leading economists.7
In fact, Adam Smith says that rent is oft en a reasonable interest payment for the capital spent on improving the land, and also that this interest is oft en just a part of the rent.
To which McCulloch makes this positive declaration:
That which is properly called rent is the sum paid for the use of the forces of nature and the inherent power of the land. It is totally distinct from the sum paid for the buildings, fences, roads, and other improvements made to the land. Rent is therefore always a monopoly.
Buchanan goes so far as to say that “rent is a part of the revenue from consumers that goes into the pockets of landowners.”
Ricardo says:
A part of the rent is paid for the use of the capital that has been used to improve the quality of the land, constructing buildings, etc.; the rest is paid for the use of the latent and indestructible powers of the land.
Scrope says:
The value of the land and the ability to draw a rent from it are the result of two circumstances: 1. the appropriation of its natural powers, and 2. the work devoted to improving it.
[152]With regard to the first circumstance, rent is a monopoly. It is a restriction to the usufructor of the gift s that the Creator has made to men to satisfy their needs. This restriction is just only to the extent that it is necessary for the common good.
Senior says:
The instruments of production are labor and the agents of nature. Once the agents of nature are appropriated, landowners have themselves paid for their use in the form of rent, which is compensation for no sacrifice whatever and is received by those who have neither worked nor made any advance payments, but who limit themselves to holding out their hands to receive the offerings of the community.
After having said that part of rent is the interest on capital, Senior adds:
The rest is taken by the owner of the agents of nature and consists of his reward, not for having worked or saved but simply for not having kept to himself what he could have kept to himself and for having allowed the gift s of nature to be used by others.
Certainly, when entering into an argument with men who proclaim a doctrine that is specious in itself, which is likely to give rise to hopes and favorable reactions from the suffering classes and which is based on authorities like these, it is not enough to close your eyes to the seriousness of the situation. It is not enough to cry disdainfully that you are facing dreamers, utopians, people that are crazy, or even members of factions. You have to study the question and settle it once and for all. It is worth a moment of dull work.
I believe that it will be settled satisfactorily for all if I prove that property not only leaves those that are labeled the proletariat the free usufruct of the agents of nature but even increases it by ten or a hundredfold. I dare to hope that the result of this demonstration will be a clear view of a few harmonies likely to satisfy intelligent minds and calm the pretensions of all the schools of economists, socialists, or even communists.8
Second Letter
What inflexible power logic has!
Rough conquerors share an island. They live from rent in leisure and luxury among hard-working and poor vanquished people. According to political economy, there is, therefore, a source of value other than work.
This being so, political economy sets about breaking down rent and floats this theory on the world:
“Rent is partly interest on capital spent. Another part stems from the monopoly of the agents of nature that have been usurped and confiscated.”
This strain of political economy from the English school very rapidly crossed the Channel. Socialist logic caught hold of it and told the workers, “Watch out! There are three elements in the price of the bread you eat. There is the labor of the workers, you owe them for this; there is the work of the landowners, you owe them for this; and there is the work of nature, for which you do not owe anything. What is being taken from you under this heading is a monopoly, as Scrope says; it is a tax imposed on the gift s that God has given you, as Senior says.”
Political economy sees the danger of this distinction. In spite of this, political economy does not withdraw it but explains it: “True, in the social mechanism the role of the landowner is useful and necessary. People work for him and he pays them with the heat of the sun and the coolness of the dew. This has to be the way; otherwise there would be no crops grown.”
“Never mind that,” logic replies; “I have a thousand types of organization in reserve with which to eliminate injustice, which incidentally is never necessary.”
Therefore, because of a false principle gathered from the English school, logic has breached landownership. Will it stop there? Do not be too ready to believe this. It would not be logic if this were so.
As logic said to farmers, “The law governing plant life cannot be property and generate profit”; it will say to manufacturers of woolen cloth, “The law of gravity cannot be property and generate profit.”
To manufacturers of cotton sheeting, “The law of the elasticity of steam cannot be a property and generate profit.”
To ironmasters, “The law of combustion cannot be property and generate profit.”
[154]To seamen, “The laws of hydrostatics cannot be property and generate profit.”
To roofers, carpenters, and lumberjacks, “You use saws, axes, and hammers; you also contribute to your work the hardness of bodies and the resistance of environments. These laws belong to everyone and should not generate profit.”
Yes, logic will go this far at the risk of overturning the entire system of society. Once it has denied landownership, it will deny the productivity of capital, continuing to use as its basis the fact that landowners and capitalists are charging payment for the use of the force of nature. For this reason it is important to prove that logic is starting from a false premise, that it is not true that in any art, trade, or industry the forces of nature are being charged for and that in this respect agriculture is not receiving special treatment.
There are things that are useful without any work intervening, such as the earth, the air, water, the light and heat of the sun, and the materials and forces that nature provides.
There are others, which become useful only because work has been carried out on these materials and has taken over these forces.
Utility is therefore sometimes due to nature alone, sometimes due to work alone, but nearly always due to the combined activity of work and nature.
Let others lose their way in definitions. For my part, I understand utility to be what everyone understands by this word whose etymology shows its meaning exactly, namely, that everything that serves a purpose, whether by its nature, by work, or by both, being useful, constitutes utility.
I call value the only part of utility that is communicated or added by work, so that two things are of equal value when those who have worked on them exchange them freely with each other. The following are my reasons for this:
What makes a man refuse an exchange? It is his knowledge that the item being offered to him would require less work from him than the item demanded from him. It is absurd to say to him, “I have worked less than you, but gravity helped me and I have included it in the calculation.” He will reply, “I can also use gravity with work that is equal to yours.”
When two men are isolated, if they work, it is to provide a service to themselves. Where an exchange is involved, each person is providing a service to the other and receives an equivalent service in return. If one of them is helped by some force of nature that is at the disposal of the other, this force will not be included in the bargain as the right to refuse will oppose this.
[155]Robinson hunts and Friday fishes. It is clear that the quantity of fish exchanged for game will be determined by the work involved. If Robinson said to Friday, “Nature goes to a lot more trouble in making a bird than a fish, so give me more of your work than I will give you of mine since I am trading you in return a greater effort by nature. . . .” Friday would not fail to reply, “It is no more up to you than me to judge the efforts of nature. What should be compared is your work to mine, and if you wish to establish our relationship on the footing that I will work more than you on a regular basis, I will start to hunt and you can fish if you want to.”
You can see that the generosity of nature in this hypothesis cannot become a monopoly unless violence is involved. You can also see that, while it is a significant factor in utility, it is not a factor in value.
I have pointed out in the past that metaphors are an enemy of political economy. Here I accuse metonymy of the same misdeed.9
Are people using language accurately when they say, “Water is worth two sous”?
It is said that a famous astronomer could not bring himself to say, “Ah, what a fine sunset!” Even in the presence of ladies he cried, in a strange form of enthusiasm, “Ah, what a fine sight is the rotation of the earth when the sun’s rays strike it tangentially!”
This astronomer was accurate and ridiculous. An economist would be no less ridiculous if he said, “The work needed to go to fetch water from the spring is worth two sous.”
The strange character of the paraphrase does not prevent its accuracy.
In effect, water is not worth anything. It has no value although it is useful. If we all had a constant spring near our doorstep, obviously water would have no value because it would not give rise to any exchange. But if it is a quarter of a league away and you have to go to fetch it, this is work and here you have the origin of value. If it is half a league away, it is double the work and therefore double the value, although its utility remains the same. In my view, water is a free gift of nature on condition that you go to fetch it. If I do it for myself, I am doing myself a service involving some work. If I entrust this to another, I am giving him the bother and I owe him a payment for service rendered. There are thus two occasions of work and two services that have to be compared and discussed. The gift of nature continues to be free. [156] In fact, I consider that the value lies in the work and not in the water and that metonymy is being used as much when people say, “Water is worth two sous” as when they say, “I have drunk a bottle.”
Air is a free gift of nature and has no value. Economists say, “It has no exchange value, but it has a use value.” What language! Well, sirs, have you made it your work to turn people off science? Why not simply say, “It has no value, but it is useful.” It is useful because it serves a purpose. It has no value because nature has done everything and work nothing. If work has not entered into it, no one has any service to return, receive, or pay for. There is no effort involved nor any exchange to be made. There is nothing to compare; therefore there is no value.
But if you enter a diving bell and entrust a man with transmitting air to you by using a pump for two hours, he will be exerting himself by providing you with a service and you will have to pay for this. Will you be paying for the air? No, you will be paying for the work. Therefore, has the air acquired value? You can say so to abbreviate, if you like, but do not forget that it is metonymy. The air remains free and no human intelligence is capable of attributing value to it. If it has a value, it is that measured by the effort taken compared with the effort required to make the exchange.
A launderer is obliged to dry washing in a large building using the action of fire. Another is content to hang it out in the sun. This launderer takes less trouble; he is not nor can he be as demanding. He therefore does not make me pay for the heat of the sun’s rays and I, as the consumer, benefit from this.
Therefore the major economic law is this:
Services are traded for other services.
Do ut des; do ut facias; facio ut des; facio ut facias (do this for me and I will do that for you). This is very trivial and common but is nonetheless the beginning, the middle, and the end of political economy.10
[157]From these three examples we can draw the following general conclusion: the consumer pays for all the services received by him, all the trouble he is saved, and all the work he generates, but he enjoys free of charge the free gift s from nature and its powers that the producer has put to use.
Here are three men who have placed air, water, and heat at my disposal with only their work being paid for.
What then has been able to make people think that farmers who also make use of the air, water, and heat are making me pay the so-called intrinsic value of these agents of nature? That they are charging me alike for utility created and utility not created? That, for example, the price of wheat sold at 18 francs is broken down as follows:
12 | fr. for the actual work | } | legitimate property |
3 | fr. for the preceding work | } | |
3 | fr. for the air, rain, sun, and plant life, which are illegitimate property? |
Why do all the economists in the English school believe that this last element has crept surreptitiously into the value of wheat?
Third Letter
Services are traded for other services. I am obliged to make a heroic effort to resist the temptation of showing how simple, true, and fertile this axiom is.
Faced with it, what are all these subtle notions, use-value and exchange-value, material and immaterial products, or the productive and unproductive classes? Industrialists, lawyers, doctors, civil servants, bankers, merchants, seamen, soldiers, artists, workers, whichever of these we are, with the exception of rapacious men, we provide and receive services. However, as these mutual services are commensurate only with each other, it is in them alone that value resides and not in the free material and the free agents of nature they set in motion. Let nobody say, therefore, as is currently fashionable, that merchants are parasitical intermediaries. Does he or does he not have to make an effort? Does he or does he not save us work? Does he or does he not provide us with services? If he provides services, he creates value just as much as the manufacturer does.11
[158]Just as the manufacturer by means of his steam engine uses the weight of the atmosphere and the expansion of gas to turn his thousand spindles, the merchant uses the direction of the wind and the fluidity of water to transport his products. But neither of these makes us pay for the forces of nature since the more they are assisted the more they are obliged to lower their prices. These things therefore remain what God wanted them to be, a free gift for the whole of humanity, except for the work put in.
Is this not equally true for farming? This is what I have to examine.
Let us suppose that there is a huge island inhabited by a few savages. One of these has the bright idea of concentrating on growing crops. He prepares for this at length as he knows that the enterprise will take up a great many days of work before it shows the slightest yield. He gathers provisions and manufactures crude instruments. At last he is ready and fences and clears a tract of land.
Two questions arise:
Does this savage contravene community rights?
Does he contravene his own interests?
Since there is a hundred thousand times more land than the community is capable of cultivating, he no more contravenes its interests than I contravene those of my fellow countrymen when I take a glass of water from the Seine to drink or a cubic foot of air from the atmosphere to breathe.
He does not contravene his own interests either. On the contrary, since he no longer hunts or hunts less, his companions have proportionally more space. What is more, if he produces more crops than he can consume, he will have a surplus to trade.
In trading, will he be exercising the slightest pressure on his fellow men? No, because they will be free to accept or refuse.
Will he be charging for the contribution of the earth, sun, and rain? No, because everyone, like him, has recourse to these agents of production.
Should he wish to sell his tract of land, what could he obtain for it? The equivalent of his work, that is all. If he said, “First of all, give me as much of your time as I have devoted to the operation and then another amount of your time for the value of the land in its natural state,” people would answer, “There is land in its natural state next to yours; I can only repay you for your [159] time, since, for an equal amount of time, nothing stops me from putting myself in a position similar to yours.” This is exactly the reply we would give to the water carrier who asks us for two sous for the value of his service and two for the value of the water, from which we can see that the earth and water have this in common: both are very useful but neither has any value.
If our savage wished to rent out his land, he would never obtain anything other than payment for his work in another form. The more exaggerated of his demands would always meet this inexorable reply, “There is more land on the island,” a reply more decisive than that of the miller of Sans-Souci,12 “There are judges in Berlin.”13
Thus, at least at the beginning, the landowner who either sells the products of his land or his land itself or leases it is doing nothing more than provide and receive services on an equal footing. It is the services that are compared, and consequently have value, the value being attributed to the land only by abbreviation or metonymy.
Let us see what happens as the island becomes increasingly populated and farmed.
It is quite clear that the ease of procuring raw materials, subsistence, and work is increasing for everyone, without privileged advantage for anyone, as we can see in the United States. There, it is absolutely impossible for landowners to put themselves in a position that is more favorable than that of other workers since, because of the abundance of land, each person has the choice of taking up agriculture if it becomes more lucrative than other jobs. [160] This freedom is enough to maintain the balance between services. It is also enough to ensure that the agents of nature, used in a great many industries as well as in agriculture, do not benefit producers as such but the general public who are the consumers.
Two brothers take leave of each other; one is going whaling, the other to clear land in the far west. They then trade oil for wheat. Does one take the value of the land more into account than the value of the whale? Comparison can be made only between services received and given. These services therefore are the only ones to have value.
This is so true that, when nature has been very generous with regard to the soil, that is to say, when the harvest is plentiful, the price of wheat decreases and it is the fisherman who benefits from this. When nature is generous with produce from the ocean, in other words, when catches are large, oil is cheap and farmers benefit from this. Nothing proves better that the free gift s of nature remain free for the masses than the fact that producers who bring goods to market are paid solely for the service they provide in doing so.
Therefore, for as long as there is an abundance of uncultivated land in the country, the balance will be maintained between mutual services; and any exceptional advantage to the landowner will be refused.
This would not be so if landowners succeeded in prohibiting any new land clearance. In this case, it is perfectly clear that they would be laying down the law to the rest of the community. As the population is growing, the need for subsistence is increasingly being felt and it is clear that they would be in a position to have their services remunerated at a higher price, which in normal speech would be expressed by the metonymy, land has increased in value. However, the proof that this iniquitous privilege would be conferring an artificial value, not to the matter but to the services, is the situation we are witnessing in France and in Paris itself. Through a procedure similar to the one we have just described, the law limits the number of brokers, currency exchange agents, notaries, and butchers, and what is the result? By enabling them to put a high price on their services, it creates for their benefit a capital that is not included in any material. The need for brevity produces the following statement, “This project, this practice, or this patent is worth so much,” and the metonymy is obvious. The same applies to the land.
We have reached the final hypothesis, that in which the land in the entire island is subject to individual appropriation and farming.
[161]In this case, it appears that the relative position of the two sectors will change.
In effect, the population continues to grow. It will take up all the occupations except for the one that has been filled. The latter’s owner will then operate the law of trade! What limits the value of a service is never the goodwill of the person supplying it; it is when the person to whom it is being offered can either do without it, supply it himself, or ask for it from others. The propertyless man no longer has any of these alternatives. In former times, he would say to a landowner, “If you ask me for more than the payment for your work, I will grow my own crops!” and the landowner would be forced to give way. These days, a landowner would reply, “There is no more land in the country.” Thus, whether we see value in things or in services, farmers will take advantage of the lack of any competition and, like landowners, will lay down the law to sharecroppers and farm laborers and in the long run to everyone.
This new situation has obviously one single cause, the fact that those who do not own land can no longer stem the demands of those that do by stating, “There is still land left to clear.”
What, therefore, is needed to ensure that the balance between services is maintained and that the situation according to the current hypothesis immediately concurs with that of the previous one? One single thing: that another island rises up next to our island, or even better new continents that are not totally covered by agriculture.
If this happened, production would continue to develop and be distributed in fair proportions between agriculture and other industries without any possible oppression on either side, since if landowners said to craftsmen, “I will sell you my wheat at a price that exceeds the normal payment for the work,” craftsmen would be quick to reply, “I will work for the landowners on the continent who are unable to make such demands.”
Once this situation has happened, the proper guarantee for the masses lies in free exchange, that is, in the right of labor.14
[162]The right of labor constitutes freedom and property. Craftsmen are the owners of their labor, their services, or the price they earn from them in the same way that landowners own the soil. So true is this that, by virtue of this right, craftsmen can exchange their labor and services around the world for agricultural products and are bound to keep landowners in the position of equality I have previously described in which services are exchanged for other services, without the possession of the land itself conferring any more of a benefit independently of the land’s being put to work than does the ownership of a steam engine or the simplest tool.
However, if by usurping legislative power, landowners prohibit the landless farm laborers15 from working away from the land in return for subsistence, the equilibrium between services is broken. Out of respect for accuracy in political economy, I will not say that in this way they are artificially increasing the value of the land or agents of nature, but I will say that that they are artificially increasing the value of their services. With less work themselves, they are buying more work. They are committing oppression. They are behaving like all the monopolists with patents. They are behaving like all the landowners in the earlier period who prohibited land clearance. They are introducing into society a cause of inequality and poverty. They are changing the notions of justice and property and are digging an abyss under their feet.16
But what relief can nonlandowners draw from the proclamation of the right to work? How does this new right increase subsistence or the work distributed to the masses? Are not all forms of capital devoted to making work for people? Do they increase by passing through the coffers of the state? When it purloins capital from the people through taxes, does the state not eliminate as many sources of work on the one hand as it opens up on the other?
Furthermore, in whose favor are you claiming this right? According to the theory that revealed it to you, it would be to the advantage of anyone who no longer has a share in the usufruct of the land in its original state. But bankers, merchants, manufacturers, lawyers, doctors, civil servants, artists, [163] and craftsmen are not landowners. Do you mean that those who own the land will all be required to provide work for all these citizens? But all participants create openings for one another. Is it your view that only the rich, whether landowners or not, have to come to the assistance of the poor? In this case, what you are talking about is assistance and not a right that takes its source from an appropriation of the land.
With regard to rights, the one that has to be insisted on, because it is incontestable, rigorous, and sacred, is the right to work. It is freedom and ownership, not only of the land but also of bodily strength, intelligent minds, faculties, and personality, that are violated if one class can forbid to others the free exchange of services, both domestic and foreign. As long as this freedom exists, landownership is not a privilege; like all the others, it is just the ownership of a form of work.
I need only to deduce a few consequences of this doctrine.
Fourth Letter
The physiocrats used to say, “Only the land is productive.” Certain economists have said, “Only work is productive.”
When you see laborers bent over the furrow that they drench with their sweat, you can scarcely deny their contribution to the work of production. On the other hand, nature never rests. And the ray of sunshine that pierces the clouds and the clouds that the wind chases away and the wind that brings rain and the rain that dissolves fertilizing substances and these substances that develop the mystery that is life in young plants—all the known and unknown powers of nature—prepare the harvest while laborers seek solace from their weariness in sleep.
It is therefore impossible not to recognize that work and nature join forces in accomplishing the phenomenon of production. Utility, which is the basis on which the human race survives, results from this cooperation, and this is as true of almost all forms of industry as it is of agriculture.
However, in the exchanges carried out between men, there is one thing only that is and can be compared, and that is human labor, the services received and rendered. These services alone are mutually commensurable and therefore they alone can elicit payment. In them alone lies value and it is precisely accurate to say that in the final analysis man is the sole owner of his own work.
As for the portion of utility due to the contribution of nature, although [164] this is genuine, although it is immensely greater than anything that man can accomplish, it is free. It is transmitted from hand to hand over and above the market and is properly speaking without value. And who could assess, measure, and determine the value of the natural laws that, since the world began, have acted to produce an effect when work solicits them? With what should they be compared? How should we evaluate them? If they had a value, they would be included in our accounts and inventories; we would have ourselves reimbursed for their use. And how could we manage to do this, since they are at the disposal of all under the same condition, that of work?17
Thus all useful production is the work of nature, which acts free of charge, and of labor, which is paid for.
However, in achieving the production of a given utility, these two elements, human labor and the forces of nature, are not in fixed and immutable proportions. Far from it. Progress consists in ensuring that the proportion of the contribution from nature increases constantly and reduces in the same proportion that of human work by taking its place. In other words, for a given quantity of utility, the free cooperation of nature increasingly tends to replace the burdensome cooperation of work. The common portion grows at the expense of the portion remunerated and appropriated.
If you had to transport a burden weighing one hundred kilograms from Paris to Lille without the intervention of any force of nature, that is to say, on the backs of men, you would need one month of hard labor. If, instead of taking this work on yourself, you gave it to another person, you would have to compensate him for an equal effort; otherwise he would not do it. The sled came on the scene, followed by the cart and then the railway. At each stage of progress part of the work is entrusted to the forces of nature with a corresponding reduction of the labor to be taken or paid for. Well, it is clear that any remuneration eliminated is a victory, not in favor of the person providing the service but of him who receives it, that is to say, the human race.
Before the invention of printing, a scribe could not copy the Bible in less than one year, and that was the measure of the remuneration he was entitled to claim. Today we can procure a Bible for five francs, which is scarcely the reward for one day’s work. The free forces of nature have thus taken the [165] place of paid force in the proportion of 299 parts out of 300. One part still represents human labor and remains personal property; 299 parts represent the contribution of nature, no longer paid for, and consequently are relegated to that which is free and common.
There is no tool, instrument, or machine that does not result in reducing the contribution of human labor, which can be seen either as the value of the product or as the basis of property.
This observation, which I agree is only imperfectly set out here, ought to rally the schools of thought, which so bitterly divide the arena of public opinion today, on the common ground of property and liberty.
Each school can be summarized in one axiom:
- Economists’ axiom: laissez-faire, laissez-passer.
- Egalitarians’ axiom: the mutuality of services.
- Saint-Simonians’ axiom: to each according to his ability, to each ability according to its works.
- Socialists’ axiom: the equal sharing of capital, talent, and work.
- Communists’ axiom: the common ownership of goods.
I will indicate (for I cannot do otherwise here) that the doctrine set out in the preceding lines meets all these priorities.
Economists. It is scarcely necessary to prove that economists are obliged to welcome a doctrine that comes so obviously from Smith and Say and is only a consequence of the general laws they discovered. Laissez-faire, laissez-passer,18 is summarized by the word freedom, and I ask whether it is possible to conceive the notion of property without freedom. Am I the owner of my work, faculties, or physical powers if I cannot use them to provide services voluntarily undertaken? Do I not need to be free either to exercise my forces in isolation, which involves the need for exchange, or to join them with those of my fellows, which is association or exchange under another form?
And if freedom is hampered, is not property itself assailed? On the other hand, how will mutual services all have their full relative value if they are not exchanged freely and if the law forbids labor from being drawn to those best remunerated? Property, justice, equality, and the proper balance of services can obviously result only from freedom. It is also freedom that causes the contribution made by the forces of nature to become a common benefit, for [166] as long as a legal privilege grants me the exclusive exploitation of one of nature’s powers, I ensure that I am remunerated not only for my work but also for the use of this power. I know how fashionable it is today to curse freedom. The century appears to have taken seriously the ironic refrain of our great songwriter:
- My heart in a burst of hatred
- Has taken its freedom.
- To hell with freedom!
- Down with freedom!19
For my part, since I have always instinctively loved freedom, I will always defend it through reason.
Egalitarians. The mutuality of services they aspire to is exactly that resulting from a property-owning regime.
In appearance, men are the owners of the whole, the entire thing, of all the utility that this thing holds. In reality, they own only its value, that portion of utility communicated by work, since by selling it they can obtain payment only for the service they are providing. The representative of the egalitarians condemned property from the rostrum recently, restricting this word to what he called usury, the use of the soil, money, houses, credit, etc. But this usury is production and cannot be anything other than production. Receiving a service implies the obligation of reciprocating it. It is in this that the mutuality of services exists. When I lend something I have produced by the sweat of my brow and from which I might draw benefit, I am providing a service to the borrower, who also owes me a service. He will not provide me with one if he limits himself to giving me back the thing one year later. During this interval, he would have benefited from my labor to my detriment. [167] If I obtained payment for something other than my work, the objection of the egalitarians would be specious. But this is not so. Therefore, once they are assured of the truth of the theory set out in these articles, if they are consistent, they will join us to support property and claim what completes or rather what constitutes it, freedom.
Saint-Simonians. To each according to his ability, to each ability according to its works.
This is also what the property-owning regime achieves.
We provide each other with services mutually, but these services are not proportional to the length or intensity of the work. They are not measured using a dynamometer or chronometer. Whether I have been busy for one hour or one day, it is of little concern to the person to whom I provide my service. What he looks at is not the trouble I go to but the trouble I save him.20 To save effort and time, I seek to obtain help from some power in nature. As long as no one except me is capable of taking advantage of this power, I am giving others, for an equal amount of time, more output than they could provide for themselves. I am well paid and grow rich without damaging anyone. The natural power is used for my benefit alone and my ability is remunerated. To each according to his capacity. However, my secret is soon divulged. Imitators take over my process and competition obliges me to reduce my demands. The price of the product is decreased until my work receives only the normal pay for any similar work. The natural power is not thereby lost; it escapes my control but is recuperated by the entire human race which, from now on, will gain equal satisfaction from less work. Whoever exploits this power for his own use will need to take less trouble than in former times, and consequently anyone who exploits it on behalf of others will be entitled to less payment. If he wishes to increase his well-being, he will have no other option than to increase the amount of his work. To each ability according to its works. In the end, it is a question of working better or working more, which is the literal translation of the axiom for followers of Saint-Simon.
Socialists. The equal sharing of capital, talent, and work.
Equitable sharing results from the law: Services are exchanged for other services, provided that these exchanges are free, that is to say, provided that property is acknowledged and respected.
[168]First of all, it is perfectly clear that the person with the most talent provides more services for a given amount of work. From this it follows that he is readily paid more handsomely.
As for capital and labor, this is a subject that, I regret, I cannot discuss in detail here, since no other has been presented to the general public under more false and disastrous colors.
Capital is oft en represented as a devouring monster, as the enemy of labor. In this way, an irrational sort of antagonism has been fostered between two powers that, basically, have the same origin and the same nature and that contribute to and help each other and cannot do without each other. When I see labor growing angry with capital, I seem to be seeing starvation rejecting food.
I define capital thus: materials, instruments, and provisions, whose use is free, let us not forget, to the extent that nature has contributed to producing them and for which only the value, the fruit of work, is paid for.
To execute a useful work, you need materials. If it is at all complicated, you need instruments. If it takes a long time, you need provisions. For example, for a railway line to be built, society must have saved enough means of existence to keep thousands of men alive for several years.
Materials, instruments, and provisions are themselves the fruit of previous work, which has not yet been paid for. Therefore, when previous work and current work are combined for an end, a common work, they pay for each other; there is an exchange of work, an exchange of services in accordance with agreed conditions. Which of the two parties will obtain the better conditions? The one that needs the other less. We are faced here with the inexorable law of supply and demand, and complaining about it is puerile and contradictory. To say that work should be highly paid when there are many workers and a limited level of capital is to say that each person has to be paid all the more when capital resources are smaller.
For work to be in demand and well paid, it is therefore necessary for there to be a great deal of materials, instruments, and provisions in the country, in other words, a great deal of capital.
It follows from this that the basic interest of the workers is that capital should be built up quickly, that as a result of its prompt accumulation, materials, instruments, and provisions should be in active competition. Only this can improve the lot of the workers. And what is the essential condition for the accumulation of capital? It is that each person should be sure of being genuinely the owner, in the fullest sense of the word, of his work and savings. [169] Property, security, freedom, order, peace, and economy are the things that interest everybody—above all and to the greatest extent, the workers.
Communists. In every age, honest and benevolent hearts have been found—Thomas Mores,21 Harringtons,22 and Fénelons—who, distressed by the sight of human suffering and the inequality of living conditions, sought refuge in a communist utopia.
As strange as it may appear, I claim that the regime of property is increasingly achieving this utopia under our very eyes. This is why I said at the start that property is essentially democratic.
On what foundation does humanity live and develop? On everything that serves a purpose, on everything that is useful. Among the useful things, there are those in which there is no human work, air, water, or sunlight. For these, there is a total absence of payment and full communal ownership. There are others that become useful only following a combination of work and nature. Utility can therefore be broken down into parts. One part is provided by labor and only this is to be paid for, has value, and constitutes property. The other part is contributed by the agents of nature, and this remains free of charge and common to all.
Well, of these two forces that contribute to producing utility the second, the part that is free of charge and common to all, is increasingly replacing the first, which requires work and consequently is to be paid for. This is the law of progress. There is no man on earth who does not seek help from the forces of nature, and when he finds it he shares it with the entire human race by proportionally reducing the price of the product.
Thus, in each given product, the portion of utility that is free of charge gradually replaces the other portion which is to be paid for.
The commonly owned base thus tends to surpass the appropriated base in indefinite proportions, and it can be said that within humanity the domain of common ownership is expanding unceasingly.
On the other hand, it is clear that, under the influence of freedom, the portion of utility that remains to be paid for or that can be appropriated tends to be distributed in a way that is, if not rigorously equal, at least in proportion to the services supplied, since these services themselves are the measure of the payment.
It can thus be seen with what irresistible power the principle of property [170] tends to achieve equality between men. First of all, it establishes a common basis that is constantly increased by each stage of progress and with regard to which equality is perfect, since all men are equal in the face of value that has been eliminated, in the face of a utility that has ceased to generate payment. All men are equal in the face of the portion of the price of books that the publisher has eliminated.
Subsequently, with regard to the portion of utility that corresponds to human work, care that must be taken, or skill, competition tends to establish a balance in the flow of payments and all that remains is the inequality that is justified by the actual inequality of the effort, fatigue, work, or skill, in a word, of the services supplied. And apart from the fact that inequality of this sort will always be just, who does not understand that without it all effort would instantly cease?
I can see the objection coming! People will say: “This is an example of economists’ optimism. They live in a world of theory and do not deign to cast a glance at the facts. Where in reality are these egalitarian tendencies? Can we not see all over the world the lamentable sight of opulence side by side with poverty, ostentation with destitution, idleness with fatigue, and satiety with starvation?”
I do not deny this inequality, this destitution, this suffering. Who could deny them? However, I say, “Far from being the result of the principle of property, they can be attributed to the principle of plunder.”
It remains for me to prove this.
Fifth Letter
No, economists do not think that we are in the best of all worlds, as they are reproached for doing. They do not shut their eyes to the afflictions of society nor their ears to the groans of those who suffer. But they seek the causes of these sufferings and believe that they have discovered that among those on which society is capable of taking action, there is none more active or generalized than injustice. This is why what they call for in particular and above all is universal justice.
Men wish to improve their lot; that is their first law. In order for this improvement to take place, a prior task or effort is required. The same principle that propels men toward their well-being also incites them to avoid the effort that is its means. Before addressing their own work, they all too oft en have recourse to the work of others.
[171]We can therefore apply to personal interest what Aesop said of language: nothing on earth has done more good or more evil. Personal interest creates everything that enables men to live and develop themselves; it stimulates work and gives rise to property. But at the same time it introduces to the earth all forms of injustice that, depending on their form, take a variety of names and can be summarized in one word, plunder.
Property and plunder, sisters with the same father, the savior and scourge of society, a genius for good and a genius for evil, powers that, right from the start, have been in conflict over the empire and the fate of the world!
It is easy to use this common origin of property and plunder to explain the facility with which Rousseau and his modern disciples have been able to calumniate and undermine the social order. All they needed to do was to show just one of the aspects of personal interest.
We have seen that men are by nature the owners of their work and that by transmitting this work from one to another they provide mutual services to each other.
This having been said, the general character of plunder consists in employing force or guile to change the equivalent value of services in our favor.
The variations of plunder are boundless, as are the resources of human sagacity. Two conditions are needed for services that are exchanged to be considered legitimately equivalent. The first is that the judgment of one of the contracting parties is not distorted by the maneuvers of the other. The second is that the transaction must be free. If a man succeeds in extorting a genuine service from a fellow man by making him believe that what he is giving him in return is also a genuine service whereas it is in fact illusory, there is plunder. This is all the more true if he has recourse to force.
We are initially led to believe that plunder takes place only in the guise of those forms of theft defined and punished by the Code. If this were so, I would be in effect giving too great a social importance to exceptional events that public conscience condemns and the law punishes. But sad to say, there is plunder that takes place with the consent of the law and that is carried out by the law with the consent and oft en the applause of society. It is this form of plunder alone that can take on enormous proportions sufficient to change the distribution of wealth in the body of society, paralyze for a considerable time the force for leveling which lies in freedom, create permanent inequality in living conditions, open the abyss of destitution, and spread around the world the flood of evil that superficial minds attribute to property. This is the plunder of which I am speaking when I say that it has been in conflict [172] with its opposing principle for empire over the world since the beginning. Let us point out briefly just a few of its manifestations.
First of all, what is war, especially as it was understood in antiquity? Men formed an alliance, the nation as a body, and did not deign to apply their faculties to exploiting nature in order to obtain from it the means of existence. On the contrary, after waiting for other peoples to establish properties, they attacked them with fire and sword and stripped them periodically of their goods. The conquerors then gained not only the booty but also the glory, the songs of poets, the acclaim of women, national reward, and the admiration of posterity! It is true that a regime like this and universally accepted ideas of this nature were bound to inflict a great deal of torture and suffering and result in extreme inequality between men. Is this the fault of property?
Later, the plunderers became more refined. Putting the vanquished to the sword was, in their eyes, to destroy a treasure. Plundering only property was a transitory form of plunder; plundering men along with property was to organize permanent plunder. This led to slavery, which is plunder extended to its ideal limit, since slavery plundered the vanquished of all their current and future property, their work, their arms, their minds, their faculties, their affections, and their entire personality. It can be summarized thus: requiring man to provide all the services that force can wrench from him while rendering him none. This was the state of the world until an era that is not all that far from ours. This was the situation in particular in Athens, Sparta, and Rome, and it is sad to think that it is the ideas and customs of these republics that education is offering for our enjoyment and that we are absorbing through our every pore. We are like the plants that growers force to absorb colored water and that thus receive an artificial tint that cannot be effaced. And then we are surprised that generations educated in this way are incapable of founding an honest republic! Be that as it may, it can be agreed that here there was a cause of inequality that can certainly not be imputed to the regime of property as it has been defined in the preceding articles.
I will pass over serfdom, the feudal regime, and what followed it up to 1789. But I cannot prevent myself from mentioning the plunder exercised for so long through the abuse of religious influence. Receiving positive services from men and supplying them in return only with imaginary, fraudulent, illusionary, and derisory services is to rob them of their consent, it is true, an aggravating circumstance since it implies that the plunderers have begun by perverting the very source of all progress, human judgment. I will [173] not stress this any further. Everybody knows that the exploitation of public credulity through the abuse of true or false religions has placed distance between the priesthood and the laity in India, Egypt, Italy, and Spain. Is this also the fault of property?
We come to the nineteenth century following great social iniquities that have imprinted a profound trace on the soil, and who can deny that time is needed to efface that trace even when through all our laws and relationships we now give prominence to the principle of property, which is none other than freedom, which is none other than the expression of universal justice? We should remember that serfdom these days covers half of Europe, that in France the feudal system received its death blow scarcely half a century ago, that it is in full splendor in England, that all nations are making unheard-of efforts to keep powerful armies in operation, which implies either that they are mutually threatening each other’s property or that these armies are themselves just a large-scale plunder. Let us remember that all peoples succumb to the weight of debts whose origin lies in past folly. We should not forget that we ourselves are paying millions each year to prolong artificially the lives of colonies with slaves and more millions to prevent slave trading along the coasts of Africa (which has involved us in one of our greatest diplomatic problems) and that we are on the point of delivering one hundred million to planters to crown the sacrifices which this type of plunder has inflicted on us in so many forms.23
This is how the past binds us, no matter what we may say. We can disengage ourselves from it only gradually. Is it surprising that there is inequality between men, since the egalitarian principle, property, has been so little respected up to now? Where will the leveling of living conditions that is the ardent wish of our era and that characterizes it so honorably come from? It will come from simple justice, from the achievement of this law: a service in return for a service. In order for two services to be exchanged according to their genuine value, two things are needed by the contracting parties: enlightened judgment and freedom of transaction. If the judgment is not enlightened, people will accept, even freely, derisory services in return for genuine services. It is even worse if force intervenes in the contract.
This having been said, and acknowledging that there exists inequality between men whose causes are historic and that only time will efface, let us see [174] whether our century at least by giving prominence to justice everywhere will finally banish force and guile from human transactions, allow the equivalent nature of services to establish itself naturally, and cause the democratic and egalitarian cause of property to triumph.
Alas! I can see here so many incipient abuses, so many exceptions, and so many direct and indirect deviations appearing on the horizon of the new social order that I do not know where to begin.
First of all, we have privileges of all sorts. No one can become a lawyer, doctor, lecturer, currency exchange agent, broker, notary, solicitor, pharmacist, printer, butcher, or baker without encountering legal prohibitions. These are so many services that you are forbidden to provide; consequently those to whom authorization is given will charge a higher price for them to the extent that this privilege alone, without any work, oft en has a great deal of value. My complaint here is not that guarantees are required from those who supply these services, although truth to tell the effective guarantee is found in those who receive and pay for it. What is also necessary is for these guarantees not to have any exclusivity. You may demand of me that I know what you need to know to be a lawyer or doctor, but do not demand that I should have learned it in a particular town, in so many years, etc.
Next there is the artificial price, the additional value that people try to add to the majority of essential things such as wheat, meat, fabrics, iron, tools, etc., by playing with the tariffs.
Here there is obviously an effort to destroy the equivalence of services, a violent attack on the most sacred of all properties, that of men’s strength and faculties. As I have already shown, when the soil of a country has been successively occupied, if the working population continues to grow, its right is to limit the claims of the landowner by working elsewhere or by importing its subsistence from abroad. This population has only work to give in exchange for products, and it is clear that if the former increases unceasingly, then should the second remain stationary, more work has to be provided in return for fewer products. This effect is shown by the decrease in earnings—the greatest misfortune when it is due to natural causes and the greatest crime when it results from the law.
Next come taxes. Tax-funded jobs have become a highly sought means of livelihood. We know that the number of positions in government services has always increased and that the number of candidates increases faster than the number of openings. Well, where is the candidate who asks himself if he will be providing the public with services equivalent to those he is expecting [175] from them? Is this scourge anywhere near its end? How can we believe it when we see that public opinion itself presses to have everything done by the fictitious being we call the state, which means a collection of salaried agents? After judging all men without exception to be capable of governing the country, we declare them to be incapable of governing themselves. Soon there will be two or three salaried agents around each Frenchman, one to prevent him from working too much, a second to educate him, a third to supply him with credit, perhaps a fourth to hinder his transactions, etc., etc. Where will this illusion, the illusion that has led us to believe that the state is a person with an inexhaustible fortune independent of ours, take us?
People are beginning to realize that the government machine is expensive. But what they do not know is that the burden inevitably falls on them. They are led to believe that although up to now their share has been heavy, the Republic, while increasing the general burden, has the means of at least shifting the greater part of it to the shoulders of the rich. A disastrous illusion! Doubtless the situation may be reached where the tax collector calls upon one person rather than another and physically receives money from the hands of the rich. But all is not at an end once the tax has been paid. Work is done subsequently in society, there are reactions to the respective value of services, and it is unavoidable for this charge not to be distributed to everybody, including the poor, in the long run. The latter’s real interest, therefore, is not that one class alone is afflicted, but that all classes are treated with consideration because of the solidarity that binds them.
Now, are there any signs that the time has come when taxes will be reduced?
I say this most sincerely: I believe that we are going down a path in which, under very gentle, very subtle, and very ingenious aspects, clad in the fine names of solidarity and fraternity, plunder is going to take on dimensions, the extent of which the imagination scarcely dares to envisage. This is how it will appear: under the denomination of the state, the massed group of citizens will be considered a real being with its own life and wealth, independent of the life and wealth of the citizens themselves. Each person will then call upon this fictional being to ask, one for education, one for work, one for credit, one for food, etc., etc. However, the state cannot give anything to citizens unless it has taken it from them to start with. The only effect of this intermediary is first of all a great waste of effort and then the complete destruction of the equivalence of services, for the effort of each person will be devoted to giving as little as possible to the treasury of the state and taking as [176] much from it as possible. In other words, the public treasury will be pillaged. And can we not see something of this sort happening today? Which class is not clamoring for the favors of the state? It appears in itself to be the principle of life. Setting aside the countless hordes of its own agents, agriculture, factories, trade, the arts, theaters, the colonies, and shipping are expecting everything from it. It is required to clear land, irrigate it, set up colonies, teach, and even amuse us. Everyone is begging for a premium, a subsidy, a motivating payment, and above all for certain services, like education and credit, to be free of charge. And why not ask the state to make all services free of charge? Why not require the state to feed, quench the thirst of, provide lodgings for, and clothe all citizens free of charge?
One class had not been included in these mad pretensions,
- One poor servant girl at least remained to me
- Who was not infected with this foul air;24
and that was the people itself, the countless working class. However, here they are now in the crowd. They pay heavily to the treasury; by all that is just and in virtue of the principle of equality, they have the same rights to this universal dilapidation for which the other classes have fired the starting signal. We should profoundly regret that on the day on which their voices were heard it was to demand their share of the pillage and not that it be stopped. But was it possible for this class to be more enlightened than the others? Might it not be excused for being taken in by the illusion that is blinding us all?
However, because of the very fact that the number of applicants for government positions is now equal to the number of citizens, the error I am pointing out here cannot last long and people will soon, I hope, come to ask from the state only the services it is competent to provide: justice, national defense, public works, etc.
We are facing another cause of inequality, which is perhaps more active [177] than all the others, and that is the war against capital. The working class has only one way to free itself, through an increase in the nation’s capital. Where capital increases faster than the population, two results infallibly occur, both of which contribute to improving the lot of the workers: products decrease in price and earnings rise. However, for capital to increase, it must above all have security. If it is frightened, it hides, takes flight abroad, is dissipated, and is destroyed. At this point, production stops and labor is offered at a knockdown price. The greatest of all misfortunes for the working class is therefore to let itself be carried along by beguilers into a war against capital, which is as absurd as it is disastrous. It is a constant threat of plunder, worse than plunder itself.
In short, if it is true, as I have endeavored to show, that freedom, the free disposal of property, and consequently the supreme consecration of the right to property; if it is true, as I have said, that this freedom invariably tends to bring about a just equivalence of services, and little by little equality, to bring everyone closer to the same constantly rising level, it is not property that is responsible for the distressing inequality that can still be seen around the world; it is its opposing principle, plunder, that has triggered wars, slavery, serfdom, the feudal system, the exploitation of public ignorance and credulity, privilege, monopolies, restrictions, public borrowings, commercial fraud, excessive taxes, and lastly the war against capital and the absurd pretension of each person to live and develop at the expense of all.
The following five letters were formally addressed to Le Journal des débats, which is why Bastiat refers to them several times as “the articles.” However, in his mind they were intended as letters to Victor Considérant. In them he explains his notions of rent, services, and value as they will be developed later in Economic Harmonies.
On 17 May 1848 the Constituent Assembly elected an eighteen-member commission to prepare a draft constitution (Considérant was among the members, but so was Tocqueville). It started by elaborating a preamble, the “declaration of rights and duties,” in which the right to work was prominent. The final preamble, though, referred only to the duty of the republic to protect the citizens’ work and to provide work, within the limits of state resources, for the needy.
Written at Blanc’s initiative, the decree of 25 February 1848 stated: “The provisional government guarantees the existence of the worker through work.”
(Bastiat’s note) See the small volume published by M. Considérant titled Théorie du droit de propriété et du droit au travail [Theory of the Right to Property and the Right to Work].
(Bastiat’s note) M. Considérant is not the only one to hold it, as is shown by the following passage taken from The Wandering Jew, by M. Eugène Sue:
Mortification would express better the complete lack of the essentially vital things that an equitably balanced society ought to owe, yes, ought to owe all active and upright workers, since civilization has dispossessed them of any right to the land and they are born with only their arms as sole heritage.
Savages do not enjoy the advantages of civilization, but at least they have as food the animals of the forest, the birds of the air, fish from the rivers, the fruits of the earth, and the trees of the wide forests to give them shelter.
Civilized people, who are despoiled of these gift s of God and who regard property as holy and sacred, may therefore, in return for their hard daily labor that enriches the country, claim a wage that is enough to live healthily, neither more nor less.
Proudhon is best known for his work Qu’estce que la propriété? (1841).
(Paillottet’s note) This proposition is developed in more detail in chapters 5 and 9 of the Economic Harmonies. (OC, vol. 6, p. 140, “De la valeur,” and p. 297, “Propriété foncière.”)
(Paillottet’s note) See the claim from M. Considérant that provoked this first letter at the end of this pamphlet together with F. Bastiat’s reply.
(Paillottet’s note) See chapter 22 of the first series of Sophisms. (OC, vol. 4, p. 115, “Métaphores.”)
(Paillottet’s note) “It is not enough for the value not to be in the material or in the forces of nature. It is not enough for it to be exclusively in services. It is also necessary for the services themselves not to have an exaggerated value. For what difference does it make to a poor laborer if the high price he pays for his wheat is because the landowner has himself paid for the productive powers of the soil or has paid excessively for his intervention?
“It is the job of competition to equalize the services on the basis of justice. It does this constantly.” (An unpublished thought by the author.)
For a more developed treatment of value and competition, see chapters 5 and 10 of Economic Harmonies. (OC, vol. 6, p. 140, “De la valeur,” and p. 349, “Concurrence.”)
(Paillottet’s note) On the question of intermediaries, see, in vol. 5, chapter 6 of the pamphlet What Is Seen and What Is Not Seen, and, in vol. 6, the beginning of chapter 16. (OC, vol. 5, “Ce qu’on voit et ce qu’on ne voit pas,” chap. 6, p. 356, “Les Intermédiaires”; and vol. 6, p. 497, “De la population.”)
See “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 414–15 in this volume.
(Bastiat’s note) We have heard not so long ago a denial of the legitimacy of leasing land. Without going so far, many people find it hard to understand the durable nature of income from capital. “How,” they say, “does capital once formed produce a never-ending income?” Here is an explanation of its legitimacy and durability using this example:
I have a hundred sacks of wheat, which I could use to live on while I carry out useful work. Instead of this, I lend them for one year. What does the borrower owe me? The total restitution of my hundred sacks of wheat. Is this all he owes me? In this case, I will have done him a service without receiving any. He therefore owes me, in addition to the simple restitution of my loan, a service, a payment that will be determined by the laws of supply and demand: this is interest. You can see that at the end of a year, I will have once more one hundred sacks of wheat to lend and so on, eternally. The interest is a small portion of the work that my loan has enabled my borrower to execute. If I have enough sacks of wheat to ensure that the interest is sufficient for me to live, I would be able to be a man of leisure without doing any harm to anyone and it would be easy for me to show that the leisure thus purchased is itself one of the springs of progress of society.
(Paillottet’s note) This theoretical situation has been examined again by the author in the final part of his letter to M. Thiers. See the last twelve pages of “Protectionism and Communism.” (OC, vol. 4, p. 504, “Protectionisme et communisme,” pp. 534–45 [the last twelve pages].)[See also “Protectionism and Communism,” pp. 257–65, and “Anecdotes and Reflections,” p. 410, in this volume.]
Bastiat uses the word prolétaires, which we have translated as “landless farm laborers.”
(Paillottet’s note) See chapters 9 and 13 of Economic Harmonies on land ownership. See also, in vol. 2, the second parable in the speech given on 29 September 1846 in Montesquieu Hall. (OC, vol. 6, p. 297, “Propriété foncière,” and p. 430, “De la rente”; also see vol. 2, p. 238, “Second discours.”)
(Paillottet’s note) On the objection drawn from a so-called taking over of the agents of nature, see letter 14 of Free Credit, and, in vol. 4, the last two pages of chapter 14. (OC, vol. 5, p. 312, “Gratuité du crédit,” “Quatorzième lettre”; and vol. 4, p. 86, “Conflit de principes,” pp. 89–90 [last two pages].)
Laisser-passer: “Let us go about our affairs.” See also “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 408–9 in this volume.
This verse comes from Pierre-Jean de Béranger’s poem “La Liberté” (“Liberty”), which he wrote in January 1822 when he was imprisoned following the publication of his second volume of satirical songs and poems in 1821. It is ironic that, far from having his spirit broken by short periods of imprisonment, Béranger continued to defy the censors with his poems, which mocked the political and religious establishment. His published songs and poems were bestsellers and went through many editions. They oft en included sheet music to help members of the underground singing and drinking clubs enjoy his political songs.
“Liberty” can be found in a contemporaneous English edition of his works: Béranger, Béranger’s Songs of the Empire, the Peace, and the Restoration, pp. 109–11. There is a French edition that includes the music for “La Liberté”: Béranger, Musique des chansons de Béranger. Airs notés anciens et modernes, pp. 128–29.
(Paillottet’s note) On the effort saved, considered as the most important element of value, see chapter 5 of Economic Harmonies. (OC, vol. 6, p. 140, “De la valeur.”)
Sir Thomas More.
James Harrington.
Slavery in the French colonies ended (again) in the revolution of 1848. See also the entry for “Slavery” in the Glossary of Subjects and Terms.
These lines come from Molière’s play Les Femmes savantes (1672). The long-suffering bourgeois gentleman Chrysale is complaining about his household of women who have discovered the joys of disputation, reasoning, and the quotation of verse but who neglect his needs. In these lines Chrysale is complaining to his sister Bélise: “Reasoning has become the norm throughout my house, and reasoning has banished reason. One servant burns my roast while reading some story, another dreams of some verses when I want a drink; finally I see how they have followed your example, I have servants but I am not served.” (See Œuvres complètes de Molière, vol. 6, p. 145.)
T.304 "Speaks in a Discussion on the Decree concerning the Regulation of the Political Clubs" (26 July 1848)↩
SourceT.304 [1848.07.26] "Speaks in a Discussion on the Decree concerning the Regulation of the Political Clubs". Short speech in the National Constituent Assembly, 26 July 1848, CRANC, vol. 2, pp. 681-82. Not in OC. CW4
Editor's IntroductionThis is the 3rd of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
It is a short speech by Bastiat during a debate in July 1848 on the regulation of political clubs by the government. The trigger for the collapse of the July Monarchy on 22-24 February was the result of the regime's attempts to prevent a political banquet from taking place on 22 February. Throughout the second half of 1847 numerous public banquets, often numbering over a 1,000 people, were organised to protest against restrictions on the freedom of association and to demand an increase in the number of people who were allowed to vote in elections. The banqueters were addressed by leading public figures and patriotic music was played. When the Prime Minister François Guizot banned a banquet scheduled to be held on 14 January it was postponed until 22 February, which not coincidently was George Washington's birthday, thus allowing the banqueters to make a political point about a much admired republican and supporter of democracy. When it was banned a second time a public protest march was organised resulting in the death of one of the protesters at the hands of the National Guard. The protest escalated resulting in demands for the resignation of Guizot (which came on the afternoon of the 23rd), the killing of dozens of protesters whose bodies were carried through the streets of Paris in further protest, the erection of barricades throughout the city, and the eventual abdication of King Louis Philippe on the 24th. Later that evening Lamartine, Louis Blanc, and 10 other politicians and activists formed a Provisional Government and the Second Republic was declared the following day (25 February).
On the very day the Republic was announced the revolutionary socialist Auguste Blanqui started his "Le club de la société républicaine centrale" (Club of the Central Republican Society, also know as Club Blanqui) which was the perhaps the first of hundreds which sprang up in Paris between February and their suppression at the end of June 1848. Every shade of political opinion was represented with its own club, every suburb and district had its meeting halls and cafés where men and women gathered to discuss politics, and every magazine and journal had an affiliated club often headed by the editor. The larger clubs were able to mobilize their members to demonstrate in the streets in order to put pressure on the government to get their favoured legislation passed. Other important socialist clubs included Étienne Cabet's "La société fraternelle centrale" (the Central Fraternal Society), "Le club des travailleurs libres" (the Club of Free Workers), Alphonse Esquiros's "Le club de la montagne" (the Club of the Mountain), and Armand Barbès's "Le club de la révolution" (the Revolution Club).
The socialists were not the only ones to set up political clubs to discuss radical ideas. The classical liberal economists also had a Club, "le club de la liberté du travail" (the Club for the Freedom of Working). I t was organised by Charles Coquelin 1058 and its first meeting was held on March 31 to discuss the question of "The Organization of Labour" with three socialists defending Louis Blanc's proposals and attacking free trade, and Coquelin, Fonteyraud, and Garnier defending the free market position of the "Liberty of Working". 1059 One of the Club's best public speakers was Alcide Fonteyraud (1822-1849) who died in the cholera epidemic which swept France in mid 1849. 1060 He was famous for his florid and witty style of speaking and his ability to mix references to the classics of French literature with the classics of political economy. Bastiat also most likely attended its meetings and may have participated in giving some of the speeches.
The political clubs reached their pinnacle of power on the eve of the 23 April elections for the Constituent Assembly. Fearful of their influence the National Guard began to disrupt their meetings and after the elections moderate republicans in the Assembly began to call for the clubs' power to be curbed. Many leaders of the most left-leaning clubs were arrested following a demonstration on 15 May in support of uprisings in Poland and following the June Days (23-26) rioting the Assembly voted to close them completely on 28 June. Under a new law restricting the right of assembly which was passed on 2 August the clubs could only operate under strict police supervision.
Bastiat is participating in a debate in the Chamber on how extensive government regulation of the clubs should be. Under discussion were Articles 13, 14, and 15 1061 which stated that:
Art. 13. Secret societies are forbidden. Those who are convicted of having participated in a secret society will punished with a fine of 100-500 francs and imprisonment of between three months and a year. These penalties will be doubled for the leaders or founders of these societies. …
Art. 14. Irrespective of any meetings which come to be regulated, citizens can found circles or private groups which do not have a political purpose, on condition that they make known to the municipal authority the location and purpose of the meeting and the names of the members who are members. Without such a declaration or in the case of a false declaration the meeting will be closed immediately and the members will be prosecuted as if they had joined a secret society.
Art. 15. (which would be the final part of the law). The conditions of the law are not applicable to, firstly, meetings held prior to an election, and secondly, anything pertaining to religious matters or public education.
Bastiat voted against the measures which were opposed 370 to 362. 1062
TextCitizen Bastiat: I have come to demand the floor to speak against Cloture (ending the debate) because I want to ask the Chamber for the complete removal of the Article, and I have only two words to say to justify my position.
Several Members of the Chamber: Speak against Closure!
Citizen Bastiat: I speak against Closure because none of the previous speakers called the Assembly's attention to the possibility of completely removing this Article. This Article appears to me to be unnecessary and dangerous.
It is unnecessary because if a secret society reveals itself to the outside world by means of criminal acts it will be handled by the ordinary laws.
Several Members of the Chamber: Too late!
Citizen Bastiat: On the contrary, if a secret society has only made the mistake of not declaring itself to the municipal authority it will be hit by Article 14, and this Article will impose sufficient punishment on it, if there has been only a simple infraction of the law.
In all cases, the legislation is sufficiently well armed against what you call "secret societies."
I will add that the Article is dangerous. You yourselves have shown the impossibility of defining what a secret society is, and besides (in doing this) it is impossible not to place an enormous source of arbitrary power in the hands of the government.
For these reasons, and given the fact that the legislation is sufficient with Article 14, I demand the removal of the proposed Article.
1058 Charles Coquelin (1802-1852) was one of the leading figures in the Political Economy movement in Paris before his untimely death. He was selected by the publisher Guillaumin to edit the prestigious and voluminous Dictionnaire de l'économie politique (1852) because of his erudition and near photographic memory. He was an early advocate of the idea of the competitive issue of currencies by banks competing for business in the market, or free banking in his book, Du Crédit et des Banques (1848).
1059 A description is provided in "Chronique," JDE,T. 20, no. 77, 1 avril 1848, pp. 55-56.
1060 Alcide Fonteyraud (1822-1849) was born in Mauritius and became professor of history, geography, and political economy at the École supérieure de commerce de Paris and was one of the founding members of the Free Trade Association and his knowledge of English led him to England to study the Anti-Corn Law League first hand. Fonteyraud also wrote several articles for the JDE and edited a French edition of the works of David Ricardo. He died in the cholera epidemic which swept through Paris in August 1849.
1061 CRANC, vol. 2, p. 677.
1062 CRANC, vol. 2, p. 724.
T.203 (1848.07.28) "A Complaint made by M. Considerant and F. Bastiat's Reply."↩
SourceT.203 (1848.07.28) "A Complaint made by M. Considerant and F. Bastiat's Reply." These two letters were originally published in JDD, 28 July, 1848 and inserted by the original French editor Paillottet as an Appendix at the end of "Property and Plunder" (24 July 1848). [OC4, pp. 434-41] [CW2, pp. 177-84]
Editor's IntroductionThis debate between the socialist Victor Considerant 1063 and Bastiat took place soon after the violent June Days uprising agains the closure of the National Workshops scheme. Bastiat had played an important role in persuading the Chamber that France would go bankrupt if they did not shut the Workshops down and end the socialist government work program. Hence the bitterness over a key phrase used to justify the Workshops in the eyes of socialists, the "right to work", i.e. the right to be given a government guaranteed paid job at taxpayer expense. 1064
A great deal of the argument falls down to who said what when, which is not always enlightening, but there are major points of difference in the arguments of the two theorists over the nature of rights (are they conventional or are they natural rights embedded in the very nature of man), what is the source of value, and who gets to own the valuable things that are produced.
Text: A Complaint Made by M. Considérant and F. Bastiat's ReplySir,
In the serious discussions to come on the social question, I am determined to prevent the public from being given, as coming from me, opinions that are not mine, or that my opinions be presented in a way that distorts and disfigures them.
I have not defended the principle of property for twenty years against the followers of Saint-Simon who denied the right of inheritance, against the disciples of Babeuf and Owen, and against all the varieties of communism, to let myself be depicted as being in the ranks of those who oppose this right of property , whose logical legitimacy I believe I have established on foundations that are difficult to undermine.
I have not fought in the Luxembourg Palace against the doctrines of M. Louis Blanc, 1065 I have not on numerous occasions been attacked by M. Proudhon as one of the fiercest defenders of property only to allow M. Bastiat to paint me in your columns as forming, with these two socialists, a sort of triumvirate against property, without my protesting .
Besides, as I do not wish to be obliged to claim your indulgence in inserting lengthy tracts of my prose in your columns, and you doubtless agree with me in this, I am asking your permission to make a few observations to M. Bastiat before he goes any further, which will cut short the replies that he may oblige me to give him and perhaps even to eliminate them completely.
1. I would not like M. Bastiat, even when he thinks he is analyzing my thought accurately, to use, in inverted commas and as though quoting textually from my pamphlet on the right of property and the right to work 1066 or any other of my writings, phrases of his own which, especially in the penultimate of the quotations he attributes to me, convey my ideas inaccurately. This is not a proper way to proceed, and it may even lead the person who uses it much further than he himself would wish. Abbreviate and analyze as you wish, that is your right, but do not give your analytical abbreviation the character of a verbatim quotation.
2. M. Bastiat says: "They (the three socialists among whom I am included) appear to think that in the battle which is about to take place, the poor have an interest in the triumph of the right to work and the rich in defending the right of property ." 1067 For my part, I do not believe and do not even believe that I appear to believe anything of the sort. On the contrary, I believe that the rich now have a more serious interest than the poor in the recognition of the right to work . This is the thought that dominates my entire article, published for the first time not today, but ten years ago, 1068 and written to give the men in government and landowners a salutary warning and at the same time defend property against the redoubtable logic of its opponents. Moreover, I believe that the right of property is just as much in the interests of the poor as of the rich, since I regard the denial of this right as a denial of the principle of individuality and would consider its elimination, in whatever stage society was in, to be the signal for a return to the primitive state which, to my knowledge, I have never shown myself to favor.
3. Lastly, M. Bastiat says:
Besides, I have no intention of examining M. Considérant's theory in detail. . . . I wish only to attack what is weighty and consequential at the basis of this theory, that is to say, the question of r ent . M. Considérant's theory can be summarized thus: An agricultural product exists through the combination of two actions: The action by a man , or labor, which generates the right of property, and the action of nature , which ought to be free and that landowners turn unjustly to their profit. This is what constitutes the usurpation of the rights of humanity. 1069
I ask a thousand pardons of M. Bastiat, but there is not one word in my pamphlet that authorizes him to attribute to me the opinions that he so freely does here. As a rule I do not hide my thought, and when I think it is midday it is not my habit to say it is two o'clock. Therefore, let M. Bastiat, if he wishes to do me the honor of disparaging my pamphlet, oppose what I have written and not what he attributes to me. I have not written one word against rent ; the question of r ent , with which I am as familiar as everyone, does not appear at all in any shape or form, and when M. Bastiat quotes me as saying, "that the action of nature ought to be free and that landowners turn it unjustly to their advantage and that is what, according to me, constitutes the usurpation of the rights of the human race," he again remains stuck in a domain of thought that I have not referred to in the slightest. He is attributing to me an opinion I consider to be absurd, and which is even diametrically opposed to the entire doctrine of my article. I am not complaining at all, in fact, that landowners enjoy the action of nature, what I am asking for, in the name of those who do not enjoy this, is the right to work that will enable them to be able, alongside landowners, to create products and to live by working, when property (whether agricultural or industrial) fails to give them the means to do so.
Besides, sir, I have no intention of indulging in a debate on my opinions with M. Bastiat in your columns. This is a favor and an honor not reserved to me. Let M. Bastiat therefore reduce my system to dust and ruin, I will think myself entitled to claim your hospitality for my comments only when, through a lack of understanding, he attributes to me doctrines for which I am not responsible. I am well aware that it is often easy to bring down people by attributing to them what you want instead of what they have said, and in particular one is more readily right when opposing socialists when one opposes them in a confused way and in general than when one takes each one to task for what he has put forward. But, whether right or wrong, I for my part insist on taking responsibility for no one other than myself.
M. Editor, the discussion that M. Bastiat has undertaken in your columns bears on subjects that are too sensitive and weighty for you not to be in agreement with me on this at least. I am confident therefore that you will agree that I am right to be upset and that you will in fairness give my complaint a clear and legible place in your columns.
V. Considérant
Representative of the people
Bastiat's Reply to ConsiderantParis, 24 July 1848
M. Considérant is complaining that I have altered or distorted his opinion on property. If I have committed this fault I have done so involuntarily, and I can do no more in reparation than to quote his words.
After having established that there are two sorts of rights, natural rights, which express the relationships resulting from the very nature of beings or things and conventional or legal rights, which exist only to regulate wrong relationships , M. Considérant continues thus:
This having been said, we will say clearly that property as it has generally been constituted in all the industrious nations up to now , is tarnished by illegitimacy and is contrary to justice. . . . The human race has been placed on earth to live and develop there. The species is thus a usufructuary of the surface of the globe. …
However, under the regime that constitutes property in all civilized nations, the common basis on which the species has right of usufruct has been invaded. It has been confiscated by the minority to the exclusion of the majority. Well then! If there were in fact one single man deprived of his right to a usufruct of the common fund by the nature of the regime of property, this deprivation on its own would constitute an infringement of Rights, and the regime of property that endorsed it would certainly be unjust and illegitimate.
Might not any man born into a civilized society with no possessions and who found the land around him confiscated say to those who preached respect for the existing regime of property by affirming the respect due to the rights of property, "My friends, let us understand one another and set things straight a little; I am much in favor of the rights of property and very ready to respect it with regard to others, on the sole condition that others respect it with regard to me. However, as a member of the human race, I am entitled to a usufruct of the fund that is the common property of the race and that nature, as far as I know, has not given to some to the detriment of others. In virtue of the regime of property which I found established on my arrival here, the common fund has been confiscated and is well guarded. Your regime of property is therefore founded on the plunder of my right to a usufruct. Do not confuse the right of property with the particular regime of property that I find is established by your artificial right.
The current regime of property is therefore illegitimate and is based upon plunder at its very root/foundation . 1070
M. Considérant finally manages to set out the fundamental principle of the right of property in these terms:
Every man possesses the thing that his work, mind , or more generally his activity has created. 1071
To show the extent of this principle, he gives the example of the first generation of men who farm an isolated island. The results of the work of this generation are divided into two categories.
The first includes the products of the land that belonged to this first generation as usufructuaries, and that were increased, refined, or manufactured by its labour and industry. These products, in their raw state or manufactured, consist either of consumer products or t ools of work. It is clear that these products belong in total and legitimate property to those who have created them through their activity. …
Not only has this generation created the products we have just designated. . . but it has also created added value to the original value of the land through cultivation, the buildings, and all the work done on the land and the property.
This added value obviously constitutes a product, a value due to the activity of the first generation. 1072
M. Considérant acknowledges that this second kind of value is also a legitimate property. Then he adds:
We can thus totally accept that, when the second generation comes onto the scene, it will find two types of capital on the earth:
A. The original or natural capital , which has not been created by the men of the first generation, that is to say, the value of the land in its natural state.
B. The capital created by the first generation, which includes 1. the products, goods, and tools that have not been consumed and worn out by the first generation, 2. the added value that the work done by the first generation has added to the value of the land in its natural state.
It is thus obvious and results clearly and essentially from the fundamental principle of the right of property established just now, that each individual of the second generation has an equal right to the original or natural capital, whereas he has no right to the other form of capital, the capital created by the first generation. Each individual of this first generation can thus dispose of his part of the created capital in favor of the particular individuals of the second generation of his choice, his children, friends, etc. 1073
Thus, in this second generation, there are two types of individuals, those who inherit created capital and those who do not. There are also two types of capital, original or natural capital and created capital. The latter legitimately belongs to the heirs but the former legitimately belongs to everyone. Each individual of the second generation has an equal right to the original capital . Well, it has happened that the heirs to created capital have also seized the capital not created; they have invaded it, usurped it, and confiscated it. This is why and how the current regime of property is illegitimate, contrary to right and based on plunder at its very foundation.
I may certainly be mistaken, but it seems to me that this doctrine exactly echoes, although in other terms, the doctrine of Buchanan, 1074 McCulloch, 1075 and Senior 1076 on rent . They too acknowledged the legitimate ownership of what has been created by labour. However they regard as illegitimate the usurpation of that which M. Considérant calls the value of the land in its natural state and what they call the productive force of the land.
Let us now see how this injustice can be put right.
Primitive men in forests and savannahs enjoy four natural rights: hunting, fishing, the gathering of fruit, and grazing. That is the initial form taken by rights.
In all civilized societies, men of the people, the proletariat who inherit nothing and who own nothing, are purely and simply deprived of these rights. We thus cannot say that the initial right has changed its form here, since it no longer exists. The form has disappeared along with the substance.
But under what form might the right be reconciled with the conditions of an industrious society? The answer is easy. In the primitive state of society, in order to make use of his rights, man is obliged to act . The work of hunting, fishing, gathering fruit, and grazing are the conditions governing the exercise of his rights. The initial right is thus only the right to these forms of work .
Well then! Let an industrious society that has taken possession of the land and removed from men their faculty of exercising their four rights at their pleasure in full liberty over the surface of the land, recognize the right to work of each individual in compensation for these rights that it has taken away from him - the RIGHT TO WORK. Then, in principle and subject to proper application, no individual would have anything to complain about. In effect, his initial right was the right to work carried out in a poor workshop, in (the workshop) of the natural wilderness. His current right would be the same right exercised in a better equipped and richer workshop in which individual activity has to be more productive.
The condition sine qua non for property to be legitimate is thus that society should recognize the right to work of the proletariat and that it should ensure that it has at least as much of the means of subsistence for the exercise of a given activity as this exercise would have procured for it in the (original state of nature). 1077
Now I leave the reader to judge whether I have changed or distorted M. Considérant's opinions.
M. Considérant considers himself to be a fierce defender of the right to property . Doubtless he is defending this right as he understands it, but he understands it in his own way and the question is to establish whether it is the right way. In any case, it is not the way of everybody.
He himself says that, although it needed only a modicum of good sense to settle the question of property, it has never been properly understood . I am fully allowed not to agree with this condemnation of human intelligence.
It is not only the theory that M. Considérant is accusing. I would abandon him to it, as thinking like him in this matter as in many others, has often been misleading.
However, he also attacks the universal practice. He says clearly:
Property, as generally constituted in all industrious nations up to the present is tarnished with illegitimacy and sins spectacularly against rights. 1078
If, therefore, M. Considérant is a fierce defender of property it is at least of a mode of property that is different from the one recognized and practiced by men since the dawn of time.
I am fully convinced that M. Louis Blanc and M. Proudhon also claim to defend property as they understand it.
I myself have no other pretension than to give an explanation of property that I believe to be true and which is perhaps false.
I believe that the ownership of land, as it is formed naturally, is always the fruit of labour, that consequently it is based on the very principle established by M. Considérant, that it does not exclude the proletariat class from enjoying the usufruct of the land in its natural state but on the contrary it multiplies ten and a hundredfold this usufruct for them and thus is not tarnished with illegitimacy, and that all that undermines it in fact and in belief is as great a calamity for those who do not possess the land as for those who do.
This is what I have tried hard to show , to the extent that this can be done in the columns of a journal.
1063 See the glossary entry on "Victor Considerant."
1064 See the glossary entry on "The Right to Work."
1065 See the glossary entries on "Louis Blanc" and "The Luxembourg Palace."
1066 Considérant, Victor Prosper. Théorie du droit de propriété et du droit au travail. Paris: Librairie phalanstérienne, 1848.
1067 Property and Plunder , 1st Letter, CW2, p. 148.
1068 Considerant's original essay "De la propriété" (On Property) was published in a magazine La Phalange , 1er juin 1839, and then as pamphlet. It was expanded and republished many times during the 1840s in various versions as Théorie du droit de propriété et du droit au travail .
1069 Property and Plunder , 1st Letter, CW2, p. 150.
1070 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), pp. 11-14.
1071 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), p. 17.
1072 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), pp. 19-20.
1073 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), pp. 20-21.
1074 David Buchanan (1779-1848) edited an edition of Adam Smith's Wealth of Nations in 1814 with extensive notes and a companion volume with an analysis of Smith's work, Observations on the subjects treated of in Dr. Smith's Inquiry (1814). What might have caught Bastiat's eye was Buchanan's note in the latter volume, on p. 80 where he states that "Dr Smith here states, that the landlords, like other men, love to reap where they never sowed, and demand a rent even for the natural produce of their land. They do so. But the question is, why this apparently Unreasonable demand is so generally complied with. Other men love also to reap where they never sowed; but the landlords alone, it would appear, succeed in so desirable an object."
1075 John Ramsay McCulloch (1789-1864) was the leader of the Ricardian school following the death of Ricardo. He was a pioneer in the collection of economic statistics, editing classical works in the history of economic thought, and was the first professor of political economy at the University of London in 1828. He wrote The Principles of Political Economy (1825). Bastiat discusses these three economists in more depth in EH Chap. IX "Landed Property".
1076 Nassau Senior (1790-1864) was a British economist who became a professor of political economy at Oxford University in 1826. His books include Lectures on Political Economy (1826) and Outline of the Science of Political Economy (1834).
1077 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), pp. 23-25.
1078 Considérant, Théorie du droit de propriété et du droit au travail . 3rd edition (1848), p. 11.
T.305 "Report to the Assembly from the Finance Committee concerning a Grant to assist needy citizens in the Department of la Seine" (9 August 1848)↩
SourceT.305 [1848.08.09] "Report to the Assembly from the Finance Committee concerning a loan to assist needy citizens in the Department of la Seine". Presents a Report from the Finance Committee to the National Constituent Assembly, 9 August 1848, CRANC, vol. 3, p. 41. Not in OC. CW4
Editor's IntroductionThis is the 4th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
Bastiat was elected to represent Les Landes in the general election of 23 April 1848 for the new Constituent Assembly of the Second Republic. Soon after he was admitted into the Chamber he was offered two responsible Committee positons, one in the Committee on Labour and the other in the Finance Committee. He turned down the Committee on Labour, perhaps sensing that he would be opposed to everything that it would do and that he could better fight the socialists who were behind the National Workshops program from within the Finance Committee. Because of his economic expertise he was voted Vice-President of the 60 member Committee a total of 8 times until his failing health in early 1850 forced him to retire.
As Vice-President of the Finance Committee he had to present reports from the Committee to the Chamber on their deliberations and findings. This one is a Report in which he warns the Chamber that what had began as a temporary measure to alleviate economic hardship in the Department of La Seine the previous month now looked as though it was turning into a permanent welfare "system" which he argues had not been the Chamber's or the Finance Committee's intention.
Those on the Finance Committee, like Bastiat, who wanted to cut government spending and balance the budget, were in a difficult position as the economic recession which had followed the February Revolution and the June Days uprising had severely reduced government income, while the demands placed on it by groups which had previously been excluded from electoral politics were making that task almost impossible. On the one hand, socialist groups wanted more money for government unemployment relief programs like the National Workshops, and on the other hand ordinary taxpayers wanted taxes on food and other essentials cut so they could make ends meet.
The taxes Bastiat personally wanted to cut the most were the taxes on salt 1079 and alcohol, 1080 the high cost of sending letters through the government monopoly postal service (which also included a tax component), 1081 and an end to the prohibition of some imports, and the high tariffs on clothing and food. He realised he would not be able to persuade the Finance Committee to cut any of these taxes unless they could find a way to drastically cut government expenditure. In Bastiat's mind the obvious place to cut was the item which absorbed the most government expenditure, namely the 30% of the budget spent on the Army and the Navy. 1082 This of course was the hardest to cut politically, especially after Louis Napoléon was elected President of the Republic in December 1848.
In the meantime, Bastiat thought that a good strategy was to make municipal government bodies like the thousands of Welfare Offices (Bureaux de bienfaisance) 1083 scattered across the country responsible for looking after the needy in their locality, rather than have a new, centralised welfare bureaucracy be created in Paris.
Bastiat's discussion in the Chamber on this matter continues in the next section.
TextCitizen President of the Assembly: 1084 The decree is adopted. Citizen Bastiat has the floor to present his Report from the Finance Committee.
Citizen Frédéric Bastiat: It is my honour to present to the Chamber the Report of the Finance Committee on the decree concerning a grant of 2 million francs for extra-ordinary assistance to the citizens of the Department of la Seine who find themselves in need.
Here is the text of the Report:
Citizen Representatives,
A month ago you voted in favour of a grant of 3 million francs to assist the poverty-stricken inhabitants of the Department of la Seine. Today the Government asks you for 2 million francs for the same purpose.
If the task of the Finance Committee is often a thankless one, since it consists in erecting a barrier to stop the flood of diverse claims which, in all shapes and forms, and for all kinds of reasons, are hurled at the Public Treasury, today it is particularly difficult.
On the one hand, it is a question of satisfying the urgent needs and relieving the cruel suffering of these people. It is a question of ensuring the most basic subsistance to a considerable number of our fellow citizens whom political events and the economic stagnation which resulted from that, have deprived them of work.
But on the other hand, the Finance Committee cannot and ought not forget the taxpayers. It cannot lose sight of the fact that the return of business confidence and economic activity will restore the equilibrium between income and expenditure; that all ordinary income is fully accounted for and even beyond that, by the demands of the public sector; that the Minister of Finance, 1085 only a few days ago, because of the dire economic circumstances, was heard declaring that none of the taxes which weigh most heavily on the masses, such as the tax on salt and alcohol, could be changed at present. Now, Citizens, this is sad news for the Departments. Do we have to tell them again, that they will be hit with new taxes in order to relieve suffering in the capital, while they already have so many unfortunate people of their own to help?
It is also quite clear that if the towns in the provinces are forced by the burden of taxes to suspend the assistance which they distribute to their poor, while the poor in Paris are guaranteed a daily amount, even a modest one, all the unfortunate people in the Departments will flock to the capital, thus in a short time digging much deeper the financial chasm that we want to fill in, and creating the very dangers that all of you want to prevent.
So, before we propose that you vote for the grant which is requested, the Finance Committee wanted to assure you that a state of affairs which is essentially temporary should not become permanent, and that this extra-ordinary assistance should not become another plague in a new form which replaces the plague of the National Workshops. 1086 The Committee has been assured to its satisfaction, from the Minister of the Interior's own mouth, that the greatest efforts were made to reduce and gradually end the enormous cost which these circumstances have burdened the taxpayers with. Individual assistance, originally set at 1 fr. per day, have declined successively to 75, 50, and 35 centimes per day. Today they remain fixed at an average of 25 centimes per day. We have not been able to achieve results as favourable with regard to the number of people who are being assisted. This has risen to a considerable number and it is difficult to believe that many abuses have not slipped into a system of distribution conducted on such a large scale, especially as the reopening of a large number of workshops ought to have lead to a quite different result. The Administration will take all possible precautions to ensure that the greed of schemers will not be able to devour the resources destined to relieve poverty.
The re-establishment of order, the return of business confidence, the recovery of labour, gives us hope that the day is not far off when things will return to a normal state, and when Paris will have enough to care for its own poverty-stricken people through the activity of the Welfare Offices.
By these means, and in the hope that a request similar to the one which is before you today will not reappear for a long time, the Committee proposes that you adopt the proposed Decree.
The Proposed Decree.
First Article. A grant of 2 million francs is made available to the Minister of the Interior for the fiscal year 1848 for the extra-ordinary relief of the citizens in the Department of la Seine who find themselves in need.
Article 2. The Minister of the Interior and the Prefect of la Seine will plan for the immediate distribution of this amount among the 14 arrondissements, in a proportion determined by their respective needs.
Citizen President of the Assembly: The Report will be printed and distributed.
Many Voices: With some urgency.
1079 The tax on salt, or "gabelle" as it was known under the old regime was a much hated tax on an item essential for preserving and flavouring food. It was abolished during the 1789 Revolution but revived during the Restoration. In 1816 it was set at 30 centimes per kilogramme and in 1847 it raised fr. 70.4 million. During the Revolution of 1848 it was reduced to 10 centimes per kilogramme, which was the level Bastiat had been advocating since January 1847 in ES2 11 "The Utopian."
1080 The wine and spirits tax was eliminated by the revolutionary parliament of 1789 but progressively reinstated during the empire. It comprised four components: (1) a consumption tax (10 percent of the sale price); (2) a license fee paid by the vendor, depending on the number of inhabitants; (3) a tax on circulation, which depended on the département; and (4) an entry duty for the towns of more than four hundred inhabitants, depending on the sale price and the number of inhabitants. This tax raised fr. 104 million in 1848. One of Bastiat's most important speeches in the Chamber was on abolishing the tax on alcohol on 12 December, 1849, see CW2, pp. 328-47.
1081 See the Editor's Introduction to "Two Articles on Postal Reform I" (3-6 Aug. 1844), above, pp. 000.
1082 According to the budget passed on 15 May 1849 the size of the French Army was 389,967 men and 95,687 horses. This figure rises to 459,457 men and 97,738 horses for the entire French military (including foreign and colonial forces). The expenditure on the Army in 1849 was fr. 346,319,558 and for the Navy and colonies the expenditure was fr. 119,206,857 , for a combined total of fr. 465,526,415. Total government expenditure in 1849 was fr. 1.573 billion with expenditure on the armed forces making up 29.6 percent of the total budget.
1083 The function of the Welfare Offices (Bureaux de beinfaisance) was to distribute assistance to the poor, orphaned children, and the sick. Money from a tax on the sale of tickets to various forms of entertainment was used to fund the Offices. In 1847 there were 9,336 Welfare Offices in communes across France, about 15 million francs was spent on average each year, and 1,185,632 individuals were given assistance. The bulk of the money was used to buy food. Smaller amounts were used to buy cloths and fuel for heating. See, Maurice Block, Statistique de la France, comparée avec les autres états de l'Europe . 2 vols. (Paris: D'Amyot, 1860). Vol. 1, Chap. VII Bienfaisance, section on "Bureaux de bienfaisance", pp. 291-95.
1084 Armand Marrast (1801-1852) was the President of the National Assembly between 19 July 1848 and 26 May 1849. He was a moderate republican and Secretary of the Commission which drew up the new Constitution which was approved in November 1848. He served as president until the Constituent Assembly was replaced by the Legislative Assembly in June 1849. Under the July Monarchy he was a journalist for the National and an active opponent of the regime. He was one of the organisers of the banned political banquet of 22 February 1848 which was the trigger for the overthrow of the July Monarchy. In March 1848 Marrast became mayor of Paris.
1085 Michel Goudchaux (1797-1862) was the Minister of Finance 28 June to 25 October 1848. He supported a progressive tax on inheritance, a tax on capital invested in land, and the unpopular 45% increase in direct taxes in order to balance the budget. On the other hand he supported one of Bastiat's favourite reforms, the uniform stamp for sending letters. He lost his position in a ministerial reshuffle on the eve of the Presidential election in November 1848 (which was won by Louis Napoléon).
1086 The government decided to close the National Workshops program on June 21, 1848 which provoked the bloody June Days uprising of June 23-26 June. See the glossary on "National Workshops."
T.306 "Additional Comments in the Assembly on the Report from the Finance Committee concerning a Grant to assist needy citizens in the Department of la Seine" (10 August 1848)↩
SourceT.306 [1848.08.10] "Additional Comments in the Assembly on the Report from the Finance Committee concerning a Grant to assist needy citizens in the Department of la Seine". Presents further details on a Report from the Finance Committee to the National Constituent Assembly, 10 August 1848, CRANC, vol. 3, p. 62-64. Not in OC. CW4
Editor's IntroductionThis is the 5th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. It was in two parts. See the Editor's Introduction above, pp. 000 for more details of this topic.
TextPart 1 (CRANAC, vol. 3, p. 62).
Citizen Buffet: … Here are the terms of this amendment:
"First Article. — A grant of 2 million francs is made available to the Minister of the Interior 1087 for the fiscal year 1848 for the extra-ordinary relief of the citizens who find themselves in need."
I have removed from the First Article the words "of the Department of la Seine."
"Art. 2 — The Minister of the Interior will plan with the Prefects for the immediate distribution of this amount, at least a quarter of which will be distributed among Departments other than that of la Seine."
Citizen Bastiat, Reporter: Citizen Representatives, the amendment which has been submitted to you was sent back to the Finance Committee at the suggestion of the Minister of the Interior. The Minister of the Interior is not present and as a result the Finance Committee is not in a position to make a decision. However, if the Minister of Finance accepts the amendment there is no reason for the Finance Committee to adopt it as well.
The same amendment has been presented to the Finance Committee and here is the objection which it raised.
The assistance requested by the Minister of the Interior pertains to the Department of la Seine and it is calculated according to the needs of the Department of la Seine. Please note Messieurs, that if it were to be extended to the poverty stricken people of the whole of France it would be insufficient, or it would have to be renewed in a very short time. With this decree we had no intention whatsoever to create a grand system of public assistance to which we would have to revisit again later. It is assistance which is purely temporary and interim.
Is it wise to introduce into a law which is purely interim a principle which has to be debated again later?
The Assembly did not intend that the dissolution of the National Workshops would lead to the suffering of the workers; it wanted the dissolution to be immediate, and that assistance would be guaranteed to the workers who would stop receiving it via the National Workshops. That is why the Assembly voted for the 3 million francs assistance package. Now people are requesting a sum of 2 million francs to continue this system, and the administration has undertaken to continue it in such a way as to gradually result in its extinction.
It is obvious that if you now want to apply the 2 million franc assistance package to the whole of France it would be necessary to vote for several more million francs at the same time, and this would not fulfill the purpose of the law.
Consequently, in spite of the absence of the Minister of the Interior, I believe I can act on his behalf and urge the Assembly to reject the amendment in its current form, with the exception of agreeing to assistance for other poverty stricken people by means of other special decrees.
Part 2 (CRANAC, vol. 3, pp. 63-64.)
Citizen Bastiat, Reporter: What I said at the beginning (of my speech) did not take long to become reality at this rostrum. That is to say, that a law which was entirely temporary did not take long before it was transformed into an entire system of public charity, if one wished to extend the benefits of the law to all the Departments. I think we have completely lost sight of the fact that here it is not a question of creating a system of public charity, the principle of which moreover, I have never denied nor admitted, and which I consider to be completely undecided. However, I did say here that it was a question of a law which was purely temporary, and not only temporary but one which approaches its end according to the clear intent of the administration.
We began with a request for assistance of 3 million francs, and you know that in these circumstances this assistance is not enough. Today the request is for another 2 million francs in assistance, and at the same time the Administration states that it is based on the belief that it will be the last one, given that the assistance began at 1 franc per day per person, and dropped to 73 centimes, then 50, then 35, and now at last 25 centimes. In these circumstances, we can hope that this temporary system is approaching its end, and that we will not have to renew it in another form and extend it to the whole of France, at the very moment when the Minister of Finance has just announced that our finances are in such a bad condition that we cannot lower the taxes on alcohol and salt which fall on exactly those people we wish to help. I do not think that we can build an improvised new system in this way based upon a temporary law, and I stand by the conclusions reached by the Finance Committee.
(Very good! Point it to a Vote!)
1087 The Minister of the Interior was Antoine Sénard who served between 28 June 1848 and 13 October 1848. Antoine Sénard (1800-1885) was a lawyer from Rouen who participated in the political banquets of 1847 which led to the overthrow of Louis Philippe in February 1848. He was elected to the Chamber in April 1848, and served as President of the Chamber 5-29 June 1848 and after the June Days uprising he was appointed Minister of the Interior by General Cavaignac. He was a staunch anti-bonapartist and did not have another high position after Louis Napoléon was elected President in December 1848.
T.221 (1848.08.13) "Letter on the Referendum for the Election of the President of the Republic" (JDL, Aug. 1848)↩
SourceT.221 (1848.08.13) "Letter on the Referendum for the Election of the President of the Republic" (Lettre sur le référendum pour le président de la république), Journal des Landes, 13 Aug. 1848. [JCPD] [CW1.2.2.7, pp. 395-96.]
Editor's Note[to come]
TextI will not vote for Louis-Napoléon Bonaparte. To place at the helm a man about whom we know nothing, who has provided no proof of his abilities, whose intentions and projects are unknown, whose entire past record lies in two ludicrous dynastic ventures, appears to me to play fast and loose with voters’ rights and place in jeopardy the destiny of the country much beyond what can be done in all conscience. Whether his candidature is based on the cult of a name or on a secret desire to open the way for a new revolution, neither of these reasons could give me reason to support him.
[396]I will vote for Cavaignac. This is not because, in my view, mistakes have not been made during his administration. I have never approved, and my voting record bears witness to this, the prolonged exceptional measures taken after the June Days, which went beyond the requirements of the conflict. But I will vote for him because I consider him to be a capable and trustworthy man, because he has resisted the undertow of warlike passions, because he has kept the government in harmony with the wishes of the people as shown in general elections, and because he wants to preserve loyally the charge entrusted to him, that is to say, the Republic. Because he has understood that a republic, which is the government of a country by the country, cannot be directed by extreme minorities without injustice and risk, because he bravely accepted the dreadful responsibility of power at a time of crisis, and finally because I would be afraid that if it did not acknowledge all these services rendered, the nation would end up discouraging all forms of such commitment.
Fellow countrymen, you may not share my judgment. But I do not want you to be able to doubt my impartiality. For this reason I think it would be relevant to say that I have never spoken to Cavaignac except during the June Days when, like all my colleagues, I had to make my report to the commander in chief on returning from the barricades.
T.307 "Speech in the Assembly on Postal Reform" (24 August 1848)↩
SourceT.307 [1848.08.24] "Speech on Postal Reform". Speech to the National Constituent Assembly, 24 August 1848, CRANC, vol. 3, pp. 442-43. Not in OC. CW4
Editor's IntroductionThis is the 6th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
For more information about Bastiat's attitudes towards postal reform before the revolution see the Editor's Introduction to "Two Articles on Postal Reform I" (3-6 Aug. 1844), above, pp. 000.
In his economic sophism "Salt, the Mail, and the Customs Service" (May 1846) 1088 Bastiat stages a conversation between Jacques Bonhomme and John Bull about the need for postal reform in France and how such reforms have fared in England. Jacques has a clever satire of the complexity of processing mail for delivery in France and writes a letter to a government official (Deputy de Vuitry who was Chairman of the Committee looking into postal reform), a rhetorical device for which Bastiat was famous. In the letter Jacques offers to take over the government letter monopoly and run it at a profit while charging a lower price for delivery. Also in the letter, Jacques proposals a draft law to amend the postal system which is interesting to compare with the actual proposals he put forward in the Chamber in August 1848:
Article 1. From 1 st January 1847, envelopes and stamped postal wrappers to the value of five (or ten) centimes will be on sale everywhere considered to be useful by the postal services.
Article 2. Any letter placed inside one of these envelopes and which does not exceed the weight of 15 grams or any journal or printed matter placed within one of these wrappers and which does not exceed … grams, will be carried and delivered without cost to its address.
Article 3. The accounting system of the postal services will be totally abolished.
Article 4. All criminal legislation and penalties with regard to the carriage of letters will be abolished. 1089
The model for Bastiat's thinking about postal reform was the reform of the British postal system pioneered by Rowland Hill (1795-1879). It began with the Uniform Four Penny Post which was introduced in 1839, then in 1842 it was reduced to one penny (the Uniform Penny Post and the "Penny Black" stamp) which was prepaid by the sender and was the same regardless of distance carried. Up until then the price had depended on the distance carried and was paid by the recipient. This was part of a package of reforms which liberals introduced in England during the 1840s and many of them were closely interlinked. For example, another strong advocate of postal reform was Richard Cobden who believed that the existing system was another example of protection given by the government to the elite which imposed an excessive cost on business. Cobden and the Anti-Corn Law League were able to take advantage of the cheap mail rates by distributing large numbers of their pamphlets and other propaganda before they were successful in 1846 in having the Corn laws repealed by the British Parliament. Bastiat no doubt had this in mind for France as well.
In France, the old system of charging by distance was abolished during the Revolution (24 August 1848). The year before in 1847 125 million letters were sent at an average cost of 43 centimes. The new fixed tax for mail in 1849 was reduced to 20 centimes. Thus, Bastiat's proposal in "The Utopian" (ES2 11) for a cut to 10 centimes in January 1847 was a radical one. According to the Budget Papers of 1848 the French state raised fr. 51.5 million from various taxes, duties, and other charges for delivering letters, parcels, and money. The tax on letters alone raised fr. 46.5 million. However the government also spent 34.5 million fr. (1848) in administering and collecting the taxes on carrying letters. Thus, the actual net amount raised by the state was about 17 million francs. 1090 Thus, the French postal system was expensive and inefficient and did not even raise much money for the government. This fact, plus Bastiat's impassioned plea for freedom of communication helped get the reforms passed in the Chamber fairly quickly.
It should be noted that in Article 4 of his amendment Bastiat calls for the radical step of eliminating the government's monopoly of carrying letters and opening the business up to private competition. He says that the criminalisation of private letter carrying creates an "artificial crime" out of what is essentially an "innocent" act.
TextCitizen President: 1091 The budget report previously discussed will be printed and distributed. We will now take up the discussion of the tax on letters. Concerning Article 1. Frédéric Bastiat proposes an amendment which is a kind of counter-proposal. Here is the amendment:
Article 1. From January 1, 1849 the Postal Administration will only carry and deliver to the home letters which weigh 10 grams and below, and which have a post mark and stamps intended to show that franking has occurred.
Article 2. These stamps will be sold for 5 centimes by the postal administration.
Article 3. Letters and packages of papers above 10 grams and not exceeding 100 grams will be franked at the post office by a postal official who will affix a stamp, the price of which will be 1 franc.
Article 4. All laws concerning the carrying of letters by any other means other than the post office, are repealed.
M. Bastiat has the floor to speak to his amendment.
Citizen Goudchaux (the Minister of Finance): First, we need to know if the amendment has any support.
Several Members of the Assembly: The proposer of an amendment always has the right to speak to it.
Citizen Frédéric Bastiat: Citizens, I only need a very few words to speak to my amendment.
The Minister of Finance told you a little while ago that correspondence is nothing more than the communication of ideas and sentiments by the written word, and he concluded with good reason in my view, that if the Government intervenes in this communication it should be in order to facilitate rather than to hinder this communication. And from this he further concluded that the Government ought to content itself with covering the costs of this service rendered and not imposing a tax on this service (as well).
My amendment has no other purpose than to realise this program, which I believe will not be realised by the proposal of the Government and the Finance Committee.
Allow me to first say something about the principle itself.
The spread of ideas, communication between people, that is precisely, even the very essence of what society is. It is from this communication that spring wealth, business activity, civilisation itself, and even taxes. So it seems contradictory to me to impose a tax on this communication.
I appreciate the fact that the Government might impose a tax on any other thing in order to encourage that communication; but that it would impose a tax on that communication (itself) seems to me to be contradictory. Every day we vote for taxes to encourage the movement of men and things, we build roads, canals, railroads, which we provide free of charge to the public, and then we hinder the transmission of ideas with taxes! I say that the Government should not make a profit out of providing this service. This is a principle which extends throughout almost all of Europe. England has fully gone down this path. In the United States the government bears the costs, and these costs are enormous, in order to spare those who wish to correspond with each other. 1092 Finally, even in Austria, this principle has recently been adopted.
If this principle is correct, Messieurs, it is a question of only one thing, it is to find out if the extremely modest price of 5 centimes, 1093 a price which has raised a few murmurs in this Assembly, is a price which will cover the costs of the postal service. As far as I am concerned, I say yes, especially if one takes the amendment in its entirety. I will make a few calculations below to show you.
The cost of the postal system is quite close to 30 million francs. 1094 What does the postal system bring to us and what does it deliver for us? It delivers three types of things: firstly a multitude of newspapers. Please note that these newspapers are subject to the same legislation which I am proposing here today for letters, and such is the power of habit, that what appears to you to be quite extraordinary is carried out under your very noses every single day with regard to newspapers. Yet today you find it peculiar when I suggest we do the same thing with letters. The postal service delivers in this way newspapers which weigh, if I am not mistake, 900 kilograms.
Next, the postal service delivers all the dispatches of the government administration the weight of which exceeds 1,000 to 1,1000 kilograms.
Finally, it delivers letters the weight of which is not equal to either newspapers or the administrative dispatches.
As a result, if you divide this cost of 30 or 35 million francs by these three services, you will see that you cannot attribute more than 12 million francs to the cost of carrying letters.
Well then, if all letters paid a tax of 5 centimes there is no doubt that a cost of 12 or 15 million francs would be easily covered, since it would require 3 hundred million letters (to be sent) to raise 15 million francs; and it is is very possible to believe that with a tax of 5 centimes the number of letters sent, which today stands at 130 million, would very quickly reach 300 million letters. 1095
Messieurs, I agree that the price of a stamp is extremely low; but this extraordinary drop in price is a key part of the proposal that I am putting to you. Please note, that when the administration wants to make a profit, that is to say impose a tax on the transport of letters, it is obliged to do something which I personally find extraordinary, namely by doing the very thing it undertakes, it invites industries to compete with it. It is therefore forced to arm itself against them by using the law. It puts everybody who wishes to correspond with each other, and that is to say the entire nation, into the following position: it says to them, "Only I alone will deliver your correspondence, and I forbid you, under the criminal code, to correspond with each other by any other means except for what I offer you, even if this means that it will cost you 5, 6, 7, 8, or sometimes 20 times the price of the service I provide.
That seems to me to be exorbitant.
Whatever price you adopt, if it exceeds the value of the service rendered, that alone is sufficient to attract competition to the postal system and will lead you to add to the number of crimes in the legal Code, an action which is extremely moral in itself.
This is something I wished to avoid. My first desire was to be able to remove from our legal code these artificial crimes which I would like to see no longer play any part. To carry a letter for a friend is in itself a completely innocent act, and it is upsetting that the law is forced to punish it as a crime. It is by adopting a radical reform, like the one I am proposing to you, that you will be able to make this sad anomalie disappear.
With my amendment you will also be able to achieve another result, that is you will be able to require obligatory stamping, 1096 firstly because no one will object to a price of 5 centimes, and then the postal service will be acting according to the law. When the postal system prohibits the free communication of ideas by any other means other than silence, it is obvious that it cannot then say to people "You will be forced to accept my services and to pay for them in advance at a price which exceeds your ability to pay." But from the moment when it allows all the means of transmitting ideas go free it can then say "If you wish, I will charge you for the transport, but on one condition, and that condition is that there is the obligatory payment of a 5 centimes stamp."
This leads us to another result, which is that from the moment you introduce this system you will do away with with the same blow the bureaucratic accounting procedures of the entire postal system, which not a small thing.
We are always busy trying to simplify services, we content ourselves with making a small cut here or some economy there, and we don't pay attention to the fact that we cannot achieve a serious economic reform if the administration of the postal system remains what it is today.
So, if you introduce obligatory stamping at a rate of 5 centimes, from that very moment you will eliminate all the bureaucratic accounting procedures of the postal service.
The Minister of Finance provided you with the details a short time ago. But I don't think he showed you how it really is. The Minister told you that a letter might belong to one of twenty different categories. I would say that it might belong to one of 200 different categories. There are (currently) 8 categories for distance carried and 9 for weight, which makes 28 categories. The the letter might be refused by the recipient or accepted by the recipient; stamped or not stamped. This is a multiplication of categories which could go on for ever. 1097 Please note that there is not a single letter which the post-master isn't required to assign to its proper category. It is work of the most minute detail and then comes the checking of this bureaucratic procedure. It is truly a frightening masterpiece of work, a financial tour de force, to be able to manage thousands of post-masters strewn across the entire surface of the country and collecting hundreds of millions of francs in small fractions of 20 to 30 centimes. All this leads to inspections, processing, filling out forms, endless correspondence, expences of all kinds, all of which would no longer exist in the system I am proposing.
In my system it is sufficient to have single distributors of mail who would have very little to do, because it would be sufficient for them to do what they already do for newspapers, which is certainly very simple.
Indeed, look at what happens now with newspapers. Ask the administrators, the postal employees, and what they will tell you is that the newspapers cause them a quarter, a tenth, or one hundredth the trouble which delivering letters causes them. In fact, since the newspapers arrive already stamped, there is nothing more to do than deliver them.
There is the economy in my plan. I cannot better explain it to you than to say I will subject letters to the same régime which is applied today to newspapers with such benefits.
My reform is radical, I agree, but I think it is appropriate that the Republic encourage true principles, to exempt from tax those things it is not proper, to remove from the list of crimes actions which are innocent, to simplify the wheels of bureaucracy, and especially in our thinking about fiscal matters to refrain from hindering the circulation of opinions and ideas, an act which strikes at the heart of society and civilisation.
1088 ES2 12 "Salt, the Mail, and the Customs Service" (May 1846), in CW3, pp. 198-214.
1089 ES2 12, CW3, p. 210.
1090 See the Appendix on "French Government Finances."???
1091 Armand Marrast was President of the Constituent Assembly between 19 July 1848 and 26 May 1849 when the new Legislative Assembly was elected.
1092 The United States Postal Service introduced its first stamp in July 1847. A 5 cent stamp was required to send a letter weighing less than 1 oz (28 g) and being carried less than 300 miles. It cost a 10-cent stamp to deliver mail to locations greater than 300 miles, or twice the weight. A less positive view of the U.S. government postal monopoly was provided by the American individualist Lysander Spooner in The Unconstitutionality of the Laws of Congress, prohibiting Private Mails (New York: Tribune Printing Establishment, 1844). He attempted to start his own mail company to compete with it but his effort was declared to be illegal and it was quickly shut down. This kind of action by the government is what he wanted to prevent with his Article 4 of the amendment.
1093 To get some idea of relative costs, in the city of Paris at this time a worker in the printing industry earned on average 4 fr. 18 c. per day which was quite high compared to the lowest rates which were earned in the textile industry of 3 fr. 34 c. per day. The price of a 2 kg (4.4 lb) loaf of bread fluctuated between 50 c. and 87.50 c. A copy of Bastiat's Economic Sophisms sold for 1 fr (100 c.) in a special popular edition.
1094 The government spent 34.5 million fr. (1848) in administering and collecting the taxes on carrying letters.
1095 In 1847 the number of letters sent through the French post was 125 million which generated fr. 53 million in revenue for the state. The letter tax was reduced in 1849 to 20 centimes which raised the number of letters sent to 157 million in that year (a 25.6% increase) and reduced the tax revenue to fr. 42 million (a 20.7% decrease). In England it took 12 years after the Postal reform of 1839 for revenues to return to what they had been before the reform. During this time however, the number of letters sent had increased nearly 500% from 76 million in 1839 to 360 million letters in 1851. See C.S. "Postes, DEP, vol. 2, pp. 421-24, and the Appendix on "French Government Finances in 1848-49."
1096 He means the prepayment of a stamp before delivery.
1097 See the very amusing satire of how this worked in practice in ES2 12 "Salt, the Mail, and the Customs Service" (May 1846), in CW3, pp. 198-214.
T.222 (1848.09.25) "The State" (JDD, Sept. 1848)↩
SourceT.222 (1848.09.25) "The State" (L’État), Journal des Débats, 25 Sept. 1848, pp. 1-2; also published as a pamphlet: L’État. Maudit argent! (The State. Damned Money) (Paris: Guillaumin, 1849). [OC4, pp. 327-41.] [CW2.7, pp. 93-104.]
Editor's Note[to come]
TextI would like someone to sponsor a prize, not of five hundred francs but of a million, with crowns, crosses, and ribbons for whoever can provide a good, simple, and understandable definition of the words “the state.”
What a huge service this person would be doing to society!
The state! What is this? Where is it? What does it do? What ought it to be doing?
All we know about it is that it is a mysterious being and is definitely the one that is most solicited and most tormented and is the busiest; the one to whom the most advice is given; the one most accused, most invoked, and most provoked in the world.
For, sir, I do not have the honor of knowing you, but I will bet ten to one that for the last six months you have been constructing utopias; and if you have been doing so, I will bet ten to one that you are making the state responsible for bringing them into existence.
And you, madam, I am certain that in your heart of hearts you would like to cure all the suffering of humanity and that you would not be in the slightest put out if the state just wanted to help in this.
But alas! The unfortunate being, like Figaro, does not know whom to listen to nor which way to turn. The hundred thousand voices of the press and the tribune are all calling out to this being at once:
- Organize work and the workers.
- Root out selfishness.
- Repress the insolence and tyranny of capital.
- Carry out experiments on manure and eggs.
- Criss-cross the country with railways.
- Irrigate the plains.[94]
- Reforest the mountains.
- Set up model farms.
- Set up harmonious workshops.
- Colonize Algeria.
- Provide children with milk.
- Educate the young.
- Succor the elderly.
- Send the inhabitants of towns to the country.
- Bear hard on the profits of all industries.
- Lend money interest free to those who want it.
- Liberate Italy, Poland, and Hungary.
- Breed and improve saddle horses.
- Encourage art and train musicians and dancers for us.
- Prohibit trade and at the same time create a merchant navy.
- Discover truth and toss into our heads a grain of reason. The mission of the state is to enlighten, develop, expand, fortify, spiritualize, and sanctify the souls of peoples.1
“Oh, sirs, have a little patience,” the state replies pitifully. “I will try to satisfy you, but I need some resources to do this. I have prepared some projects relating to five or six bright, new taxes that are the most benign the world has ever seen. You will see how pleased you will be to pay them.”
At that, a great cry arises: “Just a minute! Where is the merit in doing something with resources? It would not be worth calling yourself the state. Far from imposing new taxes on us, we demand that you remove the old ones. You must abolish:
- The tax on salt;2
- The tax on wines and spirits;
- Postage tax;[95]
- City tolls;3
- Trading taxes;4
- Mandatory community service.”5
In the middle of this tumult, and after the country has changed its state two or three times because it has failed to satisfy all these demands, I wanted to point out that they were contradictory. Good heavens, what was I thinking of? Could I not keep this unfortunate remark to myself?
Here I am, discredited forever, and it is now generally accepted that I am a man without heart or feelings of pity, a dry philosopher, an individualist, a bourgeois, and, to sum it up in a single word, an economist of the English or American school.
Oh, excuse me, you sublime writers whom nothing stops, not even contradictions. I am doubtless mistaken, and I most willingly retract my statements. I do not ask for more, you may be sure, than that you have genuinely discovered, independently from us, a bountiful and inexhaustible being that calls itself the state, which has bread for every mouth, work for every arm, capital for all businesses, credit for all projects, oil for all wounds, balm [96] for all suffering, advice for all perplexities, solutions for all doubts, truths for all intelligent minds, distractions for all forms of boredom, milk for children, wine for the elderly, a being that meets all our needs, anticipates all our desires, satisfies all our curiosity, corrects all our errors and all our faults, and relieves us all henceforth of the need for foresight, prudence, judgment, wisdom, experience, order, economy, temperance, and activity.
And why would I not desire this? May God forgive me, but the more I reflect on this, the more the convenience of the thing appeals to me, and I too am anxious to have access to this inexhaustible source of wealth and enlightenment, this universal doctor and infallible counsellor that you are calling the state.
This being so, I ask you to show it to me and define it for me, and this is why I am proposing the establishment of a prize for the first person who discovers this phoenix. For in the end, people will agree with me that this precious discovery has not yet been made, since up to now all that has come forward under the name of the state has been overturned instantly by the people, precisely because it does not fulfill the somewhat contradictory conditions of the program.
Does this need to be said? I fear that we are, in this respect, the dupes of one of the strangest illusions ever to have taken hold of the human mind.
Man rejects pain and suffering. And yet he is condemned by nature to the suffering privation brings if he does not embark upon the pain of work. All he has, therefore, is a choice between these two evils. How can he avoid both? Up to now, he has only found and will only ever find one means, that is, to enjoy the work of others, to act in such a way that pain and satisfaction do not accrue to each person in accordance with natural proportions, but that all pain accrues to some and all satisfaction to the others. From this we get slavery or even plunder, in whatever form it takes: wars, imposture, violence, restrictions, fraud, etc., all monstrous forms of abuse but in line with the thought that has given rise to them. We should hate and combat oppressors, but we cannot say that they are absurd.
Slavery is receding, thank heaven, and on the other hand, our aptitude for defending our property means that direct and crude plunder is not easy to do. However, one thing has remained. It is this unfortunate primitive tendency within all men to divide into two our complex human lot, shifting pain onto others and keeping satisfaction for themselves. It remains to be seen in what new form this sorry tendency will manifest itself.
Oppressors no longer act directly on the oppressed using their own [97] forces. No, our conscience has become too scrupulous for that. There are still tyrants and victims certainly, but between them has placed itself the intermediary that is the state, that is to say, the law itself. What is more calculated to silence our scruples and, perhaps more appealing, to overcome our resistance? For this reason, we all make calls upon the state on one ground or pretext or another. We tell it, “I do not consider that there is a satisfactory relation between the goods I enjoy and my work. I would like to take a little from the property of others to establish the balance I desire. But this is dangerous. Can you not make my task easier? Could you not provide me with a good position? Or else hinder the production of my competitors? Or else make me an interest-free loan of the capital you have taken from its owners? Or raise my children at public expense? Or award me subsidies? Or ensure my well-being when I reach the age of fifty? By these means I will achieve my aim with a perfectly clear conscience, since the law itself will have acted on my behalf and I will achieve all the advantages of plunder without ever having incurred either its risks or opprobrium!
As it is certain, on the one hand, that we all address more or less similar requests to the state and, on the other, it is plain that the state cannot procure satisfaction for some without adding to the work of the others, while waiting for a new definition of the state I think I am authorized to give my own here. Who knows whether it will not carry off the prize? Here it is:
The state is the great fiction by which everyone endeavors to live at the expense of everyone else.
For today, as in the past, each person more or less wants to profit from the work of others. We do not dare display this sentiment; we even hide it from ourselves, and then what do we do? We design an intermediary, we address ourselves to the state, and each class in turn comes forward to say to it, “You who can take things straightforwardly and honestly, take something from the general public and we will share it.” Alas! The state has a very ready tendency to follow this diabolical advice as it is made up of ministers and civil servants, in short, men, who like all men are filled with the desire and are always quick to seize the opportunity to see their wealth and influence increase. The state is therefore quick to understand the profit it can make from the role that the general public has entrusted to it. It will be the arbiter and master of every destiny. It will take a great deal; therefore a great deal will remain to it. It will increase the number of its agents and widen the circle of its attributions. It will end by achieving crushing proportions.
But what we should clearly note is the astonishing blindness of the general [98] public in all this. When happy soldiers reduced the conquered to slavery, they were barbaric, but they were not absurd. Their aim, like ours, was to live at someone else’s expense, but they did not fail to do so like us. What ought we to think of a people who do not appear to have any idea that reciprocal pillage is no less pillage because it is reciprocal, that it is no less criminal because it is executed legally and in an orderly fashion, that it adds nothing to public well-being, and that, on the contrary, it reduces well-being by everything that this spendthrift of an intermediary that we call the state costs us?
And we have placed this great illusion at the forefront of the Constitution to edify the people. These are the opening words of the preamble:
France has set itself up as a republic in order to . . . call all its citizens to an increasingly higher level of morality, enlightenment, and well-being.
Thus, it is France, an abstraction, that calls French citizens, real persons, to morality, well-being, etc. Is it not wholeheartedly going along with this strange illusion that leads us to expect everything from some energy other than our own? Does it not give rise to the idea that there is, at hand and outside the French people, a being that is virtuous, enlightened, and rich that can and ought to pour benefits over them? Is it not to presume, quite gratuitously of course, that there is between France and the French, between the simple, abbreviated, abstract name of all these unique individuals and these individuals themselves, a relationship of father and child, tutor and pupil, teacher and schoolchild? I am fully aware that it is sometimes metaphorically said that the fatherland is a tender mother. However, to catch a constitutional proposition in flagrant inanity, you need to show only that it can be inverted, not without inconvenience but even advantageously. Would accuracy have suffered if the preamble had said:
The French people have set themselves up as a republic in order to call France to an increasingly higher level of morality, enlightenment, and well-being?
Well, what is the value of an axiom in which the subject and attribute can change places without causing trouble? Everyone understands that you can say: “Mothers suckle their children.” But it would be ridiculous to say: “Children suckle their mothers.”
The Americans had another concept of the relationship between citizens [99] and the state when they placed at the head of their Constitution these simple words:
We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain, etc.6
Here we have no illusions, no abstraction from which its citizens ask everything. They do not expect anything other than from themselves and their own energy. They place no expectations on anything other than themselves and their own energy. Or they place their expectations only on themselves and their own energy.
If I have taken the liberty of criticizing the opening words of our Constitution, it is because it is not a question, as one might believe, of wholly metaphysical subtlety. I claim that this personification of the state has been in the past and will be in the future a rich source of calamities and revolutions.
Here are the public on one side and the state on the other, considered to be two distinct beings, the latter obliged to spread over the former and the former having the right to claim from the latter a flood of human happiness. What is bound to happen?
In fact, the state is not and cannot be one-handed. It has two hands, one to receive and the other to give; in other words, the rough hand and the gentle hand. The activity of the second is of necessity subordinate to the activity of the first. Strictly speaking, the state is able to take and not give back. This has been seen and is explained by the porous and absorbent nature of its hands, which always retain part and sometimes all of what they touch. But what has never been seen, will never be seen, and cannot even be conceived is that the state will give to the general public more than it has taken from them. It is therefore a sublime folly for us to adopt toward the state the humble attitude of beggars. It is radically impossible for the state to confer a particular advantage on some of the individuals who make up the community without inflicting greater damage on the community as a whole.
The state therefore finds itself, because of our demands, in an obvious vicious circle.
If the state refuses to supply the services being demanded of it, it is accused of impotence, lack of willpower, and incapacity. If it tries to provide them, [100] it is reduced to inflicting redoubled taxes on the people, doing more harm than good, and attracting to itself general dislike from the other direction.
Thus there are two hopes in the general public and two promises in the government: a host of benefits and no taxes. Hopes and promises that, since they are contradictory, can never be achieved.
Then is this not the cause of all our revolutions? For between the state, which is hugely generous with impossible promises, and the general public, which has conceived unattainable hopes, have come two classes of men, those with ambition and those with utopian dreams. Their role is clearly laid out by the situation. It is enough for these courtiers of popularity to shout into the people’s ears: “The authorities are misleading you; if we were in their place, we would shower you with benefits and relieve you of taxes.”
And the people believe this, and the people hope, and the people stage a revolution.
No sooner are their friends in power than they are required to fulfill these promises. “So give me work, bread, assistance, credit, education, and colonies,” say the people, “and notwithstanding this, deliver me from the clutches of the tax authorities as you promised.”
The new state is no less embarrassed than the former state since, when it comes to the impossible, promises may well be made but not kept. It tries to play for time, which it needs to bring its huge projects to fruition. First of all, it tries a few things timidly: on the one hand, it expands primary education a little; second, it makes slight modifications to the tax on wines and spirits.7 But the contradiction still stands squarely before it; if it wants to be philanthropic it is obliged to maintain taxes, and if it renounces taxation it is also obliged to renounce philanthropy.
These two promises always, and of necessity, block each other. Making use of borrowing, in other words consuming the future, is really a current means of reconciling them; efforts are made to do a little good in the present at the expense of a great deal of evil in the future. However, this procedure evokes the specter of bankruptcy, which chases credit away. What is to be done then? The new state in this case takes its medicine bravely. It calls together forces to keep itself in power, it stifles public opinion, it has recourse to arbitrary decisions, it calls down ridicule on its former maxims, and it declares that administration can be carried out only at the cost of being unpopular. In short, it proclaims itself to be governmental.
[101]And it is at this point that other courtiers of popularity lie in wait. They exploit the same illusion, go down the same road, obtain the same success, and within a short time are engulfed in the same abyss.
This is the situation we reached in February.8 At that time, the illusion that is the subject of this article had penetrated even further into the minds of the people, together with socialist doctrines. More than ever, the people expected the state, in its republican robes, to open wide the tap of bounty and close that of taxation. “We have oft en been misled,” said the people, “but we ourselves will see to it that we are not misled once again.”
What could the provisional government do? Alas, only what has always been done in a like situation: make promises and play for time. The government did not hesitate to do this, and to give their promises more solemnity they set them in decrees. “An increase in well-being, a reduction of work, assistance, credit, free education, farming colonies, land clearance, and at the same time a reduction in the tax on salt, on wine and spirits, on postage, on meat, all this will be granted . . . when the National Assembly meets.”
The National Assembly met, and since two contradictory things cannot be achieved, its task, its sad task was to withdraw as gently as possible and one after the other all the decrees of the provisional government.
However, in order not to make the disappointment too cruel, a few compromises simply had to be undertaken. A few commitments have been maintained, and others have been started to a small degree. The current government is therefore endeavoring to dream up new taxes.
At this point, I will move forward in thought to a few months in the future and ask myself, with iron in my soul, what will happen when a new breed of agents goes into the countryside to raise the new taxes on inheritance, on income, and on farming profits. May the heavens give the lie to my presentiments, but I can still see a role in this for the courtiers of popularity.
Read the latest Manifesto of the Montagnards,9 the one they issued regarding the presidential elections. It is a bit long, but in the end it can be briefly summarized thus: The state must give a great deal to its citizens and [102] take very little from them. This is always the same tactic, or if you prefer, the same error.
The state owes “free instruction and education to all its citizens.”
It owes:
“General and vocational education that is as appropriate as possible to the needs, vocations, and capacities of each citizen.”
It must:
“Teach him his duties toward God, men, and himself; develop his sensibilities, aptitudes, and faculties; and in short, give him the knowledge needed for his work, the enlightenment needed for his interests, and a knowledge of his rights.”
It must:
“Make available to everybody literature and the arts, the heritage of thought, the treasures of the mind, and all the intellectual enjoyment that elevates and strengthens the soul.”
It must:
“Put right any accident, fire, flood, etc. (this et cetera says far more than its small size would suggest), experienced by a citizen.”
It must:
“Intervene in business and labor relations and make itself the regulator of credit.”
It owes:
“Well-founded encouragement and effective protection to farmers.”
It must:
“Buy back the railways, canals, and mines,” and doubtless also run them with its legendary capacity for industry.”
It must:
“Stimulate generous initiatives, encourage them, and help them with all the resources needed to make them a triumphant success. As the regulator of credit, it will sponsor manufacturing and farming associations liberally in order to ensure their success.”
The state has to do all this without prejudicing the services which it currently carries out; and, for example, it will have to maintain a constantly hostile attitude toward foreigners since, as the signatories of the program state, “bound by this sacred solidarity and by the precedents of republican France, we send our promises made on high and our hopes soaring across the barriers that despotism raises between nations: the right we wish for [103] ourselves we also wish for all those oppressed by the yoke of tyranny. We want our glorious army to continue to be, if necessary, the army of freedom.”
As you can see, the gentle hand of the state, that sweet hand that gives and spreads benefits widely, will be fully occupied under the Montagnard government. Might you perhaps be disposed to believe that this will be just as true of the rough hand that goes rummaging and rifling in our pockets?
Don’t you believe it! The courtiers of popularity would not be masters of their trade if they did not have the art of hiding an iron fist in a velvet glove.
Their reign will certainly be a cause for celebration for taxpayers.
“Taxes must reach the superfluous, not the essentials,” they say.
Would it not be a fine day if, in order to shower us with benefits, the tax authorities were content to make a hole in our superfluous assets?
That is not all. The aim of the Montagnards is that “taxes will lose their oppressive character and become just a fraternal act.”
Good heavens! I was well aware that it is fashionable to shove fraternity in everywhere, but I did not think it could be inserted into the tax collector’s notice.
Coming down to detail, the signatories of the program say:
“We want the taxes levied on objects of first necessity, such as salt, wines and spirits, et cetera, to be abolished immediately;
“The land tax, city tolls, and industrial licenses to be reformed;
“Justice free of charge, that is to say, a simplification of the forms and a reduction in the fees” (this is doubtless intended to milk the stamp duty).
Thus, land tax, city tolls, industrial licenses, stamp duty, salt tax, tax on wine and spirits,10 and postage would all go. These gentlemen have found the secret of giving feverish activity to the gentle hand of the state while paralyzing its rough hand.
Well then, I ask the impartial reader, is this not childishness and, what is more, dangerous childishness? What is to stop the people mounting revolution after revolution once the decision has been taken not to stop doing so until the following contradiction has been achieved: “Give nothing to the state and receive a great deal from it”?
Do people believe that if the Montagnards came to power they would not be victims of the means they employed to seize it?
Fellow citizens, since time immemorial two political systems have confronted [104] one another and both have good arguments to support them. According to one, the state has to do a great deal, but it also has to take a great deal. According to the other, its twin action should be little felt. A choice has to be made between these two systems. But as for the third system, which takes from the two others and which consists in demanding everything from the state while giving it nothing, this is illusionary, absurd, puerile, contradictory, and dangerous. Those who advocate it to give themselves the pleasure of accusing all forms of government of impotence, and of thus exposing them to your blows, those people are flattering and deceiving you, or at the very least they are deceiving themselves.
As for us, we consider that the state is not, nor should it be, anything other than a common force, instituted not to be an instrument of mutual oppression and plunder between all of its citizens, but on the contrary to guarantee to each person his own property and ensure the reign of justice and security.11
(Paillottet’s note) This last sentence is from M. de Lamartine. The author quotes it again in the pamphlet that follows. (OC, vol. 4, p. 342, “La Loi.” [The sentence itself is found on p. 387.])
Before the Revolution of 1789 the salt tax was known as the “gabelle.” Because of its symbolic association with the ancien régime, it was much hated and was one of the first things abolished after the Revolution. However, it soon returned as a more straightforward “salt tax.” See Coquelin, “Gabelle,” in Le Dictionnaire de l’économie politique, vol. 1, pp. 814–15.
The word Bastiat uses is “octrois,” a form of hated taxes during the pre-Revolutionary period. An octroi was a consumption tax levied by a town or city in order to pay for the activities of the communal administration. It was much abused during the ancien régime because it was “farmed out” to private contractors. Although the octroi was abolished in the early years of the Revolution, it was reintroduced by the city of Paris in 1798. See Esquirou de Parieu, “Octrois,” in Coquelin, Dictionnaire de l’économie politique, vol. 2, pp. 284–91.
The word Bastiat uses is “patentes,” direct taxes imposed on any individual who carried out a trade, occupation, or profession. The patentes were first imposed in 1791 by the Constituent Assembly and were completely reformulated in 1844.
The French word used here is “prestations,” which is an abbreviation of “prestations en nature” (or “obligatory services in kind”), according to which all able-bodied men were expected to spend two days a year maintaining roads in and around their towns. The prestations were a reform of the much-hated and burdensome compulsory labor obligations known as the “corvée,” dating from the ancien régime. The corvée was abolished by Turgot in 1776; however, it returned, as did the “gabelle” (salt tax), in a less onerous form during the Consulate period under Napoléon, only to be abolished again in 1818. Under the law of 1824 the modern form of the prestations was introduced, whereby the compulsory labor was used only for local roads. A further modification took place in 1836, when the labor service could be commuted to the payment of a monetary equivalent. See also Courcelle-Seneuil, “Prestations,” in Coquelin, Dictionnaire de l’économie politique, vol. 2, pp. 428–30.
We have used the original English wording for the words of the Constitution.
1830.
Revolution of 1848.
During the Second Republic deputies on the extreme left adopted the name “Montagnards” (or Mountain), which had first been used during the French Revolution by Robespierre and his supporters. See also the entry for “La Montagne” in the Glossary of Subjects and Terms and the entry for “Robespierre, Maximilien de,” in the Glossary of Persons.
See the entry “Wine and Spirits Tax” in the Glossary of Subjects and Terms.
(Paillottet’s note) See chapter 17 of the Harmonies in vol. 6 and the small work dated 1830 titled “To the Electors of the Département of the Landes,” in vol. 1. (OC, vol. 6, p. 535, “Services privés, service publique”; and vol. 1, p. 217, “Aux électeurs du département des Landes.)
T.223 "Economic Harmonies: I, II, and III. The Needs of Man" (1 Sept., 1848, JDE)↩
SourceT.223 (1848.09.01) "Economic Harmonies: I., II., and III. The Needs of Man" (Harmonies économiques. I, II, III .Des besoins de l'homme), JDE , T. XXI, No. 87, 1 Sept. 1848, pp. 105-20; also in EH 1-3. [OC6] [CW5 and CW4]
Editor's IntroductionThese three essays entitled "Economic Harmonies: I., II., and III." (Sept. JDE) and a 4th entitled "Economic Harmonies: IV." (Dec. JDE) reveal that Bastiat was serious about writing an economic treatise which would eventually be called Economic Harmonies . 1098 He had begun in the late summer or fall of 1847 to give some lectures to law students in Paris and even wrote an ironic "Draft Preface" for the planed book in which he expressed his hopes and fears for the project. 1099 He had already written two major essays in 1846 on Population (EH2 16) and Competition (EH1 10) which would find their way eventually into the treatise. 1100 After a very busy year (1847) working full-time for the French Free Trade Association speaking at meetings and editing the weekly journal Le Libre-Échange he managed to find time at the end of the year to write another important introductory chapter on "Artificial and Natural Organisations" which was published in the January 1848 issue of the JDE. 1101 This would become the first chapter of the treatise (unnumbered in EH1, chapter 1 in EH2).
However, whatever plans he might have had to continue working on the book evaporated when revolution broke out in late February 1848, forcing the king to abdicate, the regime to collapse, and the Second Republic to be proclaimed. Bastiat had already resigned as editor of Le Libre-Échange on 13 February because of his failing health and his leadership role in the FFTA came to an end when the executive board decided to close down the association on 15 March in order to focus all their energy and resources on influencing the policies of the Provisional Government under Lamartine (a supposed ally). They also wanted to fight the rise of the socialists under Louis Blanc who had seized control of the Luxembourg Palace from which he ran National Workshops program. Bastiat initially turned to journalism, launching with Gustave de Molinari and other friends the daily newspaper La République française (26 Feb. to 28 March), then standing successfully for election in April to represent Les Landes in the new Constituent Assembly. Politics kept him very busy over the summer writing anti-socialist pamphlets, launching another revolutionary street magazine, Jacques Bonhomme (11 June to 13 July), speaking in the Chamber, and serving as VP of the Finance Committee. So it is not until late summer that he found the time to return to work on his treatise. The result were these four pieces which would eventually become the first three numbered chapters in EH1 (I. Economic Harmonies, II. Needs, Efforts, and Satisfactions, III. The Needs of Man) which were then rearranged and renumbered for EH2 (II. Needs, Efforts, and Satisfactions, III. The Needs of Man).
The first half of 1849 found Bastiat distracted again from working on his book. He wrote several essays on money and credit, 1102 topics which he planned to have in the treatise, but the pieces he wrote were more popular or polemical in style and less suitable to be part of a work of theory. He also gave several speeches in the Chamber 1103 and had to stand for re-election in May for the new Legislative Assembly. To help him focus on his major work, some friends helped him rent Louis XIV's old hunting lodge, Butard, in some woods outside Paris so he could work on the book over the summer of 1849. 1104 He probably used this time to work on chapters IV-IX on Exchange, Value, Wealth, Capital, Property and Community, and Landed Property. He was able to get these chapters into shape ready for publication by the end of the year as EH1 appeared early in the new year (January 1850). The rest of 1849 was taken up with more speeches in the Chamber, and his participation in a big international Friends of Peace Conference held in Paris in August 1849 (at which Bastiat gave a major speech), 1105 which led to another visit to England in October to attend a Peace Conference in Bradford, and possibly to speak with Cobden secretly on behalf of the French government on the possibility of a joint disarmament agreement between France and Britain. 1106
In spite of his rapidly failing health (he had to take a leave of absence from the Chamber in February 1850), he had another flurry of activity over the summer of 1850 when he had returned to Mugron and a local spa town for rest. He did not work on his treatise but found time to write some of his best known works, The Law (June 1850) and WSWNS (July 1850). 1107 The second part of EH was reconstructed by his friends Paillottet and Fontenay out of his surviving papers and was published in July 1851 with 15 additional chapters or parts of chapters.
Since these essays appeared after the June Days riots it is not surprising that Bastiat spends some time criticising socialist ideas about reorganising society, or what he calls "utopian delusions," especially those of Rousseau and his followers. He challenges their argument that human interests are naturally in conflict and that the only way to remove this conflict is to have a "Prince," or a "Legislator," or a social "Mechanic" redesign society from the ground up.
In Section II he lays out the foundation upon which his theory of political economy rests. He sees the individual as "un être actif" (an acting being) who is capable of sensing the world about him or her. Each individual can feel both pleasure and pain, and seeks to increase the former and avoid the latter. From "sensation" the individual acquires "desires, appetites, and needs". From "action" come the ideas of "effort, fatigue, work, and production" in order to satisfy those desires and needs. From "satisfaction" arise ideas about "pleasure, enjoyment, and consumption." From these notions come the three basic principles of Bastiat's treatise, namely "Needs, Efforts, and Satisfactions."
Other important ideas which he covers in "Economic Harmonies I, II, III" include the following:
- the idea of "human action" which is strikingly similar to that of the later Austrian school of economics 1108
- he discusses at some length the neglected but important idea of non-material goods or "services" which will become a very important part of his theory of exchange (that "exchange is the mutual exchange of a service for another service") in EH Chap. IV "Exchange" 1109
- the idea that human needs are unlimited in nature and not a fixed quantity. Instead, they form a "ladder" or hierarchy with the most urgent needs being satisfied first, followed by the others in order of urgency as one becomes more prosperous
In Section IV 1110 some of his key ideas are:
- that the only way to satisfy one's own needs is to cooperate with others in satisfying their needs
- his observations about human bahaviour are "truths" which should be obvious to anybody who "acts" to achieve certain goals. Again, his idea are very similar to the idea of "apriorism" of the Austrian school 1111
- that utility comes from a combination of "the free gifts of nature" (material things and forces of nature) and human labor or action
- the importance of accumulating capital in order to make work easier
- that man is unique because he has "the ability to organize his affairs, to plan for the future, to exercise control over himself, and to economise or save for the future."
- there is a brief mention of the importance of the interests of consumers
Section I was untitled in the JDE article. In EH1 it was given the title "Economic Harmonies." 1112 In EH2 it formed the first part of Chap. III "Needs, Efforts, Satisfactions". 1113
Changes to Section I in the later versions included some minor word changes (which are indicated in the footnotes) and the insertion of a footnote with a quotation from a book by Victor Considerant on the free market economy as "a social hell," and a new sentence about disturbing factors at the end of second last paragraph. The latter reflected Bastiat's growing interest in what types of government interventions disturbed the natural harmony which arose when individuals interacted voluntarily with each other in a free market. 1114
Section II, with the opening line "The Subject of Political Economy is Man," was extensively rewritten for EH1 (1850) where it appeared as Chap. II "Besoins, Efforts, Satisfactions" (Needs, Efforts, and Satisfactions), pp. 60-72. In EH2 (1851) it became the second part of Chap. III "Needs, Efforts, Satisfactions," pp. 39-47.
Section II was extensively rewritten in the later versions. In addition to several minor word changes, he inserted two new paragraphs in EH in which he replies to criticisms that political economy is too concerned with "self-interest" and ignores "poetry"; a new 800 word section on self-interest, progress, and harmony and disharmony; and a new 400 word section on utility which is gratuitous or free of charge. He also cut a large 1,200 word section from the JDE article which did not appear in the EH version. This dealt with Bastiat's differences with his intellectual forebears like Adam Smith and J.B. Say over what constituted the proper subject matter of political economy, and the importance of "non-material goods" or services provided by people such as magistrates, authors, priests, justices, and artists like the Spanish opera singer Malibran. 1115 Bastiat thought Say in his Cours was much better than Smith on this subject but his work was still incomplete in his view.
Section III, with the opening line "On the Needs of Man" was reused in EH but with the addition of several new pages. In EH1 (1850) it appeared as the first part of Chap. III "Des Besoins de l'homme" (The Needs of Man), pp. 73-87. In EH2 (1851) it appeared as Chap. III "Des Besoins de l'homme" (The Needs of Man), pp. 48-58.
Changes made to Section III in the EH versions include minor words changes or additions, but most notably the insertion of a new 700 word section in which he discusses the relationship between wealth and virtue and vice, and the appearance of "l'inégalité factice" (artificial inequality) caused by legislation
Section IV (which was published as a separate article "Economic Harmonies IV," JDE, Sept. 1848 (see below pp. 000)) was unchanged and appeared in EH1 (1850) as the second part of Chap. III, pp. 87-110; and in EH2 (1851) as the second part of Chap. III, pp. 58-73.
There were no significant changes made to Section IV in the EH versions.
Text I.What a profoundly dreadful spectacle France offers us!
It would be hard to say whether anarchy has moved from thoughts into deeds or from deeds into thoughts, but what is certain is that it has permeated everything.
The poor are rising up against the rich, the proletariat against property (owners), the people against the bourgeoisie, labor against capital, agriculture against industry, the country against the towns, the provinces against the capital, and the native born citizens against foreigners.
And along come the theorists to turn this conflict into a theory. "It is the inevitable result of the nature of things", they say, "that is to say, of freedom. Man is self-centered , 1116 and this is the source of all evil, for because he is self-centered he tends to be concerned with his own well-being, and he can find this only in the misfortune of his fellows. Let us therefore prevent him from following his inclinations; let us stifle his freedom; let us change the human heart, and substitute a different driving force from the one that God has placed there. Let us invent and then manage an artificial form of society!" 1117
At this point a boundless prospect opens up alike for logic or the imagination. If you are endowed with the mind of a dialectician and a morose nature, you will beaver away at the explication of Evil. 1118 You can dissect it, put it in a crucible, have it spell out its definitive viewpoint, go back to its causes, and pursue its consequences. Then, since given our native imperfection it inheres in everything, there is nothing that cannot be denigrated. Property, the family, capital, industry, competition, freedom, and self-interest, will be shown from one angle only, the one that destroys or wounds; the natural history of mankind will, so to speak, be encapsulated clinically. God will be challenged to reconcile His alleged infinite bounty with the existence of evil. You sully everything, you are disgusted with everything and you deny everything, and yet you never achieve anything better than a sorry and precarious success with classes whose suffering inclines them all too readily to despair.
If, on the other hand, you bear a heart open to benevolence, and your mind revels in illusions, you rush head first in pursuit of chimeras. You dream of Oceania, 1119 of Atlantis, 1120 of Salente, 1121 Spensonia, 1122 Icaria, 1123 Utopia, 1124 and Phalansteries, 1125 you people them with docile, loving and devoted beings who are careful never to put an obstacle in the path of dreamers' fantasies. Dreamers settle themselves complacently into their role (as the agent) of Providence. They arrange, dispose, and mold men at will. Nothing stops them, and they never encounter disappointments. They are like the Roman preacher who, after abandoning his Rousseau-style views, vigorously refuted the Social Contract and triumphed at having reduced his opponent to silence. This is how our reformers dangle in front of those who are enduring suffering, seductive pictures of an ideal form of happiness perfectly fit for putting off the harsh necessities of real life.
However, it is rare for a Utopian to limit himself to these innocent delusions. As soon as he wishes to embroil the human race in them he finds that the human race does not lend itself to easy transformation. It resists bitterly. To encourage it, he does not merely talk to humanity of the happiness it is turning down, he talks mainly of the evils from which he claims to be delivering it. There could be no such thing as too striking a picture. He falls into the habit of loading his palette and sharpening up his colors. He seeks evil in the society of today with as much passion as as another might devote to discovering good in it. He sees only suffering, rags, exhaustion, starvation, pain, and oppression. He is astonished and upset because society is not sufficiently conscious of its poverty. He stops at nothing to strip society of its indifference and, after having begun with benevolence, he ends up with misanthropy as well. 1126
God forbid that I cast doubts on the sincerity of anyone. But truly, I cannot see how the political writers, who see radical conflict as the basis of the natural order of societies, can enjoy an instant of peace and calm. I consider that discouragement and despair must be their sorry lot. For in the end, if nature has made a mistake in making self-interest the mainspring of human society (and its error is manifest, as soon as it is accepted that interests are inevitably in conflict), how do these writers not see that evil is irreparable? As we can turn only to men, we who are men ourselves, where will we place our fulcrum for our lever to change the tendencies of the human race? Will we appeal to the Police, the Magistrates, the State ,or the Legislator? This, however, is to call upon men, that is to say, those who are subject to the common infirmities of man. Should we turn to Universal Suffrage? This would be to give the freest possible rein to universal tendencies.
These political writers therefore have just one resource. This is to pass themselves off as people with revealed knowledge and prophets kneaded from a different clay, who draw their inspiration from other sources than the rest of their fellow-men, and this is doubtless why we see them so often enveloping their theories and counsels in mystic phraseology. But if they are sent by God, let them provide proof of their mission. In the end, what they are asking for is sovereign power and the most absolute despotism that has ever existed. Not only do they want to govern our actions, they also aspire to change the very essence of our feelings. This is the least that their writings show us. Do they hope that the human race will take their word for it, above all when they cannot even reach agreement among themselves?
But before even examining their projects for artificial forms of society, is there not one thing that has to be ascertained, that is to say whether they are not mistaken right from the start? Is it absolutely certain that INTERESTS ARE NATURALLY IN CONFLICT, that an irremediable cause of inequality is bound to develop in the natural order of human society under the influence of self-interest and, this being so, that God has clearly made a mistake when He ordained that man could pursue his own well-being? 1127
This is what I propose to investigate.
Taking man as God was pleased to make him, with the propensity to look to the future and to gain experience, and being perfectible and self-loving, it is true, but with an affection which is tempered by the principle of kindness and in any case contained and balanced by encountering similar sentiments universally found in the environment in which it operates, I wonder what social order is bound to result from the combination and free play of these elements.
If we find that this result is none other than a gradual progress toward well-being, human improvement, and equality, a sustained approach of all classes toward the same physical, intellectual, and moral level, while at the same time this level is constantly rising, the work of God will be justified. We will be pleased to learn that there is no gap in creation and that the social order, as all the others, proves the existence of these harmonious forces 1128 before which Newton bowed and which drew from the Psalmist the cry: " Coeli enarrant gloriam Dei. " 1129
Rousseau used to say: "If I were a prince or legislator , I would not waste time saying what ought to be done; I would do it or hold my tongue." 1130
I am not a prince, but the trust of my fellow-citizens has made me a legislator . 1131 Perhaps they will tell me that now is the time for me to act and not to write.
I hope they will forgive me! Whether it is truth itself that harries me or just that I am the victim of delusion, I still feel the need to concentrate on a range of ideas for which I have not been able to gain acceptance up to now because I have presented them in dribs and drabs. I think that I discern sublime and reassuring harmonies in the play of natural laws governing society. Should I not try to show others what I see or think I see, in rallying a great many mistaken minds and embittered hearts around a way of thinking based upon concord and fraternity? If I appear to drift away from the post to which I have been called in order to gather my thoughts, at a time when the beloved ship of State is buffeted by storms, it is because my weak hands cannot help hold the tiller. Besides, am I betraying my mission when I reflect on the causes of the storm itself and endeavor to act on these causes? What is more, if I do not do this now, who knows whether I will have the opportunity to do it later? 1132
I will start by setting out a few economic notions. With the help of the work carried out by my predecessors, I will endeavor to epitomize this mode of explanation in one true, simple, and fruitful notion, one that it foresaw from the outset and to which it has constantly drawn near, with the time perhaps having come to establish its wording definitively. Then by this beacon, I will try to resolve some of the problems that still arouse controversy: competition, mechanization, foreign trade, luxury, capital, rent, etc. I will show 1133 the relationships, or rather the harmonies, of political economy with the other moral and social sciences by casting a glance on the serious matters encapsulated in the following words: Self-Interest, Property, Liberty, Responsibility, Solidarity, Equality, Fraternity, and Unity. 1134
It would be difficult to miss the double trap that lies in wait for this exercise. In the midst of the whirlwind sweeping us away, people will not read this book if it is too theoretical. If it succeeds in being read, it will be because the questions are merely touched upon. How do we reconcile the rights of science with the demands of readers? In order to satisfy all the requirements of form and substance, each word will have to be weighed and its rightful place reflected upon. This is how crystal is formed drop by drop in silence and obscurity. Silence, obscurity, time, and freedom of thought , I lack at once all of these; and I am reduced to relying upon the wisdom of the general public and craving its indulgence.
II.The subject of political economy is Man .
However, it does not embrace man in his entirety. 1135 For example, political economy is not concerned with his relationships with his future destiny. It considers him only from one perspective.
Our first duty ought to be to study man from this point of view. This is why we cannot avoid going back to the primordial phenomena of human sensation and human action ." 1136 Readers should nevertheless be reassured. We will not be spending much time in the misty regions of metaphysics and we will be borrowing from this science only notions that are simple, clear, and if possible incontrovertible.
The soul, or to avoid going into the question of spirituality, man, is endowed with sensation . Whether sensation is in the soul or the body, it remains a fact that man as a passive being experiences painful or pleasurable sensations . As an acting being, 1137 he makes an effort to avoid the former (painful) and increase the latter (number of agreeable sensations). The result, 1138 can be termed (a) Satisfaction .
From the general notion of Sensation arises the more specific ideas of desires , appetites , and needs . 1139
From the general notion of Action arises the more specific ideas of effort , fatigue , work , and production . 1140
From the general notion of Satisfaction arise the more specific ideas of pleasure , enjoyment , and consumption . 1141
Sensation is personal; pleasure and pain affect (only) the individual. The effort which they (pleasure and pain) provoke in him (the individual) to undertake comes from the individual and is also personal. This group of phenomena constitutes self-interest , which is the great spring (ressort) (which drives) the social world. 1142
The notion of property 1143 can be inferred from these premises. Since it is the individual who experiences the sensation , 1144 since it is he who makes the e ffort , it follows of necessity that the satisfaction should come to him, without which condition, the effort would have no raison d'être.
This is also true for inheritance . No theory, no oratorical outbursts, will stop fathers and mothers 1145 loving their children. People who take delight in organizing imaginary forms of society may find this shocking, but this is how things are. A father will make as much Effort to ensure the satisfaction of his children as for his own. Indeed, perhaps he will make more for them. If, therefore, a law that goes against nature prohibited the transmission of property from father to son, 1146 at least one half of human Effort would be wasted. 1147
I will have an opportunity to return to these subjects of Self-Interest, Property, and Inheritance.
Today, I will limit myself to exploring the boundaries, so to speak, of the domaine of the science with which we are concerned. 1148
I am not one of those who think that a science has, ipso facto , natural and immutable boundaries. In the sphere of ideas, as in that of facts, everything is tied together, everything is connected, all truths are based on each other, and no science can fail to embrace them all if it is to be complete. It has been said with reason that for an infinite form of intelligence there would be only one single truth. It is thus our weakness that reduces us to studying in isolation a certain order of phenomena, and the resulting classification cannot escape a certain arbitrariness.
The real merit lies in setting out the facts, their causes, and their consequences, accurately. Another merit, a lesser and purely relative one, lies in determining in a manner, not rigorous, since that would be impossible, but rational, the order of facts one proposes to study.
I state this so that it might not be assumed that I intend to criticize my predecessors if I succeed in giving political economy limits that differ slightly from those they have assigned to it.
Recently, economists have been greatly criticised for having concentrated too much on the study of w ealth . People wanted them to include in the science all that closely or remotely contributed to the happiness or suffering of the human race, and they went so far as to assume that the economists were denying everything that they did not deal with, for example, the phenomena surrounding the principle of fellow-feeling, is something as natural in people's hearts as the principle of self-interest. It is as though mineralogists were being accused of denying the animal kingdom. What! Are wealth and the laws governing its production, distribution, or consumption not a sufficiently wide and important field to be the subject of a specific science? If economists' conclusions contradicted those of politics or morals, I would understand the accusation. They might be told: "By limiting your scope you have been led astray, for it is not possible for two truths to be in collision." Perhaps the conclusion of the work I am submitting to the public will be that the science of wealth is in perfect harmony with all the others.
Needs , efforts , and satisfactions 1149 - here is the general foundation of all the sciences which have mankind as their subject. 1150
But it may well be the case that political economy embraces a domain just as vast.
(For example,) breathing is a need . It requires an effort and leads to a (certain) satisfaction . However, nobody dreams of making the phenomenon of breathing part of the field of political economy.
A person strives to earn the estime, affection, and respect of their fellows. His success (in doing so) is his reward. Should one say that this then is a subject for the study of an economist?
It is the same for the efforts which some men make in order to win (military) glory, and others the crown of being elected to office.
(Thus) one can understand why a science might refuse to include within its area of research every feeling, every effort, and every satisfaction which exist in the physical, intellectual, and moral world.
To impose this vast area (of experience) on political economy would be to demand that it become the universal science, it would be to prohibit it from limiting the field of its investigations.
Need, effort, and satisfaction are the three elements which have to come together in order for a phenomenon to be part of political economy. But since not everything which demonstrates this triple character can be part of it, how do we recognize those (things) which we have to exclude?
I have to admit that this matter has divided the Economists.
Generally, they have located (it) in the latter term (satisfaction), and by making the general idea of satisfaction what in logic is termed " the essential difference, " which can be used to characterize and limit the science of economics.
This was quite (a) natural (thing to do). They wanted to deal with (the concept) of wealth . They could not see it in our needs , nor in our efforts . They therefore had to look for it in the place where it actually resided, in the objects suitable for satisfying our desires.
Adam Smith required two conditions for things to be considered to be wealth : that they were exchangeable and could be accumulated . 1151 These two conditions implied a third, namely that they were tangible or material since, how could one conceive of something non-material which could be accumulated?
Unfortunately, the language of political economy was based upon this fact. Also, all the expressions which have entered its vocabulary have been imprinted with (the idea of) materiality, in particular the two key terms: production and consumption .
According to this definition, Smith should have left a host of professions outside of political economy, and excluded from it all men who did not create tangible products , but provided services , such as magistrates, authors, priests, justices, military men, doctors, artists, professors, merchants, bankers, insurers, entrepreneurs in the transport industry, etc., etc. However, he was too busy and contented himself with saying that these professions are useful but unproductive , 1152 which suggests (there is) a flaw in the definition itself.
The influence of this defect has significantly obscured the notion of Value, as I will explain later. 1153
J.B. Say got much closer to the truth in his Treatise and basically one could say that he reached it in his Cours . 1154
In the first of these works he had at first adopted the perspective of Smith, but his investigative spirit soon showed him that this distinction between products and services separated things which had the same purpose, the same effects, the same origin, and the same nature. 1155
Also, in his Cours he readily included services as part of Social Economy, recognizing them as making up the foundation of wealth, namely Value. 1156 He even went much further in his Letters to Malthus when he stated that all value is non-material . 1157 This was the implicit recognition that products themselves only have value because of the services which they provide. The entire theory which I am submitting today to the public is based upon this observation.
Thus, J.B. Say is the author of the discovery which enlarged the (science of ) economics while at the same time establishing its true limits.
But did he draw out of his discovery all the consequences which it entailed? One can doubt that he did without lessening the respect which his massive works deserve. Better than anyone (else), J.B. Say knew that no human science is ever complete, and nobody knows better what still remains to be learned than he who has learned the most. No person who has studied deeply and seriously, but only a passionate poet, would be able to write that:
"We leave for all our successors nothing more to say." 1158
Besides, wouldn't it be contradictory to expect that the person who came to an unexpected conclusion, in spite of the authority of his predecessors, in spite of his own early opinions, and as a result of laborious and repeated investigation, would have made this conclusion the basis of his work? This is too much to ask of the fleeting nature of a human life. It is a great victory for a scholar to transmit a beautiful idea, a fertile seed, to his successors. How does he gather the fruit since it [elle = idée?] too is the fruit of his genius? The sciences advance in this way: what was the glorious conclusion for the master becomes the easy point of departure for the pupil. And according to M. Say, each generation sees the treasury of their knowledge increase without end.
One must not forget that J.B. Say shared Smith's idea. For a long time he had focused his attention on the product . It was only by the force of logic that he happened to recognize the value (that existed) in services . He couldn't start with the idea of the complete fusion of the two elements, let alone the complete disappearance of the former in the latter. All that he was able to do was to juxtapose them, rather than see them as identical. In his writings "the product" maintains a kind of pre-eminence, and "service" forms at the most a particular and additional class of products, under the name of non-material products , which are terms (which one is) a bit surprised to see yoked together. This is because the human mind will always refuse to see "a product" in something which is " non-material, " whether it is the song of Malibran, 1159 the decision of a judge, the advice of a doctor or lawyer, or the lesson of a teacher.
The result of this is that the man who discovered the non-materiality of Value none-the-less preserved that sacred vocabulary of political economy, all of whose terms such as production , consumption , etc., carried the mark of materiality. And certainly, it is a concern that (economic) science after such a long time still bears the burden of this flaw, because what courageous neologist would dare to rewrite the language (of economics)?
However, thanks to this gradual approximation towards a solution to the problem, the moment has come to take a decisive step. Starting from this point, that value is non-material , one of the aims of this work is to show that services are not products because they have value, but on the contrary, that products only have value because and to the extent that they are services, of the kind that the latter, by definition, alone remain within the province of (economic) science.
Whatever the case may be, it is not by focussing on satisfaction and looking within this phenomenon to find a specific distinction, namely materiality, that Smith was able to find the true subject matter and the rational limits of (economic) science. I confess that this procedure seems to me to be arbitrary and crudely empirical. Smith himself proved its inadequacy. What kind of social economy (is it) which does not take into account half of society, or if it does concern itself with it, regards it as inconsequential?
So let us look for another solution. 1160
Of the three terms that encompass human destiny – Sensation, Effort and Satisfaction - the first and last of these are, always and of necessity, combined within the same individual. It is impossible to imagine them separated. We might imagine a sensation that is not satisfied or a need unmet but never has anyone been able to conceive of a need in one man and its satisfaction in another.
If this were also true for the middle term, Effort , man would be a totally solitary being. Economic phenomena would be completely realized within an isolated individual. There might be (other) persons nearby but there would be no society. There might be a Personal Economy but there never could be a Political Economy.
But this is not so. It is very possible and it frequently happens that the Need of one person owes its Satisfaction to the Effort of another. That is a fact. If each of us reviewed all the satisfactions that we received, we would acknowledge that, for the most part, we owed them to efforts that we had not made, and in the same way, the work we do in whatever employment we have, almost always goes to satisfy desires that are not within us.
This tells us that it is neither in the needs nor the satisfactions, phenomena which are essentially personal and incapable of being transmitted, but in the nature of the middle term, Human Effort , that the social principle, the origin of political economy, must be sought.
It is, in fact, this ability given to man, and man alone of all the creatures, to work for one another , and it is this transfer of effort, this exchange of services, with all the complicated and infinite combinations to which it gives rise through time and space, that constitutes economic science, (and) reveals its origin and sets its limits.
Therefore I say:
What forms the domaine of political economy is any effort likely to satisfy the needs of a person other than the one who has made it (the effort), provided that it is reciprocated, and also consequently the needs and satisfactions relating to this category of effort.
Thus, to cite an example, as I said earlier, 1161 although the action of breathing contains the three terms that make up the economic phenomenon it does not belong to this science, and the reason for this is clear: the question here concerns an effort which is generally not transferrable. 1162 We need nobody's help to breathe; no service is either given or received. This fact is individual by nature, not social , and so cannot be included in a science based entirely on relationships, as its very name indicates.
However, should men need to help each other to breathe under specific circumstances, as when a diver descends in a diving bell, or a doctor treats someone's lungs, or when the State regulators take steps to purify the air, we have in this situation a need satisfied by the effort of another person than the one experiencing it. A service is provided, and breathing itself, at least in this respect, enters the domain of political economy as far as assistance and remuneration are concerned.
It is not necessary for the transaction to be carried out; it is enough for the transaction to be possible for the work to be economic in nature. A farmer who grows wheat for his own use accomplishes an economic fact for the sole reason that the wheat can be exchanged.
To make an effort in order to satisfy the needs of others is to provide these persons with a service . If a service is agreed upon in return, there is an exchange of services , and as this is the most common practice, political economy may be defined as being the theory of exchange .
However pressing the need for one of the contracting parties or intense the effort required of the other, if the exchange is freely made the two services are of equal value. The value therefore consists in the comparative evaluation of the reciprocal services , and (thus) it may also be said that political economy is the theory of value . 1163
I will make one comment here that will prove how closely the sciences are involved with each other and how they almost blend with each other.
I have just defined service . It is the effort made by one man while the need and satisfaction are in another. Sometimes the service is given freely, without reward or without any service being required in return. In this case, it is based on the principle of fellow-feeling rather than on that of self-interest. It constitutes a gift and not an exchange. Consequently, it would appear not to belong to political economy (which is the theory of exchange), 1164 but to moral philosophy. In effect, actions of this nature are, because of their motives, more moral than economic (in their nature). However, we will see that, because of their effects, they are of interest to the science we are considering. On the other hand, services based on effort in return for payment, while they are for this reason essentially economic, are not in terms of their effects, outside the sphere of morality.
Thus, these two branches of knowledge have an infinite number of points of contact, and since two truths cannot be in conflict, when an economist attributes disastrous consequences to a phenomenon while at the same time a moralist attributes favorable effects to it, it can be stated that one or other of them is mistaken. In this way, the sciences can be checked against each other.
III.On the Needs of Man 1165
It is perhaps impossible, and in any case it would not be very useful, to put forward a complete and methodical catalog of man's needs. Almost all of those that are truly important are included in the following list:
Respiration (I am including this need here as being the point at which the transfer of labor or the exchange of services begin), Food, Clothing, Shelter, the Maintenance and Restoration of Health, Means of Travel, Security, Education, and Entertainment. 1166
Needs exist. That is a fact. It would be puerile to enquire whether it would not be better for them not to exist and to ask why God has subjected us to them.
It is certain that man suffers and even dies when he cannot satisfy the needs that arise from his very nature. It is certain that he suffers and may even die when he satisfies some of them to excess.
We are able to satisfy the majority of our needs only if we take the trouble to (do so), a trouble which may be considered a form of suffering . This is also true of the actions which we take to deprive ourselves (of something) when we exercise a noble control over our appetites.
Thus suffering is inevitable, such that what is left to us is scarcely more than a choice of harms. What is more, this suffering is the most intimate and personal thing in the world, from which it follows that self-interest , decried these days as mere egoism and individualism, is indestructible. Nature has placed sensation at our nerve endings, and at all the approaches to our hearts and minds, like some advanced sentry, to warn us when there is either a lack or an excess of satisfaction. Pain thus has both a purpose and a mission. The question has often been asked whether the existence of evil can be reconciled with the infinite goodness of the Creator, an awesome problem that philosophy will always continue to grapple with and probably never succeed in solving. As for political economy, it has to take man as he is, all the more so since it has not been given to imagination itself to work out, and still less to reason to conceive, a living mortal being free of pain. All our efforts to understand sensation without pain or man without sensation would be in vain.
In these times, a few sentimentalist schools reject as false any form of social science that has not devised a synthesis by means of which pain disappears from the face of this earth. Their judgment of political economy is severe, because political economy accepts what it is impossible to deny, namely suffering. They go further and make political economy responsible for it. It is as though the frailty of our organs were attributable to the physiologist examining them.
Doubtless, you can make yourself popular for a while, attract men who are suffering to your cause and inflame them against the natural order of society, by announcing that you have conceived a plan for the artificial organization of society 1167 in which pain in any form would be excluded. You might even claim to have stolen the secret from God and interpreted His presumed will by banishing evil from the face of the earth. And people unfailingly brand as impious any science that did not make this claim, accusing it of failing to recognize or of denying the foresight or the power of the author of all things.
At the same time, these schools paint a dreadful picture of present societies and do not realize that if it is impious to foresee suffering in the future, it is no less so to note it in the past or the present. For there is no limit to infinity, and if one single man in the world has suffered since the creation that would be enough to enable us to accept, with no impiety , that pain has entered into the Providential plan.
It is certainly more scientific and more manly to acknowledge the existence of major natural events that not only exist but are such that without them the human race could not even be imagined.
Thus, man is subject to suffering, and consequently so is society.
Suffering has a function in individual people, and consequently in society as well.
A study of the social laws will show us that the purpose of suffering is to destroy its own causes gradually and to draw around itself increasingly narrow limits. 1168
The list I gave above places material needs first.
We live at a time that obliges me to put the reader on guard once more at this point against a form of sentimental affectation that is highly fashionable.
There are some who give short shrift to what they disdainfully call material needs and material satisfactions . In the words of Bélise to Chrysale, they would doubtless tell me:
Is the body, this rag, of any importance?
Or worth enough to warrant even a passing thought? 1169
And, although they are in general well provided for with everything, and I congratulate them sincerely for this, they will criticize me for having pointed out food , for example, as one of our prime needs.
I certainly acknowledge that moral development is of a higher order than physical maintenance. But in the end, are we so given over to this mania for declamatory rhetoric that we cannot say that, in order to make progress, we have to be alive first? Let us avoid this childishness that obstructs science. By wanting to seem philanthropic we become untruthful, for it is contrary alike to reason and to the facts that moral development, a concern for dignity, and the cultivation of refined feeling, can precede the requirements of simply staying alive. This affected moralizing is entirely modern. Rousseau, that enthusiastic eulogist of the state of nature, refrained from such and Fénelon, a man endowed with exquisite delicacy and a sweet tenderness of heart, a spiritual being to the point of quietism and a stoic in his own regard, said: "After all, strength of mind consists in desiring to ascertain accurately the way in which the things that are fundamental to human life are constituted. Every major question turns on this." 1170
Without our claiming therefore to classify needs into a rigorously methodical order, we can say that man cannot direct his efforts to satisfying moral imperatives of the noblest and most elevated kind until he has seen to those that relate to the maintenance and sustenance of life. From this, we can already conclude that everything 1171 that makes material life more difficult undermines the moral life of nations. 1172 1173
I have one important remark to make on human needs, one that is even fundamental in political economy, and this is that needs are not a fixed and immutable quantity. They are not static by nature, but progressive.
This characteristic is notable even in our most physical needs, and becomes more apparent as we go up the scale to the intellectual desires and tastes that mark man out from the beasts.
It appears that if there is something that men ought to have in common it is the need for food since except for abnormal cases stomachs are approximately the same.
However, the foods that were rare at one period have become commonplace in another, and the diet that would be enough for a beggar would subject a Dutchman to torture. For this reason, this most pressing and bodily need, and consequently the most uniform of all, even so varies with age, sex, temperament, climate, and habit.
This is true for all the others. Scarcely has man found himself a shelter than he wants a house. Scarcely has he clothed himself than he wants adornment, and scarcely has he satisfied his bodily needs than study, science, and art open out a boundless field to his desires.
The promptness with which what was just a vague desire becomes a taste, and what was just a taste is transformed into a need, and even a pressing one, is a phenomenon worthy of note.
Take this rough and hard-working artisan. He is used to a coarse diet, humble clothes, and a mediocre lodging but thinks that he would be the happiest of men, with no further desires, if he were able to reach the rung of the ladder that he sees immediately above him. He is amazed that those who have reached this are still unsatisfied. In effect, should the modest good fortune he has dreamt of arrive, he would be happy, happy, alas, just for a few days.
For very soon he would become used to his new state, and little by little he would cease to notice his so-called good fortune. He would automatically put on the garment he had yearned for. He has made himself a new environment, he mixes with different people and, from time to time, his lips drink from a different cup, and so he aspires to climbing another rung, and if he examines his own past life he realizes that while his fortune has changed his spirit has remained the same as it was, an insatiable source of desires.
It appears that nature has given habit a peculiar power, so that it acts in us like a ratchet wheel in mechanics, and that the human race, forever impelled toward increasing higher regions, is never able to stop at any stage of civilization.
Perhaps, the sense of (one's own) worth acts with even greater force in the same direction. Stoic philosophy has often criticized men for wanting to appear rather than to be . However, taking things generally, is it certain that the business of appearing is not one of the ways of being for men?
When, through work, order, and thrift, a family rises by degrees to the social regions in which tastes become increasingly refined, relationships more polished, sentiments more purified, and the intellect more cultured, who is not aware of the poignant pain that accompanies a downturn of fortune that obliges it to descend (the social ladder)? 1174 This is when it is not the body alone that suffers. (This) descent breaks off habits that have become second nature, as we say. The sentiment of (self-)worth is undermined, and with it all the powers of the spirit. For this reason, it is common in these cases to see the victims give way to despair and slump suddenly into a degrading level of brutishness. It is as true for the social environment as for the atmosphere. Mountain dwellers who are used to pure air become rapidly less healthy in the narrow streets of our cities.
I can hear people crying out to me: "Economist, you are already stumbling. You said that your science was in harmony with with the moral code 1175 and here you are, justifying sybaritic (self-indulgent) luxury." "Philosopher," say I, in turn, "take off these clothes that were never worn by primitive man, smash your furniture, burn your books, eat the raw flesh of animals, and I will then answer your objections. It is too easy to question the power of habit, of which we are only too willing to be the living proof (of what it can achieve)."
This inclination with which nature has endowed our organs may be criticized, but criticism will not prevent it from being universal. It is seen in all nations, whether ancient or modern, savage or civilized, at the ends of the earth or in France. Without it, it is impossible to explain civilization. Well, when an inclination of the human heart is universal and indestructible, can social science take the liberty of not taking it into account?
Political writers who pride themselves on being the disciples of Rousseau will put forward this objection. But Rousseau has never denied the phenomenon of which I am speaking. He notes positively both the indefinite elasticity of need and the power of habit, and the very role I am assigning to him, which consists in preventing the human race from taking a backward step. The only thing is that what I admire he deplores, and this is to be expected. Rousseau assumes that there was a time in which men had no rights, duties, relationships, affections, or language, and that it was then, in his view, that men were happy and perfect. He must therefore have hated this wheel in the social mechanism which is taking mankind further and further from ideal perfection. Those who, on the contrary, think that perfection was not at the beginning but will be at the end of human evolution, admire the spring that impels us forward. But with regard to the existence and the play of the spring itself we are in agreement.
"When men", he said, "enjoyed a great deal of leisure and used it to procure for themselves all sorts of commodities unknown to their fathers, this was the first yoke they placed upon themselves without realizing it, and the first source of misfortune that they prepared for their descendants for, apart from the fact that these products were thus contributing to softening up men's bodies and minds, such commodities lost their attraction through habit , and when at the same time they degenerated into real needs , being deprived of them became much more cruel than the pleasure obtained from their possession, and people were much more unhappy at losing them than they were happy at enjoying them." 1176
Rousseau was convinced that God, nature, and the human race were mistaken. I know that this opinion is still anchored in many minds, but I do not share it.
After all, God forbid that I should wish to speak out against the most noble attribute, the finest virtue of man, his ability to dominate his passions, moderate his desires, and scorn sumptuous pleasures. I do not say that he should become a slave of this or that artificial need. I do say that need, considered in general terms, and seen as a result of both the physical and non-material natures of man and the force of habit and sense of worth, is indefinitely extendable, because it arises from an inexhaustible source, desire. Who will criticize a wealthy man if he is sober, restrained in the way he dresses, and eschews ostentation and indolence? Are there no more elevated desires, however, to which he is allowed to yield? Has the need for education any limit? Are efforts to render service to his country, subsidize the arts, propagate useful ideas, or assist his unfortunate brethren incompatible with the generally accepted uses of wealth?
What is more, whether philosophy thinks it is right or wrong, human need is not a fixed and immutable quantity. This is a certain fact, incontrovertible and universal. In no way were needs in the fourteenth century the same as ours with regard to food, accommodation, and education, and we can safely say that ours will not be the same as those to which our descendants are subject.
This incidentally, is an observation common to all the elements covered by political economy: wealth, work, values, services, etc., all things pertaining to the extreme variability of our principal subject, man. Political economy, unlike geometry or physics, does not have the advantage of speculating on objects that can be weighed or measured, and this is both one of its difficulties in the first place and subsequently a perpetual source of error; for when the human mind is applied to a particular order of phenomena, it is naturally inclined to seek a criterion , a common measure to which he can relate everything in order to give the branch of knowledge with which he is dealing the characteristic of an exact science . For this reason, we see most authors looking for a degree of fixity, some in value , others in money , or wheat, or work , that is to say in things which are constantly changing.
A great many economic errors arise because human needs are considered a fixed quantity, and this is why I thought it necessary to extend myself somewhat on this subject. I do not think I am getting ahead of myself by saying briefly how people reason on this subject. They take all the general satisfactions (enjoyed) at the time in which they live and assume that the human race will not agree to (any) others. This being so, if nature's bounty, the power of machines, or temperate and moderate habits manage to paralyse for a (short) time some portion of human labor, this advance causes worry, it is thought a disaster, and refuge is sought behind absurd and also erroneous mantras such as: We have overproduction, we are being killed by over-supply, production is exceeding our ability to consume, etc. It is impossible to find a proper solution to the problem of machines , foreign competition , or luxury 1177 if you consider need to be an invariable quantity, and do not realize that it is indefinitely extendible.
But if man's needs are unlimited, progressive, and able to increase according to one's desires, which are an unquenchable source which feeds them (needs) incessantly, nature must have placed in man and around him the unlimited and progressive means of satisfying them , otherwise there would be disharmony (discordance) and contradiction in the economic laws governing society, since equilibrium between the means and the end is the prime condition of any form of harmony . This is what we are going to investigate in the next article. 1178
1098 See previous Intros on his plans for this book, e.g. T.284 (1845.06.) Undated note by Bastiat on the "Economic and Social Harmonies" found among his papers (c. June 1845), above, pp. 000; and T.176 (1848.01.15) "Natural and Artificial Organisation" (Organisation naturelle Organisation artificielle), JDE , T. XIX, No. 74, Jan 1848, above, pp. 000.
1099 Bastiat, CW1, pp. 316-20.
1100 See above, pp. 000 and pp. 000.
1101 See above, pp. 000.
1102 "Capital", in Almanach Républicain pour 1849 above, pp. 000; Capital and Rent (Feb. 1849), above pp. 000; "Damn Money!" (April, 1849), below, pp. 000;
1103 On the "Tariff on Imported Salt" (11 Jan. 1849), "On Amending the Electoral Law" (26 Feb. 1849 and 10 March 1849), below, pp. 000, pp. 000, pp. 000.
1104 See, "Letter 140 to Domenger (Summer 1849)", CW1, pp. 205-6.
1105 "Speech on Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement" (22 Aug. 1849), below, pp. 000.
1106 "Letter 151 to Richard Cobden (17 Oct. 1849)", CW1, pp. 220-21; "Letter 152 to Richard Cobden (24 Oct. 1849), CW1, pp. 221-22; "Letter 154 to Bernard Domenger (13 Nov. 1849)", CW1, pp. 222-23
1107 The Law (June 1850), CW2, pp. 107-46; WSWNS (July 1850), CW3, pp. 401-52.
1108 Ludwig von Mises, Human Action: A Treatise on Economics, in 4 vols. , ed. Bettina Bien Greaves (Indianapolis: Liberty Fund, 2007), especially vol. 1, Part 1 "Human Action", Chap. 1 "Acting Man"; and Murray N. Rothbard, Man, Economy and State: A Treatise on Economic Principles, with Power and Market: Government and the Economy. Second Edition. Scholar's Edition (Auburn, Alabama: Ludwig von Mises Institute, 2009). Especially Chap. 1 "Fundamentals of Human Action" where Rothbard frequently cites Bastiat in the footnotes. See the glossary entry on "Human Action."
1109 See the glossary entry on "Service for Service."
1110 See below, pp. 000.
1111 See especially Mises, Human Action , vol. 1, Part 1 "Human Action," Chap. 2, section "2: The Formal and Aprioristic Character of Praxeology".
1112 EH1 (1850), pp. 53-59.
1113 EH2 (1851), pp. 34-39.
1114 See the glossary entry on "Disturbing and Restorative Factors."
1115 Bastiat often used the example of the non-material "services" provided by opera singers to make his point. Here he refers to the Spanish singer Maria Malibran. Elsewhere he mentions the Swedish singer Jenny Lind.
1116 Bastiat says "s'aime lui-même" (loves himself). FEE translates this as "Man is possessed of self-love".
1117 On his theory of "natural" vs. "artificial forms of organisation see Bastiat's article on "Natural and Artificial Organsations" (JDE, Jan. 1848) above.
1118 The word "le mal" can be translated as either "evil" or "harm." If religion is part of the context and there is the clear pairing of "good and evil" then we translated it as "evil." In a more general economic sense, when he is talking about economic "goods" and "harms" we translated it as "harm" or "harms."
1119 James Harrington (1611-77) was an English republican political theorist who wrote an account of an ideal republican society in The Commonwealth of Oceana (1656). His views on voting by ballot and the rotation of office were considered radical in his day.
1120 Atlantis was a fictional island mentioned by Plato in Timaeus and Critias . It influenced the thought of Francis Bacon who wrote a utopian novel New Atlantis (1627) where a state-sponsored scientific elite form a college which is "the very eye of the kingdom."
1121 In François Fénelon's fictional work Les Aventures de Télémaque (1699), the city of Salente was founded by King Idomeneus the King of Crete who ruled it like a dictatorial absolute monarch, thus satirizing the reign of Louis XIV and making a thinly veiled criticism of the notion of the divine right of kings.
1122 Spensonia was a fictional utopia created by the English radcial Thomas Spence (1750-1814). In a series of novels written between 1782 and 1805 he extolled the virtues of a commonwealth of collective ownership of land. His first discussion of Spensonia (or as here "Crusonia") occurred in the novel A Supplement to the History of Robinson Crusoe (1782) which makes an interesting contrast to Bastiat's own use of the Robinson Crusoe story to develop his own ideas about methodological individualism and the nature of human action.
1123 The socialist Étienne Cabet (1788-1856) advocated a society in which the elected representatives controlled all property that was owned in common by the community. He named his fictitious communist community Icarie and in 1848 he left France in order to create such a community in Texas and then at Nauvoo, Illinois, but these efforts ended in failure. See the glossary entry on "Cabet."
1124 The English lawyer and social theorist Sir Thomas More (1478-1535) wrote the classic book on utopia which he called Utopia (meaning "no-place" or "good-place") in 1516. Among many other things, on the island there was no private property, widespread use of slaves, and an internal passport required for travel.
1125 Phalansteries were the self-sustaining communities of the followers of the utopian socialist Charles Fourier. See the glossaries entries on "Fourier" and "Phalansteries."
1126 Here, in the EH1 version Bastiat added the following quote from Victor Considerant: "Our industrial regime, based on competition that is not guaranteed nor organized, is therefore just a social hell, a huge achievement of all the torments and sufferings of ancient Tenare. There is one difference, however: the victims." In Victor Considerant, Principes du socialisme manifest de la démocratie au XIX siècle, suivi du Procès de la Démocratique pacifique . (Paris: Librairie Phalanstérienne, 1847). No. XI "L'Enfer social. Nécessité absolue d'une solution," pp. 15-17, quote on p. 16.
1127 The FEE translation uses the very Jefferson expression "Pursue his own happiness" here.
1128 This is the only time Bastiat used the term "les forces harmoniques" (these harmonious forces). In the EH version he changed it to "ces lois harmoniques" (these harmonious laws) and used it again several times there. See the glossary entry on "Harmony and Disharmony."
1129 "The Heavens declare the glory of God." Psalm XIX:1.
1130 Social Contract , Book I, Introduction; Cranston trans. p. 49. See the glossary entry on "The Social Mechanism."
1131 Bastiat was elected to the Constituent Assembly in the election of 23 April 1848 representing the Department of Les Landes.
1132 Bastiat knew his health was poor. He would die of his throat condition (possibly cancer) on 24 December 1850 leaving his book Economic Harmonies unfinished.
1133 In EH Bastiat changes this to "signalerai" (highlight) the relationships.
1134 Bastiat has a different list in EH1. He adds "Community" and changes the order slightly: Self-Interest, Property, Community, Liberty, Equality, Responsibility, Solidarity,, Fraternity, and Unity. He then adds two additional sentences to the paragraph: "Finally, I will draw the reader's attention to the artificial obstacles that the peaceful, regular, and progressive development of human societies encounter. From these two concepts, harmonious natural Laws and artificial disturbing Factors (causes artificielles perturbatrices), the resolution of the Social Problem will be deduced." This was a very important addition to the text between the JDE article and the first edition of EH as it suggests that he was thinking more about what caused the natural harmony of the market to malfunction. To answer this question he developed the two related ideas of "les forces/causes perturbatrices" (disturbing forces/factors) and "les forces/causes réparatrices (restorative forces/factors). FEE translated the former as "artificial, disruptive elements"; and Stirling as "artificial disturbing Causes."
1135 In the EH version Bastiat inserted two new paragraphs here, in which he replies to objections that political economy is solely concerned with self-interest and lacks any concern for "sentiments" and "poetry."
1136 Bastiat uses the pair of words "la sensibilité et de l'activité humaines" which is tricky to translate. "La sensibilité" might be translated as "sensation" or "sense perception" (both used by FEE); "l'activité" as "activity" or "action". We have chosen the pairing of "sensation" (sometimes "sense perception" according to the context) and "action" with the understanding that "human action" has a modern, Austrian sound to it. Also to continue the alliteration as in the French.
1137 Bastiat uses the phrase "être actif" which could be translated as "active being" (as FEE does) or "acting being" which we have chosen. He uses this phrase on two other occasions in his writing - once in ES2 2 "Two Moral Philosophies" CW2, p. 000 and EH2 Chap. 22 "The Social Motive Force" CW5, p. 000.
1138 In EH Bastiat inserts here "qui l'affecte encore comme être passif " (which affects him now in his passive aspect).
1139 In EH Bastiat changes this list to "peines, besoins, désirs, goûts, appétits" (pain/trouble, needs, desires, tastes, appetites" and extensively rewrites and expands the rest of the section.
1140 In EH changes this list to "peine, effort, fatigue, travail, production" (pain/trouble, effort, fatigue, labor, production.
1141 In EH adds "bien-être" (well-being) to this list. In the EH version Bastiat inserted about 800 words of new material on self-interest, gratuitous and "paid for" utility, progress, perfectibility, free will, the ability "to compare, judge, choose, and to act as a result of this", and most importantly a new section on "harmony" and "disharmony". This suggests his thinking about social and economic harmony and its opposite, disharmony, was developing rapidly between when this was written before August 1848 and when EH was published in January1850: "Therefore, when we speak of harmony, we do not mean to say that the natural organization of the social world is such that error and vice are excluded from it; to support this thesis in the face of the facts would be to extend a mania for theory to insane levels. For harmony to exist with no disharmony it would be necessary either for man to have no free will or for him to be infallible. We will just say this: the major social tendencies are harmonious, in that since all error leads to disappointment and all vice to punishment, disharmony tends to disappear quickly."
1142 Bastiat again uses the metaphor of a clock to describe the functioning of "the social mechanism," with its wheels, springs, movement (or driving force) (rouage, ressort, mobile). See the glossary on "The Social Mechanism."
1143 In EH Bastiat changes this to "An initial and vague notion of property".
1144 In EH Bastiat adds "the desire or the need."
1145 Bastiat cut "and mothers" from EH.
1146 Bastiat cut "from father to son" from EH.
1147 In EH Bastiat added the phrase "not only would it in itself violate property but it would also prevent its formation by inflicting inertia on at least one half of human Effort."
1148 These two paragraphs were slightly rearranged in the EH version. But it is interesting to note that Bastiat begins with the word "Today" (which was cut from the EH version, which suggests that this essay began as one of the lectures he gave students at the School of Law which began in the fall of 1847.
1149 This trilogy of words "besoins, efforts, satisfactions" (needs, efforts, and satisfactions) would become the title of the chapter in EH1.
1150 Here begins a 1,200 section which was cut in the EH version.
1151 Bastiat might have in mind Smith's notion of "some particular subject or vendible commodity" which he discusses in Wealth of Nations , Book II, Chap. III Of the Accumulation of Capital, or of Productive and Unproductive Labour, paragraph I, Glasgow edition, p.330.
1152 Smith states that "The labour of some of the most respectable orders in the society is, like that of menial servants, unproductive of any value, and does not fix or realize itself in any permanent subject, or vendible commodity, which endures after that labour is past." Glasgow ed. pp. 330-31.
1153 See Chapter V "On Value" in EH.
1154 Nine years after the 4th revised edition of Say's Treatise on Political Economy appeared in 1819 he wrote another lengthy work called Cours complet d'économie politique pratique (1828-9), 6 vols. Unfortunately, it has never been translated into English.
1155 In the Treatise Say states: "By the exclusive restriction of the term wealth to values fixed and realized in material substances, Dr. Smith has narrowed the boundary of this science. He should, also, have included under its values which, although immaterial, are not less real, such as natural or acquired talents. Of two individuals equally destitute of fortune, the one in possession of a particular talent is by no means so poor as the other. Whoever has acquired a particular talent at the expense of an annual sacrifice, enjoys an accumulated capital; a description of wealth, notwithstanding its immateriality, so little imaginary, that, in the shape of professional services, it is daily exchanged for gold and silver." In the "Introduction" to Jean Baptiste Say, A Treatise on Political Economy; or the Production, Distribution, and Consumption of Wealth, ed. Clement C. Biddle, trans. C. R. Prinsep from the 4th ed. of the French , (Philadelphia: Lippincott, Grambo & Co., 1855. 4th-5th ed. ). < /titles/274#Say_0518_86 >.
1156 "A man who gets a shave at a barber's buys the service of the barber and consumes it at the same place and moment when he buys it. You will see that as we progress there is no profession among the men who make up society which will not find a place at the grand table of social economy." Say, Cours , vol 1, Part I, Chap IX De l'échange des frais de production contre des produits, et de ce qui constitue les progrès industriels. (Guillaumin, 1852), p. 114.
1157 "What! all our revenues immaterial!!! Yes, Sir, All: otherwise the mass of matter which composes the globe would increase every year; it must happen so, for we should every year have new material revenues. We neither create nor destroy a single atom. All that we do is to change the combinations of things; and all that we add is immaterial. It is value; and it is this value which is immaterial also, that we daily, annually consume, and upon which we live; for consumption is a change of form given to matter, or, if you [18] prefer the expression, a derangement, as production is an arrangement of form." Jean Baptiste Say, Letters to Mr. Malthus, on Several Subjects of Political Economy, and on the Cause of the Stagnation of Commerce. To Which is added, A Catechism of Political Economy, or Familiar Conversations on the Manner in which Wealth is Produced, Distributed, and Consumed in Society , trans. John Richter (London: Sherwood, Neely, and Jones, 1821). < /titles/1795#Say_0883_47 >, Letter 1, pp. 17-18.
1158 Said by Damis in Alexis Piron's (1689-1773), La Métromanie Act III, sc. VII, in Oeuvres choisies d'Alexis Piron: précédées d'une notice historique sur sa vie, et des jugemens de nos plus célèbres critiques (Paris: Chez Haut-Coeur et Gayet, 1823), vol. 1, 126.
1159 Maria-Felicia Garcia Malibran (1808-1836) was born in Paris to a Spanish musical family. Her father Manuel García was a tenor for whom Rossini created the role of Count Almaviva in The Barber of Seville (1816). At the age of 17 when her father had taken The Barber of Seville to London she stepped into the role of Rosina when another singer fell ill and this began her operatic career. She was extremely popular singing contralto and soprano roles throughout Europe for the next 10 years until she died from injuries received after falling from a horse. Bastiat refers to her singing several times in his writings. he also refers to the Swedish opera singer Jenny Lind.
1160 Here ends the 1,200 section which was cut from the EH version. What follows was included in the EH version.
1161 This phrase was cut from the EH version.
1162 In the EH version Bastiat adds here: "c'est qu'il s'agit ici d'un ensemble de faits dans lequel non-seulement les deux extrêmes : besoin et satisfaction, sont intransmissibles (ils le sont toujours), mais où le terme moyen, l' Effort, est intransmissible aussi." (the question here concerns a collection of facts in which not only the two extremes, need and satisfaction, cannot be transmitted (this is always so), but where the middle term, Effort , is also not transferable.)
1163 In the EH version Bastiat inserts here 4 paragraphs (396 words) about what he calls "L'utilité gratuite" (utility which is gratuitous or free of charge). He states that "if this book is intended to enable political economy to move forward by one step it is above all by keeping the reader's attention constantly focused on that portion of value which is successively eliminated and made use of as a utility free of charge , by the entire human race."
1164 Richard Whately agreed that "Man might be defined, 'An animal that makes Exchanges.'" and that is was "more convenient to describe Political-Economy as the science of Exchanges, rather than as the science of national Wealth (as Smith did)" and thus concluded that "A man, for instance, in a desert island, like Alex. Selkirke, or the personage his adventures are supposed to have suggested, Robinson Crusoe, is in a situation of which Political-Economy takes no cognizance." One of Bastiat's innovations was to argue in several economic sophisms in which he used the story of Robinson Crusoe in thought experiments that economics does in fact deal with an individual like Crusoe who economizes on hs use of scarce resources even though he did not engage in exchanges until Friday appeared on the scene. See, Whately, Introductory Lectures on Political Economy , Chapter: Lecture I. . See "Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv-lxvii.
1165 This section became the first part of chapter 3 in EH with the same title "On the Needs of Man." The second part of that chapter consisted of Part IV which was published in JDE in December 1848. See below, pp. 000.
1166 In the EH version Bastiat adds to this list "Sensation du beau" (sense of the beautiful or aesthetics ).
1167 See his essay on "Natural and Artificial Organizations" (Jan. 1848), below pp. 000
1168 In the EH version Bastiat adds the following to end the sentence: "and finally, assuring the final predominance of Goodness and Beauty by making us both earn and deserve it."
1169 From Molière's play Les Femmes savantes (The Learned Ladies) (1672). See Théâtre complet de J.-B. Poquelin de Molière, publié par D. Jouaust en huit volumes avec la préface de 1682, annotée par G. Monval , vol. 8 (Paris: Librairie des bibliophiles, 1882), "Les Femmes savantes," Act II, scene VII, p. 67.
1170 Fénelon ((1651-1715)) was the Archbishop of Cambrai and tutor to the young duke of Burgundy, the grandson of Louis XIV. See,"De l'éducation des filles" in François de Salignac de La Mothe (Fénelon), De l'éducation des filles. Directions pour la conscience d'un roi (Paris: Delestre-Boulage, 1821), p. 123.
1171 In the EH version Bastiat replaces the word "tout" (everything) with the phrase "toute mesure législative" (any legislative measure).
1172 In the EH version Bastiat concludes the paragraph with this addition: " harmonie que je signale en passant à l'attention du lecteur" (a harmony which I draw in passing to the reader's attention).
1173 Here in the EH version Bastiat adds a large new section of 669 words in which he discusses the relationship between wealth and virtue and vice, and the appearance of "l'inégalité factice" (artificial inequality) caused by legislation which results in "désaccord" (discord or disharmony). See the glossary entry on "Harmony and Disharmony."
1174 Bastiat also discussed going up and down the social ladder in "On Population" in JDE, Oct. 1846, below pp. 000.
1175 Bastiat uses the word "s'accorder" which can be translated as compatible or in harmony with.
1176 Rousseau, Discourse on Inequality , "Part Two." Our translation but see also A Discourse on Inequality. Translated with an Introduction by Maurice Cranston (Penguin, 1984), p. 113.
1177 Bastiat would return to the topics of "machines" and "luxury" in WSWNS, chapters 8 and 11, below, pp. 000 and pp. 000.
1178 Bastiat continued this discussion in "Economic Harmonies IV" in Dec. JDE which he later merged with Section III to form chapter 3 in EH.
T.224 Bastiat's Letter to Garnier on the Right to a Job (Oct, 1848)↩
SourceT.224 (1848.10.??) "Bastiat's Letter to Garnier on the right to a job" (Opinion de M. Frédéric Bastiat). "Opinions diverses. V. Lettre de M. Frédéric Bastiat, représentant des Landes, à M. Joseph Garnier,", Le droit au travail à l'Assemblée nationale (Guillaumin, 1848), pp. 373-75. [DMH] [CW4]??
Le Droit au travail à l'Assemblée Nationale. Recueil complet de tous les discours prononcés dans cette mémorable discussion par MM. Fresneau, Hubert Delisle, Cazalès, Gaulthier de Rumiily, Pelletier, A. de Tocqueville, Ledru-Rolin, Duvergier de Hauranne, Crémieux, M. Barthe, Gaslonde, de Luppé, Arnaud (de l'Ariège), Thiers, Considerant, Bouhier de l'Ecluse, Martin-Bernard, Billault, Dufaure, Goudchaux, et Lagrange (texts revue par les orateurs), suivis de l'opinion de MM. Marrast, Proudhon, Louis Blanc, Ed. Laboulaye et Cormenin; avec des observations inédites par MM. Léon Faucher, Wolowski, Fréd. Bastiat, de Parieu, et une introduction et des notes par M. Joseph Garnier. Paris : Guillaumin, 1848, pp. 373-76.
Editor's IntroductionDuring the summer and fall of 1848 the National Assembly debated the issue of the "right to work, or right to a job" (le droit au travail) and its possible inclusion in the new constitution. This is a letter to Joseph Garnier, the editor of a volume which brought together the key documents and the speeches given in the Chamber of Deputies on this matter. An extract of Bastiat's contribution appeared in CW2, p. 411. Here we include the entire letter.
The "right to work" ( le droit au travail , which one might translate in English as the "right to a job") had been a catch phrase of the socialists throughout the 1840s. 1179 What they meant by this term was that the state had the duty to provide work for all men who demanded it. In contrast to this, the classical liberal economists called for the "right of working," or the "freedom to work" ("la liberté du travail, "or "le droit de travailler"), by which they meant the right of any individual to pursue an occupation or activity without any restraints imposed upon him by the state. The latter point of view was articulated by Charles Dunoyer his De la liberté du travail (1845) 1180 and by Bastiat in many of his writings. The socialist perspective was provided by Louis Blanc in L'Organisation du travail (1840) and Le Socialisme, droit au travail (1848) 1181 and by Victor Considérant in La Théorie du droit de propriété et du droit au travail (1848) . 1182
Matters came to a head in May 1848, when a committee of the Constituent Assembly was formed to discuss the issue of "the right to work" just prior to the closing of the state-run National Workshops, which prompted widespread rioting in Paris. In a veritable "who's who" of the socialist and liberal movements of the day, a debate took place in the Assembly and was duly published by the classical liberal publishing firm of Guillaumin later in the year along with commentary by such leading liberal economists as Léon Faucher, Louis Wolowski, Joseph Garnier, and of course, Bastiat. 1183 Not being able to speak on the floor of the Chamber because of his failing voice, Bastiat wrote his "opinion" on the matter for the volume which was edited by Joseph Garnier, in which he distinguished between the right to work ("droit au travail," where "work" is used as a noun and thus might be rendered as the "right to a job") and the "right of working" (droit de travailler, where "work" is used as a verb).
We can see clearly in these passages that Bastiat has a strong view of individual rights, that they exist prior to the formation of the state, that the state exists only to protect these preexisting rights, and that if state force is used to do anything else then it steps outside of its just boundaries. It was precisely this expansion of illegitimate state power that Bastiat was battling during the revolution in 1848 and 1849.
TextMy dear Garnier,
You ask for my opinion of the right to work and you seem to be surprised that I did not present it on the floor of the National Assembly. My silence is due solely to the fact that, when I asked for the floor, thirty of my colleagues were lined up before me. 1184
If one understands by the phrase right to work (droit au travail) as the right of working (droit de travailler) (which implies the right to enjoy the fruit of one's labor), then one can have no doubt on the matter. As far as I'm concerned, I have never written two lines which did not have as their purpose the defence of this notion.
But if one means by the right to work that an individual has the right to demand of the state that it take care of him, provide him with a job and a wage by force, then under no circumstances does this bizarre thesis bear up to close inspection.
First of all, does the state have any rights and duties other than those which already exist among the citizens? I have always thought that its mission was to protect already existing rights. For example, even if we abstract the state away from consideration, I have the right of working (droit de travailler) and of disposing of the fruit of my work. My fellow citizens have the same rights, and we have in addition the right to defend them even by the use of force. This is why we have the community , the common force . The State can and ought to protect us in the exercise of these rights. It is its collective and regularized action which is substituted for individual and disordered action, and the latter is the raison d'être for the former.
But, do I have the right to demand of one of my fellow citizens that he provide me with a job and a wage by force? This right would obviously be different from his right to property. And, if I do not have this right, and if none of the (other) citizens who make up the community have it either, then how can we create it when one group of people exercises it over another group through the intermediary of the State? My goodness! Pierre does not have the right to demand by force that Paul supply him with a job and a wage; but if the two of them establish a common force paid for at common expence, (then) Pierre has the right to call upon this force, to use it against Paul, so that the latter is forced to supply him a job? By creating this common force, the right to work is born for Pierre and the right to property is dead for Paul! What confusion! What word play!
Then it becomes necessary to pervert radically the mind of the workers in order to make them believe that this so-called right will offer them some resources and some guarantees. The State has always been presented to them as the father of a family, a guardian who has inexhaustible wealth and who only lacks a little bit of generosity! 1185 Isn't it patently obvious however, that if the State, in order to give work to Pierre, takes 100 francs from Paul, Paul will have 100 francs less to give work to Jacques? Things will happen exactly as if Pierre had directly exercised this so-called right, or rather this oppression, over Paul. Intervention by the State will be handy for overcoming any resistance; it can even make the right of oppression seem plausible and quieten one's conscience; but it doesn't change the nature of things. Paul's property has not been less violated thereby, and if there is anything obvious in the world, it is that the working class, taken as a whole, will not have (a penny's worth) any more work. It is truly a sad thing that intelligent men are reduced, in the 19th century, to combatting this puerile behaviour which makes us keep our eyes always open to see the jobs which the State creates with the money of the tax-payers, and always shut so not to see the jobs which the tax-payers would have created among themselves if the State had not taken this money from them! 1186
Finally, if the workers would (only) reflect on this, they would see that the right to work would be for them the beginning of poverty. The existence of this right has as a public necessity the non-existence of the right of property. In order to convince you of this, it is sufficient to ask oneself what would happen if we (all) directly exercised this so-called right over one another: 1187 it is quite clear that even the very notion of property would be destroyed. Now, without property there is not any possibility of the formation of capital, and without capital formation there is no possibility of work for the workers. The right to work is thus, in short, universal poverty pushed to destruction. On the day when one only begins to discuss this topic, work will be reduced for the workers by an enormous degree; on the day when it is passed into law there will be no more work beyond the short space of time required by the State to complete the destruction of all capital.
1179 See the glossary entry "The Right to Work."
1180 Charles Dunoyer, De la liberté du travail, ou simple exposé des conditions dans lesquelles les force humaines s'exercent avec le plus de puissance. 3 vols. Paris: Guillaumin, 1845.
1181 Louis Blanc, Organisation du travail. Paris: Prévot, 1840; Le Socialisme; droit au travail, réponse à M. Thiers. Paris: M. Levy, 1848.
1182 Victor Considerant, Théorie du droit de propriété et du droit au travail. Paris: Librairie phalanstérienne, 1848.
1183 See Le droit au travail à l'Assemblée nationale. See also Faucher, "Droit au travail" in the Dictionnaire de l'Économie politique, vol. 1. pp. 605-19.
1184 His throat condition was becoming worse thus making it hard for him to heard on the floor.
1185 See Bastiat's essay on "The State" which first appeared in his revolutionary street magazine Jacques Bonhomme in June 1848 (CW2, pp. 105-6) and then in a revised and longer form in the Journal des débats in 25 Sept. 1848, CW2, pp. 93-104.
1186 This is another version of "the seen" and the "unseen" story which Bastiat would develop in more detail in his booklet WSWNS in July 1850. See, CW3, pp. 401-52.
1187 Bastiat had developed this idea of "la spoliation réciproque" (reciprocal or mutual plunder) in some of his free trade speeches as early as 1846 and would develop it further in ES2 1 "The Physiology of Plunder" probably written in November 1847, and then in the essay "The State" (Sept. 1848).
T.273 "Comments at a Meeting of the Political Economy Society on Income Tax" (10 Oct., 1848)↩
SourceT.273 (1848.10.10) Bastiat's comments at a "Meeting of the Political Economy Society" (Séance de 10 oct. 1848) (on tax). In "Chronique," JDE, T. 21, no. 90, 15 Oct. 1848, pp. 339-40; also ASEP (1889), pp. 68-69. Not in OC. [CW4]
Editor's IntroductionThis is the second record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society 1188 where we have records of his participation in the discussion. The first was a Toast he gave on 18 August 1846 for a celebratory dinner given in Paris which was hosted by the Society to honour Richard Cobden's victory in getting the protectionist Corn Laws repealed in June 1846 and this will appear in a future volume. 1189
The Société d'économie politique (Political Economy Society) was founded in February 1842 by the Comte d'Esterno and Pellegrino Rossi with the name "Réunion des économistes." 1190 It failed to attract members because of its academic tone and folded after a few meetings. Later in the year, another attempt at forming a society was made by Adolphe Blaise, Joseph Garnier, and Guillaumin which began meeting regularly from 15 November 1842. It attracted considerably more members because of its more relaxed and open format (Garnier estimates about 60 by its second meeting) where the members would meet every month for a meal in a restaurant before beginning a more formal discussion of topics selected by the committee. Its membership was drawn from members of the Institute, ex-parliamentarians, educators, journalists, judges, and several active in commerce and industry. 1191 The meetings were held in the Maison-Dorée restaurant which was located at 20, Boulevard des Italiens in the 9th arrondissement of Paris. It opened in 1839 and had a reputation for excellent food and wine (it boasted a wine cellar of 80,000 bottles) and attracted regular customers such as Honoré de Balzac and Alexandre Dumas.
The Society's first president was Charles Dunoyer, who served from 1845 to 1862, and Joseph Garnier was made permanent secretary in 1849. Its membership in 1847 was about fifty and grew to about eighty at the end of 1849. It is not known when Bastiat joined the Society, but he was invited to one of its monthly meetings in May 1845 for a welcome dinner in his honour so he could meet the members of the Society after his break-though essay on French and English tariffs (published in the JDE October 1844) and his book on Cobden and the League (published by Guillaumin in May 1845). 1192 He is first mentioned in the minutes for August 1846, when the Society hosted a banquet in honor of Richard Cobden, and Bastiat was one of several members of the Society to make a formal toast to "the past and present defenders of free trade in the House of Lords and the House of Commons." 1193 Joseph Garnier tells us 1194 that Cobden initially refused to come to Paris as part of his victory tour of Europe following the repeal of the Corn Laws in June 1846 but agreed only on condition that his friend Bastiat be present, 1195 such was the hostility to Cobden and free trade ideas in Paris shown by many outside the free trade circle of economists at that time. Bastiat took time off from his activities with the Bordeaux regional Free Trade Association to satisfy Cobden's request and gave one of the more stirring toasts given in Cobden's honour at the Banquet hosted by the Society.
Bastiat's presence is noted in the Minutes of the meetings a total of 11 times, beginning with 18 August 1846 when he gave a toast at the celebratory banquet for Richard Cobden. The gap between his first mention in August 1846 and October 1848 is probably explained by three factors. Firstly, the demands placed on him by the French Free Trade Association which began in 1846, such as his speaking engagements across the country and the job of editing its weekly journal Le Libre-Échange . Secondly, when the French Free Trade Association was closed down in March 1848 following the February Revolution Bastiat became heavily involved in politics, getting elected to the Constituent Assembly in April 1848 and then serving as Vice-President of the Chamber's Finance Committee. Thirdly, and perhaps most importantly, the secretary of the Society and editor of its journal the Journal des Économistes , Joseph Garnier was strongly opposed to the Society getting involved too deeply in partisan political issues, such as the free trade movement, so as not to frighten off members who were sympathetic to protection or ambivalent about complete free trade. The Society's refusal to support the political struggle for free trade would no doubt have alienated Bastiat, thus explaining his absence from its meetings. However, with the failure of the free trade movement in France and the reduced fear of socialism by the end of 1848 Bastiat may have felt more comfortable in attending meetings of the Society and they were more comfortable having him present.
We include in this volume ten of the eleven reports of meetings in which Bastiat participated. The topics covered were:
- a toast he gave on 18 August 1846 to honour Richard Cobden (this will appear in CW6)
- income tax (October 1848)
- emancipation of the colonies (December 1848)
- financial reform (February 1849)
- the Friends of Peace Congress (Aug. 1849) and state support for experimental socialist communities (May 1849)
- the limits to the functions of the state (Part 1) and Molinari's book Les Soirées (October 1849)
- disarmament and the English peace movement (November 1849)
- state support for popularising political economy, Bastiat's idea of land credit in Economic Harmonies , the tax on alcohol, and socialism (December 1849)
- the limits to the functions of the state (Part 2) (January 1850)
- the limits to the functions of the state (Part 3) (February 1850)
- Bastiat's idea of land credit in Economic Harmonies (Part 2) (April 1850)
In this discussion Bastiat comes out strongly in favour of a low, single tax on income. 1196 He thought it would simplify the complex array of indirect taxes which fell most heavily upon the poor and commented favourable on William Ewart's proposal for such a tax in an article in Le Libre-Échange (27 June, 1847). 1197 In his "Speech on the Tax on Wines and Spirits" delivered in the Chamber on 12 December 1849 Bastiat reiterated the claim he makes here that France could be ruled with a total government expenditure of 200 or 300 million francs. This would be a very substantial reduction as total government expenditure in 1849 was about 1,411 million, so was suggesting a cut of more than 900 million francs or 64%. In the speech he claimed:
I will suppose for the sake of argument that France has been governed for a long time according to my proposals, which would consist in the government's keeping each citizen within the limits of his rights and of justice and abandoning everything else to the responsibility of each person. This is my starting point. It is easy to see that in this case France could be governed with two hundred or three hundred million. It is clear that if France were governed with two hundred million, it would be easy to establish a single, proportional tax." 1198
He also expressed similar ideas about his desired size and scope of government in "The Utopian" (January 1847). 1199
TextThe last meeting of the Society was extended well into the evening. The participants were numerous and two topics drew the attention of the members for a considerable time. M. Horace Say 1200 presided and first called the meeting's attention to the difficulties to be faced in implementing the most recent decree which limited the working day to twelve hours. 1201 At that very moment, the Minister of the Interior, M. Sénard 1202 (who was a great supporter of the regulation), had been consulting with the Chambers of Commerce about exceptions which would be made, exceptions which had been envisaged in the legislation itself. Now, it appears that the majority of industries are demanding to be exempted! M. Hippolyte Dussard, 1203 Prefect of (the Department) of la Seine-Inférieure, 1204 whose inhabitants have been very preoccupied with this question, gave some interesting details about the situation of the cotton industry in Normandy and the present general condition of the spinners and weavers. M. Léon Faucher 1205 gave a lively critique of the new regulation which had, among many problems, that of creating a privilege which would benefit the better paid cotton spinners (in the factories) to the detriment of the poorly paid spinners who were scattered throughout the countryside and worked in their homes at an exhausting job which paid miserable wages. Messrs. Hovyn de Tranchère 1206 and Louis Wolowski, 1207 elected Representatives of the People, and Messrs. Emile Pereire 1208 and de Colmont, 1209 were the next members to take up most of the remaining part of this interesting discussion.
M. David (du Gers), a member of the Finance Committee of the National Assembly, 1210 presented to the meeting some of the reasons he had assembled to fight the proposals being put forward in the Committee to impose an income tax. M. Parieu, 1211 the Secretary of the Committee, presented with great lucidity the principle arguments which he had given in his Report (to the National Assembly). Messrs. Horace Say, de Colmont, Bastiat, as well as others, also took part in this debate, particularly on the subject of the fundamental questions of the nature and the basis of the tax. M. de Colmont thinks that the new tax, if it is passed by the Assembly, would only be a temporary tax, or rather more like a compulsory loan. M. Bastiat returned to the idea of a single tax on income, but he justly remarked that one could only dream of realising this utopia on the day the government could administer France with (a budget) of (only) 200 million francs, i.e. when its sole job was the maintenance of security among its citizens. Then the tax would be minimal and each tax-payer would freely declare their (own) income.
1188 See the glossary entry on "The Political Economy Society."
1189 See CW6 (forthcoming).
1190 A history of the Society can be found in Breton, Yves. "The Société d'économie politique of Paris (1842–1914)" in The Spread of Political Economy and the Professionalisation of Economists: Economic Societies in Europe, America and Japan in the Nineteenth Century, edited by Massimo M. Augello and Marco E. L. Guidi. London: Routledge, 2001. Further information is provided by the Society's Secretary Joseph Garnier in "Société des Économistes," Annuaire de l'économie politique (1847), pp. 233-39; and "Économie politique, (Société d')," DEP , vol. 1 pp. 670-71.
1191 Wherever possible we have tried to identify the members and provide information in the footnotes.
1192 See his letter to his friend Félix Coudroy recounting this experience, "Letter 37 to Coudroy (May 1845)," CW1, pp. 59-61.
1193 ASEP (1889), pp.49-50.
1194 Joseph Garnier, "Société des Économistes," Annuaire de l'économie politique (1847), pp. 233-39; quote on p. 238.
1195 Bastiat first made contact with Cobden in November 1844 when he was writing his book on Cobden and the League in Mugron before he had made contact with the Parisian economists . See "Letter 32 to Cobden (24 November 1844)", in CW1, pp. 50-53. This was the beginning of a close and warm friendship between the two men.
1196 See the Editor's Introduction to "On the Allocation of the Land Tax in the Department of Les Landes" (July 1844), above, pp. 000 for a list of Bastiat's writings on tax matters, and the glossary entry on "Bastiat on Taxation."
1197 See above, pp. 000.
1198 CW2 16, pp. 328-47; quote on p. 337.
1199 ES2 11 "The Utopian" (January 1847), CW3 pp. 187-98.
1200 Horace Say (1794-1860) was the son of Jean-Baptiste Say. He married Anne Cheuvreux, sister of Casimir Cheuvreux, whose family were friends of Bastiat. Say was a businessman and Secretary of the Chamber of Commerce of Paris. He was very active in liberal circles, participating in the foundation of the PES (of which he was a vice-president), the Guillaumin publishing firm, the Journal des Économistes , and was an important collaborator in the creation of the Dictionnaire de l'économe politique (1852-53) and the Dictionnaire du commerce et des marchandises (1837, 1852).
1201 One of the first acts of the Provisional Government was to pass a law on 2 March 1848 which lowered the maximum number of hours worked per day in Paris from 11 to 10 hours and in the provinces from 12 to 11 hours. This law was rescinded on 9 September, 1848.
1202 Antoine Sénard (1800-1885) was a lawyer from Rouen who participated in the political banquets of 1847 which led to the overthrow of Louis Philippe in February 1848. He was elected to the Chamber in April 1848, and served as President of the Chamber 5-29 June 1848 and after the June Days uprising he was appointed Minister of the Interior by General Cavaignac. He was a staunch anti-bonapartist and did not have another high position after Louis Napoléon was elected President in December 1848.
1203 Hippolyte Dussard (1798-1879) was a journalist, a businessman involved in the Paris-Rouen railway, and an economist. He was the editor of the JDE from 1843 to 1845 , a contributor to the Revue encyclopédique, and a co-editor with Eugène Daire of the Works of Turgot for the Collection des Principaux Économistes published by Guillaumin. During the Second republic he was appointed the prefect of la Seine-Inférieure and was elected to the Council of State.
1204 La Seine-Inférieure is in Normandy and the main city is Rouen.
1205 Léon Faucher (1803-54) was a journalist, writer, and deputy for the Marne who was twice appointed Minister of the Interior. He became an active journalist during the July Monarchy writing for Le Constituionnel , and Le Courrier français, for which Bastiat wrote, and was one of the editors of the Revue des deux mondes and the JDE . Faucher was appointed to the Académie des sciences morales et politiques in 1849 and was active in L'Association pour la liberté des échanges. He wrote on prison reform, gold and silver currency, socialism, and taxation. One of his better-known works was Études sur l'Angleterre (1856).
1206 Jules-Auguste Hovyn de Tranchère (1816-1898) was a politician and businessman from Bordeaux. He was elected in April 1848 to the Constituent Assembly, voted with the conservatives, and was Secretary of the Agriculture Committee. He opposed Louis Napoléon's coup d'état of November 1851 and later resigned from the Chamber. He was mayor of Guîtres in the Gironde 1848-1852 and a Member of the General Council 1848-51.
1207 Louis Wolowski (1810-76) was a lawyer, politician, and economist of Polish origin. His interests lay in industrial and labor economics, free trade, and bimetallism. He was a professor of industrial law at the Conservatoire national des arts et métiers, a member of the Académie des sciences morales et politiques from 1855, serving as its president in 1866-67, and a member and president of the PES. In 1848 he was elected to represent La Seine in the Constituent and Legislative Assemblies and during the 1848 Revolution he was an ardent opponent of the socialist Louis Blanc and his plans for labor organization.
1208 Émile Pereire (1800-1875) and Isaac Pereire (Isaac Rodrigue) (1806-1880) were businessmen who founded the bank Crédit Mobilier in 1852. They came from Bordeaux and had business interests in banking, land holdings, railways, maritime trade, and insurance. Émile was sent to Paris to learn the banking business in 1822 and mixed in Saint-Simonian circles where he imbibed ideas about the need for a ruling elite of bankers and industrialists. The brothers had many business interests in Les Landes, such as the construction of the Bordeaux to Bayonne railway; the reforesting of Les Landes, and the Château Palmer vineyard.
1209 Saint-Julle de Colmont (1792-??) had been Secretary of Finance under the July Monarchy. He was a member of the Political Economy Society and wrote articles for the JDE and the Annuaire de l'économie politique on tax, trade marks, and gold and silver currency.
1210 Irénée François David (1791-1862) was a lawyer in Auch, Gascony. During the Restoration he was mayor of Auch and opposed the July Monarchy. He was elected in 1848 and 1849 to represent the Department of Gers, allying himself with the moderate Republicans. He was a member of the Finance Committee of the National Assembly of which Bastiat was Vice-President.
1211 Félix Esquirou de Parieu (1815-1893), was a lawyer and Deputy who represented the Department of Cantal during the Second Republic (1848-1851). Between October 1849 and January 1851 he was the Minister of Eduction and during the Second Empire was Vice-President of the Council of State. He was Secretary of the Finance Committee of which Bastiat was Vice-President and delivered several reports to the Chamber on taxes on gifts and inheritance, income tax, the laws governing apprentices.
T.308 "Speaks in a Discussion in the Assembly on the Election of the President of the Republic" (27 Oct. 1848)↩
SourceT.308 [1848.10.27] "Speaks in a Discussion on the Election of the President of the Republic". Short speech to the National Constituent Assembly, 27 Oct. 1848, CRANC, vol. 5, p. 134. Not in OC. CW4
Editor's IntroductionThis is the 7th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
The issue under discussion here is how to ensure the integrity of the vote in remote rural cantons now that universal male suffrage was in place. Elections to the Chamber of Deputies between 1815 and 1848 were by limited manhood suffrage. Voters were drawn from a small number of people who were at least 30 years old and who paid at least fr. 300 in direct taxes such as the land tax, the door and window tax, and taxes on businesses. (These requirements were lowered in 1830 to 25 years and fr. 200.) Men could not stand for election unless they were at least 40 years old and paid at least fr. 1,000 in direct taxes. (These requirements were lowered in 1830 to 30 years and fr. 500.) These property and tax requirements limited the electorate to a small group of wealthy individuals which numbered only 89,000 in the Restoration, 180,000 in 1831, and a maximum of about 240,000 on the eve of the 1848 Revolution. In addition, the 1820 Law of the Double Vote gave the top 25% of the wealthiest voters the right to vote for an additional 2 deputies per département. Bastiat referred to this small group as the "classe électorale" (the electoral or voting class). 1212 Deputies were elected to a term of 5 years, one fifth of whom would be elected each year, and were not paid a salary, which meant that only government civil servants (who could sit in the Chamber concurrently with their government job) 1213 or the wealthy were able to afford to run for office. Deputies could not initiate legislation which was a prerogative of the King. The Chamber consisted of 258 Deputies in 1816, 430 in 1820, 459 in 1831, and 460 in 1839. General elections were held in July 1831, June 1834, November 1837, March 1839, July 1842, and August 1846.
The February Revolution of 1848 introduced universal manhood suffrage (21 years or older), the Constituent Assembly (April 1848) had 900 members (minimum age of 25). Over 9 million men were eligible to vote and 7.8 million men voted (84% of registered voters) in an election held on 23 and 24 April 1848. Bastiat was elected to represent the département of Les Landes in the Constituent Assembly of the Second Republic. He was the second candidate elected out of 7 with a vote of 56,445. The largest block of Deputies in the Chamber were monarchists (290), followed by moderate republicans such as Bastiat (230), and extreme republicans and socialists (55). The remainder were unaligned.
TextCitizen President: 1214 I will put the Amendment to a vote.
Citizen Frédéric Bastiat: I demand the floor.
The arguments which are being evaluated, I have to say, do not concern me much. On the matter of elections the preferences and the convenience of the citizens are only a secondary consideration. (Laughter from the Assembly)
Citizens, please note that those who are laughing are completely contradicting themselves. Because, if it (convenience) were the prime consideration then you would want to collect the votes at (the voters') homes. Why have you ridiculed, in principle, that voting should take place in the main town of the canton? Isn't it because you know that it would inconvenience the citizens? But what you are above all looking for is the integrity of the votes. Well then, I think I am correct to say that that is the principle consideration, and that one can leave aside considerations of time and place, and personal convenience to the degree that they do not compromise the integrity of the vote. Now, you yourselves have recognised that in an election in a commune, especially a rural commune, the integrity of the vote cannot be guaranteed. As a result, you cannot now go back on a decision you have already made. Well, I say that the principle can be found in (how) voting (is carried out) in the cantons. Now, only in special circumstances, in certain cantons, is it permitted (that there be) two voting places.
A Member of the Assembly: Why two rather than three?
Another Member: That depends on the location. Allow a bit of latitude.
Citizen Bastiat: Citizens, for which communes and for which Departments are you making an exception? It is for the Departments and for the communes where the population is the least concentrated, consequently it is for those where there is the least guarantee for the integrity of the vote, for those (communes) where, one can truly say in agreement with us, that the municipal authorities have an enormous influence. Well then, it is precisely in this case where there is danger (of a dishonest vote).
Therefore I say you ought to uphold the (established) principle of voting in the cantons and only in exceptional circumstances allow (voting to take place) in two locations. That is my proposal.
1212 In ES3 6 "The People and the Bourgeoisie", CW3, pp. 281-87, especially p. 286. See the glossary on "The Chamber of Deputies and the Electoral Class."
1213 Bastiat campaigned to ban civil servants from also sitting in the Chamber. See "Parliamentary Conflicts of Interest" (March 1843) in CW1, pp. 452-57.
1214 Armand Marrast was President of the Constituent Assembly between 19 July 1848 and 26 May 1849 when the new Legislative Assembly was elected.
T.274 "Comments at a Meeting of the Political Economy Society on the Emancipation of the Colonies" (10 Dec. 1848)↩
SourceT.274 (1848.12.10) Bastiat's comments at a "Meeting of the Political Economy Society" (Séance de 10 dec. 1848) (on the economic emancipation of the colonies). In "Chronique," JDE, T. 22, no. 93, 15 Dec. 1848, pp. 116-17; also ASEP (1889), pp. 70-72. Not in OC. [CW4]
Editor's IntroductionThis is the third record we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
The highlights of this meeting of the Society are firstly, the discussion about the struggle the Society had throughout 1848 to restore the sacked Michel Chevalier to his Chair of Political Economy after the socialists had him removed in March 1848. And secondly, Bastiat's reading of a newspaper report about the gradual abolition of the British Navigation Act which was underway as early as March 1848, but had been overlooked in the commotion of the Revolution, and which would be finally achieved on 29 June 1849. The latter particularly interested Bastiat as he believed it showed that the English free traders realised that free trade would lower food prices and thus put an end to the activities of the Chartists, or what he called "a variety of English communism," as well as leading them on to the next step in their reform program, namely dismantling their colonial trade barriers. Bastiat would return to this topic in a discussion of "England's New Colonial Policy" in April 1850 (below, pp. 000).
TextAt the last meeting of the Society, which was again attended by more people than usual, it was decided, following a proposal put forward by M. Louis Leclerc, 1215 that a letter of condolence should be sent by the President of the Society (Dunoyer) to the widow Madame Rossi 1216 to convey to her the high estime which many members of the Society held of the character and eminent qualities of her illustrious husband, as well as for the profound sadness that they felt at hearing the news of the terrible events which have struck her.
M. Michel Chevalier 1217 then reported to the meeting about the, in all respects, remarkable, lecture given by M. (Richard) Whately, the Bishop of Dublin, 1218 at a meeting of the Statistical Society which was founded in this city a year ago. (In this lecture) he said that elementary ideas of political economy and the (economic) impact of charity are taught in Ireland in 4,000 schools! Our readers will find in this lecture (which we reproduce in its entirety (in the JDE)) 1219 many thoughts full of valuable and just insights, which shows that a single person can be a worthy bishop, an orthodox political economist, and a sound philanthropist (at the same time).
Doctor Lardner, 1220 who also attended the lecture, recalled the high esteem the wise Bishop of Dublin was held in England.
While acknowledging this interesting speech, M. Michel Chevalier (also) naturally took the opportunity to thank in the name of (economic) science the work done by those present at the meeting (tonight), Messrs. Léon Faucher, 1221 Barthélemy Saint-Hilaire, 1222 and Wolowski, 1223 in their efforts in the National Assembly to restore the Chair of Political Economy at the Collège de France. 1224 The Society actively supports these views of M. Michel Chevalier and it also made it known to M. Barthélémy Saint-Hilaire how happy it was to be able to address these thanks to a scholar who promotes philosophy, and whom no one could object if he demanded (it back) ( pro domo sua ) (himself). 1225
Furthermore, M. Michel Chevalier well remarked that political economy was one of the most beautiful branches of the great tree of philosophy. Before he wrote on the Wealth of Nations , Smith had published The Theory of Moral Sentiments ; Tracy made his Treatise on Political Economy part of his Course on Ideology ; Turgot is highly regarded by some philosophers; and who would dare deny that J.B. Say, Rossi, and many others are not (also) eminently philosophical minds. 1226
The conversation then returned to a topic which had already been discussed at the last meeting: the economic emancipation of the colonies. Bastiat read an Act of the English Parliament, dated March 4, 1227 which had gone unnoticed in France because of the political turmoil, in which it was stated that henceforth there would be complete equality between English and foreign ships engaged in the trade with India. M. Bastiat then made some remarks on this matter and said that the commercial reform being introduced by our neighbours has produced two unexpected consequences. First of all, the relief brought about by the economic measures prompted by the "free traders" (the English phrase was used) have slowed down the activities of the Chartists, a variety of English communism. Secondly, logic has led the Leaguers from tariff reform to colonial liberty, and the latter pushes them, as one can already see, to the political abandonment of those institutions which cost far more than they bring in.
The discussion which Bastiat provoked continued between Messrs. Rodet, 1228 Dunoyer, Wolowsky, de Colmont, 1229 Léon Faucher and Fonteyraud. 1230 Messrs. de Colmont and Rodet strongly argued that England had never acted out of philanthropy but only out of self-interest. To which Dunoyer responded that the English practised a wonderfully true kind of egoism which well serves their self-interest only because it also benefits the interests of others. M. Fonteyraud reminded (us) of the incredible efforts of the Manchester Leaguers, the deep division within England over the subject of free trade, and the difficulty Cobden and his friends had had in winning over the majority by the force and excellence of (their) reason. He also responded to the scepticism of M. Rodet and the questions raised by M. de Colmont in a manner which to us appears conclusive.
1215 Louis Leclerc (1799-1854) was a founding member of the Free Trade Association, a member of the Société d'Économie Politique, an editor of the JDE and the Journal d'agriculture , the director of a independent private school called "l'école néopédique" between 1836 and 1848, secretary of the Chamber of Commerce of Paris, and a member of the jury at the London Trade Exhibition in 1851. Leclerc had a special interest in agricultural economics (wine and silk production) on which he wrote many articles for the JDE .
1216 Pellegrino Rossi (1787-1848) was born in Italy and lived in Geneva, Paris, and Rome. He was a professor of law and political economy, wrote poetry, and ended his days as a diplomat for the French government. After the death of Jean-Baptiste Say, Rossi was appointed professor of political economy at the Collège de France in 1833, and in 1836 he became a member of the Académie des sciences morales et politiques. In 1847 he was appointed ambassador of France to the Vatican but was assassinated on 15 November 1848 in Rome.
1217 Michel Chevalier (1806-87) was a liberal economist and alumnus of the École polytechnique and a Minister under Napoleon III. Initially a Saint-Simonist, he was appointed to the chair of political economy at the Collège de France in 1840 and became a senator in 1860. After a trip to the United States, he published Lettres sur l'Amérique du Nord (1836), Histoire et description des voies de communications aux Etats-Unis et des travaux d'art qui en dependent (1840-41), and Cours d'économie politique (1845–55). He was an admirer of Bastiat and Cobden and played a decisive role in the free trade treaty signed between France and England in 1860 (Chevalier was the signatory for France, while Cobden was the signatory for England). His dismissal from his teaching post during the 1848 Revolution was strongly resisted by the Political Economy Society which was able to eventually get him reinstated.
1218 Richard Whately (1787-1863) was Archbishop of Dublin and professor of political economy at the University of Oxford, where he was an important member of Nassau Senior's group. Whately wrote many works of theology before turning to political economy. He was an opponent of the Ricardian school and is considered to be an early adherent to the subjective theory of value. He published his Oxford lectures delivered in Easter Term 1831 as Introductory Lectures on Political Economy ( 1832). He also wrote a popular work designed to introduce young readers to ideas about money: Easy Lessons on Monetary Matters (1849).
1219 Richard Whately, "Enseignement de l'économie politique en Irlande. Discours de M. Whateley, archevêque de Dublin, dans la séance de la Société statistique de Dublin (19 juin)," JDE, T. 22, N° 93, 15 December 1848, pp. 60-67.
1220 Possibly, Dionysius Lardner (1793-1859) who was an Irish physician and professor of astronomy and physics at the University of London 1827-1840. In addition to his scientific work on geometry and calculus he wrote profusely in order to popularise science to a mass audience. He toured the United States 1840-45 giving a series of popular lectures on science.
1221 See the glossary entry on "Léon Faucher."
1222 Jules Barthélemy Saint-Hilaire (1805-95) was a philosopher, journalist and politician. He joined the Ministry of Finance in 1825 and then became a journalist during the Restoration, opposing the reaction of Charles X. His scholarly work on ancient Greek philosophy and his translation of Aristotle led to a Chair of Philosophy at the Collège de France in 1838. During the Second Republic he was elected Deputy of the Department of Seine-et-Oise but resigned after Louis Napoléon's coup d'état of December 1851. During the 1850s he was a member of an international committee to study Ferdinand de Lesseps's plans to build the Suez Canal, which he strongly supported and popularized in France.
1223 See the glossary entry on "Louis Wolowski."
1224 A discussion on the sacking of the 5 Collège de France professors began on 13 November 1848 at which Léon Faucher and Saint-Hilaire spoke (CRANC, T.5, pp. 522 ff.). It continued the next day when Wolowski and Faucher spoke (pp. 536ff. and p. 453). The matter was resolved with the restoration of funding for the 5 professors at an annual salary of 5,000 fr. each and a total budget for the College of 112,200 fr. (CRANC, T. 6, p. 364).
1225 From Cicero, "The Speech of M. T. Cicero for his House. Addressed to the Priests," in The Orations of Marcus Tullius Cicero , trans. C.D. Yonge (London: G. Bell and Sons, 1913-21). Vol. 3. .
1226 Adam Smith published The Wealth of Nations in 1776 and The Theory of Moral Sentiments in 1759. Destutt de Tracy's four-volume Éléments d'idéologie was first published in 1801-15. Volume four titled Traité de la volunté , was translated by Thomas Jefferson and appeared in English under the title Treatise of Political Economy in 1817.
1227 He is referring to an Act signed by Lord Dalhousie, President of the Board of Trade (1845-46) and then Governor-General of India (1847-56). The report in The Economist magazine was translated by Alcide Fonteyraud and published in the JDE in June 1848, A.F. (Alcide Fonteyraud), "Des lois de navigation et du mouvement maritime dans l'Inde," JDE, T. 20, no. 81, 1 June 1848, pp. 266-71.
1228 Denis Louis Rodet (1781-1852) was born in Bourg-en-Bresse and became a merchant in Bordeaux, Lyons, and London specialising in colonial goods and maritime insurance. He was a member of the Paris Chamber of Commerce, the Political Economy Society, and served on a Government Commission from 1848 examining tariff reform. He also wrote a Report for the Paris Chamber of Commerce, Acte de Navigation de l'Angleterre. Rapport fait à la Chambre de commerce de Paris (1850) on the impact and history of Britain's new Navigation Act which was enacted 29 June 1849. Joseph Garnier said he had one of the largest private libraries of books on political economy in Paris which he made available for the use of the economists, and that he was luke-warm on the question of complete free trade. See, Joseph Garnier, "Rodet (Denis-Louis)," DEP, vol. 2, p. 544.
1229 See the glossary entry on "Saint-Julle de Colmont (1792-??)."
1230 See the glossary entry on "Alcide Fonteyraud (1822-1849)."
T.225 "Economic Harmonies IV" (JDE, 15 Dec. 1848)↩
SourceT.225 (1848.12.15) "Economic Harmonies IV" (Harmonies économiques. IV) JDE , T. XXII, No. 93, 15 Dec. 1848, pp. 7-18; also in EH 4 ; OC6; CW4
Editor's IntroductionSee the Editor's Introduction to "Economic Harmonies I., II., III." (above, pp. 000) for more details.
In "Economic Harmonies IV" some of Bastiat's key ideas are:
- that the only way to satisfy one's own needs is to cooperate with others in satisfying their needs
- his observations that human bahaviour are "truths" which should be obvious to anybody who "acts" to achieve certain goals. Again, his idea are very similar to the idea of "apriorism" of the Austrian school 1231
- that utility comes from a combination of "the free gifts of nature" (material things and forces of nature) and human labor or action
- the importance of accumulating capital in order to make work easier
- that man is unique because he has "the ability to organize his affairs, to plan for the future, to exercise control over himself, and to economise or save for the future."
- there is a brief mention of the importance of the interests of consumers
Section IV (which was published as a separate article "Economic Harmonies IV," JDE, Sept. 1848 (see below pp. 000)) was unchanged and appeared in EH1 (1850) as the second part of Chap. III, pp. 87-110; and in EH2 (1851) as the second part of Chap. III, pp. 58-73.
There were no significant changes made to Section IV in the EH versions.
TextAt the beginning of this work, I said that the object of political economy is man , considered from the point of view of his needs and the means by which it is given to him to meet them.
It is therefore natural to start by examining man and his nature.
But we have also seen that he is not a solitary being; while his needs and his satisfactions , given the nature of his sensations, are inseparable from his being, this is not true of his efforts , which arise from the principle of action. 1232 Efforts can be transferred. In a word, men work for each other's benefit.
Well, something very odd happens.
When you consider man, his needs, efforts, satisfactions, constitution, leanings or tendencies in general and in an abstract fashion, so to speak, you arrive at a series of observations that appear to be free of any doubt and which are seen to be blindingly obvious, with each carrying its own proof within it. 1233 This is so true that the writer is at a loss as to how to present such palpable and widely known truths to the general public, for fear of arousing a scornful smile. It seems to him quite rightly that the annoyed reader will toss aside the book saying, "I will not waste my time being told such trivialities."
And yet these truths, held so incontrovertible when presented generally that we scarcely allow ourselves to be reminded of them, now appear to be just ridiculous errors and absurd theories when man is observed in a social setting. When considering man in isolation, who would be tempted to say: " We have overproduction, our ability to consume cannot keep up with our ability to produce; luxury and artificial tastes are the source of wealth; the invention of machines is wiping out work " and other pithy sayings of the same order which, when applied to humans collectively, nevertheless appear so well established that they are made the basis of our industrial and commercial laws? Exchange in this context produces an illusion to which the best honed intellects cannot avoid giving way, and I would propose that political economy will have achieved its goal and fulfilled its mission when it has finally demonstrated the following: What is true for the individual is true for society. Man in isolation is simultaneously a producer and consumer, inventor and entrepreneur, capitalist and worker. All economic phenomena are fulfilled in him, and he is so to speak society in the abstract. In the same way, the human race, taken as a whole, is a (like a) huge, collective, and multiple man to whom the truths observed in even a single individual can be applied.
I needed to make this remark, which I hope will be better justified by what follows, before continuing this study of man which began in the previous article. Without this, I feared that the reader would reject as unnecessary the inferences and obvious truisms that follow.
In the previous article I spoke of man's needs , and after putting forward a rough and ready list, I noted that they were not static by nature but progressive. This is true whether you consider each of them in itself or, above all when you take them as a whole from the physical, intellectual, and moral points of view. How could this be otherwise? Some needs must be satisfied under pain of death given the way our bodies are constituted, and up to a certain point it might be claimed that these latter are of fixed magnitude, even though this may not of course be strictly true, for if you are keen not to overlook an essential element, the force of habit , and prepared to do some self-examination with a degree of good faith, you will be obliged to agree that even the most basic needs, such as eating, undergo incontrovertible transformation by force of habit, and anyone who speaks out here against this comment, calling it materialistic and epicurean, would be most unhappy if he were taken at his word and reduced to the pittance of an anchorite. 1234 But in any case, when the needs of this order are met satisfactorily and constantly, there are others that arise from the most expandable of our faculties, namely desire. Can one imagine a single moment in which man is unable to formulate desires, even reasonable ones? Let us not forget that a desire that is unreasonable at one stage of civilization, at a time when all human powers are concentrated on satisfying lesser needs, ceases to be so when the advancement of these powers opens out a wider horizon. Thus, it would have been unreasonable two centuries ago to hope to travel at ten leagues an hour, 1235 which is no longer the case today. To claim that man's needs and desires are fixed and static quantities is to fail to understand the nature of the soul, to deny the facts and make civilization inexplicable.
It would also be inexplicable if, alongside the indefinite development of needs, the possibility of the indefinite development of the means of satisfying them did not materialize. What would be the effect on the expandable nature of needs in the achievement of progress if, at a certain stage, our capacities were no longer able to develop and were to run up against an unmovable barrier?
Thus, unless nature, Providence, or whatever the power that presides over our destinies, has become a victim to the most shocking and cruel ambiguity, since our desires are indefinite, it must be presumed that our means of satisfying them are equally so.
I have used the word indefinite, and not infinite, for nothing relating to man is infinite. It is precisely because our desires and capacities develop towards infinity that they have no specifiable limits, although they may have absolute ones. We can cite a host of points higher than the human race to which it will never rise, without at the same time being able to say that a time will come at which it will cease to draw closer to them. 1236
Nor do I mean to say that desire and the means of satisfying it walk side by side at an equal pace. Desire runs, and the means limp along behind it.
The swift and adventurous nature of desire, compared to the slowness of our capacities, warns us that, at all stages of civilization and all levels of progress, a certain degree of suffering is and always will be the lot of man. However, it teaches us also that this suffering has a purpose, since it would be impossible to understand desire as the stimulus of our capacities if it followed instead of preceding them. Nevertheless, let us not accuse nature of having installed cruelty in this (social) mechanism, since it has to be noted that desire is not transformed into a genuine need, that is to say into a painful desire , until it has been made so by the habit of permanent satisfaction, in other words, when the means have been found and put irrevocably within our reach. 1237
Today, our task is to examine the following question: What means do we possess to satisfy our needs?
It seems obvious to me that there are two: Nature and Labor, the gifts of God and the fruits of our efforts, or if you prefer, the application of our capacities to the things that nature has placed at our service.
As far as I know, no school has attributed the satisfaction of our needs to nature alone . A statement like this has been too frequently belied by experience, and we do not need to study political economy to see that some input from our capacities is necessary.
But there are some schools that have attributed this privilege to labor alone. Their maxim is: " All wealth stems from labor; labor is wealth ."
I cannot stop myself from pointing out here that these formulae, taken literally, have led to huge errors of doctrine, and consequently to deplorable legislative measures. I will deal with this elsewhere. 1238
Here I will limit myself to establishing as fact that nature and labor cooperate to satisfy our needs and desires.
Let us examine the facts.
The need that we have placed on top of our list is that of breathing . In this respect, we have already noted that, in general, nature does all the work and that human labor has only to intervene in certain exceptional cases as, for example, when it is necessary to purify the air.
The need to quench our thirst is more or less satisfied by Nature, depending on whether it provides us with a source of water that is more or less close, clear, and abundant, and the contribution of Labor is linked to the distance it has to be carried, whether it has to be purified, and whether its scarcity has to be supplemented by wells and tanks.
Nature is no more uniformly liberal to us with regard to food , for who will say that the work left to us is always the same whether the soil is fertile or difficult, the forest teeming with game, the river with fish or not?
With regard to lighting , human labor certainly has less to do in places where (the) nights are short than in places where the sun has chosen to make them long.
I will not dare at this point to set this out as an absolute rule, but it seems to me that, as we ascend the scale of (our) needs, the input of nature becomes less and gives more scope to our capacities. Painters, sculptors of statues, and even writers are obliged to obtain help from materials and tools that nature alone supplies, but it has to be admitted that they draw from their own genius the element that provides the attractiveness, the merit, the usefulness, and value of their works. To learn is a need that is almost exclusively satisfied by the properly directed exercise of our intellectual faculties. Nevertheless, might it not be said that here again nature assists by offering us, in varying degrees, objects to be observed and compared? For an equal amount of work, can botany, geology, and natural history make equal progress everywhere?
It would be superfluous to give other examples. We can already ascertain that Nature gives us the means of satisfaction with a greater or lesser degree of utility (this word is taken in its etymological meaning, the property of serving) . 1239 In many cases, in almost every case, there is something left for labor to do to make this utility complete, and we understand that this action of work is capable of achieving more or less in a given situation depending on how far nature itself has advanced the operation.
The following two formulae may therefore be advanced:
1. Utility is transmitted, sometimes by Nature alone, sometimes by Labor alone but almost always by the cooperation of Nature and Labor ;
2. To bring something to its perfect state of UTILITY, the action of Labor is in an inverse ratio to that of Nature.
From the combination of these two propositions and what we have said about the indefinite expandability of needs, may I be allowed to draw a deduction whose importance will be demonstrated subsequently? If two men who are assumed to have no links with one another are placed in unequal situations so that nature is liberal toward one and miserly toward the other, the first will obviously have less work to do for any given satisfaction. Does it follow that the portion of his strength that has been, so to speak, left available will of necessity be afflicted with inertia, and that this man, because of the liberality of nature, will be reduced to forced idleness? No, what results is that, should he so wish, he will be able to use this strength to widen the circle of his satisfactions, and for the same amount of work achieve two satisfactions instead of one. In a word, progress will be easier for him.
I do not know whether I am deceiving myself, but it seems to me that no discipline, not even geometry, offers more unassailable truths at its point of departure. However, if someone were able to prove to me that all these truths were just so many errors, he would have destroyed not only the confidence that these truths inspire in me but also the very foundation of all certainty and faith in the evidence itself, for what line of reasoning could we use that would better deserve the acceptance of reason than the one we would have overthrown? The day when an axiom is found to contradict the one which holds that a straight line is the shortest path between two points, will be the day on which the human mind will have no other refuge than absolute skepticism, if this is indeed a refuge.
So I feel very confused at having to stress elemental truths so clear that they seem puerile. Nevertheless, it has to be said that through the complications of human transactions, these simple truths have been overlooked, and in order to justify to the reader my dwelling on what the English call truisms for so long, I will point out at this juncture the strange way that excellent minds have allowed themselves to be led astray. Setting aside and taking no account of the cooperation of nature with regard to the satisfaction of our needs, they laid down this absolute principle: All wealth stems from labor . On this premise, they have built the following syllogism:
"All wealth stems from labor;
Therefore wealth is proportional to labor.
But, labor is in inverse proportion to the bounty of nature;
Therefore wealth is in inverse proportion to the bounty of nature!"
And like it or not, many of our economic laws have been inspired by this strange line of reasoning. These laws cannot help but be disastrous to the development and distribution of wealth. This is what justifies my preparing in advance, through the setting out of apparently very trivial truths, the refutation of the deplorable errors and preconceived ideas under which current society is thrashing about.
Let us now break down into its parts the contribution of nature.
It places two things at our disposal: material things and forces (of nature).
Most of the material objects used to satisfy our needs and desires are transformed into a state of utility suitable for us only through work, through the application of human faculties. However, in every instance, the elements, the atoms if you like, of which these objects are made are the gifts, and I add, the free gifts, of nature. This comment is of the greatest importance and, I believe, will cast fresh light on the theory of wealth.
I would like the reader to remember clearly that I am examining here in a general fashion the physical and moral constitution of man, his needs, his capacities, and his relationships with nature, setting aside exchange, which I will be dealing with in a following article. 1240 We will then see how and why social transactions modify phenomena.
It is very clear that if a man living in isolation 1241 has, so to speak, to buy the majority of his satisfactions through work or effort; it is strictly accurate to say that, before any work or effort from him has taken place, the materials that are within his reach are the free gifts of nature. Following an initial effort, however slight, they cease to be free , and if the language used by political economy had always been accurate, it is when material objects are in this situation, before any human action, 1242 that the term raw materials ought to be used.
I repeat here that this gratuitousness of the gifts of nature, before work has intervened, is of the greatest importance. Indeed, in the first article, 1243 I stated that political economy was the theory of value . I now add in advance that things start having value only when work has given them some. I claim that I will later 1244 be demonstrating that all that is free to man in isolation remains free for man in society and that the free gifts of nature, whatever their UTILITY , have no Value. I contend that a man who receives a benefit of nature directly and with no effort cannot be considered to have rendered himself a costly service, and that consequently he cannot render as services to others things which are common to all. Well, where there has been no services rendered or received, there is no value .
All that I am saying here with regard to material things can also be applied to the forces supplied to us by nature. Gravity, the compressibility and expansibility of gas, the power of the wind, the laws of equilibrium, animal and vegetable life, are so many forces that we learn to turn to our advantage. The effort and intelligence that we devote to this are always subject to payment, for we cannot be made to devote our efforts for the benefit of others free of charge. However, these natural forces, when taken on their own and setting aside all intellectual or muscular work, are the free gifts of Providence, and for this reason they remain without value through all the complications of human transactions. This is the dominant theme of this work.
This observation would have little importance, I admit, if the cooperation of nature was constantly uniform, if each man, at all times, places, and circumstances received from nature assistance that was always the same and invariable. In this case, science might be excused for not taking account of an element that, because it remains the same always and everywhere, has an effect that is proportionally the same in every way on the services being exchanged. Just as you eliminate the parts of the lines in geometry that are common to the two figures being compared, it would be able to set aside this cooperation that is immutably present and content itself with saying, as it has done up to now: "Natural riches exist; political economy notes this once and for all, and will take no further notice of them."
But things do not happen like this. The irresistible tendency of human intelligence, stimulated in this by self-interest and aided by a succession of discoveries, is to replace the costly and human contribution with the natural and gratuitous contribution, so that for a given utility, although it remains the same with regard to its result and the satisfaction it provides, nevertheless represents an increasingly reduced level of work. Certainly, it is impossible not to perceive the immense influence of this marvelous phenomenon on the notion of Value. For what is its result? It is that in every product the part that is free tends to replace the part which is costly. It is that, since utility is the result of two forms of collaboration, one that is paid for and one that is not, the Value, which is linked only to the first of these forms of collaboration, decreases for an identical utility as nature is forced to provide (a) more effective contribution. So that it can be said that the human race has as many more forms of satisfactions or wealth as it has fewer things of value . Well, as the majority of writers have established a sort of synonymous meaning between the three expressions: utility , wealth , and values , what results is a theory that is not only wrong but the opposite of the truth. I sincerely believe that a more accurate description of this combination of natural and human forces in production, in other words, a more accurate definition of Value, would stop inextricable theoretical confusion and reconcile schools that are currently divergent, and if I am now anticipating the result of this exposition, it is in order to justify myself to the reader for having lingered over notions whose importance he would have difficulty explaining without this.
Following this digression, I will go back to my study of man based solely on the economic point of view.
Another observation that I owe to J. B. Say, 1245 and whose obviousness leaps to the eye in spite of being all too often overlooked by a number of writers, is that man does not create either the materials or the forces of nature, if the word create is used in its strict sense. These materials and forces exist in their own right. Man merely combines them and moves them for his own benefit or that of others. If he does so for his benefit, he is rendering himself a service . If it is for the benefit of others, he is rendering (a) service to his fellow-man [fellows] and is entitled to demand an equivalent service from him, from which it also follows that the value is in proportion to the service rendered, and not at all to the absolute utility of the action. For this utility may, for the most part, be the result of the gratuitous act of nature, in which case the human (element of the) service, the costly part which should be paid for, has little Value. This arises from the axiom established above: To bring something to its fullest state of utility, the action of human beings 1246 is in inverse proportion to that of nature.
This observation overturns the doctrine about which I spoke in the first article that situates value in the materiality of things. The contrary is true. Materiality is a quality supplied by nature and consequently free of charge , with no value , although its utility is undeniable. Human action, which can never create matter, is the sole constituent of the service that a man in isolation can render (to) himself or that men living in society can render (to) each other, and it is the freely (given) appraisal of these services that is the basis of value . Far from the premise, favored by Smith, that Value can be conceived only when incorporated in Matter, the truth is that between matter and value there is no possible relationship.
The mistaken doctrine to which I refer had inexorably resulted from the idea that only the classes that work on material things were productive . Smith had thus paved the way for the error of modern socialists , who constantly represent those they call the middlemen 1247 between producers and consumers, such as traders, merchants, etc. as being unproductive parasites. Do they provide services? Do they spare us pain by taking pains on our behalf? In this case, they create value , although they do not make material things, and it is even true that, since nobody creates matter itself and we all are limited to providing each other with reciprocal services, 1248 it is strictly accurate to say that all of us, including farmers and manufacturers, are middlemen with regard to each other.
This, for the moment, is what I had to say about the contribution of nature. It places at our disposal, to a very varying extent depending on the climate, the seasons, and the state of advancement of our knowledge, but in all instances gratuitously , both material things and forces (of nature) . These materials and forces therefore have no value , and it would be very strange if they had. According to what rule would we assess it? How would we comprehend nature having itself paid, reimbursed, or remunerated? We will see later that exchange is necessary in determining value. 1249 We do not buy the produce of nature, we gather it, and if, in order to gather it, we have to produce a certain effort, it is in this effort , and not in the gift of nature, that the principle of value lies.
Let us move on to that human activity 1250 generally referred to as labor .
The word labor , like nearly all the terms used in political economy, is very vague, with each writer giving it a meaning that is more or less wide. Unlike the majority of sciences, chemistry for example, political economy has not had the advantage of inventing its own vocabulary. As it deals with subjects that have concerned man from the dawn of time and are customary subjects of conversation, it has found terminology that is ready-made and been obliged to use it.
Very often the meaning of work is limited to the almost exclusively muscular action of man on things. For this reason, those who carry out the mechanical part of production are referred to as the working classes .
The reader will understand that I am giving this word a wider meaning. What I mean by the word work is the application of our capacities to the satisfaction of our needs. Need , effort , satisfaction , this is the realm of political economy. The effort may be physical, intellectual, or even moral, as we will see.
It is not necessary to show here that all of our organs and all or nearly all of our capacities may and do contribute to production. Concentration, wisdom, intelligence, and imagination certainly play a part.
In his fine book on the Freedom of Working , Mr. Dunoyer 1251 has, with full scientific rigor, included our moral capacities among the attributes to which we owe our wealth. This is an idea that is as new and fertile as it is true , and is intended to enlarge and ennoble the field of political economy.
I will dwell on this idea here only to the extent that it gives me the opportunity of casting an initial beam of light on the origin of a powerful agent of production which I have not mentioned so far: CAPITAL.
If we examine in turn the material objects that contribute to satisfying our needs, we will recognize without difficulty that the production of all or nearly all of them requires more time and a greater portion of our life than man can give without restoring his strength, that is to say, without satisfying his (physical) needs. This presupposes, then, that those who have produced these things will have previously reserved, or set aside and accumulated, the provisions needed to maintain life during the period of the work.
The same applies to satisfactions that have no material element. A priest could not devote himself to preaching, a teacher to teaching, a magistrate to the maintenance of order if, by their own means or those of others, they did not have ready access to some means of existence which had previously been created.
Let us go back and imagine a man living in isolation and reduced to living by hunting. It is easy to see that if, each evening, he had eaten all the game taken during the day, he would never be able to undertake any other task, building a hut, or repairing his weapons. All forms of progress would forever be denied to him.
This is not the place to define the nature and functions of Capital; 1252 my only aim is to get you to see that certain moral virtues contribute directly to improving our condition, even from the sole point of view of wealth, and (these are) among others, order, foresight, self-control, and thrift. 1253
Foresight is one of the wonderful privileges of man, and it is scarcely necessary to say that, in almost all of the situations in life, the man who best appreciates the consequences of his decisions and actions will have the most favorable opportunities.
To restrain one's appetites, the ability to govern one's passions, to sacrifice the present to the future, to subject oneself to present privation with a view to greater advantage in the future, 1254 these are essential conditions for capital formation and, as we have glimpsed, capital is itself the essential condition for all forms of work at all complicated or prolonged. It is perfectly clear that if two men were placed in perfectly identical situations and if, in addition, they were assumed to have the same degree of intelligence and industriousness, the one who saved up provisions to enable him to undertake tasks of long duration, improve his tools, and enlist the forces of nature in achieving his plans, would make more progress.
I will not dwell on this; you have only to glance around you to be convinced that all our forces, capacities, and virtues contribute to achieving progress for man and society.
For the same reason, there is no vice of ours which is not a direct or indirect cause of poverty. Laziness paralyses effort, the very sinew of production. Ignorance and error lead it down the wrong path; lack of foresight lays up disappointments for us; giving way to our passing appetites prevents the accumulation or formation of capital; vanity induces us to devote our efforts to artificial satisfactions at the expense of genuine ones, while violence and fraud force us to take expensive precautions in view of the reprisals they provoke, thus entailing a great depletion of our energy.
I will end this preliminary study of man with an observation I have already made with regard to needs. It is that the elements highlighted in this article that are included in and make up economic science are essentially variable and various. Needs, desires, material things and powers supplied by nature, muscular strength, organs, intellectual faculties, and moral qualities – all vary depending on the individual, the time, and the place. No two men resemble each other in each one of these aspects nor, for very good reason, in all of them. What is more, no man is perfectly consistent from one hour to the next; what one man knows, another does not, what this man appreciates, that man scorns. In one instance, nature has been prodigal, in another, miserly. A virtue that is difficult to practice at a certain temperature becomes easy in another climate. Economic science, therefore, unlike the so-called exact sciences, does not (have) the advantage of a yardstick, an absolute standard to which it can refer everything, a graduated measure that it can use to calibrate the intensity of desires, efforts, and satisfactions. If we were doomed to work alone, like certain animals, we would all be placed in situations that differed in certain ways, and if these external ways were alike and the environment in which we acted were identical for everyone, we would still differ in our desires, needs, ideas, wisdom, energy, our way of assessing and appreciating things, our ability to plan for the future, and our actions, so that great and inevitable inequality would be seen between men. Of course, total isolation and the absence of any form of relationship between men is just an illusionary vision born in Rousseau's imagination. But supposing that this anti-social situation known as a state of nature has ever existed, I wonder through what sequence of ideas Rousseau and his followers have managed to locate Equality in it? We will see later that, like Wealth, like Freedom, like Fraternity, and like Unity, Equality is an end and not a starting point. It arises from the natural and regular development of societies. The human race does not move away from it (Equality) but moves towards it. This is both more reassuring and truer.
After discussing our needs and the means we have of achieving them, I must say something about our satisfactions . They are the result of the entire (social) mechanism. It is through the greater or lesser number of physical, intellectual, or moral satisfactions enjoyed by the human race that we see whether the machine is working well or badly. This is why the word consumption , adopted by economists, would have a profound meaning if, while retaining its etymological meaning, it was made a synonym of end or achievement . Unfortunately, in common parlance and even in scientific language it is perceived to have a materialist and unsubtle meaning, which is doubtless accurate with regard to physical needs but which ceases to be so with regard to needs of a higher order. The cultivation of wheat or the weaving of wool result in consumption . Is this also true for an artist's works, a poet's verses, the thoughts of a legal consultant, the teachings of a professor, or the sermons of a priest? Here again we come up against the disadvantages of this fundamental error that made Adam Smith circumscribe political economy within a circle of materiality, and the reader will forgive me for often making use of the word satisfaction as applicable to all our needs and desires and as being the one best suited to the expanded framework that I believed I could give the science.
Economists have often been crticised for concentrating exclusively on the interests of consumers . "You forget the producer", the critics add. But since satisfaction is the goal and the end of all (our) efforts, like some final consumption of (all) economic phenomena, is it not obvious that the touchstone of progress is to be found in it? Man's well-being is not measured by his efforts but by his satisfactions , and this is also true for men collectively. This is another one of those truths that nobody questions when the issue is man in isolation, though they are contested constantly as soon as the reference is to society. The phrase so much denounced has no other meaning than this: any economic measure is to be assessed not by the work it generates but by the useful effect that results from it, this effect producing either an increase or a decrease in general well-being.
With regard to needs and desires, we have said that no two men are alike. This is also true of our satisfactions . They are not assessed equally by all, and this boils down to the trite saying: tastes differ. Well, it is the acuteness of desires and the variety of tastes that determine the direction of (our) efforts. Here, the influence of the moral code on industry is obvious. You can imagine a man in isolation who is a slave to artificial tastes that are childish and immoral. In this case, it is blindingly clear that his limited forces will satisfy depraved desires only at the expense of those that are more intelligent and better understood. Should a comparable allegation refer to society, however, then this obvious axiom is considered to be an error. We are led to believe that artificial tastes and illusory satisfactions, acknowledged sources of individual poverty, are nevertheless a source of national wealth, because they open up markets to a host of industries. If this were true, we would come to a very sorry conclusion, which is that the social state situates man between poverty and immorality. Once again, political economy resolves these apparent contradictions in the most satisfactory and rigorous manner.
1231 Mises, Human Action , vol. 1, Part 1 "Human Action," Chap. 2, section "2: The Formal and Aprioristic Character of Praxeology".
1232 Bastiat used this expression "le principe actif" (the principle of action) here and again 3 times in EH1 in the chapters IV "Exchange" and V "On Value." In the former he says "échange implique activité, et que l'effort seul manifeste notre principe actif" (exchange implies action and effort alone reveals our principle of action) and in the latter where he says "cette manifestation de notre principe actif que nous avons appelée Effort" (this manifestation of our principle of action which we have called Effort). See CW5, forthcoming.
1233 Again, Bastiat seems to be close to Mises' and Rothbard's abstract theory of praxeology, namely that "men use means to attain various chosen ends." See, Rothand MES, p. 64; and the Preface to the Revised Edition (1993), "The present work deduces the entire corpus of economics from a few simple and apodictically true axioms: the Fundamental Axiom of action—that men employ means to achieve ends, and two subsidiary postulates: that there is a variety of human and natural resources, and that leisure is a consumers' good,"p. lvi.
1234 An Anchorite is someone who has withdrawn from the world for religious purposes. During the middle ages anchorites often lived in a small cell-sized room built against the wall of a church and would offer advice to others through a small window. In the EH version Bastiat changes this to "the black broth of Sparta or the pittance of an anchorite."
1235 About 30 miles per hour.
1236 ( Bastiat's note. ) (This is) a mathematical law that occurs frequently and is little understood in political economy. Note by Editor: Bastiat means by this the idea of an asymptote.
1237 ( Bastiat's note. ) One of the indirect aims of these articles is to combat the modern sentimental schools which, in spite of the facts, do not accept that suffering, to a certain extent, has a providential goal. As these schools claim descent from Rousseau, I am obliged to quote them this passage from their master: "The evil we see is not an absolute evil, and, far from being in direct conflict with good, it, like good, contributes to universal harmony." In "Lettre à M. Beaumont" in Oeuvres complètes de Jean-Jacques Rousseau. Tome troisième. 1er Partie. Contenant Lettre à M. de Beaumont. Lettres écrites de la Montagne. Inégalité des conditions. (Paris: A. Belin, 1817), p. 24.
1238 where??
1239 Utility: from Latin utilitatem (nominative utilitas) "usefulness, serviceableness, profit," from utilis "usable," from uti "make use of, profit by, take advantage of." Online Etymology Dictionary
1240 This article did not appear in the JDE but was Chap. IV "Exchange" in EH.
1241 Elsewhere Bastiat wrote about the economic choices faced by "l'homme isolé" (man in isolation), namely Robinson Crusoe cast ashore on the Island of Despair. See, the following ES3 16 "Making a Mountain out of a Mole Hill" (c. 1847), pp. 343-50, and ES2 14 "Something Else" (March 21, 1847), pp. 226-34. In addition, there is a discussion of how a negotiation might have taken place between Robinson and Friday about exchanging game and fish in "Property and Plunder" (July 1848), CW2, p. 155; and there are 16 references to "Robinson" in the Economic Harmonies, especially in Chapter 4 "Exchange." See "Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv-lxvii.
1242 This is the first instance of Bastiat's use of the phrase "l'action humaine" (human action). There are 8 in total all of which occur in the articles and chapters which make up EH. See the glossary entry on "Human Action."
1243 See pp. 000 above.
1244 See EH Chap. IV "On Value."
1245 Among several places, see Say, Traité (6th ed. 1841, Guillaumin), Book I, chap. I "What is understood by Production", pp. 57-58.
1246 Bastiat uses another expression here "l'action de l'homme" (the action of human beings, or human action). This version of saying the same thing occurs 6 times in EH.
1247 See also Chap. 6 "The Middlemen" in WSWNS, pp. 422-27.
1248 See glossary on "Service for Service."
1249 See Chap. IV "Exchange" in EH.
1250 Bastiat uses the phrase "l'action de l'homme" (the action of human beings) which we have translated as "human action." Elsewhere he uses terms such as "être actif" (active or acting being), and "l'action humaine" (human action). See the glossary entry on "Human Action."
1251 See Bastiat's review of Dunoyer's book when it first appeared in March 1845 but it was never published, above, pp. 000.
1252 He does this in Chap VII "Capital" of EH.
1253 Here Bastiat uses the terse French abstract nouns - "l'ordre, la prévoyance, l'empire sur soi-même, l'économie" (order, foresight, self-control, and thrift) - which in modern economic language could be expressed as "the ability to organize one's affairs, to plan for the future, to exercise control over oneself, and to economise or save for the future."
1254 This is a clear statement of the Austrian idea of "time preference." As Böhm-Bawerk expressed this concept in 1890, "in the economic world the law holds that the present value of future goods is less than that of present goods, — a law that owes its existence to no social or political institution, but directly to the nature of men and the nature of things." See, Eugen von Böhm-Bawerk, Capital and Interest: A Critical History of Economic Theory, trans. William A. Smart (London: Macmillan, 1890). .
Bastiat's Writings in 1849↩
T.226 (1849.??) "On the Separation of the Temporal and Spiritual Domains"↩
SourceT.226 (1849.??) "On the Separation of the Temporal and Spiritual Domains" (De la séparation du temporel et du spirituel). An unpublished outline. [OC7.80, pp. 357-61.] [CW1.2.4.22, pp. 468-71.]
Editor's Note[to come]
Text“Is there a possible solution to the affairs of Rome?”52 “Yes.” “What is it?” “If we met a pope who says, ‘My kingdom is not of this world.’ ” “Do you think that would be the solution to the Roman question?” “Yes, and to the Catholic question and to the religious question.”
If in 1847 someone had proposed to abolish the Charter and invest Louis-Philippe with absolute power, there would have been a general outcry against such a proposal.
If, in addition, someone had proposed to give Louis-Philippe spiritual power in addition to temporal power, the proposal would not have been slain by a mere outcry but by the utter disdain it would provoke.
Why? Because we consider that the right to govern men’s acts is already [469] great enough and that we should not add to it that of dictating to their consciences.
What? Is giving spiritual power to a man with temporal power really so very different from giving him who is the spiritual leader temporal power? And is not the result absolutely the same?
We would rather let ourselves be chopped into pieces than let such a combination be imposed on us, and yet we impose it on others!
Dialogue
“But, see here, this state of things that you are criticizing has been going on for centuries!”
“That is true, but it ended by inducing the Romans to revolt.”
“Do not speak to me of the Romans. They are brigands, assassins, degenerate, cowardly, without virtue, good faith, or enlightenment, and I do not see how you can take their side against the Holy Father.”
“And I, for my part, cannot understand how you can side with an institution that has made a people become what you have described.”
The world is full of honest people who would like to be Catholic and who cannot. Alas! They scarcely dare to appear to be.
Not being allowed to be Catholic, they are nothing. They have a root of faith within their heart, but they do not have faith. They aspire to a religion but don’t have a religion.
What is worse is that this desertion is growing day by day. It pushes everyone out of the church, beginning with the most enlightened.
In this way, faith is dying out with nothing to replace it and the very people who, for political reasons or because they are terrified of the future, defend religion, have no religion. To any man whom I hear declaiming in favor of Catholicism, I ask this question: “Do you go to confession?” And he bows his head.
Of course, this is a situation that is not natural.
What is the reason for it?
I will tell you frankly, in my opinion it is entirely due to the union of both fields of power in the same person.
From the moment the clergy has political power, religion becomes a political instrument for it. The clergy no longer serves religion; it is religion that serves the clergy.
[470]And soon the country will be covered with institutions whose aim, religious in appearance, is in fact material interest.
And religion is profaned.
And no one wants to play the ridiculous role of letting himself be exploited right to the depths of his conscience.
And the people reject what truth there is in religion along with the errors mingled in with it.
And then the time comes when priests cry in vain, “Be devout!”; people do not even want to be pious.
Let us suppose that the two powers were separate.
Religion would then not be able to procure any political advantage.
The clergy would then not need to overload it with a host of rites and ceremonies likely to stifle reason.
And each person would feel the root of faith, which never dries up completely, sprout in the depths of his heart.
And since religious forms would no longer be degrading, priests would not have to struggle against human respect.
And the merger of all the Christian sects into one communion would encounter no obstacles.
And the history of humanity would present no finer revolution.
But the priesthood would be the instrument of religion; religion would not be the instrument of the priesthood.
That says it all.
One of the greatest needs of man is the need for a moral code. As a father, husband, master, and citizen, man feels that he has no guarantee if a moral code does not form a brake for his fellow men.
Because this need is generally felt, there are always people inclined to satisfy it.
At the origin of each society, the moral code was encapsulated in a religion. The reason for this is simple. The moral code, in the correct sense of the term, is something which one is obliged to reason over; people have the right to put their maxims into quarantine. In the meantime, the world53——. Religion appeals to people most in a hurry. It speaks with authority. It does not advise, it imposes. “Thou shalt not kill. Thou shalt not steal.” “Why?” [471] “I have the right to say it,” replies religion, “and I have the right not to say it, because I speak in the name of God, who neither makes mistakes nor is mistaken.”
The basis of religion is therefore the moral code. In addition it has dogmas, facts, a history, ceremonies, and finally ministers.
Within the bosom of the people, ministers of religion are very influential men. Independently of the respect they attract as interpreters of the will of God, they are, in addition, the distributors of one of the things of which man has the greatest need, a moral code. . . .
Are things in religion not the same as in political economy?54 And are we not mistaken in seeking the solution in a unity that is false, imposed, intolerant, persecuting, socialist, and in addition incapable of producing its right to domination and its proofs of truth?
Unity in all things is the supreme consummation, the point toward which the human spirit gravitates and will eternally gravitate, without ever attaining it. If it were to be achieved in humanity, it would be only at the end of all spontaneous social evolution.
It is variety and diversity which are at the beginning, the origin, and the point of departure of humanity, for the diversity of opinions must be all the greater if the treasure of truths acquired is smaller and the spirit of man has reached agreement, through science, on a smaller number of points. . . .
EndnotesFollowing a political crisis in Italy, Pope Pius IX took refuge in Gaeta, in the kingdom of Naples. The Italian Republic was proclaimed in 1849. To please the French Catholics and to prevent Austria from intervening, the National Assembly sent troops to restore the pope in Rome while protecting the new republic. The new Roman republic fell nevertheless after a month of fighting. See also “Pius IX” in the Glossary of Persons.
(Paillottet’s note) The next word is missing in the manuscript. It is possible that the insertion of would perish would be in line with the thinking of the author.
This paragraph and the preceding two paragraphs were found on a separate piece of paper.
T.227 (1849.??) "Report Presented to the 1849 Session of the General Council of the Landes, on the Question of Common Land"↩
SourceT.227 (1849.??) "Report Presented to the 1849 Session of the General Council of the Landes, on the Question of Common Land" (Rapport présenté au Conseil Général des Landes, session de 1849, sur la question des communaux). [OC7.66, pp. 263-70.] [CW1.2.4.16, pp. 446-51.]
Editor's Note[to come]
TextSirs,
Two diametrically opposed ideas have always dominated this question.
Some people, struck by the spectacle of infertility widely offered by these withered fields known as heath or common land and knowing, moreover, that what belongs to everyone is properly exploited by all, but taken care of by no one, are in a hurry to see the common domain become part of the private domain and invoke the help of the law to bring their system to fruition.
Others point out to us that agriculture, and consequently all the means of existence of this country, rest on common land. They ask what would become of the private domain without the resources of the common domain. Unless we find a system of crop rotation which enables us to do without fertilizer (an agricultural revolution that is not within sight), they consider alienation a public calamity and, in order to prevent it, they also invoke the help of the law.
Your commission considered that neither of these conclusions took enough account of a fact that dominates the entire subject and considerably simplifies the task of the legislator. This fact is property, before which the legislator himself has to give way.
In effect, does not the question whether the law should force or prevent alienation begin by giving communes property rights?
We have been struck by the lack of attention paid to this right, either in the questions asked by the ministers or in the replies given by the Council before the February revolution.40
This is how the ministerial circular set out the problem in 1846:
“What is the best use to which common land should be put? Should it [447] be left as it is today? Or should it be let under a short or long lease? Should it be shared or sold?”
Is this a question that could be asked when it is a matter of a given property, short of its status as such being denied?
And what was the answer from the Council?
After speaking in justificatory and almost laudatory terms of the ancient means of appropriation, such as confiscation or usurpation, means which do not exist today, it concluded with the necessity of alienating, adding:
“The consent of municipal councils, which will nevertheless always be consulted, would not be absolutely essential for alienating common land which is either heath land or vacant. . . .”
And further on:
“The Municipal Council would be consulted on the necessity of alienation, and, whatever its opinion, would the proposal, communicated to the District Council, submitted to the General Council, and approved by it, legitimate the order authorizing the act of sale?”
It must be admitted that this dialogue between the minister and the Council totally misunderstood the rights of property. However, it is dangerous to let it be thought that this right is subordinate to the wish of the legislator. Doubtless, reasons of public good and progress were invoked, but do not those whom we have since seen take such little note of private property also invoke these reasons?
And here it was all the more worrying that the right of the commons was lost to sight, since it is precisely in this right that the solution to a number of the difficulties linked to the question of common land is to be found.
What is, in fact, the most notable of these difficulties? It is the extreme difference observed between the situations and the interests of the various localities. We would like to draw up a general law, but when we turn our hand to it, we seem to be pitting ourselves against the impossible and begin to understand that, in order to satisfy all requirements, we would have to draw up as many laws as there are communes. Why is this? Because each commune, depending on its antecedents, agricultural methods, needs, customs, the condition of its communications, and the market value of the land, has different interests with regard to its common land.
The deliberation of the General Council in 1846 accepted this in the following terms:
“The development of a policy entailing consultation as to the situation [448] of individual interests for each département and each village would be going too far. Here, we are content to state that nothing is possible if this first law is not observed, and it is above all in this matter that local custom must play an important part in the law and that the main arrangements of the law itself must leave a great deal of liberty and authority to the electoral bodies which are responsible for representing or protecting the commune.”
The impossibility of drawing up a general law comes out in each page of the report made to you last year by M. Lefranc.
“Among the purposes that we may allot to our communal assets,” he said, “in each département it is necessary to choose the one which will allow one place to be dried out and irrigated, another to provide easy and prompt transport, sowing and plantation in the Landes, advanced agriculture in the Chalosse, etc.”
In fact, it seems to me that this means: since there are as many separate interests as there are communes, let us leave each commune to administer its common land. In other words, what should be done is not to violate common property but respect it.
Therefore, the one that has common lands only, which are essential for the grazing of livestock or for making fertilizer, will keep them.
The one that has more heath land than it needs will sell it, lease it out, or enhance its value depending on the circumstances and opportunity.
Is it not a good thing that, on this occasion, as on many others, respect for the law, in harmony with public utility, is in the end the best policy?
This policy may appear very simple, perhaps too simple. These days, we are inclined to want to carry out experiments on others. We do not allow them to decide for themselves, and when we have fathered a theory, we seek to have it adopted in order to go faster, using coercive means. To leave communes to dispose of their common land would seem to be folly both to partisans and to opponents of improvement. Communes are people of habit, the first will say; they would never want to sell. They are improvident, the others will say, and will not be able to keep anything.
These two fears are mutually destructive. Besides, nothing justifies them.
In the first place, the facts prove that communes do not oppose alienation absolutely. In the last ten years, more than fifteen thousand hectares have moved into the private domain and we can predict that this movement will accelerate with the improved viability, the growth of the population, and the rise in the market value of the land.
[449]As for the fear of seeing the communes hurry to strip themselves of their wealth, this is even more of an illusion. Each time that administrative zeal has been directed to alienations, has it not met with resistance from the communes? Is it not this resistance, allegedly customary, that constantly provokes the legislator and all our deliberations? Did not M. Lefranc remind you last year that the Convention itself was not able to put across in this country a method of alienation truly attractive to people in the communes: sharing! I cannot stop myself from quoting the words of our colleague at this point:
“In order for a legislator, as powerful in his deeds and radical in his determination as the legislator of 1793, to have hesitated both to prescribe sharing in a uniform manner and to do violence to what he called the retrograde ideas of the provinces, he must have had a deep and irresistible sense of some sacred right, some imperative necessity hidden under the routine of tradition. In order for populations so violently dragged into the revolutionary current not to have found almost unanimously within their ranks a third of the votes favorable to the new procedure, eager for immediate and personal satisfaction and forgetful, given the price proffered, of the common interests and duties attaching to this common land, individuals determined, in the face of resistance, to introduce a standard, uniform law, the state of things that they wanted to destroy must have had its raison d’être elsewhere than in routine and ignorance.”
From the above, sirs, you will guess the conclusion: that the interfering law should be limited to acknowledging communal rights of property with all their consequences.
But communal property is not placed under the sole safeguard of the municipal councils. These councils are frequently renewed. A majority may occur in one of them that is the result of a momentary upset, especially under the effect of a brand-new law which is, so to speak, at the experimental stage. An intrigue ought not to result in irremediable damage for the commune. Even though the municipal councillors are the natural administrators of the commons, your commission considered that with regard to important measures, such as alienation, the General Council might be armed with a temporary veto, without the right of property being compromised. It would have the right to adjourn the execution of the Municipal Council’s conclusions until an election had given the inhabitants of the commune the opportunity of making their own opinion on the importance of the measure known.
We cannot end this report without drawing your attention to the opinion [450] issued by the prefect,41 not that we share all of his views, but because they are imbued with the most generous sentiments toward the poor classes and show all his care for the public good.
The prefect bases great hope on the common lands, not as a means of increasing the wealth of the region, since he agrees that personal appropriation would achieve this aim better, but as a means of rendering it more equal.
I have to say I find it difficult to understand how it can be the case that the exploitation of common lands, although this produces less wheat, less wine, less wool, and less meat than personal appropriation, nevertheless achieves the result that the whole community, even the poor, is better provided with all these things.
I do not wish to discuss this conception here, but I have to make the following remark: the belief of the prefect in the power of the common land is such that he is in favor, not only of absolute inalienability, but even of the setting up of common land where it no longer exists. What next? Are we now going down the path of moving land from the private to the common domain when so many years have been spent by the government in moving land from the common to the private domain?
Nothing is more likely, it seems to me, to give us confidence in the solution we have put before you than a respect for property with all its consequences. The law must stop at the point where it encounters the rights it is responsible for maintaining and not destroy them. For lastly, if for a few years the law forces common lands to be alienated because of the prevalence of the idea that common land is harmful, and if for another few years the law forces common land to be restored because it is thought to be useful, what will become of the poor inhabitants of the countryside? Will they have to be pushed in opposite directions by external forces, in line with the theory of the moment?
Note that the question is worded wrongly when you are asked, “What should be done with common lands?” It is not up to the legislator but the owner to dispose of it.
However, the commission is in full agreement with the views of the prefect when he speaks of the usefulness to the communes of adding value to the heath land that is not needed by agriculture. The council will probably second his efforts in this direction and the region will reward him with gratitude.
[451]For these reasons, the third commission has charged me with submitting to you the following draft proposal:
The General Council considers that a law on common lands cannot do other than recognize properties of this type and regulate the method by which they are administered;
It considers it natural that the Municipal Council should be charged with this administration in the name of the inhabitants of the commune;
It is of the opinion that, should the Municipal Council vote for a land sale, the General Council should have the right to suspend the implementation of this vote, if it considers this to be appropriate, until it is confirmed by the Municipal Council at the next election.
EndnotesVictor Lefranc.
The revolution of 1848.
(Paillottet’s note) M. Adolphe de Lajonkaire.
T.228 (1849.??) "Statement of Electoral Principles in 1849"↩
SourceT.228 (1849.??) "Statement of Electoral Principles in 1849. To MM. Tonnelier, Oegos, Bergeron, Camors, Oubroca, Pomeoe, Fauret, etc."(Letter to a Group of Supporters) (Profession de foi électorale de 1849. À MM. Tonnelier, Oegos, Bergeron, Camors, Oubroca, Pomeoe, Fauret, etc.). [OC1.17, p. 507.] [CW1.2.2.5, pp. 387-90.]
Editor's Note[to come]
TextDubroca, Pomede, Fauret, etc.
Thank you for your gracious letter. The constituency can dispose of me as it wishes; your enduring confidence will be an encouragement . . . or a consolation to me.
You say that I am being painted as a socialist. What can I answer? My writings are there. Have I not countered the Louis Blanc doctrine with Property and Law, the Considérant doctrine with Property and Plunder, the Leroux doctrine with Justice and Fraternity, the Proudhon doctrine with Capital and Rent, the Mimerel committee with Protectionism and Communism, paper money with Damned Money, and the Montagnard Manifesto [388] with The State? I spend my life combating socialism. It would be very painful for me to have this acknowledged everywhere except in the département of the Landes.
My votes have been depicted as close to the extreme left. Why have the occasions on which I have voted with the right not equally been mentioned?
But, you will say, how have you been able to be alternatively in two such opposing camps? I will explain this.
For a century, the parties have taken a great many names and adopted a great many pretexts; basically, it has always been a matter of the same thing, the struggle of the poor against the rich.
Now, the poor demand more than what is just and the rich refuse even that which is just. If this continues, social war, of which our fathers witnessed the first act in ’93, and of which we witnessed the second act in June, this frightful fratricidal war38 is not nearing its end. The only possible conciliation is on the field of justice, in everything and for all.
After February, the people put forward a host of iniquitous and absurd pretensions mingled with some well-founded claims.
What was needed to avert social war?
Two things:
- To refute in written form the iniquitous claims and rebuff them legally.
- To support the well-founded claims in written form and allow them legally.
That is the key to my conduct.
At the start of the revolution, popular hopes were highly exalted and knew no bounds, even in our département, and I remind you that I was not considered to be sufficiently red. It was much worse in Paris; the workers were organized, armed, and masters of the terrain, at the mercy of the most fiery demagogues.
The initial action of the National Assembly had to be one of resistance. It was concentrated above all in the finance committee, made up of men belonging to the rich class. Resisting mad and subversive demands, rebuffing progressively increasing taxes, paper money, the taking over of private industry by the state, and the suspension of national debts: such was its laborious task. I played my part, and I ask you, citizens, if I had been a socialist, [389] would this committee have selected me eight times in a row to be its vice president?
Once the work of resistance was completed, the work of reform remained to be carried out in the 1849 budget. So many unevenly shared taxes needed to be changed! So many restrictions needed to be removed! Just take this business of conscription, for example (they have since renamed it “recruitment”), a tax of seven years on lives, drawn from a hat! Given these droits réunis39 (now known as indirect contributions), a regressive income tax affecting the poor disproportionately, are these not well-founded complaints from the people? After the days in June when anarchy was defeated, the National Assembly considered that the time had come to enter resolutely and spontaneously this avenue of reparation dictated by equity and even by prudence.
The finance committee, through its composition, was less inclined to this second task than the first. New people had been introduced into it by bielections,40 and it was constantly being said that, far from changing taxes, we would be very happy if we could have reestablished the situation just as it had been before February.
For this reason, the Assembly entrusted to a commission of thirty members the task of preparing the budget. It charged another commission with harmonizing the tax on drink with the principles of liberty and equality enshrined in the constitution. I was a member of both and, much as I ardently rebuffed utopian demands, I was equally ardent in carrying out just reform.
It would take too long to relate here how the good intentions of the Assembly were paralyzed. History will reveal this. But you can understand my line of conduct. What I am reproached for is precisely what I am proud of. Yes, I have voted with the right against the left when it was a matter of resisting the excesses of mistaken popular ideas. Yes, I have voted with the left against the right when the legitimate complaints of the poor, suffering classes were being ignored.
Because of this, I may have alienated both parties and will remain crushed in the center. No matter. I am conscious of having been faithful to my commitments, logical, impartial, just, prudent, and in control of myself. Those who accuse me doubtless feel strong enough to do better. If this is so, let the constituency nominate them in my place. I will endeavor to forget that I [390] have lost its confidence by remembering that I obtained it once, and it is not a slight tremor of self-love that will efface the profound gratitude I owe it.
I remain, my dear fellow countrymen, your faithful servant.
EndnotesThe revolution of 1848.
See “To the Electors of the Département of the Landes,” p. 341, and note 10, p. 345.
A so-called bielection is an election held in a district to replace a deputy who died or resigned.
T.229 (1849.??) "Concerning Religion"↩
SourceT.229 (1849.??) "Concerning Religion" (no title in original). [OC7.81, p. 361] [CW???]
Editor's Note[to come]
Text(insert HTML of file here)
T.230 (1849.??) "Capital"↩
SourceT.230 (1849.??) "Capital" (Le capital) Published in Almanach Républicain pour 1849 (Paris: Pagnerre, 1849). Bastiat mentions the cholera outbreak which swept through Paris in July-Aug. 1849 so this might date the publication. [OC7.64, pp. 248-55.] [CW4]
Editor’s IntroductionMany of the political economists attempted to reach out to a broader audience after the Revolution broke out in February 1848 by writing more popular books and pamphlets in order to appeal to the workers who had been influenced by socialist ideas. Bastiat and Molinari edited, wrote, and handed out two revolutionary newspapers on the streets of Paris - one in February-March, called La République française , and another in June 1848, which was named Jacques Bonhomme after the French "everyman" who appeared in every issue with pronouncements and commentary on the events of the week and was clearly the voice of Bastiat himself. 732 The Guillaumin publishing firm arranged for some of the economists to write pieces in the form of conversations or dialogues between workers or socialists, and conservatives, and supporters of the free market, which they marketed as part of their anti-socialist campaign in 1848-49. Two of the best examples which were modelled on Bastiat's clever dialogues in the Economic Sophisms were Molinari's conversations between "a Socialist," "a Conservative," and "an Economist" in Les Soirées de la rue Saint-Lazare (1849) 733 and the Swiss economist Antoine-Elisée Cherbuliez's Le potage à la tortue (Turtle Soup) which was a series of conversations between "a worker" and "a professor". 734
Another important figure in this strategy was the young Mauritian economist Alcide Fonteyraud (1822-1849) 735 who also worked on Bastiat's two revolutionary journals. Because of his oratorical gifts he played an important role in the economists' debating club "Le Club de la liberté du travail" (The Freedom of Working Club) which took on the socialist debating clubs on the streets of Paris in March and April 1848 before it was forced to close because socialist thugs were beating up and intimidating the economists and their supporters. 736 Fonteyraud wrote in early 1849 an introduction to political economy which was published in a widely distributed popular encyclopedia of useful knowledge, Instruction for the People: 100 Treatises on the Most Indispensible Knowledge , before he died suddenly during the cholera epidemic which swept France in the summer of 1849. 737
Another example of Bastiat's contribution to this campaign of popularization was this pamphlet published in a radical journal, the Almanach Républicain, whose aim was to "gather together all the intelligent elite, who wanted to consolidate the Republic through the education of the People." 738 His other anti-socialist pamphlets for the most part were aimed at intellectuals and some educated workers, such as the readers of Proudhon's magazine La Voix du peuple (The Voice of the People) in their debate over "Free Credit" in late 1849 and early 1850 (see below).
Bastiat's strategy in this essay on "Capital" was to show workers that capital was not their enemy (like some plague or scourge) but rather the means for them to get higher wages in the medium to long term. The more capital there was in the form of "materials, tools, and provisions", the more productive the workers' labour was, and thus the higher the wages they would be paid. So, instead of supporting Louis Blanc and his government make-work schemes in the National Workshops, and Proudhon's schemes for a low or free interest People's Bank, the workers should be supporting the economists' policy of "security for property, freedom of economic activity, and economy in government spending."
It should also be noted that in this essay Bastiat uses the thought experiment of Robinson Crusoe on his island to explain the reasoning behind his arguments. 739 Elsewhere he used it to explain the very nature of individual economic decision making itself which is one of Bastiat’s significant contributions to economic theory. His first use of “Crusoe economics” can be found in “Organisation et liberté” (Organisation and Liberty), Journal des Économistes , January 1847, which was followed by “Midi à quatorze heures” (Making a Mountain out of a Mole Hill) ES3.16, “Autre chose” (Something Else), Libre-échange , 21 March 1847 [ES2.14], “Propriété et spoliation” (Property and Plunder), Journal des débats, 24 July 1848, and then the most detailed use of it in the chapter on “Exchange” in Economic Harmonies (1850). Interestingly, Proudhon also uses Robinson Crusoe extensively in his critique of free market economics in the “9th Letter” on Free Credit (Dec. 1849) (see below). Bastiat’s use of “Crusoe economics” was largely ignored for 100 years until it was taken up in the 1950s by Murray Rothbard when he was reworking the foundations of modern Austrian economic theory in his book Man, Economy, and State (1962). 740
Endnotes732 See the glossary entries on La République française and Jacques Bonhomme .
733 Gustave de Molinari, Les Soirées de la rue Saint-Lazare; entretiens sur les lois économiques et défense de la propriété (Paris: Guillaumin, 1849).
734 Antoine-Elisée Cherbuliez, Le potage à la tortue: entretiens populaires sur les questions sociales (Turtle Soup: Popular Conversations about Social Questions) (Paris: Joel Cherbuliez, Guillaumin, 1849).
735 Alcide Fonteyraud (1822-1849) was one of the founding members of the Free Trade Association and his knowledge of English led him to England to study the Anti-Corn Law League first hand. Fonteyraud also wrote several articles for the JDE and edited a French edition of the works of David Ricardo. He joined Bastiat, Molinari, and some other economists in publishing the revolutionary street magazine Jacques Bonhomme in June 1848. He died suddenly in August 1849 from the cholera epidemic which swept France. See the glossary entry on “ Fonteyraud .”
736 Molinari called them “a gang of communists”. See his "Obituary of Joseph Garnier," JDE, Sér. 4, T. 16, No. 46, October 1881, pp. 5-13. Molinari tells a similar story in his obituary of Coquelin with the added detail that the economists chose not to fight back and so let the communists win by not throwing a single punch to defend themselves: Molinari, “[Nécr.] Charles Coquelin,” JDE, N(os) 137 et 138. Septembre et Octobre 1852, pp. 167-76. See p. 172.
737 Fonteyraud (and Wolowski) “Principes d’économie politique” in Instruction pour le People: Cents traités sur les connaissance les plus indispensables; ouvrage entièrement neuf, avec des gravures intercalées dans le text. Tome second. Traités 51 à 100 . (Paris: Paulin et Lechevalier, 1850). Louis Wolowski and Alcide Fonteyraud, No. 92, “Principes d’économie politique,” 2913-3976.
738 The Almanach Républicain for 1849, 1 volume in-32. Paris, Pagnerre. Let us not forget that at that time strident voices used to pile up epithets like infamous and infernal to describe capital. ( French editor’s note ). The Almanac Républicain was published by Laurent Pagnerre (1805-1854) with the aim of "gather(ing) together all the intelligent elite, who wanted to consolidate the Republic through the education of the People". It published articles by many famous figures such as Victor Cousin and Lamartine. See the Glossary on “ Pagnerre .”
739 See David Hart’s Introduction to CW3 for more details. See the glossary entry on “Robinson Crusoe”.
740 Murray N. Rothbard, Man, Economy and State: A Treatise on Economic Principles, with Power and Market: Government and the Economy. Second Edition. Scholar's Edition (Auburn, Alabama: Ludwig von Mises Institute, 2009); and "6. A Crusoe Social Philosophy," in The Ethics of Liberty (Atlantic Highlands, N.J.: Humanities Press, 1982).
TextWho does not recall the shiver of terror that ran through an astonished Europe when travelers, returning from far-off lands, brought the following news to their ears: “India has spewed out cholera over the world! It is growing, spreading, advancing and decimating nations in its passage, and our civilization will not stop it.” 741
Could it conceivably be true that civilization in its turn, jealous of barbarism, has given birth to a scourge a thousand times more terrible, a devouring monster or a cancer that attacks the most sacred thing of all, labor , the very sustenance of the life of nations, an implacable tyrant ever bent on widening constantly the abyss of inequality between men, impoverishing the poor to make the rich more wealthy, sowing destitution, exhaustion, hunger, envy, rage and upheaval in its wake, unceasingly filling convict settlements and prisons, hospices and tombs, a scourge more deadly in its constant and eternal action than cholera and the plague : CAPITAL, to give it at last as we must its proper name! 742
Quite clearly men are not ready to get on well with one another, for this very entity, Capital, that is painted by some in such odious colors, is held up by others, including myself, as being the sustenance of the poor, the universal agent of equality, the stimulus of progress, and the liberator of the classes that labor and suffer.
Who is wrong and who is right? This is not a question merely of curiosity, for in the end, if capital is a destructive scourge, we ought to side with the serried ranks of those who combat it so arduously. If, on the other hand, it is a benefactor of the human race, this senseless war is strange in that the assailants inflict on themselves all the blows that they aim at it.
What is capital, then? What is its origin? What is its nature? What is its purpose? What are the elements that compose it? And what are its effects?
Some people say: “It is the land , this source of all wealth, which has been taken over by just a few.” Others say: “It is money , this vile metal, the object of such filthy greed that has drenched the world in blood from the dawn of mankind.”
Let us witness the birth and initial accumulation of capital; in this way, we will be able to form an accurate idea of it.
When Robinson Crusoe, 743 the peace-loving hero so constantly loved by every generation of children, found himself washed ashore by a storm on to a desert island, the most pressing need of our precarious nature forced him to pursue the prey that would save him from death each day. He would have liked to build himself a hut, fence a vegetable patch, mend his clothes, or make himself some weapons, but he realized that, in order to be able to devote time to these tasks, he needed raw materials, tools, and above all, provisions, for our needs are structured in such a way that we cannot work to satisfy some without having accumulated enough to satisfy the others. Even if he lived for an eternity, Crusoe would never have been able to undertake the construction of a hut or the manufacture of a tool without having previously established a stock of game or fish.
This is why he often said to himself: “I am the greatest landowner in the world and the most destitute of men. Land does not constitute capital for me. Even if I had saved a sack of louis [gold coins] from the shipwreck, 744 I would be no further advanced, since money does not constitute capital for me. My sole and obligatory task is to hunt. The only thing that would enable me to move on to other occupations would be each day to kill a little more game than I need for the day and thus to amass some provisions . While living on these provisions, I would be able to manufacture weapons that would make my hunting more productive, thus enabling me to increase my stock of provisions, freeing my time for more lengthy tasks. I am perfectly aware that the main constituent of capital is provisions and the second, tools .
Materials, tools, and provisions , these constitute the capital of a man on his own; three things without which he is tied to the pursuit of basic subsistence, three things without which there can be no subsequent tasks for him, nor consequently any possible progress, three things that assume that it has been possible for his consumption to be less than his production and that he has been able to build up a reserve and save some of it.
And this is also the true definition of capital for people living in society. The capital of a nation is the sum of its materials, provisions, and tools.
When I speak of materials, I mean those things that are the fruit of work and saving. If this condition is not met, they belong to nobody. In accordance with this condition, they naturally belong to the people who produced them and who, while they might have consumed them, have refrained from doing so.
To do anything at all in this world, you need a certain amount of one or two of these things, or all three. How would we be able to build, construct, plough, weave, spin, forge, read, or study if we have not acquired materials, tools, and in any case a few provisions, through hard work and saving?
When, while he is working, a man consumes the capital he himself has built up, he can be considered as encompassing all the qualities of a producer, consumer, lender, borrower, debtor, creditor, capitalist, or worker, and since all aspects of economic activity are fully realised in a single individual, the mechanism is extremely simple to understand, as the example of Robinson Crusoe demonstrates.
However, if this man uses the material, tools, and provisions produced and saved by someone else, the phenomenon becomes more complicated. He obtains them only as a result of a transaction, and this transaction always requires a reward for the lender. Thus, for example, does the man who borrows for a year the three things without which he could do nothing and would die of hunger, owe anything other than the straightforward and full return of the things he has borrowed? I consider the affirmative to be incontestable, and this has been true for all men from the dawn of time up to Proudhon. 745 Indeed, if Robinson forgoes part of his food today, if he puts aside some of his game in order to devote himself to a more profitable line of work than hunting, and if Friday borrows this game from him (RC), it is clear that he (Friday) will not be able to obtain it (from RC) with a simple offer of mere restitution unless Robinson, as part of their mutual exchange of services, didn’t wish to inflict some harm upon himself. The basis for the transaction will be as follows:
Robinson Crusoe will make a loan if he calculates that a an additional day spent hunting, plus the agreed upon payment, is worth more to him than other work he was planning to do.
Friday will take out a loan if he calculates that the work that this loan will enable him to do, once the agreed upon payment has been deducted, will be worth more to him than the work which he would have done without this loan.
In this way, it can be stated that the principle of remuneration is inherent in capital. Since it is advantageous to the person who has accumulated it, this person cannot fairly be expected to hand it over without any compensation.
This compensation is given a variety of names, depending on the nature of the object being lent. If it is a house, it is called a rent , if it is a piece of land, land rent , etc.
In complex societies, it is rare for a lender to have exactly the thing a borrower needs. For this reason, the lender converts his capital (materials, tools, and provisions) into cash and lends this money to the borrower, who is then able to procure for himself the type of materials, tools, and provisions he needs. The payment for capital lent in this form is known as interest .
Since the majority of loans require, for convenience, this prior double conversion of capital into money and money into capital, people have ended up by confusing capital with money. This is one of the most disastrous errors in political economy.
Money is just one way of facilitating the passage of things, physical objects , from one hand to another. Therefore simple notes and simple transfers from one account to another are often enough. How much of an illusion, then, are people under when they think they are increasing materials, tools, and provisions in the country by increasing the amount of money (argent) and notes (billets)! 746
Naturally, we all come into the world with no capital, which is something we are too prone to forget. Some people receive a great deal from their father, others just a little, and yet others none at all.
This latter category would be like Robinson Crusoe on his island if nobody before them and around them had worked and saved .
They are thus compelled to borrow, which as we have seen, means that they work on materials with tools while living on provisions that other people have produced and saved, and by paying a price for this.
This having been said, what interest have they in doing this? Their interest is that the price should be as little as possible, that is to say, that the proportion of the production to be handed over in return for the use of the capital is held within limits that are increasingly narrow. The more restricted this share that the capitalist takes from the worker is, the more the worker will be able to save in his turn and to accumulate capital. 747
Yes, the worker should know and be convinced that his interest, his dominant and fundamental interest, lies in the abundance of capital around him and in there being a proliferation of materials, tools, and provisions , for these things are also in competition with each other. The more there are of them in the country, the less payment is asked for them from those to whom they are lent. Workers have an interest in being able to put their labor up for auction or leaving the employ of one capitalist for another who is more agreeable to them.
When capital is abundant, earnings rise: that is as inevitable as a tray of a set of scales falling when weight is put into it.
Workers, do not let yourselves be imposed upon. Nothing is finer or more pleasant than fraternity . 748 It may heal a great many small pains and put balm on a great many wounds, but what it cannot do is raise the general rate of pay. No, it cannot do this, because neither words, sentiments, nor wishes can ensure that a given quantity of tools and materials can yield more output, or that a given quantity of provisions can provide a greater share to each person.
You have been told that capital attracts the majority of profit to itself. This is true when it is scarce, not when it is abundant.
You have been told that capital competes with labor. This is more than an error, it is a ridiculous absurdity. The abundance of tools and materials cannot damage production any more than an abundance of provisions exacerbates need.
Workers compete with each other; work competes with itself.
Capitalists compete with each other; capital competes with itself.
That is the truth. But to say that capital competes with labor is to say that bread competes with hunger or that light obstructs one’s view.
And, workers, if it were true that you had only one lifeline, the indefinite increase in capital and the constant accumulation of materials, tools, and provisions , what should you want?
You should want society to be in the most favorable condition possible for this increase and accumulation of capital to occur.
What are these conditions?
The first and foremost of these is security . If people are not certain of enjoying the fruit of their labor, they will neither work nor accumulate anything. Under a regime of uncertainty and fear, old capital will be hidden, spent, or abandoned and new capital will not be created. The mass of provisions will be frittered away and each person’s share will decrease, starting with yours. You should therefore demand security from the government and help establish it.
The second is freedom . When people are no longer able to work freely, they work less; the share of saving is less, capital does not increase in proportion to the number of hands, earnings decrease, and destitution decimates you. In these circumstances, charity itself is a useless remedy, if not for a few individuals, at least for the masses, for although charity has huge merits, unlike production, it cannot increase the amount of bread available.
The third is economy . When a nation’s entire annual savings are eroded through the folly of its government or the ostentatious living of individual citizens, capital cannot increase.
People of France, do we have to put this into words? Our beloved country shines in the view of other nations because of its eminent qualities, but the three conditions that are essential for the establishment of capital, security, freedom, and economy, are not to be found in our midst. This is the reason, and the sole reason, for our impoverishment.
Endnotes741 The dangers of cholera at this time were significant. One of Bastiat’s close colleagues Alcide Fonteyraud (1822-1849) died in the cholera epidemic which swept Paris in August 1849.
742 In ES1.22 "Metaphors" (late 1845) Bastiat objected to supporters of protectionism and subsidies using value-laden military metaphors, such as "invasion" and "paying tribute,” and other metaphors drawn from natural disasters such as "floods", to describe imports from other countries. Here he objects to critics of "capital" comparing it to infectious diseases like cholera and the plague.
743 [DMH - This is an early example of Bastiat’s use of the Robinson Crusoe story to explain the nature of individual economic decision making which is one of Bastiat’s significant contributions to economic theory. His first use of “Crusoe economics” can be found in “Organisation et liberté” (Organisation and Liberty), Journal des Économistes , Janvier 1847] which was followed by “Midi à quatorze heures” (Making a Mountain out of a Mole Hill) (an unpublished outline from 1847) in ES3.16, “Autre chose” (Something Else), Libre-échange , 21 March 1847] [ES2.14], “Propriété et spoliation” (Property and Plunder), Journal des débats, 24 July 1848], and then the most detailed use of it in the chapter on “Exchange” in Economic Harmonies (1850). Interestingly, Proudhon also uses Robinson Crusoe extensively in his critique of free market economics in the 9th Letter on Free Credit (Dec. 1849). See David Hart’s Introduction to CW3 for more details.See the glossary entry on “Robinson Crusoe”.]
744 DMH - The “Louis”, short for “Louis d’or” is French gold coin which was first issued by King Louis XIII in the 17th century. It featured the head of Louis on one side of the coin, hence the name. It was replaced by the franc during the French Revolution but during the Restoration of the monarchy under Louis XVIII it was revived as a 20 franc gold coin.
745 Of all the socialist critics with whom Bastiat debated Proudhon was the best known and most formidable. Their most extended debate took place at the end of 1849 in Proudhon’s journal la Voix de Peuple (The Voice of the People) over a period of 3 months on the topic of the legitimacy of charging interest and free credit. Their exchanges were published in early 1850 as separate books by both Proudhon and Bastiat - Gratuité du crédit (Free Credit) (1850). In a series of works Proudhon attacked the very heart of the free market position with his attacks on the legitimacy of property (“property is theft”) in Qu’est-ce que la propriété? ou Recherche sur le principe du droit et du gouvernement (What is Property? or Research on the Principles of Justice and of Government) (1840), that the free market inevitably produces conflict and disharmony in Système des contradictions économiques (The System of Economic Contradictions) (1846), and that workers have the right to a job guaranteed by the state if necessary in Le droit au travail et le droit de propriété (The Right to a Job and the Right to Property) (1850). In the two years between the middle of 1848 and 1850 Bastiat wrote 12 anti-socialist pamphlets to counter the ideas of Proudhon and other socialists. See glossary entry on “ Proudhon ”.
746 On the topic of money see Bastiat’s essays “Prix absolus” (Nominal Prices), Journal des Économistes , October 1845, T. 12, p. 213-15 [ES1 11]; and "Maudit argent" (Damned Money), Journal des Économistes , 15 Avril 1849, T. 23, no. 97, pp. 1-20[CW4].
747 Here Bastiat uses the terms “capitaliste” and “prolétaire” which is a little unusual as they have socialist connotations. Words like “ouvrier” or “travailleur” were much more commonly used by him. The fact that he is writing a popular piece directed at workers may explain his choice of words.
748 The four slogans used by socialists such as Louis Blanc and Charles Fourier during the Revolution to win workers over to their cause were “fraternity” (the brotherhood of all workers), “solidarity”, “association” (cooperative living and working arrangements), and “organisation” (the organization of labor).In numerous essays written during the Second Republic Bastiat opposed the socialist idea of state-enforced “Fraternité, Solidarité, Organisation, Association” which he termed “les noms séducteurs” (seductive names). He supported the ideals of the Republic (liberty, fraternity, and equality) but in a very different sense. As he saw it there was a vast difference between “la fraternité spontanée” (spontaneous or voluntary fraternity) and “la fraternité légale” (state imposed or enforced fraternity). See,“La Loi” (The Law) (Mugron, July 1850). See in particular “Individualisme et fraternité” (Individualism and Fraternity) (June 1848) CW2; “Justice et fraternité" (Justice and Fraternity), Journal des Économistes , 15 June 1848 [CW2].
T.294 "On the Value of Services" (c.1849-50)↩
SourceT.294 (1849-50) "On the Value of Services" (no date). This previously unpublished sketch was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to "Property and Plunder" and no date was given. Probably written 1849-50. [OC4, p. 406] [CW2, p. 156]
Editor's IntroductionThis short undated piece shows Bastiat musing about his evolving theory of exchange as the mutual exchange of services, or "service pour service" (service for service). 1255 This is continued in the next short piece (below, p. 000) His theory would emerge more fully developed in EH Chap. IV "Exchange."
TextIt is not enough (to say) that value is not to be found in material things or in the forces of nature. It is not enough (to say) that it be found exclusively in services . It is also necessary (to say) that the services themselves may not have an excessively high value. What does it matter to the unfortunate worker whether he pays for expensive wheat because the landowner has to pay for the productive powers of the soil, or even has to pay an excessive amount for his own involvement?
It is the job of Competition to equalize the services on the basis of justice. It does this constantly.
1255 See the glossary entry on "Service for Service."
T.316 "Money and the Mutuality of Services" (c. 1849)↩
SourceT.316 [1849.??] "Money and the Mutuality of Services" (Mutualité des services) This previously unpublished note was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to "Damn Money!" and no date was given. Probably written 1849. [OC5, p. 81] [CW4]
IntroductionAgain in this short sketch we see Bastiat musing about what he means by the "mutuality of services" or the reciprocal nature of exchanging one service for another. 1256
An interesting addition is the idea of society being "un vaste bazar" (a huge bazaar), or that the process of trading is like a "bazar d'échange" (a trading bazaar). He first used this metaphor in the second speech he gave for the Free Trade Association in September 1846 in Paris:
The world may be considered, from the economic point of view, as a huge bazaar to which each of us brings his services and receives in return … what? Some écus, that is to say, vouchers that give him the right to withdraw from the collection of services (an amount) equivalent to those he has paid in. 1257
Instead of physically taking our goods to a bazaar and swapping or bartering them for other goods, the use of money simplifies the process by turning everybody's home into their own "trading post."
It is possible that this undated sketch might have been written in February 1849 when Bastiat wrote "Capital and Rent" (see below, pp. 000).
TextThe mutuality of services. After all that has gone before, society may be thought of as a huge bazaar to which everyone initially brings their products, and has their value acknowledged and set. Following this, he is authorized to take from the collection of stores some goods of his own choosing of an equal value. Now, how is this value assessed? By the service which is received and rendered. We thus have exactly what Mr. Proudhon was asking for. 1258 We have this trading bazaar, which has been so laughed at, and society, which is more ingenious than Mr. Proudhon, gives us this bazaar while sparing us the inconvenience of having to physically take our goods to it. To achieve this, it has invented money, by means of which it creates an entrepôt (trading post) in (one's own) home.
1256 See the glossary entry on "Service for Service."
1257 1846.09.26 "Deuxième discours, à Paris" (Second Speech given in the Montesquieu Hall in Paris). Salle Montesquieu, 29 septembre 1846. JDE , octobre 1846] [OC2.43, p. 238] [CW6]
1258 Proudhon discussed his plans to create a separate and artificial company (une société) to achieve what Bastiat thought the market already did very well. Proudhon likened it to an "Exposition," no doubt inspired by the Great Exposition held in London in 1851, with the important change that it be made permanent. In this "bazaar," the products of industry would be permanently on display for all to see. Bastiat argues here and elsewhere that the free market is such a "permanent bazaar." See "Appendice: Société de l'Exposition perpétuelle: projet," in Théorie de la propriété. Deuxième édition (Paris: Librairie Internationale, 1866), pp. 249-308. The discussion of the permanent bazaar is on p. 297.
T.231 (1849.01) Protectionism and Communism↩
SourceT.231 (1849.01) Protectionism and Communism (Protectionisme et communisme). Published as a pamphlet, Protectionisme et Communisme (Paris: Guillaumin, 1849). [OC4, pp. 504-45.] [CW2.12, pp. 235-65.]
Editor's NoteThis article is Bastiat’s response to Adolphe Thiers’s book De la propriété, which appeared in the fall of 1848.
TextDo not be ungrateful to the February revolution. It surprised you, offended you perhaps, but it also prepared you as an author, orator, and privy councillor2 for unexpected triumphs. Among these successes, there is one that is certainly very extraordinary. In the last few days the following appeared in La Presse:
“The association for the defense of national work (formerly the Mimerel Committee) has just sent a circular to all its correspondents to announce that a subscription had been set up to support the distribution in the workshops of M. Thiers’s book on property. The association itself is buying five thousand copies.”
I would have liked to have been present when your eyes saw this flattering announcement. A flash of malicious joy must have shone in them.
It is very true to say that the ways of God are as unerring as they are mysterious. For if you are ready for a moment to agree that when it is generalized, protectionism becomes communism (something which I will shortly endeavor to demonstrate), just as carp fry become adult carp provided that God keeps them alive, it is already very strange that a champion of protectionism [236] poses as a destroyer of communism; but what is even more strange and consoling is that a powerful association, which was formed to propagate the communist principle both theoretically and practically (to the extent that the association considered it profitable for its members), should now devote half of its resources to destroy the evil that it has done with the other half.
I repeat, this is a consoling sight. It reassures us that the truth will inevitably triumph, since it reveals that the first and true propagators of subversive doctrines, terrified by their success, are now concocting both the antidote to the poison and the poison in the same dispensary.
It is true that the latter assumes that the communist and prohibitionist principles are identical, and perhaps you do not accept this identity, although to tell the truth I cannot think it possible that you could have written four hundred pages on property without being struck by this. Perhaps you think that a little effort devoted to commercial freedom or rather free trade, impatience with sterile discussion, the ardor of combat, and the energy of the struggle have shown me the errors of my adversaries under a magnifying glass, as happens only too oft en to us polemicists. Doubtless it is my imagination that is inflating the theory of Le Moniteur industriel to the dimensions of that of Le Populaire, in order to more easily be right about it. Is it likely that major manufacturers, honest landowners, rich bankers, and clever statesmen unwittingly and unintentionally made themselves the initiators and apostles of communism in France?
Why not, may I ask? There are many workers, brimming with a sincere belief in the right to work, who are consequently communists without knowing it or wishing it and who would not allow people to consider them such. The fact is that in all classes interest directs the will, and the will, as Pascal said, is the major organ of credit. Under another name, many industrialists, highly honest people incidentally, treat communism as it is always treated, that is to say, on the condition that only other people’s property will be shared out. But as soon as this principle is gaining ground and it becomes a matter of releasing their own assets to be shared out, then, oh dear! communism repels them! They distributed Le Moniteur industriel, and now they are distributing the book on property. To be surprised by this, you would need to have no knowledge of the human heart and its secret recesses and of how easily it makes itself a skillful deceiver.
No, sir, it is not the heat of the struggle that has caused me to see the prohibitionist doctrine in this light, since, on the contrary, it is because I [237] saw it in this light before the struggle that I became involved.3 Please believe me, expanding our foreign trade a little, an incidental result that is certainly not to be sniffed at, has never been my decisive reason for this. I believed and still believe that property is involved in this question. I believed and still believe that our customs duties, because of the spirit in which they were drawn up and the arguments used to defend them, have made a breach in the very principle of property through which all the rest of our legislation threatens to drive.
Considering the state of people’s minds, it seemed to me that a form of communism that—I have to say this to be fair—is unaware of itself and its effects was about to overwhelm us. It seemed to me that this form of communism (for there are several forms) was taking advantage very logically of the prohibitionist arguments and limiting itself to insisting on its implications. It is therefore in this domain that I considered it useful to combat this form of communism, since it was arming itself with the sophisms put about by the Mimerel Committee and since there was no hope of overcoming this form of communism as long as these sophisms were left unrefuted and triumphant in the public outlook. It is from this point of view that we took our stance in Bordeaux, Paris, Marseilles, and Lyons when we founded the Association pour la liberté des échanges (free-trade association). Commercial freedom, considered in its own right, is doubtless a precious asset for nations, but all in all if we had had only this in view, we would have given our association the title of Association for Commercial Freedom, or even more politically apposite, for the gradual reform of duties. But the term free trade implies the freedom to dispose of the fruits of your work, in other words, property, and this is the reason that we preferred it.4 Of course we knew that this term would raise difficulties. It affirmed a principle, and this being so it was bound to cause all the advocates of the opposing principle to join the ranks of our opponents. What is more, it was extremely repugnant to people, even those best disposed to support us, that is to say, the merchants, who were then more concerned with reforming the tariffs than overcoming [238] communism. Le Havre, while sympathizing with our views, refused to come under our banner. People everywhere told me, “We are more likely to obtain a lessening of the duties on our products by not parading absolute demands.” I replied, “If this is your sole view, take action through your Chambers of Commerce.” I was also told, “The term free trade terrifies and makes success less likely.” This was perfectly true, but I drew my strongest argument for its adoption from the very fear conjured up by this term. The more it terrifies people, I said, the more it proves that the notion of property is losing its hold in people’s minds. The prohibitionist doctrine has distorted ideas, and distorted ideas have produced protectionism. Obtaining an accidental improvement in customs duties by stealth or the goodwill of the minister is to alleviate an effect, not destroy the cause. I therefore continued to use the term free trade, not out of spite but because of the obstacles that it was bound to create for us, obstacles that revealed the sickness of people’s minds and thus proved beyond doubt that the very foundations of social order were being threatened.
It was not enough to indicate our aim by means of a term; the term needed to be defined. That is what we did, and I quote here, as supporting evidence, the first act or manifesto of this association:
At the time of joining forces to defend a great cause, the undersigned feel the need to set out their beliefs and to proclaim the aim, limits, means, and spirit of their association.
Trade is a natural right like property. Any citizen who has created or acquired a product must have the option of either using it immediately or selling it to another person on the earth’s surface who is free to give him in exchange the object of his preference. Depriving him of this faculty, when he has not used it to contravene public order and proper behavior, and solely to satisfy the convenience of another citizen, is to legitimize plunder and contravene the law of justice.
It also violates the conditions of order, since what order can there be within a society in which each branch of production, supported by the law and public forces, seeks its success through the oppression of all the others?
This is to misunderstand the providential design which rules human destiny as shown in the infinite variety of climate, seasons, and natural forces and the aptitudes and goods that God has so unequally shared out between men with the sole aim of uniting them through trade in the bonds of universal fraternity.
[239]It is to oppose the development of public prosperity, since he who is not free to trade is not free to choose his work and is obliged to give a false orientation to his efforts, faculties, capital, and the agents nature has made available to him.
Last, it is to compromise peace between nations since it disrupts the relationships that unite them and that make wars impossible by making them too costly.
The aim of the Association is therefore la liberté des échanges.
The undersigned do not contest the right of society to establish taxes on goods that cross the border in order to cover common expenditure, provided that they are determined solely in view of the needs of the treasury.
However, as soon as the tax loses its fiscal character and aims to repel foreign goods, to the detriment of the tax system itself, in order to raise the price of a similar national product artificially and thus hold the community to ransom for the benefit of a particular group, protectionism or rather plunder instantly becomes manifest and this is the principle the Association aims utterly to discredit in people’s minds and remove totally from our laws, independently of any form of reciprocity and arrangements in force elsewhere.
Although the Association is pursuing the total destruction of the protectionist regime, it does not follow that it is asking for a reform of this nature to be achieved overnight and result from a single vote. Even to retrace one’s steps from evil to good and from an artificial state of affairs to a natural situation, precautions may be required as a matter of prudence. Such details of execution are part of the powers of the state; the mission of the Association is to spread knowledge of and popularize the principle.
As for the means it intends to use, it will never seek these elsewhere than in constitutional and legal avenues.
Last, the Association is independent of all political parties. It is at the service of no industry, sector, or part of the national territory. It embraces the cause of eternal justice, peace, union, free communication, and fraternity among all men and the cause of general interest, which is confused everywhere and in all aspects with that of the public as a consumer.
Is there one word in this manifesto that does not reveal a burning desire to strengthen or even reestablish the notion of property, corrupted by a regime of restriction, in people’s minds? Is it not plain that in the manifesto commercial interest is secondary and social interest primary? Note that the duty in itself, whether good or bad from an administrative or fiscal point of [240] view, is of little concern to us. But as soon as it acts intentionally in a protectionist manner, that is to say, as soon as it reveals a tendency to plunder and the negation in principle of the right to property, we fight against it, not as a customs duty but as a system. It is the idea of this system, we argue, that we are endeavoring to discredit utterly in people’s minds in order to make it disappear from our laws.
Doubtless the question will be asked why, with regard to a general matter of this importance, we have limited the struggle to the domain of a specific question.
The reason is simple. It was necessary to oppose one association by another and recruit interests and soldiers into our army. We were fully aware that between prohibitionists and free traders the polemic could not be prolonged without its shaking up and finally resolving all the moral, political, philosophical, and economic questions that relate to property, and since the Mimerel Committee had compromised this principle by pursuing just one specific aim, we had to hope to raise the principle by pursuing in our turn the specific and opposing aim.
But what does it matter what I may have said or thought in previous times? What does it matter that I may have glimpsed or thought that I had glimpsed a certain link between protectionism and communism? The essential is to know whether this link exists. That is what I am going to examine.
Doubtless you remember the day when, with your natural skill, you caused M. Proudhon to utter this admission that has become famous: “Give me the right to work and I will yield you the right of property.” M. Proudhon did not hide that in his view these two rights are incompatible.
If property is incompatible with the right to work and if the right to work is based on the same principle as protectionism, what ought we to conclude other than that protectionism is itself incompatible with property? In geometry, it is held to be an incontrovertible truth that two entities equal to a third are equal to each other.
However, it has happened that an eminent orator, M. Billault, believed it to be his duty to support the right to work on the rostrum. This was not easy in view of the admission let slip by M. Proudhon. M. Billaultfully understood that having the state intervene to equalize wealth and level situations was to embark on the slippery slope to communism, and what did he say to persuade the National Assembly to violate the whole basis of property? He simply told you that what he was asking you to do you were already doing [241] through your customs duties. His claim does not go beyond a somewhat wide application of doctrines that are accepted and applied by you. These are his words:
Cast a glance on our customs duties. Through their prohibitions, differential taxes, subsidies, and various arrangements, society is helping, supporting, slowing down, or speeding up all the forms of national work [very good]. Society not only holds the balance between French work, which it protects, and foreign work, but in our homeland various forms of industry still see it constantly intervening between them. Listen to the never-ending claims before the courts by one industry against another, for example, industries that use iron complaining against the protection given to French iron against foreign iron, those that use flax or spun cotton protesting against the protection given to French yarn against foreign yarn, and so on. Society [he should have said the government] thus finds itself closely involved in all the struggles and difficulties of work. It actively intervenes in it on a daily basis both directly and indirectly, and the first time you have customs problems you will see that whether you like it or not you will be obliged both to take sides and sort out the rights of each of the interests.
The argument that it is the debt owed by society to destitute workers that causes the government to intervene in the question of work is therefore not a valid one.
And please note that in his argumentation, M. Billault had no thought of subjecting you to bitter irony. He is not a free trader in disguise taking pleasure in making the lack of consistency of the protectionists palpable. No, M. Billault is himself a bona fide protectionist. He aspires to having wealth leveled by the law. To this end, he considers the action of customs duties useful, and when he encounters the right to property as an obstacle he leaps over it, just as you do. He is then shown the right to work, which is a second step in the same direction. He next encounters the obstacle of the rights of property and leaps over it once more. However, on turning around, he is totally surprised to see that you are no longer following him. He asks you why. If you reply:
I accept in principle that the law may violate property, but I find it inconvenient for it to do this under the guise of the right to work,
M. Billault would understand you and would discuss with you this secondary question of opportuneness. But you counter him with the actual principle [242] of property. This surprises him and he thinks he has the right to say to you:
Do not play the good apostle now, and if you reject the right to work, let it at least not be by basing yourself on the rights of property, since you are violating this right by means of your customs duties whenever it suits you.
He might add with good reason:
Through protectionist duties you oft en violate the property of the poor for the benefit of the rich. Through the right to work you will be violating the property of the rich for the benefit of the poor. By what misfortune have you been overcome by scruples this late in the day?5
Between M. Billault and you, therefore, there is just one difference. Both of you are treading the same path, that of communism. The only thing is that you have taken one step and he has taken two. In this respect, in my view at least, you have the advantage. However, you lose it from the point of view of logic. For since, like him, you are walking with your back turned from property, it is amusing to say the least that you pose as its champion. This is an inconsistency that M. Billault has been able to avoid. But alas! It is only for him to fall in turn into a depressing battle of words! M. Billault is too enlightened not to sense, at least dimly, the danger of each of his steps along a path that leads to communism. He does not lay himself open to ridicule by posing as the champion of property just when he is violating it, but how does he think of justifying himself? He invokes the favorite axiom of those who want to reconcile two irreconcilable things: There are no principles. Property, communism, let us take a bit from anywhere we choose depending on the circumstances.
In my view, the pendulum of civilization, which swings from one principle to the other depending on the needs of the moment, but which always records a step forward, will return to the need for government action after strongly inclining toward the absolute freedom of individualism.
There is therefore nothing new under the sun; there are no principles since the pendulum has to swing from one principle to the other depending on the needs of the moment. Oh, metaphor! Where would you lead us if we gave you your head!6
As you so judiciously said from the rostrum, not everything can be said, and still less written, all at once. It should be clearly understood that I am not examining here the economic aspect of the protectionist regime. I am not looking to see whether, from the point of view of national wealth, it does more good than harm or more harm than good. The only point I wish to prove is that it is nothing other than a manifestation of communism. MM Billault and Proudhon have begun the demonstration. I will try to complete it.
First of all, what is meant by communism? There are several ways, if not of achieving communality of property, at least of trying to achieve it. M. de Lamartine counted four. You think that there are at least a thousand, and I agree with you. However, I think that they can all be divided into three general categories, of which just one, in my opinion, is genuinely dangerous.
First of all, two or more men can envisage pooling their work and lifestyle. As long as they do not seek to infringe security, restrict freedom, or usurp the property of others, either directly or indirectly, if they do harm, they harm themselves. The tendency of these men will always be to achieve their dreams in distant deserts. Anyone who has thought about these things knows that those who are unfortunate will perish in torment, the victims of their illusions. In these days communists of this type have called their illusionary Elysian Fields Icaria,7 as if they had had the gloomy premonition of the terrible outcome to which they were being driven. We must weep for their blindness and should warn them if they were likely to listen to us, but society has nothing to fear from their illusions.
Another form of communism, and decidedly the most brutal, is this: make a heap of all the assets that exist and share them out ex aequo.8 This is plunder that has become a dominant and universal rule. It is the destruction not only of property but also of work and the very motivation that stimulates men to work. This form of communism is so violent, absurd, and monstrous that in truth I cannot really think it is dangerous. This is what I [244] said some time ago to a large assembly of voters, the majority of whom belonged to the suffering classes. An outburst of murmuring greeted my words.
I showed surprise. “What!” it was said; “M. Bastiat dares to say that communism is not dangerous! He must be a communist! Well, we thought as much, since communists, socialists, and economists are all tarred with the same brush as the rhyme shows.” I had some trouble extricating myself from this fix. But this very interruption proved the truth of my statement. No, communism is not dangerous in its most naïve form, that of pure and simple plunder; it is not dangerous when it causes dread.
I hasten to say that while protectionism may and should be assimilated to communism, it is not to the form I have just described.
But communism also has a third form.
Causing the state to intervene, giving it the mission of evening out profits and balancing wealth by taking from some without their consent in order to give to others with no retribution, making it responsible for carrying out the work of leveling through plunder, this is definitely communism. Neither the procedures practiced by the state to do this nor the fine names used to adorn this idea change this. Whether direct or indirect means are used to achieve this, through restriction or taxes, through customs duties or the right to work, whether equality, solidarity, or fraternity is invoked, this does not change the nature of things. Plundering property is no less plunder because it is accomplished legally, in an orderly fashion, systematically, and through the implementation of the law.
I add that this is the form of communism that is truly dangerous in our time. Why? Because in this form we see it always ready to invade everything. And look! One person asks the state to supply the tools of their trade free of charge to artisans and workers; this is inviting it to seize them from other artisans and workers. Another wants the state to lend interest free; it cannot do this without violating property. A third claims free education at all levels. Free! That means at taxpayers’ expense. A fourth demands that the state subsidize associations of workers, theaters, artists, etc. But such subsidies embody an equal level of income withheld from those who have legitimately earned it. A fifth will not rest until the state has artificially raised the price of a product for the benefit of those selling it, but this is to the disadvantage of those who buy it. Yes, in these terms there are very few people who in one way or another are not communists. You are one, M. Billault is one, and I fear that in France we are all such to a greater or lesser extent. It seems as [245] though intervention by the state reconciles us with plunder by attributing responsibility for it to everyone, that is to say, to no one, with the result that people can enjoy the property of others with a perfectly clear conscience. Did not the honest M. Tourret, one of the most upright men to sit on a ministerial bench, start his exposition of the reasons for the draft law on advance payments to agriculture in this way: “It is not enough to give education to encourage the arts; it is also necessary to provide the tools of the trade”? Following this preamble, he submitted to the National Assembly a draft law whose first article went as follows:
Article I: In the 1849 budget, a credit of ten million has been opened for the minister of agriculture and trade, intended to make advance payments to landowners and associations of owners of rural assets.
Admit that if legislative language were concerned with accuracy, this article should have been drafted thus:
During 1849 the minister of agriculture and trade is authorized to take ten million from the pockets of workers who have great need of it and to whom it belongs in order to put it in the pockets of other workers who also need it and to whom it does not belong.
Is this not a communist act, and when generalized does it not constitute communism?
Take a manufacturer who would die rather than steal a sous. He does not have the slightest scruple in submitting the following request to the legislature: “Enact a law that raises the price of my cloth, iron, or coal and makes it possible for me to hold my purchasers to ransom.” Since the reason on which he bases his request is that he is not happy with his profit as provided by freedom to trade or free trade (which I state is the same thing, whatever people say),9 and since we are all discontented with our profit and inclined to call upon the legislature, it is clear, at least to me, that if the legislature [246] does not hasten to say, “That is none of my business; I am not responsible for violating property but for guaranteeing it,” I say that we are clearly in the throes of communism. The means of implementation used by the state may differ, but they all have the same aim and follow the same principle.
Supposing that I come to the bar of the National Assembly and say,
I carry out a trade and do not think that my profit is sufficient. For this reason, I ask you to issue a decree that authorizes the tax collectors to exact just one little centime from each family in France for my benefit.
If the legislature accepts my request, it could be seen as just an isolated example of legal plunder, which is not enough to warrant being called communism. However, if every Frenchman, one after another, made the same request, and if the legislature examined these requests with the avowed aim of achieving equality of wealth, it is in this principle and its effects that I see, and you will not fail to see, communism.
That the legislature makes use of customs officers and tax collectors, direct or indirect taxation, or restrictions or premiums to put its ideas into practice is of little importance. Does it consider itself entitled to take and to give without compensation? Does it think that its mission is to balance profits? Does it act in accordance with this belief? Does the majority of the public approve and encourage this method of acting? In this case, I say that we are on the downward slope to communism, whether we are aware of this or not.
And if I am told: “The state is not acting in favor of everyone, but only in favor of a few sectors,” I will answer: “It has then found the means to make communism itself worse still.”
I am aware, sir, that doubt can be cast on these deductions by creating confusion of a very facile sort. People will quote quite legitimate administrative facts, cases in which state intervention is as equitable as it is useful; then, establishing an apparent analogy between these cases and those against which I am protesting, they will put me in the wrong and they will tell me: “Either you ought not to see communism in protectionism or you ought to see it in all government action.”
This is a trap into which I do not wish to fall. For this reason I am obliged to look for the exact circumstance that confers a communist character on state intervention.
What is the purpose of the state? Which matters ought citizens to entrust [247] to collective compulsion? Which ought they to reserve to private activity? Answering these questions would be to give a course in politics. Fortunately, I do not need to do this to solve the problem that concerns us.
When citizens, instead of providing a service to themselves, transform it into a public service, that is to say, when they consider it apposite to pool resources to have work done or to procure joint satisfaction for themselves, I do not call this communism, since I do not see in it the element that gives the latter its special character: leveling through plunder. It is true that the state takes through taxation but gives back by means of services. This is a particular but legitimate form of the basis of all types of society: exchange. I will go further. By entrusting a particular service to the state, citizens may be doing something that is an advantage or a disadvantage. It is advantageous if, by this means, the service is provided better or cheaper. It is disadvantageous if it is not, but in none of these cases do I see the principle of communism. In the first case the citizens have succeeded, and in the second they have made a mistake, but that is all, and while communism is an error it does not follow that every error is the result of communism.
In general, economists are very distrustful of government intervention. They see in it all sorts of disadvantages: a downgrading of freedom, energy, foresight, and individual experience, which are the most valuable bases of society. It oft en happens, therefore, that they oppose such intervention. But it is not at all from this point of view and for this reason that they reject protectionism. Let no one therefore use as an argument against us our predilection, which is perhaps too pronounced, for freedom; and let no one say: “It is not surprising that these men reject the protectionist regime since they reject state intervention in everything.”
First of all, it is not true that we reject it in everything. We allow that it is the state’s mission to maintain order and security, to ensure respect for people and property, and to curb fraud and violence. As for the services whose sphere is, so to say, production, we have no other rule than this: Let the state be responsible for it if there is a proven economizing of resources for the masses. But for goodness’ sake, in calculating this include all the innumerable disadvantages of work monopolized by the state.
Then, I am bound to repeat, it is one thing to vote against a new function given to the state on the basis that, all things being considered, it is a disadvantage and constitutes a national loss; it is quite another thing to vote against this new function because it is illegitimate and plunderous and [248] because it grants to the government a new mission to do precisely what its original mission was designed to prevent and punish. Well, we hold against what is called the protectionist regime both these types of objection, but the second outweighs the first by far in our determination to wage a bitter war on it, of course by legal means.
Thus, for example, let people submit to a local council the question of whether it is better to allow each family to collect its water requirements a quarter of a league away or whether it is preferable for the authority to levy a subscription to bring the water to the village square. I would have no objection in principle to an examination of this question. The calculation of the advantages and disadvantages for all would be the sole element in the decision. A mistake may be made in the calculation, but the error itself, though it would lead to a loss of property, would not constitute a systematic violation of that property.
But should the mayor propose to ride roughshod over one enterprise for the benefit of another, to forbid clogs in order to benefit shoemakers or something similar, then I would tell him that it was no longer a calculation of advantages and disadvantages: it would be political corruption and an abusive hijacking of public compulsion. I would say to him, “You who are the trustee of public authority and power to punish plunder, how do you dare to apply them to the protection and systematic operation of plunder?”
Should the mayor’s intention triumph, if I were to see as a result of this precedent all the businesses in the village agitating to solicit favors at the expense of each other, and if in the midst of this noisy and unscrupulous ambition I see the very notion of property sink without trace, I would be free to think that, to save it from shipwreck, the first thing to do would be to point out what was iniquitous in the measure that was the initial link in this abominable chain.
It would not be difficult, sir, for me to find passages in your book that agree with my subject and are in line with my views. To tell the truth, I would have only to open it at random. Yes, harking back to a children’s game, if I stick a pin into this book, I would find on the page selected by fate an implicit or explicit condemnation of the protectionist regime and proof that this regime is in principle identical with communism. And why should I not demonstrate this proof? Here I go. The pin has selected page 283; on it I read:
It is therefore a serious error to attack competition and not to have seen that while the nation is a producer, it is also a consumer, and that if it receives [249] less on the one hand (which I deny and you will deny it yourselves a few lines further down) and pays less on the other, there remains, for the benefit of all, the difference between a system that restrains human activity with a system that urges it ever forward down the path, telling it never to stop.
I challenge you to say that this does not apply just as much to the competition that takes place above the Bidassoa10 as to that which occurs above the Loire. Let us make another stab with the pin. That’s it; here we are, on page 325.
Rights either exist or they do not. If they exist, they lead to absolute consequences. . . . There is something else: if the right exists, it exists at all times; it is fully operational today, yesterday, tomorrow, the day after, in summer as in winter, not when it suits you to declare it valid but whenever it suits the worker to invoke it.
Would you claim that an ironmaster has an indefinite and perpetual right to prevent me from indirectly producing two hundredweight of iron in my workplace, which is a vineyard, for the advantage to him of directly producing just one in his factory, which is a forge? This right also exists or it does not. If it exists, it is fully operational today, yesterday, tomorrow, the day after, in summer as in winter, not when it suits you to declare it valid but whenever it suits the ironmaster to invoke it!
Let us tempt fate again. It has selected page 63, on which I read the following aphorism:
Property does not exist if I cannot give it away as well as consume it.
We, for our part, say: “Property does not exist if I cannot trade it as well as consume it.” And allow me to add that the right to exchange is at least as precious, as socially important, and as characteristic of property as the right to give it away. It is to be regretted that in a book intended to examine property from every angle, you thought it necessary to devote two chapters to giving, which is not in danger, and not one line to exchange, which is so shamelessly violated under the very authority of the laws of the country.
Another jab of the pin. Oh! It brings us to page 47.
The first property owned by man lies in his person and faculties. There is a second, less close to his being but not less sacred, in the product of [250] these faculties that embraces everything known as his worldly goods and that society has the greatest interest in guaranteeing him, since without this guarantee there would be no work, and without work, no civilization, not even the necessities but deprivation, plunder, and barbarity.
Well, sir, let us elaborate on this text, if you will.
Like you, I see property first in the free disposal of man’s person, followed by his faculties and finally the product of these faculties, which proves, let it be said in passing, that from a certain point of view freedom and property merge.
I would scarcely dare to say, like you, that the ownership of the product of our faculties is less closely linked to our being than that of the faculties themselves. Physically this is unquestionable, but if a man is deprived of his faculties or their products, the result is the same, and this result is known as slavery—a fresh proof of the natural identity of freedom and property. If I use force to appropriate all the work of a man for my benefit, this man is my slave. He is also my slave if, while letting him work freely, I find a way through force or guile to take possession of the fruit of his work. The first type of oppression is more odious, the second cleverer. Since it is a known fact that work done freely is more intelligent and productive, the masters have said to themselves, “Let us not usurp the faculties of our slaves directly, but let us seize the richer product of their faculties operating freely and give this new form of servitude the fine title of protection.”
You also say that society has an interest in guaranteeing property. We agree; the only thing is that I go further than you, and if by society you mean the government, I say that its sole duty with regard to property is to guarantee it; if the government attempts to level property, the government is by this very action violating property instead of guaranteeing it. This is worth examining.
When a certain number of men who cannot live without work and property pool their resources to pay for a common force, obviously their aim is to work and enjoy the fruit of their work in total security and not to put their faculties and property at the mercy of this force. Even if no government, properly called, has yet formed, I do not believe that individual persons can have their right to defense—that is, the right to defend their persons, faculties, and property—challenged.
Without claiming to philosophize here on the origin and extent of the prerogatives of governments, a huge subject very likely to daunt me in my [251] weakness, I ask that you allow me to put an idea before you. It seems to me that the prerogatives of the state can consist only in the codification of preexisting personal rights. For my part, I cannot conceive of a collective right that is not rooted in individual right and does not presuppose it. Therefore, to know whether the state is legitimately endowed with a right, the question must be asked whether this right exists in individuals by virtue of their organization and in the absence of any form of government. It is on the basis of this idea that I rejected the right to work a few days ago. I said, “Since Peter does not have the right to force Paul directly to give him work, he is no more entitled to exercise this alleged right through the intervention of the state, since the state is only the common force created by Peter and Paul at their expense with a clear aim, which can never be to make something just that is not just. This is the touchstone I use to judge between the guarantee and the leveling of property by the state. Why has the state the right to guarantee everyone his property, even by force? Because this right preexists in each individual. The right of legitimate defense of individual entities, the right to employ force if need be to repel attacks directed against their persons, faculties, and assets, cannot be challenged. It is accepted that, since it is within each citizen, this individual right can take a collective form and make the common force legitimate. And why should the state not have the right to level property? Because in order to do so it has to take away from some and give to others. Well, since none of the thirty million French citizens have the right to take by force on the pretext of achieving equality, it is difficult to see how they can invest this right in the common force.
And note that the prerogative of leveling is destructive of the right of guarantee. Take savages. They have not yet founded a government. But each of them has the right of legitimate defense, and it is not difficult to see that this is the right that will become the basis of the legitimate common force. If one of these savages has devoted his time, energy, and intelligence to making himself a bow and arrow and another wishes to steal these from him, the entire sympathy of the tribe will be with the victim, and if the cause is brought before the elders to be judged, the plunderer will unfailingly be condemned. Only one step further is needed to organize a common force. But, I ask you, has this force the task, at least the legitimate one, of regularizing the act of him who defends his property as of right, or the act of him who violates the property of others in defiance of this right? It would be very strange if the collective force were to be based not on individual right but on its constant and systematic violation! No, the author of the book I have [252] before me cannot be supporting a thesis like this. But it is not enough for the author not to support the thesis; he ought perhaps to have contested it. It is not enough to attack this crude and absurd form of communism, which a few sectarians advocate in leaflets that are decried. It might have been a good thing to unveil and stigmatize this other bold and subtle form of communism, which by simply corrupting the just notion of the prerogatives of the state has insinuated itself into some of the branches of our legislation and threatens to invade them all.
For, sir, it is really unquestionable that by operating the customs duties, through the so-called protectionist regime, governments are carrying out the monstrosity of which I have just spoken. They are deserting the right of legitimate defense that preexists in each citizen and is the source and reason of their own purpose, in order to appropriate an alleged right to level through plunder, a right that previously resided in no one and thus cannot exist communally either.
But what is the use of stressing these general ideas? What is the use of demonstrating here the absurdity of communism since you have done this yourself (except for one of its manifestations, and in my view the most threatening in practice) much better than I am able to do?
Perhaps you will tell me that the principle of the protectionist regime does not oppose the principle of property. Let us look at the procedures of this regime.
There are two of these: subsidies11 and restrictions.
With regard to the subsidy, this is evident. I dare to challenge anyone to claim that the last stage of the system of premiums, taken to its limit, is not absolute communism. Citizens work in the shelter of the common force, which is responsible, as you say, for guaranteeing to each his own, suum cuique. But now the state with the most philanthropic intentions in the world is undertaking a quite new and different task, which in my view is not just exclusive but destructive of the first. It is pleased to make itself the judge of profit, to decide which activities are not being remunerated enough and which get too much. It is pleased to set itself up as the leveler and, as M. Billault says, to swing the pendulum of civilization to the opposite side from freedom and individualism. As a result, it is levying a contribution from [253] the entire community to hand out presents in the form of premiums to the exporters of a particular type of product. Its claim is to be encouraging industry. It should say one industry at the expense of all the others. I will not stop at showing that it stimulates suckers at the expense of fruit-bearing branches, but I ask you, by going down this path, is it not authorizing every producer to come forward to claim a premium as long as he provides proof that he does not have as much income as his neighbor? Has the state the proper function of listening to and assessing all these requests and acceding to them? I do not think so, but those who believe this must have the courage to clothe their thought in its controlling detail and to say: “The government is not responsible for guaranteeing property but for leveling it. In other words, property does not exist.”
I am dealing here only with a question of principle. If I wanted to scrutinize the economic effects of subsidies for exports, I would show them in their most ridiculous light since they are just a free gift made by France to foreigners. It is not the sellers who receive it but the purchaser by virtue of this law that you yourself have noted in connection with taxes: the consumer finally bears all the charges, just as he receives all the advantages of production. For this reason, the most mortifying and mysterious thing possible has happened to us with regard to these premiums. A few foreign governments have reasoned thus: “If we raise our entry duties to a figure equal to the premium paid by French taxpayers, it is clear that nothing will change for our consumers since the cost price for them will be the same. Goods reduced by five francs at the French border will pay five francs more at the German border. This is an infallible way of making the French treasury responsible for our public expenditure.” But other governments, I am assured, have been even more ingenious. They said to themselves, “The premium given by France is really a gift made to us, but if we raise the duty, there is no reason for more of these goods to enter our country than in the past; we ourselves are setting a limit on the generosity of these excellent Frenchmen. On the other hand, let us abolish these duties provisionally; let us encourage an unprecedented influx of their cloth in this way, since each meter brings with it a totally free gift.” In the first case, our premiums have been to the foreign tax authorities; in the second, they have benefited the ordinary citizens but on a wider scale.
Let us move on to restriction.
I am an artisan, a carpenter, for example. I have a small workshop, tools, and some materials. All of these are unquestionably mine, since I have made [254] them or, what amounts to the same thing, I have purchased and paid for them. What is more, I have vigorous arms, some intelligence, and a great deal of goodwill. These are the funds with which I have to provide for my needs and those of my family. Note that I cannot produce anything that I need directly, whether iron, wood, bread, wine, meat, fabric, etc., but I can produce their value. In the end, these things have, so to say, to emerge in another form from my saw and my plane. My interest is to receive honestly as great a quantity as possible for each quantity of my work. I say “honestly” since I do not wish to violate either the property or the person of anyone. However, I have no wish to see anyone violating either my property or my freedom. I and other workers who agree on this point impose sacrifices on ourselves and give up part of our work to men known as civil servants, since we give them the specific function of guaranteeing our work and its proceeds from all forms of attack, whether from within or from without.
With these arrangements in place, I am getting ready to put my intelligence, arms, saw, and plane to work. Naturally, my eyes are constantly fixed on those things that are necessary for my existence. These are the things I have to produce indirectly by creating their value. The problem for me is to produce them as advantageously as possible. Consequently I cast a glance over the world of values, summed up in what is known as the current price. From the data on the current price I note that the means for me to have the greatest possible quantity of fuel, for example, for the smallest quantity of work is to make an item of furniture and deliver it to a Belgian who in return will give me coal.
However, there is in France a worker who is looking for coal in the bowels of the earth. It so happens that the civil servants whose salary both the miner and I are contributing to in order for each of us to have our freedom to work and the free disposal of our products maintained (which is property), it so happens, I repeat, that these civil servants have conceived another idea and have given themselves a different purpose. They have decided that they ought to equalize my work and that of the miner. Consequently, they have forbidden me to heat myself with Belgian coal; and when I go to the border with my item of furniture to collect my coal, I find that these civil servants are preventing the coal from entering, which is the same thing as preventing my item of furniture from leaving. I therefore say to myself: “If we had not thought of paying civil servants to spare us the trouble of defending our property ourselves, would the miner have had the right to go to the border and forbid me a profitable trade on the pretext that it is better for him that [255] this trade not be concluded?” Certainly not. If he had made such an unjust attempt, we would have fought on the spot, he driven by his unjust claim and I fired up by my right of legitimate defense. We had cast our votes and paid a civil servant precisely to avoid fights like this. How, therefore, is it that I find the miner and the civil servant in agreement to restrict my freedom and hard work in order to reduce the sphere in which my talents may be exercised? If the civil servant had taken my side, I would understand his right; it would derive from mine, since legitimate defense is a genuine right. But where has he drawn the right to help the miner in his injustice? I learn from all this that the civil servant has changed his role. He is no longer a simple mortal invested with his own rights delegated to him by other men who, in consequence, possessed them. No. He is a being superior to humanity, drawing his rights from himself, and among his rights, he arrogates to himself that of leveling profits and keeping the balance between all forms of position and condition. All very good, say I; in this case I will overwhelm him with claims and requests as soon as I see someone richer than me anywhere in this country. He will not listen to you, I am told, for if he listened to you he would be a communist and he does not forget that his mission is to guarantee property, not to level it.
What chaos and confusion reigns in the facts! And how can you expect chaos and confusion not to reign in men’s minds? You may well be fighting against communism; as long as you are seen to accommodate, cherish, and flatter it in that part of the legislation it has invaded, your efforts will be in vain. It is a snake that, with your approval and care, has slipped its head into our laws and behavior, and now you are indignant at seeing its tail show itself in turn!
It is possible, sir, that you will make me a concession. Perhaps you will tell me the “protectionist regime is based on the principle of communism. It is contrary to law, property, and freedom. It ejects the government from its path and invests it with arbitrary attributions that have no rational basis. All this is only too true, but the protectionist regime is useful; without it the country would succumb to foreign competition and be ruined.”
This would lead us to examine restriction from an economic point of view. Setting aside any consideration of justice, right, equity, property, and freedom, we would have to settle the question of pure utility, the question of what is purchasable, so to speak; and you will agree that this is not my subject. Incidentally, take care that in using utility to justify a contempt for right, you are in effect saying: “Communism, plunder, although condemned [256] by justice, may nevertheless be accepted as being expedient.” And you will agree that an admission like this would be full of danger.
Without seeking to solve the economic problem here, I ask you to allow me one assertion. I declare that I have subjected the advantages and disadvantages of protectionism, from the sole point of view of wealth, to arithmetical calculation, setting aside any consideration of a higher order. I also declare that I have reached the following result: that any restrictive measure has one advantage and two disadvantages, or, if you prefer, one profit and two losses, with each of these losses being equal to the profit and thus giving rise to a clear and definite loss, which provides the consoling proof that, in this as in many other things, and I dare say in everything, utility and justice agree.
True, this is just a statement, but it can be proved mathematically.
What causes public opinion to err on this point is that the profit due to protectionism is visible to the naked eye, whereas of the two equal losses it brings in its wake one is infinitely divided between the citizens and the other is visible only to the eye of an investigative mind.
Without claiming to do this demonstration here, I ask you to allow me to outline its basis.
Two products, A and B, have a normal value of 50 and 40 in France. Let us suppose that in Belgium A is worth only 40. This being so, if France is subject to a restrictive regime, she will be able to enjoy the use of A and B by diverting a quantity equal to 90 from her total output since she will be reduced to producing A directly. If she were free, this amount of effort, equal to 90, would come to: 1. the production of B, which she would deliver to Belgium to obtain A; 2. the production of another B for herself; and 3. the production of some good C.
It is this part of the effort made available in the second case for the subsequent production of C, that is to say the creation of a new good equal to 10, without France thereby being deprived of either A or B, that is difficult to understand. Substitute iron for A; wine, silk, and Parisian articles for B; and loss of wealth for C; you will always find that restriction limits national well-being.12
Do you wish to abandon this heavy algebra? I am happy to. You will not [257] deny that while the prohibitionist regime has achieved some good for the coal industry, it is only by raising the price of coal.13 You will not deny either that this excess price from 1822 to the present has caused every person who uses this form of fuel a higher expenditure for each such usage, in other words, that this excess price represents a loss. Can it be said that the producers of coal, in addition to the interest on their capital and the ordinary profits to the industry, have received excess profit through restriction that is equivalent to this loss? If that were the case, protection, while remaining unjust, odious, plundering, and communistic, would be at least neutral from the purely economic point of view. It would then deserve to be equated to plunder of the basic kind, which displaces wealth without destroying it. But you yourself declare on page 236 “that the mines in the Aveyron, in Alais, Saint-Etienne, Creuzot, and Anzin, the best known, have not produced an income of 4 percent of the capital committed!” In order for capital in France to yield 4 percent, no protection is needed. Where then is the profit here to compensate for the loss described above?
This is not all. There is another form of national loss here. Since through the relative increase in price of the fuel all the users of coal have lost money, they have had to restrict their other forms of consumption proportionally and the total of national production has of necessity been reduced by this measure. This is the loss that is never included in the calculations since it is not obvious.
Allow me one more observation that to my surprise has not struck others more. It is that protection applied to the products of agriculture is shown in all its odious iniquity with regard to those known as the Proletariat while causing damage in the long run to landowners themselves.
Let us imagine a South Sea island whose land has become the private property of a certain number of inhabitants.
Let us imagine that on this territory that has been appropriated and marked out there is a proletarian population that is constantly increasing, or tending to increase.14
[258]This latter class will never be able to produce directly the things that are essential to life. They will need to sell their labor to men who are in a position to supply them in exchange with food and even materials of work: cereals, fruit, vegetables, meat, wool, flax, leather, wood, etc.
Obviously it is in their interest that the market in which these things are sold be as wide as possible. The more they are faced with a greater abundance of these agricultural products, the more they will receive for each given quantity of their own output.
Under a free regime, a fleet of boats will be seen going to seek foodstuffs and materials on neighboring islands and continents and carrying in payment manufactured products. The owners will benefit from all the prosperity they have the right to expect. A just balance will be maintained between the value of industrial production and that of agricultural production.
However, in these circumstances, the landowners of the island make the following calculation: If we prevented the proletarians from working for foreigners and receiving in exchange subsistence and raw materials, they would be obliged to call upon us. As their number is growing unceasingly and the competition between them is increasingly active, they would rush to obtain the portion of food and materials remaining for sale after we had taken what we needed, and we could not fail to sell our products at a very high price. In other words, the balance will be upset between the relative value of their work and ours. They would devote a greater number of hours of labor to our satisfaction. Let us therefore pass a law forbidding this trade that is hampering us, and to execute this law let us create a body of civil servants, for the payment of which the proletariat will be taxed along with us.
I ask you, would this not be the utmost oppression, a flagrant violation of the most precious of all freedoms, of the first and most sacred of all property?
However, and note this well, it would perhaps not be difficult for landowners to have this law accepted as a benefit by the workers. They would not fail to tell them:
“We have not done this for ourselves, honest creatures, but for you. Our interest concerns us little; we are thinking only of yours. Through this wise measure, agriculture will prosper. We the landowners will become rich, which will enable us to give you a great deal of work and pay you a good wage. Without it we will be reduced to destitution, and what will become of you? The island will be flooded with subsistence goods and materials of work from abroad, your ships will be constantly at sea; what a national catastrophe! It is true that abundance would reign around you, but would you be [259] part of it? Do not say that your wages would be maintained and increased, because foreigners would do nothing save increase the number of people demanding what you produce. What makes you sure that they will not take the fancy of delivering you their products for nothing? If this happened, you would die of starvation surrounded by abundance, since you would no longer have either work or a wage. Believe us, accept our law gratefully. Increase and multiply; what is left of provisions on the island beyond what we consume will be delivered to you for your work, of which, in this way, you will always be sure. Above all, do not allow yourself to think that this is a war of words between you and us in which your freedom and property are at risk. Never listen to those that tell you so. Take it as fact that the real conflict is between you and foreigners, those barbarous foreigners, may God curse them, who obviously want to exploit you by offering you deceitful transactions that you are free to accept or reject.”
It is not unlikely that a speech such as this, suitably seasoned with sophisms on money, the balance of trade, national production, agriculture that feeds the nation, the prospect of war, etc., etc., would be hugely successful and would gain approval for the oppressive decree by those oppressed themselves, if they were consulted. This has happened before and will happen again.
But the prejudices of landowners and the proletariat do not change the nature of things. The result will be a population that is destitute, hungry, ignorant, corrupted, and devastated by starvation, illness, and vice. The result will also be the dreadful shipwreck in people’s minds of the notions of right, property, freedom, and the proper attributes of the state.
And what I would like to be able to demonstrate here is that the punishment will shortly reach the landowners themselves; they will have prepared their own ruin by ruining the consuming public, since, in this island, the increasingly indigent population will be seen to fall upon the poorest food. Sometimes they will eat chestnuts, sometimes corn, at other times millet, buckwheat, oats, and potatoes. They will forget the taste of wheat and meat. Landowners will be totally astonished to see agriculture decline. They will in vain agitate, form themselves into agricultural associations, and eternally hark back to the famous adage, “Make forage; with forage you have cattle, with cattle, fertilizer, and with fertilizer, wheat.” They will in vain create new taxes to distribute subsidies to producers of clover and alfalfa; they will always be thwarted by the obstacle of a destitute population incapable of paying for meat and consequently of giving the slightest impetus to this [260] hackneyed circle. They will end by learning at their own expense that it is better to be subject to competition and face rich customers than to have a monopoly and be faced with a ruined customer base.
This is why I say: “Not only is prohibition communism, but it is the worst kind of communism. It starts by subjecting the faculties and work of the poor, their sole property, to the discretion of the rich, it leads to a clear loss for the masses and ends by enveloping the rich themselves in the common ruin. It invests the state with the singular right to take from those with little in order to give to those with a great deal; and when, by virtue of this principle, the disinherited people of the world invoke the intervention of the state to achieve a leveling in the opposite direction, I really do not know what the state will be able to reply. In any case, the initial and best response would be to renounce oppression.
But I am eager to finish with these calculations. After all, what is the state of the debate? What are we saying and what do you say? There is one point, a capital point, on which we agree: that the intervention of the legislator to level wealth by taking from some what is needed to gratify others is communism, the death of all work, all forms of saving, all well-being, all justice, and all society.
You notice that this disastrous doctrine is invading journals and books in all its forms, in a word, the field of intellectual speculation; and you attack it there vigorously.
For my part, I think I see that it had previously penetrated legislation and the practical world with your consent and assistance, and it is here that I am striving to combat it.
I would next draw your attention to the inconsistency into which you would fall if, while combating the prospect of communism, you were to treat it in action with consideration or, even worse, encourage it.
If your reply is: “I am acting in this way because although communism carried out by customs duties is opposed to freedom, property, and justice, it is nevertheless in accord with general utility and this consideration makes me discount by comparison all others.” If this is your answer, do you not feel that you are destroying in advance the entire success of your book, limiting its range, depriving it of its force, and acknowledging that communists of all shades are right, at least with regard to the philosophical and moral aspects of the question?
And then, sir, could a mind as enlightened as yours accept the hypothesis of radical antagonism between utility and justice? Would you like me to [261] be frank? Rather than venture such a subversive and impious statement, I would prefer to say, “This is a particular question in which, at first sight, it seems to me that utility and justice are in conflict. I am glad that all men who have spent their lives examining it in detail think otherwise; I have doubtless not studied it enough.” I have not studied it enough! Is this such a painful admission that, to avoid making it, people rush into inconsistency to the extent of denying the wisdom of providential laws which govern the development of human societies? For what more formal negation of divine wisdom is there than to deduce the essential incompatibility of justice and utility! It has always appeared to me that the most cruel form of anguish that can afflict an intelligent and conscientious mind is to stumble at this limit. What side should you join, in fact, what decision should you take in the face of an alternative like this? Should you support utility? This is the path taken by men who consider themselves to be practical. But unless they cannot put two ideas together, they are doubtless appalled at the consequences of systemic plunder and iniquity. Will those who embrace the cause of justice resolutely, whatever it costs, say: “Do what you have to do, whatever the consequences”? This is what honest souls prefer, but who would want to take the responsibility of plunging his country and humanity into destitution, desolation, and death? I defy anyone who is convinced of this antagonism to make up his mind.
I am mistaken. People will decide, and the human heart is so made, that interest will be put before conscience. This is borne out by facts, since everywhere that the protectionist regime has been thought to favor the well-being of the people it has been adopted in spite of any consideration of justice, and then its consequences have occurred. Belief in property has been wiped out. In the spirit of M. Billault it has been said, “Since property has been violated by protection, why should it not be violated by the right to work?” Others after M. Billault will take a third step, and still others behind them a fourth, until communism has taken hold.15
Good and sound minds like yours are appalled at the steepness of this slope. They strive to climb back up it and in fact do climb back up, as you have done in your book, to the protectionist regime, which supplies the first and only practical momentum of society on the fatal decline, but in the presence [262] of this living negation of the right to property, if instead of this maxim of your book: “Rights either exist or they do not; if they exist they lead to absolute consequences,” you substitute this sentence: “Here is a special case in which the national good requires the sacrifice of right,” then immediately everything that you believed gave force and reason to your work would be only weakness and inconsistency.
For this reason, sir, if you wish to complete your work, you have to give an opinion on the protectionist regime, and to do this it is essential that you start by solving the economic problem; one has to find out about the alleged usefulness of this regime. For even supposing I obtained from you its condemnation from the point of view of justice, this would not be enough to kill the regime. I repeat, men are so made that when they think they are placed between real good and abstract justice, the cause of justice is in great danger. Do you want palpable proof of this? This is what happened to me.
When I arrived in Paris, I found myself in the company of so-called democratic and socialist economists in whose circles, as you know, the words principle, selflessness, sacrifice, fraternity, right, and union are widely used. Wealth is examined from top to bottom as something that is, if not despicable, at least secondary to the point at which, since we take great account of it, we ourselves are seen as being cold economists, egoists, individualists, bourgeois and heartless men whose only God is Mammon.16 “Good!” I said to myself. “Here are noble hearts with whom I have no need to discuss the economic point of view, which is very subtle and requires more application than Parisian political writers are in general able to give to a study of this nature. With these people, however, the question of interest cannot be an obstacle; either they believe, on the faith of divine wisdom, that interest is in harmony with justice, or they will sacrifice it very willingly, since they thirst after selflessness. If, therefore, they allow that free trade is an abstract right, they will resolutely flock to its banner.” Following this, I addressed my appeal to them. Do you know what their answer was? Here it is:
Your free trade is a splendid utopia. It is based on right and justice, it achieves freedom, it consecrates property, and its consequence will be the union of peoples and the reign of fraternity between men. You are right a thousand times in principle, but we will fight you to the death [263] and by every means because foreign competition will be fatal to national production.
I took the liberty of addressing this reply to them:
I deny that foreign competition would be fatal to national production. In any case, if this were so, you would be positioned between interest, which, according to you, is on the side of restriction; and justice, which, by your own admission, is on the side of freedom! Well, when I, a venerator of the golden calf, call upon you to make a choice, how is it that you, the advocates of abnegation, trample principles underfoot to cling to interest? Do not therefore speak out so fiercely against a motive that governs you as it governs simple mortals.
This experience warned me that, above all, this daunting problem has to be resolved: Is there harmony or antagonism between justice and utility? And consequently the economic aspect of protectionism has to be scrutinized, for since the advocates of fraternity themselves were giving ground over the alleged loss of money, it was becoming clear that it is not enough to remove any doubt concerning universal justice as an ideal; it is also necessary to justify that unworthy, abject, despicable, and despised, albeit all-powerful, motive, interest.
This is what gave rise to a small thesis in two volumes which I am taking the liberty of sending you with this letter,17 since I am convinced, sir, that if, like the economists, you judge the protectionist regime severely from the moral point of view and if we differ only with regard to its usefulness, you will not refuse to examine carefully the question whether these two major elements in any definitive conclusions are mutually exclusive or are in agreement.
This harmony exists, or at least it is as obvious to me as sunlight. May it also be revealed to you! It would be then that in applying your eminently persuasive talent to fighting communism in its most dangerous manifestation, you would deliver it a mortal blow.
Look at what is happening in England. It would seem that if communism were to find a soil that favored it anywhere, it would be in Britain. There, with feudal institutions everywhere causing extreme deprivation and [264] extreme opulence to confront each other, such conditions ought to have prepared people’s minds for infection by false doctrines. And yet, what do we see? While these false doctrines caused unrest on the continent, they did not even ripple the surface of English society. Chartism18 was not able to take root. Do you know why? Because the association, which for ten years has debated protectionism, has triumphed over it only by shining a strong light on the principle of property and on the rational functions of the state.
Doubtless, if unmasking protectionism is to attack communism for the same reason and because of their close connection, both may also be struck a blow by following the opposite approach from yours. Restriction could not survive very long faced with a proper definition of the right of property. This being so, if one thing surprised me and made me rejoice, it was to see the Association for the Defense of Monopolies19 devote its resources to distributing your book. This is a highly striking sight and consoles me for the uselessness of my past efforts. This resolution from the Mimerel Committee will doubtless oblige you to increase the number of editions of your work. In this case, allow me to point out to you that in its present state the book has one major gap. In the name of science, in the name of truth, and in the name of public good, I beg you to fill this gap and call upon you to reply to the following two questions:
- 1. Is there any incompatibility in principle between protectionism and the right to property?
- 2. Is it the function of government to guarantee to each person the free exercise of his faculties and the free disposal of the fruit of his work, that is to say, property, or is it the government’s function to take from some to give to others so as to level out profits, opportunities, and well-being?
Ah, sir, if you reach the same conclusions as me, if through your talent, [265] reputation, and influence you caused these conclusions to become dominant in public opinion, who can calculate the extent of the service you would be rendering to French society? We would see the state limit itself to its purpose, which is to guarantee to each person the exercise of his faculties and the free disposal of his goods. We would see the state divest itself of both its colossal, illegitimate attributions and the terrifying responsibility they entail. It would limit itself to repressing the abuses of freedom, which is to achieve freedom itself. It would ensure justice for all and would no longer promise wealth to anyone. Citizens would learn to distinguish between what is reasonable to ask of it and what is puerile. They would no longer burden it with claims and demands. They would no longer accuse it of causing their misfortunes. They would not pin illusionary hopes on it, and in the enthusiastic pursuit of good that is not the state’s to dispense, they would not be seen at each disappointment to accuse the legislator and the law, change the men and the forms of government, and pile institution on institution and rubble on rubble. We would see the universal fever for mutual plunder through the extremely expensive and risky intervention of the state die out. Once it is limited in its objectives and responsibility, simple in its action, with low expenditure, and no longer burdening those it governs with the cost of their own chains, and is enjoying the support of public good sense, the government would have a solid base, which in our country has never been its lot, and we would finally have resolved this most pressing problem: the closing forever of the abyss of revolutions.
Thiers’s book De la propriété was published in the fall of 1848 under the auspices of the Central Committee of the Association for the Defense of National Work, a vehicle for protectionist doctrines. The association apparently took no offence at Thiers’s claim that “everyone is entitled to dispose completely and freely of the products of his work.” Bastiat shows below that the latter proposition contradicts protectionist doctrines.
(Paillottet’s note) At the time this article appeared, in January 1849, M. Thiers was very highly regarded at the Elysée.
(Paillottet’s note) See in vol. 1 the letters addressed to M. de Lamartine in January 1845 and October 1846 and in vol. 2 the article titled Du Communisme, dated 27 June 1847. (OC, vol. 1, p. 406, “Un Économiste à M. de Lamartine,” and p. 452, “Seconde Lettre à M. de Lamartine”; and vol. 2, p. 116, “Du Communisme.”)
(Paillottet’s note) See in vol. 2 the article titled Free Trade dated 20 December 1846. (OC, vol. 2, p. 4, “Le Libre-Échange.”)
(Paillottet’s note) This thought, by which, according to the author, M. Billault was able to strengthen his argument, was shortly to be adopted by another protectionist. It was developed by M. Mimerel in a speech delivered on 27 April 1850 to the General Council for Agriculture, Industry, and Trade. See a passage from his speech quoted in this volume in the article Plunder and Law. (OC, vol. 5, p. 1, “Spoliation et loi”; passage begins on p. 11.) [See also “Plunder and Law,” p. 174 in this volume.]
(Paillottet’s note) See this volume, p. 94, chapter 18, of Sophisms. (OC, vol. 4, p. 94, chap. 18, “Il n’y a pas de principes absolus.”)
See the entry for “Cabet, Étienne,” in the Glossary of Persons.
“On equal footing.”
Bastiat contrasts the expression “l’échange libre” (which we have translated as “freedom to trade”) with “le libre-échange” (which we have translated as “free trade”). By January 1849, when he wrote this article, the expression “le libre-échange” had acquired a particular meaning. It had become associated with the Association pour le libre-échange (The Free Trade Association), which he helped found, and with the journal Le Libre-échange (Free Trade), which he edited, and the movement for free trade in France, which he led.
A river in the Basque country between France and Spain.
Customs gave subsidies to some exporters in order to encourage—or maintain in existence—a specific sector of production. In practice, these subsidies covered the taxes levied on raw materials used by the said industries for the exported products.
(Paillottet’s note) See in vol. 2 the articles titled “One Profit for Two Losses” and “Two Losses for One Profit.” (OC, vol. 2, p. 377, “Un profit contre deux pertes,” and p. 384, “Deux pertes contre un profit.”)
The cost of French coal after extraction was on average 9.76 francs per ton. France imported one-third of its consumption of coal from the United Kingdom and Belgium. The import duty was 6 francs for the British coal and 3 francs for the Belgian coal coming by land.
(Paillottet’s note) See in this volume the third letter of the article titled “Property and Plunder,” pp. 407ff. (OC, vol. 4, p. 394, “Propriété et spoliation,” pp. 407ff.) [See also “Property and Plunder,” p. 157 in this volume.]
(Paillottet’s note) See in vol. 5 the final pages of the pamphlet titled “Plunder and Law.” (OC, vol. 5, p. 1, “Spoliation et loi,” final pages 13–15.) [See also “Plunder and Law,” final pages 275–76 in this volume.]
(Paillottet’s note) See in vol. 2 most of the articles under the heading “Polemic Against the Journals,” especially the article titled “The Democratic Party and Free Trade.” (OC, vol. 5, pp. 81–164; and p. 93, “Le Parti démocratique et le libre-échange.”)
(Paillottet’s note) These two small volumes, which the author indeed sent to M. Thiers, were the first and second series of the Sophisms. (OC, vol. 4, “Sophismes économiques,” p. 1, “Première série,” and p. 127, “Deuxième série.”)
Chartism was an English working-class movement that was active from 1838 throughout the 1840s. It took its name from the so-called People’s Charter of 1838, which called for the following: full manhood suffrage for those over twenty-one, the removal of the requirement that members of Parliament own a certain minimum of property, the payment of a salary for members of Parliament, the annual election of Parliament, and the creation of equally sized constituencies.
Bastiat is being sarcastic here. He is calling the protectionist Association for the Defense of National Work the “Association for the Defense of Monopolies.” This association was headed by Pierre Mimerel and Antoine Odier.
T.232 "The Consequences of the Reduction in the Salt Tax" (JDD, 1 Jan. 1849)↩
SourceT.232 (1849.01.01) "Consequences of the Reduction in the Salt Tax, (JDD, 1 Jan. 1849). This article was originally published in JDD, 1 Jan., 1849 and inserted by the original French editor Paillottet as an Appendix at the end of "Peace and Freedom or the Republican Budget". [OC5, pp. 464-67] [CW2, pp. 324-7]
IntroductionOn the nature of the salt tax (or "gabelle") see the Editor's Introduction to "The Salt Tax" (20 June, 1847), above, pp. 000.
This article for the Journal des Débats was published just as the reduction in the tax on letters was due to take effect and when debates were underway about abolishing the tax on alcohol (which the Chamber voted for in May 1849). As Vice-President of the Finance Committee Bastiat would have heard all the arguments why expenditure could not be cut and why tax cuts should not be permitted or rescinded if they had already been granted. The tax on salt (abolished in April 1848 and then reinstated at a reduced level of 10c. per kilo) and the tax on letters (cut in August 1848 to 20c. to take effect on 1 January 1849) are good examples of this oscillation in tax policy as the Provisional Government struggled to balance its budget. For some time Bastiat had been arguing that since military expenditure was the single biggest item of government expenditure (30%), followed by debt repayments (29%) which were also militarily related, it had to be drastically cut in order to both cut indirect taxes on the poor (like salt and alcohol) and balance the budget. He argued this in"The Utopian" (ES2 11, 17 Jan. 1847), his "Speech on the Tax on Wine and Spirits" (12, Dec. 1849), in his speech to the Friends of Peace Congress (22 August, 1849), and in a more informal way in one of his popular articles in the street magazine Jacques Bonhomme in June 1848, "A Dreadful Escalation". He reiterates those arguments here.
The article is another example of Bastiat inventing a speech or a petition in order to express his views. This was a literary device he often used in his writings, a total of 12 times, especially in the Economic Sophisms . 1259 They include he following:
- "Three Pieces of Advice" (c.1850), CW1, pp. 471-76;
- ES1 7 "Petition by the Manufacturers of Candles" (Oct. 1845), CW3, pp. 49-53
- ES2 3 "A Petition from Jacques Bonhomme, Carpenter, to M. Cunin-Gridaine, Minister of Trade", in "The Two Axes" (c. 1847), CW3, pp. 138-42
- ES2 12 "Jacques Bonhomme to Mr. de Vuitry, Deputy, Reporting Chairman of the Committee Responsible for Examining the Draft Law on Postal Taxes", in "Salt, the Mail, the Customs" (May 1846), CW3, pp. 207-13
- ES2 16 "A Report to the King" in "The Right Hand and the Left Hand" (Dec. 1846), CW3, pp. 240-48
- ES3 1 "A Letter to the Council of Ministers" in "Recipes for Protectionists" (Dec. 1846), CW3, pp. 257-61
- ES3 7 "Letter to M. Arago, of the Academy of Sciences" in "Two Losses versus One Profit" (May 1847), CW3, pp. 287-93 1260
- ES3 9 "A Protest" (Sept. 1847), CW3, pp. 296-99
- ES3 19 "An Interesting Historical Document" in "Antediluvian Sugar" (Feb. 1848), CW3, pp. 366-67
- ES3 20 "The Secret Book of Instructions" in "Monita Secreta" (Feb. 1848), CW3, pp. 371-77
- ES3 23 "Three Circulars from Ministers" in "Circulars from a Government that is nowhere to be found" (March 1848), CW3, pp. 380-83
The one most similar to this one is a speech he wanted the President of the Republic (namely, President Louis Napoléon) to give in the National Assembly (thus is was probably written in 1849 or 1850) which was included in an article entitled "Three Pieces of Advice". 1261 In it he states "I would like the president of the Republic to go before the National Assembly and make the following solemn speech" about how he would help remove the political uncertainty in which France found itself. His three pieces of advice, or "resolutions", were:
Citizen representatives, … I will not accept the presidency in whatever form or in whatever manner it happens to me.
Through the will of the people I must carry out executive power for two years more. I understand the meaning of the words executive power and I am resolved to restrict myself to it absolutely.
I sincerely believe that the legislative and executive powers mix up and confuse their roles too much. I am resolved to limit myself to mine, which is to see that the laws you have voted are executed. … I will choose my ministers outside the Assembly. In this way there will be a logical separation between the two powers. In this way, I will put an end to the alliances and portfolio wars within the Chamber which are so disastrous to the country. 1262
This fictional attempt to warn the French people about the dangers posed by the rising power of Louis Napoléon who by-passed the constitution in order to have another term in office in a coup d'état in December 1851, had about as much success as this speech about balancing the budget, cutting taxes, and disarmament. The Crimean War broke out in March 1854 with France, Britain, Austria, and Prussia fighting Russia.
TextThe immediate reduction of the salt tax 1263 has disoriented the cabinet in one respect, with good reason. It is being said that we are seeking new taxes to fill the gap. 1264 Is this really what the Assembly wanted? Removing a tax in order to reimpose a tax would be only a game and one of these unfortunate games in which everyone loses. What is the meaning of their vote, then? It is this: expenditure is constantly rising; there is just one means of forcing the State to reduce it and that is to make it absolutely impossible for it to do otherwise. 1265
The means it has adopted is heroic, we must agree. What is still more serious is that the reform of the salt tax was preceded by the reform of the postal services 1266 and will probably be followed by the reform of the tax on alcohol. 1267
The government is disorientated. Well then! For my part, I say that the Assembly could not put it in a better position. This is a wonderful, and one might say providential opportunity to go down a new path, to put an end to false philanthropy 1268 and warlike passions and, converting its failure into triumph, to deliver security, confidence, credit, and prosperity from a vote that appeared to compromise it and at last to found a republican politics on these two great principles, Peace and Freedom. 1269
Following the resolution from the Assembly, I was expecting, I must admit, the president of the Council to ascend the rostrum and make a speech along these lines:
Citizen Representatives,
Your vote yesterday has shown us a new path; more than this, it forces us to go down it.
You know how much the February revolution aroused illusory hopes and dangerous theorizing. These hopes and systems, clad in the false colors of philanthropy and entering this chamber in the form of legal schemes, were directed at nothing less than destroying freedom and swallowing up the public wealth. We did not know which way to turn. Rejecting all these projects was to upset public opinion in a temporary state of exaltation; accepting them was to compromise the future, violate all rights, and distort the functions of the state. What were we to do? Procrastinate, compromise, accommodate error, give partial satisfaction to the utopians, enlighten the people through the hard lesson of experience, and create administrative departments with the ulterior purpose of abolishing them later, which is not easy to do. Now, thanks to the Assembly, we are at ease. Do not come any longer to ask us to monopolize education or credit, finance agriculture, favor certain industries, and turn charitable giving into a state run system. We have dealt with the poisonous tail of socialism. Your vote has delivered the death blow to its dreaming. We no longer even have to discuss it, for where would discussion lead, since you have removed from us the means to carry out these dangerous experiments? If someone knows the secret of carrying out state-run philanthropy 1270 with no money, let him come forward; here are our ministerial portfolios, we will hand them over to him with joy. As long as they remain in our hands, in the new situation that has been established for us, it remains for us only to proclaim Liberty as the basis of our domestic policy, freedom for the arts, sciences, agriculture, industry, work, trade, the press, and teaching, for freedom is the only system compatible with a reduced budget. The state needs money to regulate and oppress. (If there is) no money, (there can be) no regulation. Our role, with very little expenditure, will henceforward be limited to repressing abuses, that is to say, preventing one citizen's freedom from being exercised at the expense of another's.
Our foreign policy is no less clearly marked and based upon force . We were making compromises and we were still fumbling; now we are irrevocably directed, not only by choice but also by necessity. Happy, a thousand times happy that this necessity imposes on us exactly the policy that we would have adopted by choice! We are determined to reduce our military capability. 1271 You should clearly note that there is nothing to discuss in this regard, we have to act, for we have the choice of disarmament or bankruptcy. It is said that one should choose the lesser of two evils. Here, according to us, the only choice is between an immense good and a terrible evil and, in spite of this, even yesterday the choice was not an easy one for us. False philanthropy and warlike passions stood in our way, and we had to take them into consideration. Today they have surely been reduced to silence, for whatever people say about passion failing to reason, it nevertheless cannot lack reason to the point of demanding that we wage war with no money.
We have therefore come to this rostrum to proclaim disarmament as a fact, and consequently that non-intervention is (now) the principle of our foreign policy. Let nobody speak to us any longer of supremacy and dominance; let nobody point to Hungary, Italy, and Poland as fields of glory and carnage. 1272 We know what can be said for or against military propaganda when we have the choice. But you will not disagree that when you no longer have it, controversy is superfluous. The army will be reduced to what is necessary to guarantee the independence of the country, and at the same time all nations may henceforward count on their independence as far as we are concerned. Let them carry out their reforms as they will, let them undertake only that which they can accomplish. We will let them know loudly and clearly that none of the parties that divide them can count on the support of our bayonets. What am I saying? They do not even need our protests, since these bayonets will be returned to their sheaths or rather, for added security, they will be converted into ploughshares.
I can hear objections coming from the opposition benches; you are saying: "This is the policy of everyone withdrawing to their own homes, everyone fending for themselves." Even yesterday we might have discussed the value of this policy, since we were free to adopt another. Yesterday, I would have quoted reasons. I would have said "Yes, everyone withdrawing to their own homes, everyone fending for themselves," as long as it is a matter of naked force. This is not to say that the links between peoples will be broken. Let us have philosophical, scientific, artistic, literary, and trade relations with everyone. Through this, humanity will become enlightened and make progress. However, I do not want relations at the point of a sword and a gun. To say that the fact that perfectly united families do not go to each other's houses armed , implies that they are acting on the axiom everyone withdrawing to their own homes is a strange misuse of words. Besides, what would we say if, to end our differences, Lord Palmerston 1273 sent us English regiments? Would not our cheeks flush with indignation? How is it therefore that we refuse to believe that other peoples also cherish their dignity and independence?
This is what I would have said yesterday, for when there is a choice between two policies, the one that is preferred has to be justified by the giving of reasons. Today, I am merely invoking necessity, since we no longer have any option. The majority, who have refused to give us the revenue in order to force us to reduce expenditure, would not be so inconsistent as to impose a ruinous policy on us. If anyone, knowing that the taxes on the post, salt, and alcohol are going to be reduced considerably, knowing that we are facing a deficit of 500 million, 1274 still has the temerity to proclaim the clear need for pro-military propaganda, or he who, by threatening Europe, forces us even in peace time to undertake ruinous efforts, let him stand up and take this ministerial portfolio. As for us, we will not assume the shame of such childishness. Therefore, from today onward, the policy of nonintervention is proclaimed. From today onward, measures will be taken to dismiss part of the army. From today onward, orders will go out to abolish useless foreign embassies.
Peace and freedom! This is the policy that we would have adopted by conviction. We would thank the Assembly for having made it an absolute and clear necessity for us. It will ensure the salvation, glory, and prosperity of the republic and will ensure that history will retain our names."
Here, it seems to me, is what the current cabinet ought to have said. Its words would have received the unanimous approval of the Assembly, of France, and of Europe.
1259 See the list of rhetorical devices he used in the Introduction to CW3, pp. lx-lxi.
1260 There is a possibility that this particular letter was a real one as Bastiat went to school in Sorèze with Étienne Arago, the younger brother of Francois Arago to whom this letter was addressed.
1261 "Three Pieces of Advice" in CW1, pp. 471-76.
1262 The quotations have been selected from CW1, pp. 474-75.
1263 See also his comments in the National Assembly on "A Proposal to change the tariff on imported salt" (11 Jan. 1849), below, pp. 000.
1264 Like the disastrous 45 centimes tax introduced by Louis-Antoine Pagès on March 16, 1848 which increased direct taxes on things such as land, moveable goods, doors and windows, and trading license, by 45%. It was known as the "taxe de quarante-cinq centimes" (the 45 centimes tax) and was deeply unpopular, prompting revolts and protests in the south west of France.
1265 This may have been the deliberate strategy adopted by Bastiat and the other liberals in the Finance Committee.
1266 Reform of the Postal system was a favorite topic of Bastiat as his earlier writings reveal (see above, pp. 000). His old school friend Etienne Arago became the Director-General of the Post Office during 1848 and oversaw the introduction of the fixed price, pre-stamped envelope on 30 August 1848 at a rate of 20c. (to take effect on 1 January 1849). Bastiat gave a speech in the Chamber on this topic, "Speech in the Assembly on Postal Reform" (24 August 1848) (above, pp. 000). Barely a year after its introduction, the Minister of Finance, Achille Fould, began lobbying the Chamber to increase the rate to 25c. (14 November, 1849) and was successful in getting a law passed to this effect in 15 May 1850. See, Belloc, Les postes françaises , pp.508-18.
1267 The tax on alcohol was abolished in May 1849 (when Hippolyte Passy (1793-1880) was the Minister of Finance) but the new Minister of Finance, Achille Fould, was able to have it reinstated in December 1849. On 12 December 1849 Bastiat gave an impassioned speech in the Chamber on the need to abolish the tax on alcohol. See, "Speech on the Tax on Wines and Spirits" CW2, pp. 328-47.
1268 "La fausse philanthropie" (false philanthropy) was a term Bastiat used to describe socialism. It was one of the kinds of plunder he proposed to cover in his History of Plunder . He first used it in the Conclusion to ES1 (Nov. 1845). See, CW3, p. 104.
1269 "Peace and Freedom" was the title of one his pamphlets, Peace and Freedom, or the Republican Budget (Feb. 1849), in CW2, pp. 282-27.
1270 Bastiat uses the term "la philanthropie officielle" (official or state-run philanthropy) but elsewhere he talks about "la charité légale ou forcée" (state-run or coerced charity). , which he contrasts with "la charité volontaire" (voluntary charity) or "la charité privée" (private charity). See, "Letter from an Economist to M. de Lamartine" (JDE Feb. 1845), above pp. 000.
1271 See his plans to do this in ES2 11 "The Utopian" (LE, 17 Jan. 1847), CW3, pp. 187-98, where he plans to halve the military budget and abolish the army and replace it with local militias; also his "Speech on the Tax on Wine and Spirits" (12, Dec. 1849) in which he talks about total government expenditure of only 200 million fr. (down from about 1,400 million fr.), CW2, 337; and his plans for European-wide disarmament in his speech to the Friends of Peace Congress (22 August, 1849, below, pp. 000.
1272 Sicily erupted in revolt on 12 January 1848 (before it occurred in France) and spread to Naples and Milan. They were defeated by the Austrian General Radetsky. On 25 April 1849 the French government (then under the control of President Louis Napoléon) sent an armed force to the Papal States in Rome to assist Pope Pius IX defeat the new Roman Republic which they were successful in doing by July when French forces entered the city. Revolution spread to Hungary in 15 March 1848 and soon turned into a war of independence from the Austrian Empire. It was brutally put down by the Russian Army in July and August 1849. A Polish uprising against Prussia began on 20 March 1848 but it had been largely repressed by Prussian forces by May.
1273 Henry John Temple, third viscount Palmerston (1784-1860) was a British politician and leader of the Whig party. He was Minister of Foreign Affairs (1830-41 and 1846-50) and then Prime Minister during the Crimean War (1854-56). He was a liberal interventionist who worked to limit French influence in world affairs.
1274 The projected deficit for 1849 was 160 million fr with government revenue of 1,400 million fr. If the following taxes were abolished - alcohol tax (90 million fr.), salt tax (26 million fr.), and postal tax (45 million fr.) - the deficit would rise to 321 million fr. Perhaps Bastiat expected a further fall in tax revenue which would bring the total up to 500 million. See App. on "French Government Budget" ???
T.309 "Speaks in a Discussion in the Assembly on a Proposal to change the Tariff on imported Salt" (11 Jan. 1849)↩
SourceT.309 [1849.01.11] "Speaks in a Discussion on a Proposal to change the tariff on imported salt." Short speech to the National Constituent Assembly, 11 Jan. 1849, CRANC, vol. 7, pp. 169-70. Not in OC. CW4
Editor's IntroductionThis is the 8th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
The motion before the Chamber was a proposal to impose a tariff of 2 fr. per kilo on salt imported in French ships and a tariff of 2 fr. 50c. on foreign ships, which was eventually defeated 385 to 344. 1275 He had written about the tax on salt 10 days previously in an article published in the Journal des Débats , 1 Jan. 1849 (see above, pp. 000) where he talked about its impact on the government's budget and the difficult position it put the government in. In this speech he talks about the internal impact restrictions on importing salt from abroad has on the formation of monopolies within France and the distortions this creates in prices and capital investment.
On a more personal note, we see in the speech an admission of his deteriorating health and the impact this was having on his ability speak in the Chamber and to write his books and essays. He admits at the start that "it is not possible for me to make myself heard in this Assembly" and his speech is later interrupted by an interjector who complains he cannot hear him and that he should speak up. Bastiat says he cannot and offers to give up the floor and present his paper in printed form to the Chair. He did this on several occasions and would print his speeches for circulation to the Deputies so he wouldn't have to speak, most notably with his major speech on "Parliamentary Conflicts of Interest" (March 1850) 1276 and possibly also "Baccalaureate and Socialism" (early 1850). 1277
Most historians have thought Bastiat died of tuberculosis (which killed his parents when he was a young boy) but some comments in his letters suggest something like throat cancer. In a letter of 14 September 1850 he complains of a "small lump growing in my larynx" 1278 and as the end drew near he complains in a letter of 11 Nov. 1850 "I would ask for one thing only, and that is to be relieved of this piercing pain in the larynx; this constant suffering distresses me. Meals are genuine torture for me. Speaking, drinking, eating, swallowing saliva, and coughing are all painful operations. A stroll on foot tires me and an outing in a carriage irritates my throat; I cannot work nor even read seriously." 1279 His throat condition, whatever it was, would eventually kill him on Christmas Eve 1850 at the age of 49.
TextCitizen Frédéric Bastiat: Citizen Representatives, I am forced by my health to limit my observations to two or three which will be extremely short, because it is not possible for me to make myself heard in this Assembly.
I have asked for the floor solely to say that I reject (the measure) and as a result I will limit myself to making this observation, the only one I am able to do at this moment. I believe, as the Honourable Monsieur Passy 1280 said a moment ago, that the statistical documents that we have before us are extremely erroneous and have been made under the influence of the more or less explicit desire to see (this amendment) be successful. So for example, we see that they have set the price of salt in the West at 3 francs and a few centimes in order to compare it with prices in Liverpool and Portugal, and for that (price) they have taken an average of the past 10 years. But when one examines the average of the past ten years one finds that the price of salt was considerably less. Now I ask you how it could be that, during this period of 20 years, the price of salt in the salt works of the West was always increasing. I believe that one can attribute that (increase) precisely to the lack of foreign competition. It is a general and unchanging effect of all monopolies that (their monopoly) becomes manifested in falsely (invested) capital and in an artificially (high) value given to salt, 1281 the interest on which the public however is obliged to pay. It is the result of not having to be subject to competition, that the privately owned property in the saltwater marshes is increased in value. In the report which was submitted last time we debated this matter, a figure of 4 to 5 thousands francs per hectare for land in the salt marshes was given. Now I ask you, if is it is in the nature of things that simple marsh land is worth 4 to 5,000 francs per hectare?
Several voices: And industrial labour!
Citizen Frédéric Bastiat: I know that there is a lot of work to do, but I will note that in the same report I spoke about that labour was taken into account, given that it (salt works) requires considerable labour to maintain.
Earlier I voted for an adjournment precisely because I dared to argue, even though I was not completely certain, I dared to argue that if the value of this land had not increased, it would have been subjected to all the laws which we know about, to all the laws of nature. There is no monopoly which does not end up increasing the market value of the land. If you give a man the right to be a broker it will soon become a thing of value which can be passed on, which can be sold, and on which the public has to pay interest.
I say that it is not necessary to take the average of the current price as they have done here only in the case of salt. It could very well happen that the importation of foreign salt (would) not make domestic production fall; but it could perhaps lower the price of land; the price of wages would reduce the profits of the land owner and not those of the worker.
Citizen Luneau: But aren't they partners in the business?
Citizen President: 1282 Don't interrupt.
Citizen Frédéric Bastiat: Messieurs, we are not the first to have made this reform.
Several Members: Speak up! Speak up!
Citizen Frédéric Bastiat: I cannot.
A Member: Then don't speak in the Assembly. We can't hear anything.
Citizen Frédéric Bastiat: I am going to give up the floor. (Speak! Speak!) But I will present my proposal to the Chair. I will limit myself to citing it. The law voted by the Assembly has been attacked in all sorts of ways. For example, it is said that we are going to put 100, 200, or 300 thousand workers to work building roads.
I have consulted the documents supplied by the mining engineers and by the Administration and I am certain that the number of workers employed in the production of salt in the 8 departments in the West is no more than 7,000. (There is unrest and noise by some Members). Is this (figure) contested?
One Voice: Yes, of course. And (what about) the transport (industry)?
Citizen Frédéric Bastiat: These 7,000 workers, according to the same documents, earn nearly 1 million francs per year. Well, I say that I would much rather give a million francs a year to these workers taken from a foreign surtax than to see import duties increase, because if you increase import duties you destroy precisely all the good you want to do by adopting the First Article of the law which you have (already) voted on.
The First Article has been attacked on financial grounds. Some thought that the reduction in the salt tax was not timely, but everybody wanted it. The Minister of Finance 1283 himself said it was unjust. But Article 3 has also been attacked without any attention to the fact that Article 3 was the logical and necessary complement to the First Article.
Without Article 3 all the benefits of the law would pass to the producers.
The whole world knows how to trade in salt; the whole world knows that all goods hit with high customs duties need, by that fact alone, a great deal of capital, and as a result, (will) need the assistance of middlemen, bankers, and that it is very easy to form coalitions (of vested interests).
In the South the coalition of salt producers is blatant. In the West is does not exist to the same degree.
Le citoyen Luneau: It doesn't exist at all.
Citizen Frédéric Bastiat: If there is not serious foreign competition we will deprive the treasury of very large amounts of money without there being any profit, without any benefit for the consumer.
1275 CRANC, vol. 7, pp. 169.
1276 "Parliamentary Conflicts of Interest" (March 1850), CW2, pp. 366-400.
1277 "Baccalaureate and Socialism" (early 1850), CW2, pp. 185-232.
1278 "Letter 191 to Louise Cheuvreux, Lyons 14 Sept. 1850," CW1, p. 272.
1279 "Letter 203 to Félix Coudroy, Rome 11 Nov. 1850," CW1, p. 288.
1280 Hippolyte Passy (1793-1880) was a cavalry officer in Napoleon's army, a journalist during the Restoration, and a politician during the July Monarchy. He was elected as a deputy from 1830, serving as minister of finance in 1834, 1839-40, and 1848-49. In 1838 he became a member of the Académie des sciences morales et politiques, in which he served for some forty years and was particularly active in developing political economy. He was cofounder of the PES (1842) and wrote numerous articles in the JDE .
1281 Bastiat uses an interesting expression here - "se traduire en un capital fictif, en une valeur factice" (manifests itself in imaginary (or false) capital and artificially (high) prices) - to describe the distorting effects which trade restrictions have on investment in an industry like salt production. Foreign competition is excluded, leading to higher prices for salt within France and over-investment of capital in the salt industry. This in turn leads to the formation of "coalitions" of vested interests which enjoy a near monopoly within France to lobby government for the continuation of the trade restriction.
1282 Armand Marrast was President of the Constituent Assembly between 19 July 1848 and 26 May 1849 when the new Legislative Assembly was elected.
1283 Hippolyte Passy.
T.233 (1849.01.15) "Letter from Bastiat to Mr. G. Wilson, 15 Jan. 1849"↩
SourceT.233 (1849.01.15) Letter from Bastiat to Mr. G. Wilson, 15 Jan. 1849 (Lettre de Bastiat à M. G. Wilson, du 15 Jan. 1849). [OC3.36, pp. 492-96.] [CW6]
See also Letter 121 (duplicate??)
Editor's Note[to come]
Text(insert HTML of file here)
T.234 Capital and Rent (Feb. 1849)↩
SourceT.234 (1849.02) Capital and Rent (Capitale et rente) Published as pamphlet, Capitale et rente (Paris: Guillaumin, 1849). [OC5.3, pp. 23-63.] [CW4]
Previously translated by David A. Wells in 1877: Frédéric Bastiat, Essays on political economy. English translation Revised, with Notes by David A. Wells (G.P. Putnam Sons, 1880). First ed. 1877. Contains "Capital and Interest," pp. 1-69; "That Which is Seen, and That Which is Not Seen," pp. 70-153; "Government" (The State), pp. 154-73; "What is Money?" (Damned Money), pp. 174-220; "The Law," pp. 221-91.
Editor's IntroductionThis is one of Bastiat's 12 Anti-Socialist Pamphlets which were published between late 1848 and July 1850 by the Guillaumin publishing firm and promoted as the "Petits Pamphlets" (Short or Little Pamphlets). 1284 It was part of a concerted campaign by the publishing firm to counter socialist ideas during the the Revolution and the Second Republic by appealing directly to the workers and to socialist intellectuals. In many of them, as with this essay here, Bastiat speaks directly to "les travailleurs" (the labourers), "les ouvriers" (the workers), and "les prolétaires" (the proletarians). A special four page Catalog entitled "Publications nouvelles sur les questions économiques du jour" (New Publications on the Economic Questions of the Day) listed 40 of the firm's books on the right to work (or the "right to a job"), socialism, the condition of the working class, and other similar topics. The catalog was included with the first of Bastiat's Petits Pamphlets Propriété et loi. Justice et fraternité (Paris: Guillaumin, 1848) which was published in late 1848.
By February 1849 when this essay was written Bastiat and his younger friend and colleague Gustave de Molinari had come to the realisation that the classical economists had opened themselves up to socialist criticism because of their hitherto poor defence of private property, interest, and rent. In their view the economists had either assumed the legitimacy of private property or had admitted that the rent from land was in effect "unearned" by the land owner as it was the product of the sun, soil, and rain and not of their own labour and exertions. Bastiat intended to rectify this oversight in his Anti-Socialist Pamphlets and his treatise on economic theory, the Economic Harmonies (1850, 1851), while Molinari would do the same in his articles and book reviews in the JDE , his book Les Soirées , 1285 and in his treatise on economics, which began as a series of lectures at the Athenée royale in Paris in late 1847. The latter were continued at the Musée royal de l'industrie belge when he moved to Brussels in 1852 and were eventually published as the Cours d'économie politique , which appeared in 1855. 1286
The title of this of essay should have been "Capital, Interest, and Rent" in order to better explain the content of the piece. He would return to these topics in more detail later in chapters on Exchange, Capital, and Rent which he was writing for his treatise Economic Harmonies . 1287 What is missing from the treatise is any extended treatment of money. He touches on it in this essay and also in some other writings such as "Damn Money!" written a couple of months after this (April 1849), the pamphlet "Capital" (mid 1849), and his long debate with Proudhon later in the year on "Free Credit." 1288
Traditionally the classical economists defined "rent" as the return which came from agricultural land; "profits" came from business activity, commerce, and manufacturing; and "interest" came from lending capital. Socialists like Proudhon, Louis Blanc, and Victor Considerant criticised interest, rent, and profit as unjust impositions on the labour of ordinary workers because they were "unearned" by the owners of capital, land, and business enterprises respectively. This criticism was responded to by free market economists such as Bastiat and Molinari, as well as Charles Dunoyer, Adolphe Thiers, Léon Faucher, Michel Chevalier, Louis Wolowski, and Joseph Garnier, in multiple works throughout the 1840s which reached a peak in 1848. It should also be noted that a small group of economists also founded a political club, the "Club de la liberté du travail", in March 1848 to confront the socialists head on on the streets of Paris to publicly debate these very questions. They were Charles Coquelin, Alcide Fonteyraud, Joseph Garnier, and Gustave de Molinari . 1289
Bastiat added another twist as this debate was taking place as he was radically rethinking the classical theories of rent and value not always with the agreement of his economist colleagues. 1290 The gist of his new idea was that he could generalise the theory of exchange by redefining exchange to cover any "mutual exchange of services," 1291 and to include under the rubric of "services" all physical goods, non-material goods (or services proper), as well as all returns on investments (whether from capital, land, or a business enterprise) which were more commonly known as interest, rent, and profit respectively. It was the latter aspect of his theory that his colleagues in the Political Economy Society rejected. For example, at the April 10, 1850 meeting of the Society the consensus view was that there was something unique about land rent and that it couldn't be folded into the more general group of "services" as Bastiat wanted to do, 1292 and Molinari thought that by replacing Say's classic formulation of trade as "goods being exchanged for other goods" with "services being exchanged for other services" was Bastiat just playing with words. 1293 In spite of this opposition, Bastiat continued to develop his theory of exchange during 1849 and 1850, using a variety of expressions such as "services pour services" (services are exchanged for other services), "la réciprocité des services" (the reciprocal exchange of services), and "la mutualité des services" (the mutuality of services, or the mutual exchange of services) which is the one he preferred to use here.
In the context of this pamphlet (written in February 1849) Bastiat is appealing to workers who had been influenced by socialists like Proudhon, and so he takes a phrase used by Proudhon, 1294 "la mutualité des services" (the mutual sharing of services), and adapts it for his own purposes (meaning here "the mutual exchange of services"). Proudhon, unlike his other socialist colleagues such as Considerant and Louis Blanc, approved of some transactions on the free market between equal parties where there was some mutual benefit to the exchange. However, he did did not think this was possible in the case of interest paid on loans. Thus, here Bastiat was trying to turn Proudhon's own argument back on himself in a rhetorical turn of phrase which he was much skilled at, as his Economic Sophisms demonstrate, to show that profit, interest, and rent provide mutual benefits to both sides involved in the transaction.
As Bastiat was still working on these new theories at the time this essay was written his use of the terms "interest," "rent," and "value" is sometimes a little confusing. In this translation we have retained Bastiat's use of these words and explain in the footnotes any issues which may arise. Bastiat believed that capital was productive, referring to "la productivité du capital" (the productivity of capital) which produced a return of some kind. Sometimes he referred to this return on capital as "interest" in the traditional sense, "intérêt des capitaux" (interest (earned) on capital), and sometimes as "rente" as in the phrase "le capital produise une Rente" (capital generates a rent). It could be that he just means by rent any annual income or return from an investment, whether capital or land. However, we have chosen to use Bastiat's preferred terminology throughout this essay as we explained above
Another innovative idea which Bastiat develops in this essay is that an exchange is a result of a comparative evaluation of two services by the two parties involved in a transaction. The "value" which is exchanged when services are given and received is determined by the individuals involved in the transaction rather than resides in the products themselves. This is one of Bastiat's most original and profound economic insights which went to the heart of the Smithian and Ricardian tradition of economic thought, which asserted that there was something inherent within the objects being exchanged (such as labour or utility) and that this thing could be objectively assessed, measured, and valued. Bastiat's insight was to reject the objectivity of this "value" and to see that it was the subjective valuations, the "appréciation comparée" (comparative evaluation or judgement), of the two parties to the exchange which made exchange both possible and worth while for both parties.
Although Bastiat rejects the idea that things of equal utility are exchanged he persists in thinking that "equivalent" services are exchanged. The difference between "equal" and "equivalent" is not always clear. However, Bastiat does argue that each individual "evaluates" the utility or value of the goods and services which they sell or purchase and does so based upon their particular place and circumstances. However, in Economic Harmonies he explicitly rejects Condillac's 1295 and Storch's 1296 idea that when exchanges occur because individuals place a different (and thus "unequal") value on things a "double profit" arises - one for each party. Bastiat believed that there was only "one profit" and not two. 1297 He is thus only half way towards a fully thought out theory of subjective value theory along the lines of the marginalist and Austrian schools which emerged in the 1870s.
As part of his critique of socialism, Bastiat criticised the idea of state imposed fraternity and defended the idea of voluntary fraternity which emerged in a free market. He refers to this briefly in "Capital and Rent" but discusses it in more detail in the essay "Justice et fraternité" (Justice and Fraternity) (June, 1848). 1298 Here Bastiat distinguishes between "la fraternité légale" (state imposed fraternity) and "la fraternité libre, spontanée, volontaire" (free, spontaneous, and voluntary fraternity) as he did between "la charité légale ou forcée" (state or coerced charity) and "la charité volontaire ou privée" (voluntary or private charity). Concerning fraternity, he argues that: 1299
La fraternité, en définitive, consiste à faire un sacrifice pour autrui, à travailler pour autrui. Quand elle est libre, spontanée, volontaire, je la conçois, et j'y applaudis. J'admire d'autant plus le sacrifice qu'il est plus entier. Mais quand on pose au sein d'une société ce principe, que la Fraternité sera imposée par la loi, c'est-à-dire, en bon français, que la répartition des fruits du travail sera faite législativement, sans égard pour les droits du travail lui-même ; qui peut dire dans quelle mesure ce principe agira, de quelle forme un caprice du législateur peut le revêtir, dans quelles institutions un décret peut du soir au lendemain l'incarner ? Or, je demande si, à ces conditions, une société peut exister ? | Fraternity, in sum, consists in making a sacrifice for another, working for another. When it is free, spontaneous, and voluntary I can understand it and I applaud it. My admiration for sacrifice is all the greater where it is total. But when this principle, that fraternity will be imposed by law, is propounded within society, that is to say in good French, that the distribution of the fruits of work will be made through legislation, with no regard for the rights of the work itself, who knows to what extent this principle will operate, what form a caprice of the legislator will give it, and in what institutions a decree will bring it into existence from one day to the next? Well, I ask whether society can continue to exist in these conditions. |
Finally, throughout this essay Bastiat uses three different words for the "workers" to whom he was appealing, depending on the context: "ouvriers", "travailleurs", and "prolétaires" which we have translated as "workers", "labourers," and "proletarians" respectively, in order to preserve Bastiat's intention. Bastiat only uses the word "prolétaires" in the last part of the essay when he appeals directly to those workers who had been inspired by socialist ideas in an effort to win them back to a free market position.
The structure of the essay is a little unusual for Bastiat. It is based around three "economic tales" about "The Sack of Wheat," "The House," and "The Plane" which was standard practice in his Economic Sophisms. After an introduction where he sets out his theoretical arguments Bastiat turns to a series of stories or economic tales using stock characters to illustrate these concepts for the general reader. In this he is following the standard practice he established in the Economic Sophisms. In this essay the stories are "The Sack of Wheat" (Mathurin and Jérôme), "The House" (Mondor and Valère), and "The Plane" (Jacques and Guillaume). What was very different is that he wraps around these three stories an explanatory and somewhat theoretical analysis which makes it much longer and heavier going for the reader than his previous efforts at economic story telling.
Text: IntroductionIn this article, I am trying to penetrate the inner workings of what is known as the i nterest on capital in order to prove its legitimacy and explain its perpetuity.
This may seem strange, but the fact is that what I fear is not to be obscure but rather to be too clear. I fear that readers will be put off by a series of genuine Truisms . How do I avoid pitfalls like this when my sole aim is to deal with facts that are familiar to all through personal, familiar and daily experience?
"This being so," people will tell me, "what is the use of this article? What good does it do to explain something that everyone knows?" 1300
Let us make a distinction, please. Once an explanation has been given, the clearer and simpler it is, the more superfluous it appears. Everyone is driven to exclaiming "I did not need anyone to solve the problem for me." This is the egg of Columbus. 1301
However, this very simple problem would seem much less so if we limited ourselves to setting it out. Let me put it in these words: "Today, Mondor lends out a tool that will be worn out in a few days' time. In spite of this, the capital will produce interest for Mondor or his heirs for all eternity." 1302 Reader, with your hand on your heart, does the answer to this question immediately spring to mind?
I have no time to turn to the economists. As far as I know, they have scarcely been concerned at all with probing Interest in terms of its raison d'être. We cannot blame them for this. At the time they were writing, Interest had not been called into question. 1303
This is no longer the case. The people who say and believe they are ahead of their century have organized active propaganda against Capital and Rent. They attack the Productivity of capital, not in a few abusive cases, but in principle .
A journal has been founded as a vehicle for this propaganda. It is directed by Mr. Proudhon and is said to enjoy huge publicity. 1304 The first issue of this sheet included the electoral Manifesto of Le Peuple. 1305 It says: "The Productivity 1306 of capital is what Christianity condemned under the epithet "Usury", 1307 and they are the true cause of poverty, constituting both the real principle of the proletariat and the eternal obstacle to the establishment of the Republic."
After saying excellent things about work, another journal, La Ruche Populaire 1308 , added: "But above all, work has to be carried out freely, that is to say, that work must be organized in such a way that it is not necessary to pay bankers, 1309 employers or masters for this freedom to work, this right to work that exploiters of men place at such a high price."
The only thought that I will raise here is the one expressed in the words in italics, implying opposition to the paying of Interest. Besides, this thought will be commented on later in the article.
Here is what Thoré, 1310 the famous social democrat, has to say:
The Revolution will always have to be started again for as long as consequences alone are being dealt with, absent the logic and courage needed to abolish the principle itself.
This principle is capital, the counterfeit kind of property, revenue, rent, and usury with which the old regime burdened work.
Since the day, a long time ago, when aristocrats invented this incredible fiction — that capital had the virtue of reproducing itself all by itself , workers have been at the mercy of the idle.
At the end of the year will you find one écu of one hundred sous more in a bag of one hundred francs? 1311
At the end of fourteen years, will your écus in the bag have doubled?
Will one work of art or industry have produced another once fourteen years have passed? 1312
Let us therefore start with the elimination of this disastrous fiction. 1313
At this point, I am neither discussing nor refuting; I am merely quoting, in order to establish that the productivity of capital is considered by a great many people to be a principle that is false, disastrous, and inequitable. But do I need quotations? Is it not a well-known fact that the people ascribe their sufferings to the exploitation of man by man and has not the phrase the Tyranny of Capital become proverbial? 1314
There can be nobody in the world, I think, who does not understand the full seriousness of the following question:
"Is interest on capital natural, fair, and legitimate and is it as useful to the person who pays it as to the one who receives it?"
People say " No " but I say " Yes. " We differ radically on the solution but there is one thing on which we cannot differ and that is the danger of persuading public opinion to accept the wrong solution, whatever it is.
Again, if the error is on my side, the harm is not very great. From this it has to be concluded that I understand nothing of the true interests of the masses, the progress of the human race, and that all my reasoning resembles so many grains of sand which will certainly not stop the juggernaut of the Revolution.
If Messrs. Proudhon and Thoré are mistaken, however, it follows that they are misleading the people and pointing out harm where none exists, that they are giving a wrong direction to the people's ideas, to their dislikes, the objects of their hatred and their political upheavals; it then follows that those who have been misled may rush into a dreadful and absurd conflict in which victory will be more disastrous than defeat since, according to this theory, what they are pursuing is the achievement of universal harm, the destruction of all their means of emancipation, and the bringing to pass of their own destitution.
This is what Mr. Proudhon acknowledged in total good faith. "The foundation stone of my theorizing", he told me, "is free credit ." 1315 If I am mistaken in this, socialism is nothing but a dream." I would add "It is a dream in which, while it lasts, the people will tear themselves apart; should we be surprised if they are bloody and bruised when they awake?"
This is enough to justify me if, during the discussion, I have let myself be carried away in a few trivialities and have written at some length.
Capital and RentI am addressing this article to the workers of Paris and in particular to those who have rallied to the banner of socialist democracy .
In it, I will be dealing with two questions:
1. Is it in the nature of things and in accordance with justice that capital generates Rent? 1316
2. Is it in the nature of things and in accordance with justice that the Rent from capital should be perpetual?
The workers of Paris will readily recognize that there is no more important subject that one could debate.
From the dawn of time it has been acknowledged, at least in practice, that capital had to produce Interest. 1317
In recent times it has been claimed that this is precisely the social error that has caused poverty and inequality.
It is therefore essential to know what to believe.
For if the payment of Interest to the profit of Capital is iniquitous, workers are within their rights to rise up against the current social order, and there is no point saying to them that they should have recourse only to legal and peaceful means, for that would be hypocritical advice. When on the one hand you have a man who is strong, poor, and a victim of theft and on the other hand one who is weak, rich and a thief, it would be quite odd to say to the first in the hope of persuading him: "Wait until your oppressor voluntarily renounces his oppression or until it ends of its own accord." That cannot be, and those who teach that Capital is unproductive by nature must be aware that they are provoking a terrible and immediate conflict.
If, on the contrary, the payment of Interest on Capital is natural, legitimate and consistent with the public good, favorable to borrower and lender alike, the political writers who deny this and the public speakers who exploit this alleged social scourge are inciting workers to a senseless and unjust conflict whose only outcome will be the misfortune of all.
In a word, they are arming Labor against Capital. This would be all to the good if these two forces were in opposition! Let the conflict soon be over! But if they are in harmony, the conflict is the greatest harm that can be inflicted on society.
Therefore, Workers, you can clearly see that there is no question more important than this: Is the rent from capital legitimate or not? If the first is true, you ought immediately to repudiate the conflict toward which you are being propelled; in the second case, you ought to pursue it energetically to the bitter end.
The Productivity of capital; the Perpetuity of rent. These questions are difficult to deal with. I will try to be clear. To do this I will use examples rather than demonstrations, or rather I will clothe the demonstration in an example.
I will begin by agreeing that, at first sight, it must seem strange to you for capital to claim payment, especially payment that is perpetual.
You must be saying to yourselves: Here are two men. One works from morning to night, from one end of the year to the next and, if he has consumed everything he has earned, perhaps out of absolute necessity, he will remain poor. On New Year's Eve, he will be no further forward than he was on the previous New Year's Day, and his only prospect is to start all over again. The other man does not use either his hands or his brain, at least, if he does so it is for pleasure; he has the option to do nothing because he receives rent . He does not work, and yet he lives well, having everything in abundance -- fine food, sumptuous furniture, and elegant clothes. This means that every day he uses up things that workers have had to produce by the sweat of their brow, for these things are not made by themselves and, as for him, he has not turned his hands to them. It is we, the workers, who have caused this wheat to germinate, varnished this furniture, and woven these carpets; it is our wives and daughters who have woven, cut out, sewn, and embroidered these fabrics. We therefore work both for him and for us; for him in the first instance and for ourselves if anything is left over. But here is something more striking: if the first of these two men, the worker, consumes all that has been left to him by way of profit during the year, he is therefore always at the starting point and his fate condemns him to turning endlessly in an eternal, monotonous circle of fatigue. Work is thus paid for just once. However, if the second man, the man of independent means, 1318 consumes his annual rent during the year, the following year, and the years following that for all eternity, he will have a revenue that is always the same, always inexhaustible, and perpetual . Capital is thus remunerated not once or twice, but an innumerable number of times! This means that, a hundred years later, the family that has invested 20,000 francs at 5 percent will have received 100,000 francs and this will not stop it receiving another 100,000 in the succeeding century. In other words, for 20,000 francs' worth of its own work, in two centuries the family will deduct ten times that sum from other people's work. Is there not a monstrous vice that needs to be reformed in this type of social order? This is still not all. If this family is willing to restrict its expenditure a little and, for example, spend only 900 francs instead of 1,000, with no work or trouble other than that of investing 100 francs per year, it can increase its Capital and its Rent to an extent that is so rapid that it will soon be in a position to consume as much as one hundred hard-working families of the toiling workers. Does this not show that current society carries a hideous cancer within it, which has to be cut out even if this risks a little temporary suffering?
These, I think, are the sad and irritating reflections that an active and too facile propaganda campaign against capital and rent must be arousing in your minds.
On the other hand, I am perfectly convinced that there are times at which your mind entertains doubts and your conscience scruples. You must be saying to yourselves, "But proclaiming that capital should not produce interest is to proclaim that loans should be free of charge, and that means that the person who has created Tools of production or Materials or Provisions of any sort has to hand them over for nothing. Is this just? And if this is how things are, who would want to lend these tools, materials, or provisions? Who would want to keep them in stock or even produce them? Each person would consume them as they went along, and the human race would never take a step forward. Capital would no longer be accumulated because there would no longer be any interest in doing so. 1319 It would become extremely scarce. This would be a strange kind of progress toward free loans; a strange way of improving the lot of borrowers by making it impossible for them to borrow at any price! What would become of production itself? For there would be no more loans in society and not a single branch of production can be named, not even hunting, that can be carried on without loans. And what would become of all of us? What! Would we no longer be allowed to borrow in order to work in our most productive years and to lend in our old age in order to be able to take some rest? Would the law snatch from us the prospect of accumulating a little property by forbidding us to draw any returns from it? Will it destroy in us both the incentive to save at present and the hope of rest in the future? No matter how much we wear ourselves out with fatigue, we will have to abandon the prospect of handing on a little nest-egg to our sons and daughters, since modern science has castigated it as unproductive and since we will become exploiters of men 1320 if we lend it for interest! Ah! This world that is opening up before us as an ideal is even more mournful and arid than the one being condemned, for at least in this one, hope has not been banished!
Thus, in all respects and from all points of view, the question is a serious one. We must hurry to find a solution.
The Civil Code has a section entitled "On the manner in which property is transmitted". 1321 I do not believe that this is a complete listing. When a man, by dint of his own work, has made something useful, in other words, when he has created something possessing value , it can pass into the hands of another man only by one of five routes: by gift, inheritance, exchange, loan, or theft . I'll only say a few words about each of them except the last, although it plays a larger role in the world that one would think. 1322
Gifts have no need to be defined. They are essentially voluntary and spontaneous. They depend exclusively on the giver, and it cannot be said that the person receiving them has any right to them. Doubtless the morality and religion have often made it a duty for men, especially wealthy ones, to hand over things they own freely to their more unfortunate brethren. But this is a wholly moral obligation. If it were to be proclaimed as a principle and accepted in practice, if it were enshrined in law that everyone had the right to the property of others, gifts would no longer be meritorious and charity and gratitude no longer virtues. What is more, a doctrine like this would abruptly and universally stop both work and production just as a sharp cold snap freezes water and puts life into suspended animation, for who would work if there were no correlation between our work and the satisfaction of our needs? Political economy has not dealt with gifts . From this it has been concluded that it rejected gifts and that it was a heartless science. This is a ridiculous accusation. This science, which examines the laws that result from the mutual exchange of services , 1323 had no need to research the consequences of generosity on the person receiving it, nor its effects perhaps even more precious, on the donor; as these consequences are obviously a question for moral philosophy. The various branches of science have to be allowed to limit their scope and above all, they must not be accused of denying or belittling those matters they deem to be outside their domain.
Inheritance , against which there has been a recent outcry, 1324 is one of the forms of a Gift, and certainly the most natural. What man has produced he is free to consume, exchange, or give away, and what is more natural than for him to give it to his children? It is this ability, more than any other, which inspires in him the courage to work and to save. Do you know why the principle of Inheritance is being contested? Because people think that property handed down in this way is being taken away from the masses. This is a disastrous error; political economy demonstrates in the starkest fashion that all value produced is a creation that does no wrong to anyone at all. This is why it can be consumed and above all why it can be handed down without harming anyone. However, I will not dwell on these considerations, which are not germane to my subject.
Exchange is the principal domain of political economy because it is by far the most frequent method of transferring property in accordance with agreements that are freely and voluntarily entered into and whose laws and effects this science studies.
Strictly speaking, Exchange is the mutual exchange of services. The parties say to one another: "Give me this and I will give you that" or "Do this for me and I will do that for you". It should be noted (as this will shed new light on the notion of value ) that the second formula is always implicit in the first. When people say "Do this for me and I will do that for you," they are offering to exchange one service for another. Similarly, when they say: "Give me this and I will give you that" it is as if they were saying "I will hand over to you this item that I have made; hand over to me one that you have made." The work is in the past instead of being in the present, but the Exchange is no less governed by a comparative evaluation of the two services, so that it is very true to say that the principle of value is inherent in the services given and received when products are exchanged rather than in the products themselves.
In fact, services are almost never exchanged directly. There is an intermediary involved, known as money. 1325 Paul has made a suit in exchange for which he wants to obtain a little bread, a little wine, a little oil, a visit to the doctor's, a seat at the theatre, etc. The Exchange cannot be made in kind, so what does Paul do? He first of all exchanges his suit for money, a procedure known as a sale . He then exchanges this money for the things he wants, a procedure known as a purchase and it is only at this point that the mutual exchange of services completes its evolution, that work and satisfaction are in balance for the same person and he is able to say "I have done this for society and it has done this for me". In short, it is only at this point that the Exchange has been fully accomplished . Nothing is more accurate then than this comment by J. B. Say: "Since the introduction of money, each exchange is broken down into two factors, sale and purchase. " It is the combination of these two factors that makes the exchange complete. 1326
It should also be said that the constant appearance of money in each exchange has overwhelmed and misled all previous ideas; people have ended by believing that money was the true wealth and that to increase it was to increase the number of services and products. This has led to the protectionist regime, 1327 paper money, and the famous aphorism: "What one person gains, another loses," 1328 and other errors that have ruined and bloodied the earth.
After a lengthy search, it was found that, in order for two services exchanged to have an equivalent value and for the exchange to be just, the best method was for it to be free. 1329 However attractive State intervention appears to be at first sight, it is soon apparent that it is always oppressive for one or other of the contracting parties. When you examine these questions closely, you are obliged always to reason from the given fact that equivalence is the result of freedom. Indeed, we have no other way of knowing whether, at any given time, two services are worth the same , than to see whether they are readily and freely exchanged for one another. Introduce the intervention of the State, which is based upon force, on one side or the other, and immediately any means of evaluation becomes complicated and confused instead of becoming clearer. The role of the State should be to forestall and above all to repress misrepresentation and fraud, that is to say, to guarantee freedom and not to violate it.
I have gone into some detail on Exchange , although my principal duty is to deal with Lending . My excuse for this is that, in my opinion, a real exchange occurs in lending, a genuine service is provided by the lender which makes the borrower responsible for returning an equivalent service; two services whose comparative value, like the value of all possible types of service, can be assessed only in the light of freedom.
Well, if this is so, the total legitimacy of what are known as rents for houses or land, as well as the paying of interest on capital, is explained and justified. 1330
Let us therefore consider Lending .
Let us assume that two men exchange two services or two items whose equivalence is beyond dispute. For example, let us assume that Pierre says to Paul "Give me ten ten-sou coins in exchange for one five franc coin". 1331 It is impossible to imagine a more manifest equivalence. When this barter has been completed, neither of the parties has anything he can claim from the other. The services exchanged are equal [se valent] 1332 The result of this is that if one of the parties wishes to bring into the bargain an additional clause that is favorable to him and disadvantageous to the other, the second party would have to agree to a second clause that restores the equilibrium and reinstates the law of justice. To see injustice in this second compensating clause would certainly be absurd. Let us suppose that this is the case. Now, if Pierre, after saying to Paul "Give me ten ten-sou coins and I will give you one five franc coin," now adds, "You must give me the ten ten-sou coins immediately and I, for my part, will give you the one hundred sou coin only in a year's time, " then it is quite clear that this new proposition alters the costs and benefits of the transaction and the relative magnitude of the two services. Does it not in effect leap to the eye that Pierre is asking Paul for a new service that is additional and of a different type? 1333 Is it not as though he were saying "Provide me with the service of being able to use your five francs for my own benefit for one year, a sum which you could be using for yourself?" And what good reason can be put forward to maintain that Paul is bound to provide this special service free of charge and ask for nothing further for this requirement and that the State should intervene to force him to do so? How then can the political writer 1334 who preaches a doctrine like this to the people reconcile it with his principle of the mutual exchange of services ?
I have brought money into the debate here. I have been led to do so by a wish to put before us two objects for exchange that are totally and indubitably equal in value. 1335 I wanted to deal with the objections but, from another point of view, my argument would have been even more striking if I had made the agreement bear on the services or products themselves.
For example, let us take a House and a Ship, whose values are so totally equal that their owners wish to exchange them by swapping one for the other, 1336 with no additional payment or discount involved. In fact the trade takes place before a notary. Just as they are each about to take possession, the shipowner says to the town dweller "Very well, the transaction is complete and nothing is better proof of its total equity than our free and voluntary agreement. Now that the conditions have been settled in this way, I now propose a small, practical modification to you. It is that you hand your House over to me today, but that I will only hand over my Ship to you in a year's time, and the reason I am asking you this is so that for this term of one year I can make use of the Ship." To avoid becoming involved in the considerations relating to the deterioration of the object lent, I will assume that the shipowner adds: "I will make sure that in a year's time, I will hand over the ship in the same condition as it is right now." I ask any person of good faith and even Mr. Proudhon himself, would the town dweller not be within his rights in replying "The new clause you are proposing changes the relative magnitude or the equivalence of the services exchanged. Through it, I will be deprived for one year both of my house and your ship. Through it, you will have the use of both. If, in the absence of this clause, the exchange of swapping one thing for another was fair, this is the very reason why it is an imposition on me. It stipulates a disadvantage for me and an advantage for you. It is a new service that you are requesting from me; I therefore have the right to refuse it or to ask you for an equivalent service in compensation."
If the parties agree on this compensation, the principle of which is incontestable, two transactions may be readily seen in the same transaction, two exchanges of services in one exchange. First of all, there is the exchange of the house for the ship, and then the delay granted by one party and the compensation corresponding to this period accepted by the other. These two new services are known generically and in the abstract as Credit and Interest, but names do not change the nature of things and I challenge anyone to be bold enough to say that basically there is not in this encounter one service exchanged for another or mutual exchange of services . To say that one of these services does not give rise to the other, or that the first has to be provided free of charge (surely an injustice), is to say that injustice consists in the reciprocity of services 1337 and that justice consists in one of the parties giving something and not receiving anything in return, which is a contradiction in terms.
To give an idea of interest and its mechanism, may I have recourse to two or three tales? But before doing so, I have to say something about capital.
There are some people who consider that capital is money, and this is precisely why its productivity is denied, since, as Mr. Thoré says, écus lack the ability to reproduce themselves. However, it is not true that Capital is synonymous with money. Before the discovery of precious metals there were capitalists in the world, and I will be so bold to say that then, as now, everyone was a capitalist to some degree.
What is capital, then? It is made up of three things:
1. Materials , on which people work, when these materials already have a value bestowed upon them by human effort of one kind or another, which has endowed them with the possibility of being bought and sold: wool, linen, leather, silk, wood, etc.
2. I mplements people use in order to work: tools, machines, ships, vehicles, etc., etc.
3. Provisions that they consume while they are working: foodstuffs, fabrics, houses, etc.
Without these things the work of man would be thankless and almost meaningless, and yet these things themselves have required lengthy periods of work, especially at the outset. This is why a high price is placed on possessing them, and it is also the reason why it is perfectly legitimate to exchange and sell them, and to gain a profit from using them and a payment for lending them.
Here, now, are my tales.
The Sack of Wheat.Mathurin, 1338 who was incidentally as poor as Job, and reduced to earning his living from day to day, was nevertheless the owner, through some inheritance or another, of a fine plot of land that was lying fallow. His burning wish was to clear it. "Alas!" he said to himself, "digging ditches, putting up fences, breaking up the soil, removing brambles and stones, fertilizing and sowing it, all this may well provide me with food in a year or two, but certainly not today or tomorrow. It is impossible for me to devote myself to farming until I have accumulated a few provisions to keep me going until the harvest, and I know through experience that prior work is essential for making current work truly productive." The honest Mathurin did not stop at reflections like these. He also resolved to work on a daily basis and save part of his earnings in order to buy a spade and a sack of wheat, things without which the finest farming dreams come to naught. He did this so well and was so busy and sober that at last he found himself the owner of the much desired sack of wheat . "I will take it to the mill," he said, "and this will provide me with the wherewithal to live until my field is covered with a rich harvest." When he was about to set out, Jérôme came to borrow his treasure. "If you are willing to lend me this sack of wheat," said Jérôme, "you would be doing me a great service , for I have in mind a highly lucrative job which I cannot undertake as I have no Provisions on which to live until it is finished." "I was in the same position", replied Mathurin, "and if I now have enough bread assured for a few months, I have earned it at the expense of my hands and stomach. On what principle of justice should it now be devoted to achieving your enterprise and not mine?"
You can well imagine that the negotiations were lengthy. However, they were concluded, on the following terms:
First of all, Jérôme promised to return in one year's time a sack of wheat of the same quality and the same weight, with not a grain missing. "This initial clause is only fair," he said; "without it Mathurin would not be lending it, he would be giving it away."
Next, he undertook to hand over five liters of wheat over and above the hectoliter . 1339 "This clause is no less fair than the other," he thought; "without it Mathurin would be providing me with a service for no reward. He would be depriving himself, abandoning the enterprise so dear to him, and would be enabling me to achieve mine. For a year he would be allowing me to enjoy the fruit of his savings, and all this for no charge. Since he is postponing his land clearance, since he is enabling me to carry out a lucrative task, it is only natural for me to allow him to participate to a certain extent in the profits that I will owe solely to his sacrifice."
For his part, Mathurin, who was something of an expert in such things, reasoned as follows. "Since, in accordance with the first clause, the sack of wheat will be returned to me at the end of one year," he said to himself, "I will be able to lend it again. It will be returned to me the second year; I will lend it again and so on for eternity. However, I cannot deny that it will have been eaten a long time ago. It is very odd that I will eternally be the owner of a sack of wheat in spite of the fact that the one I lent will have been totally used up. But this can be explained: it will be used up in providing a service to Jérôme. It will enable Jérôme to produce something of greater value and consequently Jérôme will be able to return a sack of wheat or its value without experiencing any hardship in the slightest. As for me, this value will unquestionably be my property for as long as I do not use it up for my own purposes; if I had used it to clear my land, I would have recovered it in the form of a fine harvest. Instead of this, I am lending it and will recover it in the form of repayment.
I learn another lesson from the second clause. At the end of the year, I will receive five liters of wheat over and above the hundred I lent him. If, therefore, I continued to work on a daily basis, and save some of my earnings as I have been doing, after a while I would be able to lend two sacks of wheat, then three and four, and once I had invested a sufficient number to enable me to live on the sum total of the five liters of payment from each one of them, I would be able to rest a bit in my old age. But then, wouldn't I be living at the expense of others? Certainly not, since it has just been acknowledged that by lending I am providing a service and advancing the work of my borrowers, for which I am paid just a small part of the additional production that is due to my loan and savings. It is marvelous that man is able to achieve leisure that harms no one and cannot be envied without injustice."
The HouseMondor 1340 had a house. In building it, he had never extorted anything from anyone at all. He owed it to his personal work or, which amounts to the same thing, to work that was fairly paid for. His first care was to conclude an agreement with an architect by which, for a set fee of one hundred écus per year, the architect would undertake to keep the house in good condition. Mondor was already congratulating himself for the happy days he was about to spend in this sanctuary that our Constitution has declared to be sacred. However, Valère 1341 claimed the right to make it his home. "What are you thinking?" asked Mondor, "It was I who built it, it has cost me ten years of arduous work and you are the one who will benefit from it!" They agreed to take the matter to the courts. They did not seek out learned economists; there were none in the locality. But they chose just men with common sense, which amounted to the same thing: political economy, justice, and common sense are one and the same. Well, this is what the judges decided. If Valère wished to occupy Mondor's house for one year, he would have to observe three conditions. The first was the obligation to leave at the end of the year and hand back the house in good condition apart from normal wear and tear. The second was the obligation to repay Mondor the 300 francs that Mondor paid the architect each year to repair the ravages of time since this damage would be occurring while the house was in Valère's hands and in all fairness he should bear the consequences of it. The third obligation was that he would have to provide Mondor with a service equivalent to the one he was receiving. This equivalence of service would have to be freely negotiated between Mondor and Valère.
The PlaneA very long time ago, there lived in a poor village a carpenter who was something of a philosopher, as are all my characters to some extent. Jacques 1342 worked morning and night with his strong hands, but his mind was not idle for all that. He liked to understand his own actions, both as to their causes and their effects. From time to time he said to himself "With my axe, my saw and my hammer I can make only rough furniture and I am paid accordingly for this. If I had a plane I would please my customers more, and they would please me more as well. This is only fair; all I can expect is to receive services that are proportional to the ones I myself supply. Yes, I have made up my mind; I will make myself a plane ."
However, just as he was about to begin, Jacques thought to himself "I work 300 days a year for my customers. If I take 10 of them to make my plane and assuming it lasts me one year, I will have only 290 days to make my furniture. In order, therefore, that I don't end up being duped in this affair , I will have, with the help of the plane, to earn as much from 290 days' work in the future as I do now from 300. Actually, I need to earn more than that, for unless I do, it will not be worth the trouble to venture into making innovations." Jacques therefore began to do his sums. He made sure that he would be selling his improved furniture for a price that would reward him amply for the ten days devoted to making the plane. And when he was quite certain of this, he started work.
I ask the reader to note that the power inherent in the tool to increase the productivity of labor is at the root of the solution that follows.
At the end of ten days, Jacques had a wonderful plane in his possession that was all the more precious since he had made it himself. He was overcome with joy for, like Perrette, 1343 he counted up all the profit he was going to make from this ingenious instrument; unlike her, he was fortunate enough not to be reduced to saying "Farewell cow, calf, pig and brood!"
He was in the middle of building his castles in Spain 1344 when he was interrupted by his colleague, Guillaume, a carpenter in the neighboring village. Once he had admired the plane, Guillaume was struck by the advantages he might obtain from it. He said to Jacques:
"You must do me a service ."
"What service?"
"Lend me this plane for one year."
As you can imagine, this proposition led to an inevitable outcry from Jacques:
"Are you out of your mind, Guillaume? And if I do you this service , what service will you do me in turn?"
"None. Do you not know that loans ought to be free of charge? Do you not know that capital is naturally unproductive? Do you not know that Fraternity has been proclaimed? 1345 If you do me a service only in order to receive one from me, what merit will it gain for you?"
"Guillaume, my friend, fraternity does not mean that all sacrifices have to be one-sided; and if they do, I do not see why they should not be made by you. I do not know whether loans ought to be free of charge, but I do know that if I lent you my plane free of charge for one year, it would be like giving it to you. To tell you the truth, I did not make it for that purpose."
"Well then, let us dispense with the modern axioms on fraternity that the socialists have discovered. I am asking you for a service; what service do you want from me in exchange?"
"First of all, in a year's time the plane would have to be scrapped 1346 for it would be useless. It would therefore be fair for you to give me back one exactly like it or enough money to have it repaired or compensate me for the ten days I will have to devote to making a new one. In one way or another, the plane has got to be returned to me in the same good condition as when I gave it to you."
"That is only fair and I accept this condition. I undertake to return to you either a similar plane or its value . I think you will be satisfied and have nothing further to ask of me."
"Quite the contrary, I think. I have made this plane for me and not for you. I was expecting an advantage from it, an improved level of work that was better paid and an improved standard of living. I cannot hand all that over free of charge. How could it be justified that I have made the plane while you gain the benefit? I might just as well ask you for your saw and axe. What a muddle! Is it not more natural for each to keep what he has made with his own hands just as he keeps his hands themselves? Making use of the hands of others for no reward, that is slavery ; can making use of others' planes for no reward, be called fraternity?"
"But we have agreed that in a year's time I will give it back to you as bright and shiny as it is today!"
"It is no longer a question of next year; it is a question of this one. I have made this plane to improve my work and my standard of living; if you limit yourself to giving it back to me in a year's time, you are the one that will have the benefit of it for a whole year. I am not bound to provide you with a service like this without any service from you; if therefore you want my plane, apart from the total restitution we have already stipulated, you have to provide me with a service which we will discuss; you have to compensate me."
And this was done. Guillaume gave Jacques a payment calculated to give Jacques back a brand new plane at the end of the year together with compensation consisting of a plank for the economic benefits he had gone without and had handed over to his colleague.
And if anyone heard of this transaction, he would have found it impossible to find any trace of oppression or injustice in it.
The striking thing is that, at the end of the year, the plane was returned to Jacques, who lent it again immediately, received it back, and lent it a third and fourth time. It passed into the hands of his son who rents it out still. Poor plane! How many times has its blade or handle been changed! It is no longer the same plane, but it still retains the same v alue , at least for Jacques' descendants.
Workers, let us now discuss the meaning of these tales.
First of all, I state that the Sack of Wheat and the Plane are in this instance the type, model, faithful representation, and symbol of all forms of capital, just as the five liters of wheat and the plank are the type, model, representation, and symbol of all forms of Interest. This having been said, the following is a series of consequences whose fairness cannot be contested:
1. If the handing over of one plank by the borrower to the lender is a payment that is natural, equitable, legitimate, and the fair price for a genuine service, we may conclude that, in general, it is in the nature of capital to generate interest. When this capital, as in the examples above, takes the form of w ork tools , it is very clear that it has to produce a return for its owner, the man who made it and who has devoted his time, intelligence and strength to it, otherwise why would he have made it? Tools of production do not satisfy any immediate need; we do not eat planes and drink saws, unless we are talking about Fagotin. 1347 In order for a man to decide to take time off for producing things of this sort, he will most certainly have had to come to this decision through a consideration of the power that such tools will add to his own, the time they will save him, and the improvement and speed they will give his work, in short, of the gains they provide. Well, are we obliged to hand over to someone else, free of charge, the gains we prepared for ourselves through our work and the sacrifice of time which might have been used for some more immediate purpose, just when we are about to enjoy them? Would it be an advance in the social order for the law to decide in this way, and for citizens to pay civil servants to ensure the execution by force of a law like this? I am bold enough to say that there is not a single one of you who would support this. This would be to legalize, organize, and systematize injustice itself, for it would be to proclaim that there are some men born to provide services free of charge and others to receive them. Let us affirm, therefore, that in fact interest is just, natural, and legitimate.
2. A second consequence, no less remarkable than the first and, if such were possible, even more satisfying, to which I draw your attention, is this: Interest does not harm the borrower . By this I mean that the obligation of the borrower to pay compensation for having the use of a certain capital cannot make his situation worse. 1348
Note that, in fact, Jacques and Guillaume are perfectly free with regard to the transaction to which the p lane may give rise. This transaction can take place only if it suits both parties. The worst that can happen is that Jacques will be too demanding and in this case, Guillaume will refuse the loan and his position will remain as it was before. By taking on the loan, Guillaume is making clear that he considers it advantageous; he is making clear that, having done his calculations and taking account of the compensation, whatever it is, for which he is responsible, he finds it more beneficial to borrow than not to borrow. He takes his decision only after comparing the gains and disadvantages. He has calculated that, on the day he hands back the plane together with the agreed compensation, he will have still produced more for the same work, thanks to this tool. He will retain some profit; if this were not so, he would not borrow.
The two services we are discussing here are exchanged in accordance with the law governing all exchanges: the law of supply and demand. Jacques' demands have a natural and impassable limit. This is the point at which the payment he demands would come to equal all the benefit that Guillaume would obtain from using the plane. In this case, the loan would not be made. Guillaume would have either to make a plane for himself or do without it, which would leave him in his original situation. He borrows, and therefore he benefits from borrowing.
I know full well what people will say to me. They will say "Guillaume may be making a mistake, or else he may be driven by necessity and have to comply with a hard law."
I agree, but my answer is "With regard to mistakes in calculation, these result from weaknesses in our nature, and using these as an argument against the transaction under discussion is to object to all possible transactions and all human actions. 1349 Error is an accident that is constantly being put right by experience. In the end, it is up to each person to be careful. As for hard necessity, which obliges people to take out burdensome loans, it is clear that these situations existed before the loan. If Guillaume is in a situation such that he absolutely cannot do without a plane and this obliges him to borrow one at any price, does this situation arise because Jacques has taken the trouble to manufacture this tool? Is it not independent of this circumstance? However hard and brutal Jacques is, he would never be able to make the current position of Guillaume worse. Certainly, from the moral point of view, the lender can be blamed, but from the economic point of view the loan itself could never be considered responsible for previous necessities that it had not created and which, to some extent it relieves.
But this proves one thing to which I will be returning and that is that Guillaume's obvious interest, the personification here of all borrowers, is that there should be a great many Jacques and planes, in other words, of lenders and capital. It is very clear that if Guillaume can say to Jacques "Your demands are exorbitant, I will go elsewhere; there is not a shortage of planes in the world," he would be in a better situation than if Jacques' plane was the only one available for lending. Clearly, there is no truer aphorism than this: A service in return for a service. However, we should never forget that no service has a fixed and absolute value compared with others. The parties entering into an agreement are free. Each of them makes his demands as high as possible and the circumstance that favors these demands most is the absence of competition. From this it follows that if there is a class of people more interested than others in the creation, increase, and abundance of capital, it is above all the class of borrowers. Well, since capital is created and accumulated only when stimulated by the prospect of a just return, that class should therefore understand the damage it does itself by denying the legitimacy of interest, proclaiming free credit, declaiming against the alleged tyranny of capital, discouraging saving, and thus encouraging the scarcity of capital and consequently a high level of rent.
3. The tale I have told you also sets you on the path to explaining the apparently strange phenomenon that is known as the longevity or perpetuity of interest. Since, when lending this plane, Jacques was very legitimately able to stipulate the condition that at the end of the year the plane would be returned to him in the same condition as it was when lent, is it not obvious that he is able, when this period is over, either to use it for his own purposes or lend it again on the same conditions? If he takes the latter option, the plane will be returned to him at intervals of one year indefinitely. Jacques will thus also be able to lend it indefinitely, that is to say, draw from it a perpetual rent. People will say that the plane will wear out. That is true, but it is worn out by the hand of and for the benefit of the borrower. The borrower has included this gradual deterioration in his accounts and has taken responsibility for the consequences, as he should. He has calculated that he will draw from this tool sufficient benefit to be able to agree to hand it back in its original condition after having made a profit as well. For as long as Jacques does not use up this capital buying things for himself for his own personal benefit, for as long as he forgoes these advantages, this will enable him to restore the plane to its original condition, and he will have an indisputable right to its return over and above the interest payments.
Please note as well that if, as I think I have demonstrated, Jacques, far from doing Guillaume wrong, has done him a service by lending him his plane for a year, for the same reason he will not do harm but on the contrary do a service to the second, third, and fourth borrower in successive periods. From this you will understand that interest on capital is as natural, legitimate, and useful in the thousandth year as in the first.
Let us go further still. It may be that Jacques will lend just one plane. It is possible that, by dint of work, saving, doing without, organization, and activity, he manages to lend a host of planes and saws, that is to say, to provide a host of services . I stress the point that if the first loan is a social good this will be true for all the others, for they are all of a kind and based on the same principle. It may then happen that the total of all the payments received by our honest artisan in exchange for the services he provides is enough to provide him in turn with a living. In this case, there will be one man in the world with the right to live without working. I do not say that he will do well by devoting himself to rest; I say that he will have the right to do so, and if he does take up this right it will not be at the expense of anyone at all, quite the contrary. If society understands the nature of things a little, it will acknowledge that this man is living from the services he doubtless receives (as we all do) but that he receives these quite legitimately in return for the other services he himself has provided, that he continues to provide, and which are perfectly genuine, since they are freely and voluntarily accepted.
And here we can glimpse one of the finest harmonies in the social world. I am referring to Leisure , 1350 not that leisure that the warlike and dominating castes organized for themselves through the plundering of the workers, but the leisure that is the legitimate and innocent fruit of past activity and saving. By expressing myself in this way, I know that I am upsetting a great many preconceived ideas, but look, is not leisure an essential spring in the social mechanism? 1351 Without it there would never have been any Newtons, Pascals, or Fénélons in the world; 1352 the human race would have no knowledge of art, the sciences, nor any of the marvelous inventions originally made by investigation out of pure curiosity. Thought would be inert, and man would not have the ability to advance. On the other hand, if leisure could be explained only as a function of plunder and oppression, if it were a benefit that could be enjoyed only unjustly and at the expense of others, there would be no middle way between two evils: either the human race would be reduced to squatting in a vegetative and immobile life, in eternal ignorance because one of the cog wheels in its mechanism was missing, or it would have to conquer this cog wheel at the price of inevitable injustice and be obliged to offer the world the sorry sight in one form or another of the division of human beings into masters and slaves as in classical times. I challenge anyone to suggest an alternative outcome within the terms of this analysis. We would be reduced to contemplating the providential plan that orders society with the regretful thought that something is very sadly missing. The driving force of progress would either have been forgotten, or what is worse, this driving force would constitute nothing other than injustice itself. But no, God has not left out an element like this from his creation. Let us be careful to acknowledge fully his wisdom and power. Let those whose imperfect thinking fails to explain the legitimacy of leisure at least echo that astronomer who said: "At a certain point in the heavens there has to be a planet which we will one day discover, for without it the celestial world is not harmony but disharmony." 1353
Well then! I say that, once it is understood properly, the tale of my humble plane, although very modest, is enough to elevate us to the contemplation of one of the most comforting and unacknowledged of the social harmonies. 1354
It is not true that we must choose between a denial of leisure or regarding it as illegitimate. Thanks to rent and its natural longevity, leisure may arise from work and saving. This is a pleasant prospect everyone can keep in mind and a noble reward to which each individual may aspire. It has appeared in the world and is spreading, distributed in proportion to the exercise of certain virtues. It opens all the avenues to intelligence and renders the souls of the human race more noble, more moral and spiritual, not only without putting any weight on those of our brethren who are condemned by circumstances to heavy labor, but also gradually relieving them as well of all the most heavy and distasteful tasks that this labor involves. All that is needed is for capital to be created, accumulated, increased, and lent at rates that are increasingly less onerous and for this capital to reach down and to penetrate all social strata and there will result the most admirable social progress, first serving to emancipate the lenders, and then hastening the emancipation of the borrowers themselves. For this to happen, all laws and customs have to be in favor of saving, which is the source of capital. All that needs to be said is that the most important condition for this is to avoid scaring off, attacking, combating, and negating what is the stimulus of saving and its raison d'être: rent.
As long as we see passing from hand to hand in the way of loans merely provisions, materials, and tools , things that are essential for the productivity of work itself, the ideas set out up to now will not encounter many opponents. Who knows whether I will not even be criticised for making a great effort to preach to the converted, as they say. But as soon as money is involved as the means of the transaction (and it is almost always money), objections rise up again in droves. Money, it is said, does not reproduce itself as your sack of wheat does; it does not assist work as your plane does. It does not provide direct satisfaction as your house does. It is, therefore, of its very nature incapable of producing interest or increasing in size, and the payment it exacts is real extortion.
Who does not see the sophism in this? Who does not see that money is just a transitory form that people assign temporarily to other values , to things that are genuinely useful, with the sole aim of facilitating their affairs? At the very heart of society's complications, is the fact that the person who is in a position to lend almost never has the actual thing a borrower needs. Jacques has a plane all right, but perhaps Guillaume wants a saw. They would not be able to agree, a transaction favorable to both would not ensue, and what would happen then? What would happen is that Jacques would first exchange his plane for money, then lend the money to Guillaume who would exchange the money for a saw. The transaction has become complicated and broken down into two factors, as I have explained above with reference to exchange. 1355 However, it has not changed its nature for all that. It does not embody any fewer of the elements of a direct loan. Jacques has no less deprived himself of a tool that was useful to him, Guillaume has no less received an tool that improves his work and increases his profits; there is no less of a service provided by the lender that gives him the right to receive an equivalent service from the borrower, and this just equivalence is no less established by free and open negotiation between the two parties. 1356 The very natural obligation to hand back the entire value at the due date is no less the basis of the longevity of interest.
"At the end of one year", says Mr. Thoré, "will you find one additional écu in a bag of one hundred francs?" 1357
Certainly not, if the borrower tosses the bag into a corner. If this happens, neither the plane nor the sack of wheat will reproduce by themselves. However, it is not to leave money in a bag or the plane on a hook that people borrow them. They borrow the plane in order to use it or the money in order to acquire a plane. And if it has been clearly demonstrated that this tool enables the borrower to make a profit that he could not have made without it, if it has been demonstrated that the lender has given up the opportunity to make this additional profit for himself, people will understand that the requirement of a share in this additional profit by the lender is fair and legitimate.
Ignorance of the true role of money in human transactions is the source of the most disastrous errors. I have set myself the task of devoting an entire pamphlet to it. 1358
From what we can infer from Mr. Proudhon's writings, what has led him to think that free credit was a logical and definitive consequence of social progress is the observation of the phenomenon that shows us interest decreasing almost directly with the progress of civilization. In barbaric times it can be seen in effect to be 100 percent or more. Later it goes down to 80, then 60, 50, 40, 20, 10, 8, 5, 4 and finally 3 percent. In Holland, it has even been seen to be 2 percent. The following conclusion is then drawn: "If interest becomes close to zero as society progresses, it will achieve zero when society is perfect. In other words, what characterizes social perfection is free credit. Let us therefore abolish interest and we will have achieved the final rung of progress." 1359
This is just a specious argument, and since this erroneous line of reasoning may contribute to popularizing the unfair, dangerous, and subversive dogma of free credit by representing it as coinciding with social perfection, the reader will forgive me for examining this new point of view in slightly more detail.
What is interest ? After a process of free negotiation, it is the service provided to the lender by the borrower who pays for the service he has received as a result of the loan.
What law governs the rate for these repayment services on the loans? The general law that governs the equivalence of all services, that is to say, the law of supply and demand. The easier it is to acquire an item, the less of a service is provided in selling or lending it. A man who gives me a glass of water in the Pyrenees is not providing me with as great a service as one who lets me have a glass of water in the Sahara desert. 1360 If there are a great many planes or sacks of wheat or houses in a region, you can obtain the use of them ( ceteris paribus ) 1361 on more favorable conditions than if they are scarce, for the simple reason that the lender is providing less of a service relatively speaking .
It is therefore not surprising that the greater the supply of capital, the lower interest rates become.
Is this to say that they will ever reach zero? No, because, I repeat, the justification for the repayment of loans lies irrefutably in the loan itself. To say that interest will be eliminated is to say that there will no longer be any incentive to save, to deprive yourself, or to build up new capital, nor even to maintain the capital that already exists. If this happens, the dissipation of capital will immediately create a vacuum and interest will immediately reappear. 1362
In this respect, the type of services with which we are dealing is the same as any other. Through the progress made by industry, a pair of stockings that used to be worth 6 francs has seen its value decrease to 4, 3, and 2 francs successively. Nobody can see how low this value will drop, but what you can be sure of is that it will never reach zero, unless stockings finally make themselves spontaneously. Why? Because the principle of remuneration is inherent in labor /production, and because the person who works for someone else is providing a service and has to receive a service in return. If stockings were no longer being paid for, they would stop being made, and with the return of scarcity, a price for them would inevitably reappear.
The sophism that I am combating here is rooted in the possibility of dividing something infinitely, which applies to value as well as to materials.
At first sight, it appears paradoxical but it is well known to mathematicians that it is possible to remove fractions from a weight from minute to minute throughout eternity without ever succeeding in eliminating the weight itself. It is enough for each successive fraction to be less than the previous one in a determined and regular proportion.
There are countries in which people concentrate on increasing the size of horses or reducing the volume of the head of a sheep. It is impossible to say just how far these efforts will reach. Nobody can say that he has seen the largest horse or the smallest sheep's head that will ever appear on the earth. However, it can be stated that the size of a horse will never attain infinity any more than the heads of sheep will attain nothingness.
In the same way, nobody can say just how far the price of stockings or the interest on capital will decrease, but it can be affirmed, given a knowledge of the nature of things, that neither will ever reach zero, since work and capital can no more exist without payment than a sheep without a head.
Mr. Proudhon's argument is thus reduced to this: Since the most skilled farmers are those who have reduced the size of the heads of sheep the most, we will have achieved farming perfection when sheep have no heads. In this case, in order to reach this level of perfection ourselves, let us cut off their heads.
I have reached the end of this boring dissertation. Why is it that the flood of bad doctrine makes it necessary to go so far into the inner nature of rent? I will not end without drawing attention to a fine moral lesson that we can draw from this law: "Interest decreases in proportion to the abundance of capital." Given this law, if there is one class of people more closely interested than any other in creating, accumulating, and increasing capital and ensuring that it is abundant and plentiful, it is without doubt the class that borrows it, whether directly or indirectly, it is the people who use materials , who are assisted by tools, and whose livelihood is ensured by provisions that have been produced and saved by other people.
Imagine a nation of a thousand inhabitants in a vast and fertile country who are without any form of capital as we have defined it. It will perish for certain in the tortures of hunger. Let us move to a set of arrangements scarcely less cruel. Imagine that ten of these primitive people are equipped with tools and provisions in sufficient quantity to work and keep themselves alive until harvest as well to pay for the services of ninety workers. The inevitable result will be the death of nine hundred human beings. It is also clear that since 990 people driven by need will rush to get food which can maintain only 100, the 10 capitalists will be masters of the marketplace. They will obtain labor on the most arduous conditions, for they will put it out to auction. And you should note this: If these capitalists have any shred of human feeling that leads them to deprive themselves personally in order to decrease the suffering of a few of their brethren, this generosity that is linked to a moral philosophy will be as noble in its principle as it will be useful in its effect. However, if they are duped by the false philanthropy that people want so thoughtlessly to combine with economic laws, and are determined to pay handsomely for labor, far from doing good they will do harm. Let them double the wages they pay. But in this case, forty-five men will be better provided for, while forty-five others will increase the number of those headed to the grave. In these conditions, it is not the lowering of earnings that is the true scourge but the scarcity of capital. Low earnings are not the cause but the effect of the damage. I add that to a certain extent they are the remedy for it. They act to spread the burden of suffering as far as it can be spread, and save as many lives as a predetermined level of food productionmakes it possible to save. 1363
Let us now assume that, instead of ten capitalists, there are one hundred, two hundred, or five hundred. Is it not obvious that the situation of the entire nation, especially that of the proletarian class 1364 will be increasingly improved? Is it not obvious that, setting aside any consideration of generosity, they will obtain more work and a better reward for their labor and that they themselves will be in a better position to create capital , there being no identifiable limit on their ever-increasing ability to achieve equality and well-being? How crazy would they be therefore if they accepted doctrines and carried out acts likely to dry up the source of earnings and paralyze the driving force and the stimulus to save! Let them therefore learn this lesson: Who can deny that capital is good for those who possess it? But it is also useful for those who have not yet been able to create it, and it is important to those who lack it that others have it.
Yes, if the proletarian class were aware of their true interests, they would seek to discover with even greater care the circumstances that were favorable or unfavorable to saving in order to encourage the former and discourage the latter. They would welcome with joy any measure that led to the rapid creation of capital. They would be enthusiastically in favor of peace, freedom, order, security, the union of classes and nations, economy, the reduction of public expenditure, and the simplification of the system of government, 1365 for it is under the sway of all these circumstances that saving does its work by putting abundance within the reach of the masses, inciting the very people to amass capital who in the past were reduced to borrowing it under duress. They would strenuously reject the warlike spirit that deflects such a major proportion of human labor from its proper end, the spirit of monopoly that upsets the equitable distribution of wealth that only freedom can achieve, the multiplication of public services that only impinge on our purses in order to restrict our freedom, and finally the subversive, hateful, and reckless doctrines that frighten capital, prevent it from being created, force it to flee, and in the end make it more expensive, to the detriment of the workers who put it to work.
Well then! Is not the February Revolution a hard lesson in this connection? Is it not obvious that the insecurity that it caused in the world of business, together with the generation of the disastrous theories to which I refer, and which, originating in the political clubs, 1366 came close to infiltrating the corridors of the Chamber of Deputies, 1367 have raised the rates of interest everywhere? Is it not obvious that, once this had happened, it became more difficult for the proletarian class to obtain these materials , tools, and provisions without which work is impossible? Is this not the cause of unemployment, and does not unemployment in turn bring about a fall in earnings? Thus, work is made unavailable to the proletarian class by exactly the same causes – an increase in interest rates -- that increase the prices of the things they use. An increase in interest rates, and a fall in wages means in other words that the same object retains its price but the share of the capitalist has encroached on the share of the worker, without any profit for the latter.
One of my friends, assigned to carrying out a survey on industry in Paris, 1368 assured me that manufacturers revealed a striking fact to him, which proves better than any line of reasoning how far insecurity and uncertainty undermine the creation of capital. It had been noted that, during the most disturbed period, popular expenditure of the most irrational kind had not decreased. Small theatres, sporting rings, bars, and tobacconists were just as frequented as in prosperous times. In the survey, the workers themselves explained this phenomenon. "What is the good of saving? Who knows what the future will bring? Who knows whether interest is not going to be abolished? Who knows whether the State, once it has become the universal lender at no cost, is not going to eliminate all the benefits we might expect from our thrift?" Well then! I say that if ideas like this were able to predominate for just two years, it would be enough to turn our beautiful France into a Turkey. Poverty would become general and endemic, and what is most certain is that the first to suffer would be the poorest.
Workers, 1369 you are told a great deal about the artificial organization of labor; do you know why? Because people do not know the laws governing its natural organization, 1370 that is to say, the wonderful organization that results from freedom. You are told that freedom generates what is called the radical antagonism between the classes, that it creates and brings to blows two opposing sets of interest, the interests of capitalists and those of the proletarian class. However, what needs to be shown to start with is that this antagonism exists because of the intention of nature, and then it would remain to be proved how the system of coercion is worth more than that of freedom , for between freedom and coercion I do not see a middle road. It would also remain to be proved that coercion would always be to your advantage and to the detriment of the wealthy. No, no, this radical antagonism and this natural conflict of interest do not exist. They are the bad dreams of perverted imaginations in delirium. No, a plan so full of faults has not emanated from the Divine Mind. To claim that this was so, you would have to begin by denying God. And, by virtue of social laws and for the sole reason that men exchange their work and products freely between each other, see what harmonious links bind the classes to each other. Take landowners; what is in their interest? That the soil is fertile and the sun benevolent. What is the result of this? That wheat is abundant, its price decreases, and the advantage shifts to those who have no inherited property. Take manufacturers; what is constantly in their minds? To improve their working processes, increase the power of their machines, and to procure their raw materials under the best possible conditions. And what is the result of all these things? The abundance and low price of products, that is to say, that all the efforts of manufacturers, without their realizing it, result in benefits for the consuming public of which you are members. This is true for all types of occupations. Well then! capitalists do not escape this law; here they are, fully occupied in producing value, making savings, and producing the best return on their investments. That is very good, but the more they succeed, the more they encourage capital to become plentiful and, as a necessary corollary, interest rates to decrease. Well, who benefits from a decrease in interest rates? Is it not borrowers first of all and in the end the consumers of the items that capitalists compete to produce?
It is thus certain that the final result of the efforts made by each class is the common good of all.
You have been told that capital tyrannizes labor. I do not disagree that each person seeks to gain the best advantage from his situation, but in this they achieve only what is possible. Well, it is never possible for capital to tyrannize labor unless capital is scarce, as in this case capital dictates its terms and gets workers to bid against one another. Such tyranny is never so impossible as when capital is abundant, for in this case labor is in command.
Away then with class envy, malice, unfounded hatred, and unjust distrust. These depraved passions harm those who harbor them in their hearts. This is not moral bombast; it is a sequence of causes and effects that can be strictly and mathematically proven and it is no less sublime because it satisfies the mind and the heart equally.
I will summarize this dissertation in these words: Workers, laborers, proletarians, and those classes that are destitute and in suffering, do you wish to improve your lot? You will not succeed in this by conflict, insurrection, hatred, and error. However, there are three things that cannot improve the entire community without extending their benefits to you and these three things are PEACE, FREEDOM, and SECURITY.
1284 See the glossary entry on "Bastiat's Anti-Socialist Pamphlets".
1285 Molinari, Les Soirées de la rue Saint-Lazare; entretiens sur les lois économiques et défense de la propriété (Evenings on Saint Lazarus Street: Conversations about Economic Laws and the Right to Property) (Paris: Guillaumin, 1849). Liberty Fund translation forthcoming.
1286 Molinari, Cours d'économie politique (Bruxelles, 1855). 2nd revised and enlarged edition 1863.
1287 See EH, chapters IV Exchange, VII Capital, XIII Rent.
1288 "Damn Money!" (April 1849), below, pp. 000;"Capital" (mid 1849), below, pp. 000; and"Free Credit" (October 1849 - March 1850), below, pp. 000.
1289 See the glossary entries for "Coquelin," "Fonteyraud," "Garnier," and "Molinari."
1290 Some of his articles on Malthusian population and rent were debated in the monthly meetings of the Political Economy Society and there was not much support for is new ideas. ??
1291 See the glossary entry on "Service for Service." Also the draft sketch on "The Mutual Exchange of Services", below, pp. 000.
1292 See below, pp. 000.
1293 Molinari, Obituary of Bastiat, JDE 1851, p. 193.
1294 Proudhon uses the phrase "mutualité des services" in Lettre à M. Blanqui sur la propriété. Deuxième mémoire (Paris: Prévot, 1841), p. 27; and Système des Contradictions économiques (Guillaumin, 1846), Tome II, "Chap. XI. La Propriété," p. 262-63.
1295 The Abbé de Condillac (1714-80) was a priest, philosopher, economist, and member of the Académie française. Condillac was an advocate of the ideas of John Locke and his book Le Commerce et le gouvernement, considérés relativement l'un a l'autre (1776) appeared in the same year as Adam Smith's Wealth of Nations.
1296 Henri Storch (1766-1835) was a Russian economist of German origin who was influenced by the writings of Adam Smith and Jean-Baptiste Say. He was noted for his work on the economics of unfree labor (particularly that of serfdom), the importance of moral (human) capital to national wealth, comparative banking, and the greater wealth-producing capacity of industry and commerce compared with agriculture.
1297 See the discussion of Condillac and Storch in Economic Harmonies (FEE edition): Condillac in chap 4 'Exchange," pp. 66 ff.; Storch in chap. 5 "On Value", p. 142 ff.
1298 "Justice and Fraternity" ( JDE, 15 June 1848), CW2, pp. 60-81.
1299 "Justice and Fraternity", CW2, p. 64.
1300 Like the Austrian economists Ludwig von Mises and Murray Rothbard, Bastiat thought that economics was based upon a small number of self evident truths, or widely known truths, or as here "truisms." See the Editor's Introduction to "Economic Harmonies IV (Dec. 1848), above, pp. 000.
1301 This is an apocryphal story about the originality of Columbus' "discovery" of the Americas. After his voyages the significance and originality of his feat was challenged by a group of Spanish nobles one night at dinner. One of them pointed out that the Spanish Empire was full of smart people, one of whom would have inevitably done what Columbus had done. Columbus replied to this challenge by asking for an egg to be brought to the table and he challenged his dinner companions to stand the egg on its tip on the dinner table. None could, so Columbus tapped the egg on one end breaking the shell slightly and stood it on its end on the table. The point of the story is that something becomes easy and obvious once somebody has done it for the first time, such as the first voyage to the Americas.
1302 In his "economic tales and stories" Bastiat uses dialogue between characters to make his political and economic points. Sometimes he uses ordinary French names like Jacques or Guillaume; sometimes he uses the names of stock characters like Jacque Bonhomme, the archetypal smart French peasant; and at other times he uses the names of well known figures from French history or popular culture, such as here with Mondor. "Mondor" was the performance name of Philippe Girard who was a 17th century street actor and charlatan.
1303 Here Bastiat is referring to the realisation that he and Molinari had come to during the 1848 Revolution that the classical economists had opened themselves up to socialist criticism because of their hitherto poor defence of private property, interest, and rent.
1304 Proudhon was a leading figure in the French socialist movement in the 1840s. He challenged the legal and moral basis of private property and the justice of interest and rent. He and Bastiat debated these matters in a series of articles in late 1849 and early 1850 in Proudhon's magazine La Voix du Peuple (The Voice of the People), which was later published as a book. See"Free Credit", below, pp. 000.
1305 La Voix du Peuple is the newspaper published by Proudhon after Le Représentant du Peuple was banned in August 1848. See the "Manifeste électorale du Peuple " (No. 4, 8-15 novembre (1848)), pp. 181-93. The passage Bastiat quotes comes from p. 184. Œuvres complètes de P.-J. Proudhon, Tome XVII. Mélanges: articles de journaux, 1848-1852, Volume 1. Articles du Répresentant du peuple. - Articles du Peuple . (Paris: Librairie Internationale, 1868). In "The Electoral Manifesto" Proudhon espoused his ideas on the social revolution and the means of achieving it, in particular free credit.
1306 Proudhon uses the expression "Productivité du capital" (the productivity of capital) instead of "the profits of capital" which one might have expected in this context.
1307 Molinari wrote the article on Usury for the DEP . Gustave de Molinari, "Usure," DEP (1853), T. 2, pp. 790-95. See also the following articles written by Bastiat's colleagues which give the standard classical view on these matters and their critique of Proudhon and the other socialists: Charles Coquelin, "Capital," DEP T.1, pp. 273-88; Léon Faucher, "Intérêt," DEP T. 1, pp. 953-70; Hippolyte Passy, "Rente du sol" DEP, T.2, pp. 509-20; and Courcelle Seneuil, "Profit," DEP, T. 2, pp. 454-56.
1308 La Ruche populaire (The Popular Hive]. Première Tribune et Revue Mensuelle rédigée et publiée par des ouvriers sous la direction de François Duquenne. Ouvrier imprimeur. La Ruche populaire was a monthly magazine published between 1839 and 1849 which took a saint-simonian and socialist perspective. It prided itself on being written, edited, and printed by workers, in particular François Duquenne and Jules Vinçard (1796-1879). It also published political songs and poems.
1309 The author of the article Bastiat quotes uses the 18th century word "argentier" which we have translated as banker. However, it must be noted that argentiers were state officials attached to the royal court whose duty it was to provide the court with banking and other money related services. They might also be called "state" or "court bankers".
1310 Théophile Thoré (also known as Thoré-Bürger) (1807-1869) was a French art critic who pioneered the study of Vermeer. He was involved in democratic politics throughout the 1840s. When the 1848 revolution broke out he founded a daily paper called La Vraie République (The True Republic) (it should be noted that the short-lived journal that Bastiat and his friends started in February 1848 was called La République française (The French Republic)) which was soon shut down by the government, and then in March 1849 he began another called Le Journal de la vraie République (the paper of the true republic) which was looted in June 1849 during the riots.
1311 1 écu = 5 francs = 100 sous
1312 Thoré is making the following point about interest. Since 1 écu = 5 francs = 100 sous, at an interest rate of 5% p.a. a bag of 100 francs will contain 5 additional francs after one year. At 5% p.a. compound interest the value of a bag of écus will have doubled in 14.4 years.
1313 We were not able to find the source of this quotation.
1314 An early use of the phrase "tyrannie du capital" can be found in Louis Blanc, Organisation du travail: Association universelle: Ouvriers, Chefs-d'ateliers, Homme de lettres (Administration de librairie, 1841), p. 108: "Il y a mieux : à mesure que notre système se développe, le capital collectif s'accroît; la généralité des travailleurs devient de plus en plus indépendante; les occasions de placement individuel de jour en jour diminuent; la tyrannie du capital est frappée au cœur." (Even better: as our (socialist) system develops, the capital of the collective is increased, the workers become more and more independent, the occasions when workers are employed on a day to day basis are reduced, the tyranny of capital is struck at its very heart."
1315 There may have been personal contact between Proudhon and Bastiat in late 1848 or early 1849 when this article was written but we have no evidence of it. Proudhon had been elected to the Constituent Assembly in the election of 4 June 1848 and served there until May 1849 when he was arrested and jailed. He may have had opportunities to speak to Bastiat who had been elected in April 1848. The most direct confrontation between the two came in late 1849 and early 1850 in the series of articles on rent in Proudhon's magazine la Voix du Peuple and which were published as Gratuité du crédit (Free Credit). Proudhon wrote his articles from prison. See below, pp. 000.
1316 Bastiat uses the word Rent here, "le capital produise une Rente" (capital generates Rent), when it would be more usual to say capital produces a return or a profit in the form of Interest, while ownership of a piece of land produces Rent. It could be that he just means any annual income or return from an investment, whether capital or land. In the 1880 translation of this essay by David A. Wells he substitutes the word "interest" for Bastiat's "rente" as he senses this fact. However, we have chosen to use Bastiat's preferred terminology throughout this essay because during late 1848 and mid 1850 he was working on a new theory of rent and value which challenged some of the core beliefs of classical political economy.
1317 Here Bastiat does use the word "interest."
1318 Bastiat uses the word "rentier" or someone who has a private income or has independent means.
1319 Bastiat is punning again here on there being "no interest in creating interest" on capital.
1320 This is the first and only time Bastiat uses the expression "les exploiteurs des hommes." Normally he would use the term "les spoliateurs" (the plunderers).
1321 Livre III. Des différentes manière dont on acquiert la propriété. Art. 711. "La propriété des biens s'acquiert et se transmet par succession, par donations entre-vifs ou testamentaire, et par l'effet des obligations." (Property in goods is acquired or transferred by succession, by gifts to the living or to one's heirs, and as the result of obligations.) Code civil des français.Édition originale et seule officielle. (Paris: L'Imprimerie de la République. An XII. 1804).
1322 Concerning theft, Bastiat intended writing a book on the "History of Plunder" but did not live to write more than a few sketches and draft chapters. See the glossary entry on "Bastiat's Theory of Plunder."
1323 This is Bastiat's second use of a key phrase "la mutualité des services" (the mutual exchange of services), which was to become so important to Bastiat's theory of exchange and value in the Economic Harmonies . He first used it in the essay "Property and Plunder" (24 June, 1848) the previous year. Wells translates it as "the reciprocity of services" as does Boyers in the FEE translation of Economic Harmonie s.
1324 Later in 1849 Gustave de Molinari addressed many of the objections to inheritance in Les Soirées de la rue Saint-Lazare, especially Soirée no. 4.
1325 Bastiat uses several words for money, such as "numéraire" (cash), "argent" (silver, or more commonly money), and "monnaie" (money). We have translated them all as "money" in this essay as there is no need to distinguish between paper money and gold or silver backed money as there is is some of his other writings.
1326 Here Bastiat is paraphrasing Say's discussion in the Traité d'économie politique , Book I, Chapter XXI "De la nature et l'usage des Monnaies" (On the Nature and use of Money) on how money is the essential intermediary between two exchanges, or as Say states it, "une vente d'abord, et ensuite un achat" (first a sale followed by a purchase), p. 242. Jean Baptiste Say, Traité d'économie politique, ou simple exposition de la manière dont se forment, se distribuent et se consomment les richesses. Sixième édition entièrement revue par l'auteur, et publiée sur les manuscrits qu'il a laissés, par Horace Say , son fils (Paris: Guillaumin, 1841).
1327 Bastiat uses the term "le régime prohibitif" (the prohibitionist regime) which we have translated as "the protectionist regime". There is a difference, as the French government did ban or prohibit the importation of some goods, but "protectionist" is the more general description of this and other attempts to limit or restrict trade.
1328 This saying is the title of one of the Essays of Montaigne, "Le Profit d'un est dommage de l'autre" (One man's gain is another man's loss). Bastiat called this phrase the "classical example of a sophism, the root stock sophism from which comes multitudes of sophisms." See ES3 15, CW3, pp. 341-43 and Essais de Montaigne , vol. 1, chap. 21, "Le Profit d'un est dommage de l'autre" (One man's gain is another man's loss), pp. 130-31.
1329 Bastiat has not quite broken away from the classical school's belief that things of equal utility or objective value are exchanged in a transaction. He does not use the word "égal" (equal) or "égalité" (equality) but rather the word "équivalente" (equivalent) which he applies to services and not physical objects. Furthermore, these services are not objectively valued but are the result of a process of comparison, evaluation, and assessment by each individual who is a party to the transaction. The phrase Bastiat uses is "l'appréciation comparée des deux services" (the comparative evaluation of the two services).
1330 Bastiat in this sentences shows how similar "loyer, fermage, intérêt" (rent for a house, rent for land, interest) were in his mind.
1331 Note that 1 écu = 5 francs = 100 sous.
1332 Although Bastiat rejects the idea that things of equal utility are exchanged he persists in thinking that "equivalent" services are exchanged. The difference between "equal" and "equivalent" is not always clear.
1333 Here Bastiat is explaining the nature of "time preference" whereby a person places a higher value on present consumption than they do on future consumption and therefore requires compensation to forego that present consumption. In Bastiat's terminology, consumption in the present is a different service to consumption in the future.
1334 Such as Proudhon.
1335 Here Bastiat does use the word "égalité de valeur" (equality of value) and not equivalent for the purposes of the following argument.
1336 Bastiat uses the expression "troc pour troc" (to swap or barter one thing for another).
1337 Bastiat uses the expression "la réciprocité des services" which is how FEE translates "la mutualité des services." We however have kept them distinct.
1338 The name "Mathurin" is associated with an order of monks founded in the 12 century by Saint John de Matha to buy back Christian prisoners of the Moors. It was called the "Ordre de la Très Sainte Trinité pour la Rédemption des captifs", also known as the Order of Trinitaires, or Mathurins.
1339 A liter is about 2 pints and a hectoliter (100 litres) is about 2.8 bushels in volume.
1340 Bastiat first used the character of "Mondor" in ES2 6 "To Artisans and Workers" which originally was published in Le Courrier français, 18 September 1846. He was a profligate spendthrift. He used him again in the pamphlet "Damned Money! in April 1849. The character "Mondor" is based upon Philippe Girard, who with his brother Antoine, were street jugglers and tricksters in Paris in the early 17th century who sold patent medicines to passers-by. They wore brightly coloured costumes and entertained passers-by with witty, philosophical, seductive, and sometimes scatalogical songs and dialogue in order to persuade them to buy their merchandise.
1341 Valère was a character in Molière's play L'Avare (The Miser) (1668). Harpagon, the daughter of the miserly moneylender, wants to marry Valère in order to get away from her family.
1342 Jacques Bonhomme. Elsewhere Bastiat described Jacques Bonhomme as "a carpenter like Jesus", in ES2 3 "The Two Axes", CW3, pp. 138-42; and has his own version of Leonard Read's famous "I, Pencil" story about a village carpenter in "Natural and Artificial Organization" (Jan. 1848), below, pp. 000.
1343 Bastiat is referring to a fable by La Fontaine, "La Laitière et le pot au lait" (The Milk Maid and the Pail of Milk) (c. 1678). A milk maid named Perrette carries a full pail of milk balanced on her head to market. As she walks along she dreams of all the things she would buy with the profits of her sale, some chicken eggs to hatch, a brood of chicks to raise and sell, a pig, and a cow. As she day dreamed about her expected profits she lost control of the pail on her head and it fell to the ground, spilling all her milk. Sadly she had to say farewell to the imaginary "cow, calf, pig and brood" she had planned to buy with her profits from her milk sale. Jean de la Fontaine, "La Laitière et le pot au lait" (The Milk Maid and the Pail of Milk), Livre VII, Fable X, Fables et oeuvres diverses de Jean de la Fontaine, avec des notes et une nouvelle notice sur sa vie, par C.A. Walckenaer (Paris: Firmin Didot frères, 1842), pp. 212-13.
1344 In the moralizing conclusion of the fable, Fontaine refers to the folly of building fantasy castles in Spain. Tis is also possibly another ref. to Don Quixote. See, "Barataria," below, pp. 000.
1345 Bastiat directly addressed the socialists' appeal for "Fraternity" in his article "Justice et fraternité" (Justice and Fraternity) which appeared in the JDE in June 1848 and was later republished as one of his Anti-Socialist Pamphlets. See, "Justice et fraternité" (Justice and Fraternity), JDE , T. XX, 15 June 1848, 310-27] [OC4.4, p. 298] [CW2] and Propriété et Loi. Justice et Fraternité, par M. F. Bastiat, Membre correspondant de l'Institut, Représentant du peuple à l'Assemblée nationale. Extrait du Journal des économistes, nos. du 15 mai et 15 juin, 1848 (Paris: Guillaumin, 1848).
1346 Here Bastiat puns on the word "rabot" (plane) and the phrase "mettre au rebut" (throw something on the scrap heap), thus something like "scrap the scraper."
1347 "Fagotin" was the name of the pet monkey owned by Pierre Datelin (also known as Jean Brioché) (1567-1671) who founded one of the first puppet theatres in Paris around 1650. The monkey was used to amuse the audience as the puppet show unfolded. The theatre was taken over by Pierre's son François and during his stint as puppet master his side-kick Fagotin was immortalized by being on the receiving end of the famous swordsman, free-thinker, and poet Cyrano de Bergerac (1619-1655) who ran him through with his sword for making faces at him. Fagotin was also used as a character in Molière's Tartuffe (Act II, scene 4) and La Fontaine's "La Cour de lion" (Book VII, Fable 7). See also Charles Coypeau d'Assoucy, "Combat de Cyrano de Bergerac avec le singe de Brioché, au bout du Pont-Neuf" (1704), in Variétés historiques et littéraires, recueil de pièces volantes rares et curieuses en prose et en vers, revues et annotées par M. Édouard Fournier (Paris: P. Jannet, 1855). Tome I, p. 277-87.
1348 See also the 8 th letter in the debate between Bastiat and Proudhon in Free Credit , below, pp. 000.
1349 "Les actions humaines," see the glossary entry on "Human Action."
1350 On the important part that leisure played in human lives, see his moving "reflection on leisure" in Letter 4 of "Free Credit," below, pp. 000.
1351 Bastiat uses the metaphor of a clock to describe the functioning of "the social mechanism," with its wheels, springs, and movement (or driving force) (rouage, ressort, mobile). See the glossary on "The Social Mechanism."
1352 Sir Isaac Newton (1642-1726) was an English physicist and mathematician who made important contributions to gravitation, classical mechanics, optics, and calculus; François Fénelon (1651-1715) was the Archbishop of Cambrai and tutor to the young duke of Burgundy, the grandson of Louis XIV. He wrote Les Aventures de Télémaque (1699) which was a thinly veiled satire of the reign of Louis XIV and a critique of the notion of the divine right of kings.; Blaise Pascal (1623-62) was a French mathematician and philosopher whose best-known work, Pensées (Thoughts), appeared posthumously.
1353 Most likely Pierre-Simon, marquis de Laplace (1749-1827). See the glossary entry on "Laplace." Bastiat uses the word "discordance" (disharmony) which he often paired with its opposite "harmonie" (harmony). See the glossary entry on "Harmony and Disharmony."
1354 "Social Harmonies" was one of the early working titles Bastiat gave to his planned multi-volume work of social theory. The first volume was to have been on the harmony which can be found in peaceful social, political, legal, and private activities of all kinds. The second volume on the harmony which can be found in peaceful economic activities. The third, and possibly fourth volumes, would deal with the "disharmonies" which were introduced into these peaceful harmonies by "disturbing factors" such as the plunder and exploitation which is produced by slavery, war, protectionism, regulation, and socialism.
1355 See above pp. 000 where Bastiat quotes Say.
1356 The phrase "le débat libre et contradictoire (free and open negotiation), or more commonly just "le libre débat" (free negotiation), was crucial to Bastiat's understanding of how the market worked in a free and cooperative fashion in the absence of coercion.
1357 Since an écu was worth 5 francs he is referring to an annual interest rate of 5%.
1358 See Damned Money! (April, 1849), below, pp. 000.
1359 See the 10 th letter in the debate between Bastiat and Proudhon, Free Credit, below, pp. 000.
1360 Bastiat provides here an interesting discussion of the subjective nature of value and is another example of his movement away from the classical Smithian and Ricardian theory of value based upon objective notions of the amount of labour embodied in a good or its absolute utility. For Bastiat, the value of a good to an individual depends upon their circumstances, their changing preferences, and the relative scarcity of the good supplied.
1361 "Ceteris paribus" is a Latin expression commonly used in economics. It means "all other things being equal." Bastiat was the first among the economists in the Guillaumin network to use the phrase. Jean-Baptiste Say used it in his Cours complet d'économie politique (1826-28) and McCulloch used it in his Principles of Political Economy (???) . Bastiat seems to have introduced it into French economic thinking in the late 1840s. See the glossary entry on "Ceteris paribus."
1362 For the differentiation between the various elements of interest, see the final pages of the 12 th letter in the debate between Bastiat and Proudhon, Free Credit . Here Bastiat states: "What one commonly calls interest comprises three components which are often confused: 1. Interest properly understood, which is payment for the delay (in being reimbursed), or the price of time; 2. the costs of (putting money into) circulation; and 3. an insurance premium." Below, pp. 000.
1363 Elsewhere Bastiat distinguishes between the Malthusian notion of "the means of subsistance," which is the bare minimum needed for physical survival, and "the means of existence," by which he meant something more like the modern idea of the "standard of living". Bastiat rejected the idea that the poor were condemned to hovering just above or just below the means of subsistance. The productivity of the free market, if it were unshackled from its protectionist chains and high levels of taxation, would dramatically raise the standard of living of all people.
1364 Here Bastiat switches from using terms like "ouvriers" (workers) and "travailleurs" (labourers) to using the socialist-inspired term "prolétaires" (proletarians or proletarian class).
1365 Bastiat uses the expression "le mécanisme of gouvernement."
1366 See the glossary entry on "The Political Clubs."
1367 Disappointed with the poor showing of the socialists in the election of April 1848, supporters of Louis Blanc protested in the streets of Paris on 15 May, invaded en masse and with guns the Chamber of Deputies while it was sitting, paraded Louis Blanc on their shoulders around the Chamber while they demanded the formation of a new government. Bastiat was in the Chamber when this happened. The protesters were arrested and the Chamber attempted to deprive Blanc of his parliamentary privileges so he too could be tried and deported. Bastiat was one of the few Deputies to vote against legal action against Blanc on account of the action of some of his supporters.
1368 Léon Say, the son of Horace Say (a friend of bastiat's) and grandson of Jean-Baptiste Say, wrote a report for the Chamber of Commerce of Paris on the state of industry in Paris and the Department of the Seine in October 1848: Chambre de commerce de Paris. Enquête sur l'industrie de Paris et du département de la Seine. Instruction générale. (Signé: Les secrétaires adjoints de la commission de statistique, Léon Say, Natalis Rondot. [1er octobre.]) Paris: P. Dupont, 1848).
1369 Here Bastiat reverts to the non-socialist word "Ouvriers".
1370 See the essay "Natural and Artificial Organisation" (Jan. 1848), below, pp. 000.
T.235 (1849.02) Peace and Freedom or the Republican Budget↩
SourceT.235 (1849.02) Peace and Freedom or the Republican Budget (Paix et liberté ou le budget républicain). Published as a pamphlet, Paix et Liberté, ou le Budget républicain (Peace and Freedom, or the Republican Budget) (Paris: Guillaumin, 1849). [OC5, pp. 407-67.] [CW2.15, pp. 282-324.]
Editor's Note[to come]1
TextA program! A program! That is the cry that rises from all sides to the cabinet.2
How do you understand home affairs? What will your foreign policy be? Through what major measures do you mean to raise revenue? Are you undertaking to remove from us the triple plague that appears to be hovering over our heads: war, revolution, and bankruptcy? Will we at last be able to devote ourselves in some degree of security to work, enterprise, and major undertakings? What have you drawn up to ensure for us the tomorrow you promised to all citizens the day you took the helm of our affairs?
This is what everyone is asking, but alas! the minister makes no reply. What is worse, he appears to be systematically determined not to say anything.
What should we conclude from this? Either the cabinet has no plan, or, if it has one, it is hiding it.
Well then, I say that, in either case, the cabinet is failing in its duty. If it is hiding its plan, it is doing something it has no right to do, since a government plan does not belong to the government but to the public. We are the ones interested in the plan, since our well-being and security depend on it. We ought to be governed not according to the hidden intentions of the government but according to intentions that are known and approved. It [283] is up to the cabinet to set out, propose, and take the initiative, up to us to judge it, accept or refuse it. But in order to judge, we need knowledge. He who climbs onto the driving seat and takes the reins is declaring by this very act that he knows or thinks he knows the destination to be reached and the route that must be taken. At the very least he should not keep destination and route a secret from the travelers when these travelers form the whole of a great nation.
If there is no plan,3 let him judge for himself what he must do. In all eras government calls for an idea, and this is especially true today. It is very clear that we can no longer follow the same old ruts, the ruts that have already overturned the coach in the mud three times. The status quo is impossible and tradition inadequate. Reforms are needed, and although the words have a hollow ring, I will say, “We need something new,” not something new that undermines, overturns, and terrifies, but something new that maintains, consolidates, reassures, and rallies.
Therefore, in my ardent desire to see a genuine republican budget appear, and discouraged by government silence, I remembered the old proverb, “If you want something done properly, do it yourself,” and to be sure of having a program I drew one up. I submit it to the public’s good sense.
And first of all, I have to tell you in what spirit it was conceived.
I love the Republic, and, to make an admission that may surprise some people,4 I add that I like it much better than on 24 February.5 These are my reasons.
Like all political writers, even those from the monarchical school, including Chateaubriand among others, I believe that a republic is the natural form of normal government. The people, the king, and the aristocracy are three powers that can coexist only during their conflict. This conflict has armistices known as charters. Each power stipulates in these charters a part that relates to its victories. It is in vain that theoreticians have intervened and said, “The height of art is to settle the attributions of the three jousters in such a way that they counter each other mutually.” The nature of things ordains [284] that during and because of the truce one of the three powers strengthens and grows in stature. The conflict starts once more and then comes lassitude resulting in a new charter, one that is slightly more democratic, and so on until the republican regime triumphs.
However, it may happen that once the people have achieved self-government they govern themselves badly. They suffer and long for a change. The exiled claimant takes advantage of the opportunity and reascends the throne. At this, the conflict, the truces, and the reign of the charters starts again, to terminate once more in a republic. How many times can this experiment be repeated? This is what I do not know. But what is certain is that it will be final only when the people have learned to govern themselves.
Now, on 24 February, like many others, I had grounds to fear that the nation was not prepared to govern itself. I was fearful, I admit, of the influence of Greek and Roman ideas, which are imposed on all of us by the university monopoly, ideas that radically exclude all justice, order, and freedom and that have become even more false in the authoritative theories of Montesquieu and Rousseau. I also feared the terror of weak souls and the blind admiration of others, inspired by the memory of the First Republic. I said to myself, “As long as these unfortunate associations of ideas last, the peaceful reign of democracy over itself is not assured.”
But events did not bear out these forecasts. The Republic was proclaimed; to return to a monarchy, there would have to be a revolution, perhaps two or three, since there are several claimants.6 What is more, these revolutions would be only the prelude to a new revolution, since the final triumph of the republican format is the necessary and inexorable law of social progress.
May heaven preserve us from such calamities! We are in a Republic, so let us remain there; let us remain there, since sooner or later it will return; let us remain there, since to extricate ourselves from it would be to return to the era of upheavals and civil wars.
However, for the Republic to be maintained, the people have to love it. It has to put down innumerable deep roots in the universal goodwill of the masses. Confidence needs to be born again, production must flourish, capital [285] has to be built up, and earnings have to be increased; life must become easier, and the nation become proud of its work and show it off to the rest of Europe, resplendent in its genuine grandeur, justice, and moral dignity. Let us therefore inaugurate the policy of peace and freedom.
Peace and freedom! It is certainly not possible to aspire to two more-elevated objects in the social order. But what can they have in common with the cold, stark figures of a mere budget document?
In fact, the link is as close as it can possibly be. A war, the threat of war, or a negotiation that might lead to war, these come into being only by virtue of some small article inscribed in this weighty volume, the terror of the taxpayer. Similarly, I challenge you to imagine a form of oppression, a limitation of citizens’ freedom, or a chain around their arms or necks that is not born of a budget for state revenue and does not subsist because of it.
Show me a people who are fed on unjust ideas of their foreign domination, oppressive influence, preponderance, and irresistible power, who meddle in the affairs of neighboring nations, constantly menacing or being menaced, and I will show you a people bowed down with taxes.
Show me a people who have endowed themselves with institutions of such a nature that citizens cannot think, write, print, teach, work, trade, or assemble together without a mob of civil servants coming to hinder their movements, and I will show you a people bowed down with taxes.
For I can see quite clearly how it costs me nothing to live in peace with everyone. But I cannot conceive of what I would have to do to expose myself to continuous squabbles without being subject to enormous expenses either to attack or to defend myself.
And I also see quite clearly how it costs me nothing to be free, but I cannot understand how the state could take action against me in a way that is disastrous to my freedom if I had not begun by handing over to it, at my expense, the costly instruments of oppression.
Let us therefore seek economy in expenditure. Let us seek it because it is the only means to satisfy the people and make them like the Republic and keep a check on the spirit of turbulence and revolution through the goodwill of the masses. Let us seek economy, and peace and freedom will be given to us as a bonus.
Such economy is like personal interest. Both are vulgar motives, but they engender principles that are nobler than they.
The precise and current aim of financial reform is to restore the balance between revenue and expenditure. Its ulterior aim, or rather its effect, is [286] to restore public credit. Last, another, more important aim that it has to achieve in order to merit the fine title of reform is to conciliate the people, make the institutional structure popular, and thus spare the country new political upheavals.
While I appreciate from these various points of view the systems that have been developed, I cannot prevent myself from considering them either very incomplete or illusory.
A word on two of these systems, one from practical-minded people and the other from utopians.
I begin by declaring that I have the most profound respect for the knowledge and experience of financiers. They have spent their lives studying the mechanisms of our financial systems, they know all their aspects; and if it were only a question of achieving the balance that is virtually the exclusive objective of their pursuit, perhaps there would be nothing better to do than to entrust them with this already very difficult task. By snipping away at our expenditure, by increasing our revenue a little, I would like to think that in three or four years’ time they would lead us into that longed-for haven known as a balanced budget.
However, it is clear that the basic thought that governs our financial mechanism would remain the same, short of a few improvements to the details. Now, the question I am asking is this: by remaining under the sway of this basic thought, by replastering our system of contributions, so profoundly shaken up by the February revolution, do we have the three or four years ahead of us that separate us from this famous balance? In other words, does our financial system, even stripped of a few abuses, carry within itself the conditions that ensure its longevity? Is it not Aeolus’s sack7 and does it not contain wind and tempests within it?
If it is precisely from this system that all the upheavals arose, what are we to expect from its simple restoration?
Financiers, and by this I mean those for whom the fine ideal of reestablishing things, except for a few details, as they were before February, these men, may I say, want to build on sand and go around in a vicious circle. They do not see that the old system they are advocating, far from basing an abundant [287] flow of public revenue on the prosperity of the working classes, aims at swelling the budget by drying up the source that feeds it.
Apart from the fact that this is a radical vice from the financial point of view, it is also a frightful political danger. What! You have just seen what an almost mortal blow a revolution has given to our finances; you can have no doubt that one, if not the only, cause of this upheaval is the alienation of the people’s hearts generated by the weight of taxes, and the aim to which you are aspiring is to return us to our starting point and to drag the coach painfully to the summit of the fatal slope!
Even if a revolution had not taken place, even if it had not awoken in the masses new hopes and demands, I believe in all truth that your plans would be unachievable. But is it not the case that what would have been prudent before February has now become a necessity? Do you believe that your three or four years of effort devoted to the exclusive pursuit of balanced budgets can pass peacefully if the people see nothing on the horizon other than new taxes and if the Republic is visible to them only through the increased ruthlessness of tax collectors. And if, from the fruit of their work, increasingly less well paid, they have to hand over to the state and its agents an increasingly large part? No, do not expect this. A new upheaval will come and cut short your cold, pedantic work; and then, I ask you directly, what will happen to the balance and the credit that, in your eyes, are the apogee of the art and the end product of all intelligent effort?
I therefore believe that the practical men have completely lost sight of the third aim (and the first in importance) that I have assigned to financial reform, that is to say, to relieve taxpayers and ensure that the Republic is loved.
We had proof of this recently. The National Assembly reduced the salt tax and the tax on letters. Well, then! Not only do the financiers disapprove of these measures, they also cannot get it into their heads that the Assembly has acted in accordance with its own will. They still assume in all good faith that it was the victim of surprise and they detest it, so great is their repugnance for any notion of reform.
Please God, I do not wish to insinuate by that that the financiers’ cooperation should be rejected! Whatever new idea may emerge, it can scarcely be implemented other than with the assistance of their extremely useful experience. However, it is probable that it will not arise in their minds. They have lived too long with the vicissitudes of the past for that. If, before the campaigns in Italy, Napoléon had used thirty years of his life to study and apply all the combinations of the old strategy, do people believe that he [288] would have been struck with the inspiration that caused a revolution in the art of war and gave such luster to French arms?
Next to this school so full of age and experience, one which will offer valuable resources in execution but which will never, I fear, produce the fertile idea that France is waiting for to achieve its salvation, glory, and security, there is another school or rather an almost infinite number of other schools, whose ideas, if they can be reproached in any respect, at least cannot be so for their lack of originality. I have no intention of examining all the systems that they have brought to light. I will limit myself to saying a few words about the thought that appeared to me to dominate in the manifesto of the so-called advanced republicans.
This manifesto appears to me to be based on a vicious circularity even more blatant than that of the financiers. To tell the truth, it is simply a perpetual and puerile contradiction to tell the people “The republic is going to perform a miracle for you. It will free you from all of this heavy responsibility that burdens the human condition. It will take charge of you in the cradle, and after leading you, at its expense, from the nursery to the infant school, from the infant school to primary school, from primary school to secondary and special schools, from there to the workshop, and from the workshop to the almshouse, it will take you to your grave without your having needed, in a word, to take care of yourself. Do you need credit? Do you lack the tools of your trade or work? Do you want education? Has an accident occurred in your field or your workshop? The state is there, like an opulent and generous father, to provide and fix everything. What is more, it will extend its solicitude to the entire world by virtue of the dogma of solidarity, and should you take the fancy to go and sow your ideas and political views far and wide it will always maintain a great army ready to enter the campaign. That is its mission—it is a vast one—and the state asks nothing from you to accomplish it. Salt, wines and spirits, the post office, city tolls, contributions of all sorts, it will renounce everything. A good father gives to his children but asks nothing of them. If the state does not follow this example, if it does not fulfill the double and contradictory duty that we are pointing out to you, it will have betrayed its mission, and all you will need to do is to overthrow it.”
It is true that to hide these glaring impossibilities, they add, “Taxes will be transformed; they will be taken from the excess wealth of the rich.”
But the people have to know that this is just one more illusion. To impose on the state exorbitant attributions and persuade the public that it can meet [289] these with the money taken from the surplus wealth of the rich is to give vain hope to that public. How many rich people are there in France? When it was necessary to pay two hundred francs to have the right to vote, the number of electors was two hundred thousand, and of this number perhaps half did not have this surplus wealth. And people now wish to assert that the state can fulfill the immense mission it has been given by limiting itself to taxing the rich! It will be enough for two hundred thousand families to hand over to the government the surplus part of their wealth for it to lavish all sorts of benefits on eight million families that are less well off. However, people do not see one thing, which is that a tax system thus constituted would yield scarcely enough to provide for its own collection.
The truth is, and the people should never lose sight of this, that public contributions will always and of necessity be directed toward the most general objects of consumption, that is to say, the most popular. This is precisely the reason that should incite the people, if they are prudent, to restrict public expenditure, that is to say, the action, attributions, and responsibilities of the government. They should not expect the state to provide for them since they are the ones that provide for the state.8
Others place great hopes in the discovery of other sources of taxation. I am far from claiming that there is nothing to be gained from this avenue, but I submit the following observations to the reader:
1. All previous governments were passionately fond of taking a great deal from the public in order to be able to spend a great deal. It is scarcely probable that, where taxes are concerned, any valuable mine that is easy to exploit would have escaped the genius of the tax department. If it has been restrained by something, it can have been only the fear of national rejection.
2. If new sources of taxes cannot be found without upsetting habits and arousing discontent, would the moment be well chosen, after a revolution, to try this type of experiment? Would it not compromise the Republic? Let us work out the effect produced on taxpayers by this news: the National Assembly has just made you subject to taxes hitherto unknown to you and before which the monarchy retreated!
3. From the current and practical points of view, looking for and discovering new taxes is a certain means of doing nothing and neglecting the body [290] for its shadow. The National Assembly has only two or three months to live. In the meantime, it has to produce the budget. I leave it to the reader to draw his own conclusions.
After having referred to the most fashionable and the most unacceptable approaches, it remains for me to point out the one I would like to see triumph.
Let us first of all set out the financial situation we have to face.
We are in a situation of deficit (for the word shortage now falls short). I will not seek the exact figure of this deficit. I do not know how our accounts are kept; what I do know is that never, ever, do two official sets of figures for the same item agree. Be that as it may, the disease is serious in the extreme. The last budget (volume 1, page 62) contains this item of information:
Former overdrafts (another pretty word) for 1846 and earlier | 184,156,000 francs |
Budget for 1847 | 43,179,000 |
Indemnity for the savings banks | 38,000,000 |
Budget for 1848 | 71,167,000 |
Budget for 1849 | 213,960,534 |
Total overdraft | 550,462,534 francs |
This is the result of past budgets. Thus, the damage will constantly increase in the future if we do not succeed either in increasing revenue or in decreasing expenditure, not only in order to align them but also to find surplus revenue to absorb the previous overdraft s gradually.
It is no use hiding this from oneself; any other way leads to bankruptcy and its consequences.
And what makes the situation more difficult is the consideration that I have already indicated and that I stress with all my strength, namely, if a remedy is wholly or partially sought in a tax increase, which is what comes naturally to mind, this will generate a revolution. Well, although the financial effect of revolutions, to mention only these, is to increase expenditure and dry up the sources of revenue (I will refrain from a demonstration), instead of avoiding a catastrophe this procedure is likely only to precipitate it.
I will go further. The difficulty is even greater, since I assert (or at least this is my deepest conviction) that even all the existing taxes cannot be maintained without setting up the most terrible odds against us. A revolution has been achieved; it has proclaimed itself to be democratic and the democracy wants to experience the benefits. It may be right or wrong, but that is the [291] way things are. Woe to the government, woe to the country if this idea is not constantly present in the minds of the people’s representatives!
Now that the problem has been set out, what ought we to do?
For on the other hand, if expenditure can be reduced, there are limits to these reductions. They should not go so far as to disorganize services, as this would cause revolutions to occur from the other end of the financial spectrum.
What, then, ought we to do?
This is what I think. I set out my thought in all its naïveté at the risk of raising the hackles of all financiers and practitioners.
Reduce taxes. Reduce expenditure in an even greater proportion.
And, to clad this financial thought in its political formula, I add:
Liberty within. Peace without.
This is the entire plan.
You protest! “It is as contradictory,” you say, “as the Montagnards’ manifesto.9 It encompasses a vicious circle that is at least as obvious as those you have previously pointed out in the alternative measures.”
I deny this; I grant you only that the attempt is bold. But first, if the gravity of the situation has been clearly established and second, if it has been proved that traditional means will not extricate us, it seems to me that my thought has at least some right to be considered by my colleagues.
May I therefore be allowed to examine my two proposals, and would the reader be so good as to suspend his judgment and perhaps his verdict, remembering that these proposals form an indivisible whole?
First of all, there is a truth that should be remembered, since it is not sufficiently taken into account: it is that, because of the nature of our tax system, which is based predominantly on indirect taxation, that is to say, consumption taxes, there is a very close connection, an intimate relationship, between general prosperity and the prosperity of public finances.
This leads us to the following conclusion: it is not strictly accurate to say that relieving taxpayers will inevitably undermine revenue.
If, for example, in a country like ours the government, driven by an excess of fiscal zeal, raised taxes to the point of destroying consumers’ purchasing power, if it doubled or tripled the market price of essentials, if it made the materials and tools of the trade even more expensive, if, as a result, a considerable section of the population was reduced to depriving itself of everything [292] and living on chestnuts, potatoes, buckwheat, and corn, it is clear that the drastic shortfall in revenue might be attributed with some reason to the sharply increased taxation itself.
And in such circumstances it is also clear that the real means, the rational means of making public finances flourish, would not be to deal further blows to general wealth but on the contrary to allow it to grow; this would not be to tighten taxation but to relax it.
In theoretical terms, I do not believe that this can be queried. Through successive increases, taxation may reach the point at which what is added to its rate is bound to reduce its yield. When this point is reached, it is as vain, as crazy, and as contradictory to look for an increase in revenue by an increase in taxes as it would be to wish to raise the liquid in a manometer by means whose result would be to reduce the heat in the boiler.10
This having been said, we have to know whether, in fact, our country has not reached this point.
If I examine the principal objects of universal consumption from which the state exacts its revenue, I find them burdened with such exorbitant taxes that the acquiescence of taxpayers can be explained only by force of habit.
To say that a few of these taxes are tantamount to confiscation would be to understate the case.
First of all, take sugar and coffee. We could procure these at a low cost if we were free to seek them in the markets to which our interests direct us. However, in the clearly defined aim of closing off trade with the world to us, the tax authorities subject us to a heavy fine when we commit the crime of trading with India, Havana, or Brazil. If we, docilely bowing to its will, limit our trade to what three small rocks lost in the midst of the oceans are able to supply, we then pay, it is true, much more for sugar and coffee, but the mollified tax authorities take from us only approximately 100 percent of their value in the form of taxes.
This is called profound political economy. Note that acquiring the small rocks has cost us rivers of blood and tons of gold, interest on which will burden us for eternity. As compensation, we also pay tons of gold to keep them.
[293]In France there is a product that is quintessentially national and whose use is inseparable from popular habits. To restore the strength of workers, nature has given meat to the English and wine to the French; this wine can be procured everywhere at eight or ten francs a hectoliter, but the tax authorities intervene and tax you at the rate of fifteen francs.
I will say nothing about the tax on tobacco, which public opinion is ready to accept. It is no less true that this substance is taxed at several times its value.
The state spends five centimes or ten at the most to carry a letter from one point in the territory to another. Until recently, it obliged you to rely upon it; subsequently, when it had you in its grip, it made you pay eighty centimes, one franc, and one franc twenty for what cost it five centimes.
Shall I mention salt? It has been clearly established in a recent debate that salt can be produced in unlimited quantities in the southeast of France for fifty centimes. The tax authorities inflicted a duty of thirty francs on it. Sixty times the value of the product! And you call that a tax! I contribute at a rate of sixty because I possess one! I would earn 6,000 percent by abandoning my property to the government!
It would be worse if I mentioned the customs. Here the government has two clearly defined aims: the first, to raise the price of goods, to deny industry the materials it needs, and to increase the hardships of life; the second to amalgamate and increase taxes to such an extent that the tax authorities do not receive anything, recalling the following remark from a dandy to his tailor on the subject of a pair of breeches: “If I can get into them, I will not take them.”
Last, the exorbitantly high level of these taxes cannot fail to stimulate a spirit of fraud. When this happens, the government is obliged to surround itself with several armies of civil servants, to arouse suspicion in the entire nation and invent all sorts of interventions and procedures, which all paralyze production and drain the budget.
This is our tax system. We have no means of expressing its consequences in figures. But when, on the one hand, we study this mechanism and on the other we note that it is impossible for a major section of the population to become consumers, can we not ask ourselves whether these two facts are in a cause and effect relationship? Can we not ask ourselves whether we will set this country and its finances on their feet again by continuing down the same path, assuming that public disaffection leaves us the time? Truly, I consider that we are a little like a man who, having painfully emerged from [294] an abyss into which his foolhardiness has plunged him several times, can think of nothing better than to put himself on the same spot from which he started and to follow the same rut with a little more determination.
In theory, everyone will agree that taxes may be raised to such an inordinate degree that it is impossible to add anything to them without freezing general wealth creation so that it compromises the public treasury itself. This theoretical possibility has in fact made itself felt in such a striking way in a neighboring country that I ask to be able to use this example, since if the phenomenon was not acknowledged to be possible, my entire dissertation and all my subsequent conclusions would be worthless and without effect. I know that in France those who seek lessons from British experiments are not very welcome; we prefer to carry out experiments at a cost to ourselves. But I beg the reader to admit for an instant that, on both sides of the Channel, two and two make four.
A few years ago, England found herself financially speaking in a very similar situation to the one we are in. For several consecutive years, each budget ended in a deficit, to such an extent that daring and drastic means had to be envisaged. The first one that occurred to financiers was—you can guess—to increase taxes. The Whig cabinet did not spend much time on invention. It limited itself purely and simply to deciding that a surtax of 5 percent would be added to taxes. Its reasoning was this: “If 100 shillings of tax provide us with 100 shillings of revenue, 105 shillings of tax will provide us with 105 shillings of revenue, or at least 104 or 104½ shillings, since we have to allow for a slight drop in consumption.” Nothing seemed more mathematically assured. However, at the end of one year, they were astonished to have gathered, not 105 or 104 and not even 100, but only 96 or 97.
It was then that this cry of pain escaped from aristocratic breasts: “It is finished. We can no longer add even a farthing to our civil list. We have reached the limit of profitable taxation.11 We have no further resources since taxing more is to receive less.”
The Whig cabinet was overturned immediately. Other competent means had to be tried out. Sir Robert Peel stood forward. He was certainly a practical financier. This did not stop him from producing the sort of reasoning which, pronounced by a novice like me, seemed subtle and perhaps absurd. “Since taxation has created the destitution of the masses and since in turn [295] the destitution of the masses has limited the yield of taxation, it is a strict consequence, although one that appears paradoxical, that to make revenue prosper taxes have to be reduced. Let us try, therefore, to see whether the tax authorities, which have lost out by being too greedy, will not gain by being generous.” Generosity in the tax authorities! That would certainly be a new experience! It would be one well worth examining. Would the financiers not be happy to discover that generosity itself could sometimes be lucrative? It is true that in this case, generosity ought to be called interest properly understood. So be it. Let us not bicker over words.
Sir Robert Peel therefore began to cut taxes repeatedly. He allowed wheat, cattle, wool, and butter to be imported in spite of the clamors of the landlords, thinking with apparent reason that the people are never better fed than when there is a great deal of food in the country, a proposition that elsewhere is considered to be seditious. Soap, paper, swill, sugar, coffee, cotton, dyes, salt, the post, glass or steel, everything workers use or consume was subjected to reform.
However, Sir Robert, who is not a hothead, was perfectly aware that although a system like this had to react favorably on the exchequer by stimulating public prosperity, it could do so only in the long term. On the other hand, the deficits, shortfalls, or overdraft s, whatever you want to call them, were current and pressing. To abandon, even provisionally, part of the revenue would have made the situation worse and undermined credit. A difficult period had to be endured, made even more so by the enterprise itself. Thus, reducing taxes was just half of Sir Robert’s system, as it is just half of the one I am putting forward in all humility. It has been seen that the essential complement of mine12 consists in reducing expenditure in an even greater proportion. The complement of the Peel system was closer to financial and fiscal traditions. He thought of how to find another source of revenue, and income tax was decreed.
Thus, in the face of deficits, the first thought had been to make taxes heavier and the second was to transform them, to ask payment from those able to pay. This was progress. Why should I not have the pleasant idea that reducing expenditure would be even more decisive progress?
[296]I am obliged, in spite of the slowness it imposes on me, to examine the following question briefly: Has the British experiment been successful? I must do this, for what would be the use of an example that has failed, if not to avoid imitating it? This is certainly not the conclusion to which I wished to lead the reader. However, many people claim that Sir Robert Peel’s enterprise was disastrous, and their claim is all the more seemingly plausible since, precisely from the day that tax reform was inaugurated, a long and terrible commercial and financial crisis occurred to afflict Great Britain.
But first of all, I must point out that even if the recent economic disasters might be attributed at least in part to Sir Robert Peel’s reform, people should not be able to argue against the one I am proposing, since these two reforms differ signally. What they have in common is this: they seek the ulterior increase of revenue in the prosperity of the masses, that is to say, in the reduction of taxes as far as levels are concerned. How they differ is in this: Sir Robert Peel arranged the resources for facing up to the difficulties of transition through the establishment of a new tax. The resources I am calling for come through a steep reduction in expenditure. Sir Robert was so far from orienting his ideas in this direction that, in the very document in which he set out his financial plan before an attentive England, he was requesting a considerable increase in subsidies for the development of military and naval forces.
However, since the first part of these two systems merge in that they aim to establish the ample funding of the public treasury over the long term by relieving the working classes, is it not obvious that a reduction in expenditure or the pure and simple abolition of taxes is more in harmony with this thinking than shifting the tax?
I cannot help thinking that the second element of Peel’s plan was such as to contradict the first. Doubtless it did a great deal of good to spread the tax burden better. But when all is said and done, when you know a little about this subject, when you have studied the natural mechanism of taxes, their rebounds and repercussions, you know full well that what the tax authorities require from one class is paid for the most part by another. It is not possible for English workers not to have been affected, either directly or indirectly, by income tax. Thus, though they were relieved on the one hand, they were to a certain extent afflicted on the other.
But let us leave these considerations aside and examine whether, in the face of the clear facts that explain the English crisis so naturally, it is possible [297] to attribute it to the reform. The eternal false reasoning of those who are determined to incriminate something involves them in attributing to it all the evils that happen in the world. Post hoc, ergo propter hoc.13 The preconceived idea is and always will be the scourge of reason since, by its very nature, it flees the truth when it has the misfortune of glimpsing it.
England has had other commercial crises than the one it has just gone through. All have been explained by obvious causes. Once she was seized by a fever of ill-conceived speculation. Immense amounts of capital deserted production and went down the road of American loans and the mining of precious metal. The result was great upheaval in industry and finance. On another occasion, the harvest failed and the consequences are easy to imagine. When a considerable portion of the work of an entire nation has been directed toward the creation of its own subsistence, when the people have ploughed, harrowed, sown, and watered the earth with sweat for a year to make the harvest grow, if, at the time it is due to be gathered in, it is destroyed by a plague, they are faced with two alternatives: either to die of hunger or to import unexpectedly and rapidly huge amounts of food products. All the ordinary operations of production have to be interrupted in order for the capital involved in them to be freed to meet this gigantic and unexpected operation that cannot be postponed. What a waste of energy! What a loss of assets! And how can a crisis not result? This also happens when the cotton crop fails in the United States, for the simple reason that the factories cannot be as active in operation when they lack cotton as when they have it and it is never with impunity that stagnation spreads to the manufacturing districts of Great Britain. Insurrections in Ireland and unrest on the continent that disrupt British trade and reduce consumer power in its customers are also obvious causes of financial hindrance, difficulty, and disturbance.
The economic history of England teaches us that just one of these causes has always been enough to trigger a crisis in that country.
Well, it so happened that just at the moment when Sir Robert Peel introduced the reform, all these plagues occurred to afflict England at the same time and with a degree of intensity that had hitherto been unknown.
The result was great suffering for the people and the immediate broad-casting [298] of the preconceived idea: You see! It is the reform that is crushing the people!
However, I put the question: Was it really the financial and commercial reform that led to two successive losses of harvest in 1845 and 1846 and forced England to spend two billion to replace the wheat lost?
Was it really the financial and commercial reform that caused the destruction of the potato harvest in Ireland for four years and forced England to feed a starving people at its own expense?
Was it really the financial and commercial reform that ruined the cotton crop in two successive years in America, and do people believe that maintaining import taxes would have been an effective remedy?
Was it really the financial and commercial reform that gave rise to and developed railway mania14 and suddenly removed two or three billion from productive and customary work to throw them into enterprises that could not be completed, a folly that, according to all observers, has done more current harm than all the other plagues combined?
Was it really the financial and commercial reform that lit the fires of revolution on the continent and reduced the absorption of all sorts of British products?
Ah, when I think of the unheard-of alliance of destructive agents working together in a common direction, this tightly woven fabric of disasters of all sorts, accumulated by a fate without precedent in a limited space of time, I cannot help thinking, contrary to the preconceived idea: “What would have become of England, its power, its greatness, and its wealth, if Providence had not raised up a man at this precise and solemn moment? Would not everything have been swept away in a terrible convulsion?” Yes, I sincerely believe that the reform, blamed for the misfortunes in England, neutralized part of them. And the English people understand this, since although the most sensitive part of this reform, free trade, has been subjected right from its inception to the most difficult and unexpected tests, popular faith in it has not been shaken, and at the time I am writing this the work begun is continuing and progressing toward its glorious fulfillment.
[299]Let us therefore return from across the strait, and may confidence accompany us; there is no need to leave it on the other side of the Channel.
We are facing the revenue budget. The Assembly has already lowered the tax on salt and the carriage of letters. In my opinion, it should do the same for wines and spirits. Under this heading, I consider that the state should agree to lose fifty million. As far as possible it should spread the remaining tax over the whole of the wine consumed. People will understand that thirty to forty million spread over forty-five million hectoliters will be much easier to pay than one hundred million concentrated on a quantity three times less. The expenses and above all the hindrances resulting from the current collection system will also have to be reduced.
The state should also agree to reduce duties on sugar and coffee considerably. Increased consumption will solve the fiscal and colonial questions simultaneously.
Another great and popular measure would be the abolition of city tolls.15 On this subject, I have been struck by the advantage that might be drawn from an opinion put forward by M. Guichard. Everyone acknowledges that an income tax would be just and in accordance with proper principles. If people hesitate, it is because of the problems of executing it. There is great fear, which I think is justified, of the heavy responsibility that the importunate investigations essential for this tax would bring to bear on the state. It is not a good thing for a republican government to appear to taxpayers to be an avid inquisitor. In local districts, wealth is known about. It can be assessed within the family and if its holders were given the choice of establishing income tax with the specific aim of replacing city tolls, it is likely that this transformation, based on justice, would be received favorably. In the long run, France would thus be preparing a register of wealth held in movable assets and the means of leading its tax system down the path of truth. I do not think that a measure of this sort, which would also have the advantage of triggering decentralization, would be beyond the means of a clever statesman. It would certainly not have made Napoléon retreat.
[300]I am obliged to say something about the customs; and to shelter myself from the prejudices that I can see arising from here, I will consider them only from the fiscal point of view, since in any case it is just a question of the budget. It is not that I am not strongly tempted to make a sortie toward freedom of exchange, but will I not be compared to the brave general who was famous for his predilection for the care of horses? Wherever on the intellectual horizon you place the point of departure of the conversation, whether on chemistry, physics, astronomy, music, or the navy, you will see him rapidly mounting the saddle horse and you will be obliged to mount it behind him. We all have our pet subjects, our hobbyhorses in a Shandyan16 style. My pet subject, and why should I not admit it, is freedom, and if it so happens that I defend freedom to trade in particular, it is because, of all the freedoms, it is the one most misunderstood and most compromised.
Let us therefore examine the customs services from the fiscal point of view; and may the reader pardon me if, escaping tangentially, I touch a little on the questions of right, property, and freedom.
One of the most sincere and clever protectionists in this country, M. Ferrier,17 admitted that, if one wished to retain a fiscal character for the customs, it would be possible to draw twice the revenue for the treasury. It raises about one hundred million; therefore, independently of the charge imposed on us as consumers by protectionism, it makes us lose one hundred million as taxpayers. For it is perfectly clear that what the tax authorities refuse to recover by means of the customs services, it has to raise through other taxes. This mechanism is worth the trouble of examination.
Let us suppose that the treasury requires one hundred. Let us also suppose that, if foreign iron could enter on payment of a reasonable duty, it would provide the revenue with five. However, a sector of industrialists claims that it would be to its advantage for foreign iron not to be admitted. Taking their side, the law decrees prohibition, or what amounts to the same thing, a prohibitive duty. Consequently, any opportunity to raise a tax is deliberately sacrificed. The five do not come in and the treasury is left with only ninety-five. But since we have accepted that it needs one hundred, we have to agree to its taking five from us in some other way, on salt, the post, or tobacco.
[301]And what happens for iron also happens for all imaginable forms of consumer products.
In the face of this strange dispensation, what is the situation of the consumer-taxpayer?
It is this:
1. He pays considerable taxes, which are intended to maintain a huge army of employees at the frontier, an army that is established there on the instigation of and for the account and benefit of ironmasters or any other privileged person whose business it is furthering.
2. He pays a higher than market price for iron.
3. He is forbidden to make the thing in exchange for which the foreigner would have delivered his iron, for to prevent an asset from being imported is also to prevent by the same measure another asset from being exported.
4. He pays a tax to fill the void at the treasury, for to prevent an import from entering is to prevent tax being collected, and since the needs of the tax authorities are established, should a tax fail to be collected, it has to be replaced by another.
This certainly is a strange position for a consumer-taxpayer to be in. Is it more unfortunate than ridiculous or more ridiculous than unfortunate? It might be a problem to answer this.
And what is the reason for all of this? For an ironmaster to reap from his work and capital no extraordinary profit but only to enable him to experience even greater difficulties in production!
When then will decisions be taken in matters like this in consideration of the majority and not the minority? The interest of the majority, this is the economic rule that never goes wrong since it merges with justice.
One thing has to be clearly agreed upon, which is that in order for protection to be just without ceasing to be disastrous, it would need at least to be equal for all. However, is this possible, even in the abstract?
Men trade products with each other, or products in return for services, or services for services. It may even be asserted that, as products have value only because of the services they generate, everything is reduced to the mutuality of services.
Well, the customs service can obviously protect only the types of service whose value is incorporated in material products that can be stopped or seized at the frontier. It is radically incapable of protecting the direct [302] services provided by doctors, lawyers, priests, magistrates, soldiers, traders, men of letters, artists, or artisans, who already constitute a considerable part of the population, by raising the value of the services. It is equally powerless to protect men who let out their work, since they do not sell products, but provide services. Here then we have all workers or journeymen excluded from the alleged benefits of protectionism. But while protection is of no benefit to them, it damages them, and here we have to identify clearly the counterblow that those protected should feel themselves.
The only two classes protected, and to a very unequal degree, are manufacturers and farmers. These two classes see the customs as providential, and nevertheless we are witnesses to the fact that they never cease to bewail their distress. It must be that protection is not as effective for them as they had hoped. Who would dare to say that agriculture and manufacturing are more prosperous in those countries most protected, such as France, Spain, or the Roman states, than in those nations that have held their freedom less cheap, such as the Swiss, the English, the Belgians, the Dutch, and the Tuscans?
What is happening with regard to protection is something similar or rather identical to what we have confirmed just now in connection with taxes. In the same way that there is a limit to profitable taxation, there is a limit to profitable protection. This limit is the complete destruction of the ability to consume, a destruction that protection tends to bring, like taxes. The tax authorities prosper with the prosperity of taxpayers. In the same way, the value of an industry is based only on the wealth of its customers. From that it follows that, when the tax authorities or a monopoly seek to develop themselves by means whose inevitable effect is to ruin consumers, both enter the same vicious circle. There comes a time when the more they increase the level of tax, the more they reduce the yield. Those who are protected cannot assess the state of depression that weighs upon their industry, in spite of the favors of the protectionist dispensation. As in the case of the tax authorities, they seek a remedy in making these arrangements even more extreme. In the end they should ask themselves whether it is not the favors themselves that are oppressing them. They should contemplate the half or two-thirds of the population that is reduced, as a result of these unjust favors, to doing without iron, meat, cloth, or wheat, building carts with branches of willow, clothing [303] themselves in homespun, eating millet like birds or chestnuts like less poetic creatures!18
Since I have let myself be drawn into this discussion, allow me to end it with a sort of apologue.
In a royal park, there was a host of small ponds, all communicating with one another through underground conduits, so that the water had the invincible tendency to reach a uniform level. These reservoirs were supplied by a large canal. One of them, slightly more ambitious, wanted to attract to itself a major part of the supply intended for all. This should not have caused much of a problem in view of the inevitable leveling that would have followed the attempt, if the means thought up by the greedy and reckless reservoir had not led to an inevitable loss of liquid in the supply canal. We can guess what happened. The level decreased everywhere, even in the favored reservoir. It said to itself, since in apologues, there is nothing that does not speak, even reservoirs: “It is very strange, I draw to myself more water than before; I succeed for a fleeting moment in raising myself above the level of my peers and yet I see with distress that we are all moving, I along with the rest, toward total desiccation.” This reservoir, doubtless as ignorant of hydraulics as it was of morals, closed its eyes to two circumstances: the first being the underground communication of all the reservoirs with each other, an invincible obstacle to its being able to benefit exclusively and permanently from its injustice; the other being the general loss of liquid inherent in the means it had thought up, which was to lead inevitably to a general and continuous lowering of the level.
Well, I say that the social order also exhibits these two circumstances and that those who do not take them into account are reasoning incorrectly. First of all, between all forms of production, there are hidden communications, transmissions of work and capital, which do not allow one of them to raise its normal level above the rest indefinitely. Second, in the means thought up to carry out the injustice, that is to say, in protectionism, there is the radical ill that it generates an unredeemable loss of total wealth; and from these two circumstances, it follows that the level of well-being decreases everywhere, even within the industries that are protected, like the level of the water in the greedy and stupid reservoir.
[304]I was fully aware that free trade would divert me from my path. Obsessions! Obsessions! Your sway is irresistible! But let us return to the tax authorities.
I will say to those who support protectionism: In view of the pressing needs of the Republic, will you not agree to set a limit to your greed? What! When the treasury is in desperate straits, when bankruptcy threatens to engulf your wealth and security, when the customs service offers a truly providential means of rescue by being able to fill the public coffers without causing harm to the masses, but on the contrary, relieving them of the weight oppressing them, will you remain inflexible in your selfishness? On your own initiative, at this solemn and decisive moment, you ought to make the sacrifice, as you call it and which you sincerely believe it to be, of part of your privileges on the altar of the fatherland. You would be rewarded by public esteem and, I dare to forecast this, what is more you will also gain by way of material prosperity.
Therefore, is it too much to ask you to substitute duties of 20 to 30 percent for prohibition, which has become incompatible with our constitutional law? A reduction by half of the duties on iron and steel, those sinews of production; on coal, on which industry, so to speak, feeds; on wool, flax, and cotton, the materials used by labor; and on wheat and meat, the basis of strength and life?
But I see that you are becoming reasonable,19 you welcome my humble request, and we can now cast a glance, both morally and financially, at our now properly rectified budget.
First of all, here are many things that have at last come within the reach of the hands or lips of the people: salt, letter post, wines and spirits, sugar, coffee, iron, steel, fuel, wool, flax, cotton, meat, and bread! If we add to this list the abolition of city tolls and the profound modification if not the total abolition of the terrible law of recruitment, a terror and plague in our countryside, I ask you, will the Republic not have sunk its roots in all the fibers of popular adhesion? Will it be easy to shake? Will it require five hundred thousand bayonets to be the terror of the parties . . . or their hope? Shall [305] we not be protected from these terrible upheavals with which, it seems, the very air is charged right now? Might we not conceive the justified hope that a feeling of well-being and the awareness that the power has at last firmly entered into the path of justice will regenerate production, confidence, security, and credit? Is it an illusion to think that these beneficial causes will react on our finances more surely than a surfeit of taxes and hindrances might?
And, as for our current, immediate financial situation, let us see how it will be affected.
Here are the reductions that will result from the proposed system:
2 million, post | |
45 million, salt | |
50 million, wines and spirits | |
33 million, sugar, coffee, so | 130,000,000 |
It is not too much to hope for 30 million more to be deducted through an increase in general consumption and by the customs carrying out their fiscal responsibilities, so | 30,000,000 francs |
Total of the loss of revenue caused by the reform | 100,000,000 francs |
——A loss that should decrease, by its very nature, from year to year.
To decrease taxes (which does not always mean decreasing revenue), this is then the first half of the financial program of the Republic. You will say: “This is very bold, faced with the deficit.” And I will reply: “No, this is not boldness, it is prudence. What is bold, what is reckless and senseless is to continue down the path that brings us closer to the abyss. See where you are! You have made no secret of it, indirect taxes are causing you worry, and as for direct taxes themselves, you count on collecting them only if you employ a militia. Are we in the world of taking aim and military sallies? How could things have reached this stage? Here are one hundred men; they all pay a subscription to set up, for their security, an apparatus of enforcement, a common force of their own. Little by little, this common force is diverted from its purposes and it is made responsible for a host of unreasonable functions. Because of this, the number of men who live off this subscription increases, the subscription itself increases, and the number of those paying it decreases. Discontent and disaffection arise and what will be done? Return the common force to its original purpose? That would be too commonplace and, people say, too bold. Our statesmen are cleverer; they think of decreasing still further the number of those paying to increase the number of those [306] being paid. We need new taxes, they say, to maintain the military and new militias to collect the new taxes! And people do not see a vicious circle in this! We thus reach the fine situation in which half of the citizens will be occupied in repressing and holding the other half to ransom. This is what is known as wise and practical policies. All the rest is just utopia. Give us a few years more, say the financiers; allow us to push the system to its limits and you will see that we will at last achieve the famous balanced budget that we have been pursuing for so long and that has been upset precisely by the procedures that we have been following for the last twenty years.
It is therefore not as paradoxical as it appears at first glance to take an opposite course and to seek a balance through the reduction of taxes. Will such balance be less worthy of its name because instead of seeking it at 1.5 billion we achieve it at 1.2?
But this first part of the republican program makes a commanding appeal to its essential complement: a reduction in expenditure. Without this complement, the system is utopian, I agree. With this complement, I challenge anyone, other than those involved, to dare to say that it does not go right to the heart of the matter, and by the path that holds the least danger.
I add that the reduction in expenditure must be greater than the revenue; without this, we would be pursuing the leveling in vain.
Finally, it has to be said, a group of measures like these cannot provide all the results we have the right to expect of them in a single financial year.
We have seen, with regard to revenue, that to instill in it this force for growth whose basis lies in general prosperity, we had to begin by reducing it. This means that time is needed to develop this force.
This is equally true for expenditure; its reduction can be only gradual. Here is one reason for this, among others.
When a government has raised its expenditure to a level that is swollen and burdensome, this means in other words that many lives depend on its prodigality and feed on it. The idea of achieving savings without upsetting anyone carries a contradiction within it. To use sufferings as an argument against reform, which of necessity implies these sufferings, is to totally reject any act of reparation and to say: “Because an injustice has been introduced into the world, it is proper for it to be perpetuated forever.” This is an eternal sophism of those who idolize abuse.
However, from the truth that individual suffering is the necessary consequence of any reform, it does not follow that it is not the legislator’s duty to alleviate it as far as he can. For my part, I am not one of those who hold that, [307] when a member of society has been attracted by society to a career, when he has grown old in it and made it his specialty, when he is incapable of earning his living from another occupation, society should be able to cast him out, with neither hearth nor home. Any loss of particular employment therefore imposes on society a temporary responsibility on grounds of humanity and, in my view, of strict justice.
It follows from this that the modifications made to the expenditure budget cannot produce results immediately, any more than those made to the revenue budget. They are germs whose nature is to develop, and the overall scheme involves a decrease of expenditure from year to year by way of specific reductions and revenue that increases from year to year in parallel with general prosperity, so that the final result ought to be a balanced budget or a surplus.
As for the alleged disaffection that might reveal itself in the very numerous sector of public servants, I have to confess that, with the gradual changes that I have just mentioned, I am not afraid of this. Besides, this scruple is strange. As far as I know, it has never stopped massive destitutions after each revolution. And yet, what a difference there is! To dismiss an employee in order to give his job to another is more than upsetting his interest, it is wounding his dignity and his acute sense of right. But when the abolition of an occupation, fairly managed, results in the loss of jobs, it may cause harm but will not enrage. The wound is less sharp, and the person affected by it is consoled by consideration of the public good.
I needed to put these reflections before the reader when speaking about deep reforms, which would of necessity lead to the laying off of many of our fellow citizens.
I will not review all the articles of expenditure that I consider it to be useful and good policy to cut. The budget reflects nothing but politics. It swells or decreases depending on whether public opinion requires more or less from the state. What good would it do to show that the elimination of such and such a government department would lead to this or that major saving if the taxpayer himself prefers the department to the saving? There are reforms that have to be preceded by lengthy debates and a slow preparation of public opinion, and I do not see why I should go down a path in which it is clear that public opinion would not follow me. This very day the National Assembly took the decision to draw up the first budget of the Republic. It has a short and very limited time only in which to do this. With a view to setting out a reform that is immediately practicable, I have to turn away from [308] the general and philosophical considerations that I first thought of putting before the reader. I will limit myself to indicating them.
What postpones any radical financial reform to a far distant future is that in France people do not like freedom. They do not like feeling responsible for themselves and have no confidence in their own dynamism; they feel reassured only when they feel the pressure of government pulling strings on all sides, and it is precisely these pullings of strings that are so expensive.
If, for example, people had faith in the freedom of education, what would need to be done other than abolishing the public education budget?
If people really valued freedom of conscience, how would they achieve it other than by abolishing the budget for religious practice?20
If people understood that farming is improved by farmers and trade by traders, they would come to the conclusion that the budget for agriculture and commerce is superfluous and is something that the most advanced nations are careful not to inflict on themselves.
If, on a few points, like surveillance, the state needs to intervene with regard to education, religious practice, or commerce, an extra division in the ministry of the interior would be enough; we do not need three ministries to do this.
Thus, freedom is the first and most fertile source and spring of savings.
However, this spring is not made for our lips. Why? Solely because public opinion rejects it.21
Our children will therefore continue, under the monopoly of the university, to quench their thirst on false Greek and Roman ideas, to be imbued [309] with the warlike and revolutionary spirit of Latin authors, to scan the licentious verses of Horace, and to become unsuited to modern life in society. We will continue not to be free and as a result to pay for our servitude, since peoples can be held in servitude only at great expense.
We will continue to see farming and commerce languish and succumb under the yoke of our restrictive laws and, what is more, pay the cost of this torpor, for all the hindrances, regulations, and useless formalities can be carried out only by agents of government enforcement, and the agents of the state can live only through the budget.
And, it must be repeated, the harm is without a remedy that can currently be applied, since public opinion attributes to oppression all the intellectual and industrial development that this oppression has not succeeded in stifling.
An idea that is as strange as it is disastrous has taken hold of people’s minds. When it is a question of politics, people assume that the social engine, [310] if I can call it this, is in accordance with individual interest and opinion. We cling to Rousseau’s axiom, “The general will cannot err.” And on this basis, we decree universal suffrage with enthusiasm.
However, from all other points of view, we adopt exactly the opposite hypothesis. We do not accept that the driving force of progress lies in individuality, in its natural yearning for well-being, a yearning that is increasingly [311] enlightened by intelligence and guided by experience. No. We start off from the concept that mankind is divided into two: first, there are individuals who are inert and deprived of any dynamism or stimulus to progress or who obey depraved impulses which, left to themselves, reduce them to absolute evil; and second, there is a collective being, a common force, the government in short, to which is attributed inborn knowledge, a natural passion for good, and the mission to change the direction of individual tendencies. We assume that, if they were free, men would avoid all forms of education, religion, or production or, what is worse, that they would seek out education to attain error, religion to end up in atheism, and work to consummate their ruin. This being so, it is necessary for individuals to be subject to the regulatory action of the collective being, which, however, is none other than the coming together of these individuals themselves. Well, I ask you, if the natural inclinations of all the fractions tend toward evil, how will the natural inclinations of the whole tend toward good? If all the innate forces of man are directed toward nothingness, on what will the government, made up of men, take its point of support in order to change this direction?22
Be that as it may, as long as this strange theory remains in force, we will have to give up freedom and the convenient economies that it brings. We ought to pay for our chains when we love them, given that the state never gives us anything for nothing, not even irons.
The budget is not only the whole of politics, it is also in many respects the moral code of the people. It is the mirror in which, like Renaud, we might see the image and punishment of our preconceived ideas, our vices, and our wild pretensions. Here again, there are torrents of wrong expenditure that we are reduced to leaving to run, since they are caused by leanings which we are not ready to abandon; what would be more unreal than to wish to neutralize an effect while the cause continues to exist? I will mention, among other things, what I do not fear to call, even if the word sounds harsh, the spirit of begging, which has spread to all classes, the rich as much as the poor.23
[312]Certainly, in the circle of private relations, the French character does not fear comparison with regard to independence and pride. God forbid that I should cast a slur on my own country and even less that I should calumniate it! However, I do not know how it has happened that the same men who, even when pressed by distress, would blush to hold out a hand to their fellow men, lose all their scruples when the state intervenes and averts the gaze of their consciences from the contemptibility of such action. As soon as the request is not addressed to individual largesse, as soon as the state is the intermediary of the work, it appears that the dignity of the supplicant is spared, that begging is no longer shameful nor plunder an injustice. Farmers, manufacturers, traders, shipowners, artists, singers, dancers, men of letters, civil servants of all sorts, entrepreneurs, suppliers, or bankers, everyone in France wants something, and everyone expects the budget to provide. And soon the whole nation en masse has joined in. One person wants positions, another pensions, a third premiums, a fourth subsidies, a fifth inducements, a sixth restrictions, a seventh credit, and an eighth work. The whole of society is rising up to snatch a share of the budget in one form or another, and in its Californian fever it forgets that the budget is not a Sacramento where nature has deposited gold; the budget contains only what this mendicant society has itself put into it. Society forgets that the generosity of the government can never equal its avidity since, on the basis of this largesse, it has to keep back enough to pay for the twin services of tax collection and distribution.
In order to give these rather abject arrangements the authority and appearance of regularity, they have been attached to what is known as the principle of solidarity, a word that, used in this way, means nothing other than the effort of all the citizens to despoil each other through the costly intervention of the state. However, it can be understood that once the spirit of mendacity becomes systematized and almost an administrative science, imagination knows no bounds with regard to ruinous institutions.
But, I agree, we can do nothing at the moment in this respect and I end with this question: When the spirit of begging is taken to the point at which [313] it incites the entire nation to plunder the budget, do people not think that it compromises political security even more than public resources?
For the same reason, another considerable saving is still insuperably forbidden to us. I refer to Algeria. We have to yield and pay until the nation has understood that to transport one hundred men to a colony and at the same time transport ten times the capital that would maintain them in France is to relieve nobody and to tax everyone.
Let us therefore seek our means of salvation elsewhere.
The reader will acknowledge that, for a utopian, I am easy to deal with when it comes to retrenchment. There are many more and even better examples that I could mention. Restrictions to our most precious freedoms, the mania for seeking special treatment, an infatuation with a disastrous conquest: in all this I have given way to public opinion. Let it now allow me to take my revenge and to be slightly radical with regard to foreign policy.
For finally, if public opinion intends to close the door to any reform, if it has decided in advance to keep everything that exists and to allow for no change whatever in anything that relates to our expenditure, my whole argument will crumble and all financial plans will be powerless; all that remains to us is to leave the people to bow down under the weight of taxes and walk with lowered heads toward bankruptcy, revolution, disorganization, and social conflict.
In talking about our foreign policy, I will start by clearly establishing the following two proposals, outside of which I make so bold as to say there is no salvation.
- 1. The recourse to brute force is not necessary and damages the influence of France.
- 2. The recourse to brute force is not necessary and damages our internal and external security.
As a consequence of these two proposals there arises a third, which is:
We have to disarm on land and sea as quickly as possible.
False patriots! Enjoy yourselves to the full. There was a day on which you called me a traitor because I demanded freedom; what will happen now that I am invoking peace?24
Here again, public opinion is an obstacle to the first item. It has been saturated [314] by the following words: national greatness, power, influence, preponderance, and dominance. France is repeatedly told that she must not retreat from the rank that she occupies among the nations; her pride having been addressed, it is now time to turn to her interest. She is told that she must show evidence of strength to support useful negotiations, that the French flag must be displayed on every ocean to protect our trade and control distant markets.
What is all of that? An inflated balloon that a pinprick will be enough to deflate.
Where is influence today? Is it at the mouths of cannon or the points of bayonets? No, it is in ideas, institutions, and the sight of their success.
Peoples affect each other through the arts, literature, philosophy, journalism, trading transactions, and above all by example, and if they also act on occasion through constraint and threats, I cannot believe that this type of influence is likely to develop the principles that encourage humanity to progress.
The rebirth of literature and the arts in Italy, the revolution of 1688 in England, and the Declaration of Independence in the United States have doubtless contributed to the outburst of generosity that enabled our fathers to accomplish such great things in 1789. In all this, where do we see the hand of brute force?
People say: “The triumph of French arms at the turn of this century has broadcast our ideas everywhere and left the imprint of our politics on the entire surface of Europe.”
But do we know, can we know what would have happened in other circumstances? If France had not been attacked, if the revolution pushed to the brink by resistance had not slipped into a bloodbath, if it had not ended up in military despotism, if, instead of grieving, terrifying, and disrupting Europe, it had shown it the sublime sight of a great people peacefully accomplishing its destiny, with rational and beneficial institutions ensuring the good fortune of its citizens, is there anyone who would assert that an example like this would not have aroused the ardor of the oppressed and weakened the aversions of oppressors in our vicinity? Is there anyone who would say that the triumph of democracy in Europe would not now be further advanced? Let us calculate therefore all the waste of time, just ideas, wealth, and genuine force that these major wars have cost democracy and take account of the doubts they have raised for a quarter of a century about popular rights and about political truth!
[315]And then, how is it that there is not enough impartiality in the depths of our national conscience to understand how much our pretensions to impose an idea by force wound the hearts of our brothers abroad? What! We, the most sensitive people in Europe, we who, rightly, would not allow the intervention of an English regiment even if it were to erect a statue to freedom on the soil of our country and teach us social perfection itself! When we all, up to the old rubble of Koblenz,25 are in agreement on this point, that we would need to unite to break the grip of the foreign hand that comes bearing arms to interfere in our sorry debates, it is we who constantly have this irritating word on our lips: preponderance, and we do not know how to show freedom to our brothers other than with a sword in our hand aimed at their breasts! How have we come to imagine that the human heart is not the same everywhere, that it does not everywhere have the same pride or the same horror of dependence?
But last, where is this illiberal preponderance that we pursue so blindly and, in my view, with such great injustice, and have we ever seized hold of it? I can see the efforts clearly but not the results. I can see clearly that for a long time we have had a huge army and naval power that crush the people, ruin workers, generate disaffection, and drive us to bankruptcy. They threaten us with terrible calamities on which the very eyes of imagination tremble to gaze. I see all of this, but I cannot see preponderance anywhere, and if we have any weight in the destiny of Europe it is not through brute force but in spite of it. Proud of our prodigious military state, we have quarreled with the United States26 and we yielded; we have had arguments relating to Egypt and we yielded; from year to year we have made promises to Poland and Italy and not kept them. Why? Because the deployment of our forces has provoked a similar deployment throughout Europe. Once this happened, we could no longer doubt that the slightest combat concerning the most futile cause might threaten to take on the proportions of a world war, and [316] humanity as well as prudence has enjoined statesmen to decline any such responsibility.
What is remarkable and very instructive is that the people who have pushed this pretentious and cantankerous policy the furthest, the English, who have led us on by their example and perhaps made it a hard necessity for us, have reaped the same disappointments from it. No nation has gone so far as they in laying exclusive claim to regulate the balance of power in Europe, and this balance has been compromised ten times without their moving. The English arrogated to themselves the monopoly of colonies, and we have taken Algiers and the Marquise Islands without their moving. It is true that in this they may have been suspected of having, with apparent ill humor but secret joy, seen us attach two balls and chains to our feet. They claimed to be the owners of Oregon and the patron of Texas, and the United States have taken Oregon, Texas, and part of Mexico to cap it all, without their reacting. All this proves to us that, while the minds of governments are full of war, those of the governed are full of peace, and as for me, I do not see why we should have carried out a democratic revolution if not to ensure the triumph of a spirit of democracy, the working democracy which indeed pays the costs of a military system but can only ever draw from it ruin, danger, and oppression.
I therefore believe that the time has come when the entire genius of the French Revolution must come together, make its presence felt, and glorify itself solemnly through one of these acts of greatness, loyalty, progress, self-belief, and confidence in its strength, on the likes of which the sun has never shone. I believe that the time has come when France should resolutely declare that it sees the solidarity of peoples in the linking of their interests and the communication of their ideas and not in the interjection of brute force. And to give this declaration irresistible weight—for what is a mere manifesto, however eloquent it is?—I believe that the time has come for it to dissolve this brute force itself.
If our beloved and glorious country took the initiative in Europe of carrying out this revolution, what would its consequences be?
First of all, to enter into my subject, here at one fell swoop our finances would be in balance. Here is the first part of my reform immediately put into practice. Taxes would be relieved. Work, confidence, well-being, credit, and consumption would reach down to the masses. The republic would be loved, admired, and consolidated through the strength given to institutions [317] by public support. The threatening ghost of bankruptcy would be banished from people’s thoughts. Political upheavals would be a thing of the past. At last, France would be happy and glorious among nations, with the irresistible force of her example shining all around her.
Not only would the achievement of the democratic task inflame hearts abroad at the sight of this spectacle, but the spectacle itself would also certainly make that achievement easier. Elsewhere, as in our country, it is difficult to make people love revolutions that result in new taxes. Elsewhere, as in our country, people feel the need to break out of this circle. Our threatening attitude is, for foreign governments, a continuing reason or pretext for extracting money from their people and for raising a soldiery. How much easier would the work of regeneration be made all over Europe if it could be accomplished under the influence of tax reforms, which are fundamentally questions of approval and disapproval and questions of life and death for new institutions!
What are the objections to this?
National dignity. I have already indicated the reply to this. Is it to benefit their dignity that France and England, after being crushed by taxes to finance their military might, have always refused to do what they have announced they would? In this manner of understanding national dignity, there is a trace of our Roman education. At the time when peoples lived from plunder, it was important for them to inspire terror far and wide at the sight of their mighty armies. Is this also true for those who base their progress on work? The American people are reproached for a lack of dignity. If this is true, it is at least not so in American foreign policy, to which a tradition of peace and nonintervention gives such an imposing character of justice and grandeur.
Everyone at home, everyone for himself is the policy of selfishness, that is what people will say. A terrible objection if it had any common sense. Yes, everyone at home, when it comes to brute force, but let the influence of moral strength, intellectual and economic, emanating from each national center freely mingle and their contact give out light and fraternity for the benefit of the human race. It is very strange that we are accused of selfishness, we who always support expansion against restriction. Our code is this: “The least possible contact between governments, the most contact possible between peoples.” Why? Because contact between governments compromises peace, whereas contact between peoples guarantees it.
Security abroad. Yes, I agree that there is an interlocutory question to be [318] resolved. Are we or are we not threatened with invasion? There are some who sincerely believe that there is danger. Other kings, they say, are too interested in extinguishing the revolutionary flame in France not to flood it with their soldiers if France disarms. Those who think this way are right to demand that our forces be maintained. However, they have to accept the consequences. If we maintain our forces, we cannot reduce our expenditure significantly and we should not reduce taxes; it would even be our duty to increase them, since budgets are settled in deficit each year. If we increase our taxes there is one thing of which we are not sure, and that is that we will increase our revenue; one thing, however, on which there is no possible doubt is that we will generate disaffection, hatred, and resistance in this country, and we will have ensured security abroad only at the expense of security at home.
For my part, I would not hesitate to vote in favor of disarmament, since I do not believe there will be invasions. Where will they come from? Spain? Italy? Prussia? Austria? That is impossible. There remain England and Russia. England! She has already tried the experiment, and twenty-two billion of debt on which workers are still paying the interest is a lesson that cannot be lost. Russia! That is just an illusion. Contact with France is not what she is seeking but rather what she is avoiding. And if Emperor Nicholas thought of sending two hundred thousand Muscovites to us, I sincerely believe that what it would be best for us to do would be to welcome them, have them taste the sweetness of our wines, show them our streets, our shops, our museums, the happiness of our people, and the gentleness and equitableness of our penal laws, following which we would say to them: “Retrace your path to your steppes as quickly as possible and tell your fellow men what you have seen.”
Protection for trade. People say, “Do we not need a powerful navy to open out new routes for our trade and control distant markets?” Truly the ways of government toward trade are strange. They start by hindering it, hampering it, restricting it, and stifling it at huge expense. Then if a fraction of it escapes, that same government becomes deeply attached to such few crumbs as have succeeded in passing through the nets of the customs service. We want to protect traders, they say, and to do this we will seize 250 million from the public in order to cover the oceans with ships and cannon. But first of all, 99 percent of French trade is carried out with countries in which our flag has never appeared nor will ever appear. Have we got trading posts in England, the United States, Belgium, Spain, the Zollverein, or Russia? This [319] must therefore concern Mayotte and Nosibé;27 that is to say, more is being taken away from us in taxes in francs than we are receiving in centimes through this trade.
And then, what is controlling the markets? Just one thing: low prices. Send products that cost five sous more than similar products from England or Switzerland anywhere you like and ships and cannon will not ensure that you sell them. Send products that cost five sous less there and you will not need cannon or ships to sell them. Do we not know that Switzerland, which does not have a single boat, unless there are some on its lakes, has even ousted from Gibraltar some English fabrics, in spite of the guard that is on watch at its gates? If, therefore, low prices are the true protectors of trade, how does our government go about achieving them? First of all, it raises the cost of raw materials, all tools of the trade, and all consumer products through customs duties; then, to compensate, it burdens us with taxes on the pretext of sending its navy to seek outlets. This is barbarism, the most barbaric barbarism, and it will not be long before people say: “The French in the nineteenth century had very strange trading systems; they ought at least to have refrained from considering themselves to be in the century of enlightenment.”
Balance of power in Europe. We need an army to keep a watch on the balance of power in Europe. The English say the same, and balance becomes what the wind of revolution makes it. The subject is too wide-ranging for me to tackle it here. I will say just a little about it. “Let us mistrust metaphor,” said Paul-Louis,28 and he was very right. Here it is, as presented to us on three occasions in the form of balances. First of all, we have the balance of the European powers, then the balance of powers, and finally the balance of trade. Volumes would be needed to list the evils that have resulted from these alleged balances, and I am just writing an article.
Internal security. The worst enemy of logic, after metaphor, is the vicious circle. Well, here we are encountering one vicious in the highest degree. “Let us crush the taxpayers in order to have a great army, and then let us have a great army to contain the taxpayers.” Is this not the position we are in? What internal security can we expect from a financial system whose effect is to generate general disaffection and whose result is bankruptcy and its [320] political consequences? I myself believe that if we allowed the workers to breathe, if they had the feeling that all that could be done for them was being done, the disruptors of public peace would have very few grounds for disturbance at their disposal. Certainly the National Guard, the police, and the gendarmerie would be enough to contain them. And last, we have to take account of the terrors that are specific to the age in which we are living. They are very natural and very justified. Let us strike a bargain with them and allocate two hundred thousand men to them until times improve. You can see that my devotion to my point of view does not make me either absolutist or stubborn.
Let us now sum up the situation.
We have formulated our program thus: “reduce taxes—reduce expenditure in a greater proportion.”
This is a program that is bound to lead to balance, not via the path of distress, but via that of general prosperity.
In the initial part of this article, we have proposed to abolish various taxes, thus involving a loss of one hundred million in revenue, compared with the budget presented by the cabinet. Our program will therefore be fulfilled if the preceding considerations result in a reduction of expenditure in excess of a hundred million.
However, apart from the cuts that would be manageable in various services if only we had a little faith in freedom, cuts that I am not requesting out of respect for a misguided public opinion, we have the following items:
1. The costs of collection. As soon as indirect taxes are reduced, the incitement to fraud will be blunted. Fewer hindrances will be needed, fewer annoying formalities, less inquisitorial surveillance, in a word, fewer employees. What can be done in this respect just in the Customs Service alone is huge—let us say, ten million.
2. The administrative costs of criminal justice. In the entire physical universe, there are no two facts that are more closely connected than destitution and crime. If the effect of the implementation of our plan has the necessary result of increasing the well-being and work of the people, it is inevitable that the costs of pursuing, repressing, and punishing miscreants will be reduced.—For the record.
3. Assistance. The same must be said for assistance, which should decrease because of the increase in well-being.—For the record.
4. Foreign affairs. The policy of nonintervention, the one our fathers acclaimed [321] in 1789, the one that Lamartine would have inaugurated were it not for the pressure of circumstances beyond his control, the one that Cavaignac would have been proud to carry out, this policy leads to the abolition of all the embassies. This is little from the financial point of view. It is a great deal from the political and moral point of view.—For the record.
5. The army. We have allowed two hundred thousand men for the contingencies of the moment. That makes two hundred million. Let us add fifty million for unforeseen events, withdrawals, payments for being on call, etc. Compared with the official budget, the savings are one hundred million.
6. The navy. One hundred thirty million are being requested. Let us allow eighty million and return fifty million to the taxpayers. Trade will be all the more prosperous.
7. Public works. I am not a great partisan, I admit, of savings whose result is the slumbering or death of committed capital. However, we must bow to necessity. We are being asked for 194 million. Let us remove thirty million.
Without much effort, we will thus obtain, in round figures, two hundred million of savings in expenditure, against one hundred million in revenue. We are thus on the path to balance, and my task is fulfilled.
That of the cabinet and the National Assembly, however, is just beginning. And here, in closing, I will spell out my entire thinking.
I believe that the proposed plan, or any other based on the same principles, can on its own save the Republic, the country, and society. All the parts of this plan are linked together. If you take only the first, to reduce taxes, you will be advancing toward revolution through bankruptcy. If you take just the second, to reduce expenditure, you will be advancing toward revolution through destitution. By adopting the plan in its entirety, you will simultaneously avoid bankruptcy, destitution, and revolutions, and on top of this, you will do the people good. It therefore forms a complete system, which has to stand or fall in its entirety.
However, I fear that a unitary and methodical plan cannot spring from nine hundred brains. Nine hundred projects may well emerge, which will clash with each other, but not one project that will triumph.
In spite of the goodwill of the National Assembly, the opportunity will be missed and the country lost if the cabinet does not take the initiative vigorously.
However, the cabinet is rejecting this initiative. They presented their budget, which does nothing for the taxpayer and leads to a frightful deficit. [322] They then said: “We do not have to issue an overall view, and we will discuss the details when the time comes.” In other words, “We are handing over the destiny of France to chance or rather to probabilities that are as terrifying as they are certain.”
And why is this when the cabinet is made up of competent men, patriots and financiers? It is doubtful whether any other government could have accomplished the work of common salvation better.
They are not even trying. Why? Because they have entered office with a preconceived idea. A preconceived idea! I should have placed you, as the scourge of all reasoning and conduct, far ahead of the metaphor and the vicious circle!
The government has said to itself, “We cannot do anything with this Assembly, since we will not have a majority!”
I will not examine all the disastrous consequences of this preconceived idea here.
When it is believed that an Assembly is an obstacle, the wish to dissolve it is very close.
When one wishes to dissolve an Assembly, one is very close to taking steps to achieve this purpose.
In this way, great efforts have been made to do harm just at the time when it was so urgent to devote them to doing good.
Time and strength have been worn out in a deplorable conflict. And, I say this with my hand on my heart, in this conflict the cabinet was in the wrong.
For after all, to base their action or rather their inertia on the premise “We will not have a majority,” they needed at least to put forward something useful and then wait for a refusal to cooperate.
The president of the Republic traced a wiser path when he said on the day of his installation, “I have no reason to believe that I will not agree with the National Assembly.”
On what, therefore, did the cabinet base themselves when they set the point of departure of their policy in an opposing direction in advance? On the fact that the National Assembly had shown sympathy for the candidature of General Cavaignac.
However, the cabinet members have thus not understood that there is one thing that the Assembly places a hundred and a thousand times above General Cavaignac! That is the will of the people, expressed through universal suffrage, by virtue of a constitution formulated by the will of the people itself.
[323]For my part, I say that, to express its respect for the will of the people and the constitution, our twin anchors of salvation, the Assembly might have been easier with Bonaparte than with Cavaignac himself.
Yes, if the government, instead of starting by promoting the conflict, had come to the Assembly to say, “The election of 20 December29 puts an end to the period of agitation of our revolution, and now let us concentrate in concert on the good of the people and administrative and financial reform,” I say with certainty that the Assembly would have followed them enthusiastically since it has a passion for good and cannot have any other.
Now the opportunity has been lost, and if we do not secure its rebirth, woe to our finances and woe to the country for centuries to come.
Well then! I believe that if each person forgets his complaints and represses his bitterness, France can still be saved.
Ministers of the Republic, do not say: “We will act later; we will look for reforms with another Assembly.” Do not make such statements, for France is on the brink of an abyss. She does not have the time to wait for you.
A government frozen, made rigid by inertia! That has never been seen before. And what a time you have chosen to present us with this sight! It is true that the country—ruined, wounded, and bruised—does not blame you for its suffering. All its prejudices are turned against the National Assembly; this is certainly a circumstance that is as convenient as it is rare for a cabinet. But do you not know that any false prejudice is fleeting? If, through a vigorous initiative, you had formally warned the Assembly and it refused to follow you, you would have been justified and the country would have been right. But you did not do this. Sooner or later, its eyes will inevitably be opened, and if you continue to put nothing forward, try nothing, and direct nothing and later the state of our finances becomes irreparable, the prejudice of the day may well absolve you, but history will never absolve you.
It has now been decided that the National Assembly will produce the budget. But will an assembly of nine hundred members, left to its own devices, be able to accomplish such a complex work, one that requires such a high degree of agreement between all its parts and components? From the parliamentary tumult there may well emerge a few fumblings, impulses, and aspirations; a financial plan will not emerge.
This at least is my conviction. If it enters the mind of the cabinet to leave the reins loose at the mercy of chance, reins that have assuredly not been entrusted [324] to it for this purpose, if its members are resolved to remain impassive and indifferent spectators of the vain efforts of the Assembly, the Assembly should refrain from undertaking a work that it cannot accomplish alone and should decline any responsibility for a situation that it has not caused.
But this will not happen. No, France will not have to go through this disaster too. The cabinet will take the initiative incumbent on it energetically, with no mental reservations and in a spirit of selflessness. It will present a plan for financial reform based on this twin principle: reduce taxes—reduce expenditures in an even greater proportion. And the Assembly will vote for it with enthusiasm, without dragging matters out and becoming bogged down in the details.
To relieve the people, make the Republic loved, base security on popular approval, make good the deficit, raise confidence, breathe new life into work, restore credit, diminish deprivation, reassure Europe, bring about justice, freedom, and peace, and offer the world the sight of a great people who have never been better governed than when they are governed by themselves: is there nothing in this to awaken the noble ambition of a government and arouse the soul of the man who carries the heritage of the name Napoléon! A heritage that, in spite of the glory surrounding it, has two jewels that shine by their absence, peace and freedom!
(Paillottet’s note) A pamphlet published in February 1849. One month earlier in Le Journal des débats, the author had written an article that we are copying at the end of Peace and Freedom because it is on the same subject.
On the very day of his election as president of the Republic, Louis-Napoléon Bonaparte appointed a cabinet. It was headed by Odilon Barrot and included a number of outstanding personalities, among them two well-known liberals, Hyppolite Passy (finance) and Léon Faucher (public works and the interior).
There is a misprint in Paillottet’s edition, where “plan” is printed as “pain” (bread). We have checked it against the original pamphlet, “Paix et liberté ou le budget républicain” (Paris: Guillaumin, 1849), p. 6.
(Paillottet’s note) On the political views of the author, see in vol. 1 his articles and political manifestos published on the occasion of the elections (OC, vol. 1, p. 506, “Profession de foi électorale de 1848,” and p. 507, “Profession de foi électorale de 1849.”)
Revolution of 1848.
After the revolution of 1848, there were a number of claimants to ruling France: on the royalist side was the grandson of Charles X, the duc de Bordeaux, who later become comte de Chambord; and the grandson of Louis-Philippe, comte de Paris. Then, of course, there was also Louis-Napoléon Bonaparte, the nephew of Napoléon Bonaparte, who would eventually become emperor in 1851.
Aeolus is a Greek mythical figure who is mentioned in Homer’s Odyssey as the guardian of the winds. Aeolus gives the hero Odysseus the favorable winds he will need in order to sail safely back to Ithaca. He also gives Odysseus a tightly sealed leather bag containing “the adverse winds,” which would hinder his journey.
(Paillottet’s note) See the pamphlet, The State, vol. 4, page 327. (OC, vol. 4, p. 327, “L’État.”) [See also “The State,” p. 93 in this volume.]
See the entry for “La Montagne” in the Glossary of Subjects and Terms.
Here and on the following pages, Bastiat describes, then justifies through the English experience, the phenomenon known today as the Laffer Curve. The idea behind the so-called Laffer Curve (named after the economist Arthur Laffer) is that a cut in tax rates will lead to greater economic output, which over time increases the overall size of the tax base.
(Bastiat’s note) We have got [reached] the bounds of profitable taxation. (Peel) [This note is in English in the original.]
(Bastiat’s note) I say mine to keep things short, but I must not pose as its inventor. The editor in chief of La Presse has published several times the basic idea that I am echoing here. What is more, he has produced its application successfully. Suum cuique [“to each his own”].
“After this, therefore because of this.”
Railway mania refers to an investment bubble in the mid 1840s for the building of railways in England. The Bank of England lowered interest rates, thus stimulating a boom in railway investment by private companies. Hundreds of acts of Parliament were passed authorizing such companies to build new railway lines. When the Bank of England raised interest rates in late 1845, the speculative nature and economic unsoundness of these investments were exposed, which led to a crash in the market in 1846.
Many cities, bridges, and rivers in the medieval and early-modern period imposed tolls, or péage, on travelers and the goods they were transporting for sale. By the eighteenth century the tolls had became so onerous that they impeded the free flow of goods within a state like France. The physiocrats advocated their abolition as a means of creating free trade, and this was partially achieved during the French Revolution as part of the policy of rationalizing and centralizing the nation state. Bastiat is referring here to those local and city tolls that still remained.
Bastiat is probably making a reference to the novel The Life and Opinions of Tristram Shandy, by Laurence Sterne, published in 1759.
(Paillottet’s note) See the chapter titled “Expensive, Cheap” in vol. 4, p. 163, Economic Sophisms, second series. (OC, vol. 4, p. 163, “Cherté, bon marché.”)
(Paillottet’s note) In the pamphlet titled Plunder and Law [see “Plunder and Law,” p. 266 in this volume], we have seen that the author was not slow to acknowledge how far he was mistaken in imagining that the protectionists had become reasonable. However, it is true that, at the start of 1849, they showed themselves to be much more amenable than they were one year later.
(Bastiat’s note) The treaty passed between our fathers and the clergy is an obstacle to this very welcome reform. Justice above all.
(Paillottet’s note) This blindness of public opinion saddened the author for a long time, and as soon as an attempt to consolidate the blindfold over the eyes of our fellow citizens came to his attention, he felt the need to combat it. However, in his retreat in Mugron, he lacked the means to publish his writing. The following letter, therefore, written by him many years ago has remained unpublished to the present day.
T.104 (undated) Letter to M. Saulnier, Editor of La Revue britannique (no date)
Editor of La Revue britannique
You have instilled transports of joy in all those who find the word economics absurd, ridiculous, unacceptable, bourgeois, and shift y. Le Journal des débats extols you, the president of the council quotes you, and the favors of government are waiting for you. However, what have you done, sir, to merit so much applause? You have established through figures (and everyone knows that figures never lie) that it costs the citizens of the United States more than the subjects of France to be governed. This gives rise to the rigorous consequence (rigorous for the people in effect) that it is absurd to wish to place limits on the lavishness of power in France.
But, sir, and I ask your pardon and that of the economic research centers, your figures, assuming they are correct, do not seem to me to be unfavorable to the American government.
In the first place, to establish that one government spends more than another does not give any information on their relative goodness. If one of them, for example, is administering a nascent nation that has all its roads to build, all its canals to dig out, all its towns to pave, and all its public establishments to create, it is natural that it spends more than one that has scarcely more to do than maintain its existing establishments. Well, you know as well as I do, sir, that spending that way is to save and capitalize. If it were done by a farmer, would you be confusing the investments that an initial establishment requires with his annual expenditure?
However, this major difference in situation leads, according to your figures, to an additional expenditure of only three francs for each citizen of the union. Is this excess genuine? No, according to your own data. This may surprise you, since you have set at thirty-six francs the contribution by each American and thirty-three francs that of each Frenchman. Well, 36 = 33 + 3 is good arithmetic.——Yes, but in political economy, thirty-three is oft en worth more than thirty-six. See for yourself. Money, in comparison with labor and goods, is not as valuable in the United States as it is in France. You yourself set a day’s pay at four francs fifty centimes in the United States and at one franc fifty centimes in France. The result, I believe, is that an American pays thirty-six francs with eight days’ work, whereas a Frenchman needs twenty-two days’ work to pay thirty-three francs. It is true that you say that people buy forced labor from each other in the United States for three francs and that consequently the price of a day’s work ought to be set at three francs there.——There are two answers to this. Forced labor is bought in France for one franc (for we also have forced labor, about which you do not speak) and then, if a day’s work in the United States is worth only three francs the Americans no longer pay thirty-six francs since, to reach this figure, you have raised to four francs fifty centimes all the days that these citizens devote to fulfilling their military obligations, their forced labor, their jury service, etc.
This is not the only subtle difference you have used to raise the annual contribution of each American to thirty-six francs.
You impute to the government of the United States expenses that it is not concerned with in the slightest. To justify this strange method of proceeding, you say that these expenses are no less borne by the citizens. But is it not a question of determining which are the voluntary expenses of the citizens and which are the expenditures of the government?
A government is instituted to fulfill certain functions. When it exceeds its attributions, it has to appeal to the citizens’ purses and thus reduce the portion of revenue that was freely at their disposition. It becomes simultaneously a plunderer and oppressor.
A nation that is wise enough to oblige its government to limit itself to guaranteeing security to each person and that spends only what is absolutely essential to this consumes the remainder of its revenue in accordance with its particular talents, its needs, and its inclinations.
But in a nation in which the government interferes in everything, nothing is spent by itself and for its own benefit, but it is spent by the government and for the government, and if the French public thinks as you do, sir, if it cares little that its wealth goes through the hands of functionaries, I do not lose the hope that one day we will all be lodged, fed, and clothed at the state’s expense. These are things that cost us something and, according to you, it is of little importance whether we procure them through taxation or through direct purchase. The importance that our ministers give this opinion convinces me that we will soon have clothes produced by them, just as we have priests, lawyers, teachers, doctors, horses, and tobacco of their fashioning.
(Paillottet’s note) See, in vol. 4, the pamphlet titled The Law, in particular the passage on pages 381 to 386. (OC, vol. 4, “La Loi,” pp. 381–86.) [See also “The Law,” p. 107 in this volume.]
(Paillottet’s note) Among the author’s manuscripts we find the following thought, which refers to the particular subject he is dealing with here:
“Why are our finances in a mess?”
“Because, for the representatives, there is nothing easier than to vote for an item of expenditure and nothing harder than to vote for an item of revenue.”
“If you prefer it, because salaries are very pleasant and taxes very hard.”
“I know another reason.”
“Everyone wants to live at the state’s expense, and we forget that the state lives at the expense of everyone.”
(Paillottet’s note) An allusion to the inept accusation made against the free traders that they had sold themselves to England.
German city to which some aristocrats had emigrated after 1790. They had tried to organize a counterrevolutionary army under the prince de Condé. See also the entry for “Bourbon, Louis Joseph de,” in the Glossary of Persons.
Some American vessels were seized irregularly between 1806 and 1812. In July 1831, the French government agreed to pay twenty-five million francs to the United States. In April 1834, the parliament had not yet ratified the agreement! Following a complaint by President Jackson and a mediation by Great Britain, a new agreement was signed in 1834.
Mayotte is part of French overseas territory and belongs to the Comoro Islands, off the northwest coast of Madagascar. Nosibé is a town on the northern side of Madagascar.
Paul-Louis Cornier.
A slight mistake: the election took place on 10 December.
T.275 "Comments at a Meeting of the Political Economy Society on Financial Reform" (10 Feb. 1849)↩
SourceT.275 (1849.02.10) Bastiat's comments on financial reform at a "Meeting of the Political Economy Society" (Séance de 10 fev. 1849). In "Chronique," JDE, T. 22, no. 95, 15 Feb. 1849, p. 338-39; also ASEP (1889), p. 73. Not in OC. [CW4]
Editor's IntroductionThis is the fourth record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
The records of this meeting just mention that Bastiat was present and did not record any specific comments he might have made. However it is interesting because it summarizes the view of the other members of the the PES and shows striking similarity of views with what Bastiat was trying to accomplish in the Chamber as Vice-President of the Finance Committee. We also get a sense of the variety of membership the PES had as many participants are mentioned by name, including a visit by the Ambassador of the United States to England (who is not named unfortunately).
TextSince the events of 29 January 1371 two things have preoccupied our minds: the setting of the date of the end of the National Assembly and financial reform.
Thank God we do not make policy and that we are excused from having to discuss the proposals of Rateau, 1372 Lanjuinais, 1373 Duplan, 1374 Péan, 1375 etc. We are only pleased that at least something has been decided. Temporary (decisions) are harmful in a time of crisis, and this is something neither the Provisional Government nor the Assembly have understood. At this moment the Constituant Assembly certainly could have voted according to the Constitution and its ad hoc laws, the majority of the organic laws, and the budget.
M. Garnier-Pagès 1376 promised us a normal and republican budget, that is to say, if we have understood him correctly, a slimmer and better organised budget. It is even understood, according to his successor, that he let it be known that he would call on the assistance of a Commission composed of competent men from all parties, to work on this important matter. But … , we are always stuck at the same position and have not advanced any further than we were in 1847. M. Billault 1377 and a few other Deputies who oppose the present Minister have attempted to turn financial reform into a "war machine" (une machine de guerre). They have demanded that the revenue budget be settled before that of expenditure, in order to tie the latter to the former - the exact opposite of standard practice. In calmer times, with a government which is established and a country which is peaceful, Billault's theory, which he has borrowed from the economists and from common sense, could have been supported with some benefit. Basically sound (in principle), it is according to us inopportune (at this moment), and M. Passy 1378 has not made the effort to counter his arguments which by the way have been put forward very vigorously. M. Billault's proposal however has been defeated by a majority of only seven votes.
Nevertheless, it has led to a considerable revival of interest (in financial reform) in the Assembly. The majority of those who voted a few months ago against Bauchart's amendment 1379 to reduce taxes under the (new) Constitution, are today fanatic supporters of financial reform. Except that, when one talks of reforming the tax on alcohol, or that of tariffs, or cutting military expences either of the army or the navy, or reducing spending on public works, they put back into the saddle all their bellicose, despotic, regulatory, and even communist prejudices. Some are driven by good intentions, others by the desire to please their electorates; but none of them by the desire to tighten their belts. Thus, a large number of Deputies will vote for the 1849 budget. Now, in order to adopt well-thought out and fruitful reforms we require more time than we have at our disposal. Above all, we need a "Peel" of our own 1380 of some kind (and we have no doubt that in this connection M. Passy or M. Faucher 1381 would be very suited to this task) to conceive, study, and coordinate a plan and to be able to get the majority to accept it. Well then! Neither the Chamber, nor public opinion, nor the Minister are prepared for discussions as important as these. Now one of two things will happen: either the Assembly will bring down a budget which is popular, disorganised, and insignificant, as it did in the adjusted 1848 budget; or, it will let itself be dragged into making badly conceived changes which any future Chamber will have to waste time in undoing.
Financial reform was the topic of conversation at the last meeting of the Economists, presided over by M. Horace Say 1382 and assisted by the Ambassador of the United States to England. Several members took the floor in this very interesting discussion. Messrs Howyn de Tranchère, 1383 Frédéric Bastiat, Wolowski, 1384 Representatives of the People, Renouard, 1385 councillor at the Cour de cassation, Dussard, 1386 ex-prefect of la Seine-Inférieure, Joseph Garnier, 1387 Anisson, 1388 Louis Leclerc, 1389 Du Puynode, 1390 etc. The general sentiment which was expressed was for prompt and radical reform. Differences of opinion were revealed only concerning matters of timing and related day-to-day politics. The majority at the meeting thought that repeated disarmament and customs reforms would provide the (financial) resources capable of balancing the new (tax) cuts, such as that of the tax on alcohol.
The question was taken up concerning the marked increase in the consumption of salt since the reduction in the salt tax that M. Biaise, 1391 Councilor in the Prefecture of the Department of La Seine, who was present at the meeting, raised. Several explanations were offered for this fact about which there will shortly be further discussion.
1371 Louis Napoléon was overwhelmingly elected the first President of the Second Republic on December 10-11, 1848 with 5.5 million votes out of 7.5 million or 74%. He appointed Odilon Barrot as head of his government on December 20 and one of their first legislative acts in the new year was a proposal by Jean-Pierre Lamotte-Rateau on January 12, 1849 to dissolve the Constituent Assembly immediately, and call for new elections for a Legislative Assembly to be held in March. The winding up of the Constituent Assembly would remove the power of the republicans and cement that of the Party of Order which had formed around Louis Napoléon.
1372 Jean-Pierre Lamotte-Rateau (1800-1887) was a lawyer, a member of the general Council of Bordeaux, and a conservative opponent of the restored Bourbon Monarchy during the 1820s. He was elected to the Constituent Assembly in April 1848 and voted with the conservatives. He is best known for introducing the "Rateau proposal" to the Chamber on January 12, 1849 after the election of Louis Napoléon as President the previous December to dissolve the Constituent Assembly immediately, and call for new elections for a Legislative Assembly to be held in March.
1373 Victor Ambroise, vicomte de Lanjuinais (1802-1869) was a lawyer, liberal politician representing la Loire-Inférieure, and friend of Alexis de Tocqueville. In the Second Republic he was the Secretary of the Finance Committee of which Bastiat was Vice-President. He supported Rateau's proposal and was later appointed Minister of Commerce and Agriculture in Odilon Barrot's government.
1374 Pierre Duplan (1806-1878) was elected a Deputy representing Cher during the Second Republic and voted with the moderate left.
1375 Émile Péan (1809-1871) was a journalist for the National during the July Monarchy and was Mayor of the 4th Arrondissement of Paris in February 1848. He was later elected Deputy representing Loiret between 1848-51 and voted with the moderate left.
1376 Louis-Antoine Pagès (Garnier-Pagès) (1803-1878) was a republican politician during the July Monarchy and became active in the political banquets campaign against Louis Philippe's government in 1847-48 which ultimately led to his overthrow in February 1848. He became part of the Provisional Government which replaced the July Monarchy. Steps he took early in the regime, as Minister of Finance, to stabilise the government's finances, such as restricting access to bank notes, a compulsory "patriotic loan", and the much hated "45 centimes tax" were never forgiven by the electorate.
1377 Adolphe Augustin Marie Billault (1805-1863) was lawyer and then a moderate liberal politician who represented la Loire-Inférieure. During the July Monarchy he served as Under-Secretary of State for Agriculture and Commerce in Thiers' second ministry. he served as a deputy in both the Constituent and Legislative Assemblies in the Second Republic.
1378 Hippolyte Passy.
1379 Alexandre Quentin Bauchart (1809-1887) was a magistrate, a member of the General Council of Aisne, and then elected representative of the Department of l'Aisne 1848-1851. He supported Louis Napoléon and was appointed a Councillor of State in January 1852.
1380 Sir Robert Peel (1788-1850). See the glossary on "Peel."
1381 Léon Faucher.
1382 Horace Say.
1383 See the glossary entry on "Hovyn deTranchère."
1384 Louis Wolowski.
1385 Augustin-Charles Renouard (1794-1878) was a lawyer, politician, and wrote on intellectual property rights. He was elected in 1831 to represent la Somme, was nominated to the Supreme Court in 1837, and made a peer of France in 1846. Renouard was also one of the vice-presidents of the Political Economy Society and became a member of the Academy of Moral and Political Sciences in 1861.
1386 Hippolyte Dussard (1798-1876) was a journalist, essayist, and economist. He edited the JDE 1843-45 and was a co-editor with Eugène Daire of the Works of Turgot for the Collection des Principaux Économistes published by Guillaumin. Dussard was also a businessman involved with the Paris to Rouen railway, and during the Second Republic he was appointed the prefect of la Seine-Inférieure and was elected to the Council of State.
1387 Joseph Garnier.
1388 Alexandre Anisson du Péron (1776-1852) was the Director of the Imperial Printing Service 1809-14 and then the Royal Printing Service 1815-23. He was a Deputy during the July Monarchy, President of the General Council of Puy-de-DIome in 1840, and was made of Peer of France in 1844. he was a founding member of the French Free trade Association and one of its Vice-Presidents.
1389 Louis Leclerc.
1390 Gustave du Puynode (1817-1898?) was a doctor of law and barrister at the Royal Court of Paris. He wrote articles and books on property rights, labour law, freedom of education, slavery in the French colonies, the history of economic thought, money and credit, and financial crises. Several of his books were published by Guillaumin and his articles appeared in the JDE and the DEP, most notably articles on "Le communisme", JDE, 1 April 1848, pp. 25-36; "De la centralisation," JDE , 15 July 1848, T. 20, pp. 409-18 and JDE , 1 August 1848, T. 21, pp. 16-24.; "Fermiers généraux," DEP, vol. 1, pp. 766-67; "Crédit public," DEP, vol. 1, pp. 508-25.
1391 We do not have any information about him.
T.310 "Speaks in a Discussion in the Assembly on Amending the Electoral Law" (26 Feb. 1849)↩
SourceT.310 [1849.02.26] "Speaks in a Discussion on Amending the Electoral Law". Short speech to the National Constituent Assembly, 26 Feb. 1849, CRANC, vol. 8, p. 264. Not in OC. CW4
Editor's IntroductionThis is the 9th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
As we will see here and in the next speech Bastiat gave in the Assembly for the Third reading of a bill to amend the electoral law (10-13 March 1849), and its accompanying pamphlet on "Parliamentary Conflicts of Interest" (March 1849), 1392 he was very interested in who could be elected to the Assembly, how they would be paid, and who could be appointed Ministers in the Government. He had written on this before the February Revolution in several pieces: a letter "To the Electors of the Department of Les Landes" (Nov. 1830), a paper "On the Influence on Liberty of the Eligibility of Deputies for Public Office" (c. 1840), a letter to the editor of La Sentinelle des Pyrénées (21 and 25 March, 1843), and "A Letter to M. Larnac, Deputy for Les Landes" (c. 1846). 1393
These issues were important ones which had to be resolved before the election of April 1849 for the new Legislative Assembly which would replace the Constituent Assembly which came to power in the election of April 1848. The new constitution of the Second Republic was debated throughout the summer and fall of 1848. Bastiat and the other economists had played a part in opposing the insertion of clauses dealing with "the right to a job" guaranteed by the State which the socialists wanted (see his "Letter to Garnier" above, pp. 000). The new electoral law under discussion in February and March 1849 would determine how ministerial government would function in the Legislative Assembly under President Louis Napoléon (elected December 1848) and his President of the Council of Ministers (Prime Minister) and Minister of Justice Odilon Barrot (appointed first on 20 December 1848 and then again on 2 June 1849 with a new Ministry).
The issues under discussion here concerned two matters. Firstly, whether or not public servants, magistrates, and military officers could be elected to the Chamber and still receive their government salaries, or should they be forced to resign their positions for the duration of their membership in the Chamber. Generally state employees were expected to resign their positions but different kinds of state employees were treated differently under the existing law. Civil servants and magistrates were permitted to return to the first available job at the level they had left before being elected, but this did not apply to government employed engineers and military officers. Bastiat in this speech wanted the law to apply equally to all state employees.
The second issue was whether or not elected Deputies should be appointed to the position of Ministers in the government. Bastiat took a hard line on this matter, arguing that they should not be allowed to do so, and this is the subjec of his second speech in March (below, pp. 000).
As a convinced supporter of the Republic and universal manhood suffrage 1394 Bastiat believed that every man had the right to stand for election, including those paid by the state as bureaucrats or military personnel, and that all elected representatives of the people should draw a salary for doing so so as not to privilege the wealthy. The only condition he wanted placed on the latter group was that their government positions and salaries should be "suspended" while they remained Representatives in order to make them truly independent of government influence. He did not think that those drawing a salary or other benefit from the state should be allowed to vote on matters which touched upon those salaries and benefits. He thought it was a serious "conflict of interest" (or "incompatibility" as the legislation phrased it) because individuals who were in the employ of the state (such as road engineers, customs officers, or professors in the state run university) could not be regarded as independent when it came to voting on cuts to state funding for road construction or the University, or reducing or eliminating tariffs. 1395 As he put it:
In this way, the civil servant will be removed from the influence of executive power; he will not be allowed promotion or dismissed from office. He will be made safe from the pushing and pulling between hope and fear. He will not be able to exercise his erstwhile functions or collect his payments for them. In a word, he will be a representative, and only a representative, throughout the duration of his mandate. His life in public service will, so to speak, be suspended and as though absorbed by his life in parliament. 1396
Concerning the converse problem, whether elected Deputies should be allowed to take up other paid and powerful positions in the Government such as Ministers or Ambassadorships, he was adamant that they should not, and this issue became the subject of an amendement he put forward and which is discussed in the following speech he gave on 13 March. Bastiat thought that the idea that Ministers could be appointed from among the elected Deputies was an "import" from the British Parliamentary tradition and was a key component which maintained the English "oligarchical class" (la classe oligarchique) in power, 1397 and was thus unsuitable for France. As soon as the inevitable jockeying for power began, ambitious Deputies would attempt to undermine and overthrow the existing government and install a new one with a new set of Ministers, namely themselves. Thus, he thought, Representatives lost their interest in those they were supposed to represent and instead began to focus on their own personal interests and ambitions as they began "climbing the greasy pole to power". 1398 Deputies, he thought, should not be allowed to "use the job of deputy as a stepping-stone to lucrative office." 1399 Hence, there should be "total exclusion" of all elected Deputies from higher paid positions within the government. 1400
Instead, the American republican experiment provided France with a better model, Bastiat believed. In the so-called American "spoils system" Ministers were appointed from talented citizens outside the Chamber and he goes into the reasons why he believes this in some detail in the March 10-13 speech and the accompanying pamphlet he wrote on "Parliamentary Conflicts of Interest" (March 1849).
Much of the procedural matters discussed in this and the later speech concern Articles 79, 80, and 81 and revolved around very technical matters regarding those groups who were banned or exempted from previous bans such as those on the clergy or on military personnel concurrently holding paid positions within the government, and whether or not those exemptions should be applied to other groups via various Amendments.
TextCitizen President: 1401 That is understood. I will read Article 79 with the new phrasing proposed by the Committee:
Art. 79. The paid government positions to which, with the exception of Art. 28 of the Constitution, the Members of the National Assembly can be appointed, during the life of the Legislature, by the Executive Power, are those which are listed in Article 77.
The Committee thinks that it should not have to remind (us) of the list which has (already) been drawn up; as a result the proposed amendments of this Article will not come up for discussion. I put Article 79 to the vote with this new phrasing.
(Article 79 was adopted.)
Citizen President: "Art. 80. The same exception applies to all extraordinary assignments or temporary military posts whether they be domestic or foreign (in nature)."
Here is the wording used by M. Bastiat:
Excepted are the extraordinary assignments and temporary military posts whether they be domestic or foreign (in nature).
Citizen Bastiat: Only if Article 79 has been voted (for)!
A Voice from the extreme left: No, it has not been voted for! (Yes! Yes!)
Citizen President: Article 79 has been put to the vote and (we have heard) arguments for and against it.
Citizen Bastiat: The amendment which I would like to submit to the Assembly was on Article 79. If this Article has been voted on it is clear that the only avenue left to me is to reintroduce it myself during the Third Reading. This amendment was so closely related to Article 79 that it had reached this conclusion, that representatives of the people could only ever be representatives, and could not be appointed by the executive power to any (other) position, and if, by chance, an exception was made, this exception would not be for a ministerial position, because, according to my point of view, the greatest scourge of representative government is to permit Deputies to serve as Ministers. Thus, the Assembly has to determine whether (or not) it has adopted Article 79. If it has, then I will give up the floor.
Several Voices: Yes it has. It has voted!
Citizen President: M. Frédéric Bastiat's amendment was attached to Article 80 which was expressed as follows:
The same exception applies to all extraordinary assignments or temporary military posts whether they be domestic or foreign (in nature).
Now here is M. Bastiat's amendment:
Excepted are the extraordinary assignments and temporary military posts whether they be domestic or foreign (in nature).
That is exactly the same as Article 80.
Citizen Bastiat: I refer the Assembly to Article 80.
(Article 80 was put to the vote and adopted.)
1392 "Parliamentary Conflicts of Interest" (March 1849), in CW2, pp. 366-400.
1393 "To the Electors of the Department of Les Landes" (Nov. 1830), in CW1 pp. 341-52; "On the Influence on Liberty of the Eligibility of Deputies for Public Office" (c. 1840) in CW1, pp. 459-63; a letter to the editor of La Sentinelle des Pyrénées (21 and 25 March, 1843) in CW1, pp. 452-54; and"A Letter to M. Larnac, Deputy for Les Landes" (c. 1846) in CW1, pp. 367-86.
1394 See "A Few Words about the Title of our Journal" (26 Feb, 1848), above, pp. 000.
1395 See his letter to the editor of La Sentinelle des Pyrénées (21 and 25 March, 1843) in CW1, pp. 452-54.
1396 "Parliamentary Conflicts of Interest" (March, 1849), CW2, p. 369.
1397 "Parliamentary Conflicts of Interest" (March, 1849), CW2, p. 382.
1398 "Parliamentary Conflicts of Interest" (1843), CW1, p. 452.
1399 "Parliamentary Conflicts of Interest" (March, 1849), CW2, p. 369.
1400 "Parliamentary Conflicts of Interest" (March, 1849), CW2, p. 368.
1401 Armand Marrast was President of the Constituent Assembly between 19 July 1848 and 26 May 1849 when the new Legislative Assembly was elected.
T.236 (1849.03) Parliamentary Conflicts of Interest↩
SourceT.236 (1849.03) Parliamentary Conflicts of Interest (Incompatibilités parlementaires). Written at the time of a debate in the Chamber in March 1849 and published as a pamphlet, Incompatibilités parlementaires (Parliamantary Conflicts of Interest) (Paris: Guillaumin, 1849). [OC5, pp. 518-61.] [CW2.19, pp. 366-400.]
Editor's NoteWe have translated the title of this pamphlet as “Parliamentary Conflicts of Interest” (and related occurrences of the word incompatibilités as “conflicts of interest”) instead of retaining the literal English translation, which presents some awkwardness. In the context of this pamphlet, Bastiat is referring to the matter of civil servants who have been elected to the Chamber of Deputies and whether or not they should continue to fulfill their work commitments to the state while they serve in the Chamber. Bastiat argued that it was “incompatible” for them to do both.]
TextCitizen Representatives,
I urge you to give some attention to this article.
“Is it a good thing to exclude certain categories of citizen from the National Assembly?”
[367]“Is it a good thing to make high political office seem dazzling in the eyes of deputies?”
These are the two questions that I will deal with now. The constitution itself has not raised more important ones.
However, a very strange thing has happened: one of these questions, the second one, was decided without discussion.
Should the government recruit in the Chamber? England says yes and is in trouble because of this. America says no and is thereby doing well. In’89 we adopted the American way of thinking; in 1814 we preferred the English way. Between authorities of this stature, there is, it would appear, good reason for caution. However, the National Assembly has plumped for the system of the restoration imported from England and has done this without discussion.
The author of this article had put forward an amendment. In the time he took to mount the steps of the rostrum, the question was decided. “I propose,” he said. “The Chamber has voted,” shouted the president. “What! Without allowing me to . . .” “The Chamber has voted.” “But nobody was aware of this!” “Consult the office; the Chamber has voted.”
Certainly on this occasion, the Assembly will not be reproached for being systematically dilatory!
What should we do? Grab the attention of the Assembly before the final vote. I am doing this in writing in the hope that a more-experienced voice will come to my assistance.
Besides, for the ordeal of a verbal discussion, the lungs of a stentor would be needed to address attentive hearers. Decidedly, the safest thing is to put it in writing.
Citizen deputies, from the depths of my soul and conscience, I believe that section 4 of the electoral law must be redrafted. As it is, it will lead to anarchy. There is still time, let us not bequeath this scourge to the country.
The issue of conflicts of interest raises two profoundly separate questions that have nevertheless oft en been confused.
Will the position of deputy in the National Assembly be open or closed to those whose careers are in the civil service?
Will a civil service career be open or closed to deputies of the people?
These are certainly two separate questions that have no connection with one another, so much so that solving one does not prejudice in any way the solution of the other. The position of deputy may be open to civil servants without the civil service being open to deputies and vice versa.
[368]The law that we are discussing is very severe with regard to the admission of civil servants to the Chamber and very tolerant with regard to the admission of deputies of the people to high political office. In the first case, I consider that it has let itself be drawn into base radicalism. On the other hand, in the second, it is not even prudent.
I will not hide the fact that, in this article, I have reached quite different conclusions.
To move from public office to the Chamber there should be no exclusion, but adequate precautions should be taken.
To move from the Chamber to public office there should be total exclusion.
Respect for universal suffrage! Those it elects people’s deputies should be representatives and remain such. No exclusion to entry but total exclusion to exit. That is the principle. We will see that this is in line with the public good.
My reply is yes, except that it is up to society to take adequate precautions.
I encounter an initial difficulty here, one that appears to place an insurmountable rejection in advance in the path of anything I might say. The constitution itself proclaims the principle of the conflict of interest between any paid civil service job and a mandate to represent the people. However, as the report says, it is not a question of eluding this principle but of applying it, since henceforth it will be fundamental.
I ask whether it is not being too subtle to get round the word service as used in the Constitution and say: “What it intends to exclude is not the person nor even the civil servant but the service and the danger that it might bring into the Legislative Assembly. Provided, therefore, that the service does not enter and remains outside, even if it is resumed at the end of the legislative term by the person appointed to it, the intention of the Constitution is upheld.”
The National Assembly has thus interpreted Article 283 of the Constitution with regard to the army, and since I must necessarily extend this interpretation [369] to all civil servants, I have reason to believe that I will be allowed not to be diverted by the rejection that the report is placing in my path.
What I am asking, in effect, is this: That any elector should be eligible. That electoral colleges may have themselves represented by anyone who has deserved their confidence. But if the choice of the electors falls upon a civil servant, it is the man and not the job that enters the Chamber. The civil servant will not, for all that, lose his previous rights and job titles. He will not be expected to make the sacrifice of a genuine property acquired through long and useful work. Society has only to make a few trivial demands and should be content with adequate safeguards. In this way, the civil servant will be removed from the influence of executive power; he will not be allowed promotion or dismissed from office. He will be made safe from the pushing and pulling between hope and fear. He will not be able to exercise his erstwhile functions or collect his payments for them. In a word, he will be a representative, and only a representative, throughout the duration of his mandate. His life in public service will, so to speak, be suspended and as though absorbed by his life in parliament. This is what was done for the military, through the distinction made between rank and actual function. Why should this not also be done for magistrates?
Let us note this clearly: conflict of interest, taken in the meaning of exclusion, is an idea that in the nature of things had to be put forward and popularized under the former regime.
At that time, no indemnity was given to deputies who were not civil servants, but they could use the job of deputy as a stepping-stone to lucrative office. On the other hand, civil servants elected as deputies continued to receive their salaries. To tell the truth, they were paid not as civil servants but as deputies, since they no longer fulfilled their duties, and if the minister was displeased with the way they voted, he could, by removing them from their position as deputies, deprive them of all their salary.
The results of a combination like this had to be and, indeed, were deplorable. On the one hand, candidates who were not civil servants were very rare in the majority of districts. The electors were free to choose, yes, but the extent of their choice did not exceed five or six people. The first condition of eligibility was considerable wealth.4 If a man who was merely prosperous [370] stood for election, he was rejected with some reason, since he was suspected of having ulterior motives, which were not forbidden by the charter.
On the other hand, civil service candidates came in droves. It was very simple. First, they were granted an indemnity. Second, the job of deputy was for them an assured means of rapid advancement.
When you think that the battle for portfolios, the inevitable consequence of the ease of access to ministries for deputies (a huge subject that I will deal with in the following paragraph), as I say, when you think that the battle for portfolios generated coalitions within parliament that were systematically organized to overthrow the cabinet, that the cabinet could resist only with the help of a majority that was equally systematic, compact, and devoted, it is easy to understand what this double facility given to men of position to become deputies, and for deputies to become men of position, would lead to.
The result had to be and was that the civil service departments were converted into a form of exploitation, the government absorbed the domain of private activity, our freedoms were lost, our finances were ruined, and corruption descended increasingly from high parliamentary levels to the lowest levels of the electorate.5
In circumstances like these, we should not be surprised that the nation becomes attached to the principle of conflict of interest as though it were a lifeline. Everyone remembers that the rallying cry of honest electors was, “No more civil servants in the Chamber!” And the manifesto of the candidates carried the words, “I promise not to accept either office or favors.”
However, has the February revolution changed nothing in this state of affairs, one that both explained and justified the current of public opinion?
First, we have universal suffrage, and obviously the influence of the government on the elections is going to be much weakened, if indeed it retains any at all.
Second, no government purpose will be served by its securing the election by preference of civil servants who are totally removed from its influence.
What is more, we have an equal salary paid to all the deputies, a circumstance which, just on its own, changes the situation completely.
In fact, we do not need to fear, as in the past, that there will be a lack of [371] candidates for election. We have more to fear from difficulties arising from having far too many to choose from. It will therefore be impossible for civil servants to overrun the Chamber. I add that they will have no incentive to do so, since the job of deputy will no longer be for them a means of achieving success. In former times, civil servants welcomed candidacy as a piece of luck. Today they can accept it only as a genuine sacrifice, at least from the point of view of their career.
Changes so profound in the respective situations of the two sets of people are also likely, I think, to change the view we had formed of conflict of interest, under the influence of quite different circumstances. I believe that we should envisage the real principle and common good, not in the light of the ancient charter but in that of the new constitution.
Conflict of interest as a synonym for exclusion has three major disadvantages:
1. First, it is a huge disadvantage to restrict the choices open to universal suffrage. Universal suffrage is a principle that is as jealous as it is absolute. When an entire population has enveloped a councillor of the Court of Appeal, for example, with esteem, respect, confidence, and admiration, when its members have faith in his enlightenment and virtues, do you think it will be easy to make them understand that they have the option to entrust to anyone they like other than this worthy magistrate the task of correcting their legislation?
2. It is no less exorbitant to attempt to deprive a complete class of citizens of their finest political right and the noblest reward of lengthy and loyal service, a reward given by electors exercising free choice. The question might almost be raised as to what extent the National Assembly has this right.
3. From the point of view of practical usefulness, it is blindingly obvious that the level of experience and enlightenment has to be very low in a chamber that is renewed every three years and from which all men who are highly experienced in public affairs are excluded. What! Here we have an assembly that has to deal with the navy and the army too, in which there is not a single naval or army officer! We have to deal too with civil and criminal legislation and in the Assembly there will not be a single magistrate!
It is true that army and naval officers are admitted, through a law that has nothing to do with the matter and for reasons that do not relate to the fundamentals of this question. But this itself is a fourth and serious disadvantage to be added to the other three. The people will not understand that [372] in a chamber in which laws are passed, the military is present and lawyers are absent just because in 1832 or 1834 a particular set of arrangements was introduced in the army. It will be said that such a shocking inequality should not be the result of an old and entirely contingent law. You were made responsible for drafting a comprehensive electoral law; this was worth doing and you ought not to bring a monstrous inconsistency into it under the cloak of an obscure article in the Military Code. Absolute incompatibility would have been better. It would at least have had the prestige of a principle.
A few words now on the precautions that I think society has the right to take with regard to civil servants who are elected as deputies.
People may try to get me to be inconsistent by saying: “Since you do not accept any limits to the choices open to universal suffrage, since you do not believe that a category of citizens can be deprived of their political rights, how can you accede to the idea that more-or less-restrictive precautions can be placed on some people while others are not subjected to them?”
These restrictions, it should be clearly noted, are limited to one thing: ensuring the independence and impartiality of the representative in the public interest and placing deputies who are civil servants on a totally equal footing with those who are not. When a magistrate accepts a legislative mandate, the law of the country should say to him, “Your parliamentary life is just beginning and, as long as it lasts, your judiciary life will be suspended.” What in this is excessive or contrary to right principle? When the function is interrupted de facto, why should it not also be by law, since this has the additional advantage that it protects the civil servant from all pernicious influences? I do not want him subject to promotion or dismissal by the executive power, since, if he were to be, this would not be for actions relating to the service that he is no longer engaged in but as a result of the way he votes. Now who could accede to the executive power’s rewarding or punishing votes? These safeguards are not arbitrary. Their aim is not to restrict the choices which go with universal suffrage or the political rights of one class of citizens, but on the contrary to make them universal, since without them we would necessarily face absolute conflict of interest.
A man who, in whatever degree, is part of the government hierarchy should straightforwardly accept that he is in a very different position from that of other citizens with regard to society, and notably so with respect to the subject before us.
The activities of the civil service and private industry have something in [373] common and something that differentiates them. What they have in common is that both satisfy social needs. The latter protects us from hunger, cold, illness, and ignorance, the former from war, unrest, injustice, and violence. These are all services rendered for payment.
This, however, is what is different. Each person is free to accept or refuse private services or to receive them to the extent that suits him and to think about how much they cost. I cannot force anyone to buy my pamphlets, read them, or pay the price for them that the publisher would charge if he had the power to do so.
But everything that concerns the departments of the civil service is regulated in advance by law. It is not I who judge how much security I will buy and how much I will pay for it. Civil servants give me as much as the law prescribes that they should and I pay for it as much as the law ordains that I should. My free will counts for nothing.
It is therefore essential to know who will be drafting this bill.
Since it is in the nature of man to sell for as high a price as possible as many goods as possible, and those of the poorest-possible quality, it might be thought that we would be governed horribly and expensively if those who had the privilege of selling government products also had the privilege of determining their quantity, quality, and price.6
For this reason, faced with that vast organization that we call the government and that, like all organized bodies, is constantly seeking to grow, the nation, as represented by its deputies, decides for itself on which matters, to what extent, and at what price it wants to be governed and administered.
If, to settle these things, the nation chooses individually those who govern, it is greatly to be feared that it will, within a short time, be administered to within an inch of its life until its funds run out.
So I understand why men driven to extremes have thought of saying to the nation, “I forbid you to have yourselves represented by civil servants.” This is absolute conflict of interest.
For my part, I am much inclined to say the same thing to the nation, but only as a piece of advice. I am not very certain of having the right to convert this advice into prohibition. Certainly, if universal suffrage is left free, this [374] means that it can make mistakes. Does it therefore follow that to anticipate its errors, we ought to deprive universal suffrage of its freedom?
However, what we do have the right to do, as those responsible for drafting an electoral law, is to ensure the independence of the civil servants that are elected as deputies and to put them on an equal footing with their colleagues, to protect them from the capriciousness of their superiors, and to regulate their position during their mandate insofar as this may be contrary to the public good.
This is the aim of the first part of my amendment.7
I think it reconciles everything.
It respects the rights of electors.
It respects the citizens’ rights of civil servants.
It eliminates the special interest that in former times incited civil servants to become deputies.
It restricts the number of those who will seek to be elected as deputies.
It ensures the independence of those elected.
It leaves rights intact while abolishing abuses.
It raises the level of experience and education in the Chamber.
In a word, it reconciles principles with usefulness.
However, if the rule of conflict of interest is not in force before the election, it certainly must be afterward. The two parts of my amendment stand together, and I would prefer a hundred times to see it rejected as a whole than to have half of it accepted.
At every period, when a question of parliamentary reform has arisen, people have felt the need to bar careers in the civil service to deputies.
This was based on the following reasoning, which is in fact highly conclusive: The people who are governed elect representatives to supervise, control, limit, and, if necessary, prosecute those who govern. In order to carry out this mission, they have to retain their full independence with regard to [375] the executive. If the executive were to enroll deputies in its ranks, the aim of the institution would miscarry. Such is the constitutional objection.
The moral objection is no less strong. What could be sadder than to see the deputies of the people betraying the confidence invested in them, one after the other, selling for their advancement both their votes and the interests of their constituents?
At first people hoped to reconcile everything through reelection.8 Experience has shown the ineffectiveness of this palliative measure.
Public opinion therefore became strongly attached to this second aspect of conflict of interest, and Article 28 of the constitution is nothing other than the manifestation of its triumph.
However, public opinion has also always considered that there should be one exception to conflict of interest, and that, while it is wise to forbid lesser jobs to deputies, this should not be so for ministries, embassies, and what is known as high political office.
Thus, in all the plans for parliamentary reform that were produced before February, in that of M. Gauguier as in that of M. de Rumilly and that of M. Thiers, while Article 1 always set out the principle boldly, Article 2 invariably produced the exception.
To tell the truth, I think that nobody has entertained the thought that it could possibly be otherwise.
And, since public opinion, right or wrong, always ends up carrying the day, Article 79 of the draft electoral law is nothing more than a second manifestation of its triumph.
This article states:
“Article 79. The salaried public offices to which, as exceptions to Article 28 of the Constitution, the members of the National Assembly may be called for as long as the law is in effect, following selection by the executive power, are those of:
- minister;
- undersecretary of state;
- senior commander of the National Guard of the Seine;
- attorney general of the Supreme Court of Appeal;
- attorney general of the Court of Appeal of Paris;
- prefect of the Seine.”
Public opinion does not change overnight. It is therefore with no hope of present success that I am addressing the National Assembly. It will not delete this article of the law. However, I am carrying out a duty, since I can see (and I only hope I am wrong!) that this article will cover our unfortunate country in ruins and debris.
I certainly do not have such faith in my own infallibility that I would trust my views when they are in opposition to those of the general public. May I therefore be allowed to shelter behind authorities who are not to be despised.
Ministers who are deputies! This is a very English import. It is from England, the cradle of representative government, that this irrational and monstrous combination has come. However, it should be noted that in England the entire representative regime is just an ingenious method of putting and retaining power in the hands of a few parliamentary families. In the spirit of the British constitution, it would have been absurd to shut off access to power to members of Parliament, since this constitution has the precise objective of delivering this to them. And we will soon see, however, what hideous and terrible consequences this departure from the simplest indications of common sense has had.
But on the other hand, the founders of the American republic wisely rejected this source of trouble and political upheaval. Our fathers did the same in 1789. I am not therefore in the process of supporting a purely personal view or an innovation with neither precedent nor authority.
Like Washington, Franklin, and the authors of the’91 constitution,9 I cannot stop myself from seeing in the eligibility of deputies for ministerial posts a constant cause of unrest and instability. I do not think that it is possible to imagine an alliance that is more destructive of any effectiveness and any continuity in the action of the government, or a harder pillow for the heads of kings or presidents of republics. Nothing on earth seems to me to be more likely to arouse a partisan spirit, ferment factional conflict, corrupt all the sources of information and publicity, distort the action of the rostrum and the press, mislead public opinion after having whipped it up, make true facts unpopular in order to make falsehood popular, hinder administrative processes, stir up national hatred, provoke foreign wars, ruin public finances, wear down and discredit governments, discourage and corrupt those being [377] governed, and, in a word, falsify all the stimuli of a representative regime. I know of no social scourge that can be compared to that, and I believe that if God Himself sent us a constitution by one of His angels, all it would need is for the National Assembly to insert Article 79 for this divine work to become the scourge of our country.
This is what I propose to demonstrate.
I warn you that my line of argument is a long syllogism based on this premise, taken as read: “Men love power. They adore it with such fervor that to conquer or retain it, there is nothing they would not sacrifice, even the tranquillity and happiness of their country.”
This universally observed truth will not be contested in advance. But when, from consequence to consequence, I have led the reader to my conclusion—that access to government must be closed to deputies—it may be that the reader will return to my starting point, not having found any broken link in my chain of reasoning, and say to me, “Nego majorem,10 you have not proved the attraction of power.”
In this case I will stubbornly stand by my unproven thesis. Proof! Just open the annals of the human race at random! Consult ancient or modern history, whether sacred or profane, and ask yourself where all these wars of race, class, nations, or families came from! You will always receive the invariable answer: the thirst for power.
This having been said, does the law not act blindly and rashly in the extreme when it offers candidacy for a position of power to the very men it makes responsible for checking, criticizing, accusing, and judging those who hold it? I am no more suspicious than the next man of the sentiment of this or that person, but I distrust the human heart when it is placed by a reckless law between duty and self-interest. In spite of the most eloquent speeches in the world on the purity and disinterestedness of the magistrates, I would not like to have my small savings in a country in which a judge is able to decree its confiscation in his own favor. In the same way, I pity the minister who has to say to himself: “The nation forces me to report to men who really want to replace me and who can do so provided they can find fault with me.” Just go and prove your innocence to judges like these!
But it is not just the minister who is to be pitied; it is above all the nation. A terrible conflict is about to break out and this will provide the challenge. [378] What is at stake is its tranquillity, its well-being, its moral code, and even the true standing of its ideas.
The salaried high offices to which, as exceptions to Article 28 of the Constitution, the members of the National Assembly may be called during the life of this legislature, following selection by the executive power, are those of ministers.
Oh, this is a peril so great and palpable that, if we did not have experience in this respect, if we were reduced to a priori judgment, or simple common sense, we would not hesitate for a minute.
Allow me to imagine that you have no concept of a representative regime. You, a new Astolphus,11 are being transported to the moon and you are told: “Out of all the nations that people this world, here is one that does not know what tranquillity, calm, security, peace, and stability are.” “Does it not have a government?” you ask. “Oh, there is none more governed in the universe,” comes the reply, and to find one that is governed as much, you would have to travel around all the planets to no avail, except perhaps the earth. The government there is immense, dreadfully overbearing, and spendthrift. Five out of six of the people with some sort of education work for the state there. But at last those being governed there have won a precious right. They periodically elect deputies who draft all the laws, hold the purse strings, and oblige the government to obey their decisions, either in its actions or in its expenditures. “Oh! What splendid order, what a wise economy ought to result from this simple mechanism!” you cry. “Certainly this people has to have found, or will find, by trial and error, the exact point at which the government will achieve the greatest benefits at least cost. Why then are you telling me that everything is in trouble and confusion under such a marvelous regime?” “You ought to know,” replies your guide, “that if the inhabitants of the moon, or the lunatics, have a prodigious love of being governed, there is one thing that they love even more prodigiously and that is to govern. So, they have introduced into their wonderful constitution a tiny article, lost in the midst of all the others, that says: “The representatives combine the faculty of overthrowing ministers with that of replacing them. Consequently, if parties, systematic opposition groups, or coalitions are [379] formed in parliament, which by dint of noise and clamor and exaggerating and distorting all the questions manage to make the government unpopular and overthrow it through the blows delivered by a majority that has been suitably prepared to do this, the leaders of these parties, opposition groups, and unions, will ipso facto be ministers, and, while these heterogeneous elements are quarreling among themselves for power, the overthrown ministers, who have become simple representatives once again, will proceed to foment intrigues, alliances, and new opposition groups and unions.” “Good heavens!” you cry; “since this is so, I am not surprised that the history of this people is just the history of a frightful and constant upheaval!”
But let us return to the moon, fortunate if, like Astolphus, we can take back to it a small vial of common sense. We will pay homage to anyone involved during the third reading12 of our electoral law.
I request leave to stress once again my a priori argument. Only this time we will apply it to existing situations, which are occurring as we watch.
There are in France some eighty parliaments on a small scale. They are known as General Councils. The reports sent by prefects to General Councils are similar in many respects to those sent by ministers to the National Assembly. On the one hand there are agents mandated by the public, who decide in its name to what extent and at what cost they intend to be governed. On the other, an agent of the executive power studies the measures to be taken, has them accepted if he can, and once they are, sees that they are carried out. This is a procedure that is carried out repeatedly nearly a hundred times a year under our eyes, and what does it teach us? Certainly the hearts of general councillors are formed from the same clay as those of the representatives of the people. There are few of them who do not want to become prefects as much as deputies want to become ministers. However, the idea does not even cross their minds, and the reason for this is simple: the law has not made the post of councillor a stepping-stone to the prefecture. However ambitious men are (and nearly all of them are), they pursue, per fas et nefas,13 only what it is possible to attain. Faced with total impossibility, desire fades away for lack of sustenance. We see children crying [380] for the moon, but when reason takes over, they no longer think about it. This is directed at those who tell me, “Do you then believe that you can root out ambition from men’s hearts?” Certainly not, and I do not even want to. However, what is very possible is to divert ambition from a given path by abolishing the bait that had rashly been placed there. You can erect greasy poles as much as you like; no one will climb them if there is no prize at the top.
It is clear that if a systematic opposition group or an equal coalition of the red and white were to form in General Councils, it might well overthrow the prefect, but it would not install the leaders in his place. What is also certain, and experience has borne this out, is that as a result of this impossibility, coalitions like this do not form in them. The prefect puts forward his plans; the Council discusses them, assesses them among its membership, and estimates their intrinsic value from the point of view of the general good. I am ready to accept that one person may let himself be influenced by local considerations and another by his own personal interest. The law cannot reform the human heart; it is up to the electors to allow for this. But it is very true that nobody systematically rejects the proposals of a prefect solely to check him, to thwart him, or to overthrow him and take his place. This senseless conflict, for which the country pays the cost in the end, this conflict that is so frequent in our legislative assemblies that it is their very history and life, is never witnessed in the assemblies of the départements; do you want to see it occur there? There is a simple way of doing this. Constitute these tiny parliaments along the lines of the big one; introduce into the law that organizes the General Councils a little article drafted thus:
“If a measure, whether good or bad, put forward by the prefect is rejected, he will be removed from office. The member of the Council who has led the opposition will be nominated in his place and will distribute to his companions of fortune all the major activities of the département: general tax collection, the management of direct and indirect contributions, etc.”
I ask the question: out of my nine hundred colleagues, is there a single one who would dare to vote for a dispensation like this? Would he not think he was making the country a most disastrous gift? Could one choose anything better if one had decided to watch it die under the grip of factions? Is it not certain that this article alone would totally throw the spirit of General Councils into confusion? Is it not certain that these hundred enclaves in which calm, independence, and impartiality reign would be converted into so many arenas of conflict and intrigue? Is it not clear that each proposal [381] put forward by the prefect would become a battlefield of personal conflict instead of being studied for its own sake and for its effect on the public good? Would each person not seek only opportunities for his own advantage? Now, let us assume that there are journals in the département; would the warring parties not devote every effort to win them over to their side? Would not the controversy between these journals be tinged with the passions that agitate the council? Would all the questions not be brought before the public changed and distorted? When there are elections, how can a public that has been misled or circumvented judge matters correctly? Do you not see, moreover, that corruption and intrigue, whipped up by the heat of the conflict, will know no bounds?
These dangers strike and terrify you. Representatives of the people, you would let your right hand burn sooner than vote in an organization for the General Councils that was as absurd and anarchical as this. And yet, what are you going to do? You are going to deposit this destructive scourge, this dreadful solvent, in the constitution of the National Assembly when you reject it with horror in assemblies of the département. In Article 79 you are going to proclaim out loud that you will be saturating the heart of the social body with this poison, from which you are protecting its veins.
You say: “That is very different. The attributions of General Councils are very limited. Their discussions have no great importance; politics are banished; they do not give laws to the country; and, after all, the position of prefect is not a very attractive object of greed.
Do you not understand that each of your alleged objections places as many more conclusive reasons that are just as clear as day within my reach? What! Will the struggle be less bitter, will it inflict less harm on the country because the arena is larger, the theater more elevated, the battlefield more extensive, the whipping up of passions more lively, the prize for the combat more desired, the questions that serve the war machine more burning, more difficult, and hence more likely to mislead the feelings and judgment of the multitude? While it is distressing when public opinion makes a mistake with regard to a neighborhood path, is it not a thousand times worse when it makes a mistake with regard to questions of peace or war, financial order or bankruptcy, public order or anarchy?
I say that Article 79, whether applied to General Councils or National Assemblies, amounts to disorder that has intentionally been organized according to the same design, in the first case on a small scale and in the second case on an immense one.
[382]But let us cut short the monotonous enumeration of reasons by a call on experience.
In England, it is from members of Parliament that the king always chooses his ministers.
I do not know whether the principle of the separation of functions is stipulated, at least on paper, in that country. What is certain is that not even a shadow of this principle is revealed by the facts. All of the executive, legislative, legal, and spiritual powers are lodged in one class to its own advantage, and that is the oligarchic class. If it encounters a limitation, this is due to public opinion, and the limitation is very recent. For this reason, the English people have up to now not so much been governed as exploited, as is shown by taxes of two billion and debts of twenty-two billion. If its finances have been better managed in the recent past, England has not the combination of powers to thank for this but public opinion, which, even though deprived of constitutional means, exercises great influence, and also the common prudence of those who carry out this exploitation and who decided to stop just when they were about to become engulfed, along with the entire nation, in the abyss opened up by their rapacity.
In a country in which all the branches of government are just parts of a single exploitative system that benefits the parliamentary families, it is not surprising that ministries are open to members of Parliament. It would be surprising if this were not the case, and it would be even more surprising if this curious organization were imitated by a people that claims to govern itself, and what is more, govern itself well.
Be that as it may, what result has it produced in England itself?
No doubt people are expecting me to give the history of the coalitions that have caused disruption in England. This would amount to an account of its entire constitutional history. However, I cannot refrain from recalling a few of its details.
When Walpole was prime minister, a coalition was formed. It was led by Pulteney and Carteret for the dissident Whigs (those for whom Walpole had not succeeded in finding positions) and by Windham for the Tories who, suspected of Jacobite sympathies, were condemned to the sterile honor of acting as auxiliaries to all forms of opposition.14
[383]It was in this coalition that Pitt the Elder (subsequently Lord Chatham) began his brilliant career.
Since the Jacobite spirit, which was still deep rooted, was capable of giving France an opportunity to cause a powerful diversion in case of hostilities, Walpole’s policy favored peace. The coalition, therefore, was for war.
“To put an end to a system of corruption that subjected Parliament to the desires of the government and to replace Walpole’s timid and exclusively peace-loving policy in foreign relations with one that has greater pride and more dignity”: this was the twin aim that the coalition set for itself. I leave you to imagine what it said about France.
You cannot play with impunity with the patriotic sentiments of a people who sense their strength. The coalition spoke so freely and so loudly to the English of their humiliation that they ended up believing it. They called raucously for war. This broke out on the occasion of a right of inspection.15
Walpole loved power just as much as his adversaries did. Rather than lose it, he claimed to lead the operations. He put forward a subsidies bill and the coalition rejected it. The coalition wanted war but refused the means of waging it. This was how it saw the matter: a war fought without adequate resources would be a disaster; we would then be able to say: “It is the fault of the minister who has waged it half-heartedly.” When a coalition places a country’s honor on one side of the scales and its own success on the other, it is not the country’s honor that wins the day.
This conspiracy succeeded. The war was unsuccessful, and Walpole fell from power. The opposition, minus Pitt, came into power; but, made up of heterogeneous elements, it could not agree. During this internal struggle, England was always beaten. A new coalition formed. Pitt was its driving force. He turned against Carteret. With him, he favored war; against him he wanted peace. He called him an appalling minister and a traitor and reproached him for subsidizing Hanoverian16 troops. A few years later, we find these two men, now firm friends, sitting side by side in the same council. Pitt said of Carteret, “I am proud to say that I owe what I am to his patronage, friendship, and what he taught me.”
[384]In the meantime, the new coalition brought on a ministerial crisis. The Pelham brothers17 were ministers. A fourth coalition was formed by Pulteney and Carteret. They overthrew the Pelhams. However, they themselves were overthrown three days later. While Parliament was in the throes of these intrigues the war continued, and the Pretender,18 who took advantage of the situation, made advances in Scotland. But this consideration did not rein in personal ambition.
Pitt finally regained a somewhat modest official position. He was of the governing party for a few days. He approved everything he had criticized, including the subsidy to the Hanoverians. He criticized everything he had approved, including resistance to the right of inspection invoked by the Spanish, which he had used as a pretext to foment the war, a war that itself had just been a pretext for overthrowing Walpole. “Experience has matured me,” he said; “I have now gained the conviction that Spain is within its rights.” At last peace was concluded with the Treaty of Aixla-Chapelle, which restored things to the state they were in before and did not even mention the right of inspection that had inflamed Europe.
Then came a fifth coalition against Pitt. This was unsuccessful. Then a sixth that had one particular characteristic: it was directed by one-half of the cabinet against the other half. Pitt and Fox19 were indeed ministers, but both wanted to be prime minister. They joined forces but were soon to oppose one another. In fact, Fox rose and Pitt fell, and Pitt lost no time in fomenting a seventh coalition. Finally with the help of circumstances (these circumstances were the ruin and humbling of England), Pitt succeeded in his efforts. He was to all intents and purposes prime minister. He was to have four years before him to make himself immortal, since John Bull began to be disgusted with all these conflicts.
At the end of four years, Pitt fell victim to parliamentary intrigue. His adversaries got the better of him all the more easily by constantly throwing his old speeches in his face. An interminable series of ministerial crises followed. It reached the point where Pitt, who had regained power in the midst of these vicissitudes and thought he was doing Frederick the Great much honor by offering him an alliance, received this crushing reply from him: “It is very difficult to enter into an agreement of any stature with a country [385] that, as a result of continual changes in its government, offers no guarantee of continuity and stability.”
But let us leave the venerable Chatham to wear out his final days in these sorry conflicts. Here comes a new generation, other men with the same names, another Pitt,20 another Fox,21 who, in matters of eloquence and genius, were no less worthy than their predecessors. However, the law remained the same. Members of Parliament could become ministers. For this reason we are going to find the same coalitions, the same disasters, and the same immorality.
Lord North22 was the head of the cabinet. The opposition boasted a host of illustrious names: Burke, Fox,23 Pitt,24 Sheridan, Erskine, etc.
Early in his career, Chatham had encountered a peace-loving government and had naturally clamored for war. The second Pitt entered Parliament during the war; his role was to clamor for peace.
North resisted the son just as Walpole had resisted the father. The opposition achieved a peak of violence. Fox went so far as to demand North’s head.
North fell and a new government was formed. Burke, Fox, and Sheridan were included in it, but Pitt was not. Four months later there was a fresh shuffle, which brought Pitt into the government and removed Sheridan, Fox, and Burke. With whom do you think Fox was to form an alliance? With North himself! What a strange sight! Fox first of all wanted peace because the government was warlike. Now he wanted war because the government was peace loving. It is easy to see that war and peace were purely parliamentary strategies.
As absurd and odious as this coalition was, it succeeded. Pitt fell and North was summoned to the palace. However, individual ambition had reached such a point that it was impossible to put an end to the governmental crisis. It lasted two months. Messages from the two Houses, petitions by the citizens, and the embarrassment of the king had no effect. The members of Parliament who were candidates for ministerial office did not back down from their demands. George III thought of throwing such a heavy crown to the winds, and I believe that this period was the origin of the dreadful illness [386] that afflicted him later on. In truth this was enough to make him lose his head.25
At last agreement was reached. Fox became minister, leaving North and Pitt in opposition. A new crisis, new difficulties. Pitt triumphed and, in spite of the fury of Fox, who had become the head of another coalition, managed to maintain his position. Fox could no longer contain himself and launched into coarse insults. Pitt replied, “Sympathetic as I am with the position of the honorable gentleman who has just spoken, with the torture of his dashed hopes, his illusions that have been destroyed, and his ambition that has been disappointed, I declare that I would consider myself inexcusable if the outbursts of a mind crushed by the weight of devouring regret were to arouse in me any other emotion than that of pity. I declare that they do not have the power to provoke my anger nor even my scorn.”
I will stop there. In truth, this story would be endless. If I have quoted illustrious names, it is certainly not for the vain pleasure of denigrating great reputations. I thought that my argument would be given even more force by including them. If a rash law could humiliate men such as the Pitts and the Foxes to this extent, what would it not have done to more common mortals, such as Walpole, Burke, and North?
What should be noted above all is that England was the plaything and victim of these coalitions. One led to a ruinous war, the other to a humiliating peace. A third caused the failure of the plan conceived by Pitt for justice and reparation in favor of Ireland.26 How much suffering and shame would have been spared England and humanity by this plan!
What a sad sight is that of statesmen abandoned to the shame of perpetual contradiction! Chatham, when in opposition, taught that the slightest sign of commercial prosperity in France was a calamity for Great Britain. Chatham, when a minister, concluded a peace with France and pronounced that the prosperity of one people is beneficial to all the others. We are accustomed to seeing in Fox a defender of French ideas. Doubtless he was, when Pitt was making war on us. But when Pitt negotiated the treaty of 1786,27 [387] Fox said in as many words that hostility was the natural state of things, the normal situation with regard to relations between the two peoples.
Unfortunately, these changes in views, which were only strategic maneuvers for the coalitions, were taken seriously by the people. This is why we have seen them pleading for peace or war in turn at the whim of the leader who was popular at the time. In this lies the great danger of coalitions.
We might rightly say that for the last few years these types of maneuver are so decried in England that their statesmen no longer dare to indulge in them. What does that prove, other than that, because of their disastrous effects, they have finally opened the eyes of the people and molded their experience? I am well aware that man is naturally liable to progress, that he always ends by becoming enlightened, if not by farsightedness, at least by experience, and that a corrupt institution loses its effectiveness for harm in the long run as a result of doing harm. Is this a reason for adopting such an institution? Besides, it should not be believed that England escaped this scourge a long time ago. We have seen the country suffering its ill effects within our lifetimes.
In 1824, as the state of the finances was hopeless, a clever minister, Huskisson, thought of a great reform which was very unpopular at the time. Huskisson had to content himself with carrying out a few experiments in order to prepare and enlighten public opinion.
At the time, there was a young man in Parliament, who was deeply versed in economics and who understood the full greatness and extent of this reform. If, as a member of Parliament, his access to government had been barred, he would have had nothing better to do than to help Huskisson in his difficult enterprise. But there was also a fatal Article 79 in the English constitution. And Sir Robert Peel, for it was he, said to himself: “This reform is fine, and it is I and I alone who will accomplish it.” However, to do this, he had to be a minister. To be a minister, he had to overthrow Huskisson. For Huskisson to be overthrown, he had to be made unpopular. To make him unpopular, Sir Robert had to decry the work that he admired deep in his heart. This is what Sir Robert set out to do.
Huskisson died without achieving his idea. Finances were desperate. A heroic solution had to be conceived. Lord John Russell put forward a bill that started and implied the said reform. Sir Robert did not scruple to oppose it furiously. The bill failed. Russell advised the king to dissolve Parliament and call for an election, so grave was the situation. Sir Robert filled England with protectionist arguments, which were contrary to his convictions [388] but essential to his plans. The old preconceived ideas prevailed. The new House of Commons overthrew Russell, and Peel entered the government with the express mission of opposing any reform. You can see that he was not afraid to take the longest way round.
However, Sir Robert had counted on help that was not slow to appear, public affliction. Since his careful attentions had delayed the reform, the state of finances had naturally gone from bad to worse. All the budgets had resulted in terrifying deficits. Because foodstuffs had not been able to enter Great Britain, the country experienced famine accompanied, as is always the case, by criminal acts, debauchery, illness, and death. Affliction! Nothing is more propitious to make a people fickle. Public opinion, supported by a powerful league, demanded freedom. The situation had reached the point that Sir Robert wanted. He then betrayed his past, his constituents, and his parliamentary party; and one fine day he proclaimed that he had become converted to political economy and carried out himself the very reform which, to England’s great misfortune, he had delayed for ten years with the sole aim of robbing others of the glory of its achievement. He gained this glory but paid dearly for it through being abandoned by all his friends and having to suffer pangs of conscience.
We also have our constitutional history, in other words, the history of our portfolio war, a war that throws our country into turmoil and oft en corrupts it altogether. I will not spend much time on this; it would just be an echo of what has already been read, with changes in the names of the players and a few of the stage details.
The point to which I want above all to draw the reader’s attention is not so much the deplorable nature of the maneuvers of parliamentary coalitions as the most dangerous aspect of one of their effects: the popularization of injustice and absurdity for a while and the rendering unpopular of truth itself.
One day, M. de Villèle noticed that the state had a little credit, and that he could borrow at 4½ percent. We then had heavy debt with interest that cost us 5 percent. M. de Villèle thought of putting the following proposal to the state’s creditors: agree from now on to receive only the interest at today’s rate for all transactions or take back your capital; I am ready to give it back to you. What was more reasonable and just, and how many times has France really asked for such a simple measure since then?
However, in the Chamber there were deputies who wanted to become ministers. Their natural role, therefore, was to find fault with M. de Villèle in anything and everything. They thus decried the conversion with so much [389] noise and intensity that France wanted no truck with it at any price. It appeared that to give back a few million to the taxpayers was to tear out their entrails. When the upright M. Laffite, imbued by his financial experience to the extent of forgetting his role as a coalition member, decided to say: “After all, there is an advantage in the conversion,” he was instantly denounced as a renegade, and Paris no longer wanted him as its deputy. Imagine making a just decrease in the interest paid to stockholders unpopular! Since coalitions have achieved this tour de force, they will surely achieve a good many others. Such being the case, at present we are still paying for this lesson and what is worse, we do not appear to be benefiting from it.
But here is M. Molé in power. Two men of talent entered the Chamber under the governance of the new charter, which also has its Article 79. This article whispered in the ear of one of our two deputies these seductive words: “If you can manage to demolish M. Molé by making him unpopular, one of you will take his place.” And our two champions, who have never been able to agree on anything, agreed perfectly about heaping floods of unpopularity on M. Molé’s head.
What terrain did they choose? Matters concerning foreign affairs. This was about the only one on which the two men of opposing political opinions were able to agree for a moment. Besides, it was perfectly suited to the aim they had in mind. “The government is cowardly and traitorous, and it is humiliating the French flag. We ourselves are the true patriots and defenders of national honor.” What is better calculated to debase your opponent and raise yourself in the eyes of a public that is so well known to be sensitive to points of honor? It is true that if this exalted feeling of patriotism is pushed too far in the masses, it may result initially in scuffles and then in universal conflagration. However, this was just a secondary consideration in the eyes of a coalition; the essential lay in seizing power.
At the time of which we are speaking, M. Molé had found France bound by a treaty that included, if I am not mistaken, the following clause which I quote: “When the Austrians leave the legations,28 the French will leave Ancona.” Well, once the Austrians left the legations, the French left Ancona. [390] Nothing in the world was more natural and just. Unless it is claimed that the glory of France lies in violating treaties and that she has been given promises so that she can deceive those with whom she negotiates, M. Molé was right a thousand times.
However, it was precisely on this question that MM Thiers and Guizot, supported by a public opinion that had been misled, succeeded in overthrowing him. And it was on this occasion that M. Thiers professed the famous doctrine on the value of international undertakings that has made him an impossible man since it has done nothing less than make France itself an impossible nation, at least among civilized peoples. But the essence of coalitions is to create future embarrassment and obstacles for those who enter into them. The reason for this is simple. While people are in systematic opposition, they declare sublime principles and fierce patriotism and clothe themselves in outraged austerity. When the hour of success sounds, they enter the government, but they are obliged to leave all declamatory baggage outside the door and humbly follow the policy of their predecessors. This is why the public conscience loses any faith it has. The people see a policy that they have been taught to find despicable being continued. They say sadly to themselves, “The men who gained my confidence through their fine speeches in opposition never fail to betray it when they become ministers.” Fortunately, they do not add: “From now on, I will be calling upon men of action, not speechmakers.”
We have just seen MM Thiers and Guizot aim the batteries of Ancona against M. Molé in parliament. I could now demonstrate how other coalitions have disparaged M. Guizot using the batteries of Tahiti,29 Morocco,30 and Syria.31 But the story would really become tedious if I did. It is always the [391] same. Two or three deputies from a variety of parties, oft en opposed to one another and oft en irreconcilable, get it into their heads that they ought to be ministers whatever happens. They calculate that all these parties together would be able to form a majority or very close to one. Therefore they form a coalition. They do not bother with serious administrative or financial reform that would lead to public good. No, they would not agree on this. Besides, the role of a coalition is to attack men violently and abuses tepidly! Destroy abuse! That would be to reduce the inheritance to which they aspire! Our two or three leaders pitch their camp firmly on questions relating to foreign affairs. Their mouths are full of the words: national honor, patriotism, the greatness of France, and physical and moral superiority. They whip up the journals and then public opinion; they exalt it, inflame it, and overexcite it, now on the question of the Egyptian pasha, then on the right of search, and yet again on questions raised by someone such as Pritchard.32 They lead us right up to the brink of war. Europe is racked by anxiety. Armies are increased on all sides and budgets with them. “Just a little more effort,” says the coalition; “The government must fall or Europe has to be in flames.” The government does indeed fall, but the armies remain, as do the budgets. One of the happy victors joins the government; the two others remain on the wayside and go on to form a new coalition with the overthrown ministers that uses the same intrigues to achieve the same results. If anyone thinks of saying to the newly appointed government, “Now reduce the army and the budget,” they will reply, “What! Do you not see how oft en the danger of war arises in Europe?” And the people chorus: “They are right.” So the burden increases with each government crisis until it becomes unbearable and the artificial perils abroad are replaced by the genuine ones at home. And the government says: “We have to arm half of the nation to keep the other half in check.” Whereupon the people, or at least that part of the people who still have something to lose, say: “It is right.”
Such is the sorry sight that France and England are offering to the rest of the world, to the extent that many people with common sense have been brought to the point of asking themselves whether a representative regime, however logical in theory, is not by its very nature a cruel hoax. That depends. [392] Without Article 79, it lives up to the hopes that gave it birth, as is proved by the example of the United States. With Article 79, it is just a series of illusions and disappointments for the people.
And how could it be otherwise? Men have dreamed of greatness, influence, wealth, and glory. Who does not dream of these on occasion? Suddenly the wind of election blows them into the legislative arena. If the constitution of their country tells them, “You are entering here as a deputy and you will remain a deputy,” what good would it do them, I ask you, to torment, hinder, decry, and overturn those in power? However, far from speaking to them thus, the constitution tells one of them, “The government needs to increase its following and has high political office in its gift, which I do not forbid you to accept,” and another, “You have daring and talent; there is the ministers’ bench. If you succeed in removing the incumbents, your place will be on it.”
At this point, infallibly, the floods of angry accusations begin, the unheard-of efforts to gain the support of a fleeting popularity, and the grand display of unattainable principles when the person is on the attack or abject concessions when he is on the defensive. There is nothing but traps and counter-traps, feints and counterfeints, mines and countermines. Politics becomes mere strategy. Operations are carried out outside and in offices, commissions, and committees. The slightest accident in parliament, the election of the treasurer of a parliamentary assembly, is a signal that makes hearts beat fast through fear or hope. No greater interest would be aroused if it were a question of the Civil Code itself. The most unlikely elements form alliances and the most natural alliances dissolve. Here, a partisan spirit forms a coalition. There, the undercover skill of one minister causes the downfall of another. If a matter arises concerning a law on which the well-being of the people depends but which does not involve a question of confidence, the Chamber is deserted. On the other hand, any event that occurs that carries within it general conflagration is always welcome if it offers a terrain on which assault ladders may be raised. Ancona, Tahiti, Morocco, Syria, Pritchard, the right of inspection or fortifications,33 any of these is a good excuse, provided that the coalition can gain enough strength from it to overthrow the cabinet. At this point we are drenched in this type of stereotyped lamentations, “At home, France is suffering, etc., etc., while abroad, France is humiliated, etc., etc.” Is this true? Is it false? Nobody cares. Will this measure make us [393] quarrel with Europe? Will it oblige us to keep five hundred thousand men constantly on the ready? Will it stop the march of civilization? Will it create obstacles for any future government? That is not the point. Basically, just one thing is of interest: the fall or triumph of a particular name.
And do not think that this political perversity affects only base hearts within parliament, hearts that are consumed by ignoble ambition, the commonplace lovers of well-paid positions. No, it attacks over and above all the highest minds, noble hearts, and powerful intellects. To tame men like these, it needs only Article 79 to awaken in the depths of their consciences, in place of the trivial thought: You will achieve your dreams of wealth, this much more dominant idea: You will achieve your dreams for the public good. Lord Chatham had shown evidence of great disinterest, and M. Guizot has never been accused of worshipping the golden calf. We have seen these two men in coalitions, and what did they do there? Everything that a thirst for power and, perhaps worse, a thirst for riches might suggest. The display of sentiments they did not have, clothing themselves in ferocious patriotism of which they did not approve, generating embarrassment for the government of their country, making negotiations of the highest importance fail, inciting journalism and public views to follow the most perilous paths, creating problems for their own future government through all of this, and preparing themselves in advance for shameful retractions: that is what they did. Why? Because the tempting demon, hidden in the form of an Article 79, had whispered in their ear these words, whose seductive power it has known from the beginning: “Eritis sicut dii;34 overturn everything in your path, but achieve power and you will be the providence of the people.” And the deputy, succumbing to this, makes speeches, sets out doctrines, and carries out actions of which his conscience disapproves. He says to himself: “I have to do this to make my way. Once I have reached government, I will be able to return to my genuine ideas and my true principles.”
There are therefore very few deputies who are not diverted by the prospect of government from the straight line that their constituents were entitled to see them pursue. Here again, if the war for portfolios, this scourge which the fabulist might have included in his sorry list between plague and famine, if only this war for portfolios was limited to the chamber of the national palace! But the field of battle has gradually expanded right up to and beyond the borders of our country. Warlike masses are everywhere; only [394] their leaders remain in the Chamber. They know that, in order to reach the body of the fort, they have to start by conquering the outer works—journalism, popularity, public opinion, and electoral majorities. It is therefore fatal for all these forces, to the extent that they support or oppose the coalition, to become impregnated and imbued with the passions that are aroused in parliament. Journalism from one end of France to the other no longer discusses; it pleads a case. It argues for and against each law and each measure, not on the basis of what good or harm they contain but solely from the point of view of the assistance they might provide temporarily to this or that champion. The government press has only one motto: E sempre bene,35 and the press for the opposition, like the old woman in the satire, lets the following word be read on her petticoat: Argumentabor.36
When journalism has thus decided to mislead the general public and mislead itself, it is able to accomplish some surprising miracles of this sort. Let us recall the right of inspection.37 For I do not know how many years this treaty was carried out without anyone taking any notice. However, since a coalition needed a strategic expedient, it unearthed this unfortunate treaty and used it as the basis of its operations. Within a short time, with the help of journalism, the coalition succeeded in making every Frenchman believe that it had only one clause, which stated: “English warships will have the right to inspect French commercial ships.” I have no need to relate the explosion of patriotism that a notion like this was bound to generate. It reached a point at which we still cannot understand how a world war could have been avoided. I remember at this time finding myself in a circle of many people who were fulminating against this odious treaty. Someone thought of asking, “How many of you have read it?” It was fortunate for him that his audience had no stones to hand or he would inevitably have been stoned.
Besides, the involvement of the journals in the war for portfolios and the role they play in it was revealed by one of them in terms that deserve to be quoted here (La Presse dated 17 November 1845):
“M. Petetin describes the press as he understands it and as he likes fondly to imagine it. In good faith, does he believe that when Le Constitutionnel, Le Siècle, etc., attack M. Guizot and when in turn Le Journal des débats takes [395] on M. Thiers, these papers fight solely for the idea in its essence, for truth, stimulated by the internal needs of conscience? Defining the press in this way is to paint it as one imagines it, not to paint it as it is. It costs us nothing to declare this, for if we are journalists we are less so by vocation than by circumstance. Every day we see the press in the service of human passions, rival ambitions, ministerial alliances, parliamentary intrigue, a wide variety and the most diverse of political calculations and those that are the least noble; we see it associating closely with these. But we rarely see it in the service of ideas, and when by chance a journal happens to take hold of an idea, it is never for itself, it is always as a governmental instrument of defense or attack. He who is writing these lines is speaking from experience. Every time he has tried to make journalism leave the partisan rut for the open fields of ideas and reform, the path of the healthy application of economic science to public administration, he has found himself alone, and has had to acknowledge that, outside the narrow circle drawn by the assembled letters of four or five individuals, there was no possible discussion, and no politics.”
In truth, I do not know to what demonstration to turn if the reader is not scandalized and appalled by such a terrible admission?
Finally, just as the evil, having escaped parliament, invaded journalism, through journalism it invaded the whole of public opinion. How could the general public not be misled when, day after day, La Tribune and La Presse concentrated on allowing only false glimmers, false judgments, false quotations, and false assertions to reach it?
We have seen that the terrain on which ministerial battles normally take place is first of all the question of foreign affairs, followed by parliamentary and electoral corruption.
With regard to foreign affairs, everyone understands the danger of this incessant work undertaken by coalitions to whip up national hatred, inflame patriotic pride, and persuade the country that foreigners are thinking only of humiliating them and the executive power only of betraying them. I trust I may be allowed to say that this danger is perhaps greater in France than anywhere else. Our civilization has made work a necessity for us. It is our means of existence and progress. Production develops through security, freedom, order, and peace.
Unfortunately, university education is in flagrant contradiction with the needs of our time. By making us live throughout our youth the life of the Spartans and Romans, it fosters in our souls the sentiment common to children and barbarians, an admiration for brute force. The sight of a fine regiment, [396] the sound of a flourish of trumpets, the appearance of the machines invented by men to break each other’s arms and legs, or the strutting of a drum major, all put us in a state of ecstasy. Like barbarians, we believe that patriotism means a hatred of foreigners. As soon as our intelligence begins to grow, it is nourished solely with military virtues, the great policies of the Romans, their profound diplomacy, and the strength of their legions. We learn our morals from Livy. Our catechism is Quintus Curtius and our enthusiasm is offered, as an ideal of civilization, a nation that founded its means of existence on the methodical plundering of the entire world. It is easy to understand how the efforts of parliamentary coalitions, which are always directed toward war, find us so eager to support them. They could not sow on a field that is better prepared. For this reason, in the space of a few years we came on three occasions within a whisker of clashing with Spain, Morocco, Turkey, Russia, Austria, and England. What would have become of France if calamities like these had not been averted with great difficulty and almost in spite of what she was doing? Louis-Philippe fell, but nothing will stop me from saying that he rendered the world an immense service by maintaining the peace. How much sweat this success worthy of the blessings of nations cost him! And why (this is the heart of my thesis)? Because at a given time peace no longer had public opinion on its side. And why did it not have public opinion on its side? Because it did not suit the newspapers. And why did it not suit them? Because it was inconvenient for some deputy, who aspired to a ministry. And why in the end was it inconvenient for this deputy? Because accusations of weakness and treason have been, are, and always will be the favorite weapon of deputies who aspire to portfolios and need to overthrow those who hold them.
The other point on which coalitions normally attack the government is corruption. In this respect, during the last regime, it was quite easy for them. However, do coalitions not make corruption itself inevitable, so to speak? The government, being attacked on a matter on which it is in the right—such as, for example, when people want to incite it to start an unjust war—initially defends itself using reason. However, it soon realizes that reason is powerless and that it has broken itself against systematic opposition. What recourse has it left in these circumstances? To create at all costs for itself a solid majority and to oppose one prejudice with another. This was Walpole’s defensive weapon and that of M. Guizot. I hope I will not be accused of presenting an apology or justification for corruption here. However, I will say this: given the state of the human heart, coalitions make corruption [397] inevitable. The opposite implies contradiction, for if the government were honest, it would fall. It exists; therefore it corrupts. The only cabinets that have ever been stable to any extent were those which created a majority for themselves in spite of this: those of Walpole, North, Villèle, and Guizot.
And now let the reader imagine a country in which the major political meetings, chambers, and electoral bodies are under pressure, on the one hand from the maneuvers of systematic opposition, backed up by a journalism sowing hatred, lies, and warlike ideas, and on the other by government maneuvers instilling venality and corruption in the very fibers of the social body! And this has been going on for centuries! And this is becoming the permanent situation of the representative regime! Should we be surprised if honest people end up by losing all trust in it? It is true that from time to time we see leaders change their role. However, an event like this serves only to substitute universal and indelible skepticism for the last vestiges of trust.
I must close. I will end with a consideration of the greatest importance.
The National Assembly has established a constitution. We ought to give it the most profound respect. It is the lifeline of our purposes. However, this is not a reason to close our eyes to the dangers that it may present by virtue of its claims as a work of human construction, especially if, in this conscientious scrutiny, we set ourselves the aim of banishing from all its ancillary institutions anything that is likely to germinate a disastrous seed.
Everyone will agree, I think, that the danger of our constitution is to bring face to face two powers which are or may think they are rivals and equals because both take advantage of the universal suffrage from which they arise.38 Already the possibility of irreconcilable conflict is alarming many minds and has given rise to two very distinct theories. Some claim that the February revolution against the former executive power has not felt able to propose a reduction in the preponderance of the legislative power. On the contrary, the chairman of the Council claimed that, although in previous times the government had to withdraw in the face of majorities, this was not the case today. Be that as it may, any sincere advocate of security or stability ought to hope ardently that no actual opportunity for this conflict of power will occur and that the danger, if it exists, will remain latent.
[398]If this is so, will we with light hearts establish a clear cause of artificial government crises within the electoral law? Faced with the huge constitutional difficulty confronting and appalling us, will we organize parliamentary strife before going our own ways, as though to increase at whim the opportunities for conflict?
Let us therefore meditate on this: what were known as government crises in former times will now be called struggles for power and will take on gigantic proportions because of this. We have already seen this, even though the constitution has scarcely been in existence for two months, and without the admirable moderation of the National Assembly we would now be in the eye of a revolutionary storm.
Certainly, this is a powerful reason for avoiding the creation of artificial causes of government crises. Under the constitutional monarchy, they did a great deal of harm, but in the end a solution was found. The king could dissolve the Chamber and go to the country. If the country condemned the opposition, the result arose from a new majority and the harmony of powers was reestablished. If the country condemned the government, this also resulted from a majority and the king could not refuse to give way.
Now, the question no longer arises between the opposition and the government. It arises between the legislative power and the executive power, both with a mandate for a specific duration39; that is to say, it arises between two expressions of universal suffrage.
Once again, I am not seeking to determine who should give way, but am limiting myself to saying, “Let us accept the ordeal if it occurs naturally, but let us not be so imprudent as to cause it to arise artificially several times a year.
Well, drawing on the lessons of the past, I ask the question: is not a declaration that representatives may aspire to portfolios an invitation to foment coalitions, increase the number of government crises, or, to express it better, struggles for power? I ask my colleagues to reflect on this.
Now I will deal with two objections.
It has been said: “You read a great deal into the eligibility of deputies to enter government. To hear you it would appear that, without this, the republic would be a paradise. By closing the door of power to deputies, do you think that you can extinguish all passions? Have you yourself not declared that in England coalitions have become impossible as a result of their [399] unpopularity, and have we not seen Peel and Russell lend each other loyal support?”
The argument can be summed up thus: Because there will always be evil passions, let us conclude that sustenance for the most harmful of all should be included in the law. That with time and because they cause harm repeatedly, coalitions will wear out, I believe. There is no scourge about which as much can be said, and this is a singular reason for sowing the seed of coalition government in our laws. Superfluous wars and burdensome taxes, the fruit of coalitions, have taught England to scorn them. I do not say that after two or three centuries, at the cost of similar calamities, we might not learn the same lesson. The question is to know whether it is better to reject a bad law or to adopt it on the basis that the excessive harm it does will generate a reaction toward good in a hundred years.
It has also been said: to forbid governmental posts to deputies is to deprive the country of all of the great talents that are revealed in the National Assembly.
For my part, I say that forbidding governmental posts to deputies is, on the contrary, to keep the great talents in the service of the general good. To show the prospect of power to a man of genius who is a representative is to lead him on to do a hundred times more harm as a member of a coalition than he would ever do good as the member of a cabinet. It would be to turn his very genius against public tranquillity.
Besides, do we not delude ourselves by imagining that all the great talents are in the Chamber? Do we not believe that, in the entire armed forces, there is no one who would make a good minister of war and in the entire judiciary no one who would make a good minister of justice?
If there are men of genius in the Chamber, let them stay there. They will exercise a good influence on the majorities and the government, especially since they will no longer have any interest in exercising a bad one.
Besides, even if the objection had any value, it would give way before the immeasurably greater dangers of coalition that are the inevitable consequence of the article that I oppose. Do we hope to find a solution that has no disadvantages at all? Let us be capable of choosing the lesser of two evils. The following is a singular form of logic and one used by all sophists: Your proposal has a tiny disadvantage and mine has immense ones. We therefore must reject yours because of the tiny disadvantage it has.
Let us sum up this dissertation, which is both too long and too short.
The question of parliamentary conflicts of interest is at the very heart of [400] the Constitution. For the last year, we have not turned over a question that is more in need of being resolved correctly.
The solution that is in line with justice and the public good appears to me to be based on two principles that are clear, simple, and incontrovertible:
1. For entering the National Assembly there should be no exclusion, but precautions should be taken with regard to civil servants.
2. For moving from representative seats to political office, there should be total exclusion.
In other words:
All electors are eligible.
All representatives must remain representatives.
All this is found in the amendment that I have formulated thus:
1. Civil servants elected as deputies will not lose their rights and titles and cannot be either promoted or dismissed from these. They cannot exercise their functions nor receive salaries for these for the entire duration of their mandate.
2. A deputy cannot accept any public office, especially that of a minister.
Endnotes(Paillottet’s note) This article, published in March 1849, was reprinted in 1850, a few months before the author’s death. [Toward the end of Bastiat’s life, his health was failing to the point where he could no longer speak in the Chamber, and so in March 1849 he distributed his would-be speech in pamphlet form to his friends and colleagues.] The views he developed in it were deeply rooted in his mind, as can be seen in his “Letter to M. Larnac” dating from 1846 in vol. 1, as well as in the article written in 1830 titled “To the Electors of the Département of the Landes.” (OC, vol. 1, p. 480, “À M. Larnac, député des Landes,” and vol. 1, p. 217, “Aux électeurs du département des Landes.”)
Bastiat distributed this pamphlet to his colleagues, in March 1849, during the debate on the draft of an electoral bill prepared by a commission of fifteen members directed by Adolphe Billault. A prior discussion had taken place in June 1848. At that time Bastiat had proposed the following amendment, which was rejected: “Civil servants who are elected deputies will not exercise their function during their mandates. . . . No deputy will be appointed to public functions during his mandate.”
Article 28 of the Constitution stipulated, “Any paid public function is incompatible with the mandate of people’s representative. No member of the National Assembly may be assigned or promoted to salaried public functions whose incumbents are appointed by the executive power. Exceptions will be determined by an organic law.”
To be eligible one had to pay personal income taxes at least equal to five hundred francs, which drastically limited the number of potential candidates.
Corruption was one of the plagues of the July Monarchy, more particularly under the Guizot government. On 18 July 1847, in a resounding speech, Lamartine announced, “The revolution of public conscience, the revolution of contempt.”
(Paillottet’s note) See pages 10 and 11 in vol. 4, chapter 17 in vol. 6, and pages 443ff. in this volume. (OC, vol. 4, “Abondance, disette,” pp. 10 and 11; vol. 6, p. 535, “Services privés, service public”; and vol. 5, p. 407, “Paix et liberté ou le budget républicain,” pp. 443ff.
During the discussion of the March 1849 law, on 26 February, Bastiat had indeed proposed an amendment that he justified in this way: “Deputies should be only deputies, and should not be appointed to any position by the executive power. If it so happened that some exceptions were found to be justified, a minister’s position should never be such an exception, as the greatest plague of a government is the possibility for a deputy to become a minister.”
Under the July Monarchy, any deputy who accepted a remunerated public function had to return to his electors to get their permission to combine the two functions.
The 1791 Constitution stipulated that ministers had to be chosen by the king outside the Assembly.
“The major premise is untrue.”
A character from the then-famous poem “Orlando furioso,” by Ludovico Ariosto (1474–1533). Orlando has lost his mind. Astolphe cures him with a bottle brought back from the moon and given to him by Saint John the Evangelist.
Article 41 of the Constitution stipulated that no law could be voted before three deliberations had taken place at intervals of more than five days. The third deliberation of the draft of electoral legislation took place from 11 to 14 March 1849.
“Through right and wrong.”
The terms Whigs and Tories had appeared by 1640 in the English political vocabulary. While they are still in use today, they were formally replaced in the early nineteenth century by the terms liberals and conservatives. See also the entry for “Whig and Tory” in the Glossary of Subjects and Terms.
Spain granted permission to England to send a commercial vessel to her American colonies once a year but kept the right to inspect English vessels to avoid smuggling.
Bastiat is referring to the fact that the troops of King George II (elector of Hanover) were subsidized by the English government.
Thomas Pelham-Holles and Henry Pelham.
Charles Edward Stuart.
Henry Fox.
William Pitt (the Younger).
Charles James Fox.
Frederick North.
Charles James Fox.
Pitt the Younger.
After 1788 George III started to display signs of mental illness.
Pitt the Younger attempted until his death to eliminate discrimination against Catholics.
The Eden-Rayneval Treaty (from the names of the two negotiators), a commercial treaty finally signed in 1788.
A reference to the countries that the French had formally administered. Molé was minister of foreign affairs during the July Monarchy (1836) and was instrumental in withdrawing the French garrison from the Italian city of Ancona, where the French had been since it was first occupied in 1797, at which time Ancona declared itself to be a revolutionary municipality. Until Italy became a unified nation state, Austria and France were the dominant European powers in the northern part of Italy.
In 1842 Tahiti was a French protectorate. Following incidents with English ships, Admiral Dupetit-Thouars transformed it into a territory of “direct sovereignty” and expelled the British consul George Pritchard, a Protestant minister hostile to the French, chiefly on account of their Catholicism. This created tension between London and Paris. The latter disavowed the admiral on 24 February 1844.
A brief conflict opposed France to Morocco in 1844 because Morocco refused to sign the Treaty of Tangiers, which allowed cruisers of the signatory states to control merchant ships in order to check for slaves. This “right of search” did not fail to raise trouble between France and England for a while, as English cruisers, outnumbering those of other nations, exerted a de facto police of the seas. For “right of search,” see also the entry for “Slavery” in the Glossary of Subjects and Terms.
France supported Mehemet Ali, pasha (governor) of Egypt, in his views on Syria, part of the Ottoman Empire. England and Russia supported the sultan.
The “right of search” refers to the disputed and resented policy of the British navy of stopping and searching suspected slave ships on the high seas. See also the entry for “Slavery” in the Glossary of Subjects and Terms.
Following the 1840 diplomatic crisis, the government had fortifications built around Paris.
“You shall be as gods.”
“All is well.”
“It will be argued.” [Nicolas Boileau-Despréaux (1636–1711), Satire X, Œuvres (1821), vol. 1, p. 293.]
See the entry for “Slavery” in the Glossary of Subjects and Terms.
The 1848 Constitution did not provide any means for resolving a conflict between the president of the republic and the Assembly. The president could not dissolve the Assembly; the Assembly could not overthrow the president (short of extraordinary circumstances).
The president was elected for four years; the Assembly, for three years.
T.311 "Speech in the Assembly on Amending the Electoral Law (Third Reading)" (10 and 13 March 1849)↩
SourceT.311 [1849.03.10] "Speech in the Assembly on Amending the Electoral Law (Third Reading)". Speech to the National Constituent Assembly, 10 and 13 March 1849, CRANC, vol. 8, pp. 507-9, 513-14, 542- 44, scattered interjections on pp. 546, 547. Not in OC. CW4
Editor's IntroductionThis is the 10th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
See the Editor's Introduction to the previous speech for more details about the content of this Speech (above, pp. 000). This speech should be read in conjunction with a 72 page pamphlet he wrote at the same time, "Parliamentary Conflicts of Interest" (March 1849). 1402 As we saw in his Speech in the Chamber on changing the tariff on imported salt (11 Jan. 1849) (above, pp. 000) his health was failing to the point where he could barely speak to make himself heard in the Chamber so he wrote out his speech ahead of time and circulated it as a pamphlet so he could still get his point across. Nevertheless, this speech was a long one (nearly 4,000 words) with a follow up speech 3 days later, and it must have been quite a physical effort for him to give them.
The discussion begins with reference to an amendment put forward by Joseph Degousée, 1403 a member of the Chamber's Public Works Committee, in order to rectify this unequal treatment of different public servants and state employees. It stated that:
At the completion of their mandate as a Representative of the People, public servants who have temporarily left their permanent positions will have the right to the first vacancy (which appears) in a position which they exercised before they became Representatives; but they will not be eligible for a promotion before six months after the end of their legislative mandate. 1404
However this was rejected by the Committee looking into revising the electoral law. Bastiat takes the floor to defend Degousée's amendment and to speak in favour of treating all public servants and state employees equally, or in his words "to separate the man from his function." The Chamber then takes a vote and Degousée's amendment is defeated. Bastiat's next step is to propose his own amendment to Article 81 by eliminating one word. Article 81 stated:
According to Article 82 of the Constitution, the following are exempted from the conflict of interest (clause) stated in this article between all paid public positions and the mandate of a Representative of the People:
- Ministers.
And the word Bastiat wanted struck out of the clause was "Ministers". This would make all Deputies subject to the conflict of interest (clause) and thus they would not be allowed to be Ministers in the government while they were serving as Deputies. Bastiat then gives his long speech on the dangers caused by ambitious Deputies who wish to become Ministers in a future government by forming parties (or "coalitions" as he called them) to undermine and overturn the current government so they can form a new one. He gives as a bad example the recent history of "oligarchic" Britain, and as a good example the practice of the republican government in the United States and the French Revolutionary government of 1791.
Alphonse de Lamartine, 1405 Deputy representing Bouches-du-Rhône, replied to Bastiat's speech and opposed most of his points. In his counter-reply, Bastiat warns that political infighting and revolving door governments will eventually make the electorate cynical of politics and that such governments are more concerned with "politicking" (la politique") than with more important legislation such as economic reforms and free trade.
The debate was taken up again three days later (13 March) when Bastiat speaks for the last time in an attempt to persuade his colleagues to ban Deputies from also serving as Ministers in the government. He likens that to judges being able to impose fines and keep the proceeds for themselves. He predicts that Deputies who are constantly trying to overthrow the current government and install themselves in a new government will turn the Chamber into political "field of battle." The only way to prevent this, he believes, is to get rid of the incentive to fight such political battles in the first place, namely the hope of Deputies becoming Minister. Only then will France be able to have political stability and a chance to have "cheap government" (le gouvernement à bon marché).
Later that day, the Chamber voted against Bastiat's amendment.
In a letter to his close friend Félix Coudroy in Mugron Bastiat recounts the saga of his failed amendment, of how he went from having initially a mere 10 Deputies in support, thinking he had won over a majority after his speech only to have Adolphe Billault 1406 send it back to the Committee for further discussion, and finally realising that pubic opinion had turned against him and that he ended up with only "a minority made up of a few enthusiasts" who didn't really understand what he was getting at. 1407
Bastiat's contributions to the discussion were broken up by the to-and-fro of debate which took place over several days. For reasons of space we have only included his contributions wherever possible and have indicated the breaks in the discussion accordingly. To conclude, we include a one line interjection by Bastiat during Adolphe Billault's disparagement of any discussion about free trade.
TextPart 1 (10 March, 1849) 1408
Citizen President: 1409 M. Victor Lefranc 1410 has the floor and is speaking on behalf of the Committee.
Citizen Victor Lefranc (for the Committee): The Committee has been asked for the reason why it has rejected (M. Degousée's) amendment. Here it is: if the Assembly wishes to revisit the vote concerning "parliamentary conflicts of interest" it has the means to do so; that is to adopt the amendment proposed by M. Degousée.
You put forward the opposing example of engineers and military officers. Here is the difference. You want the civil servants, magistrates for example, who have quit their positons as required by law, to have the right to the first vacancy (which appears) after the expiration of the legislative mandate. This is not what you did for the army officers and the engineers; you have let them keep their rank and their area of competency, but you have not let them explicitly keep the right to the first vacancy (which appears). (From the Assembly: Yes (we have)! Yes (we have)!) Excuse me! You decided that army officers, for example the commander of a battalion, upon the expiration of his legislative mandate, would have the right to claim the first position as commander of a battalion which became available?
I have to admit that I thought you had intended letting the army officers keep their rank but not their job.
As for the engineers, what have you done? You have let them keep their area of competency as stated by their rank which they had at the moment when their legislative mandate ended. But you have decreed that the Minister of Public Works should appoint them to the first engineer's position which becomes vacant in a Department or an Arrondissement? (No!)
What you didn't do for the army officers and the engineers you shouldn't do for other public servants, for a magistrate for example, because a magistrate retains his area of competency. A Superior Court Judge who hands in his resignation in order to become a Representative (of the People) no doubt will not have the right to the first vacant position as Superior Court Judge; but he will be put forward as a candidate.
See what difficulties this amendment will cause.
Let's say you are the Superior Judge in a Department. You have all the skill for that position; you are familiar with the jargon; thus, you are the most suitable magistrate (for the position). Well then, the first available vacancy is as a Superior Judge in a Court of Appeal which is a much more important position in another district and under other conditions, and you would have the right to exclude a more suitable (candidate) from this position for which he has no knowledge! That can't be right!
Various voices in the Assemble: We call for cloture! For cloture!
Citizen Bastiat: I demand the floor to speak against Cloture.
Citizen Representatives, I don't believe the Assembly would want to close the discussion on a question as important as this. It is impossible (to think) that the Assembly would not be struck by the seriousness of the issue before it, and furthermore it seems to me impossible to close the discussion before, so to speak, it had even begun.
Indeed, what is the question at hand? It is a question of knowing if, among all the civil servants there is a category that one will completely set apart and so to speak make it an exception.
It is quite true that the Constitution states that there is a conflict of interest between the job (of a civil servant) and (having) a legislative mandate; but what the Assembly intended to prohibit was the function not the person. When it was a question of army officers, sailors, and engineers, what did the Assembly do? It took advantage of some previous legislation which certainly had not been passed for this purpose which allowed it to separate the rank from the job; as I said, it took advantage of that separation in order to rule that the civil servant could keep their rank, and I think that it has been a significant (decision). What should the Assembly do? It is not to exclude individuals, but to exclude the danger of (men being dependent on others?). From the moment the job is left at the door, from the moment the civil servant who is called here is shielded from any hint of fear (or) of hope, there is no longer any danger.
Well then, what we have done on the strength of some previous legislation, what we have done for the army officers, what we have done for the sailors, I ask that we also do for the magistrates, and for the tenured public servants. We have been made responsible for drawing up the electoral law; so here, by means of a special clause, we can use the idea that the previous legislation has given us to do (what we have to do); it is up to us to find the way.
Well, I would like us to separate the man from his function; that the judicial life of the magistrate should be suspended from the moment he accepted the legislative mandate. But for all that, I would not like his previous service (to count for nothing), no more than the military officer loses his; the officer does not lose his rank, (but) his duties are suspended. Well then, so would the duties of the magistrate be suspended. It seems to me that M. Degousée's amendment addresses this goal, that it satisfies all guarantees that the Assembly ought to require.
I submit for the Assembly's (consideration) another observation, which is this: I do not think that there is in this Assembly what one might call a prejudice against civil servants themselves. What is feared is the danger which they could bring within the walls of the legislature. This danger is of two kinds: it is that the number of civil servants could be too large, as it was in an earlier period; or that the civil servants would be subject to the whims of the executive power.
Today with universal suffrage, with the suspension of administrative duties which (would be) a condition (of election) for civil servants, you will have nothing to fear about a very great number of them entering these walls. On the other hand, those who do come here will be in a situation of complete independence, in a condition of perfect equality with their colleagues; and if they are here it is because their fellow citizens have judged them to have the virtues necessary to be sent here. Thus I do not see any reason for excluding them.
But I will go even further. (Cries of "No! No! Put it to a vote!") Universal suffrage is a principle which is eminently absolute and jealous; you cannot limit it in an arbitrary manner, you can only limit it when society needs to erect some safeguards. I completely agree that one might say to civil servants: "You are public servants, you cannot be legislators at the same time." But if the civil servant gives up his duties and thereby puts himself in an independent position, all the safeguards society requires are satisfied, and anything else would only be a war against public civil servants, (an act) unworthy of the Assembly.
Citizen President: I will reread the proposition made by M. Degoussée, which will be placed as an additional article after article 80:
At the completion of their mandate as a Representative of the People, public servants who have temporarily resigned their permanent positions will have the right to the first vacancy (which appears) in a position which they exercised before they became Representatives; but they will not be able to get a promotion before six months after the end of their legislative mandate.
I will now consult the Assembly.
(The proposition of M. Degousée is put to a vote and is not adopted.)
Citizen Charras: 1411 I propose, in order to completely integrate all the civil servants who, when they enter the Legislative Assembly, will have resigned their jobs, to guarantee them half of the vacant postions.
(Gasps from Members in the Assembly.)
This is what happens in the Army.
Citizen Rancé: 1412 Don't bet on it!
Citizen President: Does the amendment proposed by Charras have any support? (No! No!)
Then I won't put it to a vote.
I put to a vote Article 80.
Citizen de Kerdrel: 1413 Pardon me, but I propose a change of wording in accordance with the Committee.
Citizen President: You have the floor.
Citizen de Kerdrel: It is a simple change of wording which I have the honour of presenting to the Assembly, with the agreement of the Reporter from the Committee:
Any civil servant who receives payment and who has been elected a Representative of the People, and who is not included among the exceptions granted by Articles 77 and 78, will be deemed to have resigned from his position by the sole fact of their admission as a Member of the Legislative Assembly; unless he has made a choice between his government position and the legislative mandate, before the verification of his powers.
Would you like me to tell you the reason for this change?
(Yes! Yes!)
Here it is in a couple of words. It is that, according to the Article (drawn up by) the Committee, one would be required to do something, which on the face of it, one couldn't do. By putting the civil servant in this position, quite evidently he would never make this choice before the verification of his powers.
Citizen President: The Assembly understands the wording which M. de Kerdrel proposes with the agreement of the Committee; I will put it to a vote, whilst noting that we have to substitute in this wording, Articles 81, 82, and 83 for Articles 77 and 78.
(The new wording of Article 80 is put to a vote and is adopted.)
Citizen President:
Article 81. The following, according to Article 82 of the Constitution, are exempted from the conflict of interest (clause) stated in this article between all paid public positions and the mandate of a Representative of the People:
- Ministers.
M. Bastiat proposes the removal of this first paragraph. (There are loud gasps).
Le citoyen Baraguey d'Hilliers: 1414 The Assembly has already removed this proposition in the previous question.
Various voices: We can change our minds! (Lively agitation)
Citizen President: M. Bastiat has the floor.
(The Citizen president says in a low voice a few words to Citizen Bastiat who has climbed to the lectern.)
Citizen Bastiat: M. President pointed out to me that at the time of the second reading of this proposal the Assembly had voted on the previous question.
Several Voices: That is incorrect!
Citizen Bastiat: I was not present at that time but that surprises me a lot; because I don't think that in any legislature a more serious question could be raised. (That is true!) The question occupied our (fore)fathers for a long time; they decided along the lines I have suggested. Only in England, an aristocratic country par excellence, have they decided (to do) the opposite, and in France during the Restoration, we followed that example. So I think my proposition is not as untimely as the previous proposal which opposes mine would have us believe. (No! No! Speak!)
I do not know of any (political) conflict of interest as false in principle and as harmful in its application as that where a Representative (of the People) can become and aspires to become a Minister.
Our representative government is an extremely simple mechanism. On one side, there is the executive power which appoints its agents and puts the Ministers in charge of them (the Ministries). On the other side, (there is the) Assembly of the Representatives of the People who control the activities of the executive power and its agents, who evaluate the political conduct of the Departments, which approves them if they are found to conform to the interests of the country, (or) which refuses to give them its support in the opposite case.
So it seems that there is a radical conflict of interest between these two things; because it is clear that, if the voters say to the representatives "Go to the Assembly and when the Minister proposes sound legislation vote for them, regardless of the people involved; and if he (the Minister) proposes bad laws, reject them. As I said, it is clear that, while the voters use this language, the law uses another (language) and says to the Representatives, "You too could be Ministers (one day), all you need to do to achieve that is to expose the mistakes of Ministers." Can't you see what difficulties, what plots and intrigues the same language will immediately create in a National Assembly? (Very good! Very good!) As far as I am concerned, I am quite taken aback by this. I am taken aback perhaps because, just as this always unfortunately happens to everybody, when one is very busy with one question, one is perhaps too preoccupied with its importance, and one exaggerates it. But whether I proceed by reasoning or by consulting the facts, I believe that there is no greater danger than this combining of powers in the person of the Representatives. If you want to look for the causes of almost all the great political disasters, of all the useless wars, the excessive expenditure, the squandering of public funds, and corruption, you would almost always find them in the (political) struggles, in the plots, in the coalitions which the admission of Deputies to (the position of) Minister inevitably gives rise to within the heart of elected Assemblies. (Very good! Very good!)
Messieurs, I think that you would have had to have never cast your eyes over the parliamentary history of Great Britain, 1415 and furthermore, to have been asleep since 1814 up until the present, not to be struck by these dangers.
As I have said in a small pamphlet which I have had distributed … (Ah! Very good! Go on!) As I have said, I challenge anyone of the Representatives to dare vote for a similar organisation for the General Councils, 1416 I challenge you to argue that, in the General Councils, when an organised opposition has formed which will attempt to put the Prefect in a position where he will not be able to function, the head of this opposition will (not) be the one who will (attempt) to become the (new) Prefect. None of you would want to wish this on your own Department, and yet you are going to introduce it here within the walls of the legislature where the questions are much more pressing.
Indeed, these parties of which I speak are generally composed of heterogeneous groups, cannot get along with each other, and create great difficulties for the future when they do get into power. How do these coalitions fight to create a breach in the (walls of the) Ministry? They fight by asking the most burning questions, questions about war or peace, and very often by misrepresenting the mind of the public. What party couldn't take (control) of a Ministry which has to face a coalition which has been created by uniting, it is true, 4, 5, or 6 various parties, but which is enough to form a majority against it? It has no other choice, and I don't approve of this, but it has no other choice but to create a majority of committed supporters on its own side. This is what we have always seen, and I challenge you to find an example of a Ministry which has lasted a few years which hasn't found a way to create a closely knit and determined majority which was willing to go to the bitter end, (even) leading to revolutions. (Activity from the Chamber which shows marked agreement.)
I will conclude with an important observation, and it is this: in all periods and under all forms of representative government I would call for a ban on Deputies becoming Ministers. But I believe it is to fulfill a very urgent duty to call for it now under the present constitution, because according to our Constitution it is impossible that a ministerial crisis would not become, at this very moment, a much greater problem, namely a conflict of power. (There is murmuring among the Deputies.)
I should express my views (more) frankly. (Speak! Speak!)
Under the regime which has recently fallen, 1417 ministerial crises caused immense harm. You can call upon the (personal) experience of those who have survived them. I am convinced that they will confirm what I have said at this lectern. But in the end, there was a legal solution: when a coalition had formed, when the Minister had fought (against it), the country was able to hear (about it) and form an opinion, often false it is true, but they were able to form an opinion about the relative value of the coalition against the Minister. Then the King could dissolve the Assembly and call upon the electors (to resolve it); the electors decided by voting for a majority; and it was the country which decided between these two powers. Today, we no longer have this method. 1418 If there is a ministerial crisis, if the coalitions, if the parties are able create an organised opposition, then (we have) a conflict of power, a conflict without any possible solution, or at least there can be only one solution which all of us should dread.
If we were able to rise above all the other (types of) regimes because we had some complicated (constitutional) mechanism, we would be able to avoid to a certain degree these problems. But today because the Constitution does not allow for any mechanisms which moderate or counterbalance, if you prefer to call them that, we are always in the presence of a conflict of powers with each ministerial crisis, and the question comes down to knowing whether or not the admission of Deputies as Minister is one cause of ministerial crises and conflicts of power. There cannot be any doubt about this. All it takes is for a political problem to arise and cause great political passions to burst into flame and for parties to begin forming. I am not saying that in my system there would not be coalitions. They would would form at least in the area of (political) principles, since personal ambition would be out of the picture. (Very good! There is some agitation.) But would it be this way if the law said to the Representatives: "A Ministerial portfolio is the prize for victory!"
And note that this dangerous language is addressed precisely to the Representative who has the greatest value, the greatest merit, the greatest genius, the greatest force of character, to he who feels he has the strength to carry the weight of public affairs (on his shoulders); these are the men who, unfortunately, will turn their talents against the public good (There is noise and murmuring), because he will have a personal interest which will drive him on in spite of (these talents). It is not necessary to know the human heart to say the contrary. (Various emotions are expressed).
Messieurs, I will now stop. I will limit myself to these brief observations. I will conclude however by saying one thing: I will not give up (my cause), (but) I would not be at all opposed to (the idea) that an exception to what I am proposing were made right now for the first cabinet which will be formed following our dissolution, 1419 because it would be (formed) with a clean slate.
What we want to avoid are coalitions, and they will not be able to be formed at the very beginning of the Legislative (session). I have my heart so set on getting my proposed (amendment) on parliamentary conflicts of interest accepted (by the Assembly) that, if, by this means, I could rally some votes in support of it, I would not insist on this point (now) because I do not see any (great) harm in it; apart from that, I will continue with the amendment I have proposed. (Noisy and prolonged agitation. The meeting is interrupted for several minutes.)
Citizen President: M. Charlemagne 1420 has the floor, representing the Committee.
Citizen Charlemagne: The Committee rejects the amendment of the Honourable M. Bastiat. (The noise continues.)
Citizen President: If the Assembly has decided not to listen we will adjourn the session. (Silence is re-established.)
Citizen Charlemagne: Citizen Representatives, the Committee asks you to reject the experiment which the Honourable M. Bastiat has proposed for you to undertake because it thinks that this motion could be dangerous.
Part 2 (10 March, 1849) 1421
Citizen Lamartine: 1422 Will you take a moment to reflect with me, quite seriously, upon the picture of great political ambitions which the Honourable M. Bastiat painted for you a moment ago, as a form of political agitation which is fatal for our country? But, my God, those great political ambitions, by the very fact that they are great, are not vulgar, they do not stem from greedy interests grasping after the emoluments of power, they do not even arise from the appointment of a minister, all it requires for them to appear is to (be able) to rule by using others as proxies, all they will need are some straw ministers. (That is what they say! That is what they say!) We will have what happened in 1791, under the Ministry of the Girondins, 1423 the Vergniauds, the Brissots, all of them truly honourable men, Clavière himself, this financial authority, who until then had enlightened us with the policies of Mirabeau, 1424 all these men will (have to) disappear from the political scene, they will stay behind the curtain and get others to act in their place (That is what will happen! That's true!). These men, these orators from the Gironde whom I have mentioned, wouldn't deign to be ministers, and the obscure ministerial agents which they would put in their place will obey them, will do a "10th of August", 1425 and will overturn the throne and the constitution!
Here is a system of unaccountable (government). (Very good!)
Therefore, Messieurs, by adopting M. Bastiat's amendment you will not be able to avoid any of the problems from which he intends to save his country. But, would you like me to tell you what you would create, in a deadly moment of thoughtless action, (if you did adopt it)? (Yes! Yes!)
You will have greatly demeaned the standing of the National Assembly, to the detriment of the Republic by making (its) pre-eminent (members) disappear, men who will build the respect and power it has in the world!
On the other hand, you will have created the danger of the non-accountability of ministers who will get their subordinates to answer on their behalf. (That's true! That's true!)
Finally, you will have created the worst of all governments, the anonymous government! (Numerous expressions of approval).
(From all quarters, speak! speak!)
Citizen Bastiat: I ask for the floor in order to reply with a few words. (Speak! Speak! Put it to the vote! Put it to the vote!)
Citizen Representatives, I owe it to myself to reject the criticism which has been made that I introduced this amendment in an unexpected and surreptitious manner to the Assembly. (No! No!)
Messieurs, I presented it at the time of the second reading, and then by other methods I made sure that the Assembly was made aware of this. 1426
The Honourable Speaker, with the great impartiality which is typical of him, pleaded both sides of the question. Firstly, he emphasised the problems of the present law, then he spoke about the problems with my proposition.
I freely admit that what struck me the most and what has remained in my mind, as a natural cause for concern, are precisely those problems which he later thought to refute. In a word, I was more struck by the beginning of his speech than by the end of it. He painted for us a picture of coalitions and the harm that they lead to. He spoke about it as someone who has been a spectator for a long time, but not as a participant. The consequence of this sad picture has not been removed by the final words of this illustrious orator.
Allow me to remind you of a problem of the most serious gravity, of the highest significance, something that I did not mention when I came to the lectern for the first time: it is the spirit of scepticism which the system I oppose tends to spread throughout the nation.
It is clear to whomever observes the games (played) by these coalitions that they all proceed in the same manner, they only have one way to succeed, that is to get popular opinion on their side, to ensure that the efforts of all the coalitions are always to attract public opinion, to win over to their side the most sympathetic (people), those with the most sensitive temperaments, with a disposition towards patriotism, towards hatred of foreigners, and towards foreign wars. 1427
Citizen Manuel: 1428 That is not too bad (a thing)!
Citizen Bastiat: Only if they are joined with very sound principles, but this is almost always never achieved.
A Voice: Like the socialists.
Citizen Bastiat: But what happens? When the coalition is successful, regardless of all the difficulties they had in trying to get along with each other, and the duration of the Ministerial crises, what happens is that these same men who had displayed these grand principles when in opposition, once they get into power are very soon after obliged to follow the policies which they had (previously) opposed. (Very good! Very good!)
I think that what I have just said is more a matter of fact than of pure theory. What happens is this: the nation, which was used to admiring the lofty principles of these men, used to having confidence in them, and which believed them to be the saviors of the country, is (now) quite surprised to see them humbly following the policies which they had condemned and castigated (for so long. (Strong agreement.)
If there had been only one coalition like this, only one similar case, it would pass without notice; but when there is a series of cases which occur over the centuries the nation says to itself: there is no longer any faith to be had in men; we must resort to force; we no longer need any more speech makers, we need men of action. I believe that if the French nation displays political scepticism the cause lies in the variability of the opinions of those men who have taken turns in crossing over from the organised opposition to being in power. (Very good!)
This variability of opinions creates in the men who come down from being in power, and who are going to form coalitions, a kind of weapon at the ready: they only have to come here, to the lectern, to remember the words spoken a few months before by the Ministers who have replaced them in order to undermine them, and that is their intention.
Citizen Odilon Barrot: 1429 That doesn't undermine them very much. (Agitation in the audience.)
Citizen Bastiat: That may not affect you personally, but it does affect popular opinion.
Citizen Odilon Barrot: (Public) opinion is more correct than you think it is. It has better judgement than you suppose.
Citizen Bastiat: We were talking about politics. I said that the system I was discussing lowered (the level of) politics.
Citizen Representatives, far be it from me to lower the quality of my country's politics, but I admit that if I supported my amendment with some vigor it was because I hope that it will lead to the limiting of the domain of politics.
I believe that politics takes up too much of our time. In my view, for too long it has taken up the time which we ought to have spent on matters relating to the economy. In the previous Chamber (I wouldn't want to talk about this one), when it was a question of a motion of confidence, oh my goodness!, there was a great deal of eagerness in the Chamber! All minds were focussed on the big question which had just arisen, because it was a question of a ministerial matter, but when it was a matter of economics, it was quite different.
Several Members: That is the same thing.
Citizen Bastiat: It is clear to me that the terrain on which coalitions can fight with some benefit is the terrain of politics. They also are always looking for ways to make the domain of politics prevail over the domain of economics. Under the representative system we have gone through many sessions and have seen that economic matters have been neglected and always sacrificed for political matters.
Thus, it is not an argument against my proposition to say that it limits the domain of politics. That is what I want. (Put it to a vote! Put it to a vote! No! Speak!).
Yet another objection has been raised: it has been said that politicians, men of great talent, will have to choose between two parties: one where in order to get elected one gives up hope of ever being a minister, or one where one doesn't get elected a representative of the people in order to be able to retain the means of becoming a minster; (thus) it has been suggested that there is the danger that men with very great talent will stay outside the Assembly. But we have forgotten, I believe, that in order to stir the passions a theatre is required, there needs to be an audience. Now, it is here that the great passions are stirred, it is here that coalitions are formed. It is much more difficult to form them outside.
These men of talent and genius which people talk about, certainly I respect them and honour them more than anyone; but the present law which allows them to become a Minister, turns this genius, which we ought to admire, against the public good. They serve it (the public), but why? Very often to do harm, without being aware of it themselves. (Very good! Very good! - Murmuring from some benches.)
Gentlemen, it seems to me that one reduces the value of the legislative mandate considerably if one thinks, says, or insinuates that the genius of a great man would be useless because this man will only be a representative. On the contrary, I believe that if he is only a representative, if he can only be a representative, he can (still) have very great authority in this Assembly, an authority which will be all the greater since it will not come under any suspicion (of his motives); he will have influence over the Ministers, he will not be a Minister, but he will influence them in a direction which will conform to the public good.
On the contrary, if this man of genius …
Several voices: Put it to the vote! To the Vote!
Many voices: Speak! Speak!
Citizen Bastiat: If, on the contrary, this man of genius, as one sees all too often, only tries to discredit the Minister, if he only intends to hinder all his negotiations, and all his measures, couldn't one say that he would be worth more if he had no genius and if he sat quietly on the back benches? (Noise from the Representatives.)
A Member: That sometimes happens!
Citizen Bastiat: I will no longer waste the time of the Assembly. (Speak! Speak!)
I continue to support my amendment more than ever, and if the Assembly is disposed to think that it was introduced in an unexpected way since I had changed the wording, I would ask that be sent back to the Committee. (Yes! Yes! - No! No!)
Part 3 (continued on 13 March 1849) 1430
Citizen Kerdrel: You are discussing the amendment of M. Sarrans, 1431 not that of M. Bastiat. You are confusing matters.
Citizen Culman: 1432 Well, in that case, I will speak on M. Sarrans' amendment. The effect of the two amendments would be the same …
Citizen President: M. Sarrans' amendment is not yet under discussion. It will come after that of M. Bastiat's.
(Citizen Culman leaves the podium.)
Citizen President: M. Bastiat has the floor.
Citizen Bastiat: Citizens Representatives, I hope that the Assembly will indeed permit me one last attempt to argue in favour of my amendment.
I agree that this amendment has some powerful forces (arrayed) against it. First of all it has the force of habit against it, as it has been a long time since were had to get used to another regime. Then it has the fear of change against it, since at this moment (fear of change) naturally exercises considerable influence after all the troubles we have experienced. It also has all the eminent men of this Assembly against it, and perhaps this secret influence is (just) one of those elements which (make up) human nature. However, one cannot deny that three days ago this amendment managed to gain some support from the benches. That would require that it had something in its favour.
Several Voices: It has its author in its favour!
Citizen Bastiat: No, it is not its author. I think that all the press outlets are unanimous in recognizing that my oratorial talents count for nothing, and I recognize that myself quite humbly. But he (the author) does have a single thing (going for him), and that is common sense.
Citizen Saint-Gaudens: 1433 And the law.
Citizen Bastiat: In the end, what is it that I am asking for? It is that he who has the honour of being elected as a Representative (should) stay a Representative. It is quite simple. And I will add that, if by some misfortune, you dangle before this Assembly some bright and shiny object coveted by (so) many people, I'm not saying a hunger for wealth, that is not my intention, but for other things, such as the desire to see one's long held beliefs prevail. 1434 If one dangles this lure in this Assembly, as soon as a Representative has received his mandate, namely to control the power (of the government), it (the mandate) is tainted in its (very) principle and in its essence, and as a result, the entire representative system is distorted. (That is true! - Very good!) That is my proposal. It appears to me to be grounded in logic. But if I then consult the facts, since logic can sometimes mislead us, (and) we must closely examine the facts, if we peruse the constitutional history of France and England, the entire world will agree, and M. Lamartine does agree, that this ability to become a Minister has produced considerable harm.
What has been put forward in opposition to my (proposal)? In my view, only some vague generalities which are so unspecific that they are not refutable.
For example, I am asked: do you intend reforming the human heart? won't there always be (human) passions in this world? do you want to eliminate vice? do you want to order (people to be) virtuous? Certainly not! But isn't there any difference between suppressing vice and offering it a huge incentive by means of legislation?
I imagine that you could find in the Civil Code a law which authorised judges to impose fines for their own profit. You would say: Here is a law which is absurd, imprudent, risky, and detestable. And if as a result of these facts you were told that this law resulted in judges gorging themselves with scandalous wealth and those subject to the law being ruined, you would demand the repeal of this law.
Well then, if someone then said: "What's the point? There will always be human passion in the world, there will always be bad judges, one cannot order (people to be) virtuous." Wouldn't you consider that reply quite inadequate?
A Member: That is no analogy.
Citizen Bastiat: Someone says that it is no analogy …
Several Members: Yes it is! Very good! Continue.
Citizen Bastiat: The Chamber of Deputies has been compared to an arena. It is absolutely essential for the well-being, stability, and the tranquility of the country that this arena is not converted into a field of battle.
Well then, I see (before us) a prize of incalculable (value), much sought after, and coveted to the nth degree and I see immediately a battle breaking out. I think that there is a correlation between these two things, and (so) I say: Get rid of the incentive if you want to get rid of the battle.
In reply you say: "What is the point? There will always be human passions." I know very well that there will be (such passions), especially if you feed them.
There is another objection which has been raised, which I will not spend much time addressing, namely the unity of the Republic. M. de Lamartine quoted this great maxim, " The Republic, one and indivisible ", and came to the conclusion that there would be a "fracture" 1435 between the two branches of government if Representatives could not be at the same time Ministers.
But I will observe in passing that it is the constitution itself which not only states that the branches ought to be separate and distinct, but even states that this is the basis for any free government.
One has also spoken of (Ministerial) responsibility. I confess that I have found it impossible to understand the argument that they are making against me. Responsibility is written into the constitution. In my system as well as in the one which exists now, (Ministerial) responsibility will be implemented. It has been said that in my system the High Court of Justice will be the end point for the resolution of all the major political questions. This is possible if the constitution wanted it it (to be) this way. But here is the difference, in the present system the intervention of the Court of Justice threatens to intervene several times a year, while in my system it would certainly be extremely rare.
Finally, if you agree with (only) one part, as I think everybody does, that the ability given to the Deputies to become Ministers is a source of political coalitions and, as a result, of ministerial crises. If you agree on the other hand, that in this fight passions become embittered and are inflamed, then you ought to necessarily conclude that the arguments of the prosecution are necessarily more numerous against the present system that against the one I am proposing to you.
It is an argument, or rather a feeling which I very much want to oppose.
From that part of my amendment which has a democratic aspect, it has been concluded that it was directed against the executive branch, that it was designed to weaken and diminish it, and to make its exercise more difficult.
Citizens, I appreciate perfectly how such an impression might militate against my amendment, in the circumstances where we find ourselves today, at a moment when the tide of opinion is more in favour of re-establishing things the way they were previously, than in making them advance further.
From the Left: Very good!
From the Right: Let's get on with it!
Citizen Bastiat: I don't think that there is anybody on the benches of this Assembly who appreciates more than I do the benefits of stability and security, (which are) the main benefits for the entire world and for all classes. I may be deceiving myself, I may be deluding myself, but it must be either that this illusion is much deeper, or that I am quite poorly informed; because I (do) believe in granting considerable power to the executive branch, I do believe in protecting it from shocks and from intrigues against which it would not be able to resist.
And I am convinced that if it were permissible for a candidate for the (office) of President of the Republic to impose conditions on the voters, the first condition ought to be this: elect me President if you wish but don't impose on me the obligation to choose my Ministers from (members of) the Assembly, because my position would be untenable. 1436
A Member: The President is not obliged to do that!
Citizen Bastiat: I am told that he is not obliged to do that. I know that full well, but those who interrupt me also know full well that the way in which things happen the King or the President is required to choose Ministers from the Majority in the Parliament, so that it has become an obligation which is not written in the law but which is the inevitable result of it. And indeed Citizens, take note for a minute the manner in which these things happen. There are enough facts from our history to enlighten us on this (matter). In the long run, how are coalitions and Ministers formed? Here we have (the explanation), I think.
In the Assembly there are a certain number of groups each of which has a man of great talent as its head. These groups are divided by some differences of principles, sometimes only by nuances (of principle). Whatever the case may be, it is not long before they feel the need to get along with each other, if not on their principles (which is quite difficult to do), at least on a key point which is to overturn the Cabinet which is in their way. These various groups have not joined forces to achieve the victory of a great cause, since they do not agree on their principles. Instead, they choose whatever issue is suitable for them to achieve their goal, especially a foreign matter. They look for ways to excite feelings of (national) patriotism and to swing popular sentiment to their side. For example, they (might) choose the question of whether a certain patch of ground in Syria should be governed by the Pasha of Egypt or the Grand Turk. 1437
Thus the opposition will win and the Minister will lose ground every day. Finally, the moment will come when the latter will have to resign.
Now I ask you, what would be the position of a President of the Republic in such a situation? How will he choose his Ministry? Will he choose the leaders of these various groups? The first difficulty he would face is (their) personal ambition. For one of them, such a portfolio would be too lowly; another would like to be the President of the Council (of Advisors); yet another would say "I have been Minister of (such and such) Department and I do not want a demotion," etc. Here is the first difficulty faced by the President. He will often meet another in the principles which he will not be able to reconcile. But I admit he (will be able to) overcome the crisis as soon as he forms a new coalition made up of all the disappointed aspirants and all the Ministers who have fallen from power, ensuring that you march towards a new crisis.
Citizens, under the previous regime there was a remedy for this situation, from the point of view of the government, quite a sad and deplorable remedy, but at least it existed, namely parliamentary and electoral corruption. By dint of changes in Ministers it could happen that (a government) emerges which could not care less how it created a majority by any of the means available to it as a result of the parliamentary practices and the electoral law of that period.
It is in this way that the only Ministries which have lasted any period of time have survived.
However shameful this means (of winning power) might be, and however disposed I might be to believing that the President of the Republic 1438 would not resort to (using) it, it is no less true that it is no longer available to him because of the changes which we have made to our constitution. On the one hand, (Ministerial) positions are forbidden to the members of the Assembly, and on the other hand, universal suffrage does not even allow the thought of corrupting the electorate.
So Gentlemen, if you draw the logical conclusion, by dint of what I have just said, the President of the Republic will find himself faced with perpetual and never ending ministerial crises, without having any means of even arriving at the kind of stability enjoyed by the Ministries of Villèle 1439 and Guizot, 1440 which was as little desired as it was secure.
I am saying that this position is untenable for the President of the Republic. George II cursed his crown so tired had he become with these crises; George III went mad; 1441 two dynasties have fallen in France, and I do not see how the President of the Republic, even less well armed (as they were), will be able to hold onto his position.
Several Members: Enough! Put it to the vote!
Other Members: Speak! Speak!
Citizen Bastiat: Perhaps I am pushing things too far; if you reject my amendment, so be it! But I think that the day will come when the President of the Republic will come to beg you to adopt it.
I will end with an final observation.
The Honourable Speaker said something from a moral perspective. I think that that has not been examined sufficiently. Some people are too inclined to believe that the harm, which it is agreed, results from the clause in the law which I reject, will be confined within these walls. This is not what I believe. I believe that they extend across the entire nation. I think that the legal clause which I am talking about, from which comes the perversion of representative government (itself), tends to spread (a feeling of) indifference, a (certain) scepticism, and a selfishness among the public, things which are the real harms to our (current) situation and our historical period.
So Gentlemen, go into the provinces, talk to ordinary people, the inhabitants of the countryside, the people who judge a cause by its effect and a tree by its fruit, what will they say to you? They will say: "Representative government is good in theory but in practice it keeps none of its promises. Since it puts in your own hands the purse strings (of the nation) it appears that it should be able to at least bring about "cheap government", 1442 however, we see our finances in disarray, the debt increasing, taxes growing, and in spite of all these sacrifices, we are not even able to get that security, that stability that we are paying so dearly for.
This is what they will say, there is their faith in (our) institutions!
If you reply to them: "Be patient. There is a new opposition which is being formed and which has a chance of (coming to power) in a little while …"
From the Right: Enough! Enough!
From the Left: Speak! Speak!
Citizen Bastiat: If you reply to them: "Have confidence in this opposition. You will see that they will invoke the most beautiful slogans, they will only speak of liberty, or order, or economy," then these men will say to you "We know all that. We were promised all that a long time ago. It is always the same. Get out of my way so I can have a go."
So there is no confidence in the future. They have lost faith, not only in men but in the institutions. I am saying that this is a great harm, and if you think that this has no connection with the provision of the law which I am attacking you are deceiving yourselves, because if one has lost faith in the representative system, it is the representative system (itself) which is tainted, even to its core, by the provision of the law I am fighting. (Various noises - Put it to the vote!).
Part 4 (also 13 March, 1849) 1443
Citizen Billault, reporter from the Committee: 1444 … I know, for example, there is one party to which the Honourable Speaker belongs, which considers politics in the deliberating Assemblies to be a sort of plague, and who would like to reduce the Legislative Assemblies to the size of a Grand General Council which discusses with great care the question of free trade for example … (There is laughter).
Citizen Léon Faucher, Minister of the Interior: That has no bearing on the question.
Citizen Bastiat: Questions of free trade are questions about property.
Citizen Billault, reporter from the Committee: … But let us not become preoccupied with stirring matters of politics. You heard the other day the Honourable Speaker whine from this lectern about the fact that, when a matter of economics was debated the corridors (outside) had more people than the Chamber, but when maters of politics are raised the Chamber recovers all of its (lost) parliamentary population. I would be the last person (in the world) to want both this country and its deliberative assemblies to have (any) enthusiasm for a deep study of economic matters. …
1402 "Parliamentary Conflicts of Interest" (March 1849), in CW2, pp. 366-400. As pamphlet (Guillaumin, 1849).
1403 François Rose Joseph Degousée (1795-1862) was a military officer, civil engineer, and politician. He was active in the liberal Carbonari group which opposed the policies of the restored Bourbon monarchy during the 1820s, served with General Lafayette during the "Three Glorious Days" in 1830 when Charles X was overthrown by Louis Philippe, and helped found the Central Democratic Committee which organised political banquets to oppose Louis Philippe's regime in 1847. Degousée was elected to the Constituent Assembly in April 1848 representing la Sarthe, voted with the moderate republican group, and was a member of the Public Works Committee of the Chamber. He was not reelected in May 1849 and retired from politics.
1404 CRANC, vol. 8, p. 507.
1405 Alphonse de Lamartine (1790–1869) was a poet and statesman and as an immensely popular romantic poet, he used his talent to promote liberal ideas. Lamartine was elected Deputy representing Nord (1833-37), Saône et Loire (1837-Feb. 1848), Bouches-du-Rhône (April 1848-May 1849), and Saône et Loire (July 1849- Dec. 1851). He was a member of the Provisional Government in February 1848 and Minister of Foreign Affairs in June 1848. After he lost the presidential elections of December 1848 against Louis-Napoléon, he gradually retired from political life and went back to writing.
1406 Adolphe Augustin Marie Billault (1805-1863) was a lawyer and politician. He was a Municipal Councillor of the city of Rennes 1831-37, Deputy for la Loire-Inférieure 1837-48, and active in the political banquets movement in 1847-48. During the Second Republic he was elected as Deputy for la Loire-Inférieure in April 1848 but failed to be reelected in May 1849. He voted with the moderate republicans. He became active in politics again under Louis Naploéon when he was elected to the Corps Législative of which he was later appointed President, then Minister of the Interior. In his political and economic views he was anti-clerical and a follower of Saint-Simon.
1407 See Letter 130 to Courdroy (Paris, 15 March 1849), CW1, pp. 187-88.
1408 CRANC, vol. 8, pp. 507-9.
1409 Armand Marrast was President of the Constituent Assembly between 19 July 1848 and 26 May 1849 when the new Legislative Assembly was elected.
1410 Bernard Edme Victor Etienne Lefranc (1809-1883) was a fellow Landais citizen like Bastiat and was elected Deputy in the Constituent Assembly in April 1848 (topping the list of 7 candidates, Bastiat came second) and to the Legislative Assembly in May 1849. He studied law and became a judge at Mont-de-Marsan near where Bastiat lived in Les Landes, so they would have known each other. Lefranc was one of the leading figures in the liberal movement in Les Landes which opposed King Louis Philippe during the July Monarchy. His opposition to Louis Napoléon forced him to withdraw from politics and take up his legal practice again. During the Third Republic he returned to politics, becoming Minister of the Agriculture and Commerce (1871-72), Minister of the Interior (1872), and then Senator for life (1881-83).
1411 Jean-Baptiste-Adolphe Charras (1810-1865) was a solider and politician. As a young man he got into trouble for singing "La Marseillaise" and making a toast to General La Fayette. He later took part in the "Three Glorious Days in July 1830 which brought Louis Philippe to power. After he was sent to the Paris garrison in 1834 he became involved in liberal politics writing articles for Le National on military matters. After serving for several years in Algeria he returned after the February Revolution and was appointed an under-secretary in the Department of War in the Provisional Government. He was elected a Deputy representing Puy-de-Dôme and voted with the moderate republicans. He was reelected in May 1849. His total opposition to the increasingly authoritarian policies of Louis Napoleon led to his arrest after his coup d'état in 2 December 1851 and exile in Belgium.
1412 Alexandre Polangie de Rancé (1798-1880) was an army officer and Deputy representing l'Eure (1834-1837) and then Algeria (1848-1851). He voted with the conservative right.
1413 Vincent Paul Marie Casimir Audren de Kerdrel (1815-1899) was a descendant of an ancient Norman noble family. He was a politician who was elected Deputy representing Ille-et-Vilaine (1848-51) but withdrew from politics after the Louis Napoléon's coup d'état.He later returned to politics in the Third Republic where he served as a Deputy and then Senator for life.
1414 Achille, comte Baraguey d'Hilliers (1795-1878) was a distinguished soldier, having served in the conquest of Algeria in 1830. In 1834 he was appointed deputy governor of the Saint-Cyr military academy and full governor in 1836. After serving again in Africa he was promoted to full general and then Inspector General of the Infantry in 1847. During the Second Republic he was elected Deputy representing the Department of Doubs in eastern France. He voted with the conservative right.
1415 Bastiat has a long discussion of the destructiveness of British party politics in his pamphlet "Parliamentary Conflicts of Interest," CW2, pp. 382-88. He also criticises the oligarchy which controlled Britain in his "Introduction" to Cobden and the League (1845).
1416 As a member of the General Council of Les Landes for many years bastiat has some personal experience of how they function. He discusses how they would be disrupted if they were run the same way as was being proposed for the Chamber in CW2, pp. 379-81.
1417 That of the July Monarchy under King Louis Philippe in February 1848.
1418 The 1848 Constitution did not provide any means for resolving a conflict between the president of the republic and the Assembly. The president could not dissolve the Assembly; the Assembly could not overthrow the president (short of extraordinary circumstances). President Louis Napoléon solved this problem in December 1851 by seizing power in a coup d'état.
1419 The elections for the new Legislative Assembly would be held in May 1849 and bring an end to the Constituent Assembly.
1420 Edmond Charlemagne (1795-1872) was a judge and magistrate. He was elected to represent l'Indre during the July Monarchy where he voted with the Legitimist opposition (i.e pro-Bourbon). During the Second Republic he had switched sides and was elected Deputy of l'Indre in April 1848 voting with the moderate republicans, and then reelected in June 1849 where he voted with the centre right. He supported Louis Napoléon's coup d'état of 1851 and was appointed Councillor of State in the new regime.
1421 CRANC, vol. 8, pp. 513-14.
1422 Alphonse de Lamartine (1790–1869). See the glossary on "Lamartine."
1423 The Girondins were a group of liberal-minded and moderate republican deputies and their supporters within the Legislative Assembly (1791-92) and National Convention (1792-95), in the early phase of the French Revolution. They got their name from the fact that many of the deputies came from the Gironde region in southwest France, near the major port city of Bordeaux. They were defeated politically by the radical Jacobins in May 1793 and many were executed in late 1793, such as Jacques Pierre Brissot (1754-1793), Pierre Victurnien Vergniaud (1753-1793), Marie Jean Antoine Nicolas de Caritat, marquis de Condorcet (1743-1794), and Étienne Clavière (1735-1793). Lamartine wrote an 8 volume History of the Girondins in 1847.
1424 Honoré-Gabriel Riqueti, comte de Mirabeau (1715-1789) was a soldier as well as a diplomat, journalist, and author who spent time in prison or in exile. His economic thinking was influenced by the Physiocrats. During the French Revolution he became a noted orator and was elected to the estates-general in 1789 representing Aix and Marseilles. In his political views he was an advocate of constitutional monarchy along the lines of Great Britain. He is noted for his Essai sur le despotisme (1776) and several works on banking and foreign exchange.
1425 A reference to the August reforms of 1789 which were issued by the National Assembly between 4-11 August effectively destroying the "feudal order" of the old regime.
1426 By circulating his pamphlet.
1427 In his pamphlet he describes journalism and public opinion as "the outer works" which have to be overrun if the "fort" (the Chamber) is to be taken in "the war for portfolios": "Warlike masses are everywhere; only their leaders remain in the Chamber. They know that, in order to reach the body of the fort, they have to start by conquering the outer works—journalism, popularity, public opinion, and electoral majorities." In CW2, p. 394.
1428 Jacques André Manuel (1791-1857) was an army officer under Napoleon and then a banker during the Restoration of the monarchy. He was elected a Deputy representing la Nièvre (1839-1848) and opposed the July Monarchy. During the Second Republic he was a deputy representing la Nièvre (1848-1851) and voted with the conservative right and was a supporter of Louis Napoléon. Under the Second Empire he was a Senator 1852-1857.
1429 Hyacinthe Camille Odilon Barrot (1791-1873) was President of the Council of Ministers (Prime Minister) between 20 Dec. 1848 and 31 October 1849, Minister of Justice, and a leading figure in "the Party of Order."
1430 CRANC, vol. 8, pp. 542-44.
1431 Jean-Bernard Sarrans (1796-1874) was a journalist, historian, and politician. He was elected Deputy representing l'Aude in April 1848, was a member of the Chamber's Foreign Affairs Committee, and voted with the left.
1432 Jacques Culmann (1787-1849) was a retired colonel in the French artillery. He was a Deputy representing Bas-Rhin (1848-1849).
1433 Jean Saint-Gaudens (1799-1875) was a lawyer who opposed the July Monarchy. He was elected Deputy representing Basses-Pyrénées (1848-1849).
1434 In his pamphlet Bastiat is more explicit about how the lust for political power drives men to form political coalitions. He states that his premise is that "Men love power" (CW2, p. 377) and that they have "a thirst for power and perhaps worse, a thirst for riches" (CW2, p. 393).
1435 Bastiat uses the medical expression "solution de continuité" which is the same one he used in ES1 17 "The Negative Railway" (c. 1845) which also suffered an embarrassing "fracture." See CW3, pp. 81-83
1436 In his unpublished paper "On the Influence on Liberty of the Eligibility of Deputies for Public Office (early 1840s) (CW1, pp. 459-63) Bastiat uses one of his clever dialogues about how a King should run his Chamber of Deputies if he wanted to maintain control over it. He would need two articles in the constitution, one which said that "The King decides all appointments" and another which said "Deputies are eligible for all posts." The King concludes that "I would have to be very clumsy or human nature of surpassing sophistication if, given these two lines in the Charter, I were not master of the parliament." Quote, p. 461.
1437 In 1831 Ibrahim Pasha of Egypt challenged Ottoman rule of Syria by invading the country and settling it with Egyptian peasants and soldiers. In 1839 a war broke out between Egypt and the Ottoman Empire over control of Syria and in the Treaty of London of 1841 the European powers forced Muhammed Ali of Egypt to withdraw and return control to the Ottomans.
1438 Louis Napoléon.
1439 Joseph de Villèle (1773-1854) was an Ultra Royalist during the Restoration and was Prime Minister and Minister of Finance 1821-28. Under his rule opposition groups were muzzled by strict censorship laws, the Chamber was stacked with new Peers created by the King, and 1 billion francs was set aside to reimburse aristocrats for property taken from them during the Revolution. His political reaction was a major cause of the Revolution of 1830 which saw the Bourbon King Charles X overthrown by Louis Philippe.
1440 François Pierre Guillaume Guizot (1787-1874) was Minister of Foreign Affairs between 1840 and 1848, and was appointed Prime Minister in September 1847 just in time to spark the Febraury 1848 Revolution by banning the political banquets protest movement.
1441 George II of Great Britain (1683–1760); George III (1738-1820) was King of Great Britain and Ireland from 1760-1801 and then King of the United Kingdom of Great Britain and Ireland until his death in 1820.
1442 Bastiat uses the phrase "le gouvernement à bon marché" which was one of the slogans of the French Free Trade Association and was used on the banner of their magazine Le Libre-Échange .
1443 CRANC, vol. 8, pp. 546.
1444 Adolphe Augustin Marie Billault (1805-1863).
T.237 (1849.03.15) Bastiat's remarks from a discussion on "Parliamentary Conflicts of Interest" (JDE, March 1849)↩
SourceT.237 (1849.03.15) Bastiat's remarks from a discussion on "Parliamentary Conflicts of Interest." FB participated in a discussion at a meeting of the Political Economy Society on his "Parliamentry Conflicts of Interest". A summary of his replies can be found in "Chronique. Incompatibilités des portefeuilles," JDE 15 March 1849, T. XXII, pp. 445-446. [DMH] [CW??]
Editor's Note[to come]
Text(insert HTML of file here)
T.238 (1849.04) "Statement of Electoral Principles in April 1849"↩
SourceT.238 (1849.04) "Statement of Electoral Principles in April 1849" (Profession de foi électorale d’Apr. 1849). [OC7.65, pp. 255-62.] [CW1.2.2.6, pp. 390-95.]
Editor's Note[to come]
TextYou have given me a mandate which is drawing to its close. I have carried it out in the spirit in which it was given to me.
Do you remember the elections in 1848? What did you want?
Some of you had welcomed with delight the coming of the Republic, others had neither provoked nor wanted it, and yet others feared it. However, with an admirable surge of good sense, you united under this twin aim:
- to maintain the Republic and give it a chance loyally;
- to engage it in the path of order and security.
History will show that the National Assembly, in the face of immense dangers, has been faithful to this program. By dissolving itself it leaves anarchy and reaction conquered, security reestablished, subversive utopias made impotent, a steady government, a constitution that allows later ameliorations, peace established, and finances that have escaped the greatest dangers. Yes, although it has often been battered by storms, your Assembly has been the expression of your will. It seems to me to be an unexpected miracle of universal suffrage. To calumniate it is to calumniate yourselves.
For my part, I have always steeped myself in the spirit which imbued you all in April 1848. Very often when, under the pressure of terrible difficulties, I saw the flame which should have guided me flicker, I evoked the memory of the many meetings at which I appeared before you and I said to myself: “I have to want what my constituents have wanted, an honest Republic.”
Fellow countrymen, I am obliged to speak of myself and will limit myself to the facts.
On 23 February, I did not take part in the insurrection. By chance, I happened to find myself present during the gunfire at the Hôtel des Capucines. While the crowd fled in panic, I advanced against the current, and facing the battalion whose rifles were still hot, with the help of two workers, I gave help during this unhappy night to those who were mortally wounded.
As early as the 25th, I managed to guess at the subversive ideological excesses [391] soon to be concentrated on the Luxembourg Palace.41 To combat them I founded a newspaper. Here is the judgment given of it by a review which I have come across, one which is not suspect, entitled A Catholic Bibliography Intended for Priests, Seminaries, Schools, etc. “La République française, a broadsheet which appeared soon after the Revolution, written with talent, moderation, and wisdom, opposed to socialism, the Luxembourg Palace, and circulars.”
There followed what has been called with reason the rush for positions. Several of my friends were very influential, including M. de Lamartine, who had written to me a few days before, “If ever the storm carries me to power, you will help me to achieve the triumph of our ideas.” It was easy for me to achieve high position; I have just never thought about it.
Almost unanimously elected by you, I entered the Assembly on 5 May. On the 15th, we were invaded. On that day, my role was limited to remaining at my post, like all my colleagues.
I was nominated as member and vice president of the finance committee, to which committee it was soon clear that we would have to fight against an extremely seductive proposal much vaunted at the time. On the grounds of satisfying popular demand, some people wanted to bestow an inordinate degree of power on the revolutionary government. They wanted the state to suspend the reimbursement of the savings bank and treasury bonds and take over the railways, insurance, and transport systems. The government was pushing in this direction, which does not appear to me to be anything other than theft regularized by law and executed through taxes. I dare to say that I have contributed to preserving my country from such a calamity.
However, a frightful collision was threatened. The genuine work carried out by individual workshops was replaced by the bogus production of national workshops.42 The organized and armed people of Paris were the plaything of ignorant utopians and fomenters of disorder. The Assembly, forced [392] to destroy these deceptive illusions one by one through its votes, foresaw the storm but had few means of resisting it other than the moral strength that it received from you. Convinced that voting was not enough—the masses needed to be enlightened—I founded another newspaper which aimed to speak the simple language of good sense and which, for this reason, I entitled Jacques Bonhomme. It never stopped calling for the disbanding of the forces of insurrection, whatever the cost. On the eve of the June Days, it contained an article by me on the national workshops. This article, plastered over all the walls of Paris, was something of a sensation. To reply to certain charges, I had it reproduced in the newspapers in the département.
The storm broke on 24 June. One of the first to enter the Faubourg Saint Antoine following the removal of the formidable barricades which protected access to it, I accomplished a twin and difficult task, to save those unfortunate people who were going to be shot on unreliable evidence and to penetrate into the most far-flung districts to help in the disarmament. This latter part of my voluntary mission, accomplished under gunfire, was not without danger. Each room might have hidden a trap, each window or basement window a rifle.
Following victory, I gave loyal assistance to the administration of General Cavaignac, whom I hold to be one of the noblest characters brought to the fore by the Revolution. Nevertheless, I resisted anything I considered to be an arbitrary measure as I know that any exaggeration about success compromises it. Self-control and moderation in every sense have been my rule or rather my instinct. In the Faubourg Saint Antoine, I disarmed insurgents with one hand and saved prisoners with the other. This has been the symbol of my conduct in parliament.
Around this time, I was stricken with a chest ailment which, combined with the huge size of our debating chamber, barred me from the tribune. I did not remain idle for all that. The true cause of society’s ills and dangers lies, in my opinion, in a certain number of mistaken ideas, in favor of which those classes who have number and strength on their side unfortunately became enamored. There is not one of these errors that I have not combated. Of course, I knew that the action that one seeks to exercise over causes is always very slow and that such action is inadequate when the danger explodes. But can you reproach me for having worked for the future, after having done for the present all that I possibly could?
To the doctrines of Louis Blanc I opposed a treatise entitled Individualism and Fraternity.
[393]When the very principle of ownership was threatened and efforts were made to direct the legislation against it, I wrote the brochure Property and Law.
The form of individual property which consists in the individual appropriation of land was under attack. So I wrote the brochure Property and Plunder, which, according to English and American economists, shed some light on the vexatious question of rent from land.
People wished to found fraternity on legal constraint. I wrote the brochure Justice and Fraternity.
Rivalry was stirred up between labor and capital; the population was deluded with the illusion of free credit. I wrote the brochure Capital and Rent.
Communism was overwhelming us so I attacked it in its most practical manifestation, through the brochure Protectionism and Communism.
The purely revolutionary school wanted the state to intervene in every matter and thus bring back a continuous increase in taxes. I wrote the brochure entitled The State, which was particularly directed against the manifesto of the Montagnards.
It was proved to me that one of the causes of the instability of government and the disorientating intrusion of false politics was the struggle for office. I wrote the brochure Parliamentary Conflicts of Interest.
I was convinced that almost all the economic errors that plague this country arise from a false concept of the functions of money. I wrote the brochure Damned Money.
I saw that financial reform was going to be carried out using illogical and inadequate procedures. I wrote the brochure Peace and Liberty or the Republican Budget.43
In this way, through action in the street or appealing to the mind through controversy, as far as my health allowed, I did not let a single opportunity slip to combat error, whether arising from socialism or communism, the Montagne or the Plaine.44
This is why on some occasions I had to vote with the left and on others with the right; with the left when it defended liberty and the Republic, with the right when it defended order and security.
And if I am criticized for this so-called double alliance, my answer is: I [394] have not allied myself with anyone nor joined any coterie. On each question, I have voted according to my conscience. All those who have read my pamphlets carefully, whenever they were published, know that I have always had a horror of habitual majorities and oppositions.
The time came for the election for the president of the Republic. We still faced grave dangers, among which was foreign war. I did not know what we might expect from Napoléon, though I knew what we might expect from Cavaignac, who had made a declaration in favor of peace. I had my preferences and expressed them loyally. It was my right and even my duty to say what I was doing and why I was doing it. I limited myself to this. Universal suffrage proved me wrong. I rallied as I ought to its all-powerful wish. I challenge anyone to identify a systematic opposing vote of mine to the person elected on 20th December. I would consider myself to be a seditionist if, through ridiculous resentment, I blocked the grand and useful mission he had received from the country.
As a member of the finance committee and later of the budget commission, as far as our finances allowed, I worked to pursue the reforms which, as you know, have always been the object of my efforts. I contributed to reducing the taxes on salt and the post. I was a member of the commission on drink, which prepared a radical reform which the limited time of the Assembly postponed to a later date. I strongly campaigned for reducing the numbers of the army, and I would have liked to achieve a softening of the severe law on recruitment.
On the question of the dissolution of the Assembly, my views have never varied. We must pass fundamental laws indispensable for putting the constitution into practice, no more, no less.
Fellow countrymen, these have been my actions, which I subject to your impartial scrutiny.
If you think it appropriate to reelect me, I declare to you that I will persevere in the path you traced for me in April 1848, to maintain the Republic and lay the basis for security.
If, under the influence of the unhappy days you have endured, you have conceived other ideas and other hopes, if you wish to pursue a new goal and try new adventures, then I can no longer be your representative. I will not abandon the work we undertook together just when we are about to gather the fruit of our efforts. Security is without doubt the primary need of our era and the signal priority in any age. However, I cannot believe that it can be given a solid basis by triumphalist abuses, interference and harassment, [395] violence and reactionary fury. The man you honor with your vote is not the representative of one class but of all classes. He should not forget that there is great suffering, destitution, and blatant injustice in the country. To hold things in check constantly is neither just nor even prudent. To search for the causes of suffering and produce all the remedies that are compatible with justice is a duty as sacred as that of maintaining order. Doubtless, truth must not be trifled with; false hopes must not be encouraged; popular prejudice must not be yielded to, even less when it is expressed through insurrection. My acts and writings are there to prove that, in this respect, I cannot be reproached. However, I should not be asked either to yield to outbursts of anger and hate against brothers who are unhappy and misguided, whose ignorance only too often exposes them to perfidious suggestions. The duty of a national assembly which results from universal suffrage is to enlighten them, to bring them back, to listen to their wishes, and to leave them with no doubt as to its strong sympathy. To love is the only law, as a great apostle said. We are in an era in which this maxim is as true in politics as in morals.
I remain, dear fellow countrymen,
your devoted servant.
The Luxembourg Palace in Paris was the seat of the Government Commission for the Workers, created on 28 February 1848 to improve the condition of the workers. It consisted of 242 worker delegates and 231 employer delegates and was chaired by the socialist Louis Blanc. The commission was dissolved on 28 March 1848.
The national workshops were created on 27 February 1848 ostensibly for the purpose of employing retired workers. The workers received two francs a day, soon reduced to one franc because of the tremendous increase in their numbers (29,000 on 5 March; 118,000 on 15 June). Struggling with financial difficulties, irritated by the inefficiency of the workshops, the Assembly dissolved the workshops on 21 June.
OC, vol. 5, p. 407, “Paix et liberté ou le budget républicain.”
The deputies without any strong ideology.
T.239 Damned Money! (April 1849, JDE)↩
SourceT.239 (1849.04.15) "Damned Money!" (Maudit argent!), JDE , 15 Apr. 1849, T. 23, no. 97, pp. 1-20. Also published as a pamphlet: Bastiat, L'État. Maudit argent! (Paris: Guillaumin, 1849). [OC5.4, pp. 64-93.] [CW4]
Previously translated by David A. Wells in 1877: Frédéric Bastiat, Essays on political economy. English translation Revised, with Notes by David A. Wells (G.P. Putnam Sons, 1880). First ed. 1877. Contains "Capital and Interest," pp. 1-69; "That Which is Seen, and That Which is Not Seen," pp. 70-153; "Government" (The State), pp. 154-73; "What is Money?" (Damned Money), pp. 174-220; "The Law," pp. 221-91.
Editor's IntroductionThis is one of Bastiat's 12 Anti-Socialist Pamphlets which were published between late 1848 and July 1850 by the Guillaumin publishing firm and promoted as the "Petits Pamphlets" (Short or Little Pamphlets). It was part of a concerted campaign by the publishing firm to counter socialist ideas during the Revolution and the Second Republic. A special four page Catalog entitled "Publications nouvelles sur les questions économiques du jour" (New Publications on the Economic Questions of the Day) listed 40 of the firm's books on the right to work, socialism, the condition of the working class, and other similar topics. It was included with the first of Bastiat's Petits Pamphlets Propriété et loi. Justice et fraternité (Paris: Guillaumin, 1848) which was published in late 1848.
"Maudit argent!" is one of only two extended discussions of money written by Bastiat, the other is his debate about "Free Credit" which he had with Proudhon in late 1849 and early 1850, especially Letter 12 (February 1850). 1445 It was written to counter the growing socialist demand for government measures to solve the economic crisis which followed the February Revolution. This came in the form of two demands: for banks to issue credit at very low or zero interest rates (especially from Proudhon), and to expand the money supply in order to cover growing government debt to fund unemployment measures and other government expenditures. Bastiat refers in the essay to a Report from the Finance Committee which was presented to the Chamber on 14 April 1849 on behalf of the Committee by the banker and Deputy Charles Louvet which was very critical of a proposal put forward by the socialist Pierre Leroux to have the state reimburse some of its creditors the sum of one billion francs with paper money. 1446 This would have been hotly debated by the Committee in which Bastiat would have no doubt participated.
Bastiat was the Vice-President of the Finance Committee which had been established by the National Assembly to oversee the government's taxing and spending policies and consisted of 60 Deputies. He was an ardent defender of lower taxation and balanced budgets and an opponent of various high-spending schemes by the socialists such as the National Workshops which provided employment for unemployed workers at taxpayer expence. Throughout 1848 as the government's financial situation deteriorated there were many calls within the National Assembly for the government to issue up to 2 billion francs worth of paper money in order to shore up its finances. In a debate in the Assembly Louis-Antoine Garnier-Pagès, the Minister of Finance, made a speech attacking such schemes and warning of their danger. 1447 Numerous other reports by the Finance Committee addressed to the Assembly made similar points, such as Léon Faucher (who was a member of the Société de l'Économie Politique) who presented one on 29 August, 1848 opposing a forced loan of 200 million francs to replace other taxes such as the 45 centime tax; 1448 Adolphe Thiers presented one on 26 July, 1848 attacking the ideas of the socialist anarchist Proudhon on taxation and credit; 1449 one presented by Bastiat on 9 August 1848 on a 2 million franc emergency assistance measure for inhabitants of La Seine (see above, pp. 000); 1450 and the banker and Deputy Charles Louvet presented one on 14 April, 1849 attacking the ideas of the socialist Pierre Leroux (mentioned above). So, when Bastiat came to write this dialogue there had been yet another attempt to solve the government's budget woes by issuing paper currency unbacked by gold.
In a fairly complex technical discussion of the issue Bastiat uses over a dozen different expressions to describe various forms of money, bank notes, and other financial instruments. This is a difficult linguistic minefield for the translator to cross. Bastiat's terminology revolves around a fundamental distinction between two types of money; one based upon valuable metals such as gold and silver, and the other based upon paper notes which may or may not have been backed by government owned assets such as land. He uses two general words to cover all forms of money: "monnaie" (money) and "argent" (originally meaning silver but which also means money in a general sense). He also uses the term "numéraire" (cash) to refer to any gold or silver coins which were used as money. Some of the coins he specifically mentions are Louis, Napoléons, and écus. The smaller denomination copper coin, the sou (penny), is also mentioned. Bastiat also refers to "billets de banque" (bank notes) which are paper money which can be redeemed upon demand at a bank for gold or silver coins. He describes coins which have been "clipped" or watered down in their metallic content as "pièces altérées" (debased coins).
The other type of money Bastiat refers to is "papier-monnaie" (paper money) which is money which has been issued by a bank, usually a state bank, which is not backed by reserves of gold or silver. The most important historical example of this was the paper currency known as the Assignat which was issued during the Revolution. It was backed by the land which had been confiscated from the aristocrats and the church. It experienced a serious hyper-inflation which led to its ultimate collapse in 1796. In this essay Bastiat wittily refers to the Paris Mint using "la planche aux assignats" (the Assignat master plate) to create new paper money in an effort to solve the financial problems of the Second Republic. Other terms he used for this kind of paper money were "la fausse monnaie" (counterfeit or false money) and "francs fictifs" (imaginary or false francs). The latter were contrasted with "francs métalliques" (gold francs).
A final kind of money Bastiat refers to are "jetons" (tokens, or chips). This expression is also used in a discussion of the value of "poker chips" which can be increased or decreased at will vis-à-vis an unchanging quantity of goods and services in the economy.
This pamphlet is in the form of a dialogue between two adversaries who debate the nature of money. It is similar to many of the economic sophisms which Bastiat wrote between 1846 and 1848 in which the dialogue form was used. These are collected in CW3. This essay differs markedly from them in that it is much longer. It is also rather tedious in places as a result and it reads more like the "conversations" Molinari used in each Soirée in his 1849 book between an Economist (him), a Socialist, and a Conservative. 1451 Bastiat's shorter economic sophisms are wittier and easier to read, and hence more effective in getting his message across. Even the character "ABC" tells us he is getting tired and wants to end the conversation.
In the French original each speaker's contribution to the dialogue is introduced by a long dash. To aid the reader we have indicated who is speaking by prefacing their remarks with "Economist F*" for the economist who is a member of the Finance Committee of the National Assembly and "ABC" who acts as his foil in the discussion. By using the name "Economist F*" Bastiat is most likely referring to himself, as "F" stands for Frédéric, his arguments sound very much like Bastiat's, and he presents "ABC" with a copy of his recently published pamphlet Capital and Rent (Feb. 1849) towards the end of the conversation. However, it is possible the "F" might also be based upon Achille Fould (1800-1867) 1452 who was Minister of Finance in the Second Republic and a strong opponent of the government issuing any "new assignats" (by which he meant paper money not backed by gold) to pay off its debts and wrote a pamphlet, Plus d'assignats (No More Assignats), denouncing this trend. 1453
Some of the other topics raised by Bastiat in this essay include:
- the problems faced by the free market economists in getting teaching positions in the university and other colleges. The economists had overcome with some difficulty a crisis in 1848 when one the very few who had a chair, Michel Chevalier at the Collège de France, had his position cancelled by the Provisional Government in early 1848. It took considerable lobbying by the Political Economy Society over the rest of the year to get him reinstated. See the glossary entry on "Teaching Political Economy in the Universities."
- Bastiat's opposition to the idea of a "Legislator" who can design and run a new, artificially structured organisation to solve social problems. See the glossary entries on "The Social Mechanism" and the essay on "Natural and Artificial Organisation", below pp. 000
- his other writings on "The Balance of Trade," see below, pp. 000.
- his idea that exchange is the mutual exchange of services, or "service for service." See the glossary entry on "Service for Service."
- the intriguing idea he puts forward concerning those who benefit from inflation by getting access to the new money first.
Economist F*: "Damned money! Damned money!" 1454 The economist F* cried dejectedly as he came out of a meeting of the Finance Committee during which a project for paper money had just been discussed. 1455
ABC: "What is wrong with you?" I asked him, "Where does this sudden distaste for the most worshipped of all the gods in this world come from?"
Economist F*: Damned money! Damned money!
ABC: You are alarming me. Only once or twice have I heard peace, freedom, and life blasphemed like that, and Brutus went so far as to say "Virtue, you are just an empty word!" 1456 But if I have missed something so far …
Economist F*: Damned money! Damned money!
ABC: Come on, be a little philosophical. What has happened to you? Has Croesus 1457 just splattered you with one of his chariots? 1458 Has Mondor 1459 just stolen the love of your life? Or has Zoilus 1460 just paid a journalist to write a diatribe against you?
Economist F*: I do not envy Croesus his chariot; my lack of renown spares me Zoilus's eloquence and as for the love of my life, never, never has the slightest shadow of the faintest stain …
ABC: Ah, I am with you. What was I thinking of? You, too, are the inventor of a system of social organization, the F* system . 1461 You want your society to be more perfect than that of Sparta, 1462 and to achieve this any form of money has to be strictly banished from it. What is troubling you is how to persuade your followers to empty their purses. What does it matter? This is the trap for all reorganizers. There is not one who would not do marvelous things if he succeeded in overcoming all resistance and if the entire human race was willing to become soft wax in his fingers; however it is stubbornly opposed to becoming soft wax. It listens, applauds or rejects and … goes on as before.
Economist F*: Thank heavens, I have up to now resisted the current mania. Instead of inventing social laws, I study those that God has been pleased to invent, being happy moreover to find them admirable in their gradual development. And it is for this reason that I am saying "Damned money! Damned money!" over and over again.
ABC: Are you then a Proudhonian or a Proudhonist? 1463 Goodness me! You have an easy way of gaining satisfaction. Throw your purse into the Seine, except for one hundred sous 1464 to buy a share in the Exchange Bank. 1465
Economist F*: Since I am cursing money, you can decide whether I ought to curse its deceitful symbolism.
ABC: Then, there is just one guess left to me. You are a new Diogenes 1466 and you are going to weary me with a tirade, Seneca-style, on contempt for wealth. 1467
Economist F*: God forbid! For wealth, you see, is not a little more or a little less money. It is bread for the hungry, clothing for those who are naked, wood for heating, oil for extending the number of hours of light in the day, the opening of a career for your son, the assurance of a dowry for your daughter, a day of rest for tired limbs, a medicine to rejuvenate you, assistance slipped into the hand of a poor person who is ashamed, a roof against a storm, wings to bring friends together more quickly, a diversion for a head bursting with ideas, and the incomparable joy of making our loved ones happy. Wealth is education, independence, dignity, confidence, charity, everything that the development of our faculties can provide for the needs of our bodies and minds; it is progress and civilization. Wealth is the admirable civilizing result of two admirable agents that are even more civilizing than it is: work and trade.
ABC: Good. Are you now going to extol the benefits of wealth in dithyrambic verse when, just a moment ago, you were busy cursing gold?
Economist F*: Oh! Don't you understand that this is quite simply an economist's tirade! I am cursing money precisely because people confuse it with wealth, as you have just done, and from this confusion arises countless errors and calamities. I curse it because its function in society is poorly understood and very difficult to explain. I curse it because it confuses every idea, mistakes the means for the end, the obstacle for the cause, and the alpha for the omega. Because its presence in the world, beneficial in itself, has nevertheless introduced into it a disastrous notion, the begging of the question, a theory that is upside down, which in its myriad forms has impoverished men and caused the earth to run with blood. I curse it because I feel incapable of combating the error to which it has given birth other than by issuing a long and extremely detailed dissertation that nobody will listen to. Ah! If only I had my hands on a patient and indulgent listener!
ABC: Good heavens! It must never be said that for lack of a victim you will remain in your present state of irritation. I am listening: say your piece and get it off your chest! Throw off your inhibitions!
Economist F*: You promise to be interested?
ABC: I promise to be patient.
Economist F*: That's not very much.
ABC: That is all I can do. Fire away and tell me first of all how a mistake about money, if mistake there is, is at the root of all economic errors.
Economist F*: Frankly, with your hand on your heart, have you never confused wealth with money?
ABC: I don't know. I have never bored myself with political economy. But if I had confused them, what would the result be?
Economist F*: Not very much. It is like an error in your mind that does not influence your actions; for, you see, with regard to work and trade, although there are as many points of view as there are minds, we all act in the same way.
ABC: Rather like us walking according to the same principles although we do not agree on the theory of equilibrium and gravity.
Economist F*: Exactly. Anyone who is led by induction to believe that during the night we have our heads down and our feet up would be able to produce some fine books on the subject, but he would still stand up like everyone else.
ABC: I am sure of it. Otherwise, he would be quickly punished for being too good a logician.
Economist F*: In the same way, a man who was convinced that money is the real form of wealth and was consistent to the very end would soon die of hunger. This is why this theory is wrong for there are no correct theories that do not result from genuine facts that have been noted through the ages and everywhere.
ABC: I understand that, in practice and under the influence of self-interest, the disastrous consequence of a mistaken act constantly tends to correct the error. But if the error you are talking about has so little influence, why does it put you in such a bad mood?
Economist F*: It is because when a man, instead of acting on his own account, takes decisions for someone else, self-interest, that vigilant and perceptive watchman, is no longer there to cry: "Look out!" Responsibility has been displaced. It is Pierre who makes the mistake but Jean who suffers as a result. The false system of the Legislator 1468 inevitably becomes the rule of action for entire nations. And look at the difference. When you have money and are very hungry, whatever your theory about cash, what do you do?
ABC: I go into a bakery and buy some bread.
Economist F*: You have no hesitation in parting with your money?
ABC: That is all I have it for.
Economist F*: And if in turn this baker is thirsty, what does he do?
ABC: He goes to the wine-seller and drinks a glass with the money I have given him.
Economist F*: What! Isn't he afraid of ruining himself?
ABC: The real ruin would be not to eat and drink.
Economist F*: And do all the people in the world, if they are free, act in the same way?
ABC: Without any doubt. Do you want them to die of hunger so that they can hoard their pennies?
Economist F*: Far from it, I think they are acting wisely, and I would like the theory to be an exact image of this universal practice. But just suppose now that you were the Legislator, the absolute monarch of a vast empire in which there were no gold mines. 1469
ABC: I quite like the idea.
Economist F*: Let us also suppose that you are utterly convinced of this: Wealth consists uniquely and exclusively of cash; what would you deduce?
ABC: I would deduce that there is no other means for me to make my people wealthier or for them to enrich themselves than to take cash from other people.
Economist F*: In other words, to make them poorer. The first consequence you will come to is therefore this: one nation can gain only what another loses.
ABC: This axiom rings with the authority of Bacon and Montaigne. 1470
Economist F*: It is no less a sorry one, even so, for in the end it amounts to saying: Progress is impossible. Two nations cannot prosper living side by side any more than two men can.
ABC: It does appear that this follows from the principle.
Economist F*: And since all men aspire to become wealthier, it has to be said that all of them aspire to ruining their fellow-men, by virtue of a providential law.
ABC: That is not Christian practice but it is political economy.
Economist F*: It is dreadful. But let us go on. I have made you into an absolute monarch. It is not for you to reason, but to act. There is no limit to your power. What are you going to do in the light of this doctrine: Wealth is money?
ABC: My ideas would be directed towards constantly increasing the amount of cash available to my people.
Economist F*: But there are no mines in your kingdom. How are you going to manage to do this? What will you order to be done?
ABC: I will not order anything; I will forbid. I will forbid any écus 1471 from leaving the country, under pain of death. 1472
Economist F*: And if your people, who have money, are hungry as well?
ABC: It doesn't matter. Under the set of principles within which we are reasoning, allowing them to export écus would be to allow them to become poorer.
Economist F*: So that, by your own admission, you would force them to act in accordance with a principle in opposition to the one that guides you yourself in similar circumstances. Why is this?
ABC: It is doubtless because my own hunger is painful but the people's hunger does not hurt the Legislators.
Economist F*: Well then! I can tell you that your plan will fail and that there is no form of surveillance that is vigilant enough to prevent écus from leaving when people are hungry and wheat is free to enter.
ABC: In that case, this plan, whether wrong or not, is as ineffectual for good as it is for evil, and we no longer need to bother with it.
Economist F*: You are forgetting that you are the Legislator. Can a Legislator be put off by so little when he is experimenting on others? Once the first decree has failed, would you not be looking for another means of achieving your aim?
ABC: What aim?
Economist F*: You have a short memory. The aim of increasing the amount of cash among your people, that being regarded as the only true wealth.
ABC: Ah! You have reminded me. I beg your pardon. But, you see, it is what is said of music: a little goes a long way. I think this is even more true of political economy. There I go again. But I really do not know what to think …
Economist F*: Think hard. First of all, I will point out to you that your first decree solved the problem only negatively. Preventing écus from leaving is indeed preventing wealth from decreasing, but it does not increase it.
ABC: Ah! I am on the right track … the wheat that is free to enter … I have just had a bright idea … Yes, the detour is brilliant and the means infallible. I am attaining my goal.
Economist F*: In turn, I will ask you; what goal?
ABC: Good heavens! To increase the amount of cash.
Economist F*: How will you manage this, please?
ABC: Is it not true that in order for the pile of money to grow constantly, the first condition is that it should never decrease?
Economist F*: Good.
ABC: And the second is that it should constantly be added to?
Economist F*: Very good.
ABC: Therefore the problem will be solved, both positively and negatively, as the socialists say, if on the one hand I prevent foreigners from reducing it and on the other I force them to add to it.
Economist F*: Better and better.
ABC: And to do this, you need two simple decrees in which cash is not even mentioned. By one of them, my subjects will be forbidden to buy anything abroad; by the other, they will be ordered to sell a great deal there.
Economist F*: This is a very well-laid out plan.
ABC: Is it new? I will take out an inventor's patent on it.
Economist F*: Don't go to that trouble; your priority will be contested. But be careful of one thing.
ABC: What?
Economist F*: I have made you an all-powerful king. I understand that you will prevent your subjects from buying foreign products. All you need to do is to forbid them from entering. Thirty or forty thousand Customs officers will do the trick. 1473
ABC: That will be a bit expensive. What does it matter? The money they will be paid will not be leaving the country.
Economist F*: Doubtless. And in our system, that is the essential point. But what are you going to do to force sales abroad?
ABC: I will encourage it by subsidies, raised through a few good taxes slapped on my people.
Economist F*: In that case exporters, constrained by the competition between them, will decrease their prices by the same amount, and it would be as though you were making a gift of these subsidies or taxes to foreigners.
ABC: It would still be true that the money would not leave the country.
Economist F*: That is true. It meets all your criteria, but if your system is so beneficial, the kings of the neighboring states will adopt it. They will copy your decrees and have Customs officers who reject your products in order that the pile of money in their country does not decrease either.
ABC: I will have an army and break through their barriers.
Economist F*: They will have an army and break through yours.
ABC: I will arm ships, make conquests, acquire colonies, and create consumers for my people who will be obliged to eat our wheat and drink our wine. 1474
Economist F*: The other kings will do the same things. They will challenge your conquests, your colonies, and your consumers. War will be everywhere and the world will be engulfed in flames.
ABC: I will increase my taxes, Customs officers, navy and army.
Economist F*: The others will imitate you.
ABC: I will redouble my efforts.
Economist F*: They will do the same thing. In the meantime, nothing proves that you will have succeeded in selling very much.
ABC: That is only too true. We will be lucky if our commercial efforts (don't?) cancel each other out.
Economist F*: And this is also true for your military efforts. And tell me, aren't these Customs officers, soldiers, ships, and crushing taxes, this constant tension aspiring to an impossible goal and this permanent state of open or secret warfare with the entire world the logical and necessary consequence of the fact that the Legislator has been obsessed with the idea (which is not within the reach, you will agree, of any man acting on his own account) that "wealth is cash; increasing cash is to increase wealth"?
ABC: I agree. Either the axiom is true, in which case the Legislator ought to act along the lines I have indicated, even though that leads to world war. Or it is false, in which case people are tearing each other apart in order to ruin themselves.
Economist F*: And do you remember that before you became king, this very axiom led you logically to the following maxims: "What one person gains, the other loses. The profit made by one is the loss of another" which implies irreconcilable conflict between all men. 1475
ABC: That is only too true. Whether I am a Philosopher or a Legislator, whether I reason or act, if I follow the principle that money is wealth I always reach this conclusion or result: world war. Before discussing this, you did the right thing to point out the consequences to me; without this, I would never have had the courage to follow you right to the end of your dissertation on economics for, to be quite frank with you, it is not very entertaining.
Economist F*: You're telling me. This is what I was thinking when you heard me mutter "Damned money!" I was grumbling because my fellow-citizens do not have the courage to study what it is so important for them to know.
ABC: And yet the consequences are frightful.
Economist F*: The consequences! I have pointed out just one. I might have shown you some that were even more disastrous.
ABC: You are making my hair stand on end! What other evils has this confusion between money and wealth been able to inflict on the human race?
Economist F*: I would need a long time to list them. It is a doctrine that has had a host of descendants. We have just become acquainted with its eldest son whose name is the Protectionist Regime . Its second son is the Colonial System , the third a Hatred of Capital and the youngest, Paper Money .
ABC: What! Does paper money result from the same error?
Economist F*: Directly. Once the Legislators have ruined men through war and taxes, they pursue their idea and say to each other "If the people are suffering, it is because there is not enough money. We must make more." And since it is not easy to increase the amount of precious metals, especially when the alleged benefits of trade prohibition have been exhausted, they add "We will make imaginary money, 1476 nothing is easier and each citizen will have a purse overflowing with it! They will all be rich!"
ABC: In fact, this procedure acts much faster than the other, and also it does not end up in a foreign war.
Economist F*: No, but in civil war.
ABC: You are very pessimistic. Hurry up then and examine the matter in more detail. I am very surprised that, for the first time, I want to know whether money (or its symbol) is wealth.
Economist F*: You will readily agree that people do not immediately satisfy any of their needs with écus. If they are hungry, it is bread that they need, if they are naked, clothes, if they are sick, medicine, if they are cold, shelter and fuel; if they wish to learn, they need books, if they want to travel, they need vehicles and so on. The wealth of a country can be seen in the abundance and proper distribution of all of these things.
From which you ought to be happy to guess how wrong Bacon's sad maxim, "What one nation gains, another of necessity loses" is. 1477 This maxim is expressed in an even more depressing way by Montaigne in these words: "One man's profit is another man's loss." 1478 When Shem, Ham and Japheth 1479 shared the vast solitudes of this earth, it is certain that each of them was able to build, drain, sow, harvest, house himself better, feed himself better, clothe himself better, educate himself better, improve his lot, become more wealthy, in a word, increase his economic satisfaction without any necessary decline in the economic satisfaction enjoyed by his brothers. This is the same for two nations.
ABC: Doubtless, two nations, like two separate men, are able to prosper side by side by working more and harder. This is not what the sayings of Bacon and Montaigne deny. They simply say that, when two nations or two men trade, if one gains, the other has to lose. And that goes without saying; as trade adds nothing by itself to the mass of useful things you are talking about, if one party has more following trade, the other has to end up having less.
Economist F*: You have a very inadequate idea of trade, inadequate to the point of being wrong. If Shem is in a plain that is fertile in wheat, Japheth on a hill that is good for wine production, and Ham in lush pasture, it is quite possible that the physical distance between them, far from damaging one of them, will enable all three to prosper. This is actually bound to happen, for the distribution of work brought about by trade will have the effect of increasing the mass of wheat, wine, and meat to be shared. How can this be otherwise if you allow liberty in these transactions? From the time that one of the three brothers notices that work done in co-operation, so to speak, results in a constant loss for him in comparison to working on his own, he will abandon trade. Trade is its own reason for getting our attention. It takes place and therefore it is good.
ABC: But Bacon's saying is true when it refers to gold and silver. If we accept that at a given time there is a given quantity of these in existence, it is perfectly clear that one purse cannot be filled without another purse emptying.
Economist F*: And if you claim that gold is wealth, you conclude that fortunes move from one man to another and there is never any general progress. This is exactly what I said at the beginning. If, on the other hand, you see true wealth is an abundance of useful things that will satisfy our needs and tastes, you will understand that simultaneous prosperity is possible. Cash serves only to facilitate the transmission of these useful things from one hand to another, which is accomplished just as effectively with one ounce of a rare metal like gold as with a pound of a metal that is more abundant, like silver, or with a half-hundredweight of one that is even more abundant, like copper. It follows that, if the French people had at their disposal double the present supply of useful things, France would be twice as rich, even though the quantity of cash remained the same; but this would not be true if there was double the amount of cash and the supply of useful things did not increase.
ABC: The question is whether the effect of a greater number of écus is not precisely to increase the mass of useful things.
Economist F*: What connection can there be between these two quantities? Food, clothing, houses, and fuel are all the result of nature and work, work that is more or less skilled and exercised over a nature that is more or less bountiful.
ABC: You are forgetting one major factor, namely trade. If you admit that it is a powerful force, and if, as you have agreed, that money like écus facilitates trade, then you ought to agree that these écus have a powerful indirect influence on production.
Economist F*: But I also added that a small amount of rare metal facilitates transactions just as well as a large amount of a more abundant metal, from which it follows that a nation is not made wealthy by being forced to hand over useful things in order to have more money.
ABC: So, according to you, the treasure that is being found in California is not increasing the world's wealth? 1480
Economist F*: I do not believe that it adds very much to the benefits and genuine satisfactions of the human race as a whole. If the gold in California replaces only the gold that is lost and destroyed in the world, it may be useful. If it increases the quantity of it, it will lower its value. Gold prospectors will be wealthier than they would be if this did not happen. But those prospectors who have an amount of gold in hand at the very moment of its depreciation will get less satisfaction in the future than they would have for the same amount before. I cannot see this as an increase but a displacement of genuine wealth as I have defined it.
ABC: All of this is very subtle. But it will be very difficult for you to get me to understand that I am not wealthier, all other things being equal, 1481 if I have two écus instead of one.
Economist F*: This is not what I am saying.
ABC: And what is true for me is also true for my neighbor and my neighbor's neighbor and so on, from one neighbor to another all around the country. Therefore, if each Frenchman has more écus, France is wealthier. 1482
Economist F*: And that is your mistake, a common mistake, which consists in concluding that what is true for one is true for all , and extrapolating from the particular to the general.
ABC: What! Is this not the most decisive of all conclusions? Is not what is true for one true for all? What is all , if not each one gathered into a single unit? It would be just as good telling me that every Frenchman could grow one inch suddenly without the average height of all French people being greater.
Economist F*: The reasoning is plausible, I agree, and this is exactly why the illusion it harbors is so common. Let us examine it, though.
Ten gamblers gather in a drawing room. For reasons of convenience, they used to take ten chips each for which they deposited one hundred francs in the kitty, so that each chip was worth ten francs. After the game, they settled their accounts and the players withdrew from the kitty as many sums of ten francs as they had chips. When he saw this, one of them, perhaps a great mathematician but a poor reasoner, said: "Sirs, constant experience teaches me that at the end of the game, I am all the richer the more chips I have. Have you not noticed the same thing with regard to yourselves? Thus, what is true for me is true in turn for each of you and what is true for each is true for all . Thus, we would all be richer at the end of the game if all of us had more chips. Well, nothing is easier, we just have to distribute twice as many." This was what was done. But, when at the end of the game they came to settle the accounts, they noticed that the thousand francs in the kitty had not miraculously multiplied as had generally been expected. They had to be shared out pro rata , as they say, and the only result (quite an illusion!) was: each person had indeed twice as many chips but each chip, instead of corresponding to ten francs, now corresponded to five only . It was then perfectly clear that what is true for one is not always true for all.
ABC: I can well believe it. You assume a general increase in chips without a corresponding increase in the deposit in the kitty.
Economist F*: And you assume a general increase in écus without a corresponding increase in the things whose exchange the écus facilitate.
ABC: Are you likening écus to chips?
Economist F*: Certainly not, in other respects, but yes from the point of view of the reasoning you have put to me and which I had to argue against. Note one thing. For there to be a general increase of écus in a country, this country either has to have mines or its trade has to take place in such a way that it trades useful things for cash. Apart from these two sets of circumstances a universal increase is impossible, as écus just change hands and in this case, although it is very true that each person taken individually is the richer the more écus he has, the generalization you were making just now cannot be deduced from this, since one écu more in a purse necessarily implies one écu less in another. It is just as in your comparison using average height. If each of us grew only at the expense of others, it would be very true for each person, taken individually, that he would be a finer figure of a man if he were lucky, but it would never be true for all, taken together.
ABC: Very well. But in the two sets of circumstances you have painted, the increase is genuine and you will agree that I am right.
Economist F*: Up to a certain point.
Gold and silver have a value. In order to obtain them, people agree to hand over useful items that also have a value. Therefore, when a country has mines and extracts sufficient gold to buy something useful from abroad, for example a locomotive, it becomes wealthier by all the benefits that a locomotive can produce, exactly as though it had manufactured it. For this country, the question is whether the first option requires more effort than the second; whether if it did not export this gold, the latter might not depreciate in value such that something worse might happen than what we see in California, for at least precious metals are used there to buy useful items that are made elsewhere. That said, in all this one runs the risk of dying of hunger sitting on heaps of gold. What would happen if the law prohibited gold exports?
As for the second possibility, in which we acquire gold through commerce, this is either an advantage or a disadvantage, depending on whether the country's need for it is more or less pressing compared with its equal need for the useful items it has to hand over in order to acquire it. It is for those concerned to judge and not for the law, for if the law is based on the principle that gold is to be preferred over useful items, never mind questions of value, and if it succeeds in acting according to this principle, it would tend to make France into a California in reverse, in which there would be a great deal of cash with which to buy things but nothing to buy. This is still the set of arrangements symbolized by Midas. 1483
ABC: Gold that is imported implies that something useful is exported, I agree, and from this point of view, a certain benefit is taken out of the country. But is it not replaced to some body's advantage and how many new examples of such consumption will not this gold produce as it circulates from hand to hand, stimulating employment and output, until at length it in turn leaves the country, the implication being that something useful has entered?
Economist F*: Here you are at the heart of the question. Is it true that an écu is the reason behind the production of all the products whose trade it facilitates? People readily agree that an écu of five francs is worth just five francs, but they are led to believe that this character is singular in nature, that it is not destroyed like all other things of value or at least only over a very long period, that it is regenerated, so to speak, every time it is passed on, and that in the final analysis this écu has been worth as many times five francs as it has produced transactions and that, all by itself, it has been worth all the things for which it has been exchanged in turn. 1484 People believe that because they suppose that without this écu these items would not even have been produced. People say: "Without it, the shoemaker would have sold one fewer pair of shoes and consequently he could have bought less meat; the butcher would have gone less frequently to the grocer, the grocer to the doctor, the doctor to the lawyer, and so on."
ABC: That seems indisputable to me.
Economist F*: It is just the right time to analyze the true function of cash, setting aside both mines and imports.
You have one écu. What does it signify in your hands? It is both the evidence and the proof that you have, at some time, produced something which, instead of consuming for your own satisfaction, you have got society, in the person of your customer, to enjoy. This écu demonstrates that you have provided a service to society and, what is more, it makes its value apparent. Moreover, it demonstrates that you have not yet drawn from society a genuine and equivalent service, as you have the right to do. 1485 To enable you to exercise this right when and where you please, society, through your customer, has given you an acknowledgement of debt , a title , a voucher from the Republic , a chip , in short an écu , which differs from fiduciary claims only in that it bears its value within itself, and if you are able to read the inscriptions on it with the eyes of the mind, you will decipher distinctly the following words: "P rovide a service to the bearer that is equivalent to the one he has provided to society for a value that has been received, noted, proven, and measured by that which is present in myself ."
You now hand me your écu. Either this is for free or it comes at a price. If you are giving it to me as the price of a service, the following will be the result: your account with society in terms of real satisfactions enjoyed, will be settled, balanced, and closed. You had previously provided a service to society for one écu and you are now paying back the écu for a service; you are now, therefore, even. For my part, I am exactly in the position in which you were a moment ago. It is I who am now ahead of society by the service I have just provided it through your person. It is I who have become its creditor for the value of the work I have done for you and that I might have devoted to myself. It is therefore through my hands that the title for this debt has to pass as the evidence and proof of society's debt. You cannot say that I am richer, for if I am owed something, it is because I have given something. Above all, you cannot say that society is richer by one écu because one of its members has one écu more, since someone else has one less.
If you hand me this écu freely, in this case it is clear that I will be all the richer for it, but you will be all the poorer, and social wealth taken as a whole will remain unchanged, for this wealth, as I have already said, consists in genuine services, real satisfactions, in useful items. You were a creditor of society, you have transferred your rights to me and it is of little matter to society whether it provides the service it owes to you or to me. It acquits itself by providing the service to the bearer of the title to it.
ABC: But if we all had a great many écus, we would all draw a great many services from society. Wouldn't that be very pleasant?
Economist F*: You are forgetting that, in the arrangements I have just described, arrangements which mirror reality, you can draw services from society only because you have paid some in. Services imply both services received and given , for these two terms entail each other, such that they must always be in balance. You cannot imagine society providing more services than it receives, and yet this is the illusion that is being pursued with the multiplication of écus, the debasement of money, the use of paper money, etc.
ABC: All this appears quite reasonable in theory , but in practice 1486 when I see what is happening, I cannot get it out of my head that if by some happy miracle the number of écus happened to increase so that each of us saw his tiny store doubled, we would all be more prosperous. We would all buy more and production would be strongly stimulated.
Economist F*: More purchases! But what would you buy? Doubtless something useful, things likely to provide real satisfaction, foodstuffs, fabrics, houses, books, or pictures. You would therefore have to start by proving that all these things are self-generated by the sole fact that at the Paris Mint (Hôtel des Monnaies) 1487 ingots that have fallen from the moon are being melted down or that at the National Printing Works 1488 someone has set the master plate for Assignats in motion; 1489 for you cannot reasonably think that if the quantity of wheat, cloth, ships, hats, or shoes remains the same, each person's share can be greater, because we all come into the market with a greater quantity of either gold or paper francs 1490 . Remember our gamblers. In the social order, the useful items are those that the workers themselves place in the kitty and the écus that pass from hand to hand are the chips. If you increase the number of francs without increasing the number of useful items, the only result will be that more francs will be needed for each trade, just as each player needs more chips for each bet. You have proof of this in what is happening with regard to gold, silver, and copper. Why does the same exchange require more copper than silver and more silver than gold? Is it not because these metals are distributed around the world in a variety of proportions? What reason have you to believe that if gold suddenly became as abundant as silver, you would not need as much of one as of the other to buy a house?
ABC: You may be right, but I want you to be wrong. In the midst of the suffering that surrounds us, so cruel in itself and so dangerous because of its consequences, I found some consolation in the thought that there was an easy way of making all the members of society happy.
Economist F*: Even if gold and silver did constitute wealth, it would still not be easy to increase their supply in a country with no mines.
ABC: No, but it is easy to substitute something else. I agree with you that gold and silver do not provide much service as instruments of trade. You might as well have paper money, banknotes, and so on. If, therefore, we all have a great deal of this type of money, which is so easy to create, we would all be able to buy a great deal and would lack nothing. Your cruel theory dissipates hopes, or illusions if you like, whose principle is clearly very philanthropic.
Economist F*: Yes, just like the vain hopes that can be formulated for universal happiness. The extreme facility of the means you suggest is enough to demonstrate your proposal's futility. Do you think that if it were enough to print banknotes for us all to be able to satisfy our needs, our tastes or our desires, the human race would have reached this stage without having had recourse to this means? I agree with you that the proposal is seductive. It would instantly banish from the world, not only plunder in all its utterly deplorable forms, but work itself, except for the work of running the Assignat master plate. It remains to be understood how the Assignats would buy houses that nobody had built, wheat that nobody had grown, or fabrics that nobody had taken the trouble to weave.
ABC: One thing in your argument strikes me. According to your own statements, if there is no profit, there is also no loss in increasing the instruments of trade, as can be seen in the example of your gamblers, who reached agreement through a very gentle deception. So why reject the philosopher's stone which will finally reveal the secret of how to change pebbles into gold and while we are waiting for this, paper money? Are you so stubbornly attached to your logic that you would refuse an experiment that carries no risk? If you are mistaken, from what your opponents say, you are depriving the nation of an immense benefit. If they are wrong, from what you say, it is just a question of dashed hopes for the people. The measure, which is excellent according to them, is neutral according to you. Let it be tried, since the worst that can happen is not the production of harm but the non-production of something good.
Economist F*: First of all, dashed hopes already do major harm to a nation. So does a government when it announces the abolition of several taxes in the vain hope that it can rely instead on a resource that is bound to disappear. 1491 Nevertheless, your remark would carry force if, following the issue of paper money and its depreciation, the equilibrium of values were achieved instantaneously, with perfect simultaneity, in all things and in every part of the country. As in my gaming room, the measure would result in a universal hoax at which the best thing would be to laugh when we look at one another. But things do not happen like that. The experiment has been carried out and each time that despots have debased the currency. …
ABC: Who is suggesting that the currency should be debased?
Economist F*: Good heavens! Forcing people to take bits of paper that have officially been labeled francs as payment or forcing them to accept as weighing five grams a silver coin that weighs only two and a half but which has just as officially been labeled a franc , is exactly the same thing if not worse, and all the arguments that can be put forward in favor of counterfeit government issued money 1492 have already been made in favor of Assignats. Certainly taking the point of view which you espoused a short time ago and which you still appear to hold, according to which it was believed that to increase the instrument of trade was to increase the amount of trade itself as well as the number of things traded, people had to believe, in entirely good faith, that the simplest means was to double the number of écus and by law give the half écu coin the same denomination and value as the whole écu coin. Well! In either case, depreciation is inevitable. I think I have told you the reason for this. What remains for me to demonstrate to you is that this depreciation which, on paper, can reach zero, operates by creating dupes 1493 of which the poor, the naive, the workers, and country folk form the majority.
ABC: I am listening, but be brief. This dose of Political Economy is a bit indigestible in one sitting.
Economist F*: Very well. We are thus firmly settled on this point, that wealth is the sum of the useful items that we produce by working, or better still, the results of all the effort we make to satisfy our needs and tastes. These useful items are traded for one another as it suits their owners. These transactions may take two forms: barter , by which a person provides a service and receives an equivalent one immediately in return. Transactions in this form are extremely limited. In order for them to increase in number, to take place over time and space and between people who do not know one another, and to involve ever more diverse kinds of goods, an intermediary has become necessary: money. Money gives rise to trade, which is nothing other than a complex form of barter. This is what should be noted and understood. Trade consists of two operations of barter , that is of two factors, a sale and a purchase , that must be combined in order for it to be possible. 1494 You sell a service for one écu, then with this écu you purchase a service. It is only then that the barter is complete and only then that your effort has been followed by genuine satisfaction. Obviously, you work in order to satisfy the needs of others only in order for others to work to satisfy yours. As long you have in your hands only the écu you have been given for your work, all you are in a position to lay claim to is the work of one other person. And it is when you have done this that the economic process will be complete in your respect, since it is only then that you will have obtained the true reward for your efforts by way of genuine satisfaction. The notion of barter implies a service provided and a service received. Why should this not also be true for the notion of trade, which is just a form of barter in two stages?
Here two comments need to be made in this regard. First of all, it is not very significant whether there is a lot or a little cash in the world. If there is a lot, a lot is needed; if a little, little is needed for each transaction, that is all. The second comment is this: since money is always seen to appear in each trading operation, people have ended up thinking that it is the symbol and measure for all the items traded.
ABC: Do you still deny that cash is the symbol of the useful items you are talking about?
Economist F*: A louis is no more the symbol of a sack of wheat than a sack of wheat is that of a louis. 1495
ABC: What harm is there in thinking that money is a symbol of wealth?
Economist F*: There is this disadvantage, that people believe that it is enough to increase the symbol to increase the items for which it is a symbol, and they fall into all the erroneous measures that you did yourself when I made you an absolute monarch. They go even further. In the same way that money is seen as a symbol of wealth, paper money is also seen as a symbol of money and the conclusion is drawn that there is an extremely easy and simple way of acquiring the comfort of riches for all.
ABC: But you certainly would not go so far as to question that money is the measure of values?
Economist F*: Certainly, I would go that far, for that is exactly where the illusion lies.
It has become the custom to relate the value of all things to cash. People say: "This is worth 5, 10, or 20 francs" just as they say "this weighs 5, 10, or 20 grams, this measures 5, 10, or 20 meters, this field is 500, 1,000, or 2,000 square meters," etc. and from this it has been concluded that money is the measure of values .
ABC: Good heavens, that is because it appears to be so.
Economist F*: Yes, it appears to be so, and this is what I am complaining about, but it is not so in reality. A measure of length, capacity, weight, and area is an agreed upon and immutable quantity. This is not the case for the value of gold and silver. This varies just as the value of wheat, wine, cloth, and labor does and for the same reasons, for they have the same source and are subject to the same laws. Gold is put within our reach exactly as iron is, through the labor of miners, the advance payments made by capitalists, and the co-operation of sailors and traders. It is worth more or less, depending on whether it costs more or less to produce, whether there is a lot or a little on the market, or whether it is more or less in demand; in a word, its fluctuations are subject to the fate of all human production. But there is one thing that is strange, and which is the cause of a great deal of misunderstanding. When the value of cash varies, it is to the other products for which it is traded that people attribute the variation. Thus, I suppose that all the circumstances relating to gold remain as they were and that the wheat harvest had been taken away. Wheat will be dearer; people will say that a hectoliter of wheat that was worth 20 francs is now worth 30 and they will be right, for it is really the value of wheat that has changed, and what they say agrees with the facts. But let us make the contrary assumption; let us assume that all the circumstances relating to wheat remain the same and that half of all the gold in the world is swallowed up. This time, it is the value of gold that will rise. I think people will have to say that this gold napoleon that was worth 20 francs is now worth 40. Well, do you know what people say? They talk as though the other term of comparison has fallen and say, "Wheat that was worth 20 francs is now worth only ten."
ABC: As far as the result goes, it amounts to the same thing.
Economist F*: Doubtless, but imagine all the upheavals and trickery that must occur in trading operations when the value of the intermediary changes without people being warned by a change in the denomination. Debased coins or notes are issued with the face value of twenty francs and they keep this face value through all subsequent depreciations. Their value will be reduced by a quarter or half but they will still be called twenty-franc coins or notes . Clever people will be careful to deliver their products only in return for a greater number of notes. In other words, they will demand forty francs for what they used to sell for twenty in the past. However, naive people will be taken in. Many years will pass before the change is accomplished for all values. Under the influence of ignorance and habit , the daily rate for labor in our country districts will remain at one franc for a long time, whereas the market price for all consumer products rises around them. Labor will descend into dreadful poverty without being able to discern its cause. Finally, Sir, since you want me to stop, I ask you, in concluding, to please pay close attention to this essential point. Once debased money, 1496 in whatever form, is put into circulation, depreciation has to follow, and will be shown by a universal price increase in everything saleable. However, this increase will not be instantaneous and equal for everything. 1497 Those who are clever, the second-hand dealers and businessmen, will emerge relatively unscathed, as it is their job to note fluctuations in price, recognize their cause and even speculate on what is happening. But small merchants, country folk, and workers will all feel the shock. The wealthy will not be any wealthier but the poor will become poorer. The effects of expedients of this type will be to increase the gap between the wealthy and the poor, to paralyze the social trends that constantly bring men closer to the same level, and centuries will then be needed for the long suffering classes to regain the ground they have lost in their march toward the equality of conditions.
ABC: Goodbye, Sir, I will leave you and go to meditate on the dissertation you have just so kindly given me.
Economist F*: Are you already at the end of yours? I have scarcely begun. I have not yet talked to you about the hatred of capital or free credit , 1498 a disastrous sentiment, a deplorable error that is fueled by the same source!
ABC: What! This terrible uprising of the proletarians against the capitalists also results from a confusion between money and wealth?
Economist F*: It is the fruit of a variety of causes. Unfortunately, certain capitalists have claimed monopolies and privileges for themselves that would be enough to explain this sentiment. But when the theoreticians of demagogy wished to justify such sentiment, systemize it, give it the appearance of a reasoned opinion, and turn it against the very nature of capital, they had recourse to the false political economy at the base of which the same confusion is always to be found. They told the people: "Take a one-écu coin, put it under glass, and forget it for one year. Then go and look at it and you will be convinced that it has not generated ten sous, five sous, or any fraction of a sou. Money, therefore, does not produce interest." Then, substituting the word capital , their alleged synonym, for money, they have modified their conclusion thus: "Capital, therefore, does not produce interest." Then comes this series of consequences: "Therefore the person who lends you capital should not gain anything for it; therefore the person who lends you capital is robbing you if he gains anything from it; therefore all capitalists are thieves; therefore, since wealth ought to serve those who borrow it free of charge, in reality it belongs to those to whom it does not belong; therefore there is no property; therefore everything belongs to everyone; therefore …"
ABC: That is serious, all the more so as the syllogism, I must admit, seems to follow perfectly. I would like to clear up the matter but, alas! I cannot control my concentration any longer. I feel the words cash, money, services, capital, and interest buzzing in confusion in my head to the point where, truly, I can no longer think straight. Please let us postpone our discussion to another day.
Economist F*: In the meantime, here is a small volume entitled Capital and Rent . 1499 It will perhaps clear up a few of your doubts. Take a look at it when you are bored.
ABC: Will it relieve my boredom?
Economist F*: Who knows? One thing takes the place of another; one cause of boredom takes the place of another; similia similibus ( like things are cured by like things) 1500 …
ABC: I cannot make up my mind whether you see the functions of cash and political economy in general in their true light. But I have retained this from your conversation: these matters are of the highest importance, for peace or war, order or anarchy, or the agreement or opposition of the citizens depend on their solution. How is it that in France so little is known of a science that affects us all so closely and whose dissemination would have such a decisive influence on the fate of the human race? Is it because the State does not have it taught enough? 1501
Economist F*: Not exactly. It is because, unknowingly, it takes infinite care to flood people's minds with prejudices and instill in every heart sentiments that favor the spirit of anarchy, war, and hatred. So that, when a doctrine favoring order, peace, and union is put forward, however clear and truthful it may be, there is no room for it.
ABC: You really are a dreadful pessimist. What interest has the State in misleading people's minds in favor of revolution and civil and foreign war? You are certainly exaggerating.
Economist F*: Make your own mind up. At the period when our intellectual faculties begin to develop, at the age at which our impressions are so vivid, when habits of mind are so easily brought under control, when we might cast a glance on our society and understand it, in a word, when we reach the age of seven or eight, what does the State do? 1502 It puts a blindfold over our eyes, extricates us gently from the social environment that surrounds us, at a time when our minds are so lively and our hearts so impressionable, in order to plunge us into the bosom of Roman society. It keeps us there for about ten years, the time necessary to make an indelible imprint on our minds. Well, note that Roman society is the complete opposite of what our society ought to be. 1503 Then, people lived on war; we ought to hate war. Then, they hated work; we have to live from our work. Then, the means of subsistence was based on slavery and plunder; now, we live by free industry. Roman society was organized in line with its principle. It had to admire what caused it to prosper. Its people had to call virtues what we call vices. Its poets and historians had to exalt what we ought to scorn. The very words, f reedom, order, justice, people, honor, influence , etc. could not have the same meaning in Rome as they have or ought to have in Paris. Why wouldn't you expect that all our young people who leave university or religious schools, who have had the histories of Livy and Quintus Curtius as their catechism, 1504 would understand freedom as the Gracchi did, virtue as Cato did, and patriotism as Caesar did? 1505 Why wouldn't you expect them to be faction-ridden and warlike? Why would you expect them in particular to take the slightest interest in the workings of our social order? Do you think that their minds are well prepared to understand them? Do you not see that in order to understand them, they would have to divest themselves of the things that have been impressed on them in order to take in ideas that are totally opposite?
ABC: What do you conclude from this?
Economist F*: This. The most urgent need is not for the State to teach but for it to allow teaching to take place. All monopolies are hateful but the worst of all is the monopoly of education. 1506
1445 See below, pp. 000.
1446 See, CRANC, vol. 9, 613 and Charles Louvet, Rapport fait, au nom du Comité des finances, sur la proposition de M. Pierre Leroux ayant pour but de faire rembourser par l'Etat à ses créanciers le sixième de la dette consolidée, soit un milliard environ, en papier de circulation, dit bons d'impôt, par M. Louvet, Séance du 14 avril 1849 (Impr. de l'Assemblée nationale, 1849).
1447 Compte rendu des séances de l'Assemblée Nationale. Exposés des motifs et projets de lois présentés par le gouvernement; Rapports de MM. les Représentants. Tome cinquième. Du 21 Octobre au 30 Novembre 1848. (Paris: Imprimerie de l'Assemblée Nationale (1850). Séance du 24 Octobre 1848, pp. 79-82.
1448 Léon Faucher, Rapport fait, au nom du Comité des finances, sur la proposition du citoyen Pougeard, tendant à remplacer l'impôt extraordinaire de 45 centimes, l'impôt sur les créances hypothécaires et l'impôt sur les successions, par un emprunt forcé de deux cents millions, payable, soit en argent, soit en effets ayant cours de monnaie, par le citoyen Faucher (Léon), Séance du 29 août 1848 (Impr. de l'Assemblée nationale, 1849).
1449 Adolphe Thiers, Rapport fait au nom du Comité des Finances, sur la proposition du citoyen Proudhon, relative à la réorganisation de l'impôt et du crédit: Séance du 26 juillet 1848 (Impr. de l'Assemblée nationale, 1849).
1450 Bastiat, Rapport fait au nom du Comité des Finances, sur le décret relatif au crédit de 2 millions pour secours extraordinaires aux citoyens du département de la Seine qui se trouvent dans le besoin, par le citoyen F. Bastiat, Séance du 9 août 1848 (Impr. de l'Assemblée nationale, 1849).
1451 Molinari, Les Soirées de la rue Saint-Lazare (1849). Translation forthcoming by Liberty Fund.
1452 Achille Fould (1800–1867) was a banker and a deputy who represented the département of Les Hautes-Pyrénées in 1842 and La Seine in 1849. He was close to Louis-Napoléon, lending him money before he became emperor, and then served as Minister of Finance, first during the Second Republic and then under the Second Empire (1849–67). Fould was an important part of the imperial household, serving as an adviser to the emperor, especially on economic matters. He was an ardent free trader but was close to the Saint–Simonians on matters of banking.
1453 Achille Fould, Plus d'assignats. Opinion de M. Achille Fould, sur la situation financière (Paris?: Claye et Taillefer, 1848).
1454 In David Wells' 1877 translation this phrase is translated more coyly as "Hateful money!"
1455 Bastiat is referring to the Finance Committee's Report to the Chamber on 14 April 1849 which was very critical of a proposal put forward by the socialist Pierre Leroux to have the state reimburse some of its creditors the sum of one billion francs with paper money.
1456 In his Sixth Meditation on "Despair" Alphonse de Lamartine writes "Un Brutus, qui, mourant pour la vertu qu'il aime, Doute au dernier moment de cette vertu même, et dit: Tu n'es qu'un nom!" … (A Brutus, who, dying for the virtue which he loves, doubts at the very last moment even this virtue, and says "You are only a name…") Méditations poétique. Troisième édition (Paris: Librairie Grecque-Latine-Allemande, 1820), p. 27.
1457 Croesus (595-547 BC) was King of Lydia until he was defeated and captured by the Persians. His name was synonymous with great wealth. The river Pactolus ran through the Lydian city of Sardis and gold was mined from the river silt thus providing the ore to make the gold coins for which Croesus was famous. He made a name for himself in the ancient world with generous gifts to Greek temples such as the rebuilding of the Temple of Artemis at Ephesus.
1458 Fénelon relates in one his Fables ("VII. L'Anneau de Cygès") numerous stories about Croesus's love of sumptuously made chariots. Callimachus describes one chariot used by Croesus and his Queen which was made of pure silver and decorated with luxurious sculptures in which they liked to ride about discussing matters of state. Another story concerns the sometimes reckless behaviour of the King who liked to have the teeth and claws of lions, tigers, and leopards filed down and then harnessed to chariots made of tortoise shell with silver decorations. These wild animals were used to amuse members of the Court by the staging of chariot races through the neighbouring forest along the river, presumably where onlookers who were too close might get splattered with mud. Oeuvres de Fénelon, archevéque de Cambrai, précédées d'études sur sa vie, par M. Aimé-Martin . Tome deuxième. (Paris: Didot fréres, 1838), pp. 520-21.
1459 The brothers Antoine and Philippe Girard were actors, jugglers, and sellers of patent medicines in Paris in the early 17th century. Antoine Girard played the part of "Tabarin" and Philippe Girard played the part of his master "Mondor." They wore brightly coloured costumes and entertained passers-by with witty, philosophical, seductive, and sometimes scatalogical songs and dialogue in order to persuade them to buy their merchandise. Their routine was much admired and copied and become known as "les tabarinades" (or "coq-à-l'âne" i.e. cock and bull stories).
1460 Zoilus (c. 400-320 B.C.) was a Greek grammarian and philosopher who lived in Thrace. He was a renowned critic of the poetry of Homer and got a reputation for harsh even slanderous criticism of authors.
1461 "ABC" falsely believes "F" is like the other socialist planners and dreamers who want to "reorganise" society to make it an "artificial organisation" and that he wants to be the "Legislator" who will create and plan that new society. Bastiat puns here by using the term "the F* system " which refers to the "système fourieriste" which the socialist Charles Fourier dreamed up where individuals would live and work in common based upon units known as "phalasteries." See the glossary entries on "Fourier," "Phalanstery," and "The Social Mechanism," as well as the Editor's Introduction to "Natural and Artificial Organisation" (Jan 1848), above, pp. 000.
1462 To classical liberals like Bastiat Spartan society would have seemed like a form of militarized socialism where citizens were banned from engaging in any form of manual productive work (this was left to the slave-like Helots) and where the only form of currency permitted until the 3rd century BC were impractical iron bars worn as brooches. The Economists believed that the socialist and communist ideas of their own day had their origins in the ancient Greek and Roman world as Alfred Sudre (1820-1902) makes clear in Histoire du communisme ou Réfutation historique des utopies socialistes (Paris: Victor Lecou, 1848), Chap. II "Le communisme de Lacédémonie et de la Crète," pp. 6-17.
1463 Pierre Joseph Proudhon (1809-65) was a political theorist, considered to be the father of anarchism. Like Bastiat he was elected to the Constituent Assembly in 1848. He is best known for Qu'est-ce que la propriété? Ou recherches sur le principe du droit et du gouvernement (1841). His controversy with Bastiat on the subject appears in in the form of letters between Bastiat and Proudhon, "Free Crdit,"below, pp. 000. See the glossary entry on "Proudhon."
1464 The "sou" is an ancient French coin which dates back to the Roman Empire. Originally called the "solidus" its name gradually changed over time into "soldus," "solt" (11th century), "sol" (12-18th centuries), and then "sou," a name which was retained after the decimalization currency reforms of 1795 at which time the sou was worth 1/20th of a franc or one 5 centime coin.
1465 Proudhon lobbied the Constituent Assembly in 1848 to set up a "Banque d'échange" (Echange Bank) which would offer zero interest loans to workers. When this came to nothing he attempted to found his own "Banque du Peuple" (The Peoples' Bank) in early 1849 by selling subscriptions to share holders. This too failed very quickly.
1466 Diogenes (413-327 BC) was a Greek philosopher who renounced wealth and lived by begging from others and sleeping in a barrel in the market place. His purpose was to live simply and virtuously by giving up the conventional desires for power, wealth, prestige, and fame. His philosophy went under the name of Cynicism and had an important influence on the development of Stoicism.
1467 Lucius Annaeus Seneca (ca. 4 BC – AD 65) was a Roman Stoic philosopher who was the tutor and an advisor to Emperor Nero. He advocated leading a simple life and the acceptance of one's fate in life. He committed suicide when ordered to by Nero who accused him of plotting against him.
1468 Bastiat makes several references to Legislators who attempted to found societies based upon their own notions of what was right and proper for their citizens to do. See the long footnote in "Barataria" for a discussion of Minos, Lycurgus of Sparta, Solon of Athens, and Numa of Rome. The "Economist F*" plays a game with the character "ABC" by encouraging him to act if he were such a Rousseauian Legislator who could introduce whatever economic legislation he liked in order to achieve his goals.
1469 This is an amusing reversal of the situation in ES2 11 "The Utopian" where a "utopian" free market politician much like Bastiat is offered the position of Prime Minister by the King with the power to introduce any political and economic reforms he would like. "The Utopian" therefore sets out to radically reform French society but pulls back at the last moment. See ES2 11 "The Utopian" CW3, pp. 187-98. See also "Barataria where Sancho is made king of the island and refuses to induce the socialist policies advocated by Don Quixote. See below, pp. 000
1470 See the footnotes on Bacon and Montaigne below.
1471 The "écu" was a French coin which had its origins in the medieval period. Its main design feature was an image of a shield ("bouclier") hence its name. It began as a gold coin with a value of 3 Livres but after the reign of Louis XIII it became a silver coin worth 60 sols and was called the "écu blanc" (white écu). During the monetary reforms of the French Revolution (1795) a silver coin worth 5 francs was created and it kept the name écu until further reforms were introduced in 1878.
1472 Bastiat criticised the idea of the "balance of trade" and mercantilist trade policies on several occasions. See for example, "On the Export of Gold Bullion" (12 Dec. 1847), above, pp. 000; and "The Balance of Trade" (29 March 1850), below, pp. 000.
1473 In ES2 7 "A Chinese Tale" Bastiat describes the Custom Service as an "army of managers, deputy managers, inspectors, deputy inspectors, controllers, checkers, customs collectors, heads, deputy heads, agents, supernumeraries, aspiring supernumeraries and those aspiring to become aspirants, not counting those on active service." Horace Say also calls those who work for the Customs Service "une armée considérable" (a sizable army) which numbered 27,727 individuals (1852 figures). This army is composed of two "divisions" - one of administrative personnel (2,536) and the other of "agents on active service" (24,727). See ES2 7 "A Chinese Tale," CW3, pp. 163-67; quote on p. 164; and Horace Say, "Douane", DEP, vol. 1, pp. 578-604 (figures from p. 597).
1474 In his "Introduction" to Cobden and the League (1845) Bastiat demonstrates the links between protection, taxes, colonialism, war, and the aristocracy in an 8 point list. See CW6 (forthcoming).
1475 See below for a discussion of Montaigne's quote.
1476 Bastiat used the phrase "numéraire fictif" (imaginary or false money).
1477 Bastiat paraphrases a line from Bacon's essay "Of Seditions and Troubles": "It is likewise to be remembered, that, forasmuch as the increase of any estate must be upon the foreigner, (for whatsoever is somewhere gotten is somewhere lost,) there be but three things which one nation selleth unto another; the commodity as nature yieldeth it; the manufacture; and the vecture or carriage. So that if these three wheels go, wealth will flow as in a spring tide." The following paragraph also has a line which would have interested Bastiat in the context of his discussion of money: "Above all things good policy is to be used, that the treasure and monies in a state be not gathered into few hands. For, otherwise, a state may have a great stock, and yet starve. And money is like muck, not good, except it be spread." See Essays, Moral, Economical, and Political. By Francis bacon, Baron of Verulam, and Viscount of St. Albans. A New Edition, withy the Latin quotations translated. To which are now added his apothegms, select sentences, Christian paradoxes, confession of faith, and essay on death. (Boston: William Hillard, 1833). "Of Seditions and Troubles," pp. 49-57. The quote is on p. 54.
1478 Bastiat wrote a draft of an Economic Sophism he planned to write on Montaigne's maxim which he described as the "standard sophism, one that is the very root of a host of sophisms." See ES3 15 "Le profit de l'un est le dommage de l'autre" (One Man's gain is another Man's Loss) (c. 1847), CW3, pp. 341-43. Michel de Montaigne, Essais de Montaigne, suivis de sa correspondance et de la servitude voluntaire d'Estienne de la Boëtie. Édition variorum, accompangné d'une notice biographique de notes historiques, philologiques, etc. et d'un index analytique par Charles Louandre (Paris: Charpentier, 1862), Tome 1, chapter XXI "Le profit d'un et dommage de l'autre," pp. 130-31. See the glossary entry on "Montaigne." The French editor Louandre notes that Montaigne is commenting on a passage from Seneca's de Beneficiis , VI, 38. He also notes that Rousseau expressed similar views in Émile , Book III: "dans l'état social le bien de l'un fair nécessairement le mal d'autre."
1479 Shem, Ham and Japheth were the sons of Noah. Genesis 10:1.
1480 The California gold rush had began with the discovery of gold at Sutter's Mill in January 1848 and the hundreds of thousands of gold seekers who flocked to the gold fields were known as the "forty niners" (1849). At this time California was not yet a state in the Union (it was admitted in September 1850) and was occupied by the U.S. following the Mexican-American War 1846-1848.
1481 Bastiat uses the phrase "toutes choses égales d'ailleurs" (all other things being equal). See the glossary entry "Ceteris paribus."
1482 A similar argument is made in the sophism ES1 11 "Nominal Prices," (October 1845), CW3, pp. 61-64.
1483 King Midas was ruler of the Greek kingdom of region Phrygia (in modern day Turkey) sometime in the 8th century BC. According to legend he had the power to turn into gold anything he touched. Aristotle wrote that this Golden Touch backfired and Midas died of starvation because all the food he picked up to put in his mouth turned into inedible gold. Another legend says that he eventually got bored and disillusioned with this power and retired to the country where he fell in love with Pan's flute music. In a competition between Pan and Apollo to see who played the best music King Midas chose Pan's flute over Apollo's lyre. Apollo was so incensed at the tin ears of Midas he turned them into the ears of a donkey. See Bastiat's use of this latter version of the story in ES2 9 "Theft by Subsidy" (January 1846), CW3, pp. 170-79.
1484 Bastiat is describing here a version of the theory of the multiplier effect.
1485 See the glossary entry on "Service for Service."
1486 See Bastiat's ES1 13 on the supposed opposition between "Theory and Practice," CW3, pp. 69-75.
1487 The "Hôtel des Monnaies" is on the quai de Conti in the 6th Arrondissement in Paris and was constructed in the 18th century to house the Paris Mint ("la Monnaie de Paris") and the Museum of Money.
1488 The National Printing Works (L'Imprimerie nationale) is located on the Rue de la Convention, 15th Arrondissement in Paris. It was founded as the Manufacture royale d'imprimerie by Cardinal Richelieu in 1640.
1489 Assignat was the name given to the paper currency issued by the National Assembly between 1789 and 1796. They were originally issued as bonds based upon the value of the land confiscated from the church ("biens national") and were intended to pay off the national debt. Later they became legal tender in 1791. Overissue led to a spectacular hyperinflation which wiped out their value in a few years. The initial number issued in April 1790 was 400 million; in September 1792 2.7 billion were in circulation; and by the beginning of 1796 when they were abandoned there were perhaps 45 billion in circulation. In an effort to control the rise in prices caused by this inflation various attempts were unsuccessfully made to regulate prices such as the "Maximum" in 1793. As a result of this experience Napoleon returned the country to a gold backed currency, the franc, in 1803. See Andrew D. White, Fiat Money Inflation in France, How it came, what it brought and how it ended (New York: D. Appleton & Co., 1896) ; Charles Coquelin, "Assignats" DEP vol. 1, pp. 77-78.
1490 Bastiat uses the phrase "francs métalliques ou fictifs" which we have translated as "gold or paper francs."
1491 Bastiat has in mind here the pressure which was put on the National Assembly during 1848 to abolish some taxes entirely (like the hated salt tax) without cutting expenditure, and thus make the budget deficit worse. Some on the left, wanted the government to pay its way with paper money; Bastiat recommended deep cuts in expenditure followed by similar large cuts in taxation. When the cuts to expenditure did not come about, Bastiat reluctantly agreed in late 1848 to cuts in the level of the salt tax but not its abolition. See the note above on the activities of the Finance Committee, and the introduction to "The Salt Tax" (June 1847) (above).
1492 Bastiat uses a very strong expression here - "la fausse monnaie légale" which one might translate literally as "counterfeit government issued paper money."
1493 Bastiat uses the word "dupes" which is part of his theory of "economic sophisms." The vested interests (such as protected industries) who use the power of the state to acquire economic benefits at the expense of ordinary consumers are able to do so because of the widespread acceptance of bad economic arguments (economic fallacies or "sophisms") and the willingness of people to be deceived or "duped." Bastiat believed that it was the task of economists to expose these economic "sophisms" and to enlighten the dupes as to what their real interests were.
1494 See Say's discussion in the Traité d'économie politique , Book I, Chapter XXI "De la nature et l'usage des Monnaies" (On the Nature and use of Money) on how money is the essential intermediary between two exchanges, or as Say states it, "une vente d'abord, et ensuite un achat" (first a sale followed by a purchase), p. 242. Jean Baptiste Say, Traité d'économie politique, ou simple exposition de la manière dont se forment, se distribuent et se consomment les richesses. Sixième édition entièrement revue par l'auteur, et publiée sur les manuscrits qu'il a laissés, par Horace Say , son fils (Paris: Guillaumin, 1841).
1495 The "louis" was a gold coin issued during the Old Regime which weighed 6.75 grams. It was first issued by Louis XIII in 1640 and had his head printed on one side, hence the name "louis". During the Napoleonic period the "louis" had a value of 20 francs and the head of the king was replaced by that of Napoleon. As each regime changed in France the head of the current ruler was used on the coin until 1914 when the coin bore a gallic cock on one side and Marianne, or the figure of "lady liberty," on the other.
1496 Bastiat uses the term "fausse monnaie" which might be translated as "counterfeit money." However, we think "false or debased money" is a better translation in this context.
1497 Bastiat is close but has not quite reached the insight of Austrian school economists who argue that the first people to receive the new money created by banks are the ones to benefit the most. Bastiat argues that the "smartest" or most "experienced traders" will be best able to avoid being hurt by the depreciation.
1498 See his essay on "Capital and Rent" (above, pp. 000) for a defense of interest earned on capital and"Free Credit" (below, pp. 000) on his exchange with Proudhon on the idea of free credit which took place between October 1849 and March 1850.
1499 Bastiat wrote the pamphlet "Capital and Rent" in February 1849 and it was published soon after by the Guillaumin publishing firm. See above, pp. 000.]
1500 The quote: similia similibus curantur ( like things are cured by like things) .
1501 The teaching of political economy was a sore point for the Economists. Bastiat had to abandon his series of lectures at the School of Law when revolution broke out in February 1848. Opposition to their teaching reached a peak during the Revolution when the Provisional Government early in 1848 closed down Michel Chevalier's chair in political economy at the Collège de France and replaced it with a school for government bureaucrats and administrators. They succeeded temporarily but intense lobbying by the Political Economy Society and their friends like Bastiat in the government had the decision reversed in November that same year. See the glossary on "Teaching Political Economy in the Universities."
1502 Bastiat had a life long interest in education which stemmed from his own rather unusual experience in going to an innovative school in Sorèze (1814-18) where modern languages and music was taught instead of the Classics. He also began a school for the children of his sharecroppers in Mugron attendance at which he subsidized. See his articles "On a New Secondary School to be founded in Bayonne," pp. 415-19 and the "Freedom of Teaching," pp. 419-20 in CW1; and "Baccalaureate and Socialism," pp. 185-234 in CW2.
1503 Bastiat's hostility to a classical education is a recurring theme in his letters and his other writings which are too numerous to mention here.
1504 Livy and Quintus Curtius were Roman historians who wrote about Roman and Greek imperial expansion and conquest. Titus Livius Patavinus (Livy) (59 BC – AD 17) wrote a lengthy history of Rome from its founding up to the reign of Augustus. He had family and political connections with the powerful Julio-Claudian family. Quintus Curtius Rufus was a Roman historian who lived during the 1st century A.D. His only surviving work is a lengthy history of Alexander the Great.
1505 Bastiat's references to the Gracchi, Cato, and Caesar are ironic. The Gracchi brothers, Tiberius Gracchus (162-133 B.C.) and Gaius Gracchus (154-121 B.C.) were Roman patricians who both held the office of tribune at different times. They attempted to introduce significant land reform in ancient Rome. In response to an economic crisis they proposed to limit the size of the land holdings of aristocratic owners and distribute parcels of land to the poor. They failed to achieve this and were crushed by force. They have been seen by socialists as precursors of the modern socialist movement. The French socialist Babeuf even adopted the pseudonym "Gracchus" in hommage to them. Since Cato the Younger was a politician in the late Roman Republic and a noted defender of "Roman Liberty" and opponent of Julius Caesar, Bastiat is probably not referring to him but to his ancestor Cato the Censor, Marcus Porcius Cato (234-149 BC), who used his political position to stamp out "usury" and ostentatious living, hence earning the nickname "the censor". The final reference is to Gaius Julius Caesar (100-44 BC) whose activities as general, Consul, and the underminer of the Roman Republic Bastiat totally opposed.
1506 Bastiat discusses at some length his criticisms of the French education system, especially the insidious influence Bastiat thought the teaching of classics had on French youth, in " Baccalaureate and Socialism," CW2, pp. 185-234.
T.276 "Comments at a Meeting of the Political Economy Society on the Peace Congress and State support for an Experimental Socialist Community" (10 May 1849)↩
SourceT.276 (1849.05.10) Bastiat's comments on the Peace Congress and state support for an experimental socialist community at a Meeting of the PES (Séance de 10 mai 1849). In "Chronique," JDE, T. 23, no. 98, 15 mai 1849, p. 216; also ASEP (1889), pp. 74-75. Not in OC. [CW4]
Editor's IntroductionThis is the fifth record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
The meeting begins with a discussion of the Society's plans for the big International Friends of Peace Conference which was to be held in Paris in August later that year and in which several of the Society's members would play a significant role. The Friends of Peace organised a series of international conference to promote their ideas between 1843 and 1853. The first one took place in 1843 on the initiative of the American Peace Society, the President of which was Elihu Burritt, 1507 and the English Quaker Joseph Sturge. 1508 Some 340 delegates attended, the bulk of which were British. The second conference was organized by Elihu Burritt and chaired by the Belgian lawyer Auguste Visschers 1509 and took place in Brussels in September 1848. The third Congress was held in Paris in 22-24 August 1849 and was chaired by the novelist Victor Hugo, and Richard Cobden and Bastiat gave important speeches. 1510 The 4th was held in Frankfurt in August 1850 with 600 delegates, the 5th in London in July 1851, the 6th in Manchester in 1852, and the 7th in Edinburgh in 1853. The Congresses came to an end with outbreak of the Crimean War in 1854. Joseph Garnier was one of the organisers of the 1849 Paris meeting and edited a volume of its Proceedings which included Bastiat's speech.
The second topic of discussion was Victor Considerant's 1511 recent speech in the Chamber on 13 April, 1849 in which he reiterated his demand that the government fund an experimental socialist community in order to demonstrate the viability of socialism. The first time he had done this was a couple of days after the February Revolution broke out when he and the other editors of the Fourierist magazine La Démocratie pacifique circulated on the streets of Paris a petition calling on the Provisional Government to create a Ministry of Progress and the Organisation of Work to study socialist ways to reorganise society. They especially called for support from the new government for funding of small experimental socialist communities which would quickly demonstrate (they believed) the feasibility of much larger, even nation wide socialist policies. The key passage was:
In order to organize production in French society, you have to know how to organize it at the village level, in the living and breathing workshops of the nation. Any serious doctrine of social development must therefore succeed at the level of the basic workshop and be tried out initially on a small parcel of land. Let the Republic therefore create a Ministry of Progress and Organization of Production whose function will be to examine all the plans put forward by the various socialist doctrines and to support one of them for a local, free, and voluntary experiment carried out in a territorial unit, the square league. 1512
Bastiat quickly responded to this petition in the 6th issue of his street magazine La République française (Thursday 2 March, 1848) with his own "Petition from an Economist" in which he said a better option would be to set up competing experimental communities to see which one produced the greatest peace and prosperity. He wanted to register his own experimental community with the government to put into practice laissez-faire economic policies.
If this idea is put into practice, we will ask that we too be given our square league to try out our ideas. Why, after all, should the various socialist schools of thought be the only ones to have the privilege of having at their disposal square leagues, basic workshops, and everything which constitutes a locality, in short, villages? 1513
His experimental community would be funded by a low flat tax on income on all residents "to ensure the respect of persons and ownership, the elimination of fraud, misdemeanors, and crimes." Aside from this the government would do nothing and "religion, teaching, production, and trade would be perfectly free." He predicted that it would soon be more productive and peaceful than any other experimental community, especially the socialist ones.
Victor Considerant returned to this idea in a speech in the Chamber on 13 April, 1849 1514 which is what the Economists were referring to in this meeting of the Society (10 May 1849). He wanted the French government to give him and his followers some government owned land (1200-1600 hectares; about 4,000 acres) outside Paris and enough money to build homes and workshops which, he promised, would prove in a very short time the viability of socialism. Joseph Garnier estimated that this amounted to a gift to the socialists from the French taxpayers of some 4-5 million francs. The lawyer Claude-Marie Raudot jokingly said that you would not have to built entirely new communities from scratch if you had enough money to pay everybody 10,000-20,000 francs to behave differently.
Bastiat returned to Considerant's proposed experiment community in Economic Harmonies where he dismissed these schemes in a similarly mocking fashion:
TextAccording to current parlance, it was a question of trying things out: Faciamus experimentum in corpore vili (Let us experiment on a worthless body). And people seemed to have reached such a degree of scorn for individuality, assimilating man so closely to inert matter, that people spoke of carrying out social experiments on people just as you carry out chemical experiments using alkalis and acids. The first experiment was begun in the Luxembourg Palace, and we know what result it produced. Shortly after this the Constituent Assembly set up an Employment Committee, in which thousands of social plans were engulfed. We saw a representative of Fourierism seriously asking for land and money (he would doubtless not have waited long before asking for men as well) with which to manipulate his model form of society. 1515
In spite of the sad events taking place at the present time, 1516 we observe with great satisfaction that the enthusiasm of "the friends of peace" has not relented. Messrs Elihu Burritt, the president of the Society in the United States, (Henry) Richard, 1517 secretary of the Peace Society in London, and M. (Auguste) Wisschers, president of the last Peace Congress which was held in London, have spent several days in Paris to lay the foundation of a Congress which will take place in Paris in early August (of this year). Several important religious, political, and scientific figures from government and the press have promised their support for this event. The Political Economy Society decided at the meeting that it will instruct its office to represent the Society at the Peace Congress. 1518
At the same meeting, presided over by M. Horace Say and assisted by several members of the Constituent Assembly (including M. Victor Lefranc among others) who have shown themselves to be very favourable to the idea of such a Congress, the conversation also turned to the question of whether or not the State ought to support experimental socialist communities. The negative point of view was given by Messrs Bastiat, Howyn de Tranchère, 1519 and Raudot. 1520 M. Bastiat in particular invoked the great principle of the non-intervention of the State, without which the need for and expences of the government would have no limits. M. Howyn de Tranchère delivered a critique of socialist systems and their inanity which was spirited and full of good sense. Finally, M. Raudot showed with some economic figures that the millions of francs which the leaders of these schools of thought 1521 have soaked up in order to make a few hundred citizens better off, will soon show the tax-payers the impossibility of continuing with this largesse, and that, in any case, there would be no need for a new social mechanism to make people happy at a rate of 10 or 20 thousand francs per person, even if there were enough to go around.
Without challenging any of these principles, criticisms, or figures brought up by these honourable members, M. Joseph Garnier maintained that the (financial) support of the State ought to be offered and given to the heads of theses schools of thought in order to back them into a corner and thus (make them) work towards disillusioning the people who had fought against social order with weapons in their hands, and who have cost society as a whole torrents of blood and billions of francs. Indeed, M. Joseph Garnier referred to the subsidies M. Considérant had demanded in one of the recent sittings of the Chamber of Deputies, namely a grant of 15 to 1800 hectares close to Paris, in addition to capital of 4-5 million francs in order to establish a Fouriest Phalanstery of 500 people.
1507 Elihu Burritt (1810-1879) was active in the abolitionist movement and the peace movement, becoming the president of the Society of the Friends of Peace in the United States.
1508 Joseph Sturge (1793-1859) was an English Quaker, pacifist, supporter of the Chartist movement, and abolitionist. He founded the British and Foreign Anti-Slavery Society in 1823 and was active also in the London Peace Society. In 1854 he led an unsuccessful delation of Quakers to speak to Tsar Nicholas I of Russia to help prevent the outbreak of the Crimean War.
1509 Auguste Visschers (1804-1874) was a Belgian lawyer and peace activist. He chaired the Peace Congress which was held in Brussels in September 1848.
1510 See Bastiat's speech on "Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement" given at the August meeting, below, pp. 000.
1511 The glossary entry on "Victor Prosper Considerant."
1512 Pétition au gouvernement provisoire. Ministère du progrès et de l'organisation du travail, pour étudier la question sociale et réaliser, dans l'intérêt de tous, la liberté, l'égalité, la fraternité par l'association libre et volontaire . (Signé : Les rédacteurs de "la Démocratie pacifique".) (Paris: Impr. de Lange Lévy, [Feb. 1848]).
1513 "Petition from an Economist," La République française (Thursday 2 March, 1848), p.2. Also in CW1, pp. 426-29. Quote on p. 427.
1514 CRANC, vol. 9, pp. 614 ff. but especially pp. 621-22.
1515 EH, Chap. IV Exchange, pp. 000.
1516 Louis Napoléon's government had enough votes in the Assembly on 25 April to send French troops to reinstate Pope Pius IX who was forced to flee Rome by republicans in Italy. Bastiat voted against this measure.
1517 Henry Richard (1812-1888) was an English Congregational Minister and Member of Parliament who was active in the Peace Society, of which he was the secretary for 40 years (1840-1888), and the abolition of slavery.
1518 The Paris Friends of Peace Congress was held between 22-24 August in Saint-Cecila Hall. It was presided over by Victor Hugo. The Political Economy Society was represented by Joseph Garnier, who helped organise the even and edited its Proceedings, and Bastiat who gave one of the major speeches on the second day.
1519 See the glossary entry on "Hovyn deTranchère."
1520 Claude-Marie Raudot (1801-1879) was a lawyer and magistrate who became a Deputy representing l'Yonne during the Restoration of the Bourbon monarchy during the 1820s and then again from 1848-1851 and 1871-1876. He voted with the conservative right. In 1874 he was the President of the Budget Committee in the Third Republic.
1521 This is a reference to Louis Blanc and the National Workshops program which sprung up soon after the February Revolution to provide state-funded unemployment relief. Bastiat vigorously opposed this as Vice-President of the Finance Committee. The Chamber decided to close them down in May 1848 due to its spirally costs, thus sparking the June Days rioting the following month.
T.230 "Capital" (mid-1849, Almanac rép.)↩
SourceT.230 (summer 1849) "Capital" (Le capital). Published in Almanach Républicain pour 1849 (Paris: Pagnerre, 1849). Bastiat mentions the cholera outbreak which swept through Paris in July-Aug. 1849 so this might date the publication. [OC7.64, pp. 248-55.] [CW4]
Editor's IntroductionMany of the political economists attempted to reach out to a broader audience after the Revolution broke out in February 1848 by writing more popular books and pamphlets in order to appeal to the workers who had been influenced by socialist ideas. Bastiat and Molinari edited, wrote, and handed out two revolutionary newspapers on the streets of Paris - one in February-March, called La République française , and another in June 1848, which was named Jacques Bonhomme after the French "everyman" who appeared in every issue with pronouncements and commentary on the events of the week and was clearly the voice of Bastiat himself. 1522 The Guillaumin publishing firm arranged for some of the economists to write pieces in the form of conversations or dialogues between workers or socialists, and conservatives, and supporters of the free market, which they marketed as part of their anti-socialist campaign in 1848-49. Two of the best examples which were modelled on Bastiat's clever dialogues in the Economic Sophisms were Molinari's conversations between "a Socialist," "a Conservative," and "an Economist" in Les Soirées de la rue Saint-Lazare (1849) 1523 and the Swiss economist Antoine-Elisée Cherbuliez's Le potage à la tortue (Turtle Soup) which was a series of conversations between "a worker" and "a professor." 1524
Another important figure in this strategy was the young Mauritian economist Alcide Fonteyraud (1822-1849) 1525 who also worked on Bastiat's two revolutionary journals. Because of his oratorical gifts he played an important role in the economists' debating club "Le Club de la liberté du travail" (The Club for the Freedom of Working) which took on the socialist debating clubs on the streets of Paris in March and April 1848 before it was forced to close because socialist thugs were beating up and intimidating the economists and their supporters. 1526 Fonteyraud wrote in early 1849 an introduction to political economy which was published in a widely distributed popular encyclopedia of useful knowledge, Instruction for the People: 100 Treatises on the Most Indispensible Knowledge , 1527 before he died suddenly during the cholera epidemic which swept France in the summer of 1849.
Another example of Bastiat's contribution to this campaign of popularization was this pamphlet published in a radical republican journal, the Almanach Républicain, whose aim was to "gather together all the intelligent elite, who wanted to consolidate the Republic through the education of the People." 1528 It was published by Laurent Pagnerre 1529 who, like Bastiat, had been elected to the National Assembly in April 1848. He was appointed the Director of a new bank, the Comptoir d'escompte de Paris, which had been established in March 1848 by the Minister of Finance Louis-Antoine Garnier-Pagès to help solve the liquidity crisis caused by the revolution and the collapse of the banking system of the July Monarchy. Pagnerre would would have been well known to him since Bastiat served as Vice President of the Assembly's Finance Committee which would have discussed monetary policy on many occasions. It is rather strange that Pagnerre would ask Bastiat to write this piece on "Capital" given Bastiat's strong opposition to attempts by the government to issue unbacked paper money to solve its liquidity problem, as he stated forcefully in his pamphlet "Damned Money!" (April 1849). Bastiat's other anti-socialist pamphlets for the most part were aimed at intellectuals and some educated workers, such as the readers of Proudhon's magazine La Voix du peuple (The Voice of the People) in their debate over "Free Credit" in late 1849 and early 1850 (see below).
This essay was probably written over the summer of 1849 when Bastiat was in seclusion in the Butard hunting lodge in a forest just outside Paris which had been lent to him so he could work on finishing his treatise Economic Harmonies . His reference to the cholera epidemic which killed thousands of Parisians in August suggests a late summer date. Thus, he would have written this essay while he was also working on the chapter on "Capital" (Chap. VII) which would appear in the book. The latter was much more technical and theoretical in nature, while the former was designed for a more popular readership. Bastiat's strategy in the essay was to persuade ordinary workers that capital was not their enemy (like some plague or scourge) but rather the means for them to get higher wages in the medium to long term. The more capital there was in the form of "materials, tools, and provisions," the more productive the workers' labour was, and thus the higher the wages they would be paid. So, instead of supporting Louis Blanc and his government make-work schemes in the National Workshops, and Proudhon's schemes for a low or free interest People's Bank, the workers should be supporting the economists' policy of "security for property, freedom of economic activity, and economy in government spending."
The influence of Louis Blanc and his National Workshops program on the workers was one that Bastiat tries to counter in this essay. 1530 A more formidable theoretical opponent whose views he and the other economists had to counter was Proudhon. 1531 In a series of works Proudhon attacked the very heart of the free market position with his attacks on the legitimacy of property ("property is theft") in Qu'est-ce que la propriété? ou Recherche sur le principe du droit et du gouvernement (What is Property? or Research on the Principles of Justice and of Government) (1840), that the free market inevitably produces conflict and disharmony in Système des contradictions économiques (The System of Economic Contradictions) (1846), and that workers have the right to a job guaranteed by the state if necessary in Le droit au travail et le droit de propriété (The Right to a Job and the Right to Property) (1850). Bastiat and Proudhon would also have clashed personally in the Constituent Assembly to which both had been elected and they would meet again in a much more extended debate which took place at the end of 1849 in Proudhon's journal la Voix du Peuple (The Voice of the People) over a period of 3 months on the topic of the legitimacy of charging interest and free credit. Their exchanges were published in early 1850 as separate books by both Proudhon and Bastiat - Gratuité du crédit (Free Credit) (1850) (see below, pp. 000). There is some evidence that this article in Almanach Républicain came to the attention of the readers of Proudhon's magazine, some of whom were persuaded by Bastiat's arguments. To counter Bastiat's influence over these workers, the editor F.C. Chevé began a debate with Bastiat in the pages of L a Voix du peuple in October 1849 which Proudhon took over even though he was still in prison for having insulted the President of the Republic in print. The full exchange between the two can be found below, pp. 000.
It should also be noted that in this essay Bastiat uses the thought experiment of the story of Robinson Crusoe on his island to explain the nature of individual economic decision making which is one of Bastiat's significant contributions to economic theory. 1532 His first use of "Crusoe economics" can be found in "Organisation and Liberty" ( JDE , January 1847), which was followed by "Making a Mountain out of a Mole Hill" (ES3 16, in CW3, pp. 343-50), "Something Else" (LE, 21 March 1847) in ES2 14, CW3, pp. 226-34, "Property and Plunder" ( JDD, 24 July 1848) in CW2, pp. 147-84, and then the most detailed use of it in the chapter on "Exchange" in Economic Harmonies (1850). Interestingly, Proudhon also uses Robinson Crusoe extensively in his critique of free market economics in the "9th Letter" on Free Credit (Dec. 1849) (see below). Bastiat's use of "Crusoe economics" was largely ignored for 100 years until it was taken up in the 1950s by Murray Rothbard when he was reworking the foundations of modern Austrian economic theory in his book Man, Economy, and State (1962). 1533
On Bastiat's other writings on credit see the Editor's Introductions to "Capital and Rent" (above, pp. 000) and "Free Credit" (below, pp. 000).
TextWho does not recall the shiver of terror that ran through an astonished Europe when travelers, returning from far-off lands, brought the following news to their ears: "India has spewed out cholera over the world! It is growing, spreading, advancing and decimating nations in its passage, and our civilization will not stop it." 1534
Could it conceivably be true that civilization in its turn, jealous of barbarism, has given birth to a scourge a thousand times more terrible, a devouring monster or a cancer that attacks the most sacred thing of all, labor , the very sustenance of the life of nations, an implacable tyrant ever bent on widening constantly the abyss of inequality between men, impoverishing the poor to make the rich more wealthy, sowing poverty, exhaustion, hunger, envy, rage, and upheaval in its wake, unceasingly filling convict settlements and prisons, hospices and tombs, a scourge more deadly in its constant and eternal action than cholera and the plague : CAPITAL, to give it at last as we must its proper name! 1535
Quite clearly men are not ready to get on well with one another, for this very entity, Capital, that is painted by some in such odious colors, is held up by others, including myself, as being the sustenance of the poor, the universal agent of equality, the stimulus of progress, and the liberator of the classes that labor and suffer.
Who is wrong and who is right? This is not a question merely of curiosity, for in the end, if capital is a destructive scourge, we ought to side with the serried ranks of those who combat it so arduously. If, on the other hand, it is a benefactor of the human race, this senseless war is strange in that the assailants inflict on themselves all the blows that they aim at it.
What is capital, then? What is its origin? What is its nature? What is its purpose? What are the elements that compose it? And what are its effects?
Some people say: "It is the land , this source of all wealth, which has been taken over by just a few." Others say: "It is money , this vile metal, the object of such filthy greed that has drenched the world in blood from the dawn of mankind."
Let us witness the birth and initial accumulation of capital; in this way, we will be able to form an accurate idea of it.
When Robinson Crusoe, the peace-loving hero so constantly loved by every generation of children, found himself washed ashore by a storm on to a desert island, the most pressing need of our precarious nature forced him to pursue the prey that would save him from death each day. He would have liked to build himself a hut, fence a vegetable patch, mend his clothes, or make himself some weapons, but he realized that, in order to be able to devote time to these tasks, he needed raw materials, tools, and above all, provisions, for our needs are structured in such a way that we cannot work to satisfy some without having accumulated enough to satisfy the others. Even if he lived for an eternity, Crusoe would never have been able to undertake the construction of a hut or the manufacture of a tool without having previously established a stock of game or fish.
This is why he often said to himself: "I am the greatest landowner in the world and the most destitute of men. Land does not constitute capital for me. Even if I had saved a sack of louis [gold coins] from the shipwreck, 1536 I would be no further advanced, since money does not constitute capital for me. My sole and obligatory task is to hunt. The only thing that would enable me to move on to other occupations would be each day to kill a little more game than I need for the day and thus to amass some provisions . While living on these provisions, I would be able to manufacture weapons that would make my hunting more productive, thus enabling me to increase my stock of provisions, freeing my time for more lengthy tasks. I am perfectly aware that the main constituent of capital is provisions and the second, tools .
Materials, tools, and provisions , these constitute the capital of a man on his own; three things without which he is tied to the pursuit of basic subsistence, three things without which there can be no subsequent tasks for him, nor consequently any possible progress, three things that assume that it has been possible for his consumption to be less than his production and that he has been able to build up a reserve and save some of it.
And this is also the true definition of capital for people living in society. The capital of a nation is the sum of its materials, provisions, and tools.
When I speak of materials, I mean those things that are the fruit of work and saving. If this condition is not met, they belong to nobody. In accordance with this condition, they naturally belong to the people who produced them and who, while they might have consumed them, have refrained from doing so.
To do anything at all in this world, you need a certain amount of one or two of these things, or all three. How would we be able to build, construct, plough, weave, spin, forge, read, or study if we have not acquired materials, tools, and in any case a few provisions, through hard work and saving?
When, while he is working, a man consumes the capital he himself has built up, he can be considered as encompassing all the qualities of a producer, consumer, lender, borrower, debtor, creditor, capitalist, or worker, and since all aspects of economic activity are fully realised in a single individual, the mechanism is extremely simple to understand, as the example of Robinson Crusoe demonstrates.
However, if this man uses the material, tools, and provisions produced and saved by someone else, the phenomenon becomes more complicated. He obtains them only as a result of a transaction, and this transaction always requires a reward for the lender. Thus, for example, does the man who borrows for a year the three things without which he could do nothing and would die of hunger, owe anything other than the straightforward and full return of the things he has borrowed? I consider the affirmative to be incontestable, and this has been true for all men from the dawn of time up to Proudhon. Indeed, if Robinson forgoes part of his food today, if he puts aside some of his game in order to devote himself to a more profitable line of work than hunting, and if Friday borrows this game from him (RC), it is clear that he (Friday) will not be able to obtain it (from RC) with a simple offer of mere restitution unless Robinson, as part of their mutual exchange of services, didn't wish to inflict some harm upon himself. The basis for the transaction will be as follows:
Robinson Crusoe will make a loan if he calculates that an additional day spent hunting, plus the agreed upon payment, is worth more to him than other work he was planning to do.
Friday will take out a loan if he calculates that the work that this loan will enable him to do, once the agreed upon payment has been deducted, will be worth more to him than the work which he would have done without this loan.
In this way, it can be stated that the principle of remuneration is inherent in capital. Since it is advantageous to the person who has accumulated it, this person cannot fairly be expected to hand it over without any compensation.
This compensation is given a variety of names, depending on the nature of the object being lent. If it is a house, it is called a rent , if it is a piece of land, land rent , etc.
In complex societies, it is rare for a lender to have exactly the thing a borrower needs. For this reason, the lender converts his capital (materials, tools, and provisions) into cash and lends this money to the borrower, who is then able to procure for himself the type of materials, tools, and provisions he needs. The payment for capital lent in this form is known as interest .
Since the majority of loans require, for convenience, this prior double conversion of capital into money and money into capital, people have ended up by confusing capital with money. This is one of the most disastrous errors in political economy.
Money is just one way of facilitating the passage of things, physical objects , from one hand to another. Therefore simple notes and simple transfers from one account to another are often enough. How much of an illusion, then, are people under when they think they are increasing materials, tools, and provisions in the country by increasing the amount of money (argent) and notes (billets)! 1537
Naturally, we all come into the world with no capital, which is something we are too prone to forget. Some people receive a great deal from their father, others just a little, and yet others none at all.
This latter category would be like Robinson Crusoe on his island if nobody before them and around them had worked and saved .
They are thus compelled to borrow, which as we have seen, means that they work on materials with tools while living on provisions that other people have produced and saved, and by paying a price for this.
This having been said, what interest have they in doing this? Their interest is that the price should be as little as possible, that is to say, that the proportion of the production to be handed over in return for the use of the capital is held within limits that are increasingly narrow. The more restricted this share that the capitalist takes from the worker is, the more the worker will be able to save in his turn and to accumulate capital. 1538
Yes, the worker should know and be convinced that his interest, his dominant and fundamental interest, lies in the abundance of capital around him and in there being a proliferation of materials, tools, and provisions , for these things are also in competition with each other. The more there are of them in the country, the less payment is asked for them from those to whom they are lent. Workers have an interest in being able to put their labor up for auction or leaving the employ of one capitalist for another who is more agreeable to them.
When capital is abundant, earnings rise: that is as inevitable as a tray of a set of scales falling when weight is put into it.
Workers, do not let yourselves be imposed upon. Nothing is finer or more pleasant than fraternity . 1539 It may heal a great many small pains and put balm on a great many wounds, but what it cannot do is raise the general rate of pay. No, it cannot do this, because neither words, sentiments, nor wishes can ensure that a given quantity of tools and materials can yield more output, or that a given quantity of provisions can provide a greater share to each person.
You have been told that capital attracts the majority of profit to itself. This is true when it is scarce, not when it is abundant.
You have been told that capital competes with labor. This is more than an error, it is a ridiculous absurdity. The abundance of tools and materials cannot damage production any more than an abundance of provisions exacerbates need.
Workers compete with each other; work competes with itself.
Capitalists compete with each other; capital competes with itself.
That is the truth. But to say that capital competes with labor is to say that bread competes with hunger or that light obstructs one's view.
And, workers, if it were true that you had only one lifeline, the indefinite increase in capital and the constant accumulation of materials, tools, and provisions , what should you want?
You should want society to be in the most favorable condition possible for this increase and accumulation of capital to occur.
What are these conditions?
The first and foremost of these is security . If people are not certain of enjoying the fruit of their labor, they will neither work nor accumulate anything. Under a regime of uncertainty and fear, old capital will be hidden, spent, or abandoned and new capital will not be created. The mass of provisions will be frittered away and each person's share will decrease, starting with yours. You should therefore demand security from the government and help establish it.
The second is freedom . When people are no longer able to work freely, they work less; the share of saving is less, capital does not increase in proportion to the number of hands, earnings decrease, and poverty decimates you. In these circumstances, charity itself is a useless remedy, if not for a few individuals, at least for the masses, for although charity has huge merits, unlike production, it cannot increase the amount of bread available.
The third is economy . When a nation's entire annual savings are eroded through the folly of its government or the ostentatious living of individual citizens, capital cannot increase.
People of France, do we have to put this into words? Our beloved country shines in the view of other nations because of its eminent qualities, but the three conditions that are essential for the establishment of capital, security, freedom, and economy, are not to be found in our midst. This is the reason, and the sole reason, for our impoverishment.
1522 See the glossary entries on " La République française" and " Jacques Bonhomme (journal)."
1523 Gustave de Molinari, Les Soirées de la rue Saint-Lazare; entretiens sur les lois économiques et défense de la propriété (Paris: Guillaumin, 1849).
1524 Antoine-Elisée Cherbuliez, Le potage à la tortue: entretiens populaires sur les questions sociales (Turtle Soup: Popular Conversations about Social Questions) (Paris: Joel Cherbuliez, Guillaumin, 1849).
1525 See the glossary entries on "Fonteyraud" and "The Cholera Outbreak of 1849."
1526 Molinari called them "a herd of communists." See his "Obituary of Joseph Garnier," JDE, Sér. 4, T. 16, No. 46, October 1881, pp. 5-13. Molinari tells a similar story in his obituary of Coquelin with the added detail that the economists chose not to fight back and so let the communists win by not throwing a single punch to defend themselves: Molinari, "[Nécr.] Charles Coquelin," JDE, N(os) 137 et 138. Septembre et Octobre 1852, pp. 167-76. See p. 172.
1527 Fonteyraud (and Wolowski) "Principes d'économie politique" in Instruction pour le People: Cents traités sur les connaissance les plus indispensables; ouvrage entièrement neuf, avec des gravures intercalées dans le text. Tome second. Traités 51 à 100 . (Paris: Paulin et Lechevalier, 1850). Louis Wolowski and Alcide Fonteyraud, No. 92, "Principes d'économie politique," 2913-3976.
1528 The Almanac Républicain was published by Laurent Pagnerre (1805-1854) with the aim of "gather(ing) together all the intelligent elite, who wanted to consolidate the Republic through the education of the People". It published articles by many famous figures such as Victor Cousin and Lamartine.
1529 See the glossary entry on Pagnerre."
1530 See the glossary entries on "Louis Blanc" and "The National Workshops."
1531 See the glossary entry on "Proudhon."
1532 See "Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv-lxvii.
1533 Murray N. Rothbard, Man, Economy and State: A Treatise on Economic Principles, with Power and Market: Government and the Economy. Second Edition. Scholar's Edition (Auburn, Alabama: Ludwig von Mises Institute, 2009); and "6. A Crusoe Social Philosophy," in The Ethics of Liberty (Atlantic Highlands, N.J.: Humanities Press, 1982).
1534 The dangers of cholera at this time were significant. One of Bastiat's close colleagues Alcide Fonteyraud (1822-1849) died in the cholera epidemic which swept Paris in August 1849 which killed about 14,000 people. See the glossary entries on "Fonteyraud" and "The Cholera Outbreak of 1849."
1535 In ES1 22 "Metaphors" (late 1845) (CW3, pp. 100-03) Bastiat objected to supporters of protectionism and subsidies using value-laden military metaphors, such as "invasion" and "paying tribute," and other metaphors drawn from natural disasters such as "floods," to describe imports from other countries. Here he objects to critics of "capital" comparing it to infectious diseases like cholera and the plague.
1536 The "Louis", short for "Louis d'or" is French gold coin which was first issued by King Louis XIII in the 17th century. It featured the head of Louis on one side of the coin, hence the name. It was replaced by the franc during the French Revolution but during the Restoration of the monarchy under Louis XVIII it was revived as a 20 franc gold coin.
1537 On the topic of money see Bastiat's essays "Nominal Prices" ( JDE , October 1845), in CW3, ES1 11, pp. 6164; and "Damned Money" ( JDE , 15 April 1849, above, pp. 000.
1538 Here Bastiat uses the terms "capitaliste" and "prolétaire" which is a little unusual as they have socialist connotations. Words like "ouvrier" or "travailleur" were much more commonly used by him. The fact that he is writing a popular piece directed at workers may explain his choice of words.
1539 The four slogans used by socialists such as Louis Blanc and Charles Fourier during the Revolution to win workers over to their cause were "fraternity" (the brotherhood of all workers), "solidarity," "association" (cooperative living and working arrangements), and "organisation" (the organization of workers to run their own factories and businesses without wages being paid by a capitalist owner). In numerous essays written during the Second Republic Bastiat opposed the socialist idea of state-enforced "Fraternité, Solidarité, Organisation, Association" which he termed "les noms séducteurs" (seductive names) (in "The Law," in CW2, p. 121). He supported the ideals of the Republic (liberty, fraternity, and equality) but in a very different sense. As he saw it there was a vast difference between "la fraternité spontanée" (spontaneous or voluntary fraternity) and "la fraternité légale" (state imposed or enforced fraternity). See also, "Individualism and Fraternity" (June 1848) CW2, pp. 82-92; "Justice and Fraternity" ( JDE , 15 June 1848) in CW2, pp. 60-81.
T.290 "When extremes meet" (June 1849)↩
SourceT.290 (1849.06.??) "When extremes meet" (Les Extrêmes se touchent) (June 1849). In Ronce, Appendix VII, pp. 303-6. [CW4]
Editor's IntroductionAn edited version of this piece appeared in Hortense Cheuvreux's 1540 collection of Bastiat's letters to her which she published in 1877 1541 and which was published as Letter 139 in CW1, pp. 203-205. Two paragraph-long sections towards the end were cut in the Cheuvreux book which were retained in Ronce's Appendix. They are curious as they reveal something about the taste of what was acceptable to put in print at the time.
The first passage cut is a reflection on why French men want to look fierce by wearing facial hair and frowning in the portraits they have painted of themselves. Concerning fierce looking facial hair one immediately thinks of how President Louis Napoléon chose to cut his moustache and goatee beard and how much Bastiat opposed everything the President stood for. Bastiat's remarks in this passage seem quite innocent, although rather critical of the fashion current in Paris at the time, and the critical comments of an outsider like Bastiat from the provinces (Gascony) might not have been welcome by some:
If you stop while walking along the boulevard at a print shop, take a look at the portraits. Those which have been posed are frowning and pouting. It must be that a kind look and a smile, a benevolent face, are very unpopular in France and that everyone wants to look like an enemy of the human race! It is the widespread nature of this taste which bothers me. It is a sad symptom. It indicates that there are bad thoughts in the hearts of the (French) people, a return to the ideas of barbarism. Shouldn't it be up to the women to fight this idiosyncrasy? 1542
The second passage which was cut is more understandable as it consists of Bastiat's reflections on his taste in women, the only one of its kind in his work. Apparently he preferred women who looked like they were from the Italian Renaissance. It may not have been thought proper to include this in Madame Cheuvreux's collection of his letters as it may appear to be quite suggestive. Since Madame Cheuvreux had died in 1893 Ronce may have felt free to publish the full piece in his book which was published in 1905. The offending passage reads:
I have examined carefully four types of women and my opinion is set.
The Greek type is superior to all the others for her symmetry and perfection. This is physical perfection.
The southern type which is reproduced in the paintings of the virgins by Murillo. These are the ones which … (Editor: the sentence is left unfinished).
The sensual or fleshy type which shows the good effects of health.
Finally, the type painted by Raphael, who aspires to paint purity and feelings.
Of these four types the one which I prefer is the last one, and the one which is the least appealing to me is the one which is the furthest removed from this.
Bastiat got married in 1831 to Marie Clotilde Hiart but never spoke of her in his correspondence and we known nothing about her. She did not appear to have accompanied him to Paris but stayed out of sight in Mugron perhaps. She died in February 1850 and again there is no mention of this fact in his correspondence. It is possible that there might have been some kind of flirtatious relationship between Hortense and Frédéric but this remains speculation.
The bulk of this piece are his musings about travelling in Belgium by the recently introduced technological innovation of train travel and being a tourist seeing the sights. His comments about men's fashion are amusing (he disliked the custom of French men wearing facial hair - he himself was clean shaven). It should be read in conjunction with the two other letters he wrote to Madame Cheuvreux in June 1849 while on this trip. 1543 Among other things he tells us that he crossed the border into Belgium without a passport and wondered whether or not he would be treated like the exiled Proudhon, with whom he would have a long discussion later in 1849 on Free Credit (see below, pp. 000); that he first crossed a national frontier when he was 18 when he went to Spain on horseback and encountered many armed men who were engaged in the civil war which was ranging there; he was impressed by the prosperity he could see in Belgium which was rapidly industrialising in the 1840s and wondered about the "form of poetry" which would emerge from this new industrial world and how it would compare to the older "biblical, warlike, or feudal" forms of poetry; and his fretting about the forthcoming Peace Conference which would be held in Paris in July and at which he would give a major speech (see below, pp. 000).
Concerning the latter, he worried that the large contingent of peace advocates from England and America would see how weak the peace movement was in France:
What a disappointment they will have when they see that the cause of peace in France is represented by Guillaumin, Garnier, and Bastiat. In England, it arouses entire populations, men and women, priests and the laity; does my country always have to be left behind? 1544
He was also conscious of his responsibility to look after Richard Cobden ("one of the most remarkable men of our time") while he was in Paris. Given the hostility to the causes of free trade and peace which existed in France, Cobden had only agreed to visit Paris on condition that Bastiat be there and participate. Given the state of his health and his rapidly failing voice Bastiat was understandably anxious.
Text"When extremes meet." This is what one experiences (when travelling) on a train. The extreme multiplicity of impressions (one experiences) wipe each other out. One sees too many things in order to see some (particular) thing.
What a strange way to travel! One doesn't look (out) and one doesn't speak. The eye and the ear go to sleep. One is wrapped up with one's own thoughts in solitude. The present which should be everything is nothing. Yet at the same time, with what tenderness the heart returns to the past! With what eagerness does it throw itself towards the future. "A week ago," "in a week's time." Here are some well chosen words to meditate upon when for the first time the towns of Vilvorde 1545 and Malines 1546 and the province of Brabant flee past under a gaze which is not looking. 1547
This morning at 8 o'clock I was in Brussels; this evening at 5 o'clock I was again in Brussels. In the interval I had visited Anvers (Antwerp), its churches, its museum, its port, and its fortifications. Is that then what it means to travel?
What I call "travelling" is to get inside the society which one is visiting, to get to know the state of its mind, its tastes, customs, activities, pleasures, the relations between its classes, its moral, intellectual, and artistic level which these classes have reached, (or) what one might expect of the advancement of (its people). I would question its statesmen, businessmen, farmers, workers, its children and especially the women, since it is the women who get the coming generation ready and direct its moral development. Instead of (doing) that I look at a hundred paintings, fifty church confessionals, twenty bell towers, and I don't know how many statues made of stone, marble, and wood. And one tells me "that is Belgium."
In truth, there is one (important) resource for the traveller, namely the hotel dining room. Today it brings together around the table some sixty diners … not one of whom is Belgian. I notice that there are five Frenchmen and five long beards belonging to Frenchmen, or rather there are five Frenchmen who belong to five beards, since one shouldn't confuse the principal with the incidental. Immediately, I ask myself this question: why do the Belgians, the English, the Dutch, and the Germans shave and why don't the French? In every country men like to let one believe that they possess the qualities which are most highly regarded. If fashion runs to blond wigs, I say to myself that these people are effeminate. If in personal portraits I notice an exaggerated forehead I think to myself that these people have taken up a cult which worships intelligence. When savages tattoo and disfigure themselves to make them look frightening I come to the conclusion that they put brute force above everything else.
This is why today I am feeling such terrible shame at seeing the efforts of my compatriots to give themselves a fierce look. Why all these beards and moustaches? (To invoke) fear (in others)! Is that the contribution which my country is making to civilisation?
Unfortunately it isn't only my fellow travellers who contribute to this ridiculous peculiarity. 1548 If you stop while walking along the boulevard at a print shop, take a look at the portraits. Those which have been posed are frowning and pouting. It must be that a kind look and a smile, a benevolent face, are very unpopular in France and that everyone wants to look like an enemy of the human race! It is the widespread nature of this taste which bothers me. It is a sad symptom. It indicates that there are bad thoughts in the hearts of the (French) people, a return to the ideas of barbarism. Shouldn't it be up to the women to fight this idiosyncrasy?
Is that all I have to report about Anvers? It was well worth the trouble of travelling all those leagues without end or number.
I saw some Rubens 1549 in their own country. You quite rightly think that I looked for living examples of the models with the ample curves which the master of the Flemish School so kindly reproduced for us. I did not find them and truly I believe than the Brabant race are inferior to the Norman race. I was told to go to Brugge. I would go to Amsterdam if that was my preferred type. This red flesh which seems to me to be aroused by their own fullness is not my ideal. Sentiment and grace, now there is a woman, or at least a woman worthy of a paintbrush. 1550 I have examined carefully four types of women and my opinion is set.
The Greek type is superior to all the others for her symmetry and perfection. This is physical perfection.
The southern type which is reproduced in the paintings of the virgins by Murillo. 1551 These are the ones which … 1552
The sensual or fleshy type which shows the good effects of health.
Finally, the type painted by Raphael, 1553 who aspires to paint purity and feelings.
Of these four types the one which I prefer is the last one, and the one which is the least appealing to me is the one which is the furthest removed from this.
Rubens is perhaps an inimitable painter from the point of view of execution. He interprets admirably what he he wants to interpret. But what he interprets is not a woman in her ideal form.
1540 Hortense Cheuvreux (née Girard) (1808-1893) was married to Jean Pierre-Casimir Cheuvreux (1797-1881), who was a wealthy textile merchant and was active in liberal circles in Paris, helping to fund their activities. Hortense ran an important salon from their Paris home and became a close friend of Bastiat's. In 1877 she published Bastiat's letters to her family in Lettres d'un habitant des Landes which are quite personal and show a very different, more personal side to Bastiat.
1541 Lettres d'un habitant des Landes , p. 27.
1542 Letter 139 to Mme Cheuvreux (Antwerp, June 1849), CW1, p. 205.
1543 Letter 137. Bruxelles, hôtel de Bellevue, June 1849. To Madame Cheuvreux, CW1, pp. 200-2); Letter 138. Bruxelles, June 1849. To Madame Cheuvreux, CW1, pp. 202-3.
1544 CW1, p. 202.
1545 Vilvorde was a town of about 7,000 people (1846) in the Flemish speaking part of Belgium north of Brussels. It is in the province of Brabant.
1546 Malines was a town of about 37,000 people (1846) in the Flemish speaking part of Belgium in the province of Anvers. One of the first public railway lines was built in 1835 connecting Malines and Brussels.
1547 Anvers (Antwerpen) in the Flemish speaking part of Belgium was the capital of the province of Anvers and was a major port city on the Escaut river which flowed into the North Sea. Its population in 1846 was about 89,000 people.
1548 The rest of this paragraph was cut in the version which appeared Cheuvreux's Lettres d'un habitant des Landes , which was reproduced as Letter 139 to Mme Cheuvreux (Antwerp, June 1849), CW1, p. 205.
1549 Peter Paul Rubens (1577-1640) was a Dutch painter of the Flemish Baroque school. He had a large studio in Anvers/Antwerp.
1550 The rest of the letter was cut in the version which appeared Cheuvreux's Lettres d'un habitant des Landes , which was reproduced as Letter 139 to Mme Cheuvreux (Antwerp, June 1849), CW1, p. 205.
1551 Bartolomé Esteban Murillo (1617-1682) was a Spanish Baroque painter who was famous for his religious paintings.
1552 Ronce says in a footnote that Bastiat left the sentence unfinished and that it was up to the reader to complete it for themselves.
1553 Raffaello Sanzio da Urbino (Raphael) (1483-1520) was an Italian painter and architect during the Italian Renaissance.
T.240 and T. 283 Speech on "Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement." (22 Aug. 1849)↩
SourceT.240 (English) and T.283 (French) (1849.08.22) A speech on "Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement." A speech at the Friends of Peace Conference in Paris, 22 Aug., 1849. A short version (1 1/2 pages, 1,300 words) is in French in Joseph Garnier, Congrès des amis de la paix universelle réuni à Paris en 1849 , pp. 25-26; a longer longer version in English (3 1/2 pages, 2,600 words) in Report of the Proceedings of the Second General Peace Congress, held in Paris, on the 22nd, 23rd and 24th of August, 1849 (translator unknown), pp. 49-52 . It is untitled in both versions so we have given it one. [DMH] [CW3] [CW4]
Joseph Garnier, Congrès des amis de la paix universelle réuni à Paris en 1849 : compte-rendu, séances des 22, 23, 24 Aout; - Résolutions adoptées; discours de Mm. Victor Hugo, Visschers, Rév. John Burnett; Rév. Asa Mahan, de l'Ohio; Henri Vincent, de Londres; Ath. Coquerel; Suringar, d'Amsterdam; Francisque Bouvet, Émile de Girardin; Ewart, membre du Parlement; Frédéric Bastiat; Richard Cobden, Elihu Burritt, Deguerry; Amasa Walker, de Massachussets; Ch. Hindley, membre du Parlement, etc., etc.; Compte-rendu d'une visite au Président de la République, de trois meetings en Angleterre; statistique des membres du congrès, etc.; précédé d'une Note historique sur le mouvement en faveur de la paix, par M. Joseph Garnier . (Paris: Guillaumin, 1850). This is a shorter version of Bastiat's speech than in the English version, pp. 25-26.
Report of the Proceedings of the Second General Peace Congress, held in Paris, on the 22nd, 23rd and 24th of August, 1849. Compiled from Authentic Documents, under the Superintendence of the Peace Congress Committee. (London: Charles Gilpin, 5, Bishopsgate Street Without, 1849). This is a longer version of Bastiat's speech than in the French version, pp. 49-52.
Editor's IntroductionFor details about the International Friends of Peace Congresses see the Editor's Introduction to "Comments at a Meeting of the Political Economy Society on the Peace Congress and State support for an Experimental Socialist Community" (10 May 1849) above, pp. 000. See also the glossary entry on "Peace Congress."
The economist Joseph Garnier was on the organising committee for the conference and was its Secretary and so edited the French language version of the Conference Proceedings. There was another English language version of the Proceedings which for some reason had a much longer version of Bastiat's speech, so it is that version which we include below. It was done by an unnamed translator. In his introduction Garnier tells us there were about 600 official delegates from North America, England, France, Belgium and other European countries. The largest delegation came from England with over 300 delegates, followed by France with 230. 1554 The meeting was held in Saint-Cécile Hall which had room for the over 2,000 other guests who attended.
The conference was opened by the President of the Congress, the French poet and dramatist Victor Hugo who gave an impassioned speech denouncing war and its destructiveness, as well as condemning the continued existence of an armed peace which had existed since the fall of Napoléon. One section which caught the ear of Bastiat was this one where Hugo talked about the opportunity costs of war and military spending:
You see, gentlemen, in what a state of blindness war has placed nations and rulers. If the 128,000,000 francs given for the last thirty-two years by Europe to the war which was not waged had been given to the peace which existed, we positively declare that nothing of what is now passing in Europe would have occurred. The continent in place of being a battlefield would have become an universal workshop, and in place of this sad and terrible spectacle of Piedmont prostrated, of the Eternal City given up to the miserable oscillations of human policy, of Venice and noble Hungary struggling heroically, France uneasy, impoverished, and gloomy; misery, mourning, civil war, gloom in the future—in place, I say, of so sad a spectacle, we should have before our eyes, hope, joy, benevolence, the efforts of all towards the common good, and we should everywhere behold the majestic ray of universal concord issue forth from civilization. And this fact is worthy of meditation—that revolutions have been owing to those very precautions against war. All has been done—all this expenditure has been incurred, against an imaginary danger. Misery, which was the only real danger, has by these very means been augmented. We have been fortifying ourselves against a chimerical peril; our eyes have been turned to all sides except to the one where the black spot was visible. We have been looking out for wars when there were none, and we have not seen the revolutions that were coming on. 1555
Bastiat would take up this idea of war being a cause of revolution in his speech which he delivered on the second day. He was immediately followed by Richard Cobden, so in a sense Bastiat was the warm up act for the main attraction. Cobden had made it clear to the organisers of the Congress that he would not attend unless Bastiat was also present. Cobden felt uneasy in France given the general hostility towards the English free trade movement and its numerous anti-war supporters, which some cynical French people thought was a stalking horse for British imperialism. Hence his felt need for some moral support from the leader of the French trade movement. He also needed help with his French as he planned to give the speech in that language and Bastiat proved to be a willing coach and tutor for him. As Cobden wrote in his diary:
My first speech, although there is really little in it, produced a famous effect in the audience and has been almost universally lauded in the papers. It ought to have been well received, for it cost me a good deal of time with the aid of Bastiat to write and prepare to read it . My good friend Bastiat has been two mornings with me in my room, translating and teaching, before eight o'clock. 1556
The motion being discussed that day was the second Resolution of the Congress:
It is of the highest importance to call the immediate attention of governments to the necessity of a general and simultaneous disarmament, not only as a means of reducing the vast expenditure devoted to the support of standing armies and navies, but also of removing a permanent cause of disquietude and irritation from among the nations. 1557
Given the large number of delegates who were religious, such as the English and American Quakers and other anti-war protestants, it was Bastiat's task to give the economic side to the anti-war position which had been mostly moral and religious up until that point. In this he had the support of Hugo and Cobden who also stressed economic as well as moral reasons to oppose war and military spending. In his speech Bastiat made a link between external and internal peace, with the former being guaranteed by general and mutual disarmament of the major powers, and the latter made possible by removing what he thought was the major cause of internal conflict and revolution, namely the poverty brought about by high taxation. The connecting threads between the two was that high military spending required high taxes, which were unfairly borne by the poor who were both impoverished by indirect taxes and resentful towards the unequal and unfair manner in which they were levied, and this in turn inclined the poor to rise up in revolt or open revolution as many parts of Europe had witnessed in 1848 and 1849. As he concisely put it:
Large armaments necessarily entail heavy taxes : heavy taxes force governments to have recourse to indirect taxation. Indirect taxation cannot possibly be proportionate, and the want of proportion in taxation is a crying injustice inflicted upon the poor to the advantage of the rich. This question, then, alone remains to be considered : Are not injustice and misery, combined together, an always imminent cause of revolutions? (see below)
Bastiat's solution to this followed naturally from what he said several times before in writings and speeches on tax matters 1558 and which he would repeat in a major speech in the Chamber in December 1849 on reducing the tax on alcohol. 1559 The tax burden on the poor had to be drastically reduced and made more equal. Bastiat is very hostile towards indirect taxes which he describes as a kind of deliberate trickery or deception on the part of governments to hide the true burden of taxation which the poor have to bear and these had to be cut immediately. In a letter to Cobden written a year later when Cobden was about to go to the next Peace Congress in Frankfurt, which Bastiat could not attend because of his poor health, he urged Cobden to slay "this monster of war":
Try to deal a mighty blow to this monster of war, an ogre that is almost as voracious when digesting as it is when eating, for I truly believe that arms cause almost as much harm to nations as war itself. What is more, they hinder good. For my part, I constantly return to what seems to me to be as clear as daylight: as long as disarmament prevents France from restructuring her finances, reforming her taxes, and satisfying the just hopes of the workers, she will continue to be a nation in convulsion . . . and God alone knows what the consequences will be. 1560
This could be achieved he thought by cutting military spending which would then make it possible to abolish most if not all indirect taxes, and to replace these with a low and equal single tax (an income tax) on everybody. Government would not take these measure, he thought, unless they could be convinced of the possibility of mutual and "simultaneous disarmament" of all the powers in Europe. It was to be the task of the Congress delegates to go back to their respective countries and lobby their governments to do this, using a combination of moral, political, as well as economic arguments.
Bastiat must have known what a difficult if not impossible task this would prove to be, especially given the rise to power of another Napoléon as President of France in December 1848. We can see in several letters he wrote to Cobden in which he practically begs him to lobby Parliament harder to begin cutting the size of its military which would encourage France to do the same. 1561 There is a hint in his correspondence 1562 that following the Congress Bastiat was sent on an unofficial and thus secret mission by a pro-peace faction within the French government in October and November to sound out Cobden and some his allies in Parliament about the possibility of beginning some kind of disarmament talks to get the ball rolling. It is possible that Alexis de Tocqueville might have sent Bastiat on this mission to London. He was the Minister for Foreign Affairs in Odilon Barrot's second government (2 June to 31 October 1849) and had hosted a "grand soirée" at the Ministry building during the Peace Congress and spoke to many of the "leading orators of the Congress." 1563 We know the trip took place but nothing came of it. The fact that Odilon Barrot's government, along with Tocqueville, was dismissed by Louis Napoléon who replaced it with one formed by Alphonse Henri d'Hautpoul with many of his close friends and allies, meant that any surreptitious pro-peace activity by members of the Chamber would immediately have come to an end.
Bastiat concludes his speech by reiterating the important set of pro-peace arguments that the economists could provide in order to bolster the traditional moral and religious case agains war and military spending:
Amidst this illustrious galaxy (Cobden the journalist, and the clergymen), permit me to claim a humble place for my brethren, the political economists ; for, gentlemen, I sincerely believe that no science will bring a more valorous contingent to serve under the standard of peace than political economy. Religion and morality do not endeavour to discover whether the interests of men are antagonistic or harmonious. They say to them : Live in peace, no matter whether it be profitable or hurtful to you, for it is your duty to do so. Political economy steps in and adds : Live in peace, for the interests of men are harmonious, and the apparent antagonism which leads them to take up arms is only a gross error. Doubtless, it would be a noble sight to behold men realize peace at the expense of their material interests ; but for those who know the weakness of human nature, it is consoling to think that duty and interest are not here two hostile forces … 1564
There are two further things to note. We can also see here Bastiat's strong opposition to conscription which he described as a kind of "military taxation" whereby seven years out of young man's working life was taken away from him unless he was wealthy enough to buy a substitute, the going rate for which was about 2,000 francs.
The English language version of Bastiat's speech (2,600 words) is twice the length of its French language version (only 1,300 words) for some unknown reason. The section cut out is indicated below and it contains some of his most radical arguments.
Text:M. Frederic Bastiat, member of the French National Assembly, spoke as follows: 1565
Gentlemen, our excellent and learned colleague, M. Coquerel, 1566 spoke to us a little while since, of a cruel malady with which French society is afflicted, namely, scepticism. 1567 This malady is the fruit of our long dissensions, of our revolutions which have failed to bring about the desired end, of our attempts without results, and of that torrent of visionary projects which has recently overflowed our policy. This strange evil will, I hope, be only temporary: at all events, I know of no more efficacious remedy for it, than the extraordinary spectacle which I have now before my eyes, for if I consider the number and the importance of the men who now do me the honour of listening to me, if I consider that many of them do not act in their individual capacity, but in the name of large constituencies, who have delegated them to this Congress, I have no hesitation in saying that the cause of peace unites to-day in this assembly, more religious, intellectual, and moral force, more positive power, than could be brought together for any other imaginable cause, in any other part of the world. Yes, this is a grand and magnificent spectacle, and I do not think that the sun has often shone on one equal to it in interest and importance. Here are men who have traversed the wide Atlantic: others have left vast undertakings in England, and others have come from the disturbed land of Germany, or from the peaceful soil of Belgium or of Holland. Paris is the place of their rendezvous. And what have they come to do? Are they drawn hither by cupidity, by vanity, or by curiosity, those three motives to which are customarily attributed all the actions of the sons of Adam? No; they come, led on by the generous hope of being able to do some good to humanity, without having lost sight of the difficulties of their task, and knowing well that they are working less for themselves, than for the benefit of future generations. Thrice welcome then, ye men of faith, to the land of France. Faith is as contagious as scepticism. France will not fail you. She also will yield her tribute to your generous enterprise. 1568
At the present stage of the discussion, I shall only trespass on your time to make a few observations on the subject of disarmament. They have been suggested to me by a passage in the speech of our eloquent President, who said yesterday, that the cause of external peace was also that of internal order. He very reasonably based this assertion on the fact that a powerful military state is forced to exact heavy taxes, 1569 which engender misery, which in its turn engenders the spirit of turbulence and of revolution. I also wish to speak on the subject of taxes, and I shall consider them with regard to their distribution. That the maintenance of large military and naval forces requires heavy taxes, is a self-evident fact. But I make this additional remark: these heavy taxes, notwithstanding the best intentions on the part of the legislator, are necessarily most unfairly distributed ; whence it follows that great armaments present two causes of revolution—misery in the first place, and secondly, the deep feeling that this misery is the result of injustice. The first species of military taxation that I meet with is, that which is called, according to circumstances, conscription or recruitment. 1570 The young man who belongs to a wealthy family, escapes by the payment of two or three thousand francs; the son of an artizan or a labourer, is forced to throw away the seven best years of his life. Can we imagine a more dreadful inequality ? Do we not know that it caused the people to revolt even under the empire, and do we imagine that it can long survive the revolution of February ?
With regard to taxes, there is one principle universally admitted in France, namely, that they ought to be proportional to the resources and capabilities of the citizens. This principle was not only proclaimed by our last constitution, but will be found in the charter of 1830, as well as in that of 1814. Now, after having given my almost undivided attention to these matters, 1571 I affirm that in order that a tax may be proportional, it must be very moderate, and if the state is under the necessity of taking a very large part of the revenues of its citizens, it can only be done by means of an indirect contribution, which is utterly at variance with proportionality, that is to say, with justice. And this is a grave matter, gentlemen. The correctness of my statement may be doubted, but if it be correct, we cannot shut our eyes to the consequences which it entails, without being guilty of the greatest folly. I only know of one country in the world where all the public expenses, with very slight exceptions, are covered by a direct and proportional taxation. I refer to the State of Massachusetts. 1572 But there also, precisely, because the taxation is direct, and every body knows what he has to pay, the public expenditure is as limited as possible. The citizens prefer acting by themselves in a multitude of cases, in which elsewhere the intervention of the state would be required. If the government of France would be contented with asking of us five, six, or even ten per cent of our income, we should consider the tax a direct and proportional one. 1573 In such a case, the tax might be levied according to the declaration of the tax-payers, care being taken that these declarations were correct, although, even if some of them were false, no very serious consequences would ensue. But suppose that the treasury had need of 1,500 or 1,800 millions of money. 1574 Does it come directly to us and ask us for a quarter, a third, or a half of our incomes? No: that would be impracticable; and consequently, to arrive at the desired end, it has recourse to a trick, and gets our money from us without our perceiving it, by subjecting us to an indirect tax laid on food. And this is why the Minister of Finance, when he proposed to renew the tax on drinks, 1575 said that this tax had one great recommendation, that it was so entirely mixed up with the price of the article, that the tax-payer, as it were, paid without knowing it. 1576 This certainly is a recommendation of taxes on articles of consumption: but they have this bad characteristic, they are unequal and unjust, and are levied just in inverse proportion to the capabilities of the tax-payer. For, whoever has studied these matters, even very superficially, knows well that these taxes are productive and valuable only when laid upon articles of universal consumption, such as salt, wine, tobacco, sugar and such like ; and when we speak of universal consumption, we necessarily speak of those things on which the labouring classes spend the whole of their small incomes. From this it follows, that these classes do not make a single purchase which is not increased to a great extent by taxation, while such is not the case with the rich.
Gentlemen, I venture to call your close attention to these facts. Large armaments necessarily entail heavy taxes : heavy taxes force governments to have recourse to indirect taxation. Indirect taxation cannot possibly be proportionate, and the want of proportion in taxation is a crying injustice inflicted upon the poor to the advantage of the rich. This question, then, alone remains to be considered : Are not injustice and misery, combined together, an always imminent cause of revolutions? Gentlemen, it is no use to be willfully blind. At this moment, in France, the need which is most imperious and most universally felt, is doubtless that of order, and of security. Rich and poor, labourers and proprietors, all are disposed to make great sacrifices to secure such precious benefits, even to abandon their political affections and convictions, and, as we have seen, their liberty. But, in fine, can we reasonably hope, by the aid of this sentiment, to perpetuate, to systematize, injustice in this country? Is it not certain that injustice will, sooner or later, engender disaffection? disaffection all the more dangerous because it is legitimate, because its complaints are well-founded, because it has reason on its side, because it is supported by all men of upright minds and generous hearts, and, at the same time, is cleverly managed by persons whose intentions are less pure, and who seek to make it an instrument for the execution of their ambitious designs. We talk about reconciling the peoples. Ah! let us pursue this object with all the more ardour, because at the same time we seek to reconcile the classes of society. In France because, in consequence of our ancient electoral laws, 1577 the wealthy class had the management of public business, the people think that the inequality of the taxes is the fruit of a systematic cupidity. On the contrary, it is the necessary consequence of their exaggeration. 1578 I am convinced that if the wealthy class could, by a single blow, assess the taxes in a more equitable manner, they would do so instantly. And in doing so, they would be actuated more by motives of justice than by motives of prudence. They do not do it, because they cannot, and if those who complain were the governors of the country, they would not be able to do it any more than those now in power ; for I repeat, the very nature of things has placed a radical incompatibility between the exaggeration and the equal distribution of taxes. There is, then, only one means of diverting from this country the calamities which menace it, and that is, to equalize taxation ; to equalize it, we must reduce it; to reduce it, we must diminish our military force. 1579 For this reason, amongst others, I support with all my heart the resolution in favour of a simultaneous disarmament. 1580
I have just uttered the word "disarmament." This subject occupies the thoughts and the wishes of all ; and nevertheless, by one of those inexplicable contradictions of the human heart, there are some persons, both in France and England, who, I am sure, would be sorry to see it carried into effect. What will become, they will say, of our preponderance? Shall we allow the influence which, as a great and powerful nation, we possess, to depart from us? Oh, fatal illusion! Oh, strange misconception of the meaning of a word! What! can great nations exert an influence only by means of cannon and bayonets ? Does the influence of England consist not in her industry, her commerce, her wealth, and the exercise of her free and ancient institutions ? Does it not consist, above all, in those gigantic efforts, which we have seen made there, with so much perseverance and sagacity, for obtaining the triumph of some great principle, such as the liberty of the press, the extension of the electoral franchise, Catholic emancipation, the abolition of slavery, and free-trade. 1581 And as I have alluded to this last and glorious triumph of public opinion in England, as we have amongst us many valiant champions of commercial liberty, who, adopting the motto of Caesar, "Nil actum reputans, dum quid superesset agendum," 1582 have no sooner gained one great victory than they hasten to another still greater, let me be permitted to say for how immense a moral influence England is indebted to them, less on account of the object, all glorious as it was, which they attained, than on account of the means which they employed for obtaining it, and which they thus made known to all nations. Yes! from this school the peoples may learn to ally moral force with reason ; there we ought to study the strategy of those pacific agitations which possess the double advantage of rendering every dangerous innovation impossible, and every useful reform irresistible.
By such examples as these, I venture to say, Great Britain will exercise that species of influence which brings no disasters, no hatreds, no reprisals in its train, but, on the contrary, awakens no feelings but those of admiration and of gratitude. And with regard to my own country, I am proud to say, it possesses other and purer sources of influence than that of arms. But even this last might be contested, if the question were pressed, and influence measured by results. But that which cannot be taken away from us, nor be contested for a moment, is the universality of our language, the incomparable brilliancy of our literature, the genius of our poets, of our philosophers, of our historians, of our novelists, and even of our feuilletonistes, and, last though not least, the devotedness of our patriots. France owes her true influence to that almost unbroken chain of great men which, beginning with Montaigne, Descartes, and Pascal, and passing on by Bossuet, Voltaire, Montesquieu and Rousseau, has not, thanks to heaven, come to an end in the tomb of Chateaubriand. 1583 Ah! let my country fear nothing for her influence, so long as her soil is not unable to produce that noble fruit which is called Genius, and which is ever to be seen on the side of liberty and democracy. And, at this moment, my brethren, you who were born in other lands, and who speak another language, do you not behold all the illustrious men of my country uniting with you to secure the triumph of universal peace? Are we not presided over by that great and noble poet, 1584 whose glory and privilege it has been to introduce a whole generation into the path of a renovated literature? Do we not deplore the absence of that other poet-orator, 1585 of powerful intellect and noble heart, who, I am sure, will as much regret his inability to raise his voice amongst us, as you will regret not to have heard it? Have we not borrowed from the songs of our national bard 1586 the touching device:
People (of the world), form a Holy Alliance And take each other by the hand. 1587
Do we not number in our ranks that indefatigable and courageous journalist, 1588 who did not wait for your arrival to place at the service of absolute non-intervention the immense publicity, and the immense influence which he has at his command ? And have we not amongst us, as fellow-labourers, ministers of nearly all Christian religions ? Amidst this illustrious galaxy, permit me to claim a humble place for my brethren, the political economists ; for, gentlemen, I sincerely believe that no science will bring a more valorous contingent to serve under the standard of peace than political economy. Religion and morality do not endeavour to discover whether the interests of men are antagonistic or harmonious. They say to them : Live in peace, no matter whether it be profitable or hurtful to you, for it is your duty to do so. Political economy steps in and adds : Live in peace, for the interests of men are harmonious, and the apparent antagonism which leads them to take up arms is only a gross error. 1589 Doubtless, it would be a noble sight to behold men realize peace at the expense of their material interests ; but for those who know the weakness of human nature, it is consoling to think that duty and interest are not here two hostile forces, and the heart rests with confidence upon this maxim: "Seek first after righteousness, and all things shall be added unto you." 1590
[The President of the Congress: The floor is handed over to M. Richard Cobden. The whole Assembly stands and for a considerable period makes the Hall reverberate with bravos and cheers.] 1591
1554 According to Garnier there were 21 delegates from the U.S. (including two ex-slaves), over three hundred from England, 230 from France, 23 from Belgium, and a small number of delegates from other European countries. Joseph Garnier, Congrès des amis de la paix universelle réuni à Paris en 1849, p. vi.
1555 Report of the Proceedings of the Second General Peace Congress , p. 13.
1556 John Morley, The Life of Richard Cobden (1903), p. 512.
1557 Second Session, Thursday, August 23rd, 1849, p. 33.
1558 For example, "The Single-Tax in England. The Proposal of Mr. Ewart" (LE, 27 June 1847), above, pp. 000; and "A Hoax" (JB no. 2 June 1848), above, pp. 000; "Peace and Freedom and the Republican Budget" (Feb. 1849), CW2, pp. 282-24.
1559 "Speech on the Tax on Wines and Spirits" (12 Dec. 1849) in CW2, pp. 328-47.
1560 Letter 186 to Cobden (Paris, 17 August, 1850), CW1. p. 263-64.
1561 See especially Letter 83 to Cobden (Paris, 15 Oct 1847), CW1, pp. 132-35; as well as Letter 96 to Cobden (Mugron, 5 April 1848), on Britain taking the initiative in disarming, CW1, p. 147; Letter 100 to Cobden (Paris, 27 May 1848) on France and Britain simultaneously disarming, CW1, p. 152; Letter 106 to Cobden (Paris, 7 August 1848) and Letter 107 (Paris, 18 August, 1848) on the need for England to make some move to show France it is willing to cut military spending, CW1 pp. 159-60.
1562 Bastiat says he was in England for four days and was accompanied by Horace Say. It is possible they were going to attend a Peace meeting in Bradford and see Cobden along the way. See Letter 151 to Cobden (Paris, 17 October, 1849) about a meeting on 30 October, CW1, pp. 220-21; Letter 152 to Cobden (Paris, 24 October, 1849), CW1, pp. 221-22; Letter 154 to Domenger (Paris, 13 November, 1849), CW1, pp. 222-23. George Roche also thinks this trip took place, George Charles Roche III, Frédéric Bastiat: A Man Alone (New Rochelle, New York: Arlington House, 1971), p. 120; as does Dean Russell, Frédéric Bastiat: Ideas and Influence , p. 112.
1563 English version, p. 89.
1564 Bastiat used a similar argument in ES2 2 "Two Moral Philosophies", CW3, pp. 131-38, where he talks about the failure of religion to persuade people who initiate the use of plunder to refrain from doing so, and contrasts this with the economists who attempt to persuade the victims of plunder to resist it. Especially, pp. 134 ff.
1565 In the Garnier French language version the editor adds the following comment: "The speaker is welcomed with repeated applause."
1566 There were two "Athanase Coquerels," a father and a son, both of whom were liberal Protestant preachers. Athanase-Charles Coquerel (Athanase Coquerel père) (1795-1868) was elected Deputy representing la Seine in April 1848 where he voted with the moderate republicans, and reelected in May 1849 but voted with the Party of Order especially in support of France's military intervention in Rome in April 1849. So it is unlikely he would have attended the Peace Congress in August. His son Athanase Josué Coquerel (Athanase Coquerel fils) (1820-1875), although only 29, may be the one mentioned here.
1567 Bastiat warned about growing scepticism among the French public in his speech on Electoral Reform in March 1849. See above, pp. 000.
1568 The following three paragraphs (1,300 words) was cut from Garnier's French edition of the speech.
1569 According to the budget passed on 15 May 1849 the size of the French army was 389,967 men and 95,687 horses. This figure rises to 459,457 men and 97,738 horses for the entire French military (including foreign and colonial forces). The expenditure on the Army in 1849 was fr. 346,319,558 and for the Navy and Colonies was fr. 119,206,857 for a combined total of fr. 465,526,415. Total government expenditure in 1849 was fr. 1.573 billion with expenditure on the armed forces making up 29.6% of the total budget.
1570 In order to maintain an army at about 400,000 men with 7 year enlistments the French government had to recruit about 60-80,000 new men each year by a combination of voluntary enlistment, conscription (by drawing lots), and substitutions. The liberal journalist and anti-conscription campaigner Émile de Girardin estimated that about one quarter of the entire French Army consisted of replacements who had been paid fr. 1,800-2,400 to take the place of some young man who had been called up but did not want to serve. The schedule of payments depended on the type of service: fr. 1,800-2,000 for the infantry; 2,000-2,400 for the artillery, cavalry and other specialized forces. Émile de Girardin, Les 52: Abolition de l'esclavage militaire . (Paris: M. Lévy, 1849). See the glossary on "The French Army and Conscription."
1571 As Vice-President of the Chamber's Finance Committee.
1572 info ??
1573 Bastiat believed that the government should get its revenue for essential services in the short term by imposing a 5% tariff on both imports and exports, which would be replaced in the longer term by a low, income tax on all individuals. See his "The Single-Tax in England. The Proposal of Mr. Ewart" (LE, 27 June 1847), above, pp. 000.
1574 Total revenue for the French government was 1,400 million francs in 1849.
1575 The tax on alcohol was abolished in May 1849 (when Hippolyte Passy (1793-1880) was the Minister of Finance) but the new Minister of Finance, Achille Fould, was able to have it reinstated in December 1849. On 12 December 1849 Bastiat gave an impassioned speech in the Chamber on the need to abolish the tax on alcohol. See, "Speech on the Tax on Wines and Spirits" CW2, pp. 328-47. Also Achille Fould, Lettre sur l'impôt des boissons (1849).
1576 Bastiat discusses how indirect taxation is a "trick" or a "hoax" in "The Single-Tax in England. The Proposal of Mr. Ewart" (LE, 27 June 1847), above, pp. 000; and "A Hoax" (JB no. 2 June 1848), above, pp. 000.
1577 Under the July Monarchy (1830-1848) the right to vote was limited to the wealthiest tax-payers who paid a certain amount in direct tax. Towards the end of the July Monarchy this group numbered about 240,000 individuals or about 5% of the population. Bastiat termed them "la classe électorale" (the electoral or voting class)). After the February 1848 Revolution universal manhood suffrage (men over the age of 21) was introduced for the April 1848 elections at which 7.8 million people participated (or 84% of registered voters). In the May 1849 election there were 9.9 million registered voters. See the glossary on "The Chamber of Deputies and the Electoral Class."
1578 That is, how high the taxes had become.
1579 In ES2 11 "The Utopian" (January 1847) Bastiat wanted to slash immediately the size of the French army by 100,000 men (or one quarter thus saving 400 million francs) and eventually convert it from a standing army into a collection of local militias. See, CW3, pp. 187-98.
1580 This is the end of the section which was cut from Garnier's French edition.
1581 The remainder of this paragraph (about 150 words) were not included in the Garnier version of the speech.
1582 "Sed Caesar in omnia praeceps, nil actum credens, cum quid superesset agendum" (But Caesar, headlong in all his designs, thought nothing done while anything remained to be done). Lucan, Pharsalia , Book II, line 656.
1583 François René, vicomte de Chateaubriand (1768-1848) was a novelist, philosopher, and supporter of Charles X. He was the Minister of Foreign Affairs from December 1822 to June 1824. He was a defender of the freedom of the press and Greek independence from Turkey. He refused to take the oath of allegaince to King Louis-Philippe after he came to power in 1830. He spent his retirement writing Mémoires d'outre-tombe (Memoirs from Beyond the Grave) (1849-50) which was published posthumously. He died the previous July (1848). Bastiat closed his last book, WSWNS with a quote from this book.
1584 The Peace Congress was presided over by the poet and playwright Victor Hugo (1802-1885).
1585 Alphonse de Lamartine (1790-1869). See the critical letters Bastiat wrote to Lamartine criticising his economic views, above, pp. 000.
1586 Pierre-Jean de Béranger (1780-1857). See glossary entry on "Béranger."
1587 This quotation comes from the refrain in Béranger's anti-monarchical and pro-French poem "La sainte alliance des peuples" (The Holy Alliance of the People). (1818) in Oeuvres complètes de P.J. de Béranger contenant les dix chanson nouvelles, avec un Portrait gravé sur bois d'après Charlet (Paris: Perrotin, 1855), vol. 1, pp. 294-96. For a translation see, Béranger's Songs of the Empire, the Peace, and the Restoration. Translated into English verse by Robert B. Clough (London: Addey and Co., 1856), pp. 59-62. The first verse goes as follows: "I saw fair Peace, descending from on high, Strewing the earth with gold, and corn, and flow'rs; The air was calm, and hush'd all soothingly The last faint thunder of the War-gods pow'rs. The goddess spoke: 'Equals in worth and might, Sons of French, Germans, Russ, or British lands, Form an alliance, Peoples, and unite, In Friendship firm, your hands'." This line was also used by Molinari at the end of his 11th Soiréé in Les Soirées de la rue Saint-Lazare (1849).
1588 Richard Cobden (1804-1865), the head of the English Anti-Corn Law League.
1589 See the glossary entry on "Harmony and Disharmony."
1590 This is a slightly secularized version of a verse from Matthew 6:33, "But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you." (King James trans.)
1591 This paragraph was inserted in the Garnier French edition. It should be noted that Cobden gave his speech first in French and then again in English.
T.312 "Speaks in a Discussion in the Assembly on changing the Law on the Appropriation of Private Property for Public Use" (6 Oct. 1849)↩
SourceT.312 [1849.10.06] "Speaks in a Discussion on changing the law on the appropriation of private property for public use." Short speech to the National Legislative Assembly, 6 Oct. 1849, CRANL, vol. 2, p. 438. Not in OC. CW4
Editor's IntroductionThis is the 11th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
This is a very technical discussion of certain procedural matters concerning how Committees of the Assembly present bills for discussion before the Chamber. Bastiat had personal experience of this as Vice-President of the Finance Committee which had 60 members. It was one of 16 such committees established to discuss issues such as labour, foreign affairs, and so on.
The topic under discussion was an amendment put forward by the socialist Martin Nadaud 1592 to amend a 1841 law 1593 about the confiscation of property by the state for public works. This law had been enacted when large tracts of land around Paris were being confiscated by the state to build the military wall around Paris and the large circle of 16 immense forts which were known as "the fortifications of Paris" or "Thiers' Wall." This project took 4 years to complete (1841-44) and cost 120 million francs and used army conscripts as labour. 1594 The project was vigorously opposed by the economist Michel Chevalier 1595 and the mathematician François Arago. 1596 Nadaud wanted to amend the law so that whenever part of a building or piece of land was expropriated by the city of Paris it also would have the right to seize all of the property, not just part of it, so long as compensation was paid to the owner. The Assembly did not vote in favour of the amendment.
This issue of compulsory acquisition of private property divided the members of the Political Economy Society with the more radical wing represented by Gustave de Molinari who opposed the idea completely in his book Les Soirées de la rue Saint-Lazare (Sept. 1849), 1597 and the majority which were of the view that the state had the right to do this but only on a limited scale. They rejected plans to expand the power of the state to do this as put forward by the socialist Deputy Nadaud here. Molinari's book and the issue of compulsory state acquisition of property was discussed a few days later at the next meeting of the Political Economy Society held on 10 October. 1598
TextM. F. Bastiat: I ask the Assembly to take note of the path down which it is going. The proposal is rejected not because it is completely wrong, but because it is not as perfect as it could be. So if all proposals have to be approved by the Committee, and if the Assembly were to reject proposals simply because they were not approved by the Committee on the first pass, because they were not as perfect as one would like, then this is to do away with the right of initiating legislation. (There are gasps by some Members)
I do not wish to harm anybody, Messieurs; but I rely upon the argument which has been put forward to reject M. Nadaud's proposal, one which I cannot assess and on which I have no opinion. I can only speak of the reasons put forward by the Committee. They say: The proposal can be useful in many circumstances but it has not yet reached its level of perfection, hence we will reject it.
We know from experience that proposals do not pass scrutiny (in Committee) in the same form as they were made by their authors. I do not think that the aim of this institution of the parliamentary legislative committee is exactly to examine proposals and only pass on to the Assembly those it finds to be good; I think that it is sufficient that the Committee says that a proposal might provide some benefit if it were taken into consideration (by the Assembly).
1593 The Law of 7 July 1833 (and amended by the Law of 6 May 1841) created special juries of local landowners which would determine the level of compensation for confiscated land. See, A. Legoyt, "Expropriation pour cause d'utilité publique," DEP , vol. 1, pp. 751-53.
1594 See the glossary entry on "The Fortifications of Paris."
1595 Michel Chevalier, Les fortifications de Paris, lettre à M. Le Comte Molé (Paris: Charles Gosselin, 1841) and Cours d'Économie politique fait au Collège de France par Michel Chevalier (Bruxelles: Meline, Cans, 1851), vol. 2, "Douzième leçon. Concours de l'armée française aux travaux des fortifications de Paris," pp. 183-96. First ed. 1844.
1596 François Arago, Sur les Fortifications de Paris (Paris: Bachelier, 1841) and Études sur les fortifications de Paris, considérées politiquement et militairement (Paris: Pagnerre, 1845).
1597 See, Molinari, "The Third Evening," in Les Soirées (LF forthcoming).
1598 See below, pp. 000.
T.277 "Comments at a Meeting of the Political Economy Society on the Limits to the Functions of the State (Part 1) and Molinari's Book" (10 Oct. 1849)↩
SourceT.277 (1849.10.10) Bastiat's comments on the limits to the functions of the state (part 1) and Molinari's book at a Meeting of the PES (Séance de 10 oct. 1849). In "Chronique," JDE, T. 24, no. 103, Oct. 1849, pp. 315-16; also ASEP (1889), pp. 82-86. Not in OC. [CW4]
Editor's IntroductionThis is the sixth record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
This is the first of three discussions at meetings of the Society on the topic of the propers limits to the power of the state and it was followed by similar discussions in January and February 1850 (see below, pp. 000). It was stimulated by the appearance of Gustave de Molinari's book Les Soirées de la rue Saint-Lazare, Entretiens sur les lois économiques et défense de la propriété (Evenings on Saint Lazarus Street: Discussions on Economic Laws and the Defence of Property) 1599 in which there is a discussion between a Socialist, a Conservative, and an Economist every night for 12 nights. Over the course of these evenings Molinari presents his radical free market ideas which he based firmly on the principle of the natural right to own one's self and the things one created, and the non-use of coercion by all groups, in particular the government. Every evening he argued that monopolies of all kinds, whether government monopolies in the provision if in so-called public goods, or private monopolies granted to favoured groups by the state, could be better and more cheaply provided by private firms operating in a competitive free market. The most controversial evenings for the other members of the Society were the Third Evening, when he rejected completely the principle of the compulsory expropriation of property by the state for reasons of public utility, and the Eleventh Evening, when he advocated the private and competitive provision of security (both police and national defence) by voluntary associations such as insurance companies. He had first put forward the latter idea in an article in the February issue of the JDE but it had been ignored by his colleagues until this meeting. 1600
Bastiat rejected the viability of Molinari's proposal and like Charles Coquelin thought that "the functions of the State ought to be confined to guaranteeing justice and security; but, since this guarantee only exists through force, and that force can only be the attribute of a supreme power, he does not understand (how) society (would function) with a similar power assigned to groups which were equal to each other, and which would not have a superior point of reference."
Text[The meeting began with a discussion of the progress which had been made in the teaching of political economy, before turning to the topic of the functions of the state.]
After these discussions M. (Horace) Say who presided at the meeting, proposed to bring the conversation around to a very difficult subject (one which had already been abandoned in a previous meeting because of a digression on the topic of state assistance (to the poor)), namely on the question of knowing where the limits were between the functions of the state and individual activity; if these limits were well defined, and if there was a way to make them more precise. Unfortunately, as M. Say said, this subject was suggested to him by reading the book just published by M. Molinari ( Evenings on Saint Lazarus Street , dialogs on several principles of social economy) 1601 and it wouldn't take very much more for the main question to once again be treated very timidly and for the discussion to get sidetracked onto the other topics treated by Molinari such as the principle of (compulsory) expropriation of property (by the state) for reasons of public utility, which he had fought against in a very absolute manner. 1602 Nevertheless, the conversation was very lively and instructive at the same time. The following gentlemen spoke in turn (on the topic): Messieurs (Charles) Coquelin, Bastiat, (Félix Esquirou) de Parieu, (Louis) Wolowski, (Charles) Dunoyer, (Pierre) Sainte-Beuve (Representative of l'Oise, who was attending for the first time, as was M. (Salomon) Lopès-Dubec, 1603 Representative of la Gironde), (Denis Louis) Rodet, and (Claude-Marie) Raudot (Representative of Saône-et-Loire).
M. Coquelin 1604 took as his starting point M. Molinari's opinion that in the future competition will be established between insurance companies which will be capable of guaranteeing security for the citizens who would be their clients. He noted that M. Molinari had not taken care (to ensure that), without a supreme authority, justice had (a legal) sanction, and that competition, which was the sole remedy against fraud and violence, and which alone was capable of making the nature of things triumph in the mutual relations between (human beings), could not exist without this supreme authority, without the State. Beneath the State, competition is possible and productive; above the State, it is impossible to put (competition) into practice and even to conceive of it. 1605 Bastiat spoke in the same vein as M. Coquelin. He believes that the functions of the State ought to be confined to guaranteeing justice and security; but, since this guarantee only exists through force, and that force can only be the attribute of a supreme power, he does not understand (how) society (would function) with a similar power assigned to groups which were equal to each other, and which would not have a superior point of reference. M. Bastiat then wondered if this idea, that the State ought to undertake no other function than to guarantee security, when expressed in such a very well-defined, clear, and obvious manner, might become useful and effective propaganda given the presence of socialist ideas which are expressed everywhere, even in the minds of those who would like to fight it.
M. de Parieu, 1606 following Molinari in his discussion of a very distant ideal (society), thought that the question which was raised by the latter concerned the struggle between liberty and nationalism. 1607 Now, it was possible that the two principles could be reconciled quite naturally. Switzerland already offered the example of populations which let go of old cantons in order to form independent States. They decentralised (power) in a certain way but they remained united by the tie of nationality. M. Rodet 1608 similarly cited analogous examples from the history of the American Union.
M. Wolowski 1609 expressed the opinion that civilisation consists of the coexistence of the two principles marching in parallel: the principle of liberty of the individual and the principle of the social state, which ought not be misunderstood and which is endowed with its own life. The Honourable Representative did not think that the future lay with the breaking up of nations, on the contrary he believed in their enlargement by means of successive annexations (of territory).
M. Dunoyer, 1610 like M. Coquelin and M. Bastiat, thinks that M. de Molinari let himself be mislead by illusions of logic, and that competition between companies exercising government-like functions was utopian, because it would lead to violent struggles. Now these struggles would only come to an end with (the use of) force, and it is more prudent to leave force where civilisation had put it, in (the hands of) the State. Furthermore, M. Dunoyer believes that in fact competition (had already) entered into government by the role played by representative institutions. For example, in France all the parties are engaged in a real competition, and each of them offers its services to the public who really make a choice every time they vote in elections. M. Dunoyer also wanted to say that if M. de Molinari had been too absolute in forbidding any kind of expropriation (of property) for reasons of public utility, (perhaps it was because) some others in recent times had been too ready to violate property (rights); he cited the actions of the government before February 1848, as well as the theories espoused within the Constituent Assembly itself, with the support it must be said of the majority. M. Saint-Beuve 1611 and M. Bastiat did not accept this accusation directed against the majority of the Assembly to which they belonged. The fact remains that if indeed the Constituent Assembly made any decisions in the sense mentioned by M. Dunoyer there was always grounds to believe that it wasn't the perfectly sound judgement of the majority, not one based upon economic reason, but one taken by the spirit of political reaction against the extreme left, dominated by socialism, that caused them to act in this way.
M. Raudot, 1612 who spoke last, shared M. Wolowski's opinion about the probability which favoured the formation of larger and larger States in the future; but he thought that this concentration (of political power) would lead people to the greatest tyranny and greatest poverty (imaginable), if the State continued to want to absorb everything and to bring the municipalities under a tutelage which would anger the communes and give rise to socialism, the dangers of which we were beginning to understand.
As one can see, the original question put forward by M. Say had not been specifically addressed but several members at the meeting promised to return to it (in the future).
1599 Molinari's book was published by Guillaumin probably in late September or early October. It was critical reviewed in the October issue of the JDE by Charles Coquelin who agreed with most of the book but objected to Molinari using the figure of "The Economist" to put forward his own views not shared by other economists, such as totally opposing the right of governments to seize private property for public works and the private production of security. See "Les Soirées de la rue Saint-Lazare, Entretiens sur les lois économiques et défense de la propriété, par M. G. de Molinari," JDE , T. 24, No. 104, 15 novembre 1849, pp. 364-72.
1600 Molinari first presented his ideas about the private provision of security by insurance companies competing in the market in an article in the JDE (February) and then in Chapter 11 of his book Evenings on Sait Lazarus Street (Oct. 1849). See Gustave de Molinari, "De la production de la sécurité," JDE, T. 22, no. 95, 15 February 1849, pp. 277-90.
1601 The correct title was Evenings on Saint Lazarus Street: Discussions on Economic Laws and the Defence of Property.
1602 Molinari, "The Third Evening," in Evenings on Saint Lazarus Street (LF forthcoming).
1603 Salomon Lopez-Dubec (1808-1860) was a lawyer and businessman from Bordeaux. He was a judge on the Commerce Tribunal 1841-47, deputy mayor of Bordeaux, and a Deputy representing the Gironde 1849-1851.
1604 See the glossary entry on "Coquelin."
1605 He rephrased this in a more colourful way in a later conversation where he referred to the state as a kind of legislative Mount Sinai: "it alone, soaring above all (human) activities like a Mount Sinai, can guarantee liberty and competition." See the record of the Meeting of the Society on 15 Jan. 1850, below pp. 000.
1606 See the glossary entry on "Parieu."
1607 Towards the end of "The Eleventh Evening" the Socialist raises the question of what happens to nationality in Molinari's future society. The Economist's answer is "I do not see national unity in these shapeless agglomerations of people, formed out of violence, which violence alone maintains, for the most part. … A nation is one when the individuals who compose it have the same customs, the same language, the same civilisation; when they constitute a distinct and original variety of the human race. Whether this nation has two governments or only one, matters very little …"
1608 See the glossary entry on "Rodet."
1609 See the glossary entry on "Wolowski."
1610 See the glossary entry on "Dunoyer."
1611 Pierre Saint-Beuve (1819-1855) was a lawyer, land owner, and factory owner in l'Oise. He was elected Deputy representing l'Oise in 1848-1851 and voted with the conservative right.
1612 See the glossary entry on "Claude-Marie Raudot (1801-1879)."
T.241 Free Credit (Oct. 1849 - March 1850, Voix du peuple )↩
SourceT.241 (1849.10.22) Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Free Credit. A Discussion between M. Fr. Bastiat and M. Proudhon). An exchange of 14 Letters between Bastiat and Proudhon in The Voice of the People , (22 Oct. 1849 to 11 Feb. 1850, with Bastiat's final say in Letter 14 on 7 March 1850.
First published by Proudhon without Bastiat's final letter as Intérêt et principale. Discussion entre M. Proudhon et M. Bastiat sur l'intérêt des capitaux (Extraits de la Voix d Peuple) (Interest and Principle. A Discussion between M. Proudhon and M. Bastiat on Interest from Capital (Originally The Voice of the People)) (Paris: Garnier frères, 1850) [first 13 Letters].
Bastiat responded with his own edition with his final letter (7 March 1850), Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Free Credit. A Discussion between M. Fr. Bastiat and M. Proudhon) (Paris: Guillaumin, 1850). [OC5, pp. 94-335.] [CW4]
Editor's IntroductionMarche, marche, capital ! poursuis ta carrière, réalisant du bien pour l'humanité ! C'est toi qui as affranchi les esclaves ; c'est toi qui as renversé les châteaux forts de la féodalité ! Grandis encore ; asservis la nature : fais concourir aux jouissances humaines la gravitation, la chaleur, la lumière, l'électricité ; prends à ta charge ce qu'il y a de répugnant et d'abrutissant dans le travail mécanique ; élève la démocratie, transforme les machines humaines en hommes, en hommes doués de loisirs, d'idées, de sentiment et d'espérances ! | March on, Capital, march on! Pursue your career doing good for the human race! It is you that have freed slaves and overturned the fortified castles of feudal times! Grow even greater; make nature subject to you; make gravity, heat, light, and electricity contribute to human satisfaction! Take upon yourself what is repulsive and mind-numbing in mechanical work; make democracy rise up and transform human machines into men, men endowed with leisure, ideas, feelings, and hopes! |
[Source] 1613
So ends Letter 6 of this debate between the socialist anarchist Proudhon and Frédéric Bastiat. It is one example of several in this collection which demonstrates the passion Bastiat expressed for the free market (another is his "hymn to leisure" in Letter 4 discussed below) in his efforts to appeal to the working class readership of Proudhon's magazine La Voix du peuple (The Voice of the People).
Free Credit is one of the twelve Anti-Socialist Pamphlets which consisted of 15 separate essays and were written by Bastiat between May 1848 and July 1850. 1614 They were promoted by the Guillaumin publishing firm as a collection which was marketed as "Petits Pamphlets de M. Bastiat" (Mister Bastiat's Little Pamphlets) although several of them were by no means "small" in length, such as this one which was 292 pages. Paillottet tells us that one of these "Petits Pamphlets," Capital and Rent (Feb. 1849) (see above, pp. 000), was very critical of Proudhon's ideas and had made an impression on the working class readership of his magazine, some of whom began to question his standing within the socialist movement. The magazine therefore considered it necessary to attempt to refute Bastiat's criticisms. The editor in charge of the magazine while Proudhon was in prison in late 1849, F.C. Chevé, wrote the first critique of Bastiat in the October 22, 1849 issue and Bastiat asked for the opportunity to reply and obtained it. However, he was told after that first response that, for the rest of the discussion, Mr. Proudhon would take the place of Mr. Chevé, such was the threat they perceived Bastiat to be. After six Letters each Proudhon abruptly ended the debate on 11 February 1850, thinking he had won hands down, and published it as a book Interest and Principal . 1615 However, Bastiat also wanted to have the last word on the subject so he published his edition of the debate with a new title, Gratuité du crédit (Free Credit) , and an additional 14th Letter dated 7 March 1850 which had not appeared in the original series in La Voix du Peuple. 1616
Proudhon on Money and Banking
Proudhon was involved with a string of short-lived magazines during the Revolution and the Second Republic, some of them while he was in prison for various political offences. 1617 La Voix du peuple appeared in 223 issues between 1 Oct. 1849 to 14 May 1850 while Proudhon was incarcerated in Sainte-Pélagie prison. On March 28, 1849 Proudhon had been sentenced to three years in prison and a 3,000 franc fine for "offending the President of the Republic" (Louis Napoléon) who had been elected in December 1848. Proudhon had written some articles attacking the President's decision to send troops to Italy, and was convicted of a kind of "lèse-majesté" even though he had been elected to the Assembly in June 1848 and should have enjoyed parliamentary immunity. He continued to write articles attacking the President while he was in jail such as "Vive l'Empereur" (5 Feb. 1850) in which he compared President Louis Napoléon to an emperor and predicted that he would engineer a coup d'état to make himself emperor in the near future (which he did on 2 Dec. 1851 when he seized power in a coup and then proclaimed himself Emperor Napoléon III on 2 Dec. 1852). 1618 Proudhon ran the risk of being sentenced to additional time in prison but was eventually put into solitary confinement and transferred to another prison. This may explain some of the extraordinarily nasty personal language Proudhon used against Bastiat during the debate, attacks which Bastiat showed great strength in ignoring in spite of his deteriorating health.
Proudhon was well know to the Economists as he had written an article for the JDE in 1845 on subsidies for the railways and its impact on river transport which was not subsidised, and he had a book on Système des contradictions économiques (The System of Economic Contradictions) published by Guillaumin in 1846 1619 which had been reviewed by Molinari. 1620 He was highly regarded by some of the economists (like Molinari) because of his knowledge of economics, but they disagreed with him on several fundamental questions such as the legitimacy of interest and the justice of the ownership of private property. They were also very aware of his campaigns throughout 1848 and 1849 to reform the banking system with his schemes for a "Peoples' Bank" which he advocated within the Chamber of Deputies, where he was a Deputy like Bastiat, and in print.
Monetary matters came to a head after the Revolution and the creation of the Second Republic. Serious budget deficits confronted the new government as tax receipts collapsed and demands for spending on new programs like the National Workshops increased rapidly. There were calls for tax reforms from both sides of the political spectrum. The Minister of Finance in the Provisional Government, Garnier-Pagès, immediately increased direct taxes by 45% (the so-called 45 centimes tax) 1621 which fell on the lower classes most heavily; and Bastiat and the other political economists wanted to cut or abolish all direct taxes and replace them with a uniform low 5% tariff on all imported goods; while Proudhon argued for a kind of VAT on all economic exchanges and a tax on capital.
Another option instead of reforming the tax system was to nationalise the Bank of France (which had been a private monopoly) and to use it to expand the money supply and to issue very low or zero interest loans to ease the bad economic recession which followed the Revolution. It was as part of this discussion about the future of the Bank of France and the budgetary problems of the new government that Proudhon put forward his own ideas for an "Exchange Bank" between March and June 1848, culminating in his book Organisation du crédit et de la circulation in July 1848. When this came to nothing, he developed another scheme for a "Peoples' Bank" in January 1849 which would issue very low interest rate loans to ordinary workers. 1622 He attempted to raise money to get a People's Bank running with a prospectus for the formation of such a bank through popular subscription. The key features of the bank was that it would use the assets of the French nation to provide very low or zero interest loans to workers to set up their businesses and workshops, that gold coins and other hard currency would be replaced by paper currency, and that the banks would act as a clearing house to cancel out debts among the workers. Proudhon attempted to establish this bank between January and April 1849 but it failed to get the funds it needed and was forced to close. When Proudhon, the anarchist, tried to get government support for his failed bank, he was mocked by economists like Bastiat for his hypocrisy.
In addition to his attempts to reform the banking system, Proudhon also attempted, like Bastiat, to reform the system of taxation. Tax reform was debated in the Chamber in July 1848 during which Citizen Proudhon introduced a radical proposal to "simplify" taxes by eliminating many taxes (such as personal property taxes, taxes on doors and windows) and reducing others (1% tax on wine and beer, 2% on sugar, 1% octroi tax), but also introducing new taxes such as an across the board 1% tax on net capital above the value of 200 francs. This was completely rejected by the Chamber which defeated his motion 691-2. 1623 Elsewhere in his writings Proudhon argued against a separate tax on capital or on income, but for a universal and low tax on all economic transactions (or what he called "circulation"). It should be noted that Proudhon addressed his proposal to the Finance Committee of the Chamber of which Bastiat was Vice-President and where he might have found some support as they were similar to Bastiat's own views in many respects. Bastiat also lobbied for the reduction of taxes and the "simplification" of the French tax system from within the Finance Committee and gave several speeches in the Chamber on this topic. 1624 He wanted to abolish or reduce the same taxes as Proudhon but he would have strongly opposed the introduction of any taxes on capital or "transactions" (an early form of VAT). He wanted to replace all existing taxes with a low 5% tariff on both imports and exports for revenue purposes only (not for protection). In the long run he also wanted eventually to replace all indirect taxes with a low universal tax on income similar to the one proposed by Sir Robert Peel and William Ewart. 1625 Bastiat had about the same success as Proudhon did in getting his reforms accepted in the Chamber.
Bastiat's Response to Proudhon
It was most likely that Proudhon's advocacy of a People's Bank throughout 1848, both in the Chamber (where he sat with Bastiat on the left) and in his magazines and books, prompted Bastiat to more fully address the question of what he called "la papier-monnaie forcé" (compulsory paper money) and "la fausse monnaie légale" (legal counterfeit or false money) which would be issued by the state with the legal protection provided by "le cours forcé" (coerced exchange) either by the suspension of redeeming bank notes for gold, or by the imposition of legal tender laws for the new paper currency. This he did only in passing to begin with in the essay "Justice et fraternité" (Fraternity and Justice (JDE, June 1848) in which he used the expression "la papier-monnaie forcé" (compulsory paper money), 1626 and most importantly and in much more detail in the essay "Damn Money!" (JDE, April 1849) in which he used the phrase "la fausse monnaie légale" (legal counterfeit or false money) along with many other similar terms. 1627
However, it was in the Letters on Free Credit that Bastiat was able to expound at some length on his previously under-developed ideas about money and banking. Ideas about "free banking," 1628 or the "de-monopolisation" of the banking industry and the competitive issuing of currency were circulating among the economists in the mid-1840s largely as a result of the pioneering work of Charles Coquelin. 1629 In these "Letters" Bastiat adopted Coquelin's views on free banking and presented them as the solution to the problem of interest. As with any other business in a free market, competition among banks which can issue their own currency would lead to greater choice for consumers, more efficient and greater output, and thus lead to a lowering of cost of borrowing across the entire economy. Interest would not disappear, but it would drop to a very low level as the prices of goods and services would in any competitive industry. His clearest statement in support of free banking can be found in L10 where he states that "we claim and vigorously pursue the freedom of transactions, those that relate to capital, money, and bank notes as well as all the others. I would like it to be possible quite freely to open money shops and offices for loans and borrowing 1630 just as you open shoe shops or grocery shops." Several, but not all, economists in the Guillaumin circle advocated free banking. The most radical advocates were Bastiat, Molinari, and Coquelin himself. 1631 In his conclusion to the debate with Proudhon Bastiat makes another clear statement in favour of "la liberté des banques" (free banking) but slightly rephrases it to better align with Proudhon's advocacy of "la gratuité du crédit" (free credit). His slogan is now "la liberté du crédit" (freedom to issue credit): 1632
La gratuité du crédit, c'est l'absurdité scientifique, l'antagonisme des intérêts, la haine des classes, la barbarie. | ... (F)ree credit is a scientific absurdity, involving antagonism to established interests, class hatred, and barbarity. |
La liberté du crédit, c'est l'harmonie sociale, c'est le droit, c'est le respect de l'indépendance et de la dignité humaine, c'est la foi dans le progrès et les destinées de la société. | Freedom of credit is social harmony, it is right, it is respect for human independence and dignity, and it is faith in the progress and destiny of society. |
In Letters 12 and 14 Bastiat gives his most detailed criticism of "la papier-monnaie" (paper money). In Letter 12 he makes it clear that he is not referring to bank notes which can be redeemed for hard currency like gold or silver upon presentation of the note at a bank. He is referring to "la monnaie de papier" (money which is made out of paper) which he considers to be a kind of "false" or "counterfeit" or "fictif" (fictitious or imaginary) money. Once this point has been established he goes back to referring to this kind of money generally as "paper money." 1633 The danger France faced in the difficult post-February period was that the new government, under pressure from various interest groups (especially the socialists like Louis Blanc and Proudhon) would turn the Bank of France into "une fabrique inépuisable de papier-monnaie" (an inexhaustible paper money factory) which would result inevitably in the debasement of the currency.
In Letter 14 he uses the metaphor of water to describe what happens when the currency is debased in this fashion. Whereas today we talk about the "inflation" of the money supply (using the metaphor of air), Bastiat used words like "gorger" (to swamp), "saturer" (to saturate), and "affluer" (to flood), as in "la circulation en sera tellement saturée, qu'ils seront dépréciés" (the circulation of money will be so saturated with it that they (the paper notes) will be depreciated (in value)). 1634 The result will be the opposite of that hoped for by advocates of a Central Bank or a Peoples' Bank like Proudhon. The people who will benefit the most will not be the poor or the working class but the better off, the existing large property owners, the politically well-connected, and the "craftiest" opportunists who can spot a quick deal to be made before anybody else. 1635 This makes the prescient point that those who have first access to the new, false money will benefit the most before it depreciates in value as it goes into general circulation.
Hayek's accusation of Bastiat's neglect of Money and Banking issues
Friedrich Hayek accused Bastiat of neglecting in his writings "one of the main dangers or our time," namely the topic of money and inflation, because he had been distracted with the task of refuting "various queer proposals for using credit which were current in his time." 1636 However, as we argue here, Bastiat devoted a considerable amount of time to issues concerning money, banking, credit, and interest in the last two years of his life, and in doing this he inevitably discussed the problem of paper money and inflation, especially the historical example offered by the use of paper Assignats during the 1790s in the first Revolution and the threat of something similar happening if reformers like Proudhon had his way in 1849. It is true that before the Revolution of February 1848 he had spent most of his time writing on taxes, tariffs, and free trade, although he did touch on monetary matters in "Nominal Prices" (ES1 11 (Oct. 1845) and "The Export of Bullion" (LE, Dec. 1847). 1637 He did not take this matter any further as he was significantly distracted by the outbreak of the Revolution, standing for election in the new Constituent Assembly, serving on the Chamber's Finance Committee (where he was forced to confront monetary issues head on), and opposing the rise of socialism throughout 1848. In the year between the appearance of his pamphlet Capital and Rent (Feb. 1849) and his last Letter to Proudhon in March 1850 Bastiat wrote two lengthy essays, a shorter article, and seven Letters to Proudhon for a total of 58,000 words on the topics of money, capital, and interest. His most extensive treatment of money was of course Damn Money! (April 1850) which was designed to refute the monetary ideas of socialists like Proudhon. 1638
After this flurry of activity ended, Bastiat's failing health meant he had to devote himself to other matters, such as finishing his treatise Economic Harmonies and his last three major essays on "Plunder and Law" (May 1850), The Law (June, 1850), and What is Seen and What is Not Seen (July 1850). 1639 Bastiat no doubt intended to have a chapter on money in the Economic Harmonies and his posthumous editor Paillottet dutifully indicated where it would have gone had the volume ever been finished. Unfortunately, it is an empty chapter with only a footnote telling the reader to consult the pamphlet "Damned Money!" to learn what Bastiat's views were. After the debate with Proudhon Bastiat did not write any more on the topic of money and banking, other than some brief remarks on the topic of capital and thrift (saving) in his last work What is Seen and What is Not Seen (July 1850). It would seem that Hayek's assertion about Bastiat's neglect of monetary issues is unfounded.
The Debate between Proudhon and Bastiat on Credit
As Roderick Long notes in his essay on the debate, in many ways it was "a dialogue of the deaf". 1640 Neither party seemed to understand or appreciate what the other was saying, and both had methodologies of analysis which were vastly different: "Kantian antinomies and Hegelian contradictions" for Proudhon versus the "natural laws of economics and Providential harmony" for Bastiat. Although they shared some common ground, such as their hostility to state intervention, an early appreciation of subjectivist value theory, and certain ideas about class theory and the exploitation of the workers by the politically privileged, there never was a real meeting of the minds as one might have hoped for, and on a couple of occasions the debate degenerated into name calling and ad hominem attacks especially by Proudhon. Bastiat kept his cool throughout although he was badly insulted by Proudhon who accused him of not knowing "the first thing about political economy" (L9), of not being "even a man" (L13), and the very hurtful insult, given Bastiat's fatal health condition, of being "a dead man" (L13). 1641 Proudhon's list of all Bastiat's intellectual "sins" in L13 provided Bastiat with an opportunity for a very witty and damning reply to the anti-religious and rather dyspeptic Proudhon. Bastiat quotes a real 9th century excommunication and the similarity of language and personal venom allows him to imply that Proudhon is running a kind of "economic high church" which has just excommunicated the heretic Bastiat. Perhaps one might excuse Proudhon for his bad temper and name calling as he conducted the entire debate from the prison in which he had been incarcerated in June 1849 for lèse-majesté against the new President of the Republic. But, then again, Bastiat was seriously ill and would have had his own reasons for behaving badly, but he didn't.
Some key issues which were raised during the debate include the following:
- their very different definitions of capital
- their different use of theory and history to make their debating points
- the use of thought experiments by both men
- the use of class analysis of contemporary French society
- their common interest in the idea of the "mutuality of services"
- Proudhon's very Keynesian notion of the stimulatory effects of an increase in the circulation of money
- both Proudhon and Bastiat were close to developing a subjective value theory similar to that of the Austrian school
- Proudhon's notorious habit of inventing new words which complicates the understanding of what he was trying to say
- Bastiat's quite lyrical reflection on the importance of leisure and the role capital plays in making this increasingly possible for ordinary people
- Bastiat's understanding of the importance of time (an early notion of time preference) versus Proudhon's lack of understanding of this
(1.) their very different definitions of capital
Bastiat's most succinct definition of capital can be found in the pamphlet Capital and Rent (Feb. 1849): 1642
What is capital, then? It is made up of three things:
1. Materials , on which people work, when these materials already have a value bestowed upon them by human effort of one kind or another, which has endowed them with the possibility of being bought and sold: wool, linen, leather, silk, wood, etc.
2. I mplements people use in order to work: tools, machines, ships, vehicles, etc., etc.
3. Provisions that they consume while they are working: foodstuffs, fabrics, houses, etc.
Proudhon's definition of capital is harder to pin down. It can be anything of "la valeur faite" (created value) which is exchanged and put into circulation. In L9 he states that " in the same way as in society net product is indistinguishable from gross product, so in the overall make-up of economic reality capital is indistinguishable from output (or product). These two terms in fact do not designate two distinct things; they distinguish only relationships. Output is capital, capital is output." And also that "Money, above all, money! This is capital par excellence, capital that is lent, that is to say that is hired out."
In L11 and in L5 he states that these "products" do not become capital until they are exchanged or put into "circulation," as in this quotation "Everything that is capital is of necessity a product, but everything that is a product, even when accumulated and even intended for reproduction, like the tools and implements of work in manufacturers' workshops, is not capital because of that. Capital, once again, supposes a prior evaluation, an act of exchange, or having been put into circulation, without which there is no capital."
His most succinct statement can also be found in L11, where he states that "I therefore call capital anything of created value in the form of land, tools, or implements of production, goods, food products, or cash, which is used or can be used for production ."
(2.) their different use of theory and history to make their debating points
Both men made very different use of theory and history to make their points. Proudhon did not believe that there were any universal economic "laws" which were valid at all times and in all places. He believed in Kantian "antinomies," that something could be true at one time in one respect and be false at other time in another respect. This lead him to believe that human institutions and ideas about what was right and proper evolved over time, and that what was legitimate and necessary in an earlier epoch, such as the charging of interest on high risk maritime cargo in the late middle ages or early modern period, was no longer legitimate and necessary in the modern period with its greater wealth, division of labour, and different social relations. Bastiat on the other hand, believed that economists have identified aspects of human behaviour, such as time preference and incentives to work, which were universal, and had also discovered certain "natural laws of economics" which could not be violated by either individuals or societies without incurring severe penalties. Among the latter were Malthusian limits to rapid population growth and the problem of the scarcity of or the competing uses for physical resources. Too often the debate collapsed into Proudhon saying that "things have changed" and that therefore there was no longer any need to charge interest on loans; to which Bastiat would reply that certain things may have changed but human nature and the physical fact of scarcity had not, and therefore interest was still necessary. The result was not a very productive or enlightening discussion which went round and round.
(3.) the use of thought experiments by both men
Another issue concerns the difference between what one might learn from abstract economic theory and the study of actually existing human societies with all their imperfections and injustices. Both Proudhon and Bastiat liked to use "thought experiments" in order to explore the logical and moral problems of making economic choices. This was central to Bastiat's invention and use of "Crusoe economics", in which he used the fictional figure of Robinson Crusoe on the Island of Despair to explore, even in the absence of exchange with others, how a single individual economises on their scarce time, labour, and resources in order to survive as best they can, most often by attempting to build capital goods like a fishing hook or an axe. 1643 The modern Austrian economist Murray Rothbard thinks that this way of thinking was one of Bastiat's most original insights which places him squarely in the Austrian praxeological camp. 1644 He uses this method of abstracting the logic of human action several times in the letters: such as the stories of the Carpenter and the Worker in L4, the Borrower and the Lender in L6, the Joiner and the Blacksmith in L10, and the rebuilding of the world by Hellen following the flood in L14. A common thread is Bastiat's discussion of opportunity costs and economic incentives and how these influence the decisions individuals will make. Although Proudhon dismisses them as mere "fables" their apparent simplicity masks deep economic insights which is a topic we discuss at more length in the Introduction to the CW3. 1645 On occasion, Proudhon also uses some "thought experiments" of his own, as if he were attempting to beat Bastiat at his own game, but his stories lack the wit and insight of Bastiat's. In L7 he has two, one on "the Millionaire and the Proletarian" which is a classic example of a "life boat" situation (here literally), which is followed by his own version of Crusoe economics with "Robinson and the Castaway." One might also consider Proudhon's very long and elaborate discussion of the "accounting" done by "A", who represents the entire class of landowners, capitalists, and businessmen, and the rest of the alphabet, which represents all wage earners, as a very clumsy thought experiment which eventually collapses under its own weight of overelaborate and invented detail.
(4.) the use of class analysis of contemporary French society
Proudhon is on better ground when he points out the widespread injustices which exist throughout French society, which benefit a minority of privileged landed, business, and financial elites, and which adversely affect the welfare of the ordinary working person. Many of these were also recognised and opposed by Bastiat, such as legal bans on the formation of trade unions, restrictions on who could work in certain industries, indirect taxes on food, salt, and other essential items for working people (interesting also including wine), and of course tariffs on imported goods. 1646 Thus it is odd that neither seems to make the best use of these historical examples drawn from how the actual French state functioned in practice. Proudhon for example, although an anarchist, thinks that the privileged monopoly Bank of France could and should be used to put his idea of a Peoples' Bank into practice, or that the state should guarantee the subscription for a loan to start his own bank - hypocrisies which Bastiat naturally, and perhaps with some enjoyment, points out in L10. On the other hand, Bastiat correctly argues that his use of thought experiments to explain how individuals make economic decisions does not make him "l'avocat du privilége capitaliste" (an advocate or apologist for capitalist privilege), yet he does not discuss here his own quite detailed and radical ideas about institutionalised "legal plunder" 1647 and the vast array of "causes perturbatrices" (disturbing factors) such as war, slavery, the seizure of land, legal monopolies, and subsidies which interfered with the harmonious operation of free markets. 1648 In other writings he develops a theory of how societies evolve through various eras such as slavery, theocracy, monopoly, and governmental exploitation in which each stage has its own kind of ruling "oligarchy" and "la classe spoliatrice" (plundering class). He would be the last to admit that the France in which he lived was an example of the kind of free market, voluntary society which he advocated. In fact, he thought it was becoming increasingly ruled by "une classe de fonctionnaires" (a class of government bureaucrats) who were "un parasite légal" (legal or state-supported parasites) who sucked the life blood out of the industrious working class. 1649 Bastiat's language is very similar to that used by Proudhon in L9 where he makes a similar contrast between "la classe travailleuse" (the labouring classe) and"la classe parasite" (the parasitic class), 1650 so it is strange that they didn't seek some common ground on this issue in the debate.
The following is an example of how Bastiat too could become as impassioned on the issue of class as his socialist opponents. This passage comes from the Conclusion of the first edition of the Economic Harmonies which appeared in print in January 1850 as this debate with Proudhon was underway: 1651
La Spoliation ! voici un élément nouveau dans l'économie des sociétés. | Plunder! This is a new element in social economics. |
Depuis le jour où il a fait son apparition dans le monde jusqu'au jour, si jamais il arrive, où il aura complétement disparu, cet élément affectera profondément tout le mécanisme social ; il troublera, au point de les rendre méconnaissables, les lois harmoniques que nous nous sommes efforcés de découvrir et de décrire. | From the day it first appeared in the world to the day, if ever that should arrive, when it will have completely disappeared, this element will profoundly affect the entire social mechanism. It will perturb the laws of harmony that we have endeavored to elucidate and describe, to the extent of making them unrecognizable. |
Notre tâche ne sera donc accomplie que lorsque nous aurons fait la complète monographie de la Spoliation. | Our task will therefore be completed only when we have written a detailed monograph on Plunder. |
Peut-être pensera-t-on qu'il s'agit d'un fait accidentel, anormal, d'une plaie passagère, indigne des investigations de la science. | Perhaps some will think that it is an accidental contingency, abnormal, a short-lived wound unworthy of scientific investigation. |
Mais qu'on y prenne garde. La Spoliation occupe, dans la tradition des familles, dans l'histoire des peuples, dans les occupations des individus, dans les énergies physiques et intellectuelles des classes, dans les arrangements de la société, dans les prévisions des gouvernements, presque autant de place que la Propriété elle-même. | But be careful. In family tradition, in the history of nations, in individual occupations, in the physical and intellectual energy of classes, in the organization of society or in government forecasts, plunder plays nearly as large a part as Property itself. [p. 409, CW5] ... |
On entre ainsi dans l'ère des priviléges. La Spoliation, toujours plus subtile, se cantonne dans les Monopoles et se cache derrière les Restrictions ; elle déplace le courant naturel des échanges, elle pousse dans des directions artificielles le capital, avec le capital le travail, et avec le travail la population elle-même. Elle fait produire péniblement au Nord ce qui se ferait avec facilité au Midi ; elle crée des industries et des existences précaires ; elle substitue aux forces gratuites de la nature les fatigues onéreuses du travail ; elle fomente des établissements qui ne peuvent soutenir aucune rivalité, et invoque contre leurs compétiteurs l'emploi de la force ; elle provoque les jalousies internationales, flatte les orgueils patriotiques, et invente d'ingénieuses théories, qui lui donnent pour auxiliaires ses propres dupes ; elle rend toujours imminentes les crises industrielles et les banqueroutes ; elle ébranle dans les citoyens toute confiance en l'avenir, toute foi dans la liberté, et jusqu'à la conscience de ce qui est juste. Et quand enfin la science dévoile ses méfaits, elle ameute contre la science jusqu'à ses victimes, et s'écriant : À l'Utopie ! Bien plus, elle nie non-seulement la science qui lui fait obstacle, mais l'idée même d'une science possible, par, cette dernière sentence du scepticisme : Il n'y a pas de principes ! | We thus enter the era of privilege. Plunder, ever more subtle, is enshrined in Monopoly and hidden behind Restriction. It displaces the natural flow of exchanges, it impels capital in artificial directions, with capital, labor, and with labor, the population itself. It makes the North produce with difficulty what the South would produce with ease. It creates precarious industries and existences. It substitutes the costly fatigues of effort for the free forces of nature. It sets up establishments that cannot sustain any rivalry and invokes the use of force against their competitors. It triggers international jealousy, flatters patriotic pride, and invents ingenious theories that use its own dupes as accessories. It renders crises in production as well as bankruptcies constantly likely and undermines all the citizens' confidence in the future, all faith in freedom and even the understanding of what is just. And when science at last strips the veil from its misdeeds, it whips up its victims against science by exclaiming: "Utopia!" What is worse, it denies not only the science that bars its path but the very idea of a possible science, through this final skeptical sentence: There is no such thing as principles! |
The similarity to Proudhon's own rather "fiery" language about class is striking and one would have thought they should have found considerable common ground here. Yet, for some reason Bastiat held back from making these sorts of arguments in his Letters and thus allowed Proudhon to paint him as not caring about the condition of the poor and being a typical economist who was "sans entrailles" (heartless). Here we have another example of Proudhon and Bastiat talking past each other. They both used class analysis to expose the groups who benefited unjustly from access to state power at the expence of ordinary working people but there was no meeting of minds and no acknowledged agreement on these matters.
(5.) their common interest in the idea of the "mutuality of services"
See the glossary entry on "Service for Service" on Bastiat borrowing this term from Proudhon and adapting it to his own purposes.
(6.) Proudhon's very Keynesian notion of the stimulatory effects of an increase in the circulation of money
Special note should be made of the references by Proudhon to a very Keynesian notion of the stimulatory effects of an increase in the circulation of money and how the issuing of large quantities of paper money by a "central" bank (controlled by "the People") could bring this economic stimulation about. 1652
(7.) both Proudhon and Bastiat were close to developing a subjective value theory similar to that of the Austrian school
In addition, in spite of their intellectual differences, both Proudhon and Bastiat were close to developing a subjective value theory which would later become the hallmark of the Austrian school of economic thought. In L13 there is a very interesting passage where Proudhon argues that the value placed on products by different people is "purely subjective for individuals" but unfortunately does not develop it further:
Puisque la valeur n'est autre chose qu'une proportion, et que tous les produits sont nécessairement proportionnels entre eux, il s'ensuit qu'au point de vue social les produits sont toujours valeurs et valeurs faites : la différence, pour la société, entre capital et produit, n'existe pas. Cette différence est toute subjective aux individus : elle vient de l'impuissance où ils se trouvent d'exprimer la proportionnalité des produits en nombre exact et de leurs efforts pour arriver à une approximation. | Since value is nothing more than a proportion, and that all products are necessarily proportional to each other, it follows that from the social point of view products are always values and created values. The difference between capital and product, as far as society is concerned, does not exist. (There is no difference ...) This difference is purely subjective for individuals . It comes from their inability to express the proportionality (between) products in an exact number and from their efforts to arrive at an approximation. (Emphasis added.) |
Bastiat's most detailed remarks about value can be found in Chapter V "On Value" in EH, and scattered remarks in his pamphlet Capital and Rent (Feb. 1849) and some of the early chapters of EH which were published in the JDE in late 1848. For example, in "Economic Harmonies IV" he states the essence of subjectivist value theory. His insight was to reject the objectivity of this "value" and to see that it was the subjective valuations, the "appréciation comparée" (comparative evaluation or judgement), of the two parties to the exchange which made exchange both possible and worth while for both parties:
Economic science, therefore, unlike the so-called exact sciences, does not (have) the advantage of a yardstick, an absolute standard to which it can refer everything, a graduated measure that it can use to calibrate the intensity of desires, efforts, and satisfactions. … 1653
With regard to needs and desires, we have said that no two men are alike. This is also true of our satisfactions. They are not equally appreciated by all, and this boils down to the trite saying: tastes differ. Well, it is the acuteness of desires and the variety of tastes that determine the direction of (our) efforts. … 1654
(V)alue therefore consists in the comparative evaluation of the reciprocal services, and (thus) it may also be said that political economy is the theory of value. … 1655
(8.) Proudhon's notorious habit of inventing new words which complicates the understanding of what he was trying to say
Proudhon was notorious for inventing new words. His creative use of neologisms is shown throughout his writings which make understanding quite hard for the reader, not to mention the translator. We indicate in the footnotes when Proudhon is making up new words as he goes along. Some examples include, "le produit fait valeur" (the product made or transformed into something of value), "les non-valeurs" (things of no value), "la société consommatrice et reproductrice" (the consumer and producer firm or business), "la société capitaliste et propriétaire" (the capitalist and landowning firm or business), "propriétaire-capitaliste-entrepreneur" (a landowner-capitalist entrepreneur), that is a capitalist-minded landowner who acts as a businessman or entrepreneur, "le producteur-consommateur" (the producer-consumer), and "la spoliation bancocratique" (bankocratic plunder, or plunder by a ruling elite of bankers). One of his most widely used neologisms in these letters was the idea of "la valeur faite" (created, made, or produced value).
(9.) Bastiat's quite lyrical reflection on the importance of leisure and the role capital plays in making this increasingly possible for ordinary people
At the end of L4 Bastiat has some quite lyrical reflections on the importance of leisure in which he argues that there is more to life than just working. This would seem quite unusual for an economist regularly accused of being "heartless (sans entrailles) by the socialists. He goes on to argue that it is only by increasing wealth and capital accumulation that leisure is made possible for an increasing number of people, and how this in turn is so important for the development of a person's affections, mind, and sense of the beautiful. See the glossary entry on "The Importance of Leisure" for more information about Bastiat's thoughts on leisure.
(10.) Bastiat's understanding of the importance of time (an early notion of time preference) versus Proudhon's lack of understanding of this
Jean-Baptiste Say, who greatly influenced Bastiat's thinking on economics, had a much broader understanding than other economists of the period of what constituted productive activity. In addition to recognising the importance of "non-material goods" (or what we would call today "services") Say also thought transport was a productive activity in that it got needed goods and services into the hands of consumers. An interesting complexity he added was to see that "transport" could be both "geographical" (the movement of goods across physical space, such as the importation of grain) as well as "temporal" (entrepreneurs buying goods and storing them for use at a later time when they might be in greater demand, or what he called "speculation"). As he put it it: "Ce commerce tend, comme on voit, à transporter, pour ainsi dire, la marchandise d'un temps dans un autre, au lieu de la transporter d'un endroit dans un autre." (As one can see, this type of commerce is designed to transport merchandise from one time to another, so to speak, instead of transporting it from one place to another.) Molinari and Bastiat would take this notion of "transport through time" to another level with the realisation that granting a loan to somebody at interest meant that people placed different "evaluations" on the worth of present goods over later goods and thus "time" was also a valuable commodity and had to be paid for. 1656
Three Final Things to Notes
Bastiat may have "won" the debate, at least in the sense of winning the moral support of some of the working class readers of Proudhon's journal. Paillottet relates the following in a note: 1657
"A few people found Bastiat's patience during this discussion excessive. This and the preceding paragraphs explain his attitude clearly. He set great store by succeeding in instilling a few salutary truths in the workers, with the help of La Voix du Peuple itself. He was shortly to feel entitled to congratulate himself for having pursued such an outcome. One morning, a few days before the closure of the debate, he was visited by three workers, the delegates of a certain number of their fellow workers who had rallied to the banner of Free Credit . These workers came to thank him for his good intentions and for his efforts to enlighten them on an important question. They were not converted to the legitimacy and usefulness of interest, but their faith in the opposing thesis had been badly shaken and were held only by the strength of their support for Mr. Proudhon. "Mr. Proudhon is very concerned for our well-being", they said, "and we owe him much gratitude. It is a shame that he often uses words and sentences that are so difficult to understand." Finally, they expressed the wish that Messrs. Bastiat and Proudhon might come to an agreement and declared themselves ready to accept without comment any solution whatever put forward jointly by the two men."
In his last Letter 14 Bastiat managed to deliver a final parting shot across Proudhon's bows which Proudhon must have found very irritating. After repeatedly chastising Bastiat for not understanding the slightest thing about Kantian antinomies and Hegelian contradictions Bastiat returns the favour by wittily and intentionally returning to what he did best in the Economic Sophisms , namely the use of fables, stories, and "Robinsonian" thought experiments to make his points understandable to the ordinary reader. He ends his part of the conversation with a fable of the Flood (on capital accumulation) and the blind and the sighted who lived together in a Hospice (about how mutual jealousy between them prevents them from mutually benefiting from cooperation and exchange). Perhaps in the end Bastiat had the last laugh in what had had been at times a very bitter debate.
The editor of La Voix du peuple provided a summary of each Letter's content at the head of the piece, and this is something which we have retained.
Letter No. 1: F. C. Chevé to F. Bastiat (22 October 1849)F. C. Chevé, 1658
One of the editors of La Voix du Peuple
To Frédéric Bastiat
Adhesion to the formula: A loan is a service that has to be exchanged for another service. - Distinction between the different types of services. - The service that consists in handing over the temporary use of an item of property does not have to be paid for ultimately by the handing over of some other property. - The disastrous consequences of interest for the borrower, the lender himself and for society as a whole.
22 October 1849
All the principles of social economy that you have propagated with such remarkable talent lead surely and inevitably to the abolition of interest and rent. Since I am curious to know by what strange contradiction your logic, always so lively and so sure, drew back in the face of this final conclusion, I looked at the arguments of your pamphlet entitled Capital and Rent 1659 and noted, with a mixture of surprise and joy, that there was no longer any difference between you and us more substantial than a simple ambiguity.
This ambiguity rests entirely on the confusion of two things, which are nevertheless quite distinct, use (of something) and ownership (of something) .
Like us, you start from the fundamental and uncontested principle of the reciprocity, mutuality, and equivalence of services. 1660 The trouble is that by confusing use and property and treating as one two things of diverse nature, such that no equivalence between them is possible, you destroy all mutuality, all reciprocity, and all genuine equivalence, thus overturning by your own hands the principle you have established.
It is this principle that has come to set you against yourself. When you yourself have invoked the argument against rent, how can you repudiate it when it calls for the latter's abolition?
You would not accuse us, Sir, of lacking courtesy. We, the first to be attacked, leave you the choice of the place, the time, and the weapons and, without complaining about the disadvantages of the terrain, we accept the discussion according to the terms you have laid down. What is more, we are content to follow all the examples and demonstrations in your pamphlet Capital and Rent , one by one, and will merely put right the misunderstanding, the unfortunate ambiguity that alone has prevented you from reaching a conclusion hostile to rent. Do the terms of this debate seem fair to you or not?
Let us now deal with the subject.
Paul exchanges ten 50 centime coins with Pierre for 100 sous. 1661 This is a barter, an an exchange of one piece of property for another. However, Pierre says to Paul: "You will give me the ten 10 sous coins right now and, for my part, I will give you the 100 sous coin in a year's time." Here is "a new service and one of a different type that Pierre is asking of Paul."
But what is the nature of this service? Is Pierre asking Paul to hand over the ownership of a new sum, whatever it is? No, but he is simply asking Paul to allow him the use of this latter for a year. Well, since any service should be paid for by an equivalent service, the service of use should therefore be exchanged for a service of use , no more no less. Pierre will say to Paul: "You give me the use of ten 10 sous coins for a year and I will therefore owe you the same service in return, that is to say, the use of ten 10 sous coins also for a year." Is this or is this not just?
A man exchanges a ship for a house; this is barter, an exchange of one piece of property for another. However, the ship owner also wants to have the use of the house for a period of one year before handing over his ship. The owner tells him "This is a new service you are asking of me. I have the right to refuse or to ask you for an equivalent service in compensation." 1662 'It is clear,' replies the ship owner, 'that, for a period of one year, you are giving me the use of something that is worth 20,000 francs; I suppose that I therefore will owe you the use of something also worth 20,000 francs in exchange. Nothing would be more just. But since I am paying for your property with that of my ship, it is not a new piece of property but its simple use that you are allowing me and therefore I just have to allow you the use of something of equal worth for an equal period of time. "Services exchanged are equal in value." To demand more would be theft.'
Mathurin lends a sack of wheat "to Jérôme who promises to return a sack of wheat of equal quality and weight in one year's time, without a single grain being short." In addition Mathurin would like five liters of wheat over and above the hectoliter for the service he is provid ing Jérôme. 'No,' replies Jérôme, 'this would be unjust and an act of plunder; you are giving me the ownership of nothing at all since in a year's time I have to hand you back the exact value of what you are giving me today. What you are allowing me is the use of your sack of wheat for a period of one year and you therefore have the right to the use of something of equal value for one year as well. Nothing more, otherwise there would no longer be any mutuality, reciprocity, or equivalence of service.'
For his part, "Mathurin, who is a bit of an accountant, calculates the matter thus": Jérôme's objection is incontestable and in effect, 'if "at the end of a year he gives me back five liters of wheat in addition to the hundred liters I have just lent him, and if some time later, I am able to lend two sacks of wheat, then three or four, when I have invested a sufficiently large number to live on the total of these repayments," I will be able to eat without doing anything and without ever spending my capital. Well, someone will have produced what I will be eating. As this someone will not be me but someone else, I will be living at the expense of someone else, which is theft. And this is understandable, since the service I will have given is just the loan or use of something of a particular value, while the service that I will have been given in exchange will be a gift or the ownership of something.' Thus, there will be justice, equality, and equivalence of services only in the sense understood by Jerome.
Valère wishes to occupy Mondor's house for a period of one year. "He will have to submit to three conditions. The first is that he will have to move out at the end of one year and give back the house in good condition except for the inevitable wear and tear that result simply from the passage of time. The second is to pay Mondor the 300 francs that he pays each year to the architect to make good this wear and tear since, given that this wear and tear occurs while the house is in Valère's service, it is only fair that he bears the consequences. The third is to provide Mondor a service equivalent to the one Valère is receiving." Now, this service lies in the use of a house for a period of one year. Valère will thus owe Mondor the use of something of the same value for the same period of time. This value will have to be freely negotiated between the two parties to the contract.
Jacques has just completed the manufacture of a plane. Guillaume says to Jacques: 1663
'I need a service from you.'
'What service?'
'Lend me this plane for a year.'
'Are you serious, Guillaume? If I do you this service, what will you do for me in exchange?
'The same, of course; and if you lend me something worth 20 francs for a year, I will have to lend you in turn something of the same value for an equal period of time.'
'First of all, in a year's time the plane will have to be scrapped, as it will no longer be good for anything. It is therefore just for you to return to me one that is exactly similar, or for you to give me enough money to have it repaired, or for you to replace the ten days that I would have to devote to rebuilding it. In one way or another, the plane has to be returned to me in good condition, just as I am handing it over to you.'
'This is only fair; I agree to this condition. I undertake to give you back either a plane that is similar or its value.'
'Apart from the total restitution already agreed upon, you have to provide me a service which we will discuss.'
'The service is very simple. In the same way as for the plane you lend me, I have to give you a similar plane or its equal value; in the same way, for the use of this value for a period of one year, I owe you the use of a similar sum also for a period of one year. In either case "services exchanged are equal in value".'
Having established this, I think what we have here is a series of consequences whose justice it is impossible to question:
1. If use pays for use, and if the purely temporary handing over by the borrower of the use of an equal value "is a natural and equitable payment, the just price for a service of use," we may conclude as a generalization, that it is CONTRARY to the nature of capital to generate interest." Indeed it is very clear that, following the reciprocal use of the two services exchanged, since each owner has merely received the exact value of what he possessed previously, there is no interest or productivity of capital for either party. And this cannot be otherwise, since the lender could draw interest from the value lent only to the extent that the borrower himself draws no interest from the value provided in return. This being so, interest on capital is the negation of itself and it exists for Paul, Mathurin, Mondor, and Jacques only on condition that it is not allowed in the case of Pierre, Jérôme, Valère, and Guillaume. Since all things are in reality the tools of production on the same basis, the former group can levy interest on the value lent only if the latter in return levy interest on the value provided in exchange, which destroys the interest on capital of itself and reduces it to a simple right of use for use. Wanting to exchange the use of something for ownership of something is to dispossess and plunder one person in favor of another, "it is to legalize, organize, and systematize injustice itself." Let us state in fact that interest is illegitimate, iniquitous, and plunderous.
2. A second consequence, no less remarkable than the first, is that interest is harmful to the borrower, to the lender himself, and to society as a whole. It is harmful to the borrower and plunders him since it is obvious that if Pierre, Jérôme, Valère, and Guillaume have to return a greater value that the one they have received there is no equivalence in service, and that since the excess value that they return is produced by them and taken by others they are plundered to this extent. It is harmful to the lender, since when he needs to take out a loan he becomes a victim of the same (kind of) plunder. It is harmful to both and to society as a whole, since as the interest or rent increases considerably the cost of all products, each consumer is plundered by this amount on everything he buys. When workers can no longer buy back their products out of their wages, they are forced to reduce their consumption, and this reduction in consumption leads to unemployment. This unemployment leads to a new reduction in consumption and requires the unproductive gift of enormous sums swallowed up by public or private assistance and the repression of crimes that are constantly on the increase and generated by the lack of work and poverty. This leads to a terrible disruption in the law of supply and demand and in all the relationships of social economy, an obstacle "to the formation, growth, and abundance of capital" that cannot be overcome, the absolute autocracy of capital, the radical servitude of workers, with oppression everywhere and freedom nowhere. Let society "then understand the harm it is inflicting on itself when it proclaims the legitimacy of interest."
3. The anecdotes we have related also put us on the right track to explain all that is monstrous in the phenomenon that we call the perennial or perpetual nature of interest. As soon as Paul, Mathurin, Mondor, and Jacques cease to adhere to the principle of the equivalence of services and wish to exchange not use for use but use for ownership, in approximately fourteen years, they will end up receiving the value of their property, 1664 in a century ten times this value and, as they lend it indefinitely in this way, they will receive a thousand, a hundred thousand or a million times its value, without ever ceasing to be its owners . In this way, the simple use of a sack of wheat, a house, a plane will be equivalent to the ownership not of one but a million, a billion, and so on, of sacks of wheat, houses, or planes. This entails the ability to sell the same object again and again and receive again and again the same price without ever handing over the ownership of what is being sold. Are the values exchanged equal? Are reciprocal services equal in value? For note this well: the tools of production are a service for the lenders just as they are for borrowers and if Pierre, Jérôme, Valère, and Guillaume have received a service that consists of the use of a hundred sou coin, a sack of wheat, a house, or a plane, they have provide d in exchange a service which consists in the ownership of a billion hundred sou coins, sacks of wheat, houses, and planes. Well, unless you can demonstrate that the use of 5 francs equals the ownership of 5 billion, it has to be acknowledged that interest on capital is theft.
As soon as an individual or succession of individuals are able, by means of interest or rent, to exchange 5 francs, a sack of wheat, a house, or a plane for a billion or more 5 franc coins, sacks of wheat, houses, or planes, there is someone in the world who is receiving a billion times more than he has produced. Well, this billion is the subsistence of one hundred or a thousand other people and, assuming that the income that remains to these thousand plundered people is still enough to feed them as they labor till their last breath, it is the leisure time of one thousand individuals that a single person swallows up, that is to say, their whole moral and intellectual life. These men from whom their entire spiritual life and thought is thus removed for the benefit of a single man might perhaps have become Newtons, Fénelons, or Pascals, 1665 producing marvelous discoveries in the sciences and arts and advancing the progress of humanity by a century. But no, "thanks to rent and its monstrous perennial nature," leisure has been forbidden precisely to all those who work from the cradle to the grave and becomes the exclusive privilege of a few idlers who, thanks to interest on capital, appropriate to themselves, without lifting a finger, the fruit of the crushing labor the workers endure. Almost all "humanity is reduced to wallowing in a life that is vegetative and immobile, in eternal ignorance" because of this plundering by rent, first of all removing their subsistence and then their leisure. If there were on the contrary no rent, with everyone receiving exactly what he has produced, an immense number of men now idle or condemned to work that is unproductive and often destructive will be compelled to work, which will increase accordingly the sum of general wealth or possible leisure, and this leisure will belong forever to those who have genuinely acquired it through their own work or that of their fathers.
But, it is said that, "if capital can no longer produce interest, who will want to create the tools of production, the materials and provisions of all sorts that make it up? Each person will consume what they have and humanity will never take a step forward. Capital will no longer be built up since there will be no interest in doing this." This really is a strange contradiction. Does a farmer not have something to gain by producing as much as possible, even though he merely exchanges his harvest for an equal value once it is paid with no rent or interest on capital? Does an industrialist not have something to gain by doubling or tripling his products even though he merely sells them for a sum that is equivalent to just one payment, without any interest on capital? Do 100,000 franc pieces cease to be worth 100,000 francs because they no longer produce interest? Do 500,000 francs in land, houses, machines or other things cease to be 500,000 francs because rent is no longer drawn from them? In a word, is acquired wealth, in whatever form in might be or however it might have been acquired, no longer wealth because I cannot use it to plunder someone else? Who would want to create wealth? All those who want to be rich! Who will save their money? All those who want to live the next day on the work of the day before. What motivation will there be to establish capital? The incentive of owning 10,000 francs when you have produced 10,000 francs, of owning 100,000 when you have produced 100,000 and so on.
You say, "The law will rob us of the prospect of acquiring a certain amount of property since it will forbid us from obtaining any advantage from it." On the contrary, the law will ensure for all the prospect of acquiring as much wealth as they have produced by working, at the same time forbidding everyone from plundering his neighbor of the fruit of his labor and requiring that services exchanged should be of equal value: use for use and property for property. "It will destroy," you add, "both the incentive to save in the present and the hope of rest in the future. Even though we may drop from exhaustion, we will have to abandon the thought of handing a small inheritance down to our sons and daughters since modern economic science makes it sterile, since we will become exploiters of men if we lend at interest." Quite the contrary, the abolition of interest on capital will regenerate in you the incentive to save today and will ensure you the hope of rest in the future, since it prevents you, the workers, from being dispossessed, through the payment of rent, of the greater part of the fruit of your work and, also making you spend only the exact sum that you have earned, it makes saving even more essential for all, whether rich or poor. Not only will you be able to hand down to your sons and daughters a small inheritance, without becoming exploiters of men, but you will obtain it now with much less effort. This is because at present if you earn 10 francs a day and spend 5, the other 5 are taken from you by all the forms of rent and interest on capital and then after forty years of backbreaking work, you are left with not one obole to leave to your children. 1666 Once rent has been abolished, however, you will have more than 60,000 francs to leave to them.
All the economic sophisms 1667 relating to interest on capital insist, exclusively, that the question should be discussed from just one aspect rather than from its two related sides. They show quite admirably that the lending of something of value is a service, a means of work and production for the borrower, but forget to show that the value given in return is also a service, a means of work and production of precisely the same kind for the lender, and that since the use of the same service balances out in the same period of time, interest on capital is an absurdity as much as it is plunder. 1668 They trumpet the benefits of saving which, when multiplied indefinitely by rent, produce scandalous opulence for a few idlers, but forget that these benefits, taken by someone who does nothing from someone who works, lead to the dreadful poverty of the masses, from whom their subsistence is often taken and always at least their savings, their leisure, and the opportunity of leaving something to their children. At great expense the need for capital formation is proclaimed, and nobody sees that interest restricts this formation to an almost imperceptible number of people, whereas the abolition of rent would summon to it everyone without exception, and capital would increase to an extent that would be all the greater in that each person would have to use the interest abolished to increase the value of the capital formation. "To say that interest will be eliminated is therefore to say that there will be one more incentive to save, to deprive yourself, and to build up new capital while maintaining the capital that already exists," 1669 first of all, since any wealth acquired will always remain wealth, and secondly since each person will always be able to enrich himself to the exact extent of his work and savings, then nobody will be encouraged by excessive opulence or poverty to indulge in dissipation or improvidence. Finally, since everyone will live no longer on interest, but on the stock of capital, it will be essential for the level of capital to compensate for the amount of rent abolished.
Everyone knows that zero, although in itself without intrinsic or absolute value, nevertheless has service and use value in the calculation or multiplication of numerical values, since each number grows by ten depending on the number of zeros that follow it. To say that the natural and true rate of interest is zero is therefore simply to say that use can be exchanged only for use and never for ownership. In the same way as a pair of stockings is paid for at its value, maybe 2 francs, for example, the use of something of value should be paid for with the use of something of an equal value for the same period of time. Doubtless this prevents the plunder of property by property, but it certainly does not make it toothless.
You want the savings that makes possible the establishment of capital. Then abolish the rent that takes away the savings of workers, makes saving superfluous for the rich who will always find in revenue the wealth that they continue to spend, and impossible for the poor whose income never exceeds, if ever it equals, their subsistence needs. You want capital to be abundant? Then abolish the rent that prevents ninety-nine percent of workers from ever acquiring and retaining capital or wealth. You want the reconciliation of capital and labour? Then abolish the rent that makes the antagonism between these two entities eternal by destroying the equivalence and reciprocity of services and by leading to the exploitation of labor by capital so that, in a given period of time, labor pays capital 5 billion for the use of a single hundred sou coin, as we have shown above. You want harmony between the classes? Then abolish rent so that, with services constantly being exchanged for equal services of the same nature, each person will always remain the owner of the exact sum corresponding to his work, and thus it will no longer be possible for exploiters or the exploited, masters or slaves, to exist.
When this happens there will be security everywhere, because there will be no injustice anywhere. When this happens workers will be the first to make themselves the natural guardians of a society whose ruin they now plot to bring about because it is ensuring theirs. When this happens nobody will talk about the artificial organization of work because there will be a natural and genuine system of organization. 1670 When this happens social arrangements based on coercion will be rejected, because people will have social arrangements based on freedom. When this happens "class jealousy, ill-feeling, unfounded hatred, and unjustified mistrust" will disappear of their own accord, for the perfect equality of exchange, the unquestionable equivalence of services "will be able to be strictly and mathematically demonstrated" and the absolute justice it will consecrate "will be no less sublime because it will satisfy both intellect and sentiment."
As you see, Sir, I have followed step by step and I might say letter by letter, each of the examples and each of the demonstrations contained in your article entitled Capital and Rent , and it was enough for me to re-establish the distinction between use and ownership and thus avoid the ambiguity that separates us to conclude from your own thoughts and words that rent should be abolished. It is not my letter but your work itself that contains this conclusion from the very first line to the last. I have therefore merely reproduced it, often literally and by changing just the terms that have given rise to this unfortunate ambiguity. This refutation comes not from me but from you. How then can you deny your own witness?
It is the very principle of rent that you wished to justify. Your task was limited to that.
It is the very principle of the abolition of rent that I think I have mathematically demonstrated, using your own words. My work also has to be limited to that.
I have stopped where you yourself judged it necessary to stop.
Once the question of principle has been settled, if it should happen, and please God that it does, that you acknowledge as of right the injustice and illegitimacy of interest, probably all that would remain is to deal with the question of its application.
I do not want to jump to conclusions here, since it clearly steps outside the circle you yourself have drawn. However, a few words would perhaps be of some use in demonstrating not just the possibility but also the practicality of abolishing rent through freedom alone, even before the law sanctions it. Basically the entire problem can be reduced to this: Give the workers the means of acquiring, either by installments or by any other means, ownership of all the things the value of which they have to pay for eternally, in the form of interest, hire costs, farm rent, or leases, just in order to have their use . Now, these means are available.
Indeed, just suppose, and this fact is no longer a supposition but a work that is now in the full process of execution, 1671 that a kind of private bank is set up in order to issue notes that associations of workers in all the essential jobs undertake to accept for a fifth, for example, of all the purchases that will be made from them. Suppose that these notes, exchanged for cash by all those men who wish interest to be abolished and who find an immediate acceptance for them in the workers associations, generated a sum which was enough to build houses where rent would be abolished, and where the rental payments would always yield the right to an equal claim against the total value of the property itself, which would thus be acquired over twenty-five years simply by the paying of the installments.
Suppose that the operation continues in this way indefinitely through the issue either of old or new notes and that it includes, not only houses, but also all the tools for production and land, where the cost of hire and farm rental would reimburse the value of the property itself in the same way. Now we would have abolished rent in all its forms; not only for the capital on which this bank operates, which of necessity will reach a colossal figure, but very shortly for all the others, which according to the inexorable law of competition will fall to the same level, that is to say to the simple exchange of equal values for equal values, with no interest or rent paid on either side.
I will pass over the details in the interest of brevity and content myself by summarizing in two words the basic principle of its operation. You are too familiar with all the economic ideas involved, Sir, not to grasp instantly the result of this mechanism, which is simple anyway. It is enough for you to be able to see at a glance how it is possible, even perhaps easy, to kill off rent through the abolition of rent and the interest on capital by the removal of this interest, and so to lead freely, peacefully, and with no upheaval to the day when loans, hire, farm, or other rents will merely be among the forms of exchange of which they are now a monstrous deviation, and when your own principles are realized in the full richness of their truth: the principles of mutuality, reciprocity, and the equivalence of services.
Once the principle of the means of application is set out, vary its forms, elements, conditions, and mechanisms, simplify and perfect its basis, extend its action and make it universal, replace freely and everywhere t he symbol of exchange that cannot allow interest with that of money, rid the circulation of capital of its unproductive aspects, create the solidarity of labour voluntarily; in a word, reproduce this scheme for the abolition of rent in all its possible forms: there is the domain of freedom. It is enough to show that the practical means exist; leave man's genius to act and you will see whether he is capable of making use of it or not.
Be that as it may, and disregarding any views on the practical means, equality and justice do not remain any less than what they always are, truth is not less truth, and the interest on capital, illegitimate in law, absurd and monstrous in principle, and plunder in fact, is anathema to all upright men, the curse of oppressed races, and the just indignation of whomsoever has a generous spirit of sympathy for those who suffer and weep. It is in this respect, Sir, that I condemn it to your critical blows, convinced that after having viewed it afresh in its hideous iniquity, you will find no nobler a task than to devote your talent, which is remarkably lively, lucid, picturesque, and incisive, to combating this scourge, the source of all the indescribable poverty to which the world is prey.
Allow me therefore to end this over-long epistle with the following words taken from your article which are like the stepping stone and preamble to the great work of rehabilitation to which equality, justice, and the love of the people inclines you: 1672
Here are two men. One works from morning to night, from one end of the year to the next and, if he has consumed everything he has earned, perhaps out of absolute necessity, he will remain poor. On New Year's Eve, he will be no further forward than he was on the previous New Year's Day, and his only prospect is to start all over again. The other man does not use either his hands or his brain, at least, if he does so it is for pleasure; he has the option to do nothing because he receives rent . He does not work, and yet he lives well, having everything in abundance -- fine food, sumptuous furniture, and elegant clothes. This means that every day he uses up things that workers have had to produce by the sweat of their brow, for these things are not made by themselves and, as for him, he has not turned his hands to them. It is we, the workers, who have caused this wheat to germinate, varnished this furniture, and woven these carpets; it is our wives and daughters who have woven, cut out, sewn, and embroidered these fabrics. We therefore work both for him and for us; for him in the first instance and for ourselves if anything is left over.
But here is something more striking: if the first of these two men, the worker, consumes all that has been left to him by way of profit during the year, he is therefore always at the starting point and his fate condemns him to turning endlessly in an eternal, monotonous circle of fatigue. Work is thus paid for just once. However, if the second man, the man of independent means, consumes his annual rent during the year, the following year, and the years following that for all eternity, he will have a revenue that is always the same, always inexhaustible, and perpetual . Capital is thus remunerated not once or twice, but an innumerable number of times! This means that, a hundred years later, the family that has invested 20,000 francs at 5 percent will have received 100,000 francs and this will not stop it receiving another 100,000 in the succeeding century. In other words, for 20,000 francs' worth of its own work, in two centuries the family will deduct ten times that sum from other people's work.
Is there not a monstrous vice that needs to be reformed in this type of social order?
This is still not all. If this family is willing to restrict its expenditure a little and, for example, spend only 900 francs instead of 1,000, with no work or trouble other than that of investing 100 francs per year, it can increase its Capital and its Rent to an extent that is so rapid that it will soon be in a position to consume as much as one hundred hard-working families of the toiling workers.
Does this not show that current society carries a hideous cancer within it, 1673 which has to be cut out even if this risks a little temporary suffering?
It is this hideous cancer that you, Sir, will help us to cut out. You want freedom of exchange; you should therefore want EQUALITY as well in order that fraternity , by crowning them both, will bring about the reign of justice, peace, and universal understanding over the world.
F. Chevé.
Proudhon's Preface to Bastiat's First Letter 1674P ARIS , November 12, 1849.
We publish to-day a first article by M. Frederic Bastiat, a representative of the people, and one of the most distinguished economists of our country, upon the great question of the day, Interest or Rent of capital. We do for M. Bastiat, we will do for any serious economist who will honor us with his criticisms, a thing hitherto unknown in the annals of journalism. We open our columns to our opponent, we publish his article entire, we make no comment upon it, in order not to influence the judgment of our readers, and to equalize the advantages of the controversy between our antagonist and ourselves. It will not be our fault if the question of Interest , which, in the economic order, constitutes the whole object of the socialistic protest of the nineteenth century, is not discussed seriously before the country and before Europe, and probably ere long decided. When the writer's pen is able to effect or avert a revolution, what need of paving stones and bayonets? The abundance and multiplicity of our tasks not permitting us to reply to M. Bastiat to-morrow, we postpone our answer till next Monday, November 19, thus leaving our readers for a week under the influence of the arguments of our adversary.
Letter No. 2: F. Bastiat to the Editor (12 November 1849)F. Bastiat
To the Editor of La Voix du Peuple
The use of an item of property constitutes a value. - Any value may be exchanged for another. - The productivity of CAPITAL. - Its contribution is not paid for at the expense of LABOR. - This payment is not exclusively linked to the conditions of the LOAN.
12 November 1849
The extreme enthusiasm with which the people in France have begun to examine economic problems and the scarcely credible indifference of the well-to-do classes 1675 with regard to these problems is one of the most characteristic traits of our era. While the longstanding journals, at once the voice and the mirror of upright society, stick to antagonistic and sterile party politics, the papers intended for the working classes are constantly turning over what might be labeled the fundamental question, that of "the social question." Unfortunately, I very much fear that they will lose their way as soon as they step out along this path. But can things be otherwise? At least they have the merit of seeking truth. Sooner or later they will be rewarded with its actual possession.
Since you, Sir, are willing to allow me the use of the columns of La Voix du Peuple , I will set the following two questions before your readers and endeavor to answer them:
1. Is interest on capital legitimate?
2. Is it exacted at the expense of labor and the workers?
We differ as to the solution, but there is one point on which we are certainly in agreement which is that (apart from religious problems), there are no more important questions which the human mind can confront.
If it is I who am mistaken, if (self) interest is an excessive tax levied by capital on all consumer products, I will have to criticise myself for having, through my arguments, unwittingly underpinned the oldest, most dreadful, and most universal abuse ever dreamed up by the spirit of plunder, an abuse to which in terms of the universality of its results, neither the systematic pillage of warlike nations, nor slavery, nor the despotism of the priests can be compared. 1676 This would mean that a deplorable error in economics had turned the democratic flame I feel burning in my heart, against democracy. 1677
However, if the error is on your side, if interest is not only natural, just, and legitimate, but also useful and profitable, even to those who pay it, you will agree that, in spite of your good intentions, your propaganda can only bring about immense harm. It leads workers to believe that they are the victims of an injustice, one which in fact does not exist, and to take for harmful something that is good. It sows discontent in one class of people and terror in another. It prevents those who are suffering from finding the true cause of their suffering by sending them down the wrong path. It calls their attention to an alleged act of plunder, which stops them seeing and combating real acts of plunder. It makes men's minds familiar with the disastrous view that order, justice, and union 1678 can arise again only through a universal transformation (at once as hateful as it is impossible according to my theory) of the entire system within which work and trade have been carried out since the dawn of time.
There can therefore be no more important question. I will take it up at the point where you left it.
Yes, Sir, you are right. As you say, we are separated only by a certain ambiguity concerning the words "use" and "ownership." However, this ambiguity is enough for you to believe you should stride out with the utmost confidence to the West while my beliefs propel me toward the East. Between us, at the point of departure, the distance is imperceptible, but it loses no time in becoming an immeasurable abyss.
The first thing to do is to retrace our steps until we have found the place where we agree. This terrain, which is common to both of us, is the mutual exchange of services . 1679
I had said: 1680 He who lends a house, a sack of wheat, a plane, a coin, a ship, in short, an item of VALUE, for a fixed length of time is providing a service . Therefore, he should receive, in addition to the return of this item of value at the due date, an equivalent service . 1681 You agree that he ought, in effect, to receive something . This is a major step towards a solution, for this something is what I call INTEREST.
Let us see, Sir, Do we agree on this starting point? For the whole of 1849, you lend me 1,000 francs in écus 1682 or some tool or implement estimated to be worth 1,000 francs a year, or a supply of something worth 1,000 francs, or a house whose annual rental is 1,000 francs. It is in 1849 1683 that I will receive all the advantages that this item of value , created by your work and not mine, can provide. It is in 1849 that you will, voluntarily and in my favor, deprive yourself of these advantages, which you might most legitimately retain for yourself. For us to be all square, for the services to be equivalent and reciprocal, and (or justice to be satisfied, would it be enough for me to return your écus, your tool, your wheat, or your house on the first day of 1850? Be careful, for if this is the case, I warn you that the part I would like to play in these kinds of transactions is that of the borrower: this role is convenient and totally profitable; it enables me to be housed and provided for right through my lifetime at the expense of others, on condition, however, that I find a lender, which, under this system, will be no easy task, for who will build houses to rent them gratis and be content just with simply returning them at the end of the loan period?
So, this is not what you are putting forward. You acknowledge (and this is what I want to establish clearly) that the man who has lent a house or any other item of value has provided a service , which is not repaid by the simple handing back of the keys at the end of the loan period or by the simple repayment (of the loan) at the due date. There is therefore, in your view as well as mine, something to be agreed upon in addition to the return of the item. We may fail to agree on the nature and name of this something, but something is due by the borrower. And since you accept, on the one hand, the mutual exchange of services since, on the other hand you admit that the lender has provided a service , allow me for the moment to call this thing due by the borrower a service .
Well, Sir, I think that the question has made a step and even a major step forward for this is where we are now.
According to your theory, as well as according to mine, the agreement between the lender and borrower that stipulates the following is perfectly legitimate:
1. The full return, at the due date, of the object lent;
2. A service to be provided by the borrower to the lender as compensation for the service he, the borrower, has received.
Now, what will the nature and name of this service due by the borrower be? I do not attach the scientific importance that you do to these matters. In each particular instance, they may be left to the parties to the agreement themselves. It is really their business to negotiate the nature and equivalence of the services to be exchanged as well as their specific names. Science stops when it has shown their cause, origin, and legitimacy. The borrower will pay in wheat, wine, shoes, or labor, depending on his situation. In most cases, and purely as a matter of convenience, he will pay in money, and as you acquire money only through work, it may be said that he pays with his work. Why do you forbid me to call this payment, that is just and legitimate according to you yourself, house rent, farm rent, installments, ground-rent, loan payments, or interest , depending on the circumstances?
But let us move on to the ambiguity that separates us: the alleged confusion, according to you, that I make between use and ownership , between the loan of an item and its complete transfer (of ownership).
You say: He who borrows a piece of property or an item of value and who is required to return it in full at the due date, has only been given in the end the use (of it). What he owes is not an item of property or an item of value, but the use of an equivalent item of property or item of value. To call these two things of quite different natures which have no possible equivalence , the same thing, is to destroy the mutual exchange of services .
To go to the root of the objection, I would have to turn upside down the entire foundation of social economy. 1684 You cannot expect such a project from me but I will ask you whether, according to you, the use of an item of value is not itself something of value . Can it not be evaluated ? According to what rule or principle do you prevent two parties to an agreement from comparing the use of something to a sum of money or an amount of labor, and trading on this basis if this suits them? You lend me a house worth 20,000 francs and in doing so, you provide me with a service. Do you mean that, in spite of my agreement and yours, I can pay you for this, in the name of science, only by lending you also a house of the same value? That is absurd, for if we all had houses each of us would stay in our own, and what would be the reason for making the loan? If you go so far as to claim that the mutuality of services implies that the two services exchanged have to be not only equal in value but also identical in nature , you eliminate the exchange as well as the loan. A hat maker will have to say to his customer: "What I am selling you is not money but a hat; what you owe me is a hat and not money."
If you acknowledge that services may be evaluated and exchanged precisely because they differ in nature, you will have to agree that the handing over of a use that is a service may very legitimately be valued in terms of wheat, money, or labor. Take care here, because although your theory clearly accepts the principle of interest, it tends to do nothing less than to make all transactions immobile.
You are not reforming (society). You are paralysing it.
I am a shoemaker. My trade has to provide me with a livelihood, but in order to exercise it I have to be housed and I have no house. On the one hand you have devoted your work to building one, but you do not know how to make your shoes, nor do you want to go barefoot. We might come to an agreement: you will provide me with a house and I will provide you with shoes. I will benefit from your work just as you will from mine; we will provide each other with a reciprocal service. All we need to do is to reach a fair evaluation, a genuine equivalence, and I cannot think of any other way to do this than by free negotiation.
And if under the pretext that a physical object is being transferred there is only the transfer of the use of something, the theory will tell us: "This transaction cannot take place; it is illegitimate, excessive, and an act of plunder. It involves two services which have no possible equivalence and you have neither the ability to evaluate them nor the right to exchange them"!
Do you not see, Sir, that a theory like this deals a deathblow to trade and freedom at a stroke? What authority is there, then, which can come and abolish our joint and free agreement? Is it the law? Is it the State? But I, for my part, thought that we made the law and that we paid the State to protect our rights, and not to destroy them.
So a short time ago, we were in agreement on this point that the borrower owes something in addition to just returning it. Let us agree now on this other point, that this something can be evaluated and consequently paid as it suits the parties to the agreement in any form that its value may assume.
It follows that, at the due date, the lender should recover:
1. The full value lent;
2. The value of the service provided by the loan.
I have no need to repeat here how the complete return of the object lent of necessity implies the perpetuity of the interest.
Let us now examine briefly this second question:
Is the interest on capital levied at the expense of labor?
You know as well as I do, Sir, that we would be putting forward a very limited idea of interest if we supposed that it appears only when a loan is involved. Whoever contributes capital to the creation of a product intends to be paid not only for his work, but also for his capital, in such a way that interest is one element in the price of all items which are consumed.
Perhaps it is not enough to demonstrate the legitimacy of interest to men who have no capital. They would doubtless be tempted to say: "Since interest is legitimate, we have to be subjected to it, but it is a great misfortune, for without it we would obtain everything more cheaply."
This complaint is totally erroneous; what enables human satisfactions to come ever closer to being free of charge and common to all is the intervention of capital. Capital is the democratic, philanthropic, and egalitarian power par excellence. For this reason, the man who will explain how it functions will provide the most important service to society, for he will put an end to this antagonism between classes, which is just based on error.
It is impossible for me to deal with the theory of capital 1685 in a journal article. I have to limit myself to indicating my line of thought through an example, an anecdote, or a hypothesis that typifies all human transactions. 1686
Let us go back to the beginning of the human race at the time when we can suppose that no capital existed. What then was the value, measured in terms of work, of an object of any sort, such as a pair of stockings, a sack of wheat, an item of furniture, a book, etc.; in other words, at what price (in terms of labour) (would) these things have been purchased? I am not afraid to say that the answer lies in this single word: Infinity . Objects like this were then completely unavailable to the human race.
Let us take the case of a pair of cotton stockings. No man would have managed to produce them in either a hundred or a thousand days of work.
How is it that today in France there is no worker so unfortunate that he cannot obtain a pair of cotton stockings with what he earns from a day's work? 1687 It is precisely because capital contributes to the creation of this product. The human race has invented tools which force nature to provide a contribution that is free .
It is very true that when the price of this pair of stockings is broken down you will find quite a considerable part of this price that relates to capital. The squatter 1688 who clears the land in Carolina certainly has to be paid, the sail that drives the ship from New York to Le Havre has to be paid for, and the machine that turns ten thousand spindles has to be paid for. But it is precisely because we pay for these tools that they cause nature to contribute and they substitute nature's share that is free of cost for labour's share that incurs a cost . If we eliminated successively this series of interest payments that have to be paid, we would, by this very act, eliminate the tools and the contribution of nature that they put to work; in a word, we would return to the the beginning (of the human race), to the time when a thousand days of work would not have been enough to acquire a pair of stockings. This is true for all other things.
You think that interest is levied by someone who does nothing on someone who works . Oh, Sir, before making this sorry and irritating assertion a second time before the public, examine its very basis. Ask what this assertion contains and you will ascertain that it contains just errors and angry rants. You quote my fable on the Plane; allow me to return to it. 1689
Here is a man who wants to make planks. 1690 He will not succeed in making one in a year, for he just has two hands. I lend him a saw and a plane, two tools, do not forget, that are the fruit of my work and which I might use for myself. Instead of one plank, he makes a hundred of them and gives me five. By depriving myself of my belongings, I have thus made it possible for him to have ninety-five planks instead of one and here you are, saying that I am oppressing and robbing him! What! With my saw and a plane that I have created with the sweat of my brow, a one hundred-fold increase in production out of nothing (so to speak), and society is able to enjoy a one hundred fold increase in their use; a worker who was unable to make a single plank has made one hundred of them, and because he freely and voluntarily gives me one twentieth of this surplus , you make me out to be a tyrant and a thief! The worker will see his work bear fruit, the human race will see the range of its satisfactions increase, and I, who am the author of these results, am the only person in the world who will be forbidden to be part of this, even with universal consent!
No, no, this cannot be so. Your theory is as contrary to justice, general utility, and the self interest even of the workers as it is to the experience everywhere down through the ages. Allow me to add that it is no less contrary to the reconciliation of the classes, the union of hearts, and the achievement of human fraternity, which is greater than justice but which cannot do without justice.
FRÉDÉRIC BASTIAT
Letter No. 3: P. J. Proudhon to F. Bastiat (19 November 1849)Disavowal of the distinction introduced by Mr. Chevé. -Belief in the slogan: A loan is a service; a service is an item of value. - Paradox. - The lender does not deprive himself. - The necessity of organizing free credit. - Categorical questions.
19 November 1849
The aim of the February Revolution, both politically and economically is to establish the absolute freedom of men and citizens.
The way this Revolution works politically is via the establishment of universal suffrage or in other words the absorption of political power in society; economically, it happens via the social organisation of money and credit, again working through absorption, this time by the workers absorbing the function of the capitalists.
Doubtless, this procedure on its own does not provide a complete understanding of the system; it is just its point of departure, its aphorism . But it is enough to explain the Revolution directly and as it is; it consequently permits us to say that the Revolution is not and cannot be anything other than this.
Everything that tends to advance the Revolution as it is thus understood, everything, from wherever it comes, that encourages its development, is essentially revolutionary and we classify it under the heading of Movement .
Everything that opposes the application of this idea, everything that denies or hinders it, whether it is the result of demagogy or absolutism, we call Resistance . If the author of this resistance is the government, or if such resistance acts with the connivance of the government, it becomes Reaction .
Resistance is legitimate when it is in good faith and when it is carried out within the limits of republican freedom; which is merely the recognition of freedom of inquiry, and the consequence of universal suffrage. Reaction, on the other hand, is an infringement of freedom, as it tends to suppress the expression of ideas violently in the name of public authority and in the interests of one party; if it is expressed through laws of exile, deportation, transportation, etc., 1691 it becomes a crime against the sovereignty of the people. Such ostracism is the suicide of republics.
When we gave an account in La Voix du Peuple of the project put forward by Mr. de Girardin to impose a tax on capital, 1692 we had no hesitation in seeing in this one of the boldest manifestations of the revolutionary idea, and although the author of this project was and perhaps still is attached to the Orléans dynasty, 1693 although his personal tendencies make him a man who is eminently on the side of the government, and finally even though he has consistently sided with the "Party of Order" 1694 against the Revolutionary party, we nevertheless think that his idea is part of the movement. For this reason, we have claimed it as our own and if Mr. de Girardin were ever to abandon his own thought, we would take it over as an underpinning of our work and make it one more argument against the adversaries of the Revolution.
It is in line with this elevated and so to say, impersonal rule of criticism that we will be replying to Mr. Bastiat.
Mr. Bastiat, contrary to Mr. de Girardin, is a writer totally imbued with the democratic spirit; if we cannot yet say of him that he is a socialist, he is certainly already more than a philanthropist. The manner with which he understands and sets out political economy places him, together with Mr. Blanqui, 1695 if not very much above, at least very much ahead of other economists who are faithful and unshakeable disciples of Mr. Jean-Baptist Say. In a word, Mr. Bastiat is devoted body and soul to the Republic, to freedom, to equality, and to progress; he has proved this on many occasions brilliantly through the way he has voted in the National Assembly.
In spite of the fact that we include Mr. Bastiat among the party of Resistance, his theory of capital and interest is diametrically opposed to the most authentic trends and the most pressing needs of the Revolution; and this leads us to formulate an important principle. We hope that our readers, following our example, will always be able to distinguish between personalities and principles! Both discussion and charity would be improved by this.
Mr. Bastiat starts his reply with an observation whose accuracy is striking and which we consider to be all the more relevant to recall as it hits straight back at him:
"The extreme enthusiasm," says Mr Bastiat, "with which the people in France have begun to examine economic problems and the scarcely credible indifference of the well-to-do classes with regard to these problems is one of the most characteristic traits of our era. While the longstanding journals, at once the tools and the reflection of upright society, stick to antagonistic and sterile party politics, the papers intended for the working classes are constantly turning over what might be labeled the fundamental or social questions."
Well then! We will say to Mr. Bastiat, the following: You yourself are, unsuspectingly, an example of this scarcely credible indifference with which men of the well-to-do class examine social problems and first-rate economist though you may well call yourself, you are totally ignorant of the current state of the question of capital and interest whose defense you have taken upon yourself. For this reason, as behind the times in ideas as you are in facts, you express yourself to us exactly as would a rentier 1696 before '89. Socialism, which for the last ten years has been protesting against capital and interest, is totally unknown to you; 1697 you have not read its theses, for if you had read them, how could it be that when you prepare to refute socialism, you pass over the whole socialist case in silence?
Truly, when we see you arguing against the socialism of our age, we might take you for an Epimenides waking up with a start after eighty years of sleep. 1698 Is it really to us that you are addressing your patriarchal dissertations? Is it the proletarian of 1849 that you wish to persuade? Then start by examining his ideas; put yourself in his shoes in the current debate. Address the reasons, whether true or false, that drive him and do not give him yours, with which he has been perfectly familiar since time began. Perhaps you may be surprised to hear it said that when you, a member of the Academy of Moral and Political Science, 1699 talk of capital and interest, you are no longer familiar with the subject! This is, nevertheless, what we are now endeavoring to prove to you. After this, we will go back to the question itself if you so wish.
First of all, we deny, and you know this only too well, we deny, in line with Christianity and the Gospel, the intrinsic legitimacy of loans bearing interest; we deny this in line with Judaism and paganism, with all the philosophers and lawmakers of antiquity. For you will note this initial fact, which is valuable in itself, usury 1700 had no sooner appeared on this earth than it was repudiated. Lawmakers and moralists have never ceased to combat it and, if they have not succeeded in eliminating it, at least they have succeeded to a certain point in clipping its wings by setting a limit or a legal rate on interest.
This is therefore our initial proposition, the only one, apparently, that you have heard of: When a loan is paid back, everything that is given over and above the loan is usury and plunder: Quodcumque sorti accedit, usura est . 1701
However, what you do not know and which perhaps will surprise you is that this fundamental denial of interest, in our view, does not destroy the principle or the right, if you wish, that gives rise to interest and which, in spite of the condemnations of both secular and ecclesiastic authorities, has kept it alive to the present day; the true problem for us is not to establish whether usury in itself is illicit (in this respect, we share the opinion of the Church) or if there is a reason for its existence (in this respect, we share the opinion of the economists). The problem is to establish how the abuse might be eliminated without infringing the right; how, in a word, we might escape from from this contradiction.
Let us explain this better, if we can.
On the one hand, it is very true, as you yourself establish from the start, that a loan is a service . And, since every service has a value and since it is part of the nature of a service to be paid for, it follows that a loan ought to have its price , or, to use the technical term, it should bear interest .
However, it is also true, and this truth exists alongside the preceding one, that the person who makes a loan in accordance with the standard conditions governing the profession of lending, does not deprive himself of the capital he lends, as you say he does. On the contrary, he lends it precisely because this loan is not a hardship for him. He lends it because he has no use of it for himself as he already has enough capital for himself. In the end, he lends it because he has no intention, nor is it in his power, to add value to it personally and because, by keeping it in his own hands, this capital that is sterile by nature will remain sterile, whereas by being lent and through the interest that results, it will produce a profit which will enable a capitalist to live without working. Well, living without working is, both from the standpoint of political economy and morality, a contradictory proposition and hence impossible.
Can a landowner who has two estates, one in Tours, the other in Orléans, and who is obliged to establish residence in the one he is working and consequently abandon the other, say that he is depriving himself of anything because he, unlike God, does not possess ubiquity of action and domicile? We might just as well say that we are deprived of residence in New York because we live in Paris. Would you not agree, therefore, that the deprivation of a capitalist is like the deprivation of a master who has lost his slave, like the deprivation of a prince deposed by his subjects, or like the deprivation of a thief who, on wishing to climb into a house, finds dogs on the lookout and its inhabitants at the window?
Well, faced with this statement and this denial that are diametrically opposed, each of which is supported by reasons of equal value but which do not answer each other and cannot mutually bring each other down, what position are we to adopt? You persist in your statement and say: "Do you not wish to pay me interest? So be it! I do not wish to lend you my capital. Try working without capital!" For our part, we persist in our denial and say: "We will not pay you interest because interest, in social economy, is the price of idleness, the basic cause of the inequality of wealth, but also of poverty." As neither of us is prepared to yield, we are reduced to immobility.
This, therefore, is the point at which socialism takes up the question. On the one hand there is the commutative justice of interest, and on the other the organic impossibility and immorality of this same concept of interest. And let us tell you from the start, socialism does not have the pretension of converting anyone, whether it is the Church, which opposes interest, or political economy, which supports it, especially since socialism is convinced that both are right. Here is how it analyses the problem and what it, in turn, proposes, rising over the arguments of the old lenders, whose interest is too strong for their word to be believed, and the declarations of the Fathers of the Church, that have remained dead letters.
Since the theory of usury has succeeded in winning over Christian customs and pagan usage, since the hypothesis or the fiction of the productivity of capital has entered into the practices of nations, let us accept this economic fiction as we have, for the last thirty-three years, accepted the fiction of constitutionalism, and let us see what this fiction is capable of producing when taken to its full conclusion. Instead of rejecting the idea of the productivity of capital purely and simply as the Church has done, a position which could never lead to anything, let us make a historic and philosophical deduction from it, and since the word is more than ever in fashion let us describe the revolution this idea has undergone. After all, the idea has to correspond to something real; it has to indicate some need of the commercial mind for nations never to have hesitated to sacrifice their most lively and sacred beliefs to it.
This, therefore, is how socialism, totally convinced of the inadequacy of both the economic theory and the ecclesiastical doctrine, in turn deals with the question of usury.
First of all, it observes that the principle of the productivity of capital is no respecter of persons and does not create a privilege. This principle is true of any capitalist, with no distinction of title or dignity. What is good for Pierre is good for Paul: each has the same right to usury as he has to work. When, therefore, and I return here to the example that you used, you lend me, in exchange for interest, the plane you manufactured to smooth your planks, if for my part I lend you the saw I have assembled to cut my tree stumps into lengths, I would equally have the right to interest. The rights of capital are the same for all; all individuals, to the extent of their benefits 1702 and loans, will necessarily collect and pay interest. This is the initial consequence of your theory, which would not be a theory without the generality and reciprocity of the right it creates. This is intuitively and immediately obvious.
Let us suppose, therefore, that of all the capital I employ, either in the form of working tools or of raw material, half is lent to me by you. At the same time, let us suppose that of all the capital you put into operation, half of it is lent to you by me; it is clear that the interest that we have to pay each other mutually will cancel out, and if on both sides the capital put forward is equal and the interest payments balance, the remainder, or debt, will be nil. 1703
In society, doubtless, things do not happen exactly like this. The benefits that producers provide to each other are far from being equal and on this basis the interest they have to pay each other are not equal either. This leads to the inequality of condition and wealth.
But the question is to establish whether there is a equilibrium in the benefits provided by capital, work, and talent; consequently whether the equality of income for all citizens, which is perfectly admissible in theory, can be achieved in practice; whether society is tending toward this result; and finally whether against all expectations this is not the fatal conclusion of the theory of usury itself.
Well, this is what socialism states now that it has succeeded in understanding itself, in this case no longer seeing any difference between itself and an economic science which it has examined both through the experience it has acquired and the power of its deductions. In fact, what do the history of civilization and the history of political economy tell us about this major question of interest?
It is that the mutual provision of benefits, whether material or non-material, by means of capital increasingly tend to reach equilibrium for a variety of reasons which we list below, and which the most backward of economists cannot fail to recognize:
1. The division of labour, or the specialisation of industry, which, as it infinitely increases the scale of its tools and machinery and its raw materials, increases the lending of capital to the same extent;
2. The accumulation of capital, which results from the variety of industries and whose effect is to produce competition between capitalists similar to that between merchants, and consequently to produce, imperceptibly, a decrease in the cost of capital and a reduction in the rate of interest;
3. The ever-increasing facility with which capital circulates, by means of cash and bills of exchange;
4. Finally, public security.
These are the general causes that, for centuries past, have led to a reciprocity of benefits which are increasingly in equilibrium between producers, followed by an increasingly equal compensation in the rate of interest, and a constant decrease in the cost of capital.
These facts cannot be denied; you acknowledge them yourself. The only thing is that you do not understand the principle behind them or their significance when you credit capital with the progress achieved in the domain of industry and wealth, when in reality the cause of this progress is not capital but the CIRCULATION of capital. 1704
With the facts analyzed and classified in this way, socialism asks itself whether, in order to stimulate this equilibrium between credit and income, it might not be possible to act directly, not on capital, and note this clearly, but on its circulation; whether it might not be possible to organize this circulation so as to produce simultaneously between capitalists and producers, two entities currently in opposition to one another, but which theory shows ought to be synonymous, the equivalence of benefits, that is to say, the equality of wealth.
To this question socialism also gives this answer: Yes, that is possible, and it can happen in several ways.
First of all, in order to remain within the present situation of credit, which is carried out on the basis of cash, let us suppose that all the producers in the Republic, more than ten million of them, each pays a sum that represents only one percent of their capital. This payment of one percent of the entire fixed and moveable capital of the country would constitute an amount of ONE BILLION francs.
Let us suppose that with the help of this sum a bank was founded to compete with the mis-named Bank of France, 1705 one which discounts and makes loans for mortgages at half of one percent.
It is obvious, in the first place, that if the discount on commercial paper were at half of one percent, the loan on mortgages also at half of one percent, and loans to business firms too kept at half of one percent, 1706 money capital in the hands of all usurers and moneylenders would immediately become totally unproductive; interest would be nil, and credit would be free.
If commercial and mortgage credit, in other words, capital in cash, the capital whose sole function is to circulate, were free, capital in business firms would soon become free as well. Business firms would no longer be capital in reality, they would become goods priced on the Stock Exchange like spirits and cheeses, and rented or sold, two terms that in these circumstances would become synonymous, at COST.
If capital in firms were free in the same way as money capital, which is the same as saying that if the use of it were paid as an exchange and not as a loan, the capital in the form of land would soon in turn become free, that is to say, that farm rent, instead of being the payment made to the owner who did not operate the land, would be the compensation for the difference in value between products from high quality or lower quality land or, to express it better, there would no longer in real terms be any tenants or landowners but just farmers and wine producers, just as there are joiners and mechanics.
Do you want another proof of the possibility of making all forms of capital free by developing economic institutions?
Let us suppose that, instead of this system of taxation that is so complicated, burdensome, and vexatious, bequeathed to us by the feudal nobility, a single tax 1707 was established, no longer on production, circulation, consumption, lodging etc. but, as justice demands and as economic science requires, on the net capital belonging to each individual. Capitalists, who will lose through tax as much or more than they gain through rent and interest, will be obliged either to produce something of economic value themselves or to sell: economic equilibrium would once more be re-established through this intervention by the Fisc (the tax authorities ) at once so simple, and what is more, inevitable.
This, in sum, is the theory of socialism with regard to capital and interest.
Not only do we state that, in accordance with this theory, which incidentally we share with economists, and given our faith in industrial development, that this is the trend and scope of lending at interest, in addition we prove, by citing the destructive consequences of today's economy and by making clear the causes of poverty, that this trend is necessary and the end of usury is inevitable.
In fact, since, as has been said, the cost of lending, the cost of capital, interest on money, in a word, usury, is an integral part of the cost of products, and since this usury is not equal for all, it follows that the price of products, composed as it is of wages and interest, cannot be paid by those who have only their wages and no interest with which to pay for it. The outcome is that because of usury, labor is condemned to unemployment and capital to bankruptcy.
This argument, one of the genre which mathematicians call reductio ad absurdum , which shows the organic impossibility of lending at interest, has been reproduced a hundred times in socialism. Why do economists not mention it?
Do you seriously wish to refute socialist ideas on lending at interest? These are the questions you will have to answer:
1. Is it true that if in outward appearance the benefits provided by capital is a service with a value that consequently ought to be paid for, in one's heart of hearts this benefit does not result in genuine deprivation for the capitalist, and consequently that it does not confer the right to demand something for the cost of the loan?
2. Is it true that, if it is to be above criticism, usury has to be equal, that the trend in society leads to this equalization, so that usury is beyond reproach only when it has become equal for all, that is to say, nil?
3. Is it true that a national bank that provides credit and discounts free of charge is possible?
4. Is it true that through the effect of this free credit and free discount, similar to that of taxation which has been simplified and restored to its true form, rent on property would disappear, together with interest on money?
5. Is it true that there is a contradiction and mathematical impossibility in the old system?
6. Is it true that, after having contradicted several thousand years of theology, philosophy and legislation on usury, political economy will achieve the same result through its own theory?
7. Finally, is it true that usury, as a providential institution, has merely been an instrument of equality and progress as absolutely as, in the realm of politics, the absolute monarchy has been an instrument of freedom and progress, and as, in the field of law, the ordeals of boiling water, dueling, and torture were in their turn instruments of belief and progress?
This is what our opponents will have to examine before they accuse us of scientific and intellectual weakness; these, Mr. Bastiat, are the points that your argument will have to address in the future if you wish it to prevail. The question is clearly and categorically set out; allow us to believe that, once you have read it, you will acknowledge that in nineteenth century socialism there is something that goes beyond the range of your outdated political economy.
P. J. PROUDHON
Letter No. 4: F. Bastiat to P. J. Proudhon (26 November 1849)The logical boundaries of the debate. Saying yes and no is not an answer. Futility of an objection based on the fact that a capitalist is not depriving himself of anything. The natural and essential productivity of CAPITAL demonstrated using examples. Considerations on leisure.
26 November 1849
Sir, you have asked me seven questions. Please remember that right now there is just one question between us:
Is interest on capital legitimate?
This is a very stormy question. It needs clearing up. In accepting the straightforward hospitality of your columns, my aim has not been to analyze all the possible combinations of credit that the fertile genius of socialists is capable of bringing forth. I have asked myself if interest, which forms part of the price of everything, is plunder, and if consequently the world is divided into capitalists who rob and workers who are robbed. I do not believe this, but others do. Depending on whether truth is on my side or theirs, the future reserved for our beloved country is one of peace or a bloody and inevitable conflict. For this reason, it is worth examining the question seriously.
Why are we not in agreement on this point of departure? Our work would be limited to eliminating disastrous errors and dangerous prejudices in the minds of the masses. We would show people that capital is not a greedy parasite but a friendly and fruitful power. We would show them capital, and here I am almost quoting you verbatim, being accumulated through activity, order, thrift, foresight, the division of labour, peace, and public security; capital being distributed as a result of freedom, among all classes; capital coming within reach of all as its payments become increasingly affordable; capital in short relieving humanity of the weight of fatigue and the yoke of need.
But how can we address different views of the social problem when your answer to this initial question: is interest on capital legitimate? is YES and NO?
YES, for "It is very true that a loan is a service and since every service has a value , consequently since it is part of the nature of a service to be paid for, it follows that a loan ought to have its price, it ought to bear interest ."
NO, for "Loans, through the interest they generate, produce a profit that enables capitalists to live without working. Now, living without working is, both in terms of political economy and in moral terms, a contradictory proposition, and thus something that is impossible."
YES, for "The fundamental denial of interest in our view does not destroy the principle or the right that gives rise to interest. The true problem for us is not to establish whether there is a reason for usury to exist, we share, in this respect, the opinion of the economists."
NO, for "Along with Christianity and the Gospels, we deny the intrinsic legitimacy of loans bearing interest."
YES, for "In its role as a providential institution, usury has been nothing more than an instrument serving both utility and progress."
NO, for "When a loan is repaid, everything paid back in addition to the loan is usury and plunder".
YES and NO finally, for "Socialism does not claim to convert anyone, neither the Church, which denies interest, nor political economy that supports it, and all the more since it is convinced that both of them are right."
Some people say that these contradictory solutions are an intellectual amusement with which Mr. Proudhon is indulging. Others say that these solutions have to be seen as pistol shots that Mr. Proudhon is firing in the street to bring the public to the windows. For my part, since I know that you apply them to all subjects: freedom, property, competition, machines, and religion, I hold them to be a sincere and serious application of your mind.
However, Sir, do you think that the people are able to follow you for any length of time in the labyrinth of your Antimonies ? 1708 Their genius has not been fashioned on the moth-eaten benches of the Sorbonne. The famous words " Quidquid dixeris, argumentabor " or " Ego vero contra, " "Whatever you say, I will contest" or "I will say the opposite," do not go down too well with them. The people want to get to the bottom of things and instinctively feel that at the bottom of things there is a Yes and a No but that there cannot be a Yes and a No that have been blended together. So as not to stray from the subject that we are considering, the people will tell you "Interest nevertheless has to be either legitimate or illegitimate, just or unjust, providential or satanic, property or plunder."
You may be certain that acceptance of contradiction is what is most difficult to achieve, even by subtle minds, and even more so by the people.
If I stop at the first half, and I venture to say at the good half of your thesis , how do you differ from the economists?
You agree that to advance capital is to provide a service , which gives the right to an equivalent service , which can be measured and is known as interest .
You agree that the only way to determine the equivalence of these two services is to allow them to be freely exchanged, since you reject State intervention and proclaim the freedom of men and citizens at the very start of your article.
You agree that, in its role as a providential institution, interest has been an instrument of equality and progress.
You agree that with the accumulation of capital (which certainly would not accumulate if it were denied any return). Interest tends to decrease thus making the tools of labour, raw materials, and supplies ever easier to obtain by an increasing number of classes.
You agree that the obstacles that hinder this desirable spread of capital are artificial and go by the names of privileges, restrictions, and monopolies; that they cannot be the inevitable consequences of freedom, since you appeal to freedom.
This is a doctrine that, by its simplicity, grandeur, consistency, and the sense of justice that it encapsulates, becomes part of our beliefs, wins over our hearts, and permeates the depths of the mind with the feeling of certitude. Why, then, are you cricitising political economy? Is it that it has rejected the various slogans of socialism, and consequently refused to take the name itself? 1709 Yes, it has fought against Saint-Simonism 1710 and Fourierism 1711 and you have fought alongside it against these. Yes, it has criticized the theories of the Luxembourg Palace 1712 and you have criticized them too. Yes, it has fought against Communism and you have done more, you have crushed it. 1713
You are in agreement with political economy on capital, its origin, its mission, its rights, and its direction; you are in agreement with it on the principle to be promoted, freedom; you are in agreement with it on the enemy to be fought against, the illegitimate intervention of the State in honest transactions; you are in agreement with it in its conflicts with previous manifestations of socialism; how is it then that you are turning against it? It is because you have found in socialism a new slogan: contradiction , 1714 or if you prefer, antinomy . For this reason you denounce political economy, saying to it:
"You are a century old. You are no longer up to date with current problems. You see the question from one point of view only. You base yourself on the legitimacy and usefulness of interest and you are right, for it is useful and legitimate, but what you do not understand is that it is at the same time harmful and illegitimate. This contradiction astonishes you; the glory of neo-socialism is that it has discovered this, and this is why that it goes beyond your grasp."
Before seeking to make these contradictory premises yield a solution, as you invite me to do, we must ascertain whether the contradiction exists, and we are thus brought back to examining in ever greater detail the following problem:
Is interest on capital legitimate?
But what can I say? My eyes are fixed on the sword of Damocles 1715 that you are holding over my head. The more conclusive my reasons are, the more you rub your hands and say: No better proof of my thesis could be found. If from the depths of communism a plausible refutation of my arguments is produced, you will also rub your hands and say: Here is support for my antithesis . Oh Antimony! You are genuinely an impregnable citadel. You are the spitting image of skepticism . How shall we persuade Pyrrho 1716 when he tells you: I doubt whether you are speaking to me or whether I am speaking to you; I doubt whether you exist or whether I exist; I doubt whether you are making a statement; I doubt whether I doubt?
In spite of this, let us see on what foundation you base the second half of the antimony.
First of all, you quote the Fathers of the Church, along with Judaism and paganism. Allow me to challenge them in matters of economy. 1717 You yourself admit that Jews and gentiles have said one thing and done another. When it is a question of examining the general laws that society obeys, the way men behave universally carries more weight than a few utterances.
You say: "The person who makes a loan does not deprive himself of the capital he is lending. On the contrary, he lends it precisely because he has no use of it for himself, as he has enough capital for himself otherwise. In the end he lends it because he has no intention, nor is it in his power, to add value to it personally." 1718
Well, what does it matter, if he has created it through his work precisely in order to lend it? In this there is just one ambiguity on the inevitable effect of the division of labour. Your argument attacks sales as well as loans . Do you want proof of this? I will quote your sentence, substituting the word Sale for Loan and Hat maker for Capitalist .
"The person who sells", say I, "does not deprive himself of the hat he is selling. On the contrary, he sells it because this sale does not constitute a deprivation for him. He sells it because he has no use for it himself, as he has enough hats for himself in any case. In the end, he sells it because he has no intention, nor is it in his power, to make use of it personally."
You still claim compensation in support of your antithesis .
"You lend me, at interest, the plane you manufactured to smooth your planks. If, for my part, I lend you the saw I have assembled to cut my tree stumps into lengths, I would equally have the right to interest … If on either side the capital advanced is equal, as the interest payments balance each other out, the outstanding amount would be zero."
Doubtless, and if the capital advanced was unequal, a legitimate outstanding amount will appear. This is precisely how things happen. Here again, what you say about loans may be said about exchanges and even about labor. Since the labor exchanged balances each other out, do you conclude that the labor has been destroyed?
Modern socialism, you say, aspires to achieving this mutual benefit from capital in order that interest, an essential part of the price of everything, would be the same for everyone and consequently cancel itself out. That it should cancel itself out is not ideally impossible and I do not ask for more. However, that requires other things than a newly invented Bank. Let socialism make activity, skill, honesty, saving, foresight, needs, tastes, virtues, vices, and even luck equal for all men and it will have succeeded. But in that case it would not matter whether interest is quoted at half of one percent or at fifty percent.
You accuse us of failing to recognize the significance of socialism because we do not attach much hope to its dreams of Free Credit . You tell us: "You give capital credit for the progress achieved in the fields of production and wealth, whereas the cause of this progress is not capital but the CIRCULATION of capital."
I believe it is you who are taking the effect for the cause here. In order for capital to circulate it has first of all to exist, and for that its emergence has to be stimulated by the prospect of a reward attached to the virtues that give rise to it. It is not because it circulates that capital is useful; it is because it is useful that it circulates. Its intrinsic usefulness makes some people demand it and others offer it; this gives rise to circulation that needs just one thing: TO BE FREE.
But above all, what I deplore is to see capitalists and workers divided into two antagonistic classes, as though there were a single worker in the world who was not to some extent a capitalist and as though capital and work were not the same thing, as though paying one was not to pay the other. It is certainly not to you that this proposition has to be demonstrated. Allow me, nevertheless, to elucidate it with one example, for, as you well know, we are not writing to each other but for the general public.
Two workers present themselves who have the same energy, the same strength and the same degree of skill. One of them just has his hands, the other an axe, a saw, and an adze. I pay the first man 3 francs a day and the second 3 francs 75 centimes. The wages appear to be unequal, but if we examine the matter further we will be persuaded that this apparent inequality is genuine equality.
First of all, I have to reimburse the carpenter for the wear and tear on the tools he uses in my service and for my benefit. 1719 His additional earnings have to provide him with the money to look after his tools and maintain his position. Under this heading, I give him 5 sous extra a day more than the simple worker, without equality being infringed in the slightest.
Next, and I call the reader's attention to this for we are at the heart of the matter, why does the carpenter have tools? Apparently because he has made them with his work or paid for them by his work , which is the same thing. Let us suppose that he has made them by devoting the entire first month of the year to this production. The manual laborer, who has not taken this trouble, can let me hire his services for 300 days, whereas the capitalist-carpenter 1720 will have only 270 days when he can work and earn. So 270 days with tools, therefore, have to produce as much for him as 300 days without tools, in other words, 270 days have to be paid at 5 sous more.
This is still not all. When the carpenter took the decision to make his tools, he had the aim, clearly totally legitimate, of improving his condition. The following words cannot be put into his mouth: "I am going to accumulate provisions and impose privations on myself in order to be able to work for an entire month for no pay. I will devote this month to making tools that will enable me to produce much more work for my customer's benefit. I will then ask him to pay my salary for the next eleven months so that I earn just as much overall as if I had remained a manual laborer." No, this cannot be so. It is obvious that what has stimulated insight, skill, foresight, and sacrifice in this artisan is the hope, the very fair hope, of obtaining a better rate of pay for his work.
In this way, we arrive at the following breakdown of the carpenter's wages:
1. 3 francs 0 centimes gross pay
2. 25c. wear on tools
3. 25.c compensation for the time spent on making the tools
4. 25c. fair payment for skill, foresight, and sacrifice
______________
3 francs75 centimes
Where can you see injustice, iniquity, and plunder in this? What do all these cries mean that have so absurdly been raised against our carpenter who has become a capitalist?
And note clearly that the extra pay he receives is not obtained at the expense of anyone; I who pay him have less reason than anyone to complain. Because of his tools, additional production has, so to say, been drawn from nothing. This extra utility is shared between the capitalist and me, who as a consumer, here represents the community and the entire human race.
Another example, since it seems to me that these direct analyses of the facts are more instructive than controversy.
A farmer has a field that has been made almost barren because of excess water. As he is a rather ignorant man, he takes a container and goes out to take up the water that is drowning his furrows. This is very heavy work; who ought to pay for it? Obviously the person who buys the harvest. If man had never thought of another method of drainage, wheat would be so expensive, even though there was no capital to pay (or rather because there was none ) that nobody would produce it, and this has been the fate of humanity for many centuries.
However, our farmer has the idea of digging a drain. Here capital makes its appearance. Who ought to pay for the cost of this undertaking? It is not the person who buys the first harvest. That would be unjust, since the drain will obviously benefit countless successive harvests. How then should the division be made? According to the law of interest and amortization. The farmer, like the carpenter, has to recover the four components of remuneration that I set out above, or he would not dig the drain.
And although interest is here levied on the price of wheat, it would be economic heresy to say that this interest is a loss for the consumer. Quite the contrary, it is because the consumer pays the interest on this capital, in the form of a drain, that he is not paying for the much more expensive drainage done by hand. And if you examine the matter closely, you will see that it is always work that the consumer pays for; only in the second case, there is cooperation from nature that is very useful and very productive, but which is not paid for.
Your greatest complaint against interest is that it allows capitalists to live without working. "Well, you say, living without working is, both in political and moral economic terms, a contradictory proposition and something that is impossible."
For man, as God has seen fit to make him, to live without working is, in absolute terms, no doubt impossible. But what is not impossible for man is to live for two days on the work of just one. What is not impossible for the human race, and what is even a providential consequence of its perfectible nature, is the constant increase in the ratio of the results obtained for the efforts expended. If an artisan has been able to improve his lot by making rough tools, why would he not improve it still further by creating machines that are more complicated by devoting more activity, more ingenuity and more foresight, and by subjecting himself to longer sacrifices? If talent, perseverance, order, savings, and the exercise of all virtues were practised within a family, why should this family not achieve some degree of leisure in the long run, or to put it better, to move into a higher order of production?
In order for this leisure to generate, justly, a certain irritation and jealousy in those who have not yet achieved this, it would be necessary for it to have been achieved at the expense of others, and I have proved that this was not so. In addition, it would be necessary for it not to be the eternal aspiration of all men.
I will end this letter, which is already too long, with a reflection on leisure.
Whatever sincere admiration I have for the admirable laws of social economy, whatever period of my life I have devoted to studying this science, whatever confidence is inspired in me by its solutions, I am not one of those who believe that it embraces the entire destiny of man. 1721 Production, distribution, circulation, and the consumption of wealth are not the sum of all things for man. There is nothing in nature that does not have a final aim, and man also has to have a goal other than that of providing for his material existence. Everything tells us this. Where do the sensitivity of his feelings and the ardor of his aspirations, his ability to admire and experience enchantment come from? Whence comes his ability to find in the slightest flower a subject of contemplation, or the excitement with which his senses receive and transmit to his spirit, like bees to the hive, all the treasures of beauty and harmony that nature and art have spread around him? How shall we explain the tears that moisten his eyes when he hears about the slightest act of devotion? What is the origin of that ebb and flow of feeling which his heart fashions, much as it directs his life-blood? Where does his love of humanity and his reaching out for the infinite come from? These are the marks of a noble destiny, which is not limited by the narrow bounds of industrial production. There is a purpose to man's existence. What is it? This is not the place to raise this question. But, whatever it is, what we can say is that he cannot achieve it if, bowed under the yoke of inexorable and constant work, he has no leisure to develop his senses, his affections, his mind, his sense of the beautiful, and what is purest and most elevated in his nature; the germ of which is in all men but in a latent and inert form because of a lack of leisure in all too many of them.
What is the power that, to a certain extent, will lighten the burden of hardship for all? What will shorten working hours? What will loosen the bonds of the heavy yoke, which bows not only men but also women and children down to material things when they appear not to be destined for this? It is capital; the capital which, in the form of wheels, gears, rails, waterfalls, weights, sails, oars, or ploughs takes over such a great portion of the work originally carried out at the expense of our sinews and muscles; the capital that increasingly causes the free forces of nature to make a contribution for the benefit of all. Capital is therefore a friend, a benefactor to all men, and particularly to the long suffering classes. What they ought to want is that it accumulates, increases, and is spread around beyond reckoning or measure. And if there is one sad sight in the world, a sight that can be defined only by these words: material, moral, and collective suicide, it is to see these classes, in their misguidedness, wage relentless war on capital. It would not be more absurd nor sadder to see all the capitalists in the world join forces to paralyze arms and legs and kill labour.
To sum up, Mr. Proudhon, I will say this to you: the day on which we agree on this initial item, that interest on capital, agreed upon by free negotiation, is legitimate, I will make it my pleasure and duty to discuss with you fairly the other questions you put to me.
FREDERIC BASTIAT
Letter No. 5: P. J. Proudhon to F. Bastiat (3 December 1849)Complaint about the limits set on the debate. Interest has been but is no longer legitimate. Inferences drawn from history. Illegitimacy succeeds legitimacy. The incapacity and ill will of society. It is the circulation of CAPITAL and not CAPITAL itself that gives rise to the progress of social wealth.
3 December 1849
Sir, your latest letter ends with the following words:
"The day on which we agree on this initial item, that the interest on capital is legitimate, I will make it my pleasure and duty to discuss with you fairly the other questions you put to me."
I will, Sir, endeavor to give you satisfaction.
But first of all allow me to ask you this question, which I just wish I could make less tersely : What have you come to La Voix du Peuple to do? To refute the theoretical case for free credit, that is, the abolition of all forms of interest on capital, and all rent on property.
Why then do you refuse to enter the theoretical grounds of this argument immediately, to pursue it at the level of its principles, its method, and its development, and to examine its contents, the proofs of truth that it provides, and the meaning of the facts it quotes, which spectacularly contradict and nullify the facts or rather the fiction that you endeavor to support with regard to the productivity of capital? Is this a serious and fair discussion? Since when have we seen philosophers answer a philosophical system with such a flat refusal? Can we not first of all come to an agreement on the system in vogue, before we examine a new one? Since when has it been accepted in science that any fact, idea, or theory that contradicts the generally accepted theory has to be rejected mercilessly by prior definition?
What! Are you endeavoring to refute me and convince me and then, instead of grappling with my theory in a straightforward manner, you present me with yours? In answer to me you begin by demanding that I reach agreement with you on what I positively deny! Truly, would I not have the right to say to you immediately at this point: "Keep your theory on interest bearing loans since it pleases you and leave me my theory of free loans, which I find more advantageous, moral, useful, and much more practical? Instead of debating, as we hoped to do, we would be free to speak ill of each other and criticize each other mutually. May the better man win! …
This, Sir, is how the discussion would end if, unfortunately for your theory, it were not obliged to overturn mine in order to maintain its position. This is what I will have the honor of demonstrating to you by following your letter point by point.
You begin with a joke, doubtless very witty, about the law of contradiction that I used to trace the progress of socialist theory. Believe me, Sir, there is always little glory to be gained by an intelligent man laughing at things he does not understand, especially when these things are based on authority as respectable as the law of contradiction. Dialectics, established by Kant 1722 and his successors, 1723 is now understood and used by half of Europe, and when our neighbors have taken philosophical speculation so far it is certainly not a title of honor for our country to remain at the level of Proclus 1724 and Saint Thomas. 1725 Through eclecticism and materialism we have even lost an understanding of our traditions; we do not even understand Descartes, 1726 since if we understood Descartes he would lead us to Kant, Fichte, 1727 Hegel, 1728 and beyond.
However, let us leave contradiction, since it puts you out of sorts, and return to the old method. You know what is understood in ordinary logic by distinction. Not having a teacher of philosophy, Diafoirus 1729 the younger would have taught you this. It is the process that is most familiar to you and which gives the best example of the subtlety of your mind. To answer your question, therefore I will make use of the distinguo : 1730 perhaps then it will no longer be possible for you to say that you do not understand me.
You ask: Is interest on capital legitimate, yes or no ? Answer this question without antimony or antithesis.
My answer is: L et us make some distinctions , please. Yes, Interest on capital could be considered legitimate at one time; no, it can no longer be so considered in another. Does this present you with some confusion or ambiguity? I will endeavor to shine some light into all the shadows.
Absolute monarchy was legitimate at one time: it was one of the conditions of political development. It ceased to be legitimate at a different time because it became an obstacle to progress. The same has been true of constitutional monarchy; in '89 and up to 1830, is was the sole political form that suited our country but today it would be a cause of upheaval and decay.
Polygamy was legitimate at one time; it was the first step made out of communal promiscuity. In our time it is condemned as being contrary to the dignity of women, and we send people to the galleys for it.
Judicial combat, the ordeal of boiling water, and torture itself, if you read Mr. Rossi, 1731 also had their period of legitimacy. They were the first forms given to justice. We reject them now, and any magistrate who had recourse to them would be guilty of assault.
Under Saint Louis, 1732 arts and trades were feudalized, organized on a corporate basis, and riddled with privileges. This regulation was at that time useful and legitimate; its aim was to establish work on a feudal basis comparable to the feudalism of land and nobility. It has been abandoned since and rightly so: since '89 industry is free of it. 1733
I therefore say once more to you, and in all conscience I believe that I am speaking clearly: Yes, interest-bearing loans were at one time legitimate, when any kind of democratic centralization of credit and circulation of money was impossible. It is no longer so now that this centralization has become a necessity of the age and hence a duty of society and a right of its citizens. It is for this reason that I am rising up against usury: I say that society owes me credit and discount without interest; I call interest THEFT. 1734
Willy-nilly, you will have to come out onto the grounds to which I am calling you, for if you refuse to do so, if you shroud yourself in the good faith of your former authority, I will then accuse you of bad faith and will shout everywhere, like Molière's Mascarille 1735 : Stop thief! Stop thief! Stop thief!
To put an end finally to antinomy, I will now, with the help of the previously quoted examples, tell you in a few words what antinomy adds to the of making distinctions. This is germane to our argument.
You understand, therefore, that something can be true, just, and legitimate at one time and wrong, iniquitous, and criminal in another. You cannot fail to understand this, since this is how things are. 1736
Well, the philosopher asks himself, how can a thing that is true one day fail to be so on the next? Can truth be changed in this way? Is truth not truth? Ought we to believe that it is just a fantasy, a mirage, and a mere presumption? In short, is there or is there not a reason for this change? Above truth that changes, is there, by chance, a truth that does not change, a truth that is absolute and immutable?
In short, philosophy does not stop at facts as revealed by experience and history; it seeks to explain them.
Well then! Philosophy has found or, if you prefer, it thinks it has seen that this change in social institutions, this turnaround that these institutions have experienced after a certain number of centuries, results from the fact that the ideas of which it is the expression have in themselves an evolutionary power, a principle of perpetual motion arising from their contradictory essence.
Thus it is that interest on capital, legitimate when the loan is a service provided by one citizen to another but which ceases to be so when society has acquired the power of organizing credit free of charge for everyone, this credit, I say, is in essence contradictory, since on the one hand the service provided by the lender is entitled to remuneration and on the other hand all income implies that something is produced or gone without, which is not the case with a loan. The revolution that has occurred relating to the legitimacy of loans arises from this. This is how socialism formulates the question; this is also the ground on which the defenders of the old regime ought to be putting themselves.
Wrapping yourself up in tradition, limiting yourself to saying: A loan is a service provided and therefore it ought to be paid for, without being willing to go into the considerations that tend to annul interest is not answering the question. Socialism, redoubling its energy, protests and tells you: I have no use for your service, which is a service for you but plunder for me, when society is in a position to allow me to enjoy free of charge the same benefits that you are offering me. Imposing a service like this on me whether I like it or not by refusing to (socially) organize the circulation of capital is making me bear an unjust levy and robbing me.
Thus, your entire argument in favor of interest consists in mixing up the eras; 1737 I mean mixing up that which, in loans, is legitimate with what is not, whereas I, on the contrary, am making a careful distinction between them. This is what I will succeed in making intelligible to you through an analysis of your letter.
I will address all your arguments, one by one.
In my first reply, I pointed out to you that the person who lends does not deprive himself of his capital. Your answer is: What does it matter, if he has created his capital precisely in order to lend it?
And when you say this, you betray your own cause. With these words, you agree with my antithesis , which consists in saying: The secret reason interest-bearing loans, which were legitimate yesterday, are no longer so today, is that loans in themselves do not lead to anything done without. I take note of this admission.
However, you hang on to the intention: What does that matter, you say, if the lender has created this capital precisely in order to lend it?
To which I reply: And what in turn is your intention towards me, if I do not really need your service, and if the alleged service you wish to provide me has become necessary to me only because of the ill-will and incompetence of society? Your credit resembles the credit provided by the Corsair 1738 to the slave when he gives him his freedom in return for a ransom. I protest at your credit at 5 percent, since society has the power and duty to give it to me at zero percent, and if it refuses to do so I will accuse it as well as you of theft. I will say that it is a partner, trouble-maker, and organiser of theft.
Likening loans to sales, you say: your argument attacks sales as much as it does loans. In effect, a hat maker who sells hats does not deprive himself of them.
No, for he receives for his hats, or at least he is supposed to receive, their value, neither more or less , immediately. However, a capitalist lender not only does not forego anything, since he recovers his capital entirely, he receives more than his capital, more than he contributes to the exchange; he receives, in addition to the capital, interest that does not represent any positive product on his part. Well, a service that does not exact some work from the person providing it, is a service that is liable to become free: this is what you yourself were telling us a moment ago.
After having acknowledged that the loan involves nothing foregone, you nevertheless agree " that it is theoretically possible for interest , which is today an integral part of the price of things, may be offset for everyone and consequently cancel itself out . "But", you add, "other things are needed than a newly invented Bank. Let socialism make activity, skill, honesty, savings, foresight, needs, tastes, virtues, vices, and even luck equal for all men and it will have succeeded."
In this way, you go into the question merely to avoid answering it immediately. Socialism, at the point it has reached, claims precisely that it is with the assistance of bank and tax reform that it is possible to achieve this mutual compensation (or balancing out). Instead of passing over this claim by socialism, as you do, stop awhile and refute it; you will have put an end to all the Utopias in the world. For socialism states, and without this claim socialism would not exist, it would be nothing, that it is not by making "activity, skill, honesty, savings, providence, need, tastes, virtues, vices, and even luck" equal for all men that we will succeed in compensating for interest and making net income equal; socialism asserts, on the contrary, that it is necessary to start by centralizing credit and abolishing interest in order to equalize abilities, needs, and chances. If there were no more thieves among us, we would all be upright and happy! This is socialism's statement of principles! I feel the keenest regret at telling you this, but you have such little knowledge of socialism that you bump into it without seeing it.
You persist in attributing to capital all the progress made by social wealth, which I myself attribute to the circulation of capital, and you tell me with reference to this, that I am mistaking the effect for the cause.
But by supporting a proposition like this you are unwittingly undermining your own thesis. J. B. Say demonstrated, and you are fully aware of this, that the transport of something of value, whether this value is in money or goods, constitutes itself a value; 1739 that it is a product that is as real as wheat or wine, and that consequently the service provided by the shopkeeper or banker is as worthy of payment as the services provided by farmers and wine producers. It is on this principle that you yourself rely when you claim payment for capitalists who, by providing the benefit of their capital, whose return is guaranteed to them, carry out the functions of transport and circulation. For the sole reason that I make a loan, you said in your first letter, I am providing a service and creating a value. These were your words, which we have accepted: in this we were both in agreement with the master.
I am thus quite right to say that it is not the capital itself, but the circulation of capital, it is this aspect of the service, product, merchandise, object of value, or economic reality that is known as movement or circulation in political economy and which basically constitutes the entire subject matter of economic science, that is the cause of wealth. We pay all those who provide this service for it but we hold that, with regard to capital itself, or money, it is up to society itself to enable us to enjoy it free of charge. If it does not do so, there is fraud and plunder. Do you now understand where the true point of the social question lies? …
After having deplored the sight of capitalists and workers divided into two antagonistic classes, which certainly is not the fault of socialism, you take the perfectly useless trouble of demonstrating to me, using examples, that every worker is to some extent a capitalist and puts his capital to work, that is to say, (to engage in) usury. Who has ever considered denying this? Who has told you that what we acknowledge to be legitimate in capitalists at a particular time we condemn at the same time in workers?
Yes, we know that the price of goods and services is currently broken down into:
1. Raw materials;
2. Amortization of tools of work and expenses;
3. Payment for work;
4. Interest on capital.
This is true for all employment, for agriculture, industry, commerce, and transport. These are the Caudine Forks 1740 of all that is not parasitical, whether in the case of capitalist or worker. You do not need to give us lengthy details on this matter, interesting though they may be, as well as illuminating as to what your imagination delights in.
I repeat: the question as far as socialism is concerned, is to ensure that this fourth element which enters into the structure of the price of things, that is to say, interest on capital, is off set between all producers and consequently cancels itself out. We maintain that this is possible and that, if it is possible, it is society's duty to provide free credit for all, otherwise society would not be a proper society but a capitalist plot against the workers, a pact for pillage and murder.
Please understand therefore for once that it is not a question of your endeavoring to explain to us how capital is formed, how it increases with interest, how interest forms part of the price of products, and how all workers are themselves guilty of the sin of usury: we have known all this for a long time, just as we are likewise convinced of the good faith of rentiers and landowners.
We say: An economic system based on the fiction of the productivity of capital, which could be justified at one time, is now illegitimate. Its impotence and harmful nature have been proved; it is this which is the cause of all current poverty, it is this which still supports the old fiction of representative government, the latest formula for tyranny among men.
I will not follow you in the quite religious ideas with which you end your letter. Allow me to tell you that religion has nothing to do with political economy. 1741 True science is self-sufficient; if it does not fulfill this condition, it is not true science. If political economy requires religious sanction to make up for the powerlessness of its theories and if, for its part, religion pleads the imperatives of political economy to excuse the sterility of its dogma, the result will be that political economy and religion will indict one another instead of giving each other mutual support, and both will perish.
Let us begin by establishing justice and, in addition, we will have freedom, fraternity, and wealth: the happiness of the other life itself will be all the more assured. Is the inequality of capitalist income the prime cause of the physical, moral, and intellectual misery that today afflicts society or is it not? Should we make income more evenly balanced for all men and make the circulation of capital free of charge by integrating it with the exchange of products and cancelling interest? This is what socialism is asking for and what requires an answer.
In its more positive conclusions, socialism provides a solution in he democratic and free centralisation of credit, combined with a single tax system that replaces all the other taxes and is based on capital.
Let this solution be put to the test; let us attempt to put it into practice. It is the only way socialism can be refuted; other than this, we will sound our war cry ever louder: Property is theft! 1742
P. J. PROUDHON
Letter No. 6: F. Bastiat to P. J. Proudhon (10 December 1849)Is it true that lending is no longer the provision of a service today? Is society a capitalist obliged to lend free of charge? Explanation of the circulation of capital. Illusions given their rightful name. What is true is that interest frees people from paying a higher price.
10 December 1849
I wish to remain on my own ground; you wish to entice me on to yours and you tell me: "What have you come to La Voix du Peuple to do, if not to refute the theory of free credit, etc.?
We have a misunderstanding. I did not go to La Voix du Peuple; La Voix du Peuple came to me. Free credit was being discussed everywhere, and each day witnessed the birth of a new plan for achieving this idea.
I then said to myself: It is pointless to combat these plans one after the other. Proving that capital has a legitimate and eternal right to be paid for would bring all these plans down at the same time and overturn their common base.
So I published Capital and Rent .
Since La Voix du Peuple did not find my demonstration conclusive, it refuted it. I requested the opportunity to justify it and you very decently agreed to this. It is therefore on my ground that the discussion should be continued.
Moreover, society has always and everywhere developed according to the principle that I invoke. It is up to those who want it to develop according to an opposing principle from now on to prove that society has been in error. The burden of proof is on their shoulders.
And after all, how important really is this introductory debate? Is not the proof that interest is legitimate, just, useful, beneficial, and eternal, proof that free credit is an illusion?
Allow me then, Sir, to come back to this dominant question: Is interest legitimate and useful?
Taking pity on me for my ignorance of German philosophy in which you see me languish (as do a good number of our readers), you happily proceed to substitute the law of distinction for that of contradiction by metamorphosing Kant into Diafoirus.
Thank you for this gracious kindness. It puts me at my ease. I must admit that my mind categorically refuses to accept that two contradictory assertions can be true at the same time. I respect Kant, Fichte, and Hegel, as I am bound to, in good faith of course. But if their books lead the mind of the reader to accept such propositions as: Theft is property; Property is theft; day is night ; I thank Heaven every day of my life for not having placed these books before my eyes. Your intelligence has been honed on these sublime subtleties; mine would inevitably have succumbed and far from making myself understood by others, I would no longer be able to understand myself.
Finally, to the question: Is interest legitimate? You reply, no longer in German: Yes and no , but in Latin: Distinguo . "Let us make a distinction: yes, interest on capital could be considered legitimate at one time; no, it can no longer be so considered at another."
Well then, your kindness, it appears, is hastening the conclusion of this debate. Above all, it proves that I had chosen my ground well, for what are you claiming? You say that, at a given time, returns on capital go from being legitimate to illegitimate, that is to say divests itself of one nature to clad itself in an opposite one. Now assuredly the presumption is not in your favor. It is up to the person who wishes to overturn universal practice on the strength of such a strange statement to prove it.
I had drawn the legitimacy of interest from the fact that a loan is a service , which can be evaluated, and consequently has a value and may be exchanged for anything of equal value. I even believed that you were convinced of the truth of this doctrine in these words:
"It is very true, as you yourself establish at the same time, that a loan is a service. And, since any service has a value and since it is in the nature of any service to be paid for, it follows that loans must have their price or, to use the technical term, that they have to bear interest ."
This is what you were saying two weeks ago. Today you say: Let us make a distinction. In the past, lending provided a service but now it does not provide a service.
Well, if lending no longer provides a service, it goes without saying that interest is, I will not say illegitimate, merely impossible.
Your new line of argument implies the following dialogue:
BORROWER: Sir, I wish to set up a shop and need ten thousand francs. Please would you lend them to me?
LENDER: Yes, indeed, let us discuss the conditions.
BORROWER: Sir, I will not accept conditions. I will keep your money for one year, two years, twenty years, after which I will purely and simply return it to you, bearing in mind that with regard to the repayment of a loan, everything that is paid over and above the loan is usury and plunder .
LENDER: But since you have come to request a service from me, it is only natural that I should ask you for one in return.
BORROWER: Sir, I have no use for your service .
LENDER: In that case, I will keep my capital even if I have to eat it.
BORROWER: Sir, I am a socialist and socialism, redoubling its efforts, protests and tells you, through me that: I have no use for your service, which is a service for you but plunder for me, given that society has made it possible for me to enjoy the same benefits you are offering me, free of charge. Imposing a service like this on me whether I like it or not by refusing to (socially) organise the circulation of capital, is making me bear an unfair levy and robbing me.
LENDER: I am imposing nothing on you against your will. Since you do not consider a loan to be a service, refrain from borrowing money, as I will from lending it. If society offers you benefits for no payment , go and talk to it, because that is much more convenient; and as for socially organising the circulation of capital , which you demand that I do, if what you mean by that is that you will have access to my capital free of charge through the agency of society, I have exactly the same objections to this indirect process which have led me to refuse to give you a direct loan free of charge.
Society! I must admit I was surprised to see this new character, a compliant capitalist, appearing in an article from your pen.
What is this! Sir, you who, in the very paper in which you address your letter to me, have rebutted with such unbridled energy the systems produced by Louis Blanc 1743 and Pierre Leroux, 1744 have you not dissipated the fiction of the State 1745 only to put in its place the fiction of Society ?
What is society then, as distinct from anyone who lends or borrows, and receives or pays the interest inherent in the cost of all things? What is this Deus ex machina that you introduce so unexpectedly to pronounce the last word on the problem? Is there on the one hand the whole mass of workers, merchants, artisans, and capitalists and on the other Society, a quite separate entity with such plentiful capital that it is able to lend to everyone without care or limit and totally free of any payment ?
This is not what you mean; and the only proof I need is your article on the State. 1746 You know very well that society has no capital other than that in the hands of capitalists, both great and small. Should Society be forced to seize this capital and circulate it free of charge on the pretext of organising it (along socialist lines)? In truth I am all at sea here, and I think that, under the influence of your pen, the dividing line between property and theft as perceived in the public mind is constantly being erased.
In seeking to get to the root of the error I am combating here, I think I have found it in the confusion you make between the costs of the circulation of capital and the interest on capital . You believe that the circulation of capital free of charge can be achieved, and you conclude from this that loans will be free. It is as though we were saying that when transport costs from Bordeaux and Paris are abolished, Bordeaux wine will be obtainable for nothing in Paris. You are not the first person to suffer from this illusion. Law said: "The law of circulation is the only one that can save empires." 1747 He acted on this principle, and instead of saving France he lost her.
I say: The circulation of capital and the costs it incurs is one thing; interest on capital is another. A nation's capital consists of material of all sorts, provisions, tools, goods, and cash, and these things are not lent free of charge. Depending on the level of development of society, it is more or less easy to transfer a given amount of capital, or what it costs, from one place to another or from one hand to another, but this has nothing to do with the abolition of interest. Take a man in Paris who wishes to lend and a man from Bayonne who wishes to borrow. However, the Parisian does not have what the Bayonnais wants. What is more, neither is aware of the other's intentions, so they cannot get in touch with one another, reach an agreement, and finalize (the deal). These are the obstacles to circulation . These obstacles are steadily decreasing, first of all through the intervention of cash and then through bills of exchange, successively from the private bankers, the National Bank, and the free banks. 1748
It is fortunate for the consumers of capital, as it is for the consumers of wine, that the means of transport are constantly improving. However, on the one hand circulation costs can never decrease as far as zero, since there is always an intermediary who provides a service , and on the other hand even if these costs were totally obliterated there would still be Interest, which would not be noticeably affected by this. There are free banks; 1749 these are under the control of the workers themselves, who are their shareholders. What is more, because of their number, they are always within reach; each day, some deposit their savings while others obtain from them the advances they require. Circulation is as easy and rapid as possible. Does this mean that credit there is free of charge, that capital does not produce interest for those who lend it and costs nothing to those that borrow it? No, it means only that lenders and borrowers are able to come together more easily there than elsewhere.
Thus, circulation that is totally free of charge is an illusion.
Free credit is an illusion.
To imagine that the first of these free services, if it were possible, involves the second being free is the third illusion.
You see that I have allowed myself to be drawn on to your ground and, since I have taken three steps on to it, I will take a further two.
You want to (socially) organize circulation in such a way that each person receives as much interest as he pays, and this, you say, is what will achieve the equality of wealth.
Well, I say:
The universal cancelling out of interest payments is an illusion.
The total equality of wealth resulting from this illusion is another illusion.
Anything of value is made up of two elements, payment for the work involved and payment for the capital. In order for these two elements to be in identical proportion in all things of equal value, every item of human work would have to require the same use of machines, the same consumption of raw materials, and the same amount of present and accumulated (past) labor.
Would your bank ever make available to the local street messenger, whose sole job is to hire out his time and legs, as much capital for his services as a printer or a manufacturer of stockings? Note that, in order for a pair of cotton stockings to reach this errand boy, intermediary contributors have been required: the use of land, which is capital, of a ship, which is capital, and of a spinning mill, which is also capital. Will you say that when the street messenger trades his service, valued at 3 francs, for a book, valued at 3 francs, he is misled in that the element of present labour is dominant in the service and the element of accumulated labour (is) dominant in the book? What does that matter if the two objects traded are worth the same , and their equal value is determined by free negotiation? Provided that what is worth one hundred is traded for something else worth one hundred, what does it matter what the proportion is of the two elements that make up each of these equal prices? Would you deny the legitimacy of the payment relating to capital? This would be calling into question a point that is already accepted in the debate. Besides, on what basis would past labour rather than present labour be excluded from any payment?
Work is divided into two quite distinct categories:
Either it is exclusively devoted to the production of an object, as when a farmer sows, hoes, harvests, and threshes his wheat, or when a tailor cuts out and sews a suit, etc.
Or it is used to produce an undetermined series of similar objects, as when a farmer fences, improves, and drains his field, or when a tailor furnishes his workshop.
In the first case, all the costs of production have to be paid for by the person who buys the harvest or the suit; in the second, production has to be financed by an undetermined number of harvests or suits. And it would quite clearly be absurd to say that the work of the second category should not be paid for at all because it is now called capital.
Well, how does our second producer manage to spread the payment due to him over an undefined number of successive purchasers? Through combinations of the amortization of debt and interest that the human race has invented from the outset, ingenious combinations that socialists would find it extremely difficult to replace. For this reason, all their ingenuity has limited itself to abolishing them, and they do not notice that this is quite simply eliminating the human race.
But when everything that has just been shown to be illusionary is regarded as realizable, that is to say, costless circulation, costless loans, and the cancelling out of interest payments, I say that we would still not achieve the absolute equality of wealth. And the reason for this is simple. Does the People's Bank intend to the change the human heart? Will it take steps to make all men are equally strong, active, intelligent, well organized, thrifty, or farsighted? Will it make sure that tastes, preferences, aptitudes, and ideas do not vary infinitely? Will it ensure that some do not prefer to sleep in the sun while others exhaust themselves working? That there are no spendthrifts and misers, people keen to pursue the assets of this world while others are more preoccupied with the life hereafter? It is clear that absolute equality of wealth can be the result only of all these impossible equalities, and many others.
But if the absolute equality of wealth is illusionary, what is not is the constant, ever growing closeness of all men to the same physical, intellectual, and moral level under a regime of freedom. Among all the forms of energy that contribute to this great leveling out, one of the most powerful is capital. And since you have offered me the use of your magazine, allow me to draw the attention of your readers for a moment to this subject. It is not enough to demonstrate that interest is legitimate; it also has to be proved that it is useful, even to those that bear its costs. You have said that interest in past times was "an instrument of equality and progress." 1750 What it was, it still is, and always will be. Its development does not change its nature.
Workers will perhaps be surprised to hear me state the following:
Of all the elements that enter into the price of things, the one they ought to pay most joyfully is precisely interest or the remuneration of capital, since this payment always saves them one that is even greater.
Pierre is an artisan in Paris. He needs to have a load transported to Lille: a present he wishes to give to his mother. If no capital existed in the world (and there would be none if all payment for it were denied), this transportation would cost Pierre at least two months of hard labor, either by himself or by someone else he got to do it for him, since he could carry out the task himself only if he carried the load up hill and down dale and no one could do it for him except in the same way.
Why does Pierre meet with entrepreneurs who ask him for just one day's work in order to save him sixty? Because capital has intervened in the form of carts, horses, rails, railcars, and locomotives. Doubtless Pierre has to pay something for this capital, but it is precisely for this reason that he does or has done for him in one day what would have taken him two months to do.
Jean is a blacksmith, a very upright man but one often heard to speak out against property. He earns 3 francs a day; 1751 this is not much, it is too little, but in the end, since wheat costs about 18 francs a hectoliter, Jean is able to say that he causes a hectoliter of wheat or its value to flow from his anvil each week, or 52 hectoliters a year. I am supposing now that capital did not exist and that our blacksmith is faced with 1,000 hectares of land and told: "Make use of this land which is very fertile; all the wheat you grow is yours." Jean would doubtless reply: "Without horses, a plough, an axe, or tools of any sort, how do you expect me to strip the land of the trees, roots, grass, stones, and stagnant pools of water that obstruct it? I will not be able to grow one stem of wheat in ten years." Jean should therefore say to himself: "What I would not be able to do in ten years, others are doing on my behalf, and they are asking me for just one week of work. It is clear that it is beneficial to me to pay capital, for if I did not pay for it there would be none, and others would be in as much difficulty faced with this land as I am myself."
Every morning, Jacques buys La Voix du Peuple for one sou. As he earns 100 sous a day, or 50 centimes an hour, he is exchanging six minutes of work for the price of one issue, a price that includes two elements of payment, one for labour and one for capital. Why doesn't Jacques say to himself on occasion: "If no capital was used in the printing of La Voix du Peuple, I would not be able to have it either for one sou or a hundred francs."
I could list all the objects that meet workers' needs, and the same consideration would crop up constantly. Capital is therefore not the tyrant it is made out to be. It provides services, considerable services, and it is only fair that it should be paid for. This payment decreases constantly as capital increases in volume. In order for its volume to increase people have to have an interest in its formation, and in order for people to be interested, it has to be sustained by the hope of payment. What artisan or worker would take his savings to the Savings Bank or even make savings at all if he were told at the outset that interest is theft and has to be abolished?
No, no, this is insane propaganda; it runs counter to reason, morality, economic science, the interest of the poor, and the unanimous beliefs of the human race as revealed through universal practice. It is true that you do not preach the tyranny of capital but you preach free credit , which is the same thing. To say that any payment given to capital is theft is to say that capital ought to disappear from the face of the globe, and that Pierre, Jean, and Jacques ought to carry out their own transport or produce their own wheat or books with as much work as they would need to produce these things directly and with no other resources than their hands.
March on, Capital, march on! Pursue your career doing good for the human race! It is you that have freed slaves and overturned the fortified castles of feudal times! Grow even greater; make nature subject to you; make gravity, heat, light, and electricity contribute to human satisfaction! Take upon yourself what is repulsive and mind-numbing in mechanical work; make democracy rise up and transform human machines into men, men endowed with leisure, ideas, feelings, and hopes!
Allow me, Sir, in closing to make one criticism of you. At the beginning of your letter, you promised me to abandon antinomies for today; however, you end with the antinomy that you call your war cry : Property is theft .
Yes, you have characterized it well; it is in fact a mournful tocsin, a sinister war cry. However I have the hope that, viewed from this angle, it will have lost some of its power. There is in the minds of the masses a fund of common sense that has not lost its rights and will in the end revolt against these strange paradoxes advanced like so many magnificent discoveries. Oh, why did you not base propaganda on this other axiom, certainly more enduring than yours: Theft is the opposite of property ! Then, with your indomitable energy, popular style, and invincible dialectic, I would find it impossible to measure the good you would have been able to do in our beloved country and for the human race.
FREDERIC BASTIAT
Letter No. 7: P. J. Proudhon to F. Bastiat (17 December 1849)Some Criticism. Commission agents for road transport and railways. A retrospective excursion to the lands of the Hebrews, Greeks, and Romans. Nescheck, Tokos, Foenus, and Interesse. 1752 Interest arising from the contracts for small private cargo. 1753 The intervention of cash and its consequences. Moses, Solon, and Lycurgus. Force alone maintains interest. Two fables.
17 December 1849
Our discussions are getting nowhere, and the fault is entirely yours. Because of your systematic refusal to take a stand on the ground on to which I summon you and your obstinate determination to attract me onto yours, you are failing to recognize the right owed to any innovator like myself to be examined; you are failing in the duty imposed by the appearance of new ideas on all economists who are the natural defenders of established tradition and usage; in sum you are compromising public charity by forcing me to attack what I have acknowledged to be, to a certain extent, irreproachable and legitimate.
You wanted this: may your wishes be fulfilled!
First of all, allow me to summarize our dispute.
In your first letter you endeavored to show, by means of theory and a number of examples, that a loan is a service and that, since all services have a value , it is entitled to be paid for , from which you deduced immediately, contrary to my position, the conclusion that free credit was an illusion and, based on this, that socialism is a movement lacking both principles and reason.
This being so, it is irrelevant whether it was you who asked La Voix du Peuple for space or whether it was I who offered you the publicity of its columns; in fact, as each of your letters shows, you had no other aim than to overturn the theory of free credit by a blunt refusal to consider it.
I therefore answered you and I had to give you the answer that, without entering into an examination of your theory on interest, if you wished to combat socialism usefully and seriously, you had to attack it in itself and on the basis of its own doctrines and that socialism, without absolutely denying the legitimacy of interest, considered from a certain point of view and at a certain period of history, affirms that it is possible, with the help of the workers and in the current state of social economy, to organize a system of free loans, and consequently to give guaranteed credit and work to all. Finally, I said that this was what you had to examine if you wanted the discussion to lead somewhere.
In your second letter, you peremptorily and imperiously refused to follow this path, claiming that in your view and following my admission, since there was no crime nor misdemeanor in the principle of interest, it was impossible to accept that loans could be made without interest, and that it was inconceivable that something could be true and false simultaneously; in short that, as long as the criminality of interest was not proved to you, you would consider the theory of free credit as null and void. All this spiced with many jokes about the law of contradiction, of which you have no understanding and flanked with examples which, I must admit, are very good at making people understand the mechanism of interest but which prove nothing at all against free credit.
In my reply, I believe that I proved to you, using your own method, that nothing is more common in society than to see an institution or a custom that is initially liberal and legitimate become with time a hindrance to liberty and an infringement of justice, that this was true for loans bearing interest on the day it was demonstrated that credit could be given to all without payment and that, from now onward, to refuse to examine the possibility of free credit constituted a denial of justice, an offence against public faith, and a challenge to the proletariat. I therefore reiterated my earnest statements and said to you: Either you examine the various propositions put forward by socialism, or I declare that interest on money, rent from land, and income from houses and capital are forms of plunder, and that property thus constituted is theft.
On the way, I briefly indicated the causes that, in my opinion, change the moral status of interest and the means of abolishing it.
It certainly appeared that, in order to justify your theory, which henceforward is accused of theft and larceny, you could no longer exonerate yourself from finally having to deal with the new doctrine, which claims to exclude interest. I am bold enough to say that this is what all our readers expected. By avoiding any criticism of interest, I showed myself to be conciliatory and a lover of peace. I was loathe to incriminate the good faith of capitalists and throw suspicion on landowners. Above all, I wanted to cut short a wearying dispute and hasten the final conclusion. Whether it is true or false, legitimate or illegitimate, moral or immoral, I said to you, I accept usury, I approve of it, I will even praise it; I will renounce all the illusions of socialism and make myself a Christian once more if you prove to me that the benefit provided by capital, as well as the circulation of financial assets, cannot under any circumstances be free of charge. As we say, this was to tackle the problem head-on and cut short a great deal of quite pointless discussion in a journal, discussion if you will allow me to say so, which is very dangerous at this time. 1754
Is it possible, yes or no, to abolish interest on money and consequently rent for land, rent for houses, or the income from capital, on the one hand, by simplifying and cutting taxes and on the other by organizing a circulation and credit bank in the name of and on behalf of the People? This is how, in my opinion, the question between us should be set. Both of us made a law out of a love of the human race, a love of truth, and a love of peace. What have the People been doing since February? What has the Constitutive Assembly been doing? What is the Legislative Assembly 1755 doing at the present time, if not seeking for the means of improving the lot of the workers without alarming legitimate interests or infringing the rights of landowners? Let us seek to ascertain, therefore, whether free credit might not by chance be one of these means.
These were my words. I dared to believe that they would be heard. Instead of replying to them, as I hoped, you take shelter behind your refusal. To my question: " Isn't proving that free credit is possible, easy, and practical also proving that interest on credit is henceforward something that is harmful and illegitimate?" you reply by rephrasing my question: "Is proving that interest is (or has been) legitimate, just, useful, beneficial, and irreplaceable not also proof that free credit is an illusion?" You reason exactly like road transport entrepreneurs 1756 with regard to the railways.
See them, in fact, putting forward their complaints to the public, which is abandoning them and rushing to the competition. Are carts and wagons not institutions that are useful, legitimate, beneficial, and irreplaceable? Is not the transport of your persons and products a service provided by us? Has this service no value? Should not all things of value be paid for? Are we thieves because we charge 25 centimes per ton and kilometer for transport, while it is true that locomotives do this for 10 centimes? Hasn't commerce always and everywhere grown by using wagons, beasts of burden, or vessels powered by sail or oars? What does steam, atmospheric pressure, and electricity matter to us? Is proving the reality and legitimacy of four-wheeled vehicles not proving that the invention of railways is an illusion?
Here, Sir is where your line of argument is leading you. Like its predecessors, your last letter, from beginning to end, has no other meaning. To retain for capital the interest I refuse to accept, you answer me with a preliminary question and oppose my innovative idea with your routine assertions. You are protesting against rail and the steam engine. I would be sorry to say something wounding to you, but truly, Sir, I consider that I would have the right from now on to break off here and turn my back on you.
This I will not do. I want to give you satisfaction to the bitter end by showing you how, to quote your own words: the remuneration of capital moves from being legitimate to being illegitimate and how free credit is the final conclusion of the practice of charging interest. This discussion in itself does not lack importance; I will endeavor above all to keep it peaceful.
What makes interest on capital, which is excusable and even just at the beginning of the economic life of society, becomes true plunder and theft with the development of industrial institutions, is that this interest has no other principle or raison d'être than necessity or force. Necessity is what explains the requirement of the lender; force is what explains the resignation of the borrower. However, as necessity gives way to liberty in human relations and right succeeds force, capitalists lose their justification, and the way is opened for workers to express their claims against landowners.
At the beginning, land was undivided; each family lived from hunting, fishing, gathering, or grazing. Industry is totally domestic; farming, if we call it this, is nomadic. There is neither commerce nor property.
Later, as tribes gathered together, nations began to be formed. Castes appeared, arising from war and the patriarchal system. Property was gradually established but, according to the laws established during the heroic period, when masters did not cultivate with their own hands, they operated using their slaves, as lords later did with their serfs. Tenant farming did not yet exist and rent, a manifestation of this relationship, was unknown.
At that time, commerce was conducted mainly through the exchange of goods. If gold and silver appeared in transactions, it was more as merchandise than as a means of payment or units of value. They were weighed and not counted. Trade and the money-changing it leads to, interest-bearing loans and limited partnerships, all these operations in advanced commerce that give rise to cash, were unknown. These primitive customs have lasted for a long time in farming populations. My mother, a simple countrywoman, told us that before '89 she hired herself out during the winter to spin flax and, in return for six weeks of work and her board, received as pay one pair of clogs and a loaf of rye bread.
It is in maritime trade that the origin of lending at interest should be sought. The practice of "bottomry" or whole ship cargo contracts, which was a type of contract used for private cargo, was its original form, in the same way as farm or cattle leases were analogous to limited partnerships. 1757
What is a contract for private cargo? A binding arrangement in which an manufacturer and a shipowner agree to pool, for purposes of foreign trade, the former, a certain quantity of goods that he is responsible for procuring, the latter his navigation skills. The resulting profit from the sale has to be shared in equal portions or according to agreed proportions, with the risks and damage being the responsibility of the company.
Is the profit thus provided for, however large it may be, legitimate? This cannot be called into question. Profit at this early era of commercial relationships is none other than the uncertainty that reigns between the people trading with regard to the value of their respective goods; it is an advantage that exists more in the mind than in fact and that both parties often attribute to themselves, not without reason. How many pounds of tin is one ounce of gold worth? What relationship in price terms is there between purple cloth from Tyre 1758 and the pelt of a sable? Nobody knows and nobody can know. A Phoenician who, for a roll of furs, hands over ten lengths of his fabric, applauds his trade; the northern hunter, for his part, proud of his brown furs, thinks the same. And this is still the practice of Europeans with Australian natives who are happy to give a pig for an axe, a chicken for a nail, or a glass bead.
The incommensurability of values is, at the outset, 1759 the source of the profit from trade. Gold and silver therefore are traded, initially as goods and shortly afterward, because of their considerable ease of exchange, as terms of comparison, as money. In both cases, gold and silver bring profit to the trade, in the first place through the very fact of the trade and then for the risk incurred. Insurance contracts appear at this point as twin brothers of whole ship contracts; the premium stipulated in insurance contracts depends upon, and is even identical to, the share of profit agreed in the whole ship contracts.
This share of the profit, which expresses the participation of the capitalist or the producer who commits his products or his funds which are one and the same in commerce, has been given the Latin name of interesse , 1760 that is to say, "taking part in" or interest .
At this time, therefore, in the circumstances I have just defined, who could have accused the practice of interest of being harmful? Interest is the throw of the dice, 1761 the winnings obtained in the face of chance; it is the unpredictable profit of trade, a profit that cannot be criticised as long as no comparison of values has supplied the related notions of what is expensive and what cheap , of proportion, and PRICE. The same analogy, the same identity that political economy has constantly pointed out, and rightly so, between interest on money and the rent on land, existed at the start of commercial relationships between this same interest and the profit from trade. In essence, exchange is the common form, the starting point of all these transactions.
You see, Sir, that the fierce opposition I make to capital does not stop me in the slightest from acknowledging the justice of the initial good faith of its operations. It is not I who will ever play games with the truth. I have said that there was a good, honest, and legitimate aspect to interest-bearing loans and I have just established this in a way that I consider to be more valid than yours in that it sacrifices nothing to selfishness and takes nothing away from charity. It is the impossibility of evaluating objects accurately which, at the outset, formed the basis of the legitimacy of interest just as, later, it is the search for precious metals that sustains it. There had to have been a positive and essential reason for interest-bearing loans for them to have developed and become as generalized as we have seen; this was necessary, I say, on pain of condemning, along with the theologians, the entire human race, which for my part I profess to consider infallible and sacred.
But who does not already see that the trader's profit ought to decrease progressively with the risk incurred and with the arbitrary nature of prices until finally it is merely the fair price of the service provided by him, the price paid for his work? Who does not also see that interest ought to decrease with the risks incurred by capital and the deprivation experienced by capitalists, so that, if payment by the debtor is guaranteed and the creditor's inconvenience is zero, interest ought to become zero?
Another cause, which should not be overlooked here since it marks the point of transition or separation between the share of profit, interesse , due to capitalists in whole ship contracts and usury as such, another quite accidental cause, I repeat, made a significant contribution to generalizing the fiction of the productivity of capital and consequently, the practice of interest. This was the requirements of accounting in commercial businesses and the need to make payments received or reimbursements faster. What more potent stimulus, I ask you, could you imagine with respect to lazy and late-paying debtors, than this aggravation, foenus , 1762 this constant rebirth, tokos, 1763 of the principal? What bailiff is more inflexible than this serpent of usury as the Hebrew designates it? Usury, said the ancient rabbis, is called a serpent, neschek, 1764 because the creditor BITES the debtor when he claims more from him than he has given him. And it is this instrument of policy, this sort of commercial guard dog set by the creditor at the throat of his debtor that people have wanted to make a principle of commutative justice and a law of social economy! You have to have never set foot inside a trading establishment to fail to recognize the extent to which the spirit and aim of this truly diabolical invention of the mercantile genius now exists.
Let us now follow the progress of the institution, for we are reaching the time at which the neschek, tokos, foenus , in a word usury , now distinguished from the random profit, or interesse , of the trader is on the point of becoming an institution, and let us see first of all how the practice became generalized. We will subsequently endeavor to determine the reasons that ought to lead to its abolition.
We have just seen that it was among maritime nations which carried out brokerage and warehousing for others and who dealt above all with valuable goods and metals that mercantile speculation first developed, and with it the speculation of interesse or whole ship contracts. It is from this that usury, like the plague, spread in all its forms to farming nations.
The operation of interesse , which is irreproachable in itself, had created a precedent; the method used was foenus , which might be regarded as an appeal against coercion and the lack of security; the progressive deterioration of capital, provided the means. The preponderance acquired by gold and silver over other forms of merchandise, the privilege they received by universal consent to represent wealth and serve as a common means of determining value for all products, provided the opportunity. When gold became the king of exchange, the symbol of power, and the key to all happiness, everyone wanted to have gold, and since it was impossible to have enough for everyone, it could be obtained only at a premium and its use had a price. It was lent out by the day, by the week, and by the year, like so many flute players or prostitutes. One consequence of the invention of cash was the valuing of all other goods very cheaply compared to gold and the establishment of all genuine wealth, like savings, in écus. Capitalist exploitation, condemned by all antiquity, an era certainly better informed about it than ours, since it had its origins there, was thus established: to our century was reserved the privilege of furnishing it with learned men and legal advocacy.
As long as usury, having become confused with the insurance premium or the share of profit in maritime contracts, was confined to maritime speculation and had an effect only internationally; it appeared innocuous to legislators. It was only when it began to be practiced among fellow citizens and fellow countrymen that the divine and human laws fulminated against it. You shall not invest your money for interest with your brother, said the law of Moses, but yes indeed with foreigners: Non foenerabis proximo tuo, sed alieno (Lend not to your neighbour, but to the stranger) . 1765 It is as though the legislator had said: Between nations, the profit from trade and the increase in capital express a relationship only between opinions about values, valuations which balance each other as a result. Between citizens, with products having to be exchanged for other products, work for other work, and with the lending of money just an anticipation of this exchange, interest constitutes a difference which breaks commercial equality, enriches one to the detriment of the other, and in the long run leads to the subversion of society.
It was therefore in line with this principle that the same Moses wanted all debts to be cancelled and cease to be due every fifty years, which meant that fifty years of interest or fifty annual payments, assuming that the loan as made in the first year of the fifty year period, would reimburse the capital.
It was for this reason that Solon, 1766 called upon to be President of the republic by his fellow citizens and made responsible for calming the troubles agitating the city, began by canceling debts, that is to say, liquidating all usury. Free credit was in his view the sole solution to the revolutionary problem faced in his time, the condition sine qua non of a democratic and social republic. 1767
Finally it was for this that Lycurgus, 1768 a mind little versed in questions of credit and finance, pushing his apprehensions to the extreme, banished trade and money from Sparta, unable as he was to find any other remedy than this Icarian solution 1769 to the demotion of citizens to a subaltern status, and the exploitation of one man by another.
However, all these efforts of moralists and legislators in antiquity, which were badly coordinated and even more badly supported, had to remain powerless. The growth of usury, constantly stimulated by luxury and war and very soon by the analogy drawn from property itself, overwhelmed them. On the one hand, the state of antagonism between nations that maintained the dangers to the movement of goods constantly provided new pretexts for usury; on the other, the selfishness of the ruling classes was bound to stifle the principles of egalitarian organization. In Tyre, Carthage, Athens, and Rome, everywhere in the ancient world as in the world of today, it was free men, patricians, and bourgeois who took usury under their protection and exploited the common people and freedmen by means of capital.
Eventually Christianity made its appearance, and after four centuries of struggle initiated the abolition of slavery. It is at this time that we have to situate the general establishment of interest-bearing loans in the form of farm and house rental leases.
I said above that, in ancient times, when the landowner did not himself or with his family's help improve the value of the land, as was the case in Roman times in the early days of the Republic, he did it using his slaves. This was the general practice in patrician houses. At that time the land and the slaves were bound to one another; those who worked the land were described as adscriptus glebae , bound to the soil: the ownership of man and thing were indivisible. The price of a sharecropping farm reflected at once the area and quality of the land, the number of cattle, and the number of slaves.
When the emancipation of slaves was proclaimed, the owner lost the men but kept the land; as today, when the blacks are emancipated, we reserve the ownership of the land and equipment for their master. However, from the point of view of ancient jurisprudence, as in natural and Christian law, man, who is born to work, cannot do without tools of work. The principle of emancipation implied an agrarian law, which would have guaranteed and sanctioned this. Without this, the alleged emancipation was nothing other than an act of odious cruelty, an infamous piece of hypocrisy. And if, according to Moses, interest or the annual payment on capital reimbursed capital, might it not be said that slavery reimburses property? Theologians and lawmakers of the time did not understand this. Through an inexplicable contradiction, which persists today, they continued to thunder against usury but they gave absolution to farm rent and rent from housing.
The result of this was that emancipated slaves and, a few centuries later, emancipated serfs, with no means of existence had to become farmers and pay tribute. Masters simply found themselves all the richer because of this. They said: I will provide you with land; you will provide the work, and we will share the proceeds. This was a rural imitation of the customs and usages of trade: "I will lend you ten talents," said the man with the écus to the worker, "you will increase their value and then we will share the profit." Or else: "for as long as you keep my money, you will pay me one twentieth." Or last of all: "If you prefer, at the due date you will pay me back twice as much." From this arose rent for land, unknown to Russians and Arabs. The exploitation of one man by another through this metamorphosis gained the force of law: usury, condemned in interest-bearing loans, tolerated in maritime contracts, was canonized in farm rent. From that time, the progress of commerce and industry served merely to introduce it further into custom. This had to be so if light were to be shed on all the varied forms of servitude and theft and the real answers to the problems of human freedom formulated.
Once committed to the practice of interesse , so strangely understood and applied with so much abuse, society began to revolve in the circle of its misery. It was then that the inequality of conditions appeared to be a law of civilization and evil an inevitable part of our nature.
Two avenues, however, seemed to be open to workers to free themselves from capitalist exploitation; one was, as we have said previously, the gradual balancing out of values and consequently a decrease in the cost of capital, and the other, the reciprocity of interest.
However, it is obvious that the revenue from capital, represented in particular by money, cannot totally be cancelled by the decrease, for as you have said so clearly, Sir, if my capital is to bring me nothing in the future, instead of lending it, I will keep it and, for having positively refused to pay the tithe, the worker will be unemployed. As for the reciprocity of usury, we can readily imagine that it might exist between one entrepreneur and another, one capitalist and another, or one landowner and another, but between a landowner, capitalist, or entrepreneur and someone who is merely a worker, this reciprocity is impossible. It is impossible, I say, for a worker to be able to buy something he has himself produced, if the price of the product is made up of the interest on capital and his wages. To live by working is a principle that, in a system based on the charging of interest, implies a contradiction.
Once society has become mired in this impasse, the absurdity of this capitalist theory is demonstrated by the absurdity of its consequences. The intrinsic iniquity of interest results from its homicidal effects, and as long as property has rent and usury as an assumption and as a consequence, its affinity with theft will be established. Can it exist under different conditions? For my part I deny this, but this question is not pertinent to the question in hand right now, and I will not go down this path.
Now consider the situation in which both capitalist and worker find themselves simultaneously, following the invention of money, the preponderance of cash, and the blurring of the distinction between the lending of money and rent for land and buildings.
The former, for I am determined to justify him even in your view, being in thrall to this prejudice of money, cannot separate himself from his capital in favor of the worker free of charge. Not that this separation would cause him any hardship, since in his hands the capital is sterile. Not that he runs the risk of losing it, since he is assured of its repayment through the safeguard of mortgages. Not that this benefit costs him the slightest pain, unless you consider as a pain the counting of écus and the verification of the collateral; but, in separating himself for a period of time from his money which, because of its prerogative has been so accurately called (a form of) power, the capitalist will decrease his power and with it his security.
It would be quite another thing if gold and silver were just ordinary products, if no more consideration were paid to the possession of écus than to the possession of wheat, wine, oil, or leather and if the simple ability to work gave men the same security as the possession of money. Under this monopoly of circulation and exchange, usury becomes a necessity for the capitalist. His intention, from the point of view of justice, is not incriminating: as soon as his money leaves his coffers, it is no longer safe.
Well, this necessity that, as a result of an involuntary and universally accepted prejudice, binds the capitalist, is the most shameful plunder of the worker, akin to the most odious of tyrannies, the tyranny of force.
What in effect are the theoretical and practical consequences of interest-bearing loans and their equivalent, farm rent, on the working class, this lively, productive and moral sector of society? For the moment, I will limit myself to listing a few of these to which I draw your attention and which may, if you are willing, become the subsequent focus for our debate.
One is that, by virtue of the principle of interest or the net product, an individual may genuinely and legitimately live without working; this is the conclusion of your letter before last 1770 and in fact, this is the status to which everyone now aspires.
A second is that if the principle of the net product is true for individuals, it must be so for nations as well; in this way, since the movable and fixed assets of France, for example, are valued at 132 billion, 1771 at 5 percent per year of interest, this gives 6 billion six hundred million on which at least half of the French nation could, if it wished, live without working. In England, where accumulated capital is much greater than in France, and the population much smaller, the entire nation, from Queen Victoria to the most junior joiner of yarn in Liverpool, might, if it wished, live on unearned income, walking around with elegant walking sticks or complaining in meetings. Which leads to the obviously absurd proposition that, because of its capital, a nation has more income than its work provides.
A third is that since the annual sum of wages in France is about 6 billion and the sum of income from capital is also 6 billion, making a total annual sales value for production of 12 billion, the people who produce, who are at the same time the people who consume, can and ought to buy with the 6 billion of wages allocated to them the 12 billion that commerce asks of them as the price of their goods, without which capitalists would find themselves with no income.
A fourth is that, since interest is by nature perpetual and under no circumstances, in accordance with Moses' wishes, can it be used to reimburse capital, and what is more, as each year of interest can be reinvested at usurious rates and form a new loan consequently giving rise to new interest, the smallest amount of capital can, in time, produce prodigious sums that would not even be represented by a mass of gold as large as the globe which we inhabit. Price has demonstrated this in his theory of amortization. 1772
A fifth is that, since the productivity of capital is the immediate and single cause of the inequality of wealth and the incessant accumulation of capital in a small number of hands, it has to be admitted that in spite of the progress in enlightenment, Christian revelation, and the expansion of public freedoms, society is naturally and necessarily divided into two castes, a caste of exploiting capitalists and a caste of exploited workers. 1773
A sixth is that, since this caste of capitalists controls like a sovereign (lord) the tools of production and its products by means of the benefits from the interest provided by its capital, it has the right, whenever it suits it, to stop work and circulation as we have seen it do for the last two years, 1774 at the risk of causing the people to die. It can change the natural direction of things, as is seen in the Papal States where farmland has been devoted from time immemorial to idle pasture because it suits the owners and where the people live only on alms and the curiosity of foreigners. It can say to a large group of citizens: " You are superfluous on this earth, at the banquet of life; there is no room for you " 1775 as the Countess of Strafford 1776 did when she expelled 17,000 country folk at a stroke from her domains, and as the French government did last year when it transported 4,000 families with hungry mouths to Algeria. 1777
I ask you now, if the prejudice in favor of gold or the inevitability of monetary institutions excuse and justify capitalists, is it not true that these institutions create a regime of brutal force for workers which is distinguishable from slavery in ancient times only by its deeper and more criminal hypocrisy.
FORCE, Sir, that is the first and last word of a society organized on the principle of interest and which, for the last 3,000 years has struggled against interest. You note this yourself, without restraint or scruple, when you acknowledge with me that capitalists do not deprive themselves in the slightest and with J. B. Say, that their function is to do nothing , 1778 when you put the following brazen words that any humane conscience would condemn into their mouths:
"I impose nothing on you against your will. Since you do not consider a loan to be a service, refrain from borrowing money, as I will from lending it. If society offers you benefits for no payment , accept them as that is much more convenient, and as for organizing the circulation of capital , which you demand that I do, if what you mean by that is that you will obtain mine free of charge through the agency of society, I have exactly the same objections to this indirect process which have led me to refuse you a direct loan free of charge."
Take care, Sir, the people are only too ready to believe that it is solely through a love of its privileges that the capitalist caste, at this crucial time, is rejecting the organization of credit that they are demanding, and the day on which the ill-will of this caste is revealed to them, all excuses will be void in their eyes and their vengeance will know no bounds.
Do you want to know what dreadful demoralization you are creating in workers with your theory of capital, which is none other, as I have just told you, than the theory of the right of FORCE? It is enough for me to quote your own arguments. You like fables: to put my thoughts into concrete form, I will offer you a few.
A millionaire falls into the river. A member of the proletariat happens to pass by and the capitalist gestures to him. The following conversation takes place:
THE MILLIONAIRE: Save me or I will die.
THE PROLETARIAN: I am at your service, but I want a million for my trouble.
THE MILLIONAIRE: A million for extending a hand to your brother who is drowning! What will that cost you? An hour's delay! I will pay you a quarter day's work for I am generous.
THE PROLETARIAN: Tell me, am I not providing you with a service by pulling you out?
THE MILLIONAIRE: Yes.
THE PROLETARIAN: Has not every service the right to a reward?
THE MILLIONAIRE: Yes.
THE PROLETARIAN: Am I not free?
THE MILLIONAIRE: Yes.
THE PROLETARIAN: Then I want a million: that is my last word. I am not forcing you and am imposing nothing on you against your will. I am not preventing you in the slightest from shouting " Man the boats !" and calling someone. If the fisherman I see over there, a league from here, wants to give you this benefit for no return, call on him, it is more convenient."
THE MILLIONAIRE: Miserable man! You are taking advantage of my position. What about religion, morality, or humanity?
THE PROLETARIAN: That is a matter for my conscience. Besides, time is calling, let us put an end to this. Life as a proletarian or death as a millionaire, which do you prefer?
Doubtless, Sir, you will tell me that religion, morality, or humanity that command us to help our fellow-men in trouble has nothing to do with (self) interest. I agree with you in this, but what do you have to say in reply to the following example?
An English missionary, off to convert the infidel, is shipwrecked on the way and reaches the island of … 1779 in a lifeboat with his wife and four children. Robinson, 1780 the owner of this island by right of first occupation, by right of conquest, and by right of working (the land), aims his shotgun at the castaway and forbids him to infringe his property. However, since Robinson is humane and has a Christian soul, he is willing to show this unfortunate family a neighboring rock that is isolated in the middle of the sea, a place where they may dry themselves and rest without fear of the ocean.
Since the rock does not grow anything, the castaway begs Robinson to lend him his spade and a small bag of seed.
"I will agree", said Robinson, "on one condition and that is that you will give me back 99 bushels of wheat out of every 100 that you reap."
THE CASTAWAY: That is an insult! I will give you back what you have lent me but on condition that you let me do the same for you some other time.
ROBINSON: Have you found one grain of wheat on your rock?
THE CASTAWAY: No.
ROBINSON: Am I doing you a service by giving you the means of cultivating your island and living by working?
THE CASTAWAY: Yes.
ROBINSON CRUSOE: Doesn't all service require payment?
THE CASTAWAY: Yes.
ROBINSON: Well then! The payment I ask for is 99 percent. That is my price.
THE CASTAWAY: Let us meet half way. I will give you back the sack of wheat and the spade with 5 percent interest. That is the legal rate.
ROBINSON: Yes, it is the legal rate where there is competition and when there is an abundance of goods, just as the legal price of bread is 30 centimes per kilogram when there is no shortage.
THE CASTAWAY: 99 percent of my harvest! That is theft and daylight robbery!
ROBINSON: Am I being violent towards you? Am I forcing you to take my spade and wheat? Are we not both free to act?
THE CASTAWAY: We have to be. I will die of work, but I have my wife and children! … I agree to everything and will sign for this. Lend me in addition your saw and axe so that I may build myself a hut.
ROBINSON: Just a minute! I need my axe and saw. It took me a week of work to make them. Nevertheless, I will lend them to you but on condition that you will give me 99 planks out of every 100 that you make.
THE CASTAWAY: Good heavens! I will give you back your axe and saw and present you with five of my planks in recognition of your trouble.
ROBINSON: In that case, I will keep my saw and my axe. I do not wish to force you. I am a free man.
THE CASTAWAY: But don't you believe at all in God? You are an exploiter of the human race, a Malthusian, a Jew! 1781
ROBINSON: Religion, Father, teaches us that 1782 "man has a noble destiny which is not limited to the narrow domain of industrial production. What is this purpose? This is not now the place to raise this question. But, whatever it is, what I can tell you is that we will not be able to achieve it if, bent under the yoke of inexorable and incessant work, we have no leisure to develop our bodies, affections, minds, our sense of beauty, what there is in our nature that is most pure and elevated. What then is the power that will give us this beneficial leisure, an image and foretaste of eternal happiness? It is capital." I worked once upon a time; I saved precisely in order to make you a loan: One day you will do the same as me.
THE CASTAWAY: Hypocrite!
ROBINSON: You are insulting me, farewell! You can just cut down the trees with your teeth and saw your planks with your nails.
THE CASTAWAY: I will yield to force. But at least, give me as charity a few herbs for my daughter who is ill. That will not cause you any trouble; I will go to pick them myself on your property.
ROBINSON CRUSOE: Just a minute! My property is sacred. I forbid you to set foot on it or you will have my gun to deal with. However, I am a good man; I will allow you to pick my herbs, but you will bring me your other daughter whom I think is very pretty …
THE CASTAWAY: Rogue! You dare to say such things to a father!
ROBINSON: Am I providi ng you all, you, and your daughters, a service by saving your life through my remedies? Yes or no?
THE CASTAWAY: Certainly, but look at the price you are asking.
ROBINSON CRUSOE: Am I taking your daughter by force? Is she not free? Are you yourself not free? And besides, would she not be happy to share my leisure with me? Would she not have her share of the income you are paying me? By making her my companion, am I not becoming your benefactor? Go away, you are just an ungrateful wretch!
THE CASTAWAY: Stop, landowner! I would prefer to see my daughter dead than dishonored. However, I will sacrifice her to save her sister. I only ask one thing of you, which is to lend me your fishing tackle, for it is impossible for us to live on the wheat you are leaving us. One of my sons will obtain extra food for us by fishing.
ROBINSON CRUSOE: So be it. I will provide you this additional service. I will do even more; I will take your other son off your hands and will take charge of his food and education. I will have to teach him to shoot, handle a sword, and live like me, without working. For, because I mistrust you all and you may well not pay me anything, I will be glad to have some assistance, should the need arise. Rascally paupers who demand loans with no interest! Impious people who do not want one man to exploit another!
One day, Robinson over exerts himself while hunting, catches a chill, and falls ill. His mistress, who is disgusted with him and is having an affair with his young companion, says to him: I will take care of you and cure you, but on one condition: You must give me all your property. Otherwise, I will leave you.
ROBINSON: Oh you whom I have loved so dearly and for whom I have sacrificed honor, conscience, and humanity, are you willing to leave me on my sick bed?
THE SERVANT: I never loved you and so I owe you nothing. If you kept me, I also gave you my body; we are quits. Am I not free? And, after having been your mistress, am I obliged now to be your nurse?
ROBINSON: My child, my dear child, I beg you to calm yourself! Be kind, be gentle, and be nice. I will make my will in your favor.
THE SERVANT: I want to be paid or I am leaving.
ROBINSON: You are killing me! Both God and Men are abandoning me. A curse on the universe! Let me be struck by a thunderbolt and may hell engulf me!
He dies in despair. 1783
P. J. PROUDHON
Letter No. 8 : F. Bastiat to P. J. Proudhon (24 December 1849)Proof of impossibility makes it unnecessary to examine possibility. - A protest against fatalism. - Immutable truths. - A judgment on travels through the fields of history. - Fables turned against their author. The laws of capital summarized in five propositions.
24 December 1849
Is free credit possible?
Is free credit impossible?
It is clear that to answer one of these questions is to answer the other.
You criticise me for a lack of charity because I am upholding the case for the second.
This is my reason for this:
Seeking to ascertain whether free credit is possible would have been to allow myself to be drawn into a discussion on the People's Bank, the tax on capital, the national workshops, and the organization of work , in a word, the thousands of ways in which each school of opinion claims to have achieved free credit. 1784 Whereas, in order for one to be sure that it is impossible , it was enough to analyze the essential nature of capital, which achieves my purpose and, in my view, yours.
Galileo was faced with fifty arguments against the earth's rotation. Did he have to refute them all? No, he proved that it turned and that said it all: E pur si muove (But nevertheless it moves).
You say that, as an innovator, you have the right to an examination. Doubtless, but above all society, as the defendant, has the right to have the charge against it proved. You bring capital and interest before the court of public opinion, accusing them of injustice and plunder. It is up to you to prove their guilt, and up to capital and interest to prove their innocence. You say that you have several ways of bringing them back to lawfulness. We must first of all find out whether they have strayed from this. The examination of your findings can come only later, assuming as it does that the accusation is well founded, which capital and interest deny.
This procedure is so logical that you agree to it in these words:
"Whether it is true or false, legitimate or illegitimate, moral or immoral, I said to you, I accept usury, I approve of it, I will even praise it; I will renounce all the illusions of socialism and make myself a Christian once more if you prove to me that the benefit provided by capital, as well as the circulation of financial assets, cannot under any circumstances be free of charge." 1785
Well, am I doing anything else? This is indeed my ground, to prove that capital bears within itself the unchallengeable right to be remunerated.
First of all, you combated this doctrine by using the theory of contradictions and then that of distinctions . Interest, you said, had a raison d'être in previous ages, but no longer has any today. It was an instrument of equality and progress, but is now only theft and oppression. And, on this theme, you quoted several institutions and customs that were initially legitimate and liberal and later became unjust and disastrous, such as torture, the ordeal by boiling water, slavery etc.
For my part I reject this cruel fatalism that consists in justifying all excesses as having served the cause of civilization. Slavery, torture, and judicial ordeals have not advanced, but have delayed the progress of the human race. This would have been true of interest if it had been, as you say, merely an abuse of force.
What is more, while some things change, others do not. Since the Creation, it has been true that the three angles of a triangle are equal to two right angles, and this will continue to be true until the Day of Judgment and beyond. In the same way, it has always been true and will always be so that accumulated labour , or capital, is worthy of reward.
You compare my logic with that of an entrepreneur who says: "What does steam, atmospheric pressure, and electricity matter to us? Is proving the reality and legitimacy of four-wheeled vehicles not proving that the invention of railways is an illusion?"
I accept the analogy but with the following proviso:
I acknowledge that the railway is an advance. I am happy that it lowers transport costs, but if anyone wished to conclude from this that transport should be free , if it were said that any transport cost was legitimate in former times but that the time had come for transport to be carried out free of charge, I would say that the conclusion was wrong. As progress continues, this cost should decrease constantly, but it cannot reach zero because there will always be some human work involved, a human service , which carries within itself the right to be remunerated..
S imilarly, I acknowledge that the cost of capital will decrease in accordance with its abundance. I acknowledge this and am happy about it, since capital will thus increasingly reach all classes and lighten the burden of work for them whatever utility is yielded. However, I cannot conclude that this constant decrease in interest will lead to its total disappearance, because capital will never generate spontaneously and always be a service that is more or less great, thus carrying within itself, just like transport, the right to be remunerated.
Thus, Sir, I do not see any reason to rule this debate out of court just when it is being concluded and it seems to me that there is not one of our readers who would not consider my task fulfilled if I proved the following propositions:
All capital (whether this is in the form of harvests, tools, machines, houses, etc.) is the result of previous work, and generates work subsequently.
Because capital is the result of previous work, the person providing it receives payment for it.
Because it generates work that comes later, the person borrowing it owes payment for it.
And you yourself say: "If the effort required of the creditor is zero, interest ought to become zero."
So, what have we to find out? This:
Is it possible for capital to be formed without any effort involved?
If it is possible, I am wrong, and credit ought to be free.
If it is not possible, it is you who are wrong, and capital has to be paid for. Whatever you do, the question can be summed up in these words: Has the time come, will it ever come, when capital develops spontaneously without the input of any human effort?
However, in an historical survey full of vigor that carries you off to Palestine, Athens, Sparta, Tyre, Rome, and Carthage, you go off on a tangent which I cannot permit. Well then! Before returning to the matter at hand, I will endeavor, if not to follow you, at least to take a few steps in your direction.
You begin thus:
"What makes interest on capital, which is excusable and even just at the beginning of the economic life of society, becomes true plunder and theft with the development of industrial institutions, is that this interest has no other principle or raison d'être than necessity or force. Necessity is what explains the requirement of the lender; force is what explains the resignation of the borrower. However, as necessity gives way to liberty in human relations and right succeeds force, capitalists lose their justification."
They lose more than that; they lose the only status you accord them. If, under the reign of liberty and law, interest continues to exist, it is probably because it possesses, whatever you say, another raison d'être than force .
In truth, I no longer understand your distinction . You said: "Interest was just in former times, it is no longer so." And what reason do you give for this? This one: "In former times, force held sway, now right does so." Far from concluding from this that interest has moved from legitimacy to illegitimacy, is it not the contrary that is to be deduced from your premises?
Certainly the factual record would confirm this deduction, for usury may very well have been odious when people became capitalists through pillage, while interest is justified once they became capitalists through work.
"It is in maritime trade that the origin of lending at interest should be sought. The practice of "bottomry" or whole ship cargo contracts, which was a type of contract used for private cargo, was its original form."
I believe that capital has a nature that is proper to it and that is perfectly independent of the method by which men transport their goods. Whether they travel and have their goods carried overland, by sea, or by air, in wagons, ships, or balloons, this neither grants nor takes away any rights to capital.
What is more, it is permissible to think that the practice of charging interest preceded the use of maritime trade. It is very probable that the patriarch Abraham did not lend flocks without keeping for himself a share in their increase and those who, after the flood, built the first houses in Babylon doubtless did not hand over the use of them without payment.
What then, Sir! Are these transactions which existed and were carried out voluntarily since the dawn of time under the names of rentals, interest, farm rent, leases, or rent for housing, not the products of the very essence of the human race! They are deemed by you to arise from contracts on private cargo!
Next, with regard to maritime contracts, you develop a theory of profit that I truly believe to be inadmissible. However, to discuss it here would be to stray from our subject.
Finally, you reach the root of all economic errors, that is to say, confusion between capital and cash; confusion that makes it easy to muddle the question. But you yourself do not believe this, and the only proof I need is what you once said to Mr. Louis Blanc: "Money is not wealth for society: it is quite simply a means of circulation which might be replaced to great advantage by paper, by a substance with no value ." 1786
Please believe therefore that when I talk about the productivity of capital (tools, implements, etc.) produced by work, I do not mean to attribute a miraculous power of reproduction to money. 1787
Shall I follow you, Sir, to Palestine, Athens, and Sparta? That is really not necessary. Just a word, however, on Moses' Non foenerabis . 1788
I admire the devotion that has gripped certain socialists (with whom I do not confuse you) since they have discovered a few texts in the Old and New Testaments, the Councils of the Church, and the Fathers of the Church to support their thesis. 1789 I will take the liberty of asking them this question: Do they mean to quote these authorities as being infallible with regard to science and social economy? 1790
They will certainly not go so far as to reply to me: We take to be infallible the texts that suit us and fallible those that do not. When sacred books are referred to in this connection and as being the depositories of the indisputable will of God, we have to accept it all or risk being accused of childish play-acting. Well then! Apart from a host of phrases in the Old Testament, which cannot safely be taken literally, there are in the Gospels other texts than the well-known Mutuum date (lend hoping for nothing thereby), 1791 from which they want to deduce free credit, including the following:
Blessed are those that weep.
Blessed are those that suffer.
The poor will always be with you.
Render to Caesar the things that are Caesar's.
Obey those in power.
Do not concern yourself with tomorrow.
Do as the lilies that neither spin nor weave.
Do as the birds, which neither plough nor sow.
If someone strikes you on the left cheek, turn the other one.
If someone steals your coat, offer him your robe as well. 1792
What would these Socialist gentlemen say if we based policy and social economy on one of these texts?
We are allowed to believe that when the Founder of Christianity said to his disciples: Mutuum date (lend hoping for nothing thereby), he meant to give them a piece of advice on charity, and not a lecture on political economy. Jesus was a carpenter and worked for a living. This being so, he could not make giving an absolute rule. I believe that I may add without being irreverent, that he was paid quite legitimately, not only for his work devoted to making planks but also for his work devoted to making saws and planes, that is to say, for his capital.
Finally, I cannot pass over the two fables with which you end your letter without commenting that, far from invalidating my doctrine, they condemn yours, for we can conclude that there should be free credit only if we can also conclude that work should also be unpaid. Your second tale struck me like a great sword thrust, but your first charitably equipped me with a breastplate capable of withstanding anything.
In fact, by what trick will you try to get me to admit that there are circumstances in which people are conscience bound to lend free of charge? You conjure up one of those extraordinary situations that silence all personal instincts and call into play principles resting on sympathy, such as pity, commiseration, devotion, or sacrifice. You conceive of an island dweller, well provided with everything. He encounters castaways cast up by the sea naked on the shore. You ask me if this island dweller may legitimately in his own interest take all possible advantage from his position, pushing his demands to the absolute limit, insisting on a thousand percent return on his capital, and even hiring it out to the ruination of their honor!
I can see the trap. If I reply: Oh, in this case, you have to fly to the assistance of your fellow man unconditionally and share everything up to the last crumb of bread with him. You would say triumphantly: At last my opponent has admitted that there are conditions in which credit ought to be free.
Fortunately, you have yourself supplied me with the reply to the first fable, which I would have invented if you had not done so first.
A man was walking along the banks of a river. He saw one of his brothers drowning and had only to extend his hand to save him. Could he in all conscience take advantage of the situation to demand the most extreme conditions and say to the unfortunate man struggling in the torrent: I am a free being and I am absolute master of my work. Die or give me your entire fortune!
I consider, Sir, that if an upright worker were to be in these circumstances, he would jump into the water without hesitation, without any calculation, and without speculating on payment or even thinking about it.
But here, please note, there is no question of capital; it is just a matter of work. It is work that, in all conscience, has to be sacrificed. Can you deduce from that that work should be free , as the normal rule governing human transactions and as a law of political economy? 1793 And because in an extreme case, the service ought to be free, will you abandon at the theoretical level your axiom of the mutuality of services ?
And yet, if from your second fable you conclude that people are always bound to make loans at no charge, from the first you ought to conclude that people are always obliged to work for no pay.
The truth is that, in order to elucidate one question of political economy, you have thought up two examples in which all the laws of political economy are suspended. Who has ever thought of denying that, in certain circumstances, we are obliged to sacrifice capital, interest, work, life, reputation, affections, health, etc.? But is this the law that governs ordinary transactions? And is not resorting to examples like this in order to establish the necessity for free credit or free work, also an acknowledgement of the impossibility of making such unpaid activities part of the ordinary course of things?
You, Sir, are trying to find what the consequences of interest-bearing loans are on the working class and you list a few, inviting me to make them a future topic for this debate.
I do not deny that, among your objections, some are quite plausible and even very serious. It is even impossible to tackle them one by one in a letter; I will endeavor to refute all of them at once simply by setting out the law governing, in my view, the division of the products of the co-operation between capital and labor, and it is by this route that I will return to my modest world of economics.
Allow me to establish five propositions, which I consider to be mathematically provable;
1. Capital makes work more productive .
It is very clear that greater results are obtained with a plough than without one, with a saw than without one; with a road than without one; with basic supplies than without them, etc., from which we can conclude that the intervention of capital increases the the total quantity of products to be shared.
2. Capital is work
Ploughs, saws, roads, and supplies do not make themselves unaided, and the work to which we owe them has the right to be paid for.
I am obliged to remind you here of what I said in my last letter on the difference in the method of payment when applied to capital or work. 1794
The effort made by a water carrier every day has to be paid for by those who benefit from this daily undertaking. However, the trouble he has gone to in order to manufacture his wheelbarrow and barrel has to be paid for by an indeterminate number of consumers.
In the same way, sowing, ploughing, hoeing, and harvesting concern only the current harvest. However, the fences, land clearing work, drainage, and buildings form part of the cost price of an undefined series of successive harvests.
A different example is the current work by a shoemaker who makes shoes, a tailor who makes suits, a carpenter who makes beams, or a lawyer who drafts legal documents; a further example is the accumulated work required by lasts, 1795 workbenches, saws, and the study of law.
For this reason, the work done by the first category is paid for by a wage and that done by the second category by a combination of interest and amortization which is nothing other than wages ingeniously spread over a host of consumers.
3. As capital increases, interest decreases, but in such a way that the total income of the capitalist increases .
This happens with no injustice and without prejudicing labor because, as we shall see, this extra income of the capitalist is taken from the additional product that results from capital.
What I am stating here is that, although interest decreases, the total income of capitalists is bound to increase, and this is how:
Take a capital amount of 100 and an interest rate of 5 percent. I say that the interest rate cannot fall to 4 percent without capital increasing to at least 120. The fact is that no one would be motivated to increase capital if the result were bound to be a decrease or even a stagnation of income. It is absurd to say that if capital was 100 and income 5 percent, capital could be raised to 200 with the rate decreasing to 2, for in the first case people would have 5 francs of rent 1796 and in the second only 4. The appropriate course of action would be too easy and too convenient: people would consume half of their capital to achieve the same income.
Thus, when interest is decreased from 5 percent to 4, from 4 to 3 and from 3 to 2, this means that capital has increased from 100 to 200, from 200 to 400 and from 400 to 800, and that capitalists receive respectively as income 5, 8 and 12. And labor loses nothing thereby, far from it, for it had available to it a productive force equal only to 100, then one equal to 200 and finally equal to 800, within a context in which it pays less and less for a given quantity of this productive force.
It follows from this that the calculators who say that "Interest is decreasing, therefore it is bound to end" are quite inept. Goodness! It is decreasing with regard to each 100 francs, but it is precisely because the number of 100 franc amounts is increasing that interest is decreasing. Yes, the multiplier is decreasing, but this is the result of the very reason that increases the multiplicand, and I defy the God of Arithmetic himself to conclude from this that the product will thus reach zero. 1797
4. As capital increases (and with it, output), the ABSOLUTE SHARE due to capital increases and its PROPORTIONAL SHARE decreases .
This needs no further demonstration. Capital draws respectively 5, 4, and 3 percent for each 100 francs it contributes to the business association; 1798 thus its relative share decreases. But as it contributes successively 100 francs, 200 francs, and 400 francs to the business, it is seen to draw as its total share initially 5 francs, then 8, 12 and so on; thus its absolute share increases.
5. As capital increases (and with it, output), the proportional share and the absolute share received by labor both increase.
How can it be otherwise? Since capital sees its absolute share increasing while it receives respectively just 1/2, 1/3, 1/4 ,and 1/5 of the total output, labor, which gains 1/2, 2/3, 3/4, and 4/5 obviously gains a gradually increasing share, both proportionally and absolutely.
The law governing this distribution may be illustrated to readers through the following figures, which do not pretend to be accurate, but which I am producing to clarify my thought:
Total product | Share due to capital | Share due to labor | |
1 st period | 1000 | 1/2, or 500 | 1/2, or 500 |
2 nd period | 1,800 | 1/3, or 600 | 2/3, or 1200 |
3 rd period | 2,800 | 1/4, or 700 | 3/4, or 2100 |
4 th period | 4,000 | 1/5, or 800 | 4/5, or 3200 |
From these figures we can see how the progressive increase in output that corresponds to the progressive increase in capital explains this twin phenomenon, that is to say, that the absolute share due to capital increases whereas its proportional share decreases, while the share due to labour increases simultaneously in both aspects.
The result of all the preceding is as follows:
In order for the lot of the masses to improve, the return to capital has to decrease.
In order for interest to decrease, capital has to increase.
In order for capital to increase, five things are needed: activity, savings , freedom, peace ,and security .
And these benefits, which are important for everyone, are even more important for the working class.
It is not that I deny the sufferings of workers, but I say that they are on the wrong track when they attribute this suffering to infamous capital. 1799
This is my theory. I am setting it out with confidence in the readers' good faith. It has been said that I had set myself up as the advocate of capitalist privilege . It is not up to me, but up to my theory to reply.
I am bold enough to say that this theory is consoling and consistent. It encourages unity between the classes; it shows that there is agreement between our principles, it destroys the antagonism between people and ideas, and satisfies both the mind and the heart.
Is this also true of the theory that acts as the new fulcrum for socialism? The theory that denies capital any right to a reward? which sees only contradiction, antagonism, and plunder everywhere? which sets one class against the other and depicts injustice as a universal plague of which all men are to some extent both guilty and a victim?
If, in spite of this, free credit is true, it has to be accepted: Fiat justicia, ruat coelum (Let justice be done though the heavens fall). But what if it is false?
For my part I hold it to be false and in ending this letter, I thank you for having honestly given me the opportunity of combating it.
FRÉDÉRIC BASTIAT
Long footnote from Letter 8This law of decrease or divisibility, 1800 that an infinite number of divisions will never reaches zero, is well known to mathematicians and governs a host of economic phenomena and has not been sufficiently observed.
Let us quote a familiar example:
Everyone knows that in a wealthy and highly populated district in a large town, you can increase revenue while reducing sales prices. This is what is familiarly spoken of as: " Making up for it on quantity ".
Let us take four knife sellers, one in a village, another in Bayonne, a third in Bordeaux, and the fourth in Paris.
We might have the following table:
Number of knives sold | Profit per knife | Total profit | |
Village | 100 | 1 fr. | 100 fr. |
Bayonne | 200 | 75 | 150 |
Bordeaux | 400 | 50 | 200 |
Paris | 1,000 | 25 | 250 |
Here we can see the multiplier (the second column) decreasing constantly because the multiplicand (the first column) increases constantly; the constant increase in the total product (the third column) rules out the idea that the multiplier will ever reach zero even if you moved from Paris to London and to towns that are increasingly large and wealthy.
What has to be observed here is that buyers cannot complain about the gradual increase in the total profit achieved by the merchant, for what interests them as buyers is the profit levied proportionally on them as payment for the service provided and this profit decreases constantly. Thus, from different points of view, the seller and buyer both progress simultaneously.
This is the law of capital. It is well known and also reveals the harmony of interest between capitalists and the proletariat and their simultaneous advance.
Letter No. 9: P. J. Proudhon to F. Bastiat (31 December 1849)A serious accusation. - The refutation of five propositions. -Arguments drawn from operations carried out by the Bank of France. - The misdeeds of this Bank.
31 December 1849
You have misled me.
I expected a serious dispute with you, but your letters are just repeated and boring hoaxes. If you had made a pact with usury to obfuscate the question and prevent our debate from reaching a conclusion by loading it with extraneous incidentals, trivialities, and mere quibbles, you could not have done better!
Please tell me, what is the question we are discussing? It is to establish whether interest on money should be abolished or not. I myself have told you that this is the fulcrum of socialism and the mainspring of the Revolution.
A vital preliminary question therefore arises, that of knowing whether it is in reality possible to abolish this interest. You say no, I say yes; which of us should be believed? Obviously, neither. The matter has to be examined, as common sense dictates and the most elementary notion of equity prescribes. You, on the contrary, reject such an examination. For the two months during which we have opened these solemn proceedings in which capital was to be judged and usury condemned or acquitted in La Voix du Peuple , you have not ceased to reiterate to me in a variety of tones the same old story:
"Capital, as I understand it and as its essential nature appears to me, is productive. This conviction is enough for me; I do not wish to know any more. Besides, you acknowledge that by making interest-bearing loans I am providing a service and not acting as a thief; why then do I need to listen to you? When I have proved that free credit is impossible according to my system and you have agreed that an honest man may, with a perfectly clear conscience, draw an income from his funds, you ought to also accept the fact that free credit is impossible. What is demonstrated to be true in one system cannot become false in another. Otherwise we would have to say that a thing can be true and false simultaneously, which is something my mind absolutely refuses to understand. I will not abandon this position." 1801
Where, Sir, did you learn, I do not say to reason, since it appears from the outset of this polemic that reasoning in your case is reduced to stating and confirming your proposition constantly without invalidating that of your opponent, but to engage in debate? The most junior lawyer's clerk will tell you that in any debate the propositions of each party have to be examined successively and with full discussion on both sides and, since we have taken the general public to be our judge, it is obvious that, once your argument has been set out and debated, mine has to be dealt with.
With you, things do not happen in this way. Satisfied as you are with the concession I made to you, that is to say, that in the current state of affairs interest-bearing loans cannot be considered as illicit acts, you take it as demonstrated that interest is necessary and thereupon, on the pretext that you do not know the least thing about antimonies, you contrive to rule the debate out of court, forcing me to shut up. Is this a discussion, I ask you?
Obliged to do this by such strange conduct, I made one step toward you. My method of demonstration seemed to cause you some trouble: I therefore abandoned this method and showed you, using the standard form of reasoning, that everything changes in society, that what at one time signified progress at another became a fetter, such that if we disregard the given time, the same idea or fact changes its character completely depending on the aspect under which it is considered. Nothing contradicts the belief that interest is exactly in this situation. Consequently your plea of inadmissibility cannot be accepted and you most decidedly do have to examine with me the hypothesis of free credit and the abolition of interest.
What is your answer to this? I scarcely dare to remind you of it. Because out of regard for you I thought it my duty to change my method, you first of all accuse me of prevarication and then of fatalism ! I have done with you, if I may be allowed the comparison, what mathematics teachers do with their pupils when a proof causes difficulty; they substitute another, more within their grasp. For, and you Sir should note this well, Hegelian dialectic, while it is not the whole of logic, is to syllogism and inference what differential calculus is to standard geometry. You may laugh at this, since human minds have the right to laugh at anything once they have understood and worked it out, but it does have to be understood, otherwise laughter is just a grimace by the foolish. And you, as a prize for my readiness to cooperate, reward me with sarcasm: to listen to you, I am just a sophist. Is this serious argument?
I will go even further. You said, and I quote your own words, " Show me how interest becomes illegitimate after being legitimate and I will agree to discuss the theory of free credit ." 1802
To satisfy this desire, which incidentally is very reasonable, I gave the history of interest and wrote a biography of usury. I showed that the cause of this practice lay in a concourse of political and economic circumstances beyond the control of the contracting parties and inevitable at the dawn of society, that is to say: 1. The incommensurability of values resulting from the fact that industries are not independent entities and from the absence of any terms of comparison; 2. The risks attending trade; 3. The custom, introduced at an early time among traders and which gradually became regular and generalized, of imposing a proportional extra sum as a fine or indemnity ( damages and interest ) on any debtors in arrears; 4. The preponderance of precious metals and coinage over other forms of goods; 5. The combined use of private cargo contracts, insurance, and whole ship contracts , and finally 6. The establishment of land rent based upon the idea of interest on cash, and which once accepted without demur by the sophists, was later employed to justify this very same interest.
To complete the demonstration, I then proved, through a simple arithmetic calculation, that interest, excusable as an accident in the conditions in which it first arose and where it subsequently developed, becomes absurd and an act of plunder as soon as attempts are made to generalize it and make it a RULE of public economic life; that it is in clear contradiction with economic principles, that in society, net product is equal to gross product so that any levy taken by capital from production constitutes an accounting error and an impossibility in terms of social equilibrium. Finally, I showed that although in another age interest was a stimulus to the circulation of capital, it is now, like the tax on salt, wine, sugar, meat, and even the Customs Service itself, just a hindrance to this circulation. It must now be linked with the stagnation of business, with unemployment in industry, distress in agriculture, and the increasing imminence of universal bankruptcy.
All this was a matter of history, theory, and practice, as much as a matter of calculation. You yourself noted that at no time did I call upon fraternity, philanthropy, the authority of the Gospels, and the Fathers of the Church against interest. I have very little faith in philanthropy; as for the Church, it has never understood anything about this subject and its casuistry, from Christ to Pius IX, 1803 is quite simply absurd. I repeat, absurd, both when it condemns interest with no consideration for the circumstances that excuse and require it and when it limits its anathema to usury on money and accepts, so to speak, usury on land.
What is your reply to this exposition, whose interest you yourself appreciated? What is your reply in your fourth letter? Nothing.
Do you deny history? You do not.
Do you question my calculations? No.
What, therefore, are you saying? You utter your constant refrain: He who lends is providing a service: this proves that capital carries within itself the unchallengeable right to be remunerated . After which, you give me, as an expression of the wisdom of centuries, five or six aphorisms that are excellent for anaesthetizing uneasy consciences but which, as I will prove to you in a moment, are everything that the most brutish habit has ever caused to be uttered as flagrant absurdities. Then, making your sign of the cross, you declare the discussion closed. Amen !
Mr. Bastiat, you are an economist and a member of the Academy of Moral and Political Sciences, 1804 a member of the Chamber's Finance Committee, 1805 a member of the Peace Congress, 1806 a member of the Anglo-French League for Free Trade, 1807 and what is better than all these, an upright man and a man of intelligence. Well then! To safeguard your intellect and honesty, I am obliged to prove to you, by A plus B, that you do not know the first thing about the things you have undertaken to speak of, neither about capital, nor interest, prices, value, circulation, finance, or political economy as a whole, any more than you do about German metaphysics.
Have you ever in your life heard of the Bank of France? Do me the honor, some time, of entering it; it is not far from the Institute. 1808 You will find Mr. d'Argout 1809 there who, with regard to capital and interest, knows more than you and all the economists at Guillaumin. 1810 The Bank of France is a company made up of capitalists, formed about fifty years ago following the solicitation of the state, and by a privilege awarded by the State, in order to practice usury across the entire territory of France. 1811 Since its foundation, it has never ceased to grow constantly: by adding the departmental banks to it, the February Revolution has made it the leading power in the Republic. The principle on which this company was formed is exactly yours. They said: "We have acquired our capital through our work or by the work of our fathers. Why then, by making one of its tasks to ensure the circulation of credit and putting it at the service of our country, should we not draw from it a legitimate revenue when landowners draw income from their land, when house builders draw rent from their houses, when businessmen gain from their goods profit that is larger than their management expenses, or when workers who assemble our parquet floors include in the price of their day's work a quantum (an amount) for the wear and tear of their tools, a quantum which will surely exceed what is necessary to amortize the sum they have cost them?
As you see, this line of argument is extremely plausible. This is the counter argument that was used in all ages, and quite rightly so, against the Church, when it wanted to confine its condemnation exclusively to interest and not to rent; this is the theme that runs through each of your letters.
Well, do you know where this fine line of reasoning has led the shareholders of the Bank of France, all of whom I hold, along with Mr. d'Argout to be highly upright men? To theft, yes Sir, the most incontrovertible, shameless, and detestable theft. For it is this theft, alone, that has since February brought production to a stop, prevented business from functioning, caused people to die of cholera, 1812 hunger and cold, and, with the secret aim of restoring the monarchy, instilled despair in the working classes.
Above all, it is here that I propose to show you how interest turns from being legitimate to being illegitimate and, what will surprise you even more, how credit that is paid for, from the instant it ceases to engage in theft and claims only the amount legitimately due to it, becomes free credit.
What is the capital of the Bank of France?
90 million, according to the latest inventory. 1813
What is the legal interest rate agreed upon between the Bank and the State? 4 percent per year.
Therefore the annual legal and legitimate product of the Bank of France, the fair price for its services is 4 percent per year on a capital of 90 million, or 3 million 600 thousand francs of revenue.
3,600,000 francs, this is what, in line with the fiction of the productivity of capital, commerce in France owes the Bank of France each year in payment for its capital of 90 million.
In these circumstances, the shares of the Bank of France are like buildings that regularly yield 40 francs of income; they were issued at 1,000 francs and are worth 1,000 francs.
Well, do you know what happens?
Consult the same inventory: you will see that the said shares, instead of being quoted at 1,000 francs are quoted at 2,400. Last week, they were 2,445 and if the portfolio expands, they will increase to 2,500 and 3,000 francs. This means that the capital of the Bank, instead of earning it 4 percent, the legal, agreed rate, produces 8, 10, and 12 percent.
Has the capital of the Bank doubled or tripled then? This is, in fact, what should happen in accordance with the theory set out in your third and fourth propositions, that is to say that interest decreases as capital increases, but in such a way that the total revenue of capitalists increases .
Well, this is not so. The capital of the Bank has remained the same, 90 million. The only thing is that the Company, because of its privilege, and using its financial machinery, has found the means of operating with regard to commerce as though its capital was no longer only 90 million but 450, that is to say, five times greater.
Is this possible, you will say? This is the procedure; it is very simple and I am equipped to talk about it: this is precisely one of the procedures that the People's Bank proposed to use to achieve the elimination of interest.
To avoid the carrying about of cash and the awkward business of the handling of écus, the Bank of France uses credit vouchers called Bank Notes that represent the money it has in its vaults. It is these Notes that are normally issued to its customers against letters of credit and bills of exchange that they bring to it, the redemption of which it undertakes to manage with guarantees, however, for both drawers and drawees.
The Bank's paper thus has a double guarantee: the guarantee of the écus in the treasury and the guarantee of the commercial paper in the portfolio. The security provided by this double guarantee is so great that it is common in commerce to prefer the paper to the specie that everyone is as happy to have in the Bank as in his own chest of drawers.
It might even be conceived in the extreme case that, using this procedure, the Bank of France could do without capital resources at all and allow discounts without cash. In effect since the commercial paper that it discounts and against which it hands out notes have to be reimbursed to the Bank at their due date by an equal sum, either in money or in notes, it would be enough for the holders of notes never to entertain the idea of converting them into écus, for the operation to be conducted entirely in paper. In this case, circulation would no longer be based on the credit of the Bank, whose capital would thus be withdrawn from service, but on public credit, through the general acceptance of the notes.
In practice, things do not happen exactly as the theory indicates. We have never seen Bank paper substituted entirely for cash; there is merely a trend toward this substitution. Well, let us note what results from this trend.
Speculating in total security on public credit and, incidentally, sure of recovering its outlay, the Bank does not limit its discounts to the growth of its balances; it keeps issuing more notes than it has money, which means that, for part of its holdings, instead of depositing assets subject to a genuine valuation and operating genuine exchanges, it merely carries out a set of transfers of accounts or entries with no capital involved. What takes the place of capital in the Bank here is, I repeat, established custom, the confidence of trade, in a word, public credit.
It thus appears that the discount rate should decrease in proportion to the over-issue of notes, that if, for example the Bank's capital is 90 million and the total of notes issued 112 million, then since the fictitious capital 1814 is one quarter of the genuine capital, the discount rate of 4 percent should fall to 3 per cent. What could be fairer, in fact? Is public credit not public property? Is not the sole guarantee for the notes over-issued by the Bank the reciprocal obligations of citizens? Is acceptance of this paper with no guarantee in metal not exclusively based on their mutual trust? Is it not this trust that alone creates the likelihood of such an acceptance? In what way has the Bank's capital intervened in this? How does the guarantee seem to operate?
This simple glimpse may enable you to judge how false your proposition number 3 is, according to which a fall in interest follows from an increase in capital. Nothing is more wrong than this proposition; on the contrary, both theory and the practice of all the banks proves that a bank may well draw interest of 4 percent from its capital by setting its discount rate at 3 percent; we will shortly see that it can go very much lower.
Why therefore does the Bank that, with a capital of 90 million, issues in our hypothetical case 112 million in notes; which consequently operates, by means of public credit, as though its capital has increased from 90 million to 112, why, I say, does it not reduce its discount rate in the same proportion? Why is interest at 4 percent received by the Bank as income from loaning capital that is not its property? Can you give me one reason to justify this excess receipt of 1 percent on 112 million? As for me, Sir,
"I call a spade a spade and Rollet a rascal," 1815
And say quite plainly that the Bank is STEALING. 1816
But this is nothing.
While the Bank of France is issuing notes instead of écus, part of its receipts continues to be in cash, so that, the initial capital always remains the same, 90 million, the amount received, that is the accumulation of cash paid into the Bank is gradually raised to 100, 200, or 300 million: today it is 431 million! 1817
This accumulation of money, in which some people have a mania for indulging, is the decisive fact that nullifies the theory of interest and which demonstrates most palpably the necessity for free credit. It is easy to ascertain the truth of this.
It is admitted in theory that an exchange of products can be carried out perfectly well without the use of money; you yourself acknowledge this and all economists know this. Well, what the theory shows is exactly what practice is carrying out before our very eyes. As the circulation of fiduciary media gradually replaces the circulation of metallic currency, as paper is preferred to écus, with the public preferring to settle their accounts with cash rather than notes, and the Bank being constantly encouraged to issue new bank notes, either by the borrowing needs of the State or by those of the commercial interests who turn en masse to get their commercial paper discounted, or for any other reason, the result is that gold and silver are removed from circulation and are swallowed up by the Bank. Here we can see, when they are added to the existing holdings, the bank's ability to multiply the number of notes becomes literally infinite.
It is through this conversion that the Bank's holdings have reached the huge sum of 431 million. The result of this fact is that the Company of the Bank, in spite of the renewal of its privilege, is no longer the sole titleholder: because of the increase in its holdings, it has acquired an associate more powerful than itself. This associate is the country, one that figures each week in the balance sheet of the Bank of France to the tune of a sum that varies from 340 to 350 million. And since the interest is joint and indivisible, it can truly be said that it is no longer the company that gained its charter in 1803 that is the banker; it is no longer the State that gave it its warrant either: it is commerce, industry, all the producers, and the entire nation which, by accepting the Bank's paper and preferring it to écus, are its true guarantors, guarantors who are also founders, as a replacement for the former Bank of France with a capital of 90 million, of a National Bank with one of 431 million.
A decree from the National Assembly, whose object would be to reimburse the shares in the Bank of France and convert it into a Central Bank in which every French citizen would be a silent partner, would just be a declaration of this now accomplished fact of the absorption of the company into the nation.
This having been set out, I will return to the reasoning I put forward a short time ago.
The interest agreed upon between the Company and the State is 4 percent per year on its capital.
This capital amounts to 90 million.
Bank holdings today, on 31 December 1849, are 435 million.
The value of notes issued is 436 million.
The capital, real or notional, on which the Bank operates, having been multiplied almost five-fold, the discount rate ought to be reduced to one fifth of the interest stipulated in the founding articles of the Bank to something approaching ¾ percent.
You should note, Sir, that your propositions are very far from being as solid as Euclid's. It is not true, and the facts I have just quoted to you prove it irrefutably, that interest falls only as capital increases progressively. Between the price of goods and the interest on capital, there is not the slightest analogy; the law governing their fluctuation is not the same, and all you have been harking on about in the last six weeks with regard to capital and interest is entirely devoid of reason. The universal practice of banks and the spontaneous reasoning of the people show you to be most humiliatingly wrong on all of these points.
Would you now believe, Sir, for truly you do not appear to me to be up to date on anything, that the Bank of France, a company of upright men, philanthropists, and God-fearing men who are incapable of compromising their consciences, continues to take 4 percent on all its discounts without allowing the public to benefit from the slightest relief? Would you believe that it is on this basis of 4 percent on a capital of 431 million which is not its property, that it manages the dividends of its shareholders and has its shares quoted on the Stock Exchange? Is this sort of thing theft, yes or no?
We have not reached the end of this. I have told you only the smallest part of the misdeeds of this company of speculators, set up deliberately by Napoleon with the aim encouraging state and landowner parasitism 1818 to prosper by sucking the blood of the people. It is not that a few million more or less that can affect a nation of 36 million people in any dangerous way. What I have revealed to you of the larceny of the Bank of France is just a trifle; it is its consequences that we must consider above all.
The Bank of France now holds in its hands the fortune and destiny of the nation.
If it gave a reduction in the interest rate to industry and commerce in proportion to the increase in its holdings, if in other words, the cost of its credit was reduced to ¾ percent, which it ought to do to distance itself from any hint of theft, this reduction would instantly produce incalculable results all over the Republic and around Europe. A book would not be enough to list them: I will limit myself to pointing just a few of them out to you.
If, the rate of interest at the Bank of France, renamed the National Bank, was ¾ percent instead of 4, ordinary bankers, notaries, capitalists, and even the shareholders of the Bank itself would shortly be obliged through competition to reduce their rates of interest, discounts, and dividends to a maximum of 1 percent, including transaction costs and commission. What harm do you think would this reduction do to unsecured debtors or commerce and industry, whose annual charge under this heading alone is at least two billion?
If the circulation of money was carried out at a discount rate that represented merely the administrative and drafting costs, registration, etc., the interest on future sales and purchases made with term loans (on credit) would fall in its turn from 6 percent to zero, which would mean that business would then be carried out at cost and there would be no more debts. How far do you also think the shameful figure for suspended payments, insolvencies, and bankruptcies would fall?
However, in the same way as in society net product is indistinguishable from gross product, so in the overall make-up of economic reality capital is indistinguishable from output. These two terms in fact do not designate two distinct things; they distinguish only relationships. Output is capital, capital is output; the only difference between them lies in domestic economics; it is nil in political economy. If therefore interest, once it has fallen to ¾ percent for cash, that is to say zero since ¾ percent no longer represents any more than the Bank's service, fell again to zero for goods, through the analogy of principles and facts, it would fall again to zero for buildings. Farm rents and house rents would end up being merged in amortization. Do you believe, Sir, that that would prevent people living in houses and tilling the earth?
If, thanks to this essential reform of the system of circulation, labor no longer had to pay capital any more than a rate of interest that represented a fair price for the service provide d by capitalists, since money and buildings no longer had any reproductive value and would be regarded merely as products , as things that were consumable and fungible, the favor which now attaches to money and capital would be directed entirely toward products; each person, instead of limiting his consumption would think only of extending it. Whereas today, thanks to the ban laid on consumer products by interest, markets for consumption remain permanently and gravely inadequate, production in its turn would no longer suffice, and labor would be guaranteed employment both de facto and de jure.
As the labouring class would gain at one fell swoop about 3 billion in interest that is taken from it out of the 10 it produces, plus 5 billion that this same system of interest payments causes it to lose through unemployment, plus 5 billion that the parasitic class, 1819 cut off from its customary revenue, would then be forced to produce, national production would be doubled, and the well-being of workers quadrupled. And you, Sir, whom the cult of interest does not prevent in the slightest from raising your thoughts to another world, what have you to say of this change in the world here below? Is it clear now that it is not the multiplication of capital that decreases interest but on the contrary the decrease in interest that multiplies capital?
But all this does not please our Capitalists friends, and it is not at all to the taste of the Bank. The Bank holds the horn of plenty entrusted to it by the nation in its hand: this is the 341 million in cash accumulated in its vaults, which is such a great testimony of the power of public credit. To revive production and spread wealth everywhere, the Bank would have to do just one thing: reduce its discount rate to the figure required for the production of interest at 4 percent on 90 million. It does not want to do this. For a few million more to distribute to its shareholders, money which it steals, it prefers to have the country lose 10 billion on what is produced each year. In order to pay for this parasitism, to put vice in its pay, to satisfy the profligacy of two million functionaries, speculators, usurers, prostitutes, and informers and keep this leprosy of a government going, it will cause thirty-four million souls 1820 to rot in poverty if necessary. Once again, is this not theft? Is it not pillage, armed robbery, premeditated murder, and ambush?
Have I said everything? No, for I would need ten volumes, but I must put an end to this. I will end with a reference, which I for my part consider to be the very masterpiece of its kind, to which I draw your undivided attention. Advocate of capital that you are, you do not know all its machinations.
The sum total of cash, I will not say that exists but that circulates in France, including the receipts of the Bank, does not exceed 1 billion, according to the most common estimate. 1821
At 4 percent interest (I always calculate on the hypothesis of credit paid), the people who work owe a total of 40 million each year to service this capital.
Could you, Sir, tell me why, instead of 40 million, we pay 1,600 million, I repeat, sixteen hundred million , as payment for this said capital?
1,600 million, 160 percent, you say! Impossible!
Did I not tell you, Sir, that you know nothing about political economy. Here is the factual case that is still an enigma to you, I am sure.
The total of mortgaged debt, according to the best informed writers, is 12 billion, and some put it at as much as 16 billion, so: | 12 billion. |
Capital invested by unsecured creditors, at least: | 6 billion |
Partnerships, about: | 6 billion |
To which should be added the public debt: | 8 billion |
Total: | 28 billion |
[fn 12 billion in table] 1822
A debt that farming, industry, commerce, in a word, the whole work-force, which produces everything, and the State that produces nothing and for which the work-force pays, owe to capital.
All these debts, and note this point, arise from money lent or supposed to have been lent, sometimes at 4 percent, sometimes at 5, 6, 8, 12, and up to 15 percent.
I will take an average of 6 percent interest for the first three categories, that is to say, 1,200 million on 20 billion. Add the interest on the public debt, approximately 400 million: 1823 a total of 1,600 million in annual interest on a capital of 1 billion.
Well, tell me, is it also the scarcity of money that is the cause of the exorbitant multiplication of this usury? No, since all these sums have been lent, as we have just said, at an average rate of 6 percent. How then does interest stipulated to be 6 percent become interest at 160 percent? I am about to tell you.
You will know, Sir, you who believe that all capital is naturally and of necessity productive, that this productivity does not happen equally for all, that it is habitually exercised under two kinds only, the kind known as fixed (land and houses) when this investment is to be found, which is neither always easy nor always safe, and the kind known as money. Money, above all, money! This is capital par excellence, capital that is lent, that is to say that is hired out, is to be paid for, and produces all these financial marvels that we see developed in detail at the Bank, in the Stock Exchange, and in all the workshops 1824 of usury and interest.
However, money is not at all something that can be exploited like land, nor that can be consumed by use like a house or a suit. It is nothing other than a token for exchange which is accepted by all traders and producers and with which you who manufacture clogs may obtain a cap. Through the agency of the Bank, paper is being substituted gradually for cash with the consent of all. All this is in vain, however. Preconceived ideas are holding their own, and if bank paper is accepted with the equal status of money, it is because people flatter themselves that they can exchange it for money at will. People want only money.
When I borrow money, it is therefore basically to have the ability to exchange present or future but as yet unsold products. Money in itself is useless to me. I take it only in order to spend it; I neither consume it nor cultivate it. Once the exchange has been concluded, money becomes available again and consequently capable of giving rise to a new loan. This is consequently what takes place, and since, through the accumulation of interest, the money-as-capital 1825 always returns to its source through a succession of exchanges, it follows that its re-lending, always by the same person, always benefits that same person.
Will you say that, since money facilitates the exchange of capital and products, the interest paid is not so much for the money than for the capital which is exchanged and that in this way 1,600 million in interest paid for 1 billion of cash represents in reality the returns for 25 to 30 billion of capital? This has been said or written somewhere by an economist of your school. 1826
An allegation like this cannot be supported for a minute. How is it, pray, that houses are rented, land is rented, and that goods sold on installment bear interest? This happens precisely because of the use of money, money that intervenes, like a tax agent, in all transactions, money that prevents houses and land from being exchanged instead of being rented and goods being sold for cash. Hence with money intervening everywhere like some supplementary capital, an agent for circulation, or an instrument of guarantee, it is really money that has to be paid and really the service it provide s that has to be remunerated.
And since on the other hand we have seen from our account of the workings of the Bank of France and the consequences of the accumulation of its receipts, that a capital of 90 million in cash that ought to produce interest at 4 percent, allows, depending on the volume of the Bank's business transactions, discounts of only 3, 2, 1, and ¾ percent, it is very clear that the sole aim of the 1,600 million in interest that the people pay their usurers, bankers, property owners, notaries ,and silent partners is to pay the return on a billion in gold and money, unless you prefer to acknowledge as I do that this 1,600 million is the product of theft. …
I told you, Sir, right from the outset of this dispute and I repeat it now, that it has never entered my head to accuse the men involved. What I am incriminating are the ideas and institutions. From this point of view, throughout this discussion, I have been more just than the Church and more charitable than the Gospel itself. You have seen with what care I have separated men from institutions and knowledge of the facts from theories in dealing with the question of interest-bearing loans. Never will I accuse society: despite all the crimes of my fellow men and the vices in my own heart, I believe in the sanctity of the human race.
However, when I reflect that it is against follies like this that the Revolution is now in the throes of discussion, when I see millions of men sacrificed to such appalling utopias, I am ready to give way to my misanthropy and I no longer have the heart to continue with the refutation. This being so, I try to elevate and ennoble the poverty of my subject through the sublimation of dialectic: your merciless routine constantly brings me back to hideous reality.
Production to be doubled,
Workers' well-being to be quadrupled:
This is what, in twenty-four hours we could achieve if we wished, through a simple reform of the bank and with no dictatorship, no communism, no phalanstery, no Icarianism, and no Triad. 1827 A decree in twelve articles from the National Assembly; a simple declaration of the fact that the Bank of France, through an increase of its cash, has become the National Bank and that, as a result it will have to operate in the name of and on behalf of the nation with the discount rate reduced to ¾ percent, would achieve three-quarters of the Revolution.
But this is what we do not want and what we refuse to understand, so profoundly has our political chatter and our parliamentary exaggeration stifled both moral and common sense in us,
This is what the Bank of France, a bastion of parasitism, does not want,
This is what the government, created precisely to support, protect, and encourage parasitism, does not want,
This is what the majority of the National Assembly, made up of parasites and the abettors of parasites, does not want,
This is what the minority, their heads turned by the thought of government, who ask themselves what society would become if there were no more parasites, do not want,
This is what the socialists themselves, the so-called revolutionaries for whom freedom, equality, wealth, or work are nothing if they have to abandon or merely postpone their illusions and give up the hope of being in government, do not want,
This is what the proletariat, bewildered by social theories, toasts to love, and fraternal homilies, do not know how to ask for.
Go on then, capital; continue to exploit this destitute people! Devour the bourgeoisie in a daze, inflict pressure on the workers, hold the peasantry to ransom, swallow up childhood, prostitute womankind, and keep your favors for the cowards who denounce others, the judges who condemn, the soldiers who shoot people dead, and for the slaves who applaud. The moral code of pig traders has become that of upright people. A curse on my contemporaries!
P. J. PROUDHON
Letter No. 10: F. Bastiat to P. J. Proudhon (6 January 1850)Who has the right to complain of being misled? - Dialogue. - Inferences drawn from a privileged establishment, the Bank of France, prove nothing in the debate. - Conciliatory overtures. - Taking freedom of credit as the judge of last resort on the question of free credit. - A reminder of antinomy.
6 January 1850
I have misled you, you say; no, it was I who was misled
Having been admitted to your home and hearth in order to have a discussion among your personal friends, on a serious question, I would have thought at least that my person would have been respected, even if you had found something to criticize in my arguments. In fact you disregard my arguments and call into doubt my person. I am the one who was misled.
Writing in your journal and specifically to your readers, I had a duty to keep strictly to the subject under discussion. I believed that, understanding the awkwardness of my position, you would have considered yourself bound to impose the same awkwardness on yourself, since you were at home and under your own roof. Again I was mistaken.
I said to myself: Mr. Proudhon has an independent mind. Nothing in the world would induce him to fail in the duty of hospitality. But Mr. Louis Blanc having shamed you for your courtesy to an economist, 1828 you were indeed ashamed. I had judged you wrongly.
I also said to myself: the discussion will be fair. Is the right to remuneration inherent in capital as it is in labor itself? This was the question to be resolved, in order that a conclusion either for or against free credit might be drawn. Without hoping to reach agreement with you on the solution, I believed at least that we would agree on the question. But here we are, and this is strange, in a situation in which what you are criticising me for, with bitterness and almost with anger, is that I am going deeper into the question and burying myself in it. We had above all a PRINCIPLE to verify, one on which, according to you, depends the worth or otherwise of socialism and you are fearful of the light I am seeking to shine on this principle. You are uneasy with the direction the debate has taken and fly from it constantly. So it was I who was misled.
What a strange sight this debate must be for our readers, and without any of the fault being mine! It may be summed up as follows:
It is daytime.
It is nighttime.
Look, the sun is shining above the horizon. All the men all over the country are coming, going, walking, and acting in a way that indicates that there is light.
That proves that it is daytime . However, I state that at the same time it is nighttime .
How can this be so?
Because of the splendid law of Contradictions . 1829 Have you not read Kant and do you not know that the only truth in this world lies in propositions that contradict one another?
Then let us stop debating, for with this form of logic we will never agree.
Well then, since you do not understand the sublime clarity of contradictions , I will condescend to your ignorance and prove my thesis to you using the method of distinctions . Some daylight illuminates and some does not.
I am still no less in the dark.
I still have the resources of the system of digressions . Follow me and I will lead you along the way.
I do not need to follow you. I have proved that it is daytime . You agree, so everything has been said.
You are always regurgitating the same statement and the same proofs. You have proved that it is daytime , so be it. Now, prove to me that it is not nighttime .
Are you being serious?
When a man gets up and, addressing the people, says to them: the moment has come when society owes you capital free of charge, when you ought to have houses, tools, implements, materials, provisions for nothing ; I say, when a man says things like this, he should expect to meet an opponent who asks him what the essential nature of capital is. You can invoke contradictions, distinctions, or digressions till the cows come home; I will bring you back to the most important and essential subject. That is my role, and perhaps it is yours to say that I am an ignorant, pig-headed man and that I do not know how to reason.
In the end, for there to be such a profound divergence between us, it must be that we do not agree on the meaning of this word Capital.
In your letter dated 17 December, you said, "If the effort expended by creditor is zero, the interest due to the creditor must necessarily be zero." 1830
So be it. But this means that:
If the effort expended by a creditor is positive, then interest must be owed.
Prove, therefore, that the time has come in which houses, tools, and provisions are generated spontaneously. If not, you have no basis on which to say that the effort expended by a capitalist is zero, and that for this reason his remuneration ought to be zero.
Truly, I do not know what you mean by the word, Capital, for in your letter you give two quite different definitions of it.
On the one hand, you see the capital of a nation as the cash it possesses. Based on this fact, you set off to prove that the rate of interest in France is 160 percent. You calculate this as follows: the total sum of cash is one billion. The interest paid on all debt, whether mortgages, unsecured debt, limited partnerships, and public debt is 1,600 million. This means that capital is paid for at the rate of 160 percent.
The result of this is that, in your eyes, capital and cash are one and the same thing.
Working from this fact, I find your estimate of interest quite moderate. You ought to have said that capital also adds something to the price of all products and you would thus have reached an estimate of interest at 4 or 500 percent.
However, now that you have reasoned in this way on this strange definition of capital, you yourself turn it upside down in the following terms:
"Capital cannot be distinguished from production. These two words do not designate in reality two distinct things; they designate only relationships. Production is capital; capital is production." 1831
This is a foundation that is much wider that that of cash. If Capital is production or the sum of all the products (land, houses, goods, money, etc.), national capital is certainly more than one billion and your estimate of the rate of interest is nonsense.
Since I am convinced that this entire debate rests on the notion of capital, allow me, at the risk of boring you, to tell you what I think of this, not by means of a definition but by means of a description.
A joiner works for three hundred days and earns and spends 5 francs a day.
This means that he provides services to society and that society gives him back equivalent services, both estimated to be worth 1,500 francs, with one hundred sou pieces merely serving here as a means of facilitating exchanges.
Let us suppose that this artisan saves 1 franc a day. What does that mean? It means that he is providing society with services worth 1,500 francs and that he currently receives just 1,200 worth of services. He acquires the right to draw from society around him at a place and time and in a form that suits him, services that have been fairly and squarely earned up to a value of 300 francs. The sixty hundred-sou pieces he has saved are simultaneously the title and the means by which he can exercise his right. 1832 .
At the end of a year, our joiner can, then, if he sees fit, claim the right he has acquired from society. He can demand various forms of satisfaction. He can choose between going to a cabaret, a show, or a shop. He can also increase the number of his tools further, acquire better implements, and make it possible for him to work more productively in the future. It is this acquired right that I call capital .
This is the situation when his neighbor, a blacksmith, comes and says to the joiner: "Through your work, you have acquired savings, things on account , and the right to draw from the society around you services up to a value of 300 francs. Let me take over your right for one year, because I will use it to get more hammers, more iron, more coal, in a word, to improve my situation and my business."
"I am in the same situation," replies the joiner, "however, I am very happy to let you have my rights and to deprive myself of them for a year if you agree to give me a share of the additional profits you will be earning."
If this exchange, which benefits both parties, is freely concluded, who will dare to call it illegitimate?
Here, therefore, is a definition of interest, and as you have said, it must have arisen in the beginning in the form of a sharing of profit, with a share going to capital out of the additional profit it had helped to generate.
It is this part that relates to capital that I say is greater or lesser depending on whether the capital itself is scarcer or more abundant.
Later, to make things more convenient and to avoid having to watch each other, argue about accounts, etc., the contracting parties negotiate a fixed rate on this part. Just as sharecropping has been transformed into tenant farming, uncertain insurance premiums into fixed premiums, interest, instead of being a variable share of profits, has become a fixed rate of return. It has a rate, and this rate, thank Heaven, tends to decrease in proportion to the order, activity, economy, and security that prevail in society!
And certainly, if you want credit to be free of charge, you have to prove that capital is not generated by the work of the person lending it and that it does not make the work of the person borrowing it more fruitful.
Who then can say who is the loser in this arrangement! Is it the joiner, who makes a profit as a result? Is it the blacksmith, who finds it a way of increasing his production and hands over only part of his additional income? Is it some third party in society? Is it society itself, which obtains more and cheaper products from the forge?
It is true that the transactions relating to capital may give rise to cheating, abuses by force or fraud, deceit, and extortion. Have I ever denied this, and is this the subject of our debate? Are there not many transactions relating to labor in which capital plays no part and at which the same accusations can be leveled? And of these abuses, would it be more logical to conclude in favor of free credit in the first case than in favor of free labor 1833 in the second?
This leads me to say a few words about the new series of arguments that you make concerning the activities of the Bank of France. Even if I decide to go back on the resolution I had made to end this discussion, I am quite willing to seize this opportunity of protesting vigorously at an accusation that has been very improperly made against me.
It has been said that I have set myself up as a defender of capitalist privilege .
No, I defend no privilege; I defend nothing other than the rights of capital considered on its own. You will be fair enough, Sir, to acknowledge that there is no question between us of any particular facts, but rather one of science.
What I am defending is the freedom of (economic) transactions. 1834
Following your theory of contradiction , you are led into making contradictions out of things that are identical; do you also wish, through a theory of conciliation that is no less strange, to make things that are contrary, for example freedom and privilege, identical?
What therefore has the privilege of the Bank of France to do with our debate? When and where have I justified this privilege and the harm it engenders? Has this harm been contested by any of my friends? You should read the book by Mr. Charles Coquelin. 1835
But when, in order to attack the legitimate remuneration of capital, you castigate the illegitimate extortions of privilege, does not this subterfuge contain an admission that you are powerless to combat the rights of Capital exercised under the reign of freedom?
The public all want bank notes, that is notes which are redeemable upon demand. The issue of such notes is forbidden to all Frenchmen save one. This privilege enables the person in whom the monopoly is invested to make huge profits. What has that to do with the question of knowing whether capital is entitled to receive a payment freely agreed to?
Note this: capital which, as you say, is indistinguishable from production, represents labor, so much so that, since the start of this discussion, you have never struck a blow on one that does not bounce back onto the other. This is what I showed you in my last letter with regard to two fables: In order to prove that there are cases in which in all conscience people are bound to lend at no charge, you paint a picture of a rich capitalist faced with a poor shipwrecked victim. And a minute before this, you yourself confront a worker who is close to being engulfed by the waves with a capitalist. What follows from this? That there are circumstances in which capital, like labor, ought to be a gift. But we can no more infer that the one should normally be free than we can the other.
Now you are telling me about the misdeeds of capital and quoting me an example of privileged capital . I will answer you by quoting you an example of privileged labor .
I am supposing that a reformer more radical than you stands up in the midst of the people and tells them: "Labor must be free; earnings are theft. Mutuum date, nil inde sperantes (lend, hoping for nothing thereby). And in order to prove to you that the earnings of labor are illegitimate, I point the finger at the foreign exchange agent who exploits the exclusive privilege of handling commissions, the butcher with the exclusive right to feed the town, and the manufacturer who has closed down all places of production except his own. Thus you can see clearly that labor does not intrinsically contain the right of payment, that it steals everything it is paid, and that wages should be abolished."
Certainly, when you hear reformers lump together forced payments with payments that are freely given , you would be within your rights to ask them this question: Where did you learn to reason?
Well then, Sir, if you conclude from the privileges of the Bank that we should have free credit, I believe that I am entitled to turn against you the question you ask me in your last letter: Where did you learn to reason?
"In Hegel", you will say, "He provided me with infallible logic." Malebranche 1836 also had imagined a method of reasoning with which he could never make a mistake … and he was mistaken right through his life, to the point where it might be said of this philosopher:
He who sees everything in God, does not see that it is he who is crazy.
Let us therefore leave the Bank of France out of this. Whether you assess its wrong doings positively or negatively, whether you exaggerate its harmful action or not, it has a privileged status and that is enough for it not to be able to shed any light on this debate.
Nevertheless, perhaps we might find some grounds for conciliation in all this. Is there not one point on which we agree? This point is that we claim and vigorously pursue the freedom of transactions, those that relate to capital, money, and bank notes as well as all the others. I would like it to be possible quite freely to open money shops and offices for loans and borrowing 1837 just as you open shoe shops or grocery shops.
You believe in free credit; I do not. But in the end, what is the use of quarrelling if we agree on the fact that credit transactions ought to be freely entered into?
Certainly, if it is in the nature of capital to be lent free of charge, this would be under the regime of freedom, and you doubtless are not asking for this revolution to be one of coercion.
Let us therefore attack the special privileges of the Bank of France, along with all other such privileges. Let us achieve freedom and leave it to act. If you are right, if it is in the nature of credit to be free, freedom will develop this nature, and you may be sure that I, if I am still alive, 1838 would be the first to be glad of it. I would borrow at no charge and for the rest of my days, a fine house on the boulevard with furniture to go with it, and a million (in cash) to boot. My example would doubtless be contagious and there would be many borrowers around the world. Provided that there were no lack of lenders, we would all lead a happy life.
And since the subject is enthusing me, would you allow me, layman that I am, to say a word by way of conclusion on the metaphysics of antinomy? I have not studied Hegel, but I have read your work, and this is the idea I have formed about it all.
Yes, there are hundreds of things of which it can truly be said that they are good or bad , depending on whether they are considered in relation to human weakness or from the point of view of absolute perfection.
Our legs are a good thing, for they enable us to move ourselves from one place to another. They are also a bad thing, for they are evidence that we do not have the gift of being everywhere at once.
This is true for all painful and effective remedies; they are both good and bad, good because they are effective and bad because they are painful.
It is therefore true that contradictions can be seen in each of the following concepts: Capital, interest, property, competition, machines, the State, labor, etc .
Yes, if man were absolutely perfect, he would not have to make interest payments, for capital would generate spontaneously and without limit for him, or rather he would have no need for capital.
Yes, if man were absolutely perfect, he would not have to work; a simple fiat would be enough to satisfy his desires.
Yes, if man were absolutely perfect, we would need neither a government nor a State. Since there would be no court proceedings, there would be no need for judges. Since there would be no crimes or misdemeanors, there would be no need for police. Since there would be no wars, there would be no need for armies.
Yes, if man were absolutely perfect, there would be no property, for everyone, like God, would enjoy a bounty of things to enjoy, and no one could imagine the distinction between yours and mine .
Given these reflections, we could imagine a subtle form of metaphysics, going somewhat beyond the incontestable dogma of human perfectibility, which might come along and say: We are moving toward a time at which credit will be free of charge and the State eliminated. It is actually only then that society will be perfect, for the notions of interest and State exclude the concept of Perfection .
This metaphysic might have said as much about the notions of work, arms and legs, eyes, stomach, knowledge, virtue, etc .
And it would certainly fall into the most blatant sophism if it added: Since society will have reached perfection only when it no longer recongnizes the need for interest and the State, let us eliminate the State and interest and we will have a perfect form of society.
It is as though the thesis in question were saying: Since man will no longer need his legs when he has the gift of being everywhere at once, to make him able to be everywhere at once, let us cut off his legs. 1839
The sophism lies in the pretence that what in this world is regarded as bad can be a remedy; it misses the truth that it is not the cure provided by the remedy that causes perfection but on the contrary perfection that makes the remedy superfluous.
But it can be imagined how the form of metaphysics of which I am speaking can upset and mislead people's minds if it is skillfully handled by a vigorous political writer.
It would in fact be easy for him to show in turn as being good and bad such things as property, freedom, labor, machines, capital, interest, the the court system, and the State.
He might entitle his book: Economic contradictions . 1840 Everything would be alternatively attacked and defended in it. Falsehoods would always take on the colors of the truth. If the author were a great writer, he would cover the principles with an extremely solid shield at the same time as he turns against them the most dangerous of weapons.
His book would be a inexhaustible arsenal for and against all causes. Readers would reach the end without knowing where truth lies or where error is to be found. Terrified by feeling themselves pervaded by skepticism, they would implore the master, saying to him what was said to Kant: Please, reveal the unknown . 1841 But the unknown will not be revealed.
If as a bold jouster, you enter the ring, you would not know how to grasp this terrible opponent, for he has used his system of argument to arrange a whole host of escapes for himself.
Will you say to him: "I have come to defend property."? He will tell you: "I have defended it better than you." And that is true. Will you say to him: "I have come to attack property"? He will tell you: "I have attacked it before you." And that is also true. Whether you are for or against credit, the State, labor, or religion, you will always find him, book in hand, ready to approve or contradict.
And all this is the payment for having mistakenly come to the conclusion that one can achieve absolute perfection from some undefined perfection, which is certainly never achievable when you are dealing with mankind.
But what you may say, Mr. Proudhon, and what my weak voice 1842 will repeat in chorus with you is this: Let us approach perfection in order to make interest payments, the State, labor, and all burdensome and painful remedies increasingly superfluous.
Let us create order, security, and the habits of saving and temperance around us so that capital will increase and INTEREST decrease.
Let us create around us a spirit of justice, peace, and concord in order to make armies, navies, the police, magistrates, or repression, in a word, the STATE, increasingly superfluous.
And above all, let us bring about FREEDOM, through which all the civilizing powers will arise.
On this very day, 6 January 1850, La Voix du Peuple addressed La Patrie 1843 in these terms:
"Is La Patrie willing to request with us the abolition of the special privileges of banks, of the monopolies of notaries, foreign exchange agents, advocates, bailiffs, printers, and bakers; the free transport of letters, the free manufacture of salt, gun powder, and tobacco; the abolition of the law banning unions, the abolition of the Customs Service, city tolls, the tax on wine and spirits, and the tax on sugar? Is La Patrie willing to support the tax on capital, the only one that is proportional, the dismissal of the army and its replacement by the National Guard, the substitution of juries for magistrates, and the freedom of education at all levels?"
This is my program; I have never had any other. 1844 What will result from this? It is that capital should be lent not free of charge but freely .
FREDERIC BASTIAT
Letter No. 11: P. J. Proudhon to F. Bastiat (21 January 1850)Maintaining the charge of ignorance. - Definition of CAPITAL substituted for the inaccurate definitions of economists. - An appeal to the authority of double entry bookkeeping. - Accounting for social classes. - The proof that comes from this. - A conciliatory concession on capital risk. - Political, economic, and scientific revolution.
21 January 1850
You have not misled me: The tone of good faith and extreme sincerity that shines out of every line of your last letter is proof of this to me. Therefore with joy that is very frank, I withdraw my words. 1845
I have not misled you either; I have not failed, as you say, in my duty of hospitality. All of your letters have been, as I promised religiously included in La Voix du Peuple without reservation, reflection, and comment. On my side, I have made the greatest effort to give the discussion a regular momentum, and to do this I have in turn entered the metaphysical, historical, and finally the practical and even routine realms. You alone, and our readers are the witnesses of this, have resisted any kind of (consistent) methodology. Finally, with regard to the general tone of our polemics, you have to admit that the way I have dealt with you as a defender of capital has been the envy of those of my co-religionists 1846 who are now joined against me in an cause even more unfortunate than that of interest, and who, sad to say, have something to defend in this matter other than their views; they have to avenge their pride. If in my last reply, my style was tinged with a certain bitterness, you should attribute it merely to the obviously very natural impatience I felt to see my efforts constantly dashed into pieces against this obstinacy, this force of intellectual inertia that, taking no account of either philosophy, progress, or finance, limits itself to reproducing eternally this puerile question: When I have saved one hundred écus and, while being able to use them in my own business, I lend them for interest or a share of the profits, am I committing theft?
I therefore pay homage to your fairness; I dare to say that my courtesy to you has not for one minute failed. However, today more than ever, I am obliged to insist on my most recent assessment. No, Mr. Bastiat, you do not understand political economy.
Let us set aside, please, the law of contradiction which your mind clearly rejects; let us set aside history, or rather progress, whose trend you fail to recognize and whose authority you reject; let us set aside the Bank, through which I have proved to you that, without changing anything it is possible to reduce the interest on capital to ½ percent at a stroke. Since this is your wish, I will limit myself purely to the notion of capital. I will analyze this notion; from the point of view of interest, I will deduce it theoretically and mathematically, and having established my thesis through metaphysics, history, and the Bank, I will establish it a fourth time. I will justify each of my statements through accounting procedures, that all too despised and modest science which is to society in its economic aspects what algebra is to geometry. Perhaps this time my mind will succeed in meeting yours, but what guarantee do I have that you will not criticise me for changing my method again for the fourth time?
What is capital ?
Authors do not agree on its definition; indeed they scarcely agree on what it is.
J. B. Say defined capital as the simple accumulation of products . 1847
Rossi: A product saved and intended for purposes of reproduction . 1848
J. Garnier who quoted them: Accumulated labor , which chimes with J. B. Say's definition, an accumulation of products. 1849
However, this latter gentleman is more explicit in his explanation elsewhere; "What is understood by capital," he said, "is a sum of financial resources devoted to providing advance payments for production ." 1850
Finally, according to you, capital is a surplus or the remainder of product that is not consumed and is intended for use in reproduction . 1851 This is what results from your fable on the worker who earns 1,500 francs a year, consumes 1,200, and saves the remaining 300 francs, either in order to invest them in his business or, and according to you this is the same thing, to lend them at interest.
From this uncertainty as to the definition, it is clear that the notion of capital is still somewhat suspect, and the vast majority of our readers will not be very surprised to learn that political economy, a science that is positive, genuine, and accurate, according to those whose profession it is to teach it, and that includes you, has still to sort out its definitions.
J. Garnier, despairing of finding words to express the concept of the thing, tries like you to describe it: "It is products such as goods, tools, buildings, cattle, sums of money, etc. that are the fruit of previous industry and which are used in the process of reproduction." 1852
Further on, his mind being so afflicted with hesitation, he brings to our attention that the notion of an advance enters into that of capital . "Well, what is an advance ? An advance is a resource deployed in such a way that it will prove to be retrievable subsequently." 1853 This is what Mr. Garnier says, and I think that with this explanation, readers will not be much further enlightened.
Let us try to come to the economists' assistance.
What results so far from the definitions of these writers is that all of them have the feeling that there is something called CAPITAL, but they are incapable of determining this something; they do not know what it is. Through the jumble of confusion constituting their explanations, we glimpse the idea common to all of them, but they are incapable of clarifying this idea for lack of philosophy; they cannot find the right word or formula. Well then, Sir, you are about to learn that dialectic, even Hegelian dialectic, can be good for something.
First of all, you will note that the idea of a product is implicit or explicit in all of the definitions of capital that have been attempted. This is already a first step. But under what conditions, how and when can a product be called CAPITAL? This is what needs to be determined. Let us go back to our authors, and by correcting their definitions by comparing one against the other we will perhaps succeed in having them express what they all feel implicitly but none of their intellects perceives.
What constitutes capital, according to J. B. Say, is the simple ACCUMULATION of products .
The idea of accumulation, like that of a product, thus enters into the notion of capital. This is a second step. Well, all types of product can be accumulated, therefore all types of product can become capital and therefore the list made by Mr. Joseph Garnier of the various forms taken by capital is incomplete, and thus inaccurate, in that it excludes from the notion the products that form the food supplies of the workers, such as wheat, wine, oil, grocery provisions, etc. These products can be held to be capital just as much as buildings, tools, cattle, money, and everything that is considered to be a productive instrument or raw material.
Rossi: Capital is a product saved and intended to be used in REPRODUCTION.
Reproduction , that is to say, the intended use of the product, this is a third idea contained in the notion of capital. Product, accumulation, reproduction : three ideas that already enter into the notion of capital.
Well, in the same way that all products may be accumulated they may also be used, and effectively used, when workers are the ones that consume them, for reproduction. The bread that sustains workers, the fodder that feeds cattle, the coal that produces steam, just like the land, carts, and machines, all of these are used for reproduction, all of these, when they are consumed, are capital. Everything that is consumed, in fact, is consumed or at least deemed to be consumed reproductively. What is used to maintain and to operate an tool, as well as the tool itself, that which feeds workers, as well as the actual material of work. All products therefore become capital, at one time or another; the theory that distinguishes between productive and unproductive consumption 1854 and which understands by the latter the daily consumption of wheat, wine, meat, clothing, etc. is wrong. We will see later that the only unproductive consumption is that of capitalists themselves.
Thus, capital is not something that is specific and determined with its own existence and reality, like land , which is a thing, labor which is another, and a product 1855 which is the shape given by labor to the objects of nature that become through this process a third thing. Capital does not form a fourth category with land, labor, and products, as economists teach, it simply indicates a state or relationship, as I have said. It is, as all authors admit, accumulated output intended for purposes of reproduction.
One step more and we will have our definition.
How does output become capital? For it is not enough, far from it, for product to have been accumulated and stored to be considered capital. It is not even enough for it to be intended to be part of the reproductive process; all products are intended for this. Do you not hear every day that the economy is overflowing with products while lacking capital? Well, this would not happen if the simple accumulation of products, as Say says, or the intention to use these products for the reproductive process, as Rossi would have it, were sufficient to have them considered to be capital. Each producer would then just have to take his own product and finance himself with what this product has cost him, to be in a position to produce more, endlessly and without any limit. I therefore repeat my question: What is it that makes the notion of product suddenly become transformed into the notion of capital? This is what the economists do not say, what they do not know, and I might even say, what none of them asks himself.
At this point, an intermediary point intervenes whose specific virtue is to convert product into capital, just as with the gusts of the west wind, the snow that has fallen in Paris in the last few days turns to liquid. This idea is the concept of VALUE.
This is what Garnier glimpsed when he defined capital as a sum of financial resources devoted to providing advance payments for production ; 1856 what you yourself felt when you sought the notion of capital, not simply with J. B. Say in an accumulation of products nor with Rossi in savings intended to be reproduced , but in the part of a worker's pay that is not consumed, that is to say obviously, of the value of his labor or product.
This means that in order to become capital, products have to have been subjected to a proper evaluation, to have been purchased, sold, and appraised, their price negotiated and set through a sort of legal convention. Thus the notion of capital indicates a relationship that is essentially social, a kind of contract without which the product remains a product.
Thus, leather, when it leaves the butcher's shop, is the butcher's product. When you fill a warehouse with it, it will never be anything other than leather; it will have no value, by which I mean value from its being worked on, it is not capital, but still only product. If this leather is purchased by a tanner, he immediately carries it, or to be more accurate, carries its value to his premises in the advance he pays on it, thereby deeming it capital. Through the tanner's work, this capital becomes product once again, which product, in turn acquired at an agreed price by the shoemaker, changes once more into capital, to become product yet again, through the shoemaker's work. Since this latest product is not capable of undergoing any further transformation, its consumption is held by economists to be unproductive, which is an aberration of the theory. The shoes made by the shoemaker and acquired by a worker become, through this acquisition, like the leather when it passes from the butcher to the tanner and the tanner to the shoemaker just a simple product with value 1857 ; this value is part of the advance payment made by the purchaser and is used by him, just like the other objects he consumes, the accommodation he lives in and the tools he uses, but in a different manner, to make new products. Consumption is thus always production; for this it is sufficient for the consumer to work. Once this movement has started it continues indefinitely.
This is what capital is. It is not simply an accumulation of products, as Say says, it is not even an accumulation of products made with a view to subsequent reproduction, as Rossi would have; all this does not conform to the notion of capital. In order for capital to exist, the product has to have been authenticated by exchange, if I dare to put it this way. This is what all the accountants know very well when, for example, they enter in their books the green leather purchased by the tanner as a debit to him, which means as his capital and the tanned or finished leather as a credit or asset , which means as his product. Traders and industrialists know this even better when, at the slightest upheaval in politics, they see themselves perish alongside the goods accumulated in their warehouses, without being able to use them for any form of further production; a sorry situation expressed in the saying that committed capital never breaks free.
Everything that is capital is of necessity a product, but everything that is a product, even when accumulated and even intended for reproduction, like the tools and implements of work in manufacturers' workshops, is not capital because of that. Capital, once again, supposes a prior evaluation, an act of exchange, or having been put into circulation, without which there is no capital. If in the world there was just one man, a single worker, who produced everything for himself alone, the products leaving his hands would remain products and would not become capital. 1858 His mind would not make any distinction between the following words: product, value, capital, advance, reproduction, consumption fund, working capital, etc. Such notions would never enter the mind of a solitary person.
However, in society, once the activity of exchange has been established and the value of things jointly determined by the parties involved, the product of one rapidly becomes the capital of the other and then in turn, this capital is transformed once more into product, either as raw material, a tool of production, or food supplies. In short, the notion of capital as opposed to that of product, reveals the relation of the parties to the exchange with respect to each other. As for society, that collective man, who is precisely the solitary worker I spoke about just now, there is no longer any distinction between them. Capital and product are identical, just as net and gross product are.
I was therefore right to say, and am astonished that, following the exegesis that you yourself gave on capital, you did not understand my words:
"Capital is indistinguishable from output. These two terms in fact do not designate two distinct things; they distinguish only relationships. Output is capital; capital is output."
And my friend, Duchêne, 1859 in support of the same thesis against Louis Blanc was even more correct to say:
The distinctions between capital and product , and note this well once and for all, indicate only the relationship between one individual and another: in society, there is simply production, consumption, and exchange . It can be said of all industries that they create capital or products, without distinction. A mechanic manufactures capital goods for the railways, factories, and manufacturing establishments, a draper manufactures them for tailors, an edge-tool maker for joiners, carpenters, and masons. A plough is a product for the ploughwright who sells it and capital for the farmer who buys it. All these activities need products in order to produce or what is one and the same thing, capital in order to make further capital .
Does this sound unintelligible to you, then? There is no antinomy here, however.
From the point of view of private interests, capital indicates a relationship of exchange preceded by a mutually agreed upon contractual evaluation. It is a product which is evaluated, that is to say legally evaluated, by two responsible arbitrators, the seller and the buyer, and which is declared to be the tool or the material to be reproduced following this evaluation. From the point of view of society, capital and product can no longer be distinguished. Products are exchanged for other products , or capital is exchanged for other capital are two propositions that are perfectly synonymous. What can be simpler, clearer, more positive, or in a word, more scientific than all this?
I therefore call capital anything of created value 1860 in the form of land, tools, or implements of production, goods, food products, or cash, which is used or can be used for production .
Everyday language confirms this definition. Capital is said to be free or unattached when the product, whatever it might be, has merely been evaluated by the parties. It may be considered realised , or immediately realisable, capital when it has been converted into such other products as one may desire, or is immediately amenable to such conversion. In this case, the form most readily taken by capital is cash. The capital is said to be engaged or committed , on the other hand, when the value that makes it up has finally entered into the production process: in this case, it can take any form possible.
Practice also agrees with me. In any business that is set up, the business man who, instead of money, puts tools or raw materials into production, begins by evaluating them for his own purposes, in respect of the risks and dangers, and this so to speak unilateral valuation constitutes his capital or his capital outlay: this is the first entry of which written account may be made in his account books.
We know what capital is; what has to be done now is to draw conclusions from this notion with regard to interest. This may take a little time for the graphic exposition but the reasoning is very simple.
Products are exchanged for other products, as J. B. Say has said, or capital for other capital, or again, capital for products, and vice versa; these are the unvarnished facts.
The absolute condition, the sine qua non for this exchange, what constitutes the essence of the essence and the rule of the matter, is the reciprocal and jointly determined evaluation of the products. Remove from the exchange the idea of price, and the exchange disappears. There is a rearrangement, but no transaction or exchange. Without a price, it is as though the product did not exist; as long as it has not received its authentic value by means of contracts of sale and purchase, it is considered never to have existed, a nothing. That is how the facts are understood.
Each person gives and receives, according to J. B. Say's formula 1861 that sets out the material facts, but according to the notion of capital as supplied to us by analysis, each party should receive an equal value. An unequal exchange is a contradictory notion, which by universal agreement is called fraud and theft.
Well, from this basic fact that producers are involved in a permanent relationship of exchange with each other, that they are in turn and simultaneously producers and consumers, workers and capitalists, and from the numerically equal evaluation that constitutes exchange, it follows: that the accounts of all producers and consumers should be in balance with each other; that society, considered from the point of view of economic science, is none other than this general equilibrium governing products, services, wages, consumption, and wealth; and that without this equilibrium, political economy is just an empty term and public order, the well-being of the workers, and the security of capitalists and landowners are no more than a Utopia.
Now in fact this equilibrium, from which should arise agreement between different interests and harmony in society, is lacking today. It is broken by a variety of causes, which according to me are easy to remove, and in the first rank of whose number I list usury, interest, and rent. As I have said so many times, there are errors and embezzlement in accounts and falsification in company records, from which arise the ill-gotten luxury of some and the increasing poverty of others. As a result of all this we have in modern society the inequality of wealth and all the forms of revolutionary agitation. I will, Sir, show you the proof of this and the counterarguments, in the records of commerce.
Let us first of all establish the facts.
Products are exchanged for other products or, to be more accurate, things having value are exchanged for other things of value: such is the law of exchanges.
However this exchange is not always carried out tit for tat , as we say. The handing over of the objects being exchanged does not always take place simultaneously on either side; often, and this is the more usual case, there is an interval between the two deliveries. Curious things happen during this interval, things that upset the equilibrium and falsify the equivalence. You will see how this happens.
Sometimes the people making the exchange do not have the product that suits the other person, or which amounts to the same thing, the one who is perfectly willing to sell wants to defer his right to buy. He wants to receive the price for his product, but for the time being at least, not to receive anything in exchange. In either case, the parties to the exchange have recourse to an intermediate category of goods, one that, acting as a go-between, is always acceptable and always accepted: money. And, since money is always sought by everyone and everyone is short of it, to cover his obligation, the buyer obtains some from a banker, paying a variable premium called a discount . A discount is made up of two parts: commission , which is the payment for the service provided by the banker, and interest . We will state shortly what interest is.
Sometimes the buyer has neither product nor money to give in exchange for the product or the capital he needs, but he offers to pay within a certain period and in one or more installments. In the two cases mentioned above, the sale was made for cash ; in the second it was done on credit . Here therefore the situation of the seller was less advantageous than that of the buyer and the imbalance is compensated for by making the product sold bear interest until payment is made in full. It is this compensatory interest, the very beginning of usury that I pointed out in one of my previous letters as the coercive agent of reimbursement. It lasts as long as the credit and is the payment for the credit, but its main object is, and you should note this point, to shorten the duration of this credit . This is the meaning and legitimate significance of interest.
It often happens, and this is the difficulty in which workers generally find themselves, that capital is absolutely indispensable to the producer and yet he cannot hope to put together the sum owed, in a word to pay it back, for a long time, either through work or saving and still less through the sums of money at his disposal. He would need 20, 30, 50 years or even a century sometimes and the capitalist or landowner refuses to give him such a long period. How does he solve this difficulty?
This is where usurious speculation comes in. A short time ago, we saw interest being imposed on debtors as a compensation for credit and as a means of hastening repayment; now we are going to see interest being sought for its own sake, usury for the sake of usury, just like war for war, or art for art. Through a deliberate , legal, and authentic agreement, and endorsed by all forms of jurisprudence, legislation, and religion, the buyer (of credit) undertakes to pay the lender the interest on his capital, land, items of furniture, or money in perpetuity . He and his family become vassals, in body and soul, his and all he owns, of the capitalist and his tributary for life everlasting . This is what is known as contractual rent and in certain cases, called a perpetual lease . Through this type of contract the object passes into the possession of the borrower who may no longer be dispossessed of it, who gains the use of it as its purchaser and owner but who, for evermore, is obliged to make the payments on it like some endless amortization. This is the economic origin of the feudal system.
But there is better to come.
Contract rent and perpetual leases are now almost everywhere obsolete. It was found that a product or capital exchanged for perpetual interest was too biased in favor of the capitalist and the need for improvement to the system was felt. Nowadays, capital and fixed assets are no longer invested in perpetual rent if it is not to the State; they are RENTED, that is to say, they are lent, still in return for interest but for short periods. This new type of usury is known as rent or farm rent .
Do you understand, Sir, what a short-term loan in return for interest (rent or farm rent) is? In perpetual leases and the contractual rent which I discussed above, if the rent was perpetual, the handing over of capital was perpetual too: between the payment and its use there was still a sort of parity. Here, capital never ceases to belong to the person lending it and who may require restitution at will. This means that the capitalist does not exchange capital for capital or product for product; he gives nothing, keeps everything, does not work and lives off his rent, interest, and usury in a way that 1,000, 10,000, or 100,000 workers combined do not live off the things they produce.
In lending at interest, farm rent, or rent, with the right of requiring repayment of the sum loaned at will, and expelling the farmer or tenant, capitalists have dreamt up something wider than space and more durable than time. There is no infinity that equals the infinity of usurious rent; the usury that exceeds rent in perpetuity by as much as the latter itself exceeds fixed-term repayments in cash. Short-term borrowers at interest, pay and pay again and keep on paying and do not enjoy the thing for which they are paying; they have only the sight of it, and possess only its shadow. Is it not with this image of a usurer in mind that theologians have imagined their God, this atrocious God who makes sinners pay eternally and who never pardons them their sin? Always! Never! That is the God of Catholicism, that is the usurer!
Well then, I say that any exchange of products and capital may be carried out for cash;
Consequently, bankers' profits from their discounts should be reduced to administrative costs and a compensation for the metal unproductively used in making coinage;
It follows further that all interest, rent, farm rent, or leasing is only a refusal to allow repayment, a theft from the borrower or tenant, and the prime cause of all the poverty and upheavals in society.
Finally, I proved to you, through the example of the Bank of France, that it was an easy and practical thing to organize equality in the exchange or the circulation of capital and products free of charge. You wished to see in this categorical and decisive fact just a specific case of monopoly that had nothing to do with the theory of interest. "What have I to do", you replied nonchalantly, "with the Bank of France and its privilege? I am talking to you about interest and capital." As though with credit in respect of land and commerce organized everywhere at ½ percent, the charging of interest could still exist somewhere! I will now show you, as bookkeepers do, that this particular financial exaction, that constantly comes between the two parties to the exchange, this toll imposed on circulation, this duty imposed on the conversion of products into things of value and these things of value into capital, in a word, this interest, or to call it by its proper name, this go-between of commerce, this interesse , whose defense you obstinately continue to uphold, is none other than the great forger who, in order to appropriate products he has not created or services he has never provided, fraudulently and for no work, falsifies accounts, adds surcharges and inventions to the entries, destroys the equilibrium between transactions, brings disorder into business, and inevitably creates despair and misery among nations.
In what follows, you will find the graphic representation of operations carried out in society set out in turn in the two systems, the system of interest that is currently practiced and the system of free credit that I propose. Any reasoning, dialectic, or controversy will be demolished by this readily intelligible image of economic progress.
I. The System of Interest Payments
In this system, the production, circulation, and consumption of wealth operates by the intervention of two quite distinct and separate classes of citizens: landowners, capitalists, and businessmen on the one hand and wage workers on the other. Although these two classes are in an open state of antagonism, they constitute a closed organism that acts in itself, on itself, and by itself.
It thus follows that all operations arising from farming, commerce, or industry that can be carried out in a country, all the accounts for each type of manufacture, construction, banking, etc. can be summarized and represented by a single account whose parts I will give you.
I classify as A the entire class of landowners, capitalists, and businessmen whom I consider to be a single person and by B, C, D, E, F, G, H, I, K and L the class of workers earning wages.
ACCOUNTS
Between A, a landowner-capitalist-businessman and B, C, D, E, F, G, H, I, K and L, workers earning wages.
CHAPTER 1
Account and summary of the personal operations of A, a landowner-capitalist-businessman
On opening the account, A begins his investment operations with a capital that I take to be 10,000 francs. This sum forms his investment; it is with this that he is going to work and start up commercial operations. This initial investment by A is expressed as follows:
1. Sum deposited by A .
1 January, capital account ….. 10,000 francs
Once he has established his capital, what is A going to do? He will hire workers, whose products and services he will pay for from his capital of 10,000 francs, that is to say, he will convert these 10,000 francs into goods, and accountants would express this thus:
2. General Cash Expenditures
Purchase for cash, or in anticipation, of products for the present year from the workers hereinafter listed:
From B, | x (working days or products), total | 1,000 fr. |
From C, | — | 1,000 |
From D, | — | 1,000 |
From E, | — | 1,000 |
From F, | — | 1,000 |
From G, | — | 1,000 |
From H, | — | 1,000 |
From I, | — | 1,000 |
From K, | — | 1,000 |
From L, | — | 1,000 |
Total… | 10,000 fr. |
Once the money has been converted into goods, what the landowner-capitalist-businessman, A has to do is to carry out the contrary operation and to convert his goods into money. This conversion implies a profit (speculation, interest, etc.) since, ex hypothesis and according to the theory of interest, land and houses are not lent for nothing, nor is capital, nor is the guarantee and consideration of businessmen acquired for nothing. Let us assume, in accordance with the standard rules of commerce, that the profit will be 10 percent.
To whom will A's products be sold? Of necessity to B, C, D, etc., the workers, since society as a whole is made up of people like A, landowner-capitalist-businessmen 1862 and those like B, C, D, etc, wage workers, other than which there is no one. This is how the account is made up:
3. The Following, in General Goods :
B, | my sales to him, made during the year 1, | 1,100 fr. |
C, | — | 1,100 |
D, | — | 1,100 |
E, | — | 1,100 |
F, | — | 1,100 |
G, | — | 1,100 |
H, | — | 1,100 |
I, | — | 1,100 |
K, | — | 1,100 |
L, | — | 1,100 |
Total… | 11,000 fr |
Once the sale has been made, the sums due by the buyers remain to be paid in. A new operation, which the accountant enters into his ledger as follows:
4. Cash Deposits by the Following :
to B, | his payment in cash to close his account on 31 December | 1,100 fr. |
to C, | — | 1,100 |
to D, | — | 1,100 |
to E, | — | 1,100 |
to F, | — | 1,100 |
to G, | — | 1,100 |
to H, | — | 1,100 |
to I, | — | 1,100 |
to K, | — | 1,100 |
to L, | — | 1,100 |
Sum equals… | 11,000 fr. |
In this way, the capital advanced by A, following conversion of this capital into products, then the sale of these products to the workers-consumers B, C, D, etc., and finally payment for the sale, is returned to him increased by one tenth, which is expressed in the inventory by the balance below:
5. Summary of the operations of A, landowner-capitalist-businessman, for his inventory on 31 December :
Owed. | General Goods | Due. | |
10,000 fr. | Debit to this account on 31 December | Credit to this account on 31 December | 11,000 fr. |
1,000 | Profit to this account to be credited to A's capital account | ||
11,000 fr. | Balance… | 11,000 fr. |
It can be said in passing that you can see here how and in what situations products become capital. It is not goods in shops that, at the inventory, are entered to the credit of the capital account, it is the profit . The profit, that is to say, the product sold and delivered, whose price has been received or is due to be so shortly: in short, it is the product transformed into value . 1863
Let us move to the other half of the account, the workers' account.
CHAPTER 2
Account of the dealings of B, a worker with A, a landowner-capitalist-businessman
B, an unemployed worker without property or capital is taken on by A, who gives him a job and acquires his output. The first operation that appears on B's account is:
1. Cash Debit, 1 January to B - Capital Account
Sale for cash or by anticipation of his entire production for the year to A, a landowner-capitalist-businessman - 1,000fr
[no screen snapshot needed]
In exchange for his production, the worker therefore receives 1,000 francs, a sum equal to that we have seen shown in article 2 of the preceding chapter, Cash Expenditures .
However, B lives from his earnings, that is to say, that from the money given to him by A, a landowner-capitalist-businessman, he receives from the said A all the objects that he, B, needs to consume, objects that are invoiced to him as we have seen above in article 3 of chapter 1 at 10 percent profit above the cost price. For B, therefore, the operation has the following result:
2. Owed by B, Capital Account, to A, a landowner-capitalist-businessman:
Total of the supplies of all types from A during the year - 1,100fr
3. Summary of the operations of A, for his inventory:
Owed. | CAPITAL ACCOUNT | Due. |
1,100 fr. | Debit from this account on 31 December | |
Credit to this account on 31 December | 1,000 fr. | |
Loss on this account, that B can pay only by means of a loan | 100 | |
1,100 fr. | 1,100 fr. |
As all the other workers are in the same situation as B, their individual accounts present the same result. To understand the fact that I wished to highlight, that is to say, the lack of equilibrium in the general circulation of capital, following the exactions, it is superfluous to reproduce all these accounts in order to understand.
The preceding table, which is much more instructive and a better demonstration than the one produced by Quesnay, 1864 is a faithful image in an algebraic presentation of society's economy at present. This is what persuades us that the proletariat and poverty are the effect, not only of accidental causes, such as floods, war, and epidemics but also of an organic cause inherent in the make-up of society.
Through the fiction of the productivity of capital and through the innumerable prerogatives taken by monopolists for themselves, one of the two following things always and ineluctably results:
Either the monopolist takes away from his employee a part of his social capital; B, C; D, E, F, G, H, I, K and L have produced 10 men's worth during the year and have consumed 9 men's worth only. In other words, the capitalist has consumed one worker. 1865 What is more, through the capitalization of interest, the position of the workers is steadily worsening each year, to the extent that if the analysis is followed through, around the seventh year we find that the entire initial contribution of the workers has passed as interest and profit into the hands of landowner-capitalist-businessmen, which means that wage workers who wish to pay off their debt have to work every seventh year for nothing.
Or else, it is the workers who, incapable of paying any more for his product than he has himself received for it, forces monopolists to reduce prices, consequently making him overdrawn for the entire amount of the interest, rent, and profit whose use and property were both a right and necessity for him.
We are thus brought back to acknowledging that the inevitable result of credit, in the system of interest, is the plunder of the workers and the no less inevitable bankruptcy of businessmen and the ruin of capitalist landowners. Interest is like a double-edged sword: it kills, whichever side it hits you with.
I have just shown you how things happen in the regime of interest. Let us now see what would happen in the regime of free credit.
II. The System of Free Credit
According to the theory of free credit, the statuses of wage workers and landowner-capitalist-businessmen are identical and equivalent to one another; they are combined under the heading of producer-consumers . 1866 The effect of this change is to bring all the current operations of credit, loans, sales at a fixed period, speculation, rent, farm rent, etc. back to a simple form of exchange, and all bank operations to a simple transfer between the parties.
Let us therefore assume that the Bank of France, the principal organ of this system, has been reorganized in accordance with the ideas of free credit and a discount rate reduced to 1 percent, a rate that we provisionally consider to be a fair payment for the specific service provided by the Bank, and consequently one that represents an interest rate of zero. And let us see the changes that will result for general accounting. From now on, all transactions will be effected through the intervention of the Bank and its subsidiaries, replacing all the varieties of usurious credit, and thus it will be with the Bank that B, C, D, etc. the workers, associates, whether in groups or individually will deal, in the first instance and directly.
CHAPTER I
1. Account of the operations carried out by B, a worker, with x, a National Bank.
Cash Debit, 1 January to x , National Bank,
Advance by the Bank on all the products on my work for the year, to be paid back to it in accordance with my sales, 1,000 francs; discount rate 1 percent deducted, 990 francs
As we have seen above, B lives exclusively from his work, that is to say that, on the guarantee of what he produces, he obtains from x , a National Bank, either notes or cash with which he buys all the objects he needs for his industry and consumption from A, a worker like himself but who, in sales or exchange operations, which we will discuss shortly, fulfills the role of a landowner-capitalist-businessman. In actual fact, B purchases all these objects for cash and is able, therefore, to negotiate their price all the more rigorously.
This purchase, carried out using the notes or cash from the Bank, gives rise to the following account in B's books:
2. Debts for General Goods in Cash
Purchase for cash from A of everything I consume during the year: 990 francs
As his manufacture progresses, B sells his products. However, production depends upon consumption and, since this production is no longer hobbled as it was by usury under the regime of interest, that is to say, by sales by installments, by rent for the tools of production and the resulting charges, especially by the preconceived ideas about money, which has become non-productive and even superfluous, it follows that B, like all the other workers, is able not only to buy back his own products to the nearest minimal fraction, but also to give full rein to his energy and productive power, without fear of creating non-values (things of no value ) 1867 and bringing prices down but on the contrary, with the legitimately founded hope of being compensated for the low payments he makes to the Bank for negotiating his assets (things of value), by this surplus production and exchange. This is what will appear in the following article in B's account.
All work should leave a surplus; this aphorism is one of the fundamental ones of political economy. It is based on the principle that, in an economic order, whatever the capital invested, all value is created from nothing by labor , in the same way as, according to Christian theology, everything in nature has been created, equally from nothing, by God. In fact, since the product is defined as: the usefulness added by labor to objects supplied by nature (J. B. Say and all economists), it is clear that products in their entirety are the creation of workers 1868 and if the object to which the new usefulness is added is itself already a product, the value reproduced is of necessity greater than the value consumed. Let us accept that, through his work, B increases the value he consumes by 10 percent and let us note the result recorded in his accounts:
3. Cash due from sale of General Goods
My sales for cash to various customers during the year, 1,089fr.
From this account, it appears that usury is one of the causes of poverty in that it prevents consumption and reproduction, first of all by raising the sales price of products far above that of the surplus obtained by reproductive work. The total of usurious charges in France, for a total product of 10 billion is 6 billion or 60 percent. This is then compounded by the hindering of circulation using all the formalities of discount, interest, rent, farm rents, etc.; all these difficulties disappear under the regime of free credit.
Here we have reached the moment when B has sold all the product of his year's work. He has to settle up with x , a National Bank, which gives rise to the following operation
4. Owed in cash to x, the National Bank,
My payment for the balance1,000fr
Now B has to produce his own account and does so as follows:
5. Summary of B's operations for his inventory
Owed. | GENERAL GOODS ACCOUNT | Due | |
990 fr. | Debit to this account at 31 December | Credit to this account at 31 December | 1,089 fr. |
99 | Profit on this account | ||
1,089 fr. | Sum equals | 1,089 fr. |
The following year, instead of operating with a product of 1,000 francs, B will operate with a product of 1,089, which will give him a new surplus of profit and then the same scenario will be re-enacted in years 3, 4, 5, etc. His wealth will increase as his industry increases and will grow infinitely.
As the other workers, C, D, E, F, etc. are in the same situation as B, their individual accounts will show the same result; it is therefore unnecessary to reproduce them here.
I will now move to the counterpart of the accounts opened with respect to B and first of all to that of the Bank.
CHAPTER II
We have seen above that x , a National Bank, has made B an advance on his work or production, that it has acted in a similar fashion with all the other workers and that subsequently it has covered itself and recouped its money through the money repayments that they had remitted to it and through the deduction made to its advantage of 1 percent discount. This is how these various operations are shown in the Bank's books:
Owed by the following in Cash:
B, | my advances on the output of his labor for the year against his commitment of 1,000 francs, discount deducted | 990 fr. |
C, | — | 990 |
D, | — | 990 |
E, | — | 990 |
F, | — | 990 |
C, | — | 990 |
G, | — | 990 |
H, | — | 990 |
I, | — | 990 |
K, | — | 990 |
L, | — | 990 |
9,900 fr. |
When the debtors repay it, a new operation takes place, which the accountant will enter in his books as follows:
Owed in Cash to the following:
to B, | his payment of the balance | 990 fr. |
to C, | — | 990 |
to D, | — | 990 |
to E, | — | 990 |
to F, | — | 990 |
to G, | — | 990 |
to H, | — | 990 |
to I, | — | 990 |
to K, | — | 990 |
to L, | — | 990 |
To Profit and Loss, receipt of the said amounts for discount at 1 percent | 100 | |
Total… | 10,000 fr. |
The credit given by x , a National Bank, after conversion of the sum advanced into products and then the sale of these products to all the members of society, who are producer-consumers, from A to L and finally payment for the sale by means of the same sum supplied by the Bank, this credit, we say, is returned to it in the form of notes or cash, increased by the discount of 1 percent, with which the Bank pays its employees and covers its costs. And if, after covering its expenses, there remained a significant net profit to the Bank, it would reduce its discount rate proportionally so that the interest on capital would always remain at zero.
Summary of the operations of x, a National Bank, for its inventory on 31 December
Owed | PROFIT AND LOSS | Due | |
100 francs | Profit on this account | Product of the discount rate for the year | 100 francs |
When you refer to the Cash account of x , a National Bank, you can see first of all that the surplus of the debit on this account over the credit is 100 francs, a sum that is equal to the profit on the discount rate recorded in the Profit and Loss Account.
CHAPTER III
Let us come finally to the account of A, a landowner-capitalist-entrepreneur, who is no different, as we have said, from those of B, C, D, etc., wage workers, and assumes this title only fictitiously following his dealings with them.
Under the regime of free credit, A no longer lends raw materials or tools of work, in a word, capital; nor does he provide it for nothing; he sells it. As soon as he has received payment for it, he is deprived of his rights to his capital; he can no longer have himself paid interest for it eternally and even beyond eternity.
This, therefore, is how A's account behaves under this new system:
First of all, since money is just an instrument of circulation that has become common property, whose use is disdained everywhere, through its accumulation at the Bank and the almost general substitution of paper for cash, it is now free; producer-consumers such as B, C, D, etc. now have no use for A's écus. What they need is raw materials, working tools, and food products which A holds.
A begins his operations with his capital, goods , which as a hypothesis we will set at 10,000 francs. This opening of A's operations will be shown in his books as follows:
1. General Goods owed to A, Capital Account:
Goods in the shop at 1 January last according to inventory - 10,000 fr
What will A do with these goods? He will sell them to the workers, B, C, D, etc. that is to say to the consumer and producer firm 1869 they represent here, just as A represents for the moment the capitalist and landowning firm. This is what A's accountant will record as follows:
2. Sale for cash to B 990fr
Sale for cash | to B… | 990 | |
— | to C… | 990 | |
— | to D… | 990 | |
— | to E… | 990 | |
— | to F… | 990 | |
— | to G… | 990 | |
— | to H… | 990 | |
— | to I… | 990 | |
— | to K… | 990 | |
— | to L… | 990 | |
Total… | 9,990 fr. |
However, if the workers B, C, D, etc. consume A's articles, the landowner-capitalist-entrepreneur A in his turn consumes the products of the workers, B, C, D, etc. from whom he has to purchase them, just as they themselves purchase his. Well, as we have seen in article 3 of Chapter I that the surplus given to the values consumed by B, C, D, etc. are hypothetically in a regime free from any unemployment, stagnation, decrease in prices, and 10 percent, the capital of 990 francs that B has obtained as a credit from the Bank and consumed productively has increased to a capital of 1,089 francs and therefore it is at this price that A makes his purchases from B and pays his invoices. This is shown in the entries in his accounts as follows:
3. Debit for General Goods paid in Cash:
Purchased for cash from the following workers:
to B, | for his deliveries of various articles for my consumption | 1,089 fr |
C, | — | 1,089 |
D, | — | 1,089 |
E, | — | 1,089 |
F, | — | 1,089 |
G, | — | 1,089 |
H, | — | 1,089 |
I, | — | 1,089 |
K, | — | 1,089 |
L, | — | 1,089 |
Total… | 10,890 fr. |
To complete the demonstration, all we have to do is to draw up A's inventory.
Summary of the operations of A, a landowner-capitalist-entrepreneur, for his inventory on 31 December:
Owed. | GENERAL GOODS ACCOUNT | Due. | |
10,890 fr. | Debit to this account at 31 December | Credit to this account at 31 December | 9,900 fr. |
Remaining in the shop from goods on inventory on 1 January last | 100 | ||
Loss on this account | 890 fr. | ||
10,890 fr. | Balanced Sum | 10,890 fr. |
Now that we have established our double entry bookkeeping, let us reconcile the accounts and note the differences:
1. Under the regime of usury , the account of each worker results in a loss of 100 francs, or for the ten as a whole, 1,000 francs
At the same time, the account of A, a landowner-capitalist-entrepreneur, results in a profit of 1,000 francs, which proves that in a capitalist society (or firm), a deficit or poverty, results from the speculation.
2. Under the regime of free credit , on the other hand, each worker's account results in a profit of 99 francs, or 990 francs for all ten and the account of A, a landowner-capitalist, results in a loss of 890 francs which, with the 100 francs of goods that remain in the shop and cover the loss for the year, make up the 990 francs that have increased the wealth of the ten workers. This proves that, in a mutualist society, 1870 that is to say a society of equal exchange, the worker's wealth increases directly according to his work while the wealth of the capitalist decreases in direct proportion to his unproductive consumption a point which also destroys the criticism of me by Pierre Leroux, 1871 who for the last two months has not ceased to repeat his controversial statement that free credit, the People's Bank, and mutuality are in the end just as much examples of property-ism , bourgeois-ism , 1872 and exploitation, the very things the regime of the People's Bank intended to abolish.
In a mutualist regime , the wealth of the worker increases directly in accordance with his work, whereas the wealth of the landowner-capitalist decreases directly in accordance with his unproductive consumption : this proposition, demonstrated mathematically, answers all the outpourings of Pierre Leroux and Louis Blanc on community, fraternity, and solidarity.
Let us now turn the formula upside down:
Under the regime of usury, the wealth of the worker decreases directly in accordance with his work, whereas the wealth of the landowner-capitalist increases directly in accordance with his unproductive consumption: this proposition, demonstrated mathematically like the preceding one, answers all the outpourings of Jesuits, Malthusians, and philanthropists on the inequality of talent, compensation in the next life, etc. etc.
As a corollary to the foregoing, and continuing to use the logic of numbers as our basis, we also say:
In a capitalist society, since a worker can never buy back his production at the price he sold it for, he remains constantly in deficit. This makes it necessary for him to reduce his consumption indefinitely, and consequently makes it necessary for society as a whole to reduce its production indefinitely; this leads to the living of a normal lifestyle being forbidden and obstacles being erected to the formation of both capital and the production of food.
In a mutualist society, on the other hand, as the worker constantly exchanges one product for another or one item of value for another without restriction with just a small discount charge that is more than compensated for by the surplus left to him, at the end of a year's work he benefits exclusively from what he has produced. This leads to his ability to produce indefinitely and to an endless increase of both life and wealth for society.
Would you say that a revolution like this in economic relationships would in the end do nothing more than shift poverty, that instead of the poverty of the paid worker who is unable to buy back what he himself produces and who becomes poorer the harder he works, we would have the poverty of landowner-capitalist-entrepreneur who would be obliged to eat into his capital and because of this to destroy constantly, along with the materials used for products, the very tool of labour itself?
But who cannot see that if, as is inevitable in a regime of free credit, the two qualities of wage worker on the one hand and landowner-capitalist-entrepreneur on the other become equal and inseparable in the person of each worker, the deficit experienced by A in the operations he carries out as a capitalist would be recovered immediately by him in the profit he in turn receives as a worker, so that, while on the one hand through the elimination of interest the sum of the products of labour increases indefinitely, on the other, through the ease of circulation, these products are constantly converted into THINGS OF VALUE and these things of value into CAPITAL.
Let each person, instead of crying out "plunder" in opposition to socialism, do his own accounts. Let each person record an inventory of his wealth and industry, what he earns as a capitalist-landowner and what he can obtain as a worker and, if I am not much mistaken, out of the 10 million citizens on the electoral roll, 1873 there will not be 200,000, or 1 in 50 who have an interest in retaining the usurious regime and rejecting free credit. Anyone, once more, who earns more through his work, talent, industry, or science than through his capital, is directly and extremely interested in the instant and total abolition of usury; such a person, I say, whether he realizes it or not, is first and foremost a supporter of the Democratic and Social Republic . 1874 He is, in the widest and most conservative sense, 1875 a REVOLUTIONARY. What! Is it true, because Malthus said so, and following him, a handful of pedants want this, that 10 million workers with their wives and children have to be fodder for 200,000 parasites and that it is in order to protect this exploitation of man by man that the State exists, that it disposes of an armed force of 500,000 soldiers and one million civil servants and that we pay it two billion in taxes? 1876
But why do I need, after all that has been said during this controversy, to continue to maintain the purely artificial opposition between wage workers and capitalist-landowners ? The time has come to call a halt to all antagonism between the classes and to involve everyone up to landowners and capitalists themselves in abolishing rent and interest. Once the Revolution has assured its triumph through justice, it may, without losing any of its dignity, take on the subject of interest.
Have we not seen that interest arose from the risks of industry and commerce, that it was first seen in the more or less random contracts on private cargo and whole ship contracts ? Well, what was in the beginning the inevitable effect of the state of war, one bound to arise in a society driven by antagonisms, will also repeat itself over and over again in a harmonious and peaceful society. Progress in industry, as in science, is endless; work knows no bounds to its adventurous enterprises. However, who speaks of enterprise speaks too, always, of a thing more or less hazardous and consequently of a risk more or less great for the capital committed and thus of the need for interest to be compensated accordingly.
The accumulation of capital by means of the renting of houses and farms and other mortgage-based loans, by mercantile, and Stock Exchange dealings, and by the plunder practiced by the bankocrats 1877 will be replaced as circumstances become increasingly better, by silent partnerships. Capital, divided into shares and supplied by the mass of workers will then act productively on behalf of labor instead of plundering it. Dividends would merely be one way of enabling society as a whole to share in the profits from private speculation and would be the legitimate benefit of talent over wealth. Let existing capitalists, instead of crowding into the Stock Exchange, opposing the revolution, and putting an embargo on working hands, dare to become our foremen; let them, as in '92, 1878 become our generals in this new war waged by labor against poverty, in this great crusade of industry against nature. Is there then nothing left to discover, nothing left to dare, nothing to do to promote the development of our nation, to increase our wealth and our glory? …
I must stop; it is time to do so. In spite of myself, Sir, you have pushed me into this abstract reasoning, which is fatiguing for the general public and not very easy for the columns of a popular journal to accommodate. Was it necessary to entice me into this thorny dissertation when it would have been so easy and simple to limit ourselves to this question that is as decisive as it is positive: Can credit be free or can it not ? At the risk of turning off the readers of La Voix du Peuple, I wanted to satisfy your wish; you will tell me if you consider it adequate, what you find that requires criticism, first of all in the analysis I have made of capital, then in the definition I drew from it, and finally in the theorems and corollaries that constitute its development.
In what you have just read, you will not deny that there is quite a revolution taking place that is not only political and economic but also, and this must be much closer to your heart as it is to mine, scientific. It is up to you to see whether you accept on your own account and on behalf of those of like persuasion, the conclusion that shines out from this entire discussion, that is to say that neither you, Mr. Bastiat, nor anyone of your school, understands anything of political economy.
I am, etc.
P. J. PROUDHON
Letter No. 12: F. Bastiat to P. J. Proudhon (4 February 1850)The system of free credit comes down to paper money. - What consequences should be drawn from the accounting established by Mr. Proudhon? - Bank notes. - The profits they provide. - J. B. Say's insights. - The real way to enable the general public to benefit from credit, for those who accept it, is freedom. - An analysis of credit and interest. - An appeal to Mr. Proudhon to change sides.
4 February 1850
You have just done society a very important service. Up to now free credit remained wrapped in philosophical, metaphysical, economic, paradoxical, and historic clouds. By subjecting it to the simple proof of accounting, you have brought it down from these lofty region; you have exposed it to the gaze of all. Everyone is able to recognize it: it is money made out of paper . 1879
Multiplying and equalizing wealth on this earth by pouring a flood of paper money on it; here is the solution in a nutshell. Here is the conclusum , the ultimatum, and the desideratum of socialism. 1880
Free credit is socialism's final word, its final slogan, and its final effort. You have said it a hundred times and rightly so. Others, it is true, have given this term a different meaning. La Démocratie Pacifique 1881 said recently that anyone who aspires to do some good is a socialist. Certainly, while the definition is vague, it is at least understandable and above all, prudent. Defined in this way, socialism is indestructible.
However, a desire does not constitute a science, any more than twenty mutually destructive dreams do. What has become of Icaria ? Where do the phalanstery , the national workshop and the triad stand? These slogans are dead letters and you have contributed not a little to killing them. If a few others have recently made their entry into the world under Sanskrit names 1882 (which I have forgotten), it can be concluded that they were not born viable. Only one has still survived: free credit . It seemed to me that it drew life from mystery. You have brought it out into broad daylight: will it survive for long?
The debasing of money, which can go as far as to make money completely false, 1883 is an invention neither new nor very democratic in origin. Up to now, however, people had tried to give or imagine a few guarantees to paper money , such as the future wealth of the Mississippi, 1884 national land, State forests, the property of émigrés, etc. 1885 It was well understood that paper has no intrinsic value, but has value only as a promise, and that this promise has to inspire some confidence in order for the paper which makes this promise to be voluntarily accepted in exchange for something real. From this we get the word credit (Latin credere , to believe, have faith in). You do not appear to have paid much attention to these necessities. An inexhaustible paper money factory: that is your solution. 1886
Allow me to turn upside down the order of the discussion you have set out for me and to examine first of all your social mechanism 1887 as expressed in the title: Free credit .
It is good to state what your definition of capital is Any created value, such as land, tools of production, goods, food supplies, or cash, which are used or can be used for production . 1888 I accept this definition. It is enough for the discussion in hand.
This having been established, A, B, C, D, E, F, G, H, I, K, L, etc. stand for both capitalists and workers.
You do the accounts for one of them, A, in his role as a capitalist, then those of B, representing all the workers, and finally you draw up the accounts for the Bank.
A is the holder of capital, created values in land, tools, food supplies , etc. B wants to appropriate them for himself, but he has nothing to give in exchange and can't borrow them without incurring the burden of paying interest.
He goes to the Bank and says: Give me one thousand francs in bank notes and I will repay you from the product of my future work as and when I sell it. The Bank does this and gives him notes for 990 francs. 1889 With these precious talismans in his hand, B goes to A and tells him: "Perhaps you hoped to lend me your capital, but here you are, reduced to selling it to me, since I am in a position to pay for it." A is quick to hand over his capital (land, goods, or food) to B for bank notes. B undertakes his work. By virtue of the aphorism: All work must produce a surplus , he adds 10 percent to the value he has just purchased, runs to the Bank to pay (doubtless in notes) the 990 francs he owes it, and finds that he has made 99 francs profit. This is true for C, D, E, F, etc., in short for all men.
Having invented these figures, you establish accounts for A, B and the Bank. This accounting, once you have accepted the figures, is beyond criticism.
But can we accept your figures? Are they in conformity with the nature of men and things? This is what we have to examine.
Will Bank notes offer any guarantees? In other words, do they inspire confidence or not? And, again putting it in alternative vocabulary, will the Bank or will it not have enough original capital and created values to meet all of its issues?
How will it gather together all its capital in created values? If it has shareholders, according to the way things are at present which is our starting point, they will want to receive interest, and how can the Bank lend for free what it has to pay to borrow?
The capital of the Bank of France will be taken over, you say, and the shareholders will be reimbursed in the form of State Bonds. This postpones the problem without solving it. It is the mass of the people, the nation, that will borrow the capital at 5 percent in order to lend it free of charge. Interest will not be eliminated, but put on the taxpayers' backs.
But let us simply assume that this capital of 10,000 francs, which you have imagined for the purposes of discussion, has indeed been gathered together, and let us set aside the vicious circle that consists in assuming free credit in order to realize it. Since you thought this capital was necessary, you will doubtless consider it essential for it to be maintained.
To this end, your reasoning follows the hypothesis that B, C, D, E, etc. will pay the Bank back annually for the notes they have taken from it. But just suppose that this hypothesis is wrong! That B is a libertine who spends his 1,000 francs in taverns! That C gives his to his mistress! That D throws them away in a ridiculous enterprise! That E has a jaunt to Belgium for a few days, etc. etc.! What would happen to the Bank? To whom would A apply to receive the compensation for the capital which has been taken from him?
Thus, the long and the short of it is that your Bank will not have the power to change our natures or reform our bad inclinations. It will prove just the opposite, and it has to be acknowledged that the extreme ease with which paper money is to be obtained on the simple promise of working to repay it at a later date, will be a powerful incentive to gambling, wild enterprises, risky ventures, rash speculation, or immoral or ill-considered expenditure. It is a very serious matter to put all men in the position of saying to themselves: "Let us tempt fate with other people's property; if I succeed, that's my good fortune, if I fail, that's their bad luck." 1890 For my part, I cannot imagine the regular pursuit of human affairs outside the law of (individual) responsibility. However, without going into the moral effects of your invention here, I suggest that it is still a fact that it removes from the National Bank any role in managing the conditions for (granting) credit and the setting of duration (of loans).
Perhaps you will tell me that before handing over its notes, the Bank will enquire carefully about the degree of trust that applicants merit. Property, morality, activity, intelligence, and foresight will all be scrutinized and weighed carefully. But be careful! If on the one hand you require the Bank to have some original capital as a guarantee and if on the other, it lends only in total security, what more will it be doing than the free Banks in the United States do? 1891 And will the poor devils of today be anything other than poor devils under your regime?
I do not think that you can escape these alternatives:
Either the Bank will have a capital on which it will pay interest, and in this case it cannot lend money interest-free without bankrupting itself;
Or it will have capital free of charge, and in this case please explain to us where it will obtain this, other than from A, B, C, D, who make up the nation?
In both situations, it will either lend with moderation and discernment, and you will then not have universal credit, or it will lend with no guarantee, and thus become bankrupt within two months.
But let us gloss over these initial difficulties.
A, whom you have put on stage, is a capitalist and therefore experienced, prudent, timorous, and even fearful. You will not deny this. After all, he is clearly allowed to be so. All that he has he has acquired through the sweat of his brow, and he does not want to risk losing it. From the point of view of society, this sentiment is eminently conservative. Before handing his capital over in return for bank notes, therefore, A will turn these notes over and over in his hands. He may perhaps end up refusing to accept them them and your system will go up in smoke. What will you do? Will you decree the notes to be legal tender ? 1892 What will then become of freedom, of which you are the champion? After turning the Bank into an inquisition, will you now make it a police station? It was not worth getting rid of the State for this.
However, I will allow your legal tender, just for the purposes of this discussion. You will not prevent A from calculating his level of risk. It is true that there are scarcely any risks that a seller will not accept, provided that he finds a satisfactory insurance premium in an increase in the price. A as a capitalist, that is to say a carpenter, shoemaker, blacksmith, tailor, etc., will therefore tell B, C and D, "Sirs, if you want my furniture, shoes, nails or clothes, things of created value , give me something of created value , that is to say, 20 francs in money." "Here are 20 francs in notes," replies B. "That is just a promise," retorts A, "and I have no confidence in it." "Legal tender has been decreed", replies B. "Very well", is A's answer, "but I want 100 francs for my goods."
How will you stop this rise in prices, which obviously destroys all the benefits you are expecting from the Bank? What will you do? Will you decree the Law of the Maximum (price controls) ? 1893
Universal high prices will also appear for another reason. You cannot have any doubt but that the Bank will attract hordes of clients once it has used all the methods of advertising to drum up business and as soon as it announces that it will lend money for nothing. All those who have debts on which they are paying interest would want to benefit from this fine opportunity of liberating themselves. And there go twenty billion francs. The State would also want to pay off the 5 billion it owes. 1894 The Bank would also be besieged by every trader who has drawn up a plan, every manufacturer who wants to establish or expand a factory, every crackpot (inventor) who has made a wonderful discovery, or every worker, journeyman, or apprentice who wants to become a master tradesman.
I do not think I am going too far when I say that if the issue of notes aspires to satisfy all forms of appetite, desires, and dreams, it will exceed 50 billion in the first six months. This will be the weight of the demand for capital which will bear down upon the market. But where will the supply come from? In six months, France will not have created sufficient created values (land; tools, and machinery, goods or food products) to satisfy this prodigious increase in demand, for created values, real things do not fall into the apron of "Lady Supply" as readily as do the imaginary values into "Lady Demand's." 1895 However, selling and buying are related terms that express two acts that are linked and, really, indeed, one and the same. What would the result be? An exorbitant rise in all prices or, to express it better, social disorganization, such as the world has never seen before. 1896 And you may be sure that if anyone escapes this, it will not be the least rascally fellow and above all, not the poor devil to whom the Bank has refused credit.
Thus, arbitrary measures to found the Bank, inquisitorial procedures if it wants to assess their confidence (in the borrower), legal tender laws, price controls, and, in the long run, bankruptcy and disorganization, of which the poorest and least cunning will be the first victims; these are the logical consequences of paper money. And that is not all.
You might say to me, "Your criticism is aimed at the means of its execution. We will attend to this later. It is a question of principle alone. Well, you cannot deny that my Bank, leaving aside the question of the means of execution, will destroy (the charging of) interest. Therefore, free credit is at least possible."
I might reply, "No, if the means of execution are not possible." But I will go right to the heart of the matter and say, "Even if your invention did not encompass all the dangers I have pointed out, it would not achieve your aim. It does not achieve free credit ."
You, Sir, know as well as I that the remuneration of capital that we call interest is not attached only to loans. It is also included in the cost price of products. And since you refer to accounting, I will refer to it in turn. Let us open the books of the first entrepreneur we find. We will see from them that he never does anything without ensuring not only a reward for his work but also a return, the amortization of and interest on his capital. This interest is included in the sale price. By reducing all the transactions to purchases and sales, the Bank thus does not resolve nor even touch the problem of the elimination of interest.
Well then, Sir, you claim to reach agreements according to which people who work using their own capital do not earn any more than those who work using the capital of others that has been borrowed for nothing! You are pursuing something that is impossible and unjust.
I will go further and say that even if you were right on everything else, you would still be mistaken in taking as your motto the words free credit . Be careful in fact; you are not aiming to make credit free but killing it (in the process). You want to reduce everything to buying and selling and (to) transfers (of debt) between parties. You think that, because of your paper money, there will be no more need to lend or borrow, that all credit will be without use, null and void, abolished and eliminated for lack of need. But can it be said of something that does not exist or has ceased to exist that it is free?
And this is not just a war of words. After all, in the end, words are the vehicles of ideas. When you announce free credit , you certainly allow it to be understood, whether or not you mean to do so, that every one will be able to enjoy the use of other people's property without paying for it for an indeterminate length of time. The unfortunate people who have no time to go to the bottom of things and ascertain the extent to which your statements are inaccurate will open their eyes wide. They will feel the most deplorable desires arising within them. Getting one's hands on other people's property without contravening justice, what an attractive prospect! For this reason, you have had and are bound to have a great many followers at the beginning.
But if your motto were to be the annihilation of credit , which expresses your genuine thought, people would have understood that, under your regime, they would get nothing for nothing. Greed, that great engine of debt, as Pascal called it, 1897 would have been neutral(ised). We would have limited ourselves to examining, quite coldly, first whether your system is an advance on the existing one and then whether it is practicable. The word free is always very attractive, but I am not afraid to say that, while it has been a lure for many of your followers, it has been a trap for your mind.
This explains the hesitations noticeable in your polemic. When I concentrated on limiting the debate to this question of free credit , you were uneasy. You were fully aware, deep down in your scientific understanding, that credit, as long as it exists , cannot be free, that the repayment of something of value (which has been) borrowed cannot be the same for something which is paid back immediately, compared to something the repayment of which is postponed indefinitely. You made honest concessions with regard to this for which some members of your own church criticised you. 1898 On the other hand, carried along by and committed to your motto, free credit , you made extraordinary efforts to extricate yourself from this unfortunate position. You referred to antimony , you went so far as to say that yes and no can be true of the same thing and at the same time. After the dialectic came the rhetoric. You denounced interest, describing it as theft, etc. etc.
And all this because you had clad your thought in an erroneous vocabulary. Our debate would have been much shorter if you had said to me, "As long as credit exists, it cannot be free, but I have found the means of ensuring that it does not exist, and from now on I will inscribe on my flag the words Annihilation of Credit instead of Free Credit ."
If the question had been set in this way, I would have had only to examine your means of execution. This is what, in your last letter, you have put me in a position to do. I have proved that these means of execution can be summarized in the expression, paper money .
In addition, I have proved:
That in order for a Bank's notes to be accepted, they have to inspire confidence;
That in order for them to inspire confidence, the Bank has to have capital;
That in order for a Bank to have capital, it has to borrow it precisely from A, B, C, D who are the people and it must pay interest for this capital at the going rate;
That if it pays interest for it, it cannot lend it interest-free;
That if it lends its capital to A, B, C and D free of charge after having taken it by force from them in the form of taxation, nothing has changed in the world, apart from there being one more form of oppression;
And finally, that in none of your hypotheses, even by reducing all transactions to sales, do you destroy the remuneration of capital which is always included in the sales price.
The implication of this is that, if your Bank is just a factory producing paper money, it will lead to social disorganization.
If, on the other hand the Bank is based on justice, prudence, and reason, it will do nothing that Free Banking 1899 cannot do better.
Is this to say, Sir, that in my view there is no truth in the ideas you support? In explaining myself on this matter I will take a step towards you. May it encourage you to make one towards me or rather towards the true solution: Free Banking.
However, in order to be understood, I need, at the risk of repeating myself, to establish a few fundamental notions on credit .
Time is precious. Time is money , as the English say. 1900 " Time is the stuff of which life is made ," 1901 as Poor Richard says. 1902
It is from this indisputable truth that the notion and practice of interest are deduced.
For to give credit is to give time.
Sacrificing time to someone else is to sacrifice to him something that is precious, and it is not possible to claim that in business a sacrifice like this should be free of charge.
A says to B: "Devote this week to making me a hat; I will employ it in making shoes for you." "Shoes and a hat are equal in value," replies B, "I agree."
A moment later B changes his mind and says to A: "I have reflected that time is precious to me; I want to devote this week and the following ones to myself. So make me the shoes immediately and I will make you the hat in a year's time." "I agree to this," replies A, "but in a year's time you must give me one week and two hours."
I ask any man of good faith, has A committed an act of piracy in adding a new condition to his profit to offset a new condition to his detriment?
This elemental fact contains the germ of the entire theory of credit.
I know that in society transactions are not as simple as the one I have just described, but they are identical in essence.
Thus, it is possible for A to sell the shoes to a third party for 10 francs and hand over this sum to B, telling him, "Give me the hat immediately or, if you want a year's delay, you can repay me one week's work plus two hours or else 10 francs plus an additional twentieth." We are in perfect agreement with the preceding hypothesis.
We agree, at least I hope so, on the legitimacy of credit, so let us now see to what arrangements it can give rise.
B may have made a verbal commitment only, and yet it is not out of the question that A will pass it on by discounting it. He may say to C: "I owe you 10 francs. B has given me his word that he will pay me 10 francs and 10 sous in a year's time. Will you accept my rights with respect to B in payment?" If C has confidence in this, if he believes it will happen, the bargain may be struck. But who will dare to say that, in order to increase the number of shoes and hats it is enough to increase the number of promises of this nature, with no reference to the confidence placed in them?
B may hand over a written title. In this documented form, the undertaking will avoid arguments and disclaimers; it will inspire more confidence and circulate more easily than a verbal promise. But neither the nature nor the effects of the credit will have changed.
Finally a third party, a Bank, may guarantee B, take over his obligation and issue its own note in its place. This will be a new opportunity for the circulation of credit. But why is this so? Precisely because the signature of the Bank inspires more confidence in the general public than B's signature. How could one believe that a Bank has a useful purpose if it were not based on confidence, and how would it gain this confidence if its notes offered less of a guarantee than those of B?
These various titles must not therefore delude us. We should not see in them something of intrinsic value, but the simple promise to hand over something of value, a promise guaranteed by someone in a position to keep it.
But what I would like to point out, for this is the reconciliation I offered you earlier between your opinion and mine, it is a straightforward transfer of the right to the interest which happens through the intervention of the Banks.
Who pays the interest in the case of a promissory note or a bill of exchange? Obviously it is the borrower, the person for whom others have sacrificed their time. And who profits from this interest? Those who have made this sacrifice. Thus, if B has borrowed 1,000 francs for a year from A and has signed a note for 1,040 francs, it is A who profits from the 40 francs. If he immediately trades this note at a discount of 4 percent, it is the bearer of the note who earns the interest, as is fair, since it is he who has made the advance or the sacrifice of time. If A trades his note at the end of six months to C, C will give him only 1,020 francs for it and the interest will be shared between A and C, since each has sacrificed six months.
However, when the Bank intervenes, things are done differently.
It is still B, the borrower who pays the interest. But it is no longer A and C who make the profit but the Bank.
Sure enough, A has just received his title. If he kept it, at whatever time he negotiated it, he would of course receive the interest for the entire time during which he has been deprived his capital. But he takes it to the Bank. He hands it an entitlement to 1,040 francs and the Bank gives him a note for 1,000 francs in exchange. It is therefore the Bank that earns the 40 francs.
What is the reason for this phenomenon? It is explained by people's preference to make sacrifices in favor of convenience. 1903 Bank notes are very convenient titles. People accept them do not plan to keep them (forever). They say to themselves, "I will not hold this for longer than eight or ten days and I am well able to forego, the interest on 1,000 francs for one week in view of the advantages the note provides me." Besides, notes have this in common with money; the money one has in a purse or safe does not earn interest, which shows, in passing, how absurd people are who constantly speak out against the productivity of money, since nothing in the world is less productive of interest than money.
Thus, if a bank note remains in circulation for a year and passes through forty hands, remaining nine days in each, forty people have renounced in the Bank's favor the rights they had to the 40 francs of interest due and paid by B. Each of them has sacrificed 1 franc.
This being so, it might have been asked whether this arrangement was just, if there was not a means of organizing a National Bank, a communal Bank, which would allow the general public to benefit from the sacrifice borne by the general public, in a word, one that did not levy interest.
If I am not mistaken, Sir, your invention is based on an observation of this phenomenon. It is not new. Ricardo conceived a plan that was less radical but similar, 1904 and I find these remarkable lines in Say's A Commentary on Storch : 1905
This ingenious idea leaves only one question unanswered. Who will benefit from the interest on this considerable sum put into circulation? Will it be the Government? This will be just one more way for it to increase abuses such as sinecures, parliamentary corruption, the number of police informers, and standing armies. Will it be a financial company, such as the Bank of England or the Bank of France? But what is the use of making a gift of the interest paid in individual transactions by the public to a financial company that is already rich? These are the questions that this subject generates. Perhaps they are not insoluble. Perhaps there are means of making the resulting savings highly profitable for the public , but I am not called upon to develop this new order of ideas here.
Since it is the public that pays all of this interest, it is for the public to benefit from it. Certainly, these premises are just one step away from the conclusion. As for the means, I believe that they are obvious; it is not a National Bank that is needed but free banking.
Let us note first of all that the Bank does not benefit from the total amount of the interest.
Apart from costs, it has capital. What is more, it needs to keep a sum of unproductive money constantly ready in its vault.
We cannot repeat too often that (the) notes from a bank are titles of trust. On the day it issues them, the Bank is proclaiming loudly that it is ready to reimburse them at its office and at any time. Strictly speaking therefore it has to keep constantly available enough created value equal to the face value represented by the notes put into circulation, in which case the interest paid by B would be lost for everyone. However, experience having taught the Bank that its notes circulate for a fixed length of time, it takes its precautionary measures with only this restriction in mind. Instead of keeping 1,000 francs, it keeps only 400 (let us say hypothetically) and puts 600 francs to work. It is the interest on these 600 francs that is borne by the public and by the successive holders of the note and which passes in revenue to the Bank.
Well, this should not happen. It should earn only its costs, the interest on any basic capital, and the just profits from all labour or financial dealings. That is what would happen if there were free banking, for competition, which tends to make rates of interest uniform, would not allow the shareholders of a bank to be treated better than the shareholders of any other similar business. In other words, rival banks would be obliged to reduce their discount rates to what is necessary to invest their capital under conditions which are common to all, and this strange phenomenon that I have pointed out, by which I mean the voluntary abandonment of interest to which the successive holders of these notes is subject, would benefit the general public in the form of a reduction in the discount rates. To be even more accurate, I will say that the interest on a 1,000 franc note put into circulation would be shared. Part would go to the Bank to cover the sum it is obliged to keep in reserve, its costs, and the rent (interest) on its original capital, while the other part would be converted by competition into a reduction in the discount rate.
And note this well, this does not mean that interest would tend to become free of charge or to be eliminated. It means only that it would tend to be received by the person who has a right to it.
But privilege has intervened to allocate it (interest) otherwise, and since the Bank of France has no competitors, instead of retaining just part, it is pocketing everything.
I would like, Sir, to show free banking in another light, but this letter is already too long. I will limit myself to outlining my thought.
What is commonly known as interest comprises three elements, which we are only too accustomed to confuse:
- Interest properly speaking, which is payment for the period (of the loan), the price of time; 1906
- The cost of circulation;
- The insurance premium.
Free banking would act on these three elements simultaneously in a favorable manner and in the form of a reduction in price. It would maintain interest properly speaking at the lowest level for the reasons I have given, without ever eliminating it. It would reduce circulation costs to a figure that, in practice, would be close to zero. Finally it would tend to reduce and above all to level out the insurance premium, which is by far the most burdensome element that makes up the total interest, especially for the working classes.
If it is the case that the men who enjoy an abundance of credit in France, such as the Mallets, 1907 the Hottingers, 1908 or the Rothschilds, 1909 have access to capital at 3 percent, it can be said that this is the interest component and that everything others pay above this represents the cost component, and in particular the insurance component. This is no longer a question of the price of time but of the price of risk, or the difficulty and uncertainty of recovering the loan.
How will free banking improve and equalise the condition of borrowers with respect to these issues? Let the reader solve the question for himself. I prefer to leave him this wearisome task rather than give it away to him.
On this question, as on all, the true solution is thus freedom. Freedom will cause banks to spring up everywhere there is a center of (economic) activity and will cause these banks to associate with each other. It will make those two great levers of progress, savings and credit, available to every merchant and every artisan. It will hold down interest to the lowest level to which it can go. It will spread habits that most favor the formation of capital. It will make all the dividing lines between the classes disappear and achieve the mutuality of services without eliminating the price of time , which is one of the legitimate and essential elements of human transactions.
Free banking! Freedom for credit! Oh, why, Mr. Proudhon, has your fiery propaganda not taken this direction? Do you not advocate freedom in all other respects as a right, an attribute (of mankind), or a lesson for all men? Do you not demand freedom to buy and sell? And what, after all, are loans if not the sale of a use (of something), the sale of time? Why should this transaction be the only one to be regulated by the State or trapped within the confines of your ideas? Do you have faith in the human race? Work towards releasing it from its chains and not towards forging new ones (for it). Accept that the motive that impels (the human race) towards unlimited progress is inherent in itself and not in the minds of legislators. Let us achieve freedom and the human race will be fully capable of bringing forth all the progress that its nature contains. If it is possible and good for credit ever to be free or eliminated, as you believe, a free human race will accomplish this work more surely than your bank. If this is neither good nor possible, as I am convinced is the case, a free human race will avoid the abyss into which your bank is propelling it.
In the name of right, in the name of justice, in the name of your faith in human destiny, in the name of the good feeling that it is always desirable to foster among all the parties involved in (debate and) propaganda, I thus entreat you to substitute for the words Free Credit on your banner those of the Freedom of issuing Credit. 1910 But I am forgetting that it is not my place to give advice. Besides, what good would it do? Have we ever seen the leader of a school retrace his steps and face up to this unjust and terrible word, Apostasy? There are those who in their lifetimes have committed rash acts; they will not commit this one, although it is more worthy than all (the) others of gratifying the pride of a noble heart.
FREDERIC BASTIAT
Letter No. 13: P. J. Proudhon to F. Bastiat (11 February 1850)Psychological consultation. Recapitulation. Accounting is an infallible method. Closure of the discussion.
11 February 1850
MR. BASTIAT,
Your last letter fulfills all my predictions. I was so sure of how it would turn out for me, that even before I received the 4 February issue of La Voix du Peuple , I had already written three-quarters of the reply which you are about to read and all that is left for me to do is to bring it to an end.
You are sincere Mr. Bastiat; you do not leave anyone room to doubt it. I have moreover acknowledged this and I see no grounds for retracting my acknowledgement. What I really do have to tell you that is your intelligence is asleep, or rather it has never seen the light of day. This is what I will have the honor of showing you by summarizing our debate. I hope that the sort of psychological consultation in which you will take part and whose subject will be your own mind will set you on the road to that intellectual education without which a man, no matter what dignity of character distinguishes him or whatever talent he displays, is, and never will be anything other than, an animal that talks , as Aristotle puts it. 1911
What constitutes intelligence in man is the full, harmonious, and continuous exercise of the following four faculties: Attention, Comparison, Memory, and Judgment . At least this is what I was taught in secondary school and what you will find in all schools of philosophy.
Two or more propositions linked one to another and forming a systematic whole, constitute a process of understanding . Understanding takes various forms: syllogism, induction, dilemmas, paradox, etc. All of these come under the heading of reasoning .
The art of reasoning is called logic ; strictly speaking, it is intellectual mechanics. All the faculties taken together constitute REASON.
Plato's induction, Aristotle's syllogism, the contradiction which we associate with the sophists, Condillac's notion of identity 1912 and those antimonies we find in Kant and Hegel, are all merely so many forms of reasoning and particular applications of logic; in the same way as the use of steam as a driving force led to the invention of all sorts of machines, locomotives, steam boats, fixed machinery, high or low pressure machinery, etc., but all of which stem from the same principle: steam.
All the sciences without exception are based on logic, that is to say, on the exercise of the four prime faculties, attention, comparison, memory, and judgment. This is why science is essentially a matter of demonstration; spontaneity, intuition, and imagination have no scientific authority. It is for that reason also, that is to say because of their rational faculties, that men become capable of communicating their thoughts to one another and conversing with one another; if you take away their attention, comparison, memory, and judgment, they talk one after the other or all at once. They do not answer each other and no longer understand one another.
Let us apply these rules to human reason, our common criterion.
From the outset of this dispute, and in a categorical reply to the question you have set me, that is to say, whether interest on loans is legitimate , I told you that in current economic conditions, and given the fact that credit has not been democratically organized, I considered this to be indubitably the case and therefore the arguments you took the trouble to put before me were pointless. I also told you that I accepted them in advance, and that the entire question, in my view, was to establish whether the economic environment could be changed, and that Socialism, in whose name I was speaking, asserted this possibility. I added that changes in the conditions of credit were a necessity for the tradition itself, the final term of the procedure that you defend with so much obstinacy and so little philosophy.
Therefore, to the question you put to me, is interest on capital legitimate, I had no hesitation in replying: Yes, in the current state of affairs, interest is legitimate. I maintain, however, that this order can and must be modified, and that inevitably, whether it please us or not, it will be. Was this, then, an evasive reply? And did I not have the right to hope that, myself having replied so clearly to your question, you would in turn answer mine?
But I was dealing with a man whose mind is hermetically sealed and for whom logic does not exist. It is in vain that I shout to you: "Yes, interest is legitimate in certain conditions independent of the will of the capitalist; no, it is not legitimate in certain other conditions, as it is now up to society to create new conditions, on the grounds that interest, excusable in lenders is, from the point of view of society and history, a form of plunder!" You, however, will have none of It. You do not understand it and you do not even listen to my responses. You lack the first faculty of intelligence, namely attention.
What is more, this is what your second letter adds up to, which starts thus: "Sir, you have set me seven questions. Please remember at this point that there is only one question between us: Is interest on capital legitimate ?" All the rest of your epistle is just a reproduction of the arguments in the first, arguments to which I had not replied because I had no need to answer them. Change the environment, I told you, and you change the principle and the practice. You took no notice of my words. You thought it more useful to poke fun at contradiction and antinomy, at thesis, antithesis, and synthesis, aligning usurers and idiots on your side at very little cost, happy to laugh at what they tremble to perceive.
What did I do then?
To rouse this rebellious faculty of attention in you, I used a variety of terms of comparison. Using the examples of the monarchy, polygamy, legal combat, and industrial corporations, I showed you that the same thing could very well have been good, useful, legitimate, respectable, and then become harmful, illicit, and disastrous, depending entirely on the circumstances that surround it, that progress, the major law of humanity, is nothing other than this constant transformation of good into evil and evil into good and that, among other things, this is also true of interest. I said that the time had come for interest to disappear, as can easily be seen from the political, historical, and economic signs that I was pleased to indicate to you in summary form.
This was calling upon the most precious of your faculties. It was saying to you: "When I state that the conditions that make loans excusable and legitimate have disappeared, I am not saying something that is extraordinary, I am just stating a particular instance of social progress. Observe and compare, and once you have made the comparison and acknowledged the analogy, let us return to the question I asked in reply to yours. Can the forms of credit be modified so as to lead to the elimination of interest, and ought they to be so? This, without prejudice to the exoneration that science owes to all lenders, speculators, capitalists, and usurers, is what we have to examine.
But I'll be damned! Is Mr. Bastiat himself in the business of comparisons at all? Is he even capable of making comparisons, any more than he is of paying attention? Sir, you have no grasp of historical analogy and the movement of institutions, and the general law which springs from them you call fatalism ; " I wish to remain on my own ground !," you say in your third letter. Thereupon, like some chatterbox and hugging to your bosom all the words that might supply a few excuses, you quote as though they were new arguments a few facts whose legitimacy in the established discourse I do not deny but whose necessity I query, and consequently whose revision and reform I demand.
When a man who calls himself an economist, with pretensions to the ability not only to reason, but also to explain and sustain a scientific discussion, has come to this impasse, I am bold enough to say, Sir, that he is a desperate man. No powers of attention and comparison ; a total inability to listen and reply! What can I now learn from you? You are adrift alike from philosophy, science, and humanity.
However, let us not lose heart. Perhaps, I tell myself, attention and comparison will be aroused in Mr. Bastiat with the help of another faculty. Observing an idea attentively and then comparing this idea with another is too subtle and abstract a process. Let us resort to history: history is the series of observations and experiences made by the human race. Let us explain progress to Mr. Bastiat; in order to understand progress in its unity and consequently its laws, all that one needs is memory .
When I talk about memory as the faculty of human understanding, I am distinguishing it essentially from individual recollections. Animals recollect but have no memory. Memory is the faculty of making connections and classifying recollections, of considering several consecutive facts as one and the same fact and applying seriality and unity to them. It is attention applied to a series of things accomplished over time and generalized.
So I wrote a monograph on usury. 1913 I showed you the origin of usury, its causes, its pretexts, its analogues, its development, its effects, and its consequences. I showed that the derivations of the principle of usury are completely unfeasible and absurd, that it inevitably engenders immorality and poverty. Having done this, I said to you: "You see that the order and preservation of society are now incompatible with usury, that the conditions of credit can no longer go unchanged, that interest, legitimate at the outset and still excusable today in lenders, (but) upon whom it does not rely for it to be removed, has become legalised plunder in the eyes of social conscience, a monstrous institution that is calling unanswerably for reform."
Unless I am mistaken, this was an opportunity to study history after all, with the new conditions governing credit and the possibility, affirmed by me, of making it free of charge. And remember that most carefully putting aside personal questions, I constantly said to you: "I am not accusing capitalists; I am not complaining about landowners. I am far from condemning bankers and usurers as the Church has done. I acknowledge the good faith of all those who benefit from interest. I denounce an error that is entirely collective, an antisocial Utopia full of injustice." Well then, did you even understand me? For as for refuting me, you have not even dreamt of doing so.
I have your fourth letter before me; 1914 is there a shadow of that historic perception, which is, as I have told you, memory? No. Accomplished facts exist for you solely as memories, that is to say they are nothing. You do not deny them, but since it is impossible for you to follow the thread and generalize from them, you do not extract their content; their meaning escapes you. Your faculty of memory, like your faculties of attention and comparison, is non-existant. All you can do is repeat the same thing over and over again: He who lends for interest is not a thief and nobody can be forced to lend. After that, what is the use of knowing whether credit can be organized on different bases or examining the results of the practice on the working classes? Your theme is done; you do not depart from it in the slightest. And proceeding thus, after explaining practice of usury using several examples, you reproduce it using (theoretical) propositions and say: "This is science!"
I admit to you, Sir, that for an instant I doubted whether there existed on this earth a man who was as deformed by nature with regard to intellect and I impugned your character. For my part, I would a thousand times rather be condemned for my frankness than be seen as clearly lacking what is man's finest quality, the one that defines his power and his essence. My letter dated 31 December was written under the influence of these painful conclusions, and you can now easily grasp its meaning.
I said to myself: since Mr. Bastiat does not deign to honor my reply with his attention, nor to mention the facts that inspire it, nor to take note of the historical movement that quite invalidates his own approach; since, moreover, he is incapable of entering into a dialogue with me and of grasping the arguments of his adversary we have to conclude that he thinks too highly of himself. This is a man, as the saying goes, who delights in his own opinions and, by dint of listening only to himself, has cut himself off from any conversation with his fellow men. Let us therefore attack his judgment, that is to say, his awareness, his personality, his ego .
This is why, Sir, I was led to attack, henceforth, your intellectual honesty rather than your lines of reasoning which are fundamentally invalid with respect to this question. I questioned your good faith: it was an experiment that I allowed myself to carry out on you as an individual, and I beg your pardon for this. To give body and shape to my accusation, I concentrated our entire discussion on a contemporary reality, tangible, and decisive, with which I identified not only your theory but you yourself: the Bank of France.
The Bank of France, as I pointed out to you, is the living proof of what I have been repeating to you for the last six weeks, namely, that while interest was at one time necessary and legitimate, society now has the duty and opportunity of abolishing it.
It has been proved, in fact, by a comparison between the Bank's capital and its receipts that, while paying its shareholders interest on the said capital at 4 percent, it can provide credit and offer discounts at 1 percent and still make a splendid profit. It can do this and it ought to do this; by not doing this, it is committing theft. Its refusal is the reason rates of interest, house rents, and farm rentals, which ought to decrease everywhere to a maximum of 1 percent, remain at the high rates of 3, 4, 5, 6, 7, 8, 10, 12, and 15 percent. It is the reason the nation pays more than six billion each year in bonuses and bribes to the non-productive classes and why the nation produces an output of only ten billion each year although it could produce twenty. For this reason, either you justify the Bank of France or, if you cannot do so, if you dare not do so, you should acknowledge that the practice of interest is just a transitional one that must disappear in a higher form of society.
This, Sir, is what I said to you and in pithy enough terms to provoke on your part, a judgment, given your lack of attention, power of comparison, and memory, with regard to the wholly historical question that I had submitted to you previously, I mean a simple and completely intuitive act of thought, faced with a factual question to which the answer is yes or no . All you had to do was reply in a few words, that is true or that is not true , and the process would have been complete.
So either, yes , it is true that without cheating its shareholders and harming itself, the Bank of France could discount at 1 per cent. It could therefore, by virtue of the competition this reduction would create, effect a decrease in the cost of all forms of capital, its own included, to below 1 percent. And since, once begun, the process of reduction would never stop, the Bank could, if it wished, cause interest to vanish altogether. So when credit is paid simply what it is owed, it immediately becomes free credit. It follows, therefore, that interest exists only out of ignorance and barbarism, and therefore that in organised democracy, 1915 usury and rent would be illegal.
It is not correct, that is to say it is not true, whatever the balance sheet published each week by the Bank of France says, that it has a capital of 90 million and receipts of 460 million; it is not true that these huge receipts come from the substitution of bank paper for cash in commercial circulation, etc. etc. On this matter, I referred you back to Mr d'Argout, to whom the debate constantly returned.
Would anyone ever have believed this if you had not drawn our attention to it? To this categorical and stunning fact about the Bank of France you reply neither yes nor no . You do not even have an inkling that the fact we asked you to consider exemplifies perfectly your theory of interest. You do not notice the synonymous nature of these two propositions: Yes, the Bank of France is able to provide credit at 1 percent, therefore my theory is wrong; No, the Bank of France cannot provide credit at 1 percent, therefore my theory is correct.
Your reply, an unimpeachable monument to an intellect that the Divine Word has never illuminated, is that for you it is not a question of the Bank of France but of capital, that you are not defending the privilege of the Bank of France but only the legitimacy of interest, that you stand for the free banking as well as freedom to lend, that if it were possible for the Bank of France to offer credit and discount for nothing you would not stand in its way and that you limit yourself to making one statement which is that the notion of capital necessarily supposes and entails the notion of interest and that the former does not happen without the latter, although the latter occurs sometimes without the former, etc.
This being so, you are as powerless to judge as to observe, compare, and call things to mind. You lack the kind of legal mind which, when faced with two identical or contrary facts, states: Yes, they are identical or no, they are not identical. Doubtless, since you are a thinking person, you have intuitions, flashes of illumination and revelations; for my part, I do not presume to say what is going through your mind. But what is certain is that you do not reason, nor do you reflect. What type of man are you, Mr. Bastiat? Are you even a man?
What! Having been defeated by me in turn in questions of metaphysics, which you do not understand in the slightest, in questions of the philosophy of history, which you describe as fatalism, and in discussion of economic progress, whose most recent advances show that interest is a reductio ad absurdum , you are now surrendering to me on the subject of financial management, whose most splendid corollary is precisely the conversion of credit which is paid for into free credit, you nevertheless persist in upholding the absolute truth of your theory, the one that you have thus destroyed with your own hands! You give ground on all sides; metaphysics, history, social economy, and banking are lacking in your thesis, just as attention, comparison, memory, and judgment are absent from your mind! I ask you once more, what is your method of argument and how do you want people to take you?
Notwithstanding this, I was not discouraged. I wanted to go to the limit and make one more effort. I believed that this inertia in your intellectual faculties might stem from a lack of ideas and I nurtured the hope of being able to kindle the spark in your soul. You yourself appeared to be pointing this way forward to me when you said: "C onvinced that this entire debate rests on the NOTION of capital," and therefore you were trying to explain what you understood by capital; I then said to myself: Since he cannot be approached through logic, let us attack him by way of ideas. It would be a shame for a discussion like this to end without the two opponents being able to acknowledge that, while they have not been able to agree, at least they have understood one another!"
Therefore, especially for you, I analyzed the notion of capital. This analysis completed, I defined the term, deduced its corollaries, and then, in order to avoid any ambiguity in the terms used, I called upon the science of accounting. I recounted the theory of capital first according to your ideas and then according to mine in two comparative tables using commercial book-keeping entries. I devoted thirteen columns of La Voix du Peuple to this exposition, out of kindness, the point being that in my view an economic revolution should emerge from this, and even better, a new science.
All this was a final chance to say to you one last time:
Be careful! Times have changed. The practice of interest has exhausted all its possible consequences, which are now acknowledged to be immoral, destructive of public happiness, and mathematically wrong. Book-keeping gives the lie to interest and its consequences; indeed, book-keeping leaves you without intellectual resources, since it demolishes the very notion of capital. For God's sake, take note then of the facts I am pointing out to you; observe, compare, synthesize, judge, and go back to basic ideas: it is only then that you will have the right to express an opinion. Doubtless, you will persist in your error, but at least your error will be reasoned and you will be mistaken in full knowledge of the facts.
How have you fared in the face of this test? This is what I will be examining, when I reply to your last letter.
I leave aside your grandiloquent and pompous introduction in which you both tell society how lucky it should think itself for the service I have provide d in unveiling the latest word on Socialism and also celebrate your victory. I will not take up your jokes about my doubts and indecisions in my polemic; our readers are sufficiently educated in this respect. They know that what you call doubt in me is none other than the fundamental distinction I made from the outset between the past and present economic systems, a distinction that I supported in turn with all the proofs that metaphysics, history, progress, and even daily routine provided for me, and to which I have been endeavoring, unsuccessfully, to call your attention for the last two months. In a word, I am setting aside everything in your letter that is not directly related to the question and will deal only with the essential.
I had defined capital thus: ANY CREATED VALUE in land, tools of work, goods, provisions of food, or money, which is used or capable of being used for production .
What a surprise! You agree with this definition; you accept it and even seize onto it. Alas! It would have been a hundred times better for you to reject it, along with antinomy and the philosophy of history, rather than overload your understanding with a formula like this! The frightful havoc this horrendous definition has wreaked in your mind has to be witnessed to be believed!
First of all, you have not understood it at all. In spite of the trouble I took to explain it to you, you do not know what a created value is: if this were not so, could you have put the following words into the mouth of one of your characters: "Gentlemen, if you want things of created value from me, such as my furniture, shoes, nails or clothes, then give me in exchange some created value, shall we say, twenty francs in cash"?
In commerce, one calls created value , for example, bills of exchange of sound provenance, possessing full legal tender, issued by a reputable and solvent house, accepted and where necessary endorsed by people who are equally solvent and reputable, such that they offer guarantees of the order of triple or quadruple, etc. and can readily circulate like cash because of the number and solidity of the sureties. The more guarantees and acceptances they have, the more secure is their value. The ideal thing would be to have every citizen as their guarantor and acceptor. Money is like that, the best of all things of created value. Apart from the fact that it carries its own intrinsic guarantee, it also bears the signature of the State that launches it into circulation and like a bill of exchange, is assured of acceptance by the general public. By way of analogy, I would say that furniture, shoes and indeed all other products come to be acknowledged as having created value, not because their manufacture has been completed and they are displayed for sale - which is what you say - but because they have been evaluated by both sides to the transactions and delivery has taken place; and yet solely for the person purchasing them or the one who agrees to purchase them again at the same price. This is how, as I have told you, a product becomes capital, and it is capital only for its acquirer who makes it either a tool or an element of further production. For this person, I say, and for him alone, the product becomes created value, in a word, capital.
Here, Sir, I at least have the advantage that you will not disagree with me. I am the author of the definition and I know what I meant to say; your words make clear your lack of understanding. You do not understand me.
Be that as it may, and without paying it much attention, you take my definition of capital as valid and say that it will serve for the purposes of the discussion. You therefore acknowledge implicitly that society's capital and product are one and the same, and that as a result any credit operation, unless there is fraud, results in an exchange, two things that you initially denied and that I would now congratulate you for having finally understood if only I could believe that you are faithful to the meaning of my words. What is more fruitful, in fact, than this analysis: Since value is nothing more than a proportion, and that all products are necessarily proportional to each other, it follows that from the social point of view products are always values and created values. There is no difference between capital and product, as far as society is concerned. This difference is purely subjective for individuals. It comes from their inability to express the proportionality (between) products in an exact number and from their attempts to arrive at an approximation. 1916 For let us not forget that the secret laws of exchange, the absolute rule governing transactions, intuitive rather than written, natural rather than conventional, is to make actions in private life conform as closely as possible to the practices of social life.
Well, and this is what gives rise to my doubts, this definition of capital that is so profound and clear, that you find worthy of acceptance, this identity between capital and product, credit and exchange, all of this, Sir, is a negation of your theory of interest; indeed, have you no inkling that this is so? Given that J. B. Say's formula, 1917 products are exchanged for other products is identical to that other formula, capital is exchanged for capital; that the definition of capital accepted by you is part of that synonymous relationship; that everything in society converges to make the realities of commerce conform ever closer to this law, then it is obvious a priori that the day will come when relationships governing loans, rents for accommodation, farm rents, interest, and similar things will be abolished and converted into relationships of exchange. In this way the benefits provided by capital will become simply an exchange of capital and, since all transactions will be conducted in cash, interest will inevitably disappear. The concept of usury under this conception of capital would entail contradiction.
You would have been bound to understand this if, when adopting my definition of capital, you had reflected on it for a single minute. But to believe that you will reflect on your own notions, to think that once you have accepted a principle you would adopt its consequences, its movement and laws, is to be sadly strangely mistaken, as I have discovered to my cost. Reasoning, in your eyes, is to contradict without rhyme or reason, with no follow-up nor method. Ideas slide across your mind without penetrating it. You take their sense, which you then apply as you will in accordance with your intellectual preoccupations, but discard the ideas themselves, the germinal insights that alone render intelligence fertile and resolve our difficulties.
Nevertheless, I spared no effort to enlighten you on the meaning and portent of my definition and put you on your guard against it. Abandoning the hope of getting you to conceive it just through the metaphysics of language, I reduced it to equations that were, so to speak, algebraic. For what is the science of accounting that I used on this occasion, other than a form of algebra? But this is a totally new question. Your reasoning on bookkeeping is exactly the same as for created values; having accepted a definition without understanding its terms or glimpsing its consequences, it was still left to you to deny the proofs offered. But, Sir, to prove is to define; what stance do you have with respect to all this?
In your letter dated 3 February, 1918 I read:
"Having invented these figures, you establish accounts for A, B and the Bank. This accounting, once you have accepted the figures, is beyond criticism. However, can we accept your figures? Are they in conformity with the nature of men and of things?"
This, I venture to say to you, is the reversal of arithmetic and common sense. However, Sir, if you had had the slightest notion of accounting, you would not have written lines like these. You would have known that if, as you are obliged to admit, my accounting is beyond criticism , the economic facts on which I have based it are, in the first system, that is yours, of necessity wrong, while in the second system, that is mine, they are of necessity right. This is the essence of accounting, that it does not depend on the accuracy of its data; it does not suffer from inaccurate data . It is intrinsically, and in spite of the wishes of the accountant, a demonstration of the truth or falsehood of its own data. It is by virtue of this property that traders' books have legal standing, not only for them but also against them; error, fraud, lies, inaccurate data in short, are incompatible with bookkeeping. A bankrupt person is condemned on the testimony of his entries much more than on the denunciation of public authority. Such is the incorruptibility of this science, I tell you, that I have highlighted it in my System of Economic Contradictions 1919 as being the finest application of modern thought.
You speak of inaccurate data . But the data on which I have based my accounting is precisely yours, the fact of capital that produces interest . As this fact is deemed to be true in your eyes, I subjected it to the proof of accounting I did the same for the opposing data, which is the one I am defending. Once I had completed this operation, you proclaimed it to be beyond criticism, but, as its conclusion was against you, you protested that the data was wrong . I ask you, Mr. Bastiat, what did you mean to say?
I am certainly no longer surprised now that, as a result of not seeing in a definition what it contains, you ended up finding what is not there, and that from one mistake to the next you fell into the most extraordinary hallucination. Where in this irreproachable accounting, notwithstanding its inaccurate data in your view, did you find that the system that I am defending is paper money ? I challenge you to quote a single word of mine in this long controversy that authorizes you to say as you do, and I believe you do so to extricate yourself from an embarrassing situation, that the theory of free credit is the theory of "assignats." I have not said a word on the alternative theory and system that I would like to see substituted for the one that governs us and in which I continue to see the cause of all the misfortunes of society. You did not want this system to be discussed; you have remained on your home ground and all that I have been able to do is to show you, without however making myself understood, that the practice of interest leads straight to the practice of free credit and that the hour has come to complete this revolution. There has never been any question as to my own theory. I have constantly reasoned in accordance with your data; I have restricted myself, in company with you, to the ways and customs of capital. Read my letter dated 31 December again 1920 ; it does not mention the People's Bank at all, but strictly the BANK OF FRANCE, that privileged Bank directed by Mr. d'Argout, whom you presumably do not suspect of being a partisan of paper money, nor of money made of paper, nor of assignats. A Bank, in short, that since the merging of departmental Banks 1921 and the issue of 100 franc notes has seen its deposits constantly increase, such that it now possesses 460 million in ingots and currency and will end up by engulfing a billion in cash in its coffers if the authorities reduce still further the face value of notes, establish other branches, and business picks up. This is the Bank I was talking to you about; did you perhaps take it for a hypothetical speculation, and its 460 million in cash as a Utopia?
This is what I said to you:
The capital of the Bank of France is 90 million, its receipts are 460 million and its issued notes 472, or therefore a capital, whether realized or guaranteed, of 382 million, which belongs to the French people and on which the Bank ought not to receive any interest.
Well now, the interest owed by the Bank to its shareholders being 4 percent on a capital of 90 million with administrative costs, including risk, at ½ percent, the accumulation of specie is progressive and the total number of issued notes allowable without danger to rise to a figure a third greater than the number of receipts, I say that the Bank of France could and should reduce the rate of its discounts to 1 percent, on pain of charges of misappropriation and theft and, furthermore, organize credit on property at the same time as commercial credit. Why, therefore, do you talk to me of paper money, assignats, legal tender laws, price controls, bankrupt debtors, borrowers of bad faith, profligate workers, and other nonsense? Let the Bank do its job with prudence and strictness as it has done up to now; that is not my business. I say that it has the power and the duty to give credit and discount to those to whom it is accustomed to give such, but at 1 percent per year, including commission. Will Mr. Bastiat for once do me the honor of listening to me?
MR. BASTIAT: "For a Bank's notes to be accepted, they have to inspire confidence;
For them to inspire confidence, the Bank has to have capital;
For the Bank to have capital, it has to borrow it and consequently pay interest on it;
If it pays interest on it, it cannot lend it interest-free." 1922
ME: Well, Sir, the Bank of France has found capital without interest; right now it possesses 382 million that do not belong to it; it will have double this under the same conditions whenever it wants. Ought it to exact interest?
MR. BASTIAT: "Time is valuable. Time is money, as the English say. Time is the stuff of which life is made, as Poor Richard says.
To give credit is to allow time.
Sacrificing time to someone else is to sacrifice something precious to him; a sacrifice of this nature cannot be free of charge."
ME: You will therefore never get the point! I have told you, and I now say it again, that with regard to credit what makes a person need time is the difficulty in getting money for himself, and that this difficulty is above all linked to the interest demanded by the holders of money, so that if the interest was zero, the period of the credit would also be zero. Well, under the conditions that the general public has granted it since the February Revolution, the Bank of France is able to reduce its interest almost to zero; which of us is going round in circles?
MR. BASTIAT: "Oh, yes! … I think … I think I understand at last what you mean. The general public has renounced in the Bank's favor interest on 382 million in notes that are in circulation under its sole guarantee. You ask if there is no way of having the general public benefit from this interest or, what amounts to the same thing, organizing a National Bank that does not exact interest. If I am not mistaken, your invention is based on the observation of this phenomenon. Ricardo had devised a less radical but similar plan and I have found the following remarkable lines in Say:
This ingenious idea leaves only one question unanswered. Who will benefit from the interest on this considerable sum put into circulation? Will it be the Government? This will be just one more way for it to increase abuses such as sinecures, parliamentary corruption, the number of police informers, and standing armies. Will it be a financial company, such as the Bank of England or the Bank of France? But what is the use of making a gift of the interest paid in individual transactions by the public to a financial company that is already rich? These are the questions that this subject generates. Perhaps they are not insoluble. Perhaps there are means of making the resulting savings highly profitable for the public , but I am not called upon to develop this new order of ideas here. 1923
ME: Well, Sir, your J. B. Say, with all his genius, is a fool. The question has been fully answered; it is that the people who provide the funds, the people who here are the sole capitalists, the sole silent partners , and the true owners, the people who ought alone to benefit from the interest, the people, I say, ought not to pay interest. Is there anything in the world that is simpler and fairer?
Thus, as you will agree, on the word of Ricardo and J. B. Say, there is a way of making the general public benefit , and I quote your own words, from the interest it pays to the Bank, and this way is to organize a National Bank that gives credit at an interest rate of zero percent!
MR. BASTIAT: "No, not that, may God preserve us! It is true that I acknowledge that the Bank ought not to benefit from the interest paid by the general public on capital that belongs to the general public; I also agree that there is a way of having the general public benefit from this interest. However I deny that this way is the one you indicate, that is to say, the organization of a National Bank. I state and repeat that this way is via free banking.
Free Banking! Freedom for credit! Oh, why, Mr. Proudhon has your fiery propaganda not taken this direction?"
I will spare the reader your long speech, in which you deplore the hardening of my position and beg me with comic seriousness to substitute your slogan, Freedom of credit, for mine, Free credit, as though credit could be freer than when it costs nothing. If there is one thing you ought to know it is that there is not one bone in my body that resists freedom of credit; whether it refers to banks or to teaching, freedom is my supreme law. However, I say that until the free banking and competition between bankers enables the general public to benefit from the interest the public pays the banks, it would be a good, useful, constitutional thing and a saving that is wholly republican to create, in the midst of other banks and in competition with them, a National Bank provisionally offering credit at 1 or ½ percent at the risk of future events. Does it offend you to make the Bank of France into this National Bank I am proposing, for the reimbursement of its shareholders? While the Bank of France hands back the 382 million in currency that belongs to the general public and of which it is just the holder. With 382 million, a bank can be very easily organized, don't you think? And the overwhelming majority of people can be taken care of too. In what way, therefore, will this bank, formed by a limited partnership with all the people, not be free? Just do this and when you have belled the cat of revolution, when you have promulgated the first act of the democratic and social Republic in this way, I will be responsible for deducing the consequences of this major innovation for you. You will then know just what my system is worth.
As for you, Mr. Bastiat, who as an economist are making fun of the metaphysics of which political economy is just the concrete expression, you who as a member of the Institut, do not even know the philosophy of your own century, and who as the author of a book entitled Economic Harmonies , probably in opposition to my Economic Contradictions, 1924 do not understand anything about the harmonics of history, only see in historical progress a dreadful fatalism, you the champion though you may be, of capital and interest, are ignorant of the very principles of commercial accounting and who, through the meanderings of a bewildered imagination and on the word of authors you revere rather than in accordance with your intimate convictions, realize that it is possible to organize a bank that gives interest-free credit, using public funds, nevertheless continue to protest against FREE CREDIT in the name of freedom of credit; you are doubtless a good and worthy citizen, an honest economist, a conscientious writer, a loyal representative, a faithful republican, and a true friend of the people, but your final words 1925 give me the right to say to you scientifically: Mr. Bastiat, you are a dead man. 1926
P. J. PROUDHON
Letter No. 14: F. Bastiat to P. J. Proudhon (7 March 1850) 1927Legitimate right to defense. Origin and summary of a discussion of which the general public is the sole judge.
The cause has been understood and the debate is closed, says Mr. Proudhon, one of the parties to the debate electing himself its judge. Mr. Bastiat has been condemned … to death. I condemn him as regards his intellectual capacity; I condemn him for his inability to pay attention, in his powers of comparisons, in his memory, and his judgment. I condemn him as to his powers of reasoning, I condemn his logic, and I condemn him personally by way of induction, syllogism, contradiction, identity, and antinomy.
Oh, Mr. Proudhon, you must have been very angry when you cast this cruel anathema on me!
It reminds me of the formula of excommunication:
Maledictus sit vivendo, moriendo, manducando, bibendo.
Maledictus sit intus et exterius.
Maledictus sit in capillis et in cerebro.
Maledictus sit in vertice, in oculis, in auriculis, in brachiis, etc. etc.; maledictus sit in pectore et in corde, in renibus, in genubus, in cruribus, in pedibus et in unguibus . 1928
Alas! All the Churches are alike; when they are in the wrong they become angry.
I reject the decree, however, and protest against the closure of the debate.
I reject the decree because it is not up to my opponent to pronounce it. I acknowledge the general public alone as the judge.
I protest against the closure of the debate because, as the defendant, I have to have the last word. Mr. Chevé wrote to me and I answered him; Mr. Proudhon wrote to me and I answered him; he wrote to me again and I replied on the spot. It pleased him to write a fourth, fifth, and sixth letter; I was happy to send him the same number of replies, and he can make all the pronouncements he likes, because unless justice and accepted practice are themselves nothing but contradictions, I am within my right.
For the rest, I will limit myself to summarizing what I have said. Apart from the fact that I cannot continue to debate with Mr. Proudhon if he is not willing, and all the less so, since personalities are starting to replace argument, I would now be in a far too invidious position. Mr. Proudhon is being persecuted 1929 and this would mean that all bias and public sympathy would be with him. He had put the cause of free credit up for scrutiny, and here we have the authorities duly obliging by placing him on the pedestal of persecution. I had just one opponent; now I would have three, Mr. Proudhon, the government, and popular support.
Mr. Proudhon criticises me for two things, first of all for having always defended my statement that interest is legitimate and then for not discussing his theoretical system, that of free credit .
It is true that in each of my letters I have concentrated on examining the essential nature of capital from various points of view in order to establish the legitimacy of interest. For any logical mind, this way of proceeding was critical, for it is very clear that the illusion of free credit evaporates once it is demonstrated that interest is legitimate, useful, and indestructible and has the same essential character as any other kind of remuneration, whether it be profit or wages, constituting as it does the fair payment for a sacrifice of time and labour, voluntarily handed over to the person making the sacrifice by the person who benefits from it. In other words, a loan is one of the many forms of sale . Besides, ought not I to try my best to give this polemic some useful purpose? And when the misguided labouring classes attribute their sufferings to Capital, when the flatterers of the people continue to arouse them against the infamy and infernal nature of capital, encouraging their prejudices in the most despicable way, what more could I do than to set out before the gaze of all the origin and effects of this power that is so misunderstood, since in this way I achieved the precise objective of our argument at one fell swoop?
By proceeding thus, I showed some degree of patriotism and self-sacrifice. If I had heeded only my writer's pride, I would have limited myself to discussing and refuting Mr. Proudhon's quibbles. Criticism is an easy and glittering thing; setting out a doctrine without being obliged to do so is to abandon this fine role in order to hand it over to your opponent. Nevertheless, I did this, because I was more concerned with the polemic than the polemicist and with the readers rather than myself.
Does this mean that I neglected Mr. Proudhon's arguments? I will show that I answered them all and so categorically that he abandoned them all in succession. All the proof that I could ask for is the fact that Mr. Proudhon ended up like all those in the wrong; he became angry.
I will thus take up the same procedure again and having once more called the reader's attention to the nature of capital, I will review Mr. Proudhon's arguments.
May I please be allowed to go back quite far, but only to … the Flood. 1930
When the waters receded, Deucalion 1931 threw stones behind him and they turned into men.
And these men were greatly to be pitied, for they had no capital. They had no arms, nets, or tools, nor could they manufacture any because, to do this, they would have needed to have a few provisions. Well, they were scarcely able to catch enough game each day to satisfy their daily hunger. They felt themselves trapped in a circle which was hard to escape from, and they understood that they would not be extricated from this either by all the gold in California or by all the notes that the People's Bank could print in a year, and they said to each other, "Capital is not all it is cracked up to be."
However, one of these unfortunate people, named Hellen, 1932 who had more energy than the rest, said to himself, "I will get up earlier and go to bed later. I will not retreat before any fatigue; I will endure hunger and will do enough to establish a stock of three days' provisions. I will (then) devote these three days to making a bow and arrows."
And he succeeded. By dint of work and saving, he established a stock of game. This was the first capital in the world since the flood. This is the starting point of all progress.
And several people came forward to borrow it. "Lend us these provisions," they said to Hellen, "We will give it all back to you absolutely intact in a year's time." But Hellen replied, "If I lend you my things, I would ask to share the benefits you acquire with them. But I have a plan, I have taken enough trouble to put myself in a position to accomplish it and I will accomplish it."
And in effect, he lived for three days on his accumulated labour , and during these three days, he made a bow and arrows.
One of his companions came forward again and said to him, "Lend me your weapons and I will return them to you in a year's time." To which Hellen replied, "My capital is precious, there are a thousand of us; one person alone can benefit from them. It is natural that it should be me, since I created them."
But with the help of his bow and arrows, Hellen was able to accumulate additional provisions and make more weapons much more easily than the first time.
For this reason, he lent both provisions and weapons to his companions, stipulating each time that he would be given a share of the surplus game that he was making it possible for them to catch.
And in spite of this sharing, the borrowers saw that their work was made easier. They too accumulated provisions; they too manufactured arrows, nets, and other tools, so that, as capital became increasingly abundant, it was lent on terms that were less and less burdensome. The first impetus had been given to the wheel of progress and it turned with ever increasing speed.
However, and although the ability to borrow constantly increased, late arrivals started to complain, saying, "Why is it that those with provisions, arrows, nets, axes, or saws demand that they receive a share for themselves when they lend us these things? Do we not also have the right to live and live well? Has society not the duty to give us all that we need to develop our physical, intellectual, and moral faculties? Obviously, we would be happier if we borrowed for nothing. It is therefore this vile capital that is the cause of our poverty."
And Hellen assembled them and told them, "Take a careful look at my conduct and the conduct of all those who, like me, have succeeded in creating resources for themselves. You will be persuaded that not only has it done you no wrong, but also that it is useful to you, even if we were so hard-hearted to wish it were not so. When we hunt or fish, we hunt a class of game you cannot attain, so that we have spared you any rivalry with us. It is true that when you come to borrow our tools we take a share in the product of your work, but first of all this is fair, since our work too must be rewarded. Next, this has to be so, for if you should decide that from now on weapons and nets will be lent for nothing, who would make weapons and nets? Finally, and this is what is of most interest to you, in spite of the payment agreed upon, the loan you take out is always beneficial to you, otherwise you would not take it out. It can improve your situation and will never make it worse, for bear in mind that the share you hand over is just a portion of the surplus you obtain as a result of our capital. Thus, after paying this share, you are left with more , thanks to the loan, than if you had not taken it out, and this surplus makes it easier for you to make provisions and tools for yourselves, that is to say capital. From which it follows that the conditions of the loan become more advantageous to borrowers with the passage of time, and that your sons will receive a better share than you in this respect.
These primitive men began to reflect on this speech and they found that it made sense.
Since then social relations have become much more complicated. Capital has taken on a thousand varied forms. Transactions have been facilitated by the introduction of money, written agreements, etc. etc., but through all these complications, there are two facts that have remained and will remain eternally true, and these are:
1. Each time that past labour and present labour are associated in the work of production, the product is shared between them in certain proportions.
2. The greater the abundance of capital, the smaller is its proportional share in the cost of the product. And as capital, in increasing, increases (our) ability to create more capital, it follows that the situation of the borrower is constantly improving.
I can hear someone saying to me, "What do your arguments matter to us? Who is querying the usefulness of capital?"
For this reason, what I am calling the reader's attention to is not the absolute and uncontested usefulness of capital, nor even its usefulness with regard to the person who owns it, but precisely the utility it has to those who do not own it . It is there that the value of economic science lies, and there that the harmony of interests is shown.
Although science is impassive, wise men have a human heart in their breasts; all their sympathy lies with those disadvantaged by fortune, for those of their brethren who bow beneath the triple yoke of unsatisfied physical, intellectual, and moral necessities. It is not from the point of view of the excessively rich that the science of wealth is of interest. What we want is a constant convergence of all men to a level that is forever rising. The question is to know whether this humanitarian evolution can be accomplished through freedom or through coercion. If therefore I do not see clearly how capital benefits even those who do not have it, how, under a regime of liberty, it increases, becomes universal, and constantly levels out, if I were unfortunate enough to see in capital only an advantage for capitalists, and thus appreciate just one aspect of it, certainly the narrowest side, the one that is the least consoling in economic science, I would become a Socialist. For one way or another inequality has to be erased gradually, and if freedom does not include this solution, like the Socialists I would demand it from the law, the State, coercion, science, and Utopia. However, I am happy to acknowledge that artificial arrangements are unnecessary in situations where freedom is enough, that the designs of God are superior to those of legislators, and that true science lies in understanding the Divine work, not in devising another in its stead. For it is truly God who has created the marvels of the social world as well as those of the physical one, and doubtless He has not smiled less on either one of these labors: Et vidit Deus quod esset bonum (And God saw that it was good). 1933 It is therefore not a question of changing natural laws, but understanding them in order to conform to them.
Capital is like light.
There was once a hospice containing both the blind and the sighted. The blind were probably the more unhappy, but their unhappiness did not come from the fact that the others were able to see. On the contrary, in daily life, the sighted provided services to the blind that the blind could never have provided for themselves, and habit prevented them from sufficiently appreciating the services they provided.
Well, hatred, jealousy, and hostility broke out between the two groups. The sighted said, "Let us refrain from tearing down the veil that covers the eyes of our brethren. If sight were to be restored to them, they would undertake the same work as us. They would compete with us and pay us less for our services, and what would become of us?"
For their part, the blind cried, "The greatest of all good things is equality, and if our brethren are to be like us in not being able to see, then they ought to lose their sight like us."
But a man who had studied the nature and effects of the events that had taken place in this hospice said to them:
"Emotion is leading you astray. You who can see, you are suffering from the blindness of your brethren, and the community would achieve a much higher level of material and moral satisfaction at much less cost if the gift of sight had been given to all. You who lack sight, thank Heaven that others can see. They can carry out and help you to carry out a host of things which benefit you, and of which you would be eternally deprived."
Nevertheless, the comparison is in error in one important aspect. Solidarity between the blind and the sighted is far from being as close as that linking the proletariat and capitalists, since while those who see provide services to those who do not, these services do not go so far as to restore their sight, and equality is forever impossible. But apart from the fact that it is currently useful to those who lack it, the capital of those who possess it helps provide the means to acquire it to those without.
It would therefore be fairer to compare capital to language. What madness it would be for infants to be envious of the faculty of speech in adults and to see in this a principle of irreversible inequality, since it is precisely because adults speak today that infants will speak tomorrow!
Remove speech from adults and you would have equality in degradation. Allow speech to be free and you will provide the opportunity for equality in intellectual progress.
In the same way, abolish capital (and you would certainly abolish capital if you abolished its reward) and you would have equality in poverty. Leave capital free and you will have the greatest possible number of opportunities for equality in well-being.
This was the idea that I endeavored to elicit from this polemic. Mr. Proudhon criticises me for it. If I have one regret it is that I never gave this idea enough space. I was prevented from doing this by the necessity of replying to the arguments of my opponent, who now criticises me for not having replied to any of them. Let us look at them.
The first objection put to me (by Mr. Chevé) consists in saying that I confuse ownership with use . The person who lends, he said, hands over only the use of an item of property and cannot receive in return permanent ownership of an item of property .
I replied that exchange is legitimate when it is freely and voluntarily entered into and is between two things having equal value , even when one of these things valued does not relate to a material object. Well, the use of a useful item of property has a value. If I lend a field that I have fenced, cleared, and drained for one year, I have the right to a payment which can be evaluated . Provided that the valuation is done, and even if I am paid in material objects such as wheat or cash, what business is it of yours? Do you really want to prohibit three-quarters of the transactions that men voluntarily enter into between themselves because these transactions suit them? You constantly talk to us of emancipating ourselves and yet do nothing other than present us with new restrictions.
At this point, Mr. Proudhon intervened, and abandoning Mr. Chevé's theory used antinomy against me. Interest is simultaneously legitimate and illegitimate, he said. This implies a contradiction, as is also the case with property and freedom or anything, since contradiction is the very essence of phenomena . I replied that, on this basis, neither he nor I nor any other man would ever be able to be right or wrong on this subject; that to adopt this starting point would be to prevent one from ever reaching a solution, since it would be to proclaim in advance that any proposition must be simultaneously true and false. A theory like this not only discredits any form of reasoning, it rejects the very faculty of reason. In a discussion what is the sign by which you can recognize when one of the two opponents is wrong? It is his being obliged to admit that his own arguments contradict one another. Well, it is exactly when Mr. Proudhon was reduced to this point that he triumphs. I contradict myself, therefore I am on the side of truth, since contradiction is the essence of phenomena. Certainly I might have refused the conflict if Mr. Proudhon had insisted on imposing logic like this on me as a weapon.
Nevertheless, I went further and was at pains to discover how Mr. Proudhon had succumbed to the theory of contradictions. I attribute it to his deriving the idea of absolute perfection from the fact of perfectibility. The incontrovertible fact is that absolute perfection is contradictory and incomprehensible to us, which is why we believe in God but cannot explain Him. We cannot conceive of anything that has no limit and any limit is an imperfection. Yes, interest is an indication of social imperfection. This is also true of labour. Our limbs, organs, eyes, ears, brains, and sinews also witness to our human imperfection. A perfect being is not imprisoned in devices like these.
But there is no line of reasoning more vicious than the one that says: Since interest is an indication of social imperfection, we should abolish interest and thus achieve social perfection. This would be precisely to abolish the remedy for the illness. We might just as well say that since our sinews, organs, and brains bear witness to our limits and consequently to our human imperfection, we should abolish all these things and man will become perfect.
This was what I answered and, to the best of my knowledge, Mr. Proudhon did not reply.
He did not reply, but instead invoked the theory of compensation .
We are not asking, he said, for loans to be made for nothing, but for lending to be made no longer necessary. The goal to which we aspire is not exactly the abolition of interest, but the proper compensation of the parties involved. We want to reach the situation where, in every exchange, the investment of capital and labor is everywhere the same.
Illusion and despotism was my reply. You will never reach a situation in which Mr. Bidault's skilled artisans 1934 can include past labour and present labour in his services in the same proportions as a manufacturer of stockings. Provided the values of the things exchanged are equal, what does the rest matter to you? Do you want proper payment? You have it under the regime of free exchange. Evaluation is the comparison of present labour with present labour, past labour with past labour, or even present labour with past labour. By what right do you wish to abolish this latter type of evaluation, and how will men be happier when they are less free?
This was what I answered and, to the best of my knowledge, Mr. Proudhon did not reply.
He did not reply but, inveighing vehemently against capitalists, he lashed out at them in the old, familiar, and terrible way: capitalists have no right to payment because they are not depriving themselves of anything . They are not depriving themselves of the thing they are handing over because they cannot use it personally .
I replied that this was a terribly misleading argument, and one which incriminates selling as much as lending. If man were not a sociable being, he would be obliged to produce directly all that he needed to satisfy his needs. But he is sociable, and he trades. From this arises the division of labour and the specialization of tasks. This is why each person does just one thing and makes a great deal more than he can consume personally. He trades this surplus for other things that he does not make and which are essential to him. He works for others and others work for him. Doubtless, the man who builds two houses and lives only in one does not deprive himself personally by renting the other. He would not deprive himself any more if he sold it, and if for this reason the rental is theft, this is also true of the sale price. When a hat maker who has one hundred hats in his shop sells one, he does not deprive himself personally, to the extent that he is not reduced to going bareheaded. The editor of Mr. Proudhon's books, who has a thousand copies of them in his warehouses, does not deprive himself personally as his sales progress, since one copy would be enough for his instruction; lawyers and doctors who give advice do not deprive themselves . So your objection attacks not only interest but also the very basis of transactions and of society itself. It is certainly deplorable, in the nineteenth century, to be reduced to refuting seriously such misleading and puerile arguments. This was what I answered and, to the best of my knowledge, Mr. Proudhon did not reply.
He did not reply, but he began to invoke what might be called the doctrine of metamorphosis:
Interest was legitimate in the past at a time when violence tainted all transactions. It is illegitimate now under a regime of law. How many institutions have there not been that were good, just, and useful to the human race and that are now grossly offensive? Examples include slavery, torture, polygamy, trial by combat, etc. Progress, the great law of humanity, is nothing other that this transformation of good into evil and evil into good .
I replied that this was fatalism as damaging in moral terms as antinomy is disastrous in logic. Can it seriously be contended that, depending on the vagaries of circumstance, what was respectable becomes odious and what was unjust becomes just? I reject this indifference to good and evil with all the strength at my disposal. Acts are good or bad, moral or immoral, legitimate or illegitimate intrinsically, because of the motives that determine them or the consequences they generate, and not because of considerations of time and place. I will never agree that slavery was legitimate and good in a bygone age on the grounds that it was "useful" for men to reduce other men to servitude. I will never agree that to subject an accused man to inexpressible torment was a legitimate and proper means of making him tell the truth. That humanity could not have avoided horrors like this, may perhaps be true. As humanity's essence lies in its perfectibility, evil is bound to be found at its inception, but it is no less evil for all that, and instead of supporting civilization it retards it.
Is payment which has been voluntarily made for past labour, is recompense which has been freely awarded for a sacrifice of time, in a word, is interest an atrocity like slavery or an absurdity like torture? It is not enough to claim this, it has to be proved. From the fact that in antiquity there were abuses that have ceased, it does not follow that all the customs of the time were abuses and have to cease.
This was what I answered Mr. Proudhon and he did not pursue the matter.
He did not pursue the matter, but he made a further historical excursus no less strange.
Interest, he said, arose from contracts on private cargo . When one man provided a Ship and Goods for a maritime journey, and another Talent and Labor, they shared the profit in agreed proportions.
There is nothing more natural and fair than this share, I replied. The only thing is that it is not necessarily limited to maritime activities. It includes all human transactions. You are making an exception here out of what is a universal rule, and by doing this you are undermining interest, because exceptions are always deemed to be illegitimate, whereas nothing is better proof of the legitimacy of a rule than its universality. The day that a primitive man lent his weapons on condition that he received a share of the game or the day a shepherd lent his flock on condition that he received a share of the increase in stock was the day on which interest was born, and doubtless it goes back to the origin of life in society, since interest is nothing other than the accommodation made between past labour and present labour, whether (or not) it be a matter of making use of the land, the sea, or the air. Since then, and when experience enabled this progress to be made, the share of capital, having been unpredictable, now became predictable, and, just as sharecropping has been transformed into farm rent, interest has been regularized without changing its nature.
This was what I answered, and Mr. Proudhon did not reply.
He did not reply, but departing from his habitual behavior, he launched into a emotional argument. He must really have run out of resources to resort to an argument like this.
So he put forward some extreme cases in which a man could not demand payment for a loan without causing horror. For example, how could a rich landowner living on the coast welcome a shipwrecked man and lend him some clothing, then extend his demands to the extreme limit?
I replied to Mr. Proudhon … or rather Mr. Proudhon replied to himself using another example, which shows that in certain extreme cases payment for sales, or even of labor, would be as abominable as the repayment of loans. This would be so in the case of a man who, for extending a hand to a fellow man about to drown in the waves, exacted the highest price that could be obtained in such circumstances.
So this argument by Mr. Proudhon attacks not only interest but also all forms of payment, a certain way of establishing the principle of universal freedom from charges .
What is more, it opens the door to all the emotional theories (which Mr. Proudhon combats which such force and such reason) which seek, through the use of extreme force, to base the affairs of the world on the principle of self-sacrifice.
Finally, like Proteus in the Fable, 1935 of whom it was said: "To overcome him you have to exhaust him," Mr. Proudhon, hunted from contradiction to compensation , from compensation to deprivation , from deprivation to transformation and from transformation to self-sacrifice , suddenly abandoned the controversy and came to execution .
The means of execution he proposed to achieve free credit is paper money . I did not call it this, he said. That is true. But what then is a National Bank that lends to anyone who wants it, free of charge, so-called capital in the form of bank notes?
Obviously, we have come back here to that disastrous and inveterate error that confuses the medium of exchange with the objects being exchanged, an error the source of which Mr. Proudhon let us see in his previous letters, when he said: It is not things that make up wealth, but circulation. He did it again when he calculated that interest in France was at 160 percent because he compared all rent paid in cash to capital.
I set Mr. Proudhon this conundrum: either your National Bank will lend notes to anyone who comes to it without distinction, and in this case circulation will be so inflated 1936 that the notes would depreciate, or the Bank would hand the notes out with discernment, in which case your aim would not be achieved.
It is clear, in fact, that if anyone could go to obtain imaginary money free of charge from the Bank, and if this money is accepted at its face value, issues would be unlimited and would rise to more than fifty billion in the very first year. The effect of this would be the same as if gold and silver became as common as mud. The illusion that consists in thinking that wealth is multiplied or even that real circulation becomes more active as the medium of exchange increases, ought not to enter the head of a political writer who, these days, aspires to discuss economic matters. We all know through our own experience that since cash, like bank notes, does not carry interest, everyone keeps as little of it as possible in his safe or wallet, and consequently the quantity requested by the general public is limited. It cannot be increased without being depreciated, and the only result of this increase is that, for each exchange, two écus or two notes are needed instead of one.
What is happening in the Bank of France is surely an unforgettable lesson. In the last two years, it has issued a large number of notes. 1937 However, the number of transactions has not increased. This number depends on other causes, and these causes have led to a decrease in business. What then has happened? As the Bank issued notes, a flood of specie was paid into its vaults, so that one medium of exchange was substituted for another. That is all.
I will go further. It is possible for transactions to increase without the medium of exchange increasing. It so happens that more business is carried out in England than in France, and nevertheless the total amount of paper and specie is less. Why? Because the English bankers, acting as intermediaries, effect many payments and transfers between parties.
In Mr. Proudhon's scheme of things, the objective of his bank is to reduce payments to transfers between parties. This is precisely what écus do in a way that is in truth rather costly. Bank notes constitute a mechanism that achieves the same result at less cost, and the English Clearing House 1938 is even cheaper. But whatever method is used to clear payments, what do these various procedures, that are more or less perfected, have in common with the principle of interest? Is there a single one that ordains that previous work ought not to be paid for and that time does not have a price?
Swamping circulation with banknotes is thus not the way either to increase wealth or to abolish rent. What is more, handing out notes to all comers is to bankrupt the bank within six months.
So now Mr. Proudhon flies from the first thing which I, in my puzzlement, am worried about, to take refuge in the second.
"Let the Bank do its job with prudence and strictness," he said, "just as it has done up to now. That is not my business."
That is not your business! Can you be serious? HERE You have dreamt up a new bank that is to award free credit to everyone and then when I ask you if it will lend to everybody, in order to escape the conclusion with which I am threatening you, you reply: "It is none of my business!"
However, while saying that that is none of your business, you add, "that the new bank will carry out its job with prudence and strictness." This means nothing or it means that it will lend to those who can give their word on its repayment.
But in this case, what will happen to the Equality that is your idol? Do you not see that instead of making men equal before credit, you are constituting a state of inequality that is more shocking than the one you are claiming to destroy?
In effect, in your system, the wealthy will borrow free of charge and the poor will not be able to borrow at any price.
When a wealthy man comes to the bank, he will be told, "You are solvent, here is capital which we will lend you free of charge."
However, let a working man come forward. He will be told, "Where are your guarantees, your land, your houses, or your goods?" "I have only my hands and my integrity." "That does not reassure us; we have to act with prudence and strictness , and so we cannot lend you money free of charge." "Well then! Lend it to me and my companions at rates of 4, 5, and 6 percent. This will be an insurance premium whose risk will be covered by the product." "How can you imagine this? Our rule is to lend free of charge or not to lend at all. We are too good as philanthropists to make anyone at all pay anything, whether they be poor or rich. This is why the wealthy obtain free credit from us and why you will not obtain it, whether you pay something or nothing."
In order to make us understand the marvels of his invention, Mr. Proudhon subjects it to a decisive proof, that of commercial accounting .
He compares the two systems.
In one, workers borrow free of charge (we have just seen how), then by virtue of the axiom, all production yields a surplus , they make a profit of 10 percent.
In the other, workers borrow at 10 percent. The economic axiom does not reappear, and a loss results.
Applying accounting to these hypotheses, Mr. Proudhon proves to us using figures that workers are much more fortunate in one case than in the other.
I did not need double entry book-keeping to be convinced of this.
However, I point out to Mr. Proudhon that his accounts decide the question through begging the question. I have never cast doubt on the fact that it would be very pleasant to have the use of well-furnished houses, well-prepared land, and powerful tools and machines without paying anything. It would be even more pleasant for larks to fall ready-roasted into our mouths, and whenever Mr. Proudhon likes I will prove this to him using debits and credits . The more precise question is: are all these miracles possible?
I therefore took the liberty of pointing out to Mr. Proudhon that I disputed, not the accuracy of his accounting, but the reality of the data on which it is based.
His reply was curious:
"This is the essence of accounting, that it does not depend on the accuracy of the data. It does not suffer from inaccurate data. It is intrinsically, and in spite of the wishes of the accountant, a demonstration of the truth or falsehood of its own data. It is by virtue of this property that traders' books have legal standing." 1939
I beg Mr. Proudhon's pardon, but I am obliged to tell him that justice is not limited, like the Cour des comptes, 1940 to examining whether the books are kept correctly and whether the accounts balance. It also seeks to find whether inaccurate data has not been included.
But truly, Mr. Proudhon has an unparalleled imagination for inventing convenient means of becoming rich, and in his place I would quickly abandon free credit as being an outdated system, and complicated, and disputable to boot. It has been left far behind by accounting, which is of itself a demonstration of the truth of its own data.
All you need is to have two sous in your pocket. Buy a sheet of paper. Write a pretend account on it, the most extravagant that you can dream up. Just suppose, for example, that you have bought a ship cheaply and on credit and that you have loaded it with sand and pebbles gathered on the beach and that you are shipping the lot to England. Then that you have been given an equal weight of gold, silver, lace, precious stones, cochineal, vanilla, perfumes, etc. in exchange, and that on your return to France buyers are fighting over your opulent cargo. Put figures on all this. Do your accounting in double entry. Take care that it is accurate and here you are, in a position to tell Croesus what Mr. Rothschild said of Aguado, 1941 "He left thirty million; I thought he was better off." For if it conforms to Mr. Juvigny's laws, 1942 your accounting will entail the truth of your data .
No means more convenient than that for becoming wealthy has ever come to mind apart from the one produced by the son of Eolus. 1943 I recommend it to Mr. Proudhon.
He took it into his head to go to all the crossroads, where he shouted ceaselessly in a raucous voice, 'People of Baetica 1944 , do you want to become rich? Imagine that I am very rich and that you too are very rich. Convince yourselves every morning that your fortune has doubled during the night. Then get up, and if you have creditors go and pay them with what you have imagined, and tell them to use their imagination in their turn. 1945
However, I leave Mr. Proudhon at this point, and in bringing this polemic to a close I turn to the Socialists and implore them to examine the following questions with impartiality, not from the point of view of the capitalists but in the interest of the workers:
Should the legitimate remuneration of a person be identical whether he devotes his present day's work to production or whether in addition he devotes tools that are the fruit of past work to it?
Nobody would dare to support such a suggestion. Two elements of remuneration are involved, and who would complain of this? Would the buyer of the product complain? But who does not prefer to pay 3 francs a day to a carpenter equipped with a saw than 2 francs 50 to the same carpenter who makes planks with his bare hands?
Here the two elements of work and remuneration are in the same hands. But if they are separate and work together, is it not fair, useful, and inevitable for the value of the output to be shared between the two according to agreed proportions?
When it is the capitalist who establishes the business at his own risk, payment of the labor employed adjusts to the situation and is known as wages. When the worker takes on a project and runs a risk, the remuneration of capital adjusts itself and is known as interest .
One might believe in arrangements somewhat nearer perfection, in a closer association between risk and recompense. In former times, this was the avenue that Socialism explored. The rigidity of one of the two elements seemed to it to be a backward step. I could demonstrate that it is progress but non est hic locus (this is not the place).
There is one school, which goes by the name of "complete socialism," which goes much further. It claims that all recompense must be denied to one of the elements of production, namely capital. And this school has inscribed Free Credit on its banner in place of its former motto, Property is theft !
Socialists, I call upon your good faith, is this not the same thing expressed in different words?
It is not possible in principle to dispute the justice and usefulness of a share being made between capital and labor.
It remains to be seen what law governs this sharing.
And you will quickly find it in the following formula: the more that one of these elements is preponderant over the other, the smaller is its proportional share, and vice versa.
And if this is so, the propaganda of free credit is a calamity for the working class.
For, in the same way as capitalists would harm themselves if, after having proclaimed the illegitimacy of wages, they reduced workers to either dying or leaving the country, workers would be committing suicide if, after having proclaimed the illegitimacy of interest, they forced capital to disappear.
If this disastrous doctrine were to spread, if the voice of universal suffrage leads to the supposition that it will not hesitate to invoke the help of the law, that is to say, the help of organized force, is it not clear that terrified capital, threatened with the loss of its right to any compensation, would be forced to flee, hide, or disappear? There would be fewer businesses of all sorts, while the number of workers would remain the same. The result can be expressed briefly as an increase in interest and a decrease in wages .
There are pessimists who state that this is what Socialists want: for the workers to suffer, for it to be impossible for order to be restored, and for the country to be perpetually on the brink of an abyss. If there are people perverse enough to want this, let society stigmatize them and God judge them!
As for me, it is not for me to give an opinion on intentions in which, incidentally, I cannot believe.
However, I say: free credit is a scientific absurdity, involving antagonism to established interests, class hatred, and barbarity.
Freedom of credit is social harmony, it is right, it is respect for human independence and dignity, and it is faith in the progress and destiny of society.
FREDERIC BASTIAT.
1613 See below, pp. 000.
1614 See the glossary entry on "Bastiat's Anti-Socialist Pamphlets."
1615 Intérêt et principale. Discussion entre M. Proudhon et M. Bastiat sur l'intérêt des capitaux (Extraits de la Voix du Peuple) (Paris: Garnier frères, 1850).
1616 Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Paris: Guillaumin, 1850).
1617 For example, See, Le Représentant du Peuple (Feb. - Aug. 1848); Le Peuple (Sept. 1848 - June 1849); La Voix du Peuple (Sept. 1849 - May 1850); Le Peuple de 1850 (June - Oct. 1850).
1618 See, "Vive l'Empereur" in Œuvres complètes de P.-J. Proudhon, Tome XIX. Mélanges: articles de journaux, 1848-1852, Volume 3. Articles de la Voix du Peuple. Articles du Peuple de 1850. Intérêt et Principal. Articles (Extraits de la Voix du Peuple) (Paris: Librairie Internationale, 1870), pp. 103-8. See also, Œuvres complètes de P.-J. Proudhon, Tome XVII. Mélanges: articles de journaux, 1848-1852, Volume 1. Articles du Répresentant du peuple. - Articles du Peuple. (Paris: Librairie Internationale, 1868).
1619 See, Proudhon, "De la concurrence entre les chemins de fer et les voies navigables", JDE, T.XI, mai 1845, p.157-202; Système des contradictions économiques ou Philosophie de la misère . 2 vols. (Paris: Guillaumin, 1846).
1620 Molinari, [CR] "Système des contradictions économiques, ou Philosophie de la misère, par J.-P. Proudhon," JDE, T. 18, N° 72, Novembre 1847, pp. 383-98.
1621 See the glossary entry on "The 45 Centime Tax."
1622 See, L'Organisation du crédit et de la circulation (31 mars 1848), Résumé de la question sociale. Banque d'échange (1848), Banque du peuple: déclaration (1849), which are reprinted in Oeuvres complètes de P.-J. Proudhon, Tome VI. Solution de problème social. Organisation du crédit et de la circulation. Résumé de la question sociale. Banque d'échange. Banque du peuple. Suivi du rapport de la Commission des délégués du Luxembourg (Paris: A. Lacroix, 1868).
1623 Proudhon summarised his views in an article "Réforme de l'impôt", La Voix du peuple , 28 Jan. 1850 republished in Melanges vol. 3, pp. 86-96. His proposal and the debate in the Chamber can be found in Oeuvres complètes de P.-J. Proudhon, Tome VII. La révolution sociale démontrée par le coup d'état du 2 décembre. Le droit au travail et le droit de propriété. Proposition relative a l'impôt et du crédit. Discours prononcé a l'Assemblée nationale (Paris: A. Lacroix, 1868). See, "Proposition relative à l'impôt sur le revenu, présentée le 11 juillet 1848 par le Citoyen Proudhon, envoyée au Comité des finances," pp. 241-44; "Rapport fait au nom du Comité des finances sur la proposition du Citoyen Proudhon relative à la Réorganisation de l'impôt et du credit. Par le Citoyen Thiers (Séance du 26 juillet 1848)," pp. 245-61; and "Discours prononcé à l'Assemblée Nationale le 31 juillet 1848," pp. 263-313.
1624 See his speeches on abolishing or drastically cutting the taxes on salt, alcohol, and sending letters, below, pp. 000.
1625 See "The Single Tax in England" (June 1847), above, pp. 000
1626 In CW2, pp. 60-81. Quote on p. 71.
1627 See above, pp. 000.
1628 See the glossary entry on "Free Banking."
1629 See the glossary entry on "Coquelin."
1630 Bastiat uses the interesting phrases "des boutiques d'argent" (shops where money is sold) and "des bureaux de prêt et d'emprunt" (offices where one can get loans and borrow money).
1631 Coquelin developed his theory "la liberté des banques" (free banking) in the mid 1840s in a series of articles and later a book in which he argued that private banks in a completely free market would compete to provide banking services even in such things as the issuing of money, which would no longer be a government monopoly. Coquelin wrote a series of articles on free banking for La Revue des Deux-Mondes and these ideas were further developed in his major book on the subject, Du Crédit et des Banques (Paris: Guillaumin, 1848). Coquelin provides a history of banking and a defense of his ideas in the article "Banque" in DEP , vol. 1, pp. 107-45. See also, J.-E. Horn, La liberté des banques (Paris: Guillaumin, 1866).
1632 Below, pp. 000.
1633 See, below, pp. 000.
1634 Bastiat uses the word "saturée" (saturated) to describe the inflated supply of money which the Banks would put into circulation. He liked to use water as a metaphor in his writings, as in the "ricochet effect," communication flows through "canaux secrets" (hidden channels), or elsewhere in these letters "gorger" (to swamp) or "affluer" (flood) about the issuing of money. Since it is more common today to use the metaphor of "air" (as in "inflated) we have chosen to use the "air" metaphor in this instance.
1635 See, below, pp. 000.
1636 Hayek, "Introduction" to Frédéric Bastiat, Selected Essays on Political Economy, trans. Seymour Cain, ed. George B. de Huszar, introduction by F.A. Hayek (Irvington-on-Hudson: Foundation for Economic Education, 1995), p. xi.
1637 ES1 11 "Nominal Prices" (Oct. 1845), CW3, pp. 61-64 and "The Export of Bullion" (LE, Dec. 1847), below, pp. 000.
1638 See the Editor's Introduction above, pp. 000.
1639 "Plunder and Law" (May 1850), CW2, pp.266-76; The Law (June, 1850), CW2, pp. 107-46; and What is Seen and What is Not Seen (July 1850), CW3, pp. 401-52.
1640 Roderick Long, "Translators' Introductions" to The Bastiat-Proudhon Debate on Interest (1849-1850) at The Molinari Institute
1641 In a footnote Paillottet noted that: A few months after the closure of this discussion, Mr. Proudhon, in the name of an industrial company, asked the government for a guarantee of 5 percent of interest for a particular transport business operating between Châlons and Avignon. Shocked by a request like this from the apostle of free credit and anarchy , Bastiat expressed his feelings in a letter that remained unpublished, whose final lines we quote: "Mr. Proudhon, deploring the weakness of my intellectual faculties, said: 'For my part, I would a thousand times rather be condemned for my frankness than be seen as clearly lacking what is man's finest quality, the one that defines his vitality and true being.' Let Mr. Proudhon know this: I accept this arrangement. I will take the humble level of intellect it has pleased God to give me; let him, since he prefers it, have a dubious frankness." In OC5, p. 296. See below, pp. 000.
1642 In Capital and Rent , above, pp. 000.
1643 See "Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv- lxvii.
1644 See Rothbard's opening two chapters to Man, Economy, and State , "Fundamentals of Human Action" and "Direct Exchange," where he makes considerable use of Robinson Crusoe to explain the foundations of human action and economic exchange and where he acknowledges the originality of Bastiat's use of this thought experiment in the footnotes. Rothbard, Man, Economy and State: A Treatise on Economic Principles, with Power and Market: Government and the Economy. Second Edition. Scholar's Edition (Auburn, Alabama: Ludwig von Mises Institute, 2009).
1645 CW3, pp. 000.
1646 See, for example his speech in the Assembly "Speech on the Tax on Wines and Spirits" (12 Dec. 1849), CW2, pp. 328-47; and the Editor's Introduction to "On the Allocation of the Land Tax in the Department of Les Landes" (July 1844), above, pp. 000 for his other writings on tax matters.
1647 See "Bastiat's Theory of Class: The Plunderers vs. the Plundered," in "Further Aspects of Bastiat's Life and Thought," in CW3, pp. 473-85.
1648 See the glossary entry on "Disturbing and Restorative Factors."
1649 Bastiat uses the term "une classe de fonctionnaires" (a class of government bureaucrats) in EH2 XVII. "Private Services and Public Services," FEE ed. pp. 448; and "un parasite légal" (legal or state-supported parasites) in WSWNS, III Taxes, in CW3, p. 411.
1650 See below, pp. 000.
1651 See EH, FEE edition, pp. 320, 322-23.
1652 See below, pp. 000.
1653 "Economic Harmonies IV," above, pp. 000. See also the Editor's Introduction to Capital and Rent , above, pp. 000.
1654 "Economic Harmonies IV," above, pp. 000.
1655 "Economic Harmonies II," above, pp. 000.
1656 In his review of Bastiat's pamphlet Capital and Rent (Feb. 1849) Molinari talks in more detail about "transport du travail dans le temps" (the transport of labour through time), p. 233, or "cet échange de travail passée contre du travail futur" (this exchange of past labor for future labour), p. 234). See, Gustave de Molinari, "Lettre sur le prêt à intérêt," JDE T.23, no. 90, 15 juin 1849, pp. 231-41; and Say, Traité d'économie politique (Guillaumin, 1841), chap. IX "Des différentes manière d'exercer l'industrie commerciale et comment elles concourent à la production," p. 104.
1657 See, OC5, pp. 314-15.
1658 Nothing is known about F.C. Chevé other than the fact that he was an editor of Proudhon's magazine La Voix du peuple (The Voice of the People) who edited the magazine while Proudhon was in prison. After his first letter to Bastiat Chevé was pushed aside and Proudhon took over the debate with Bastiat.
1659 See Capital and Rent (February 1849) above, pp. 000.
1660 On Bastiat borrowing the phrase "the mutuality of services" from Proudhon, see the glossary entry on Service for Service."
1661 Since 1 sous was worth 5 centimes, 100 sous was the same as 500 centimes.
1662 Chevé quotes repeatedly from Bastiat's pamphlet Capital and Rent throughout this essay. His quotations from Bastiat's pamphlet are in double quotation marks. We will not footnote the location of every instance of this for reasons of space. The conversation between the characters in Chevé's story are in single quote marks.
1663 Here Chevé rewrites a similar conversation between Jacques and Guillaume Bastiat used in Capital and Rent , above, pp. 000.
1664 At a compound interest rate of 5% per annum an investor will double their money in 14 years.
1665 Sir Isaac Newton (1642-1726) was an English physicist and mathematician who made important contributions to gravitation, classical mechanics, optics, and calculus.; François Fénelon (1651-1715) was the Archbishop of Cambrai and tutor to the young duke of Burgundy, the grandson of Louis XIV. He wrote Les Aventures de Télémaque (1699) which was a thinly veiled satire of the reign of Louis XIV and a critique of the notion of the divine right of kings.; Blaise Pascal (1623-62) was a French mathematician and philosopher whose best-known work, Pensées (Thoughts), appeared posthumously.
1666 During the medieval period the obole was a copper coin officially worth 1/2 denier. As monetary devaluation continued to decrease its value the word "obole" came to mean a coin of very little or minimal value.
1667 Chevé is chiding the author of the Economic Sophisms (1846, 1848) for not seeing the sophisms he is using to defend interest on capital.
1668 Chevé does not understand three things: opportunity costs (that capital has different uses and hence different rates of return); time preference (that one might prefer the use of a good now rather than in one year's time); and that the lender has to exercise some entrepreneurial judgement about what is a good investment (risk of losses).
1669 Chevé gets Bastiat's argument completely wrong with this misquotation. Bastiat said "Dire que l'intérêt s'anéantira, c'est dire qu'il n'y aura plus aucun motif d'épargner, de se priver, de former de nouveaux capitaux, ni même de conserver les anciens" (To say that interest will be eliminated is to say that there will no longer be any incentive to save, to deprive yourself, or to build up new capital, nor even to maintain the capital that already exists.), whereas Chevé quotes him as saying "Dire que l'intérêt s'anéantira, c'est donc dire qu'il n'y aura plus un motif de plus d'épargner, de se priver, de former de nouveaux capitaux, et de conserver les anciens" (To say that interest will be eliminated is therefore to say that there will be one more incentive to save, to deprive yourself, and to build up new capital while maintaining the capital that already exists). Chevé's changes in bold. Thanks to Roderick Long for pointing this out.
1670 The economists and the socialists had very different opinions about how societies should be "organised" and what constituted "natural" and "artificial" types of organisation. For socialists like Louis Blanc, "organisation" meant socially or state-supported workshops which would get rid of wage labour and allow workers to share the proceeds from their labour. For the economists, this was rejected as an "artificial" form of organisation based upon coercion. They preferred voluntary, free market organisations which arose "naturally" from economic activity, such as firms and factories, as well as artisan owned and operated workshops. See the Editor's Introduction to "Natural and Artificial Organisation" (Jan. 1848), above, pp. 000.
1671 Proudhon had tried to set up an "Exchange Bank" between March and June 1848, and when this failed, to set up a "People's Bank" in January 1849 to replace the Bank of Paris which would use the assets of the French nation to provide very low or zero interest loans to workers to sent up their businesses and workshops. This also failed.
1672 The quotation comes from pp. 9-11 of the original pamphlet Capital et Rente (1849) and can also be found above, pp. 000. Chevé is quoting back at Bastiat Bastiat's paraphrasing of the socialist critique of interest on capital at the beginning of his pamphlet which he then proceeds to refute.
1673 Some of the economists, like the socialists, also talked about a cancer within society, or society being consumed by leprosy. The socialists believed that the cancer eating away at society was the capitalist system which lived off profit, interest, and rent. Some of the more radical economists, like Molinari, also adopted this vocabulary of "cancer," "leprosy," or "ulcer" but for them, the source of the cancer was the state and the vested interests which it supported, which took wealth from consumers and taxpayers in the form of tariffs, subsidies to manufacturers, taxes, and regulations. See for example, Molinari on "cet ulcère qui dévore les forces vives des sociétés" (this ulcer which eats away the living forces of societies) in Cours d'économie politique (2nd ed. 1863), vol. 2, p. 531.
1674 From La Voix du Peuple , 12 November 1849, translated by Benjamin R. Tucker, in The Irish World and American Industrial Liberator , 12 July 1879.
1675 Bastiat uses the phrase "les classes aisées" (the well-to-do classes) in contrast with "les classes ouvrières" (the working or labouring classes).
1676 See the glossary entry on "Bastiat's Theory of Plunder."
1677 A good example of Bastiat's feeling towards democracy and republicanism can be found in "A Few Words about the Title of our Journal" (Feb. 1848), above, pp. 000.
1678 One of the mottos of Bastiat's revolutionary magazine La République française which appeared in February and March 1848 was "Justice. Économie. Ordre" (Justice. Economy. Order). In his second revolutionary magazine Jacques Bonhomme which appeared in June 1848 one of the mottoes was a quote from the poet Béranger "Peuples, former une Sainte-Alliance, et donnez-vous la main" (People of the World, form a Holy Alliance and take each other by the hands). This phrase "order, justice, and union" is thus an amalgamation of his views he too was attempting to spread during the Revolution.
1679 In fact Bastiat borrowed Proudhon's term "mutuality of service" and adopted it while he was forming his own ideas about exchange as "the mutual exchange of services," or "service for service." See the glossary entry on "Service for Service."
1680 These were the examples Bastiat used in his pamphlet Capital and Rente .
1681 Bastiat sometimes fluctuates between "equivalent" and "equal" services which confuses things as they are not identical.
1682 The écu was a pre-revolutionary silver coin. In the 19th century people still referred to the five franc silver coin as an "écu".
1683 Bastiat keeps stressing the importance of time as a factor in exchanges or potential exchanges which neither Chevé nor Proudhon seem to understand. That a service provided at one moment in time (say earlier) is not the same as another servies provided at another moment in time (say later).
1684 Occasionally both Proudhon and Bastiat use "social economy" instead of the more usual term "political economy." The sense they are trying to give is that "social economy" applies to the impact of economics on society as a whole, not just the buying and selling of goods and services which takes place in markets. They have in mind such things as the family, the size of population, the nature of exploitation by ruling elites, war and peace, and so on. At one stage Bastiat's working title for his magnum opus was "Social Harmonies" not just "Economic Harmonies" which is what was eventually published in 1850.
1685 Bastiat wrote several pieces on the subject of "capital" such as the pamphlet Capital and Rent in February 1849 (see above), the essay "Capital" in mid-1849 (see above), and the Chapter 7 "Capital" in Economic Harmonies (1850).
1686 This is another example of Bastiat's use of abstract "thought experiments" to elucidate his theory of how human beings make economic decisions by using "anecdotes" or stories. In other some of the economic sophisms he used the story of Robinson Crusoe ship wrecked on the Island of Despair in a very innovative fashion. Here we have a simple story about the making of a pair of stockings. See "Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv-lxvii.
1687 Horace Say provided data on the average daily wages of 13 groups of workers in the Paris area, including unskilled labourers who earned 2.50 to 3 fr per day; stone masons 5 fr.; tailors 4 fr.; textile factory workers 4.30 fr.; metal workers 4.25 fr.; and printers 3.50 fr. Horace Say, "Du taux des salaires à Paris," JDE, 2nd. série, T. VII, no. 7, 15 Juillet 1855, pp. 17-27.
1688 Bastiat uses English word "squatter."
1689 In Capital and Rent , it involves a discussion between Jacques and Guillaume. See above, pp. 000.
1690 Bastiat used the story of plank making several times in his work. One notable example can be found in ES2 14 "Something Else" (March 21, 1847), CW3, pp. 226-34, which is also important for being an early instance where Bastiat uses Robinson Crusoe in an economic thought experiment to make his points. In this economic sophism Bastiat discusses how Crusoe might go about making a plank of wood without a saw. After two weeks of intense labor chipping away at a log with an axe Crusoe finally has his plank (and a blunt axe). He then sees that the tide has washed ashore a proper saw-cut plank and wonders what he should do next (the new plank is an obvious reference to a cheaper overseas import which the protectionists believed would harm the national French economy). Bastiat puts some protectionist notions in Crusoe's head and Crusoe now concludes that he can make more labor for himself (and therefore be better off according to the protectionists' theory) if he pushed the plank back out to sea. The Free Trader exposes this economic sophism by saying that there is something that is "not seen" by the Protectionist at first glance, namely "Did he not see that he could devote the time he could have saved to making something else?" CW3, pp. 000.
1691 Following the upheavals of June 1848, a law required the "transportation" to Algeria of 4,000 insurgents.
1692 Émile de Girardin (1806-1881) was the most successful press baron in mid-19th century France with the mass circulation journal La Presse . In the 1848 Revolution he played a significant role in advising Louis Philippe to abdicate in February and then opposing General Cavaignac's repressive actions during the June Days riots. For the latter Girardin was imprisoned and his journal shut down. He wrote extensively on tax matters advocating a broader based system of tax, including a tax on capital. His debate with Proudhon can be found in Questions de mon temps: 1836 à 1856. Questions financières, Volume 11 (Paris: Serriere, 1858), VI. "L'Impôt sur le revenue et l'impôt sur le capital," pp.284-86; and "De l'impôt sur le capital (opinion de P.-J. Proudhon", pp. 417-49. See also, Les 52. XIII. Le Socialisme et l'impôt (Paris: Michel Lévy frères, 1849); and L'impôt (Paris: Librairie Nouvelle, 1853).
1693 The Orléans family was the younger branch of the Bourbons, to which Louis-Philippe belonged, since he was Duke of Orléans before becoming king of France in 1830.
1694 The "Party of Order" or the "Comité de la rue de Poitiers" was a group of conservative politicians who came together in May 1848 on the rue de Poitiers following an unsuccessful demonstration of radicals at the National Assembly. The group (between 200 and 400) met weekly and were made up of a broad coalition of conservative, legitimist, Bonapartist, and liberal groups. See the glossary entry on "The Party of Order."
1695 The free market economist Jérôme-Adolphe Blanqui (1798-1854) who should not be confused with his younger brother, the communist revolutionary Auguste Blanqui (1805-1881).
1696 Rentier has several meanings, one of which was "landowner" who rented out some of his land to small farmers (see previous articles), which Bastiat was, as well as other derogatory meanings, such as capitalist or some one lived off their loans to the government.
1697 Bastiat was in fact well acquainted with the writings of the socialists, such as Victor Considerant, Louis Blanc, and of course Proudhon, and had been writing against their ideas for several years. His campaign against the socialists reached a high point in mid-1848 when he began, with the assistance of the Guillaumin publishing form, publishing a series of 12 anti-socialist pamphlets over the following two years. See the glossary entry on "Bastiat's Anti-Socialist Pamphlets."
1698 Epimenides of Knossos (Crete) was a 7th or 6th century BC Greek philosopher and poet who fell asleep in a cave while tending his father's sheep. He awoke 57 years later with the power of prophecy.
1699 Bastiat was not a full member of the Academy. He was made a "corresponding member" with fewer rights than full members on 24 Jan. 1846, in recognition of his two published works on Cobden and the League (1845) and Economic Sophisms (1846). He was very proud of this appointment and always listed it as one his titles on the front page of his books.See the glossary entry on "The Academy of Moral and Political Sciences."
1700 Molinari wrote the entry on usury in the DEP , giving the economists' perspective, which he describes as "a more or less imaginary offense," "Usure," DEP , vol. 2, pp. 790-95.
1701 "Whatsoever is added to the principal is Usury" from St. Ambrose, Commentary on Tobias (c. 370). Corpus scriptorum ecclesiasticorum Latinorum , vol. XXXII S. Ambrosii opera (Vienna: Hoelder-Pichler-Tempsky, 1897). "De Tobia," p. 546 #49.
1702 Proudhon introduces a new term into the debate here, "la prestation" (as in "Les prestations que se font réciproquement les producteurs") which means benefits, funds, performance, or even services. In this context he uses it to refer to the "benefits" gained from lending out capital to another person, which is how we translate it for the rest of this chapter. He also uses it in a more general sense in the phrase "mutuality of benefits" in addition to the expression the "mutuality of services" which Bastiat had also adopted. Elsewhere we translated "prestation" as "tax" as it is sometimes used in this context as well. This of course only clouds the debate as Bastiat and Proudhon continue to argue at cross purposes. We will continue to translate "les prestations" (benefits) and "les services" (services) differently in order to show this difference between the two theorists.
1703 Proudhon ignores the fact that different activities might yield different amounts of profit and be assessed differently for risk, or that there might be different degrees of scarcity for different goods and services which would affect the rate of return.
1704 This Keynesian-like theory of the "circulation" or "velocity" on money is addressed by Bastiat later. See, pp. 000.
1705 The Bank of France was modeled on the Bank of England and was founded as a private bank in 1800 with Napoleon as one of the shareholders. It was granted a monopoly in issuing currency in 1803. Payment in specie upon demand was suspended twice in the 19th century, both times during revolutions - 1848-1850 and 1870-1875.
1706 interest rates regulated by state - info from GdM chap.??? 5% and 6%
1707 Bastiat also believed in a single tax but on income not capital. This would be low and would be used to eliminate all indirect taxes levied on food and other essentials. See the Editor's Introduction to "The Single Tax in England," above, pp. 000.
1708 The problem of antinomy (or paradox) was explored in some detail by Immanuel Kant (1724–1804). In his Critique of Judgement he stated that "The solution of an antinomy only depends on the possibility of showing that two apparently contradictory propositions do not contradict one another in fact, but that they may be consistent; although the explanation of the possibility of their concept may transcend our cognitive faculties." He identified 4 key antinomies in Metaphysical Foundations of Natural Science , which concerned the boundary of the universe in space and time, the composition of the world in simple and complex parts, the problem of nature and free will, and the relationship between necessary and contingent beings. See, Immanuel Kant, Kant's Critique of Judgement, translated with Introduction and Notes by J.H. Bernard (2nd ed. revised) (London: Macmillan, 1914). and Kant's Prolegomena and Metaphysical Foundations of Natural Science, trans. with a Biography and Introduction by Ernest Belfort Bax (2nd revised edition) (London: George Bell and Sons, 1891). Also, Cantini, Andrea, "Paradoxes and Contemporary Logic", The Stanford Encyclopedia of Philosophy (Spring 2014 Edition), Edward N. Zalta (ed.)
1709 The economists waged a long intellectual campaign against socialism throughout the 1840s and Bastiat played a leading role in this once he settled in Paris after 1845. The socialist case, or rather cases since there were several schools of socialist thought including Proudhon's, was put forward in a number of influential works, including Louis Blanc, Organisation du travail (1839); Proudhon, Qu'est-ce que la propriété? (1840), and Victor Considerant, Droit de propriété et du droit au travail (1848). This was countered by a series of works by the economists, such as Charles Dunoyer, La Liberté du travail (1845), Léon Faucher, Du droit au travail (1848), Michel Chevalier, Lettres sur l'Organisation du travail (1848), and the important anti-socialist pamphlets written by Bastiat between June 1848 and July 1850.
1710 See the glossary entry on "Saint-Simon."
1711 See the glossary entry on "Fourier."
1712 The Luxembourg Palace housed the Chamber of Peers from 1814 to the February 1848 Revolution, during which the socialist Louis Blanc and his supporters took over the building and made it the headquarters of the "Government Commission for the Workers" (known as the Luxembourg Commission). It was from here that Blanc ran the National Workshops program. See the glossary entries on "Blanc," "The National Workshops," and "The Luxembourg Palace."
1713 Among Proudhon's many criticisms of socialism see in particular the articles collected from his small journals published during the Revolution: Pierre-Joseph Proudhon, Mélanges: Articles de journaux, 1848-1852. 3 vols. (Paris: Librairie internationale, 1868-71), especially the articles criticising Louis Blanc and Pierre Leroux in vol. 3 and his essay "Le Socialisme jugé par M. Proudhon," vol. 2, pp. 172-80, in which Proudhon claims he is not a communist but an-anti-statist "mutualist."
1714 Proudhon developed his Hegelian theory of the evolution of society as well as his theory of the history of ideas in a book which was strangely enough published by the Guillaumin firm which normally published all the economists' writings: Système des contradictions économiques, ou Philosophie de la misère , 2 Volumes (Paris: Guillaumin, 1846). This was reviewed critically by Molinari, review of "Système des contradictions économiques, ou Philosophie de la misère, par J.-P. Proudhon," JDE, T. 18, N° 72, Novembre 1847, pp. 383-98.
1715 In Greek legend, Damocles was a courtier in the court of King Dionysius who announced that the King was not only powerful but also surrounded by great luxury. The King insisted that Damocles experience such power for himself on condition that he sit on the throne with a large hanging over his head suspended by a single horse hair. Damocles became scared for his life after sitting on the throne for a short period and asked to be returned to his normal duties. Cicero used the story of "the sword of Damocles" to argue that one cannot be truly happy when one is constantly afraid. Others like Shakespeare in Henry IV Part 2 have used the story to warn of the dangers inherent in kingly rule given the existence of rivals for the power of the throne ("Uneasy lies the head that wears a crown").
1716 Pyrrho (c. 360 BC – c. 270 BC) was a Greek philosopher who accompanied Alexander on his expedition to India where he became interested in Indian philosophy. Although he left no writings, he founded the school of Greek skepticism.
1717 The standard interpretation of early Greek and Roman economic thought among the economists was provided by Adolphe-Jérôme Blanqui, and Molinari discussed the history of criticisms of usury (including Proudhon's) in his article for the JDE: see, Adolphe-Jérôme Blanqui, Histoire de l'économie politique en Europe: depuis les Anciens jusqu'à nos jours; suivie d'une Bibliographie raisonnée des principaux ouvrages d'économie politique , 2 vols. (Paris: Guillaumin, 1845). 3rd ed. (1st ed. 1837.); and Molinari, "Usure," DEP, vol. 2, pp. 790-95. See also the bibliography in Léon Faucher, "Intérêt" DEP, vol. 1, pp. 953-70.
1718 The idea that the deprivation experienced by the lender must be a major element in the legitimacy of interest was expressed by Gustave de Molinari, "Lettre sur le prêt à intérêt," JDE T.23, no. 99, 15 juin 1849, pp. 231-41. In this essay Molinari praises Bastiat for attempting in his pamphlet Capital et rente to refute Proudhon's views on interest which he regards as "l'hérésie économique" (economic heresy), but also criticises him for providing an incomplete defence of interest. Molinari argues that Turgot had a more satisfying theory of interest which he argued was a reimbursement to the lender for the "deprivation" he suffered by not using his capital himself (in other words, the opportunity cost to him of not using the capital for some other purpose), and as a premium paid for assuming risk of loss if the venture failed. Molinari then adds a number of other factors which he believes also contribute to justifying interest payments which Bastiat ignores, including "le travail du prêteur" (the labour of the lender), having "prévoyance" (foresight) in selecting ventures which might be profitable to lend money for, payment for forgoing immediate consumption for consumption in the future (an early statement of time preference, or what Molinari termed "transport du travail dans le temps" (the transport of labour through time), p. 233, or "cet échange de travail passée contre du travail futur" (this exchange of past labor for future labour), p. 234), and that the purpose of saving was to not loan money but to consume goods at some time in the future.
1719 Bastiat puns here on the noun "l'usure" which can mean "wear and tear" of something like a tool, or "usury," the charging of high interest for a loan.
1720 Bastiat has made up this word, "le charpentier-capitaliste" (the carpenter as capitalist).
1721 Bastiat expressed similar concerns in his "Draft Preface to the Economic Harmonies " (written possibly in Sept. 1847 when he began giving lectures on political economy) where he chastises himself for losing sight of the bigger picture by having focussed all of his attention on the free trade movement. He says that by focusing on "a single crust of dry bread" he was in danger of losing sight of "what was grand and majestic in the whole". See, CW1, pp. 316-20. In the following passage on leisure he argues that we must not lose sight of what the purpose of labour is ultimately for. See the glossary entry on "Social Economy."
1722 Immanuel Kant (1724-1804) was a German philosopher who taught for many years at the University of Koenigsberg. He made pivotal contributions to the study of ethics and epistemology and was a leading figure in the German Enlightenment.
1723 Such as Karl Marx whom Proudhon met in Paris towards the end of 1844 and later corresponded in 1846. See, "Introduction" to Selected Writings of Pierre-Joseph Proudhon, Edited and with an Introduction by Stewart Edwards. Translated by Elizabeth Fraser (London: Macmillan, 1969).
1724 Proclus Lycaeus (412-485 AD) was a Greek Neoplatonist philosopher whose commentaries on Plato were very influential.
1725 St. Thomas Aquinas (1225-1274) was born near Aquino, Sicily and was an Italian Dominican theologian whose scholarship propelled him to the first rank among the Scholastics of the Middle Ages. His major works are the Summa theologica and the Summa contra gentiles .
1726 René Descartes (1596-1650) was a French philosopher and mathematician who lived much of his life in the Dutch republic. His best known works are Meditations on First Philosophy (1641) and Discourse on Method (1637) which laid the foundation for modern rationalism.
1727 Johann Gottlieb Fichte (1762-1814) was a German idealist philosopher who was much influenced by Immanuel Kant. He wrote on atheism (for which he was dismissed from one teaching position), the impact of the French Revolution, natural law, the autarkic nation state, and German nationalism.
1728 Georg Wilhelm Friedrich Hegel (1770-1831) was a German idealist philosopher whose work on dialectics had a big impact on the thinking of Karl Marx. He believed that the State was the culmination of social and political evolution.
1729 Thomas Diafoirus is the pedantic doctor from Molière's play Le Malade imaginaire (The Imaginary Invalid, or the Hypocondriac) (1673) who likes to use overly complicated medical and scientific language. He is however, not very concerned with the actual health of his patients. It is interesting that Proudhon would quote Molière to Bastiat as the latter often used Molière in his own writing to make fun of protectionists. See for example ES2 9 "Theft by Subsidy" CW3, pp. 170-709, where Bastiat parodies Molière's own parody of doctors.
1730 "Distinguo" (I distinguish, or I make a distinction) was used in Latin debates to avoid giving a direct "yes" or "no" answer to a question. The answer would be in the form, "yes in one sense, but no in another."
1731 Pellegrino Rossi (1787-1848).
1732 King Louis IX (1214-1270) was cannonised by the Catholic Church in 1297 and was therefore also known as "Saint Louis." During his reign Louis expanded the size of France by seizing Normandy, Maine, Provence, Languedoc. He also participated in the Seventh and Eighth Crusades, eventually catching dysentery on the last one and dying. As a staunch Catholic, Louis attempted to ban blasphemy, prostitution, gambling, and most interesting for our purposes here, the charging of interest on loans.
1733 On the night of August 4, 1789 the National Constituent Assembly voted to abolish the seigneurial rights of the Nobility and the Church.
1734 Proudhon is best known for his slogan that "property is theft" which is his answer to the question he posed in his book "what is property?" Proudhon Qu'est-ce que la propriété? ou Recherches sur le principe du Droit et du Gouvernement. Premier mémoire (Paris: J.-F. Brocard, 1840).
1735 Mascarille was an unscrupulous servant in Molière's play Les précieuses ridicules (The Ridiculous Precious Ladies) (1659). He mascarades as his aristocratic employer after he had been rejected by one of the precious ladies as a potential husband. Molière himself played Mascarille when the play was first performed. The line "stop thief" comes during some word play with one of the ladies about how she has stolen his heart like a thief in the night. Œuvres complètes de Molière. Avec des notes de tous les commentateurs (Paris: Firmin Didot frères, 1843), "Les précieuses ridicules," scene x, p. 94.
1736 This is of course something Bastiat could not admit given the fact that he based his moral and legal theory on natural rights which argued that there was a universal human nature which existed in all places and at all times; and the fact that he like the other political economists believed that economics was a science and that economic theorists could identify natural laws which governed how the economy worked. Bastiat's friend and colleague Gustave de Molinari explored this in much greater length in several works, beginning with a book he published in mid-1849, Evenings on Saint Lazarus Street: Discussions on Economic Laws and the Defence of Property (1849). Whereas, Proudhon argued that something could be "accepted as true" in one period and not at a later one; while Bastiat argued that just because something is accepted as true does not make it so.
1737 In his Système des contradictions économiques (1846) Proudhon has a complex 10 stage theory of economic evolution which begins with the stage of "The Division of Labour", and moves through "Competition" (3), "Monopoly" (4), "Credit" (7), and "Community" (9).
1738 Corsairs were buccaneers or pirates who operated off the north coast of Africa between the 16th and 18th centuries. They were also known as "Barbary pirates." One of the most famous of their many captives was Cervantes, the author of Don Quixote , who was captured in 1575 and then released after 5 years after his family paid the ransom money.
1739 See the Editor's Introduction for a discussion of Say's theory of the contribution of transport, both geographical and temporal, to productive activity and Proudhon's misunderstanding of this.
1740 At the Battle of the Caudine Forks (c. 321 BCE), a Roman army was ambushed in a narrow mountain pass near the town of Caudium in central Italy, decisively defeated, and publicly humiliated by the Samnites who forced the soldiers to march under a yoke to show their submission. Proudhon's application of the metaphor is unclear, but perhaps what he means is that we all have to make the humiliating admission of complicity in interest.
1741 There are some striking similarities in the religious views of Proudhon and Bastiat. Proudhon was a deist who rejected the teachings of the Church but he was however a Free Mason who was initiated into a Lodge called "Sincérité, Parfaite Union et Constante Amitié" (Sincerity, Perfect Union, and Constant Friendship) in Besançon (the town of his birth) in January 1847. He explained his objections to organised religion in De la justice dans la Révolution et dans l'Église. Nouveaux principes de philosophie pratique (Paris: Garnier, 1858). Likewise, Bastiat was a Mason joining a Lodge, "La Zélée" (The Zealot), in Bayonne in his early twenties. He too was probably a deist although he referred to Providence and the harmonious order he believed it created in the world on many occasions in his writings. Like Proudhon, Bastiat thought established religion had been instrumental in creating a society based upon organised plunder, referring to "theocratic plunder" in the outline he wrote of his never finished "History of Plunder." Unlike Proudhon, it seems that Bastiat became stronger in his religious views in the last year of his life, especially in his pamphlet The Law (June 1850), and that he was willing to take the last sacrament at the hands of his cousin who was a priest.
1742 Proudhon made this provocative statement on page 1 of his book Qu'est-ce que la propriété? ou Recherches sur le principe du Droit et du Gouvernement. Premier mémoire (Paris: J.-F. Brocard, 1840). The entire paragraph reads: "If I had to answer the following question, "What is slavery?" and do so in a single word, I would reply "It is murder", and my thinking would be understood immediately. I would not need a long discussion to show that the power to deprive a man of his thoughts, his will, and his personality is a power of life and death, and that to enslave a man is to murder him. So why then couldn't I answer this other question "What is property?" the same way, that "It is theft", without having the certainty of being misunderstood, although this second statement is only a transformation of the first?" He then spends the next 244 pages making the case for this claim.
1743 Both Bastiat and Proudhon attacked the ideas of Louis Blanc and Pierre Leroux. Bastiat specifically focused on Louis Blanc in his anti-socialist pamphlets "Property and Law" (15 May 1848) in CW2, pp. 43-59, and "Individualism and Fraternity" (June 1848) in CW2, pp. 82-92; and Pierre Leroux in "Justice and Fraternity" (June 1848) in CW2, CW1, pp. 60-81. Proudhon attacked them in a series of articles in La Voix du peuple beginning in Nov. 1849 and continuing until Jan. 1850. See, Mélanges , vol. 3, pp. 1-85.
1744 Pierre Leroux (1798-1871) was a prominent member of the Saint-Simonian group of socialists and founder of Le Globe , a review of the Saint-Simonists. He was a journalist during the 1840s and was elected to the Constituent Assembly in 1848 and to the Legislative Assembly in 1849. His most developed exposition of his ideas can be found in De l'Humanité (1840) and also in De la ploutocratie, ou, Du gouvernement des riches (1848).
1745 Bastiat's famous definition of the State which he coined in June 1848 was "L'État, c'est la grande fiction à travers laquelle tout le monde s'efforce de vivre aux dépens de tout le monde" (The state is the great fiction by which everyone endeavors to live at the expense of everyone else.), "The State" (Sept. 1848), in CW2, p. 97.
1746 Proudhon, "Résistance à la Révolution. Louis Blanc et Pierre Leroux", La Voix du peuple , no. 65, 3 dec. 1849, in Proudhon, Mélanges vol. 3, pp. 5-30.
1747 This quotation is a summary of John Law's thinking about paper money. It is not an actual quote. It comes from Eugène Daire's "Notice historique sur Jean Law, ses écrits et ses opérations du système" in vol. 1 of the Collection des principaux économistes published by Guillaumin in 15 volumes between 1840 and 1848. See, Économistes financiers du XVIIIe siècle. Vauban, Projet d'une dîme royale. Boisguillebert, Détail de la France, Factum de la France, et opuscules divers. Jean Law, Considérations sur le numéraire et le commerce. Mémoires et lettres sur les banques, opuscules divers. Melon, Essai politique sur le commerce. Dutot, Réflexions politiques sur le commerce et les finances. Précédés de notices historiques sur chaque auteur, et accompagnés de commentaires et de notes explicatives, par M. Eugène Daire (Paris: Guillaumin, 1843), pp. 423-24 for Daire's discussion.
1748 Bastiat uses the phrase "des libres banques" for the first time here. In a later Letter 12 he has a lengthy defence of "free banking" by which he means the competitive issuing of currency by privately owned banks in the absence of a government protected monopoly Central Bank, below, pp. 000. This idea was explored in depth by the economists Charles Coquelin, Du Crédit et des Banques (Paris: Guillaumin, 1848) and "Banques" DEP, vol. 1, pp. 107-45. See the glossary entry on "Free Banking."
1749 Here Bastiat talks about another kind of "banques libres" established by and for the workers themselves. His model for these voluntary cooperative banks came from the experience of free banking in the United States at this time. See below for details, pp. 000. Proudhon on the other hand initially wanted the Bank of France (the legally privileged "national bank") to take the lead in establishing free or very low interest loans for workers. later he argued for smaller "Peoples Banks" or "Exchange Banks" to be set up, and even tried unsuccessfully launch his own bank through subscriptions much along the lines suggested here by Bastiat.
1750 In Letter 3, above, pp. 000.
1751 A few years after the revolution Horace Say provided data on the average daily wages of 13 groups of workers in the Paris area, including unskilled labourers who earned 2.50 to 3 fr per day; stone masons 5 fr.; tailors 4 fr.; textile factory workers 4.30 fr.; metal workers 4.25 fr.; and printers 3.50 fr. Horace Say, "Du taux des salaires à Paris," JDE, 2nd. série, T. VII, no. 7, 15 Juillet 1855, pp. 17-27.
1752 Throughout this Letter Proudhon refers to societies in the past which rejected the moral legitimacy of charging interest for loans. He uses the following words which were used for "interest": Nescheck (Hebrew), Tokos (Greek), Foenus (Latin), and Interesse (Medieval Latin).
1753 Also throughout this Letter Proudhon refers to two historical practices for insuring cargo carried in maritime trade which he believed were legitimate at the time but which are no longer legitimate in the present day. The terms are: "le contrat de pacotille" which were contracts for small quantities of private cargo made by several individual traders; and "le contrat à la grosse" which were whole ship cargo contracts in which the entire ship and its contents were put up as collateral for any losses at sea. The latter was also called in English "bottomry." For the sake of simplicity we have translated "le contrat à la grosse" as "whole ship contracts" and "le contrat de pacotille" as "private cargo contracts."
1754 Proudhon was in prison when he was writing these Letters for having offended the President of the Republic in print. No doubt the police were watching his magazine carefully to monitor what he was saying.
1755 Proudhon is referring to his own efforts in the Assembly to introduce legislation to simplify and reduce taxes in July 1848. These were overwhelming voted down by the Chamber. See footnote above, pp. 000.
1756 The development of railways in France began in earnest in the late 1830s and early 1840s with considerable collaboration between private companies and the government. Under the Railway Law of 11 June 1842 the government ruled that 5 main railways would be built radiating out of Paris which would be built in cooperation with private industry. The established road transport operators were naturally suspicious of this new kind of competition.
1757 French law at this time recognized only three kinds of business association: "la société en nom collectif" (partnerships), "la société en commandite" (limited partnerships), and "la société anonyme" (public limited companies) and legislated the maximum rate of interest for each type of company . Here the discussion concerns "la commandite" which were limited partnerships, also sometimes referred to as "silent or sleeping" partnerships. See, Renouard, "Sociétés commercials," DEP, vol. 2, pp. 647-50.
1758 Tyre was a city in Lebanon famous for producing purple dye used in making colourful cloth.
1759 Like Bastiat at this time, Proudhon also seems to be toying with a subjective theory of value which was ahead of its time. The key idea is that each person values goods and services differently (i.e. it is "subjectively" valued), that there is no absolute or "objective" way of evaluating the worth of goods and services (such as the amount of labour or "labour time" they "embody"), and that it is the differences in the way individuals value goods and services which provides opportunities for mutually beneficial trade.
1760 "Interesse" - a Medieval Latin word for "interest"; from inter, "between" or "among," and esse, "to be," hence "to be among," "to take part in" "to share in."
1761 Proudhon uses the Latin work "alea" which means the die used in games of chance.
1762 The Latin word "faenus" or "fenus" meaning the profit of capital, interest, usury. See, Charlton T. Lewis, An Elementary Latin Dictionary (New York: American Book Company, 1890), p. 313.
1763 The Greek word "tokus" meaning interest earned on lending money.
1764 The Hebrew word "neshek" meaning interest or usury.
1765 "Lend not to your neighbour, but to the stranger." Proudhon is slightly misquoting the Vulgate: Non fœnerabis fratri tuo ad usuram pecuniam, nec fruges, nec quamlibet aliam rem; sed alieno, "Lend not money at interest to your brother, nor food nor anything else; but to the stranger," Deuteronomy 23:19-20.
1766 Solon (640-558 BC) was an Athenian political leader and legislator who contributed to the birth of Athenian democracy with his legendary constitutional and economic reforms. Among his economic "reforms" were the banning of exports of grain and other products from the city, the ending of the practice of Athenians enslaving fellow Athenians, and debt repudiation for landholders.
1767 "La République démocratique et sociale" (the democratic and social Republic) was the name given to the kind of republic desired by the left in 1848. It was also used as the subtitle of one of Proudhon's magazines in late 1848: Le peuple: Journal de la République démocratique et sociale (1 Nov. 1848-13 June 1849 (no. 1-206)).
1768 Lycurgus (8th century BC) was a mythical Greek legislator to whom were attributed the severe laws of Sparta. These laws enshrined the virtues of martial order, simplicity of family and personal life, and shared communal living. His counterpart in Athens was Solon. (See entry for Solon.). In the eighteenth century it was common among social theorists to regard Athens and Sparta as polar opposites, with Athens representing commerce and the rule of law, and Sparta representing war and authoritarianism.
1769 The socialist Étienne Cabet (1788-1856) advocated a society in which the elected representatives controlled all property that was owned in common by the community. He named his fictitious communist community Icarie and in 1848 he left France in order to create such a community in Texas and then at Nauvoo, Illinois, but these efforts ended in failure.
1770 Letter 4.
1771 It is not clear where Proudhon gets this information from.
1772 A reference to the liberal Welsh philosopher Richard Price (1723-1791) who advocated the creation of a "sinking fund" into which budget surpluses could be placed in order to pay down the national debt. See, An Appeal to the Public, On the Subject of the National Debt (London: T. Cadell, 1772).
1773 Proudhon uses the terms "une caste de capitalistes exploiteurs, et une caste de travailleurs exploités." Liberals like Bastiat had a different division of society into the class of "les spoliateurs" (the plunders) and "les spoliés" (the plundered) membership of which group depended upon having access to political power in order to get special privileges and favours. However, Bastiat also used the term "caste" from time to time. See the glossary entry on "Bastiat's Theory of Plunder."
1774 France suffered two periods of economic downturn which made life very difficult for the poor. The first were the crop failures of 1846-47 which led to steep increases in the price of staples such as bread. This recession may well have contributed to the outbreak of Revolution in February 1848. Following the Revolution the French economy came to a standstill as a result of political uncertainty, the upheavals caused by street riots and their repression by troops, the collapse in tax collection, and the blowout in the budget caused by new socialist programs such as the National Workshops. This lead to an economic recession of which lasted for most of 1848-49.
1775 In an elaboration of what his law of population meant in practice which Malthus included in the 2nd revised edition of 1803 (but removed in later editions) was the following harsh statement about who could or could not be admitted to a seat at "nature's mighty feast": "A man who is born into a world already possessed, if he cannot get subsistence from his parents on whom he has a just demand, and if the society do not want his labour, has no claim of right to the smallest portion of food, and, in fact, has no business to be where he is. At nature's mighty feast there is no vacant cover for him. She tells him to be gone, and will quickly execute her own orders, if he does not work upon the compassion of some of her guests." The passage comes from Book IV, Chapter VI "Effects of the Knowledge of the Principal Cause of Poverty On Civil Liberty" in Thomas Robert Malthus, An essay on the principle of population (1803, 2nd revised ed.), p. 531. It was seized upon by Proudhon who harshly criticised the economists for being "sans entrailles" (heartless) in the willingness to condemn the poor for the hardship they suffered as a result of having large families.
1776 Possibly a reference to Anne Campbell (1715-1785) the wife of William Wentworth, the Second Earl of Strafford (1722-1791). They owned Wentworth Castle in Yorkshire and moved in Horace Walpole's social circle. Joshua Reynolds painted her portrait.
1777 Following the crackdown on political protesters who took part in the June Days riots of June 1848 many thousands were arrested, tried, executed, exiled, or transported. The army under General Cavaignac was used to suppress the rioting which resulted in the death of about 1,500 people and the arrest of 15,000 (over 4,000 of whom were sentenced to transportation). The Assembly immediately declared a state of siege (martial law) in Paris and gave Cavaignac full executive power which lasted until October.
1778 In fact Say says the exact opposite in Cours complet , vol. 1, (Guillaumin, 1852) p. 108, where he has a long passage explaining the activities of several groups of individuals who are essential for the production of useful things. He discusses the functions of the land owner, the capitalist (a word Say uses too), the skilled worker, and the entrepreneur who brings all the different groups together and coordinates their activities for "a single end" (to produce and sell useful things to customers). Concerning the capitalist, Say notes that he has choices about how his capital might be invested (i.e. opportunity costs) and one of his productive contributions is to identify what are the most productive and hence profitable activities to invest in. He thus concludes that capitalists are also part of "la classe des producteurs" (the class of producers).
1779 Proudhon does not reveal the name of the island until the end of the Letter.
1780 Proudhon no doubt knew of Bastiat's earlier use of the Robinson Crusoe story to illustrate the nature of economic thinking and how economic choices were made by individual actors (starting with Robinson) and then between two or more actors (Friday and then visitor). Bastiat's use of these "thought experiments" to explain economic decision making was original and establish him as a proto-Austrian twenty years ahead of his time. Murray Rothbard in particular acknowledged this in Man, Economy, and State (1962). Proudhon as well made use of the Crusoe story as early as 1840 in What is Property? where he does not mention Crusoe by name, merely an unidentified "naufragé" (ship wrecked sailor) who is in a boat with provisions but refuses to let another person in the water to come aboard. (See, 1840 ed., p. 191.) The story that follows here is an expansion of that and Crusoe is now identified by name.
1781 This is an example of the common anti-semitism of the day. Bastiat also sometimes used similar phrases. See above, pp. 000.
1782 Proudhon paraphrases Bastiat's "reflection on leisure" which he gives at the end of Letter 4 where he talks about leisure and how accumulated capital makes more leisure possible. See, above, pp. 000.
1783 A reference to Daniel Defoe's 1719 novel in which Robinson Crusoe was shipwrecked on the Island of Despair.
1784 Such as Proudhon himself on the "Peoples Bank," the socialist Montagnard group within the National Assembly who advocated a tax on capital, Louis Blanc on the National Workshops, and Charles Fourier on the organisation of work in "Phalanxes."
1785 Above, pp. 000.
1786 From Proudhon, Confessions d'un Révolutionnaire pour servir à l'histoire de la Révolution du Février (Paris: Au Bureau du journal La Voix du Peuple, 1849), p. 76; reprinted in Oeuvres complètes de P.-J. Proudhon. Tome IX (Paris: A. Lacroix, 1868), Chap. XV Banque du Peuple," p. 213.
1787 Bastiat debunked this idea in ES1 11 "Nominal Prices" (Oct. 1845), CW3, pp. 61-64, and Damned Money! (April 1849), above pp. 000.
1788 "Non foenerabis fratri tuo foenus pecuniae, foenus cibi, foenus cujuscunque rei in qua foenus exercetur." (Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury.) Deut. xxiii, 20, 21: 19: 19.
1789 See for example the account in Adolphe-Jérôme Blanqui, Histoire de l'économie politique en Europe: depuis les Anciens jusqu'à nos jours; suivie d'une Bibliographie raisonnée des principaux ouvrages d'économie politique , 2 vols. (Paris: Guillaumin, 1845). 3rd ed. (1st ed. 1837.). Vol. 1, Chapter IX, pp. 141-54.
1790 See the glossary entry on "Social Economy."
1791 Luke 6: 35: "verumtamen diligite inimicos vestros et benefacite et mutuum date nihil desperantes et erit merces vestra multa et eritis filii Altissimi quia ipse benignus est super ingratos et malos" (But love ye your enemies: do good, and lend, hoping for nothing thereby: and your reward shall be great, and you shall be the sons of the Highest. For he is kind to the unthankful and to the evil.) Latin Vulgate.
1792 Verses in order: Matthew 5-11, Luke 6:21-22; Matthew 26:11, Mark 14:7, John 12:8; Matthew 22:21, Mark 12:17, Luke 20:25; Romans 13:1-7, Ephesians 6:5, Colossians 3:22, 1 Timothy 6:1, Titus 2:9, 1 Peter 2:18; Matthew 6:25-34, Luke 12:22-32; Matthew 5:39-40, Luke 6:29.
1793 Today, philosophers talk about contrast the moral choices which might be made in extreme "life-boat situations" vs normal social and economic conditions. It should be noted that Proudhon in What is Property? and "Letter 7" literally used such a life boat situation in his discussion.
1794 Letter 6, above, pp. 000.
1795 Shoemakers used a "last" made from wood or iron in the shape of a human foot to hold the shoe while the leather upper was tacked onto the sole.
1796 Bastiat uses the word "la rente" (rent) and not "intérêt" (interest) here, but interest is what is meant.
1797 [See the long Note at end of chapter.]
1798 Bastiat uses the word "l'association" (partnership or business association), which was also often used by the socialists, to make his point that for-profit businesses were also forms of association between capital and labour.
1799 Bastiat uses the phrase "l'infâme capital" (infamous or vile capital) which reminds one of Voltaire's description of the Church as "l'Infâme" (the infamous or vile one).
1800 This is similar to one of Zeno's paradoxes, the "dichotomy paradox.
1801 This is not a direct quote. Proudhon is paraphrasing Bastiat.
1802 Proudhon paraphrases Bastiat again.
1803 Pope Pius IX (1792-1878) was born Giovanni Maria Mastai-Ferretti and served as Pope from 16 June 1846 to his death in 1878. He became Pope only 3 years before this exchange between Proudhon and Bastiat took place.
1804 Bastiat was not a full member of the Academy but a "corresponding" member. He was elected to that position on 24 Jan. 1846. See the the glossary entry on "The Academy of Moral and Political Sciences."
1805 Bastiat was elected to the new Constituent Assembly of the Second Republic to represent the département of Les Landes on 23 April 1848. He was nominated by the Assembly to the Finance Committee to which he was reappointed 8 times. Part of his duties included giving reports of the Committee's activities to the Chamber on a periodic basis. He served as its VP until he took a leave of absence in February 1850 due to his failing health.
1806 Bastiat was an active member of an international association called the Friends of Peace and took a great interest in their congresses in spite of finding it difficult to attend them because of his declining health. Because of his ill health and political commitments Bastiat was only able to attend the Paris congress in August 1849 at which he gave an address on "Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement," see above, pp. 000.See the glossary on "Peace Congress."
1807 There was no such group as the "Anglo-French League for Free Trade" which is an invention of Proudhon, possibly designed to impugn the French free trade movement with an English connection. In England there was the "Anti-Corn Law League" founded by Richard Cobden and John Bright in 1838. In 1846 a French Free Trade Association began modelled on that of the Cobden's and Bastiat was made the editor of its journal Le Libre-Échange. See the glossary entries on "Association pour la liberté des échanges (Free Trade Association)" and "The Anti-Corn Law League."
1808 The Institute's address was La place de l'Institut, with an entrance off the quai de Conti. The Banque de France was on the rue de la Vrillière in the 1st Arrondissement in Paris. They were only 1.1 km apart and it would take 15 minutes to walk between them.
1809 Antoine Maurice Appolinaire, Comte d'Argout (1782-1858), was the Minister for the Navy and Colonies, then Commerce, and Public Works during the July Monarchy. In 1834 he was appointed Governor of the Bank of France, a position he held until 1857.
1810 Gilbert-Urbain Guillaumin (1801-1864) was a mid-19th century French classical liberal publisher who founded a publishing dynasty which lasted from 1835 to around 1910 and became the focal point for the classical liberal movement in France. He became a publisher in 1835 in order to popularize and promote classical liberal economic ideas, and the firm of Guillaumin eventually became the major publishing house for liberal ideas in the mid nineteenth century.
1811 The Bank of France was modeled on the Bank of England and was founded as a private bank in 1800 with Napoleon as one of the shareholders. It was granted a monopoly in issuing currency in 1803. Payment in specie upon demand was suspended twice in the 19th century, both times during revolutions - 1848-1850 and 1870-1875. The banks of the different Départmentes were merged into the Bank of France in 1848 in an attempt to solve the fiscal crisis brought on by the Revolution.
1812 See the glossary entries on "Fonteyraud" and "The Cholera Outbreak of 1849."
1813 The capital of the Banque de France on 10 May 1849 was declared to be 91,250,000 fr. See, Courcelle-Seneuil and Paul Coq, "Banque, Banquier," in Dictionnaire universel théorique et pratique du Commerce et de la Navigation (Paris: Guillaumin, 1859), vol. 1, p. 240. See also the official Report for the year 1849 by Argout, the Governor of the Bank, in "Opérations des banques publiques en France pendant l'année 1849. Rapport annuel de M. d'Argout, gouverneur de la Banque" in Annuaire de l'économie politique et de la statistique pour 1851 , par MM. Joseph Garnier et Guillaumin (Paris: Guillaumin, 1851), pp. 62-83.
1814 Proudhon uses a term "fictif" (fictitious, false, fake) which Bastiat also liked to use. Bastiat contrasted "francs fictifs" (imaginary or false francs) and "francs métalliques" (gold francs). Here Proudhon makes a similar distinction between "le capital fictif" (fictitious or false capital) and "le capital réel" (genuine or real capital).
1815 The French saying "appeler un chat un chat" can be translated into English as "to call a spade a spade." The quote comes from one of the Satires of Nicolas Boileau Despréaux (1636-1711) who immortalised Charles Rollet, a 17th century lawyer who was fined and banished for defrauding his clients. See, Oeuvres de Boileau-Despréaux, avec un commentaire par M. de Saint-Surin. (Paris: J.J. Blaise, 1821). Volume 1, p. 81.
1816 Again, Proudhon is very similar to Bastiat in wanting to use "harsh language". Bastiat had come to the same conclusion in January 1846 when he decided to call subsidies to industry "theft" in ES2 9 "Theft by Subsidy" (Jan. 1846, JDE) - "Frankly, my good people, you are being robbed. That is plain speaking but at least it is clear." CW3, p. 171.
1817 It is not clear where Proudhon gets this figure of 431 million fr. According to Courcelle-Seneuil and Paul Coq, the figure for "billets au porteur en circulation" (notes in circulation) for 1849 was 411 million fr., "Banque, Banquier," in Dictionnaire universel théorique et pratique du Commerce et de la Navigation , vol. 1, p. 240.
1818 This is another example of Proudhon inventing a new term - "le parasitisme gouvernemental et propriétaire".
1819 Another example of the similarity in ideas between Bastiat, Molinari, and Proudhon on the existence of a non-producing, plunder class who lived off ordinary people. In this paragraph Proudhon contrasts "la classe travailleuse" (the labouring classe) and"la classe parasite" (the parasitic class).
1820 The population of France at this time was about 35-36 million people.
1821 See the data provided by Courcelle-Seneuil and Paul Coq, "Banque, Banquier," in Dictionnaire universel théorique et pratique du Commerce et de la Navigation (Paris: Guillaumin, 1859), vol. 1, p. 240.
1822 The figure of 12 billion fr. of secured or mortgaged debt in France is mentioned by Charles Barre (quoting Wolowski, p. 105) and Coffinières (p. 206). See, Charles Barre, Du crédit et des banques hypothécaires (Paris: Guillaumine, 1849); A. S. G. Coffinières, Etudes sur le budget et spécialement sur l'impôt foncier (Paris: Guillaumin, 1848). Also "Chroniques", pp. 172 ff. JDE, T. 20, no. 79, 1 mai 1848, Horace Say, "Premières idées du nouveau Ministre des Finances," JDE, T.20, no. 84, 15 juillet, pp. 427-34; and "Bulletin. Opérations des Banques publiques en France pendant l'année 1848" - Compte rendu, au nom du Conseil Général de la Banque, par M. d'Argout, Gouverneur," JDE, T. 22, no. 96, 15 mars 1849, pp. 426-39.
1823 In 1849 the interest paid on the national debt amounted to 455 million fr. See, Appendix on "French Government Finances 1848-49"??
1824 Proudhon uses the expression "ateliers de l'usure et de l'intérêt" (workshops) in a disparaging way here.
1825 Another neo-logisim by Proudhon "le capital-argent" (money as capital).
1826 Proudhon is very vague about which economist he has in mind and we have not been able to track the reference down.
1827 The Saint-Simonian socialist Pierre Leroux (1798-1871) based his social theory on groups of three (triads), borrowing from the Pythagorean philosophy of numbers. In "Doctrine de l'humanité", p. 15 ff. he has an elaborate social structure based upon various "trinities" such as "property, family, city", "liberty, fraternity, equality", and "citizens, associates, and functionaries." See, Pierre Leroux, De l'égalité (Boussac, Imprimerie de Pierre Leroux, 1848).
1828 In Le Nouveau Monde of December 15 1849 , a paper that he had launched in London, Louis Blanc blamed Proudhon "for having reserved for M. Bastiat, the defender of interest on loans, …all the urbanity of his polemic." Le nouveau monde, revue historique et politique, par Louis Blanc . No. 6 - Décembre 1849. (Bruxelles: Ve Wouters, 1849). "Un homme et une doctrine. Aux délégués du Luxembourg." 3. "D'une destination ultérieur de l'état," pp. 227-28.
1829 Which Proudhon explores in great detail in is book in Système des contradictions économiques, ou philosophy de la misère (Paris: Guillaumin, 1846).
1830 Letter 7, above, pp. 000. "si la peine de créancier est zéro, l'intérêt doit devenir zéro."
1831 Letter 9, above, pp. 000. "le produit net ne se distingue pas du produit brut ; de même, dans l'ensemble des faits économiques, le capital ne se distingue pas du produit . Ces deux termes ne désignent point en réalité deux choses distinctes ; ils ne désignent que des relations. Produit, c'est capital ; capital, c'est produit "
1832 One franc is worth twenty sou, and 300 francs therefore worth 6,000 sous.
1833 That is, "la gratuité du travail" (unpaid labour).
1834 Bastiat says "la liberté des transactions" which might also mean freedom of commerce or any other kind of economic activity.
1835 Charles Coquelin wrote a series of articles on free banking in the early 1840s for La Revue des Deux-Mondes and these ideas were further developed in his major book on the subject, Du Crédit et des Banques (Paris: Guillaumin, 1848). See the glossary entry on "Coquelin."
1836 The reference is to French rationalist philosopher Nicolas Malebranche (1638-1715) and his doctrine of the relation of human to divine cognition.
1837 Bastiat uses the interesting phrases "des boutiques d'argent" (shops where money is sold) and "des bureaux de prêt et d'emprunt" (offices where one can get loans and borrow money).
1838 This letter was printed in January 1850 and Bastiat must have known he was dying from his throat condition. He would be dead on Christmas eve later that same year.
1839 See another amusing reductio ad absurdum argument which is Bastiat's stock in trade in"Capital and Rent" (above, pp. 000) where he talks about breeding a sheep with no head. "The sophism that I am combating here is rooted in the possibility of dividing something infinitely, which applies to value as well as to materials." The sophism here that he is refuting is "the pretence that what in this world is regarded as bad can be a remedy."
1840 Which of course Proudhon did in Système des contradictions économiques, ou philosophy de la misère (The System of Economics Contradictions, the Philosophy of Poverty) (1846).
1841 From the Pensées of French essayist Joseph Joubert (1754-1825). Pensée XVIII, in Pensées, Essais. Maximes et Correspondance de J. Joubert. Recueillis et mis en ordre par M. Paul Raynal, et précédés d'une notice sur sa vie, son caractère et ses travaux. Seconde édition revue et augmentée. Tome deuxième (Paris: Ve le Normant, 1850), p. 178.
1842 Bastiat's worsening throat condition made it very difficult for him to speak, especially in the Chamber.
1843 La Patrie was an independent newspaper founded in 1841. It initially supported Guizot's government but became increasingly critical after 1846. After the Revolution of 1848 and the creation of the Second Republic it remained a supporter of constitutional monarchy and supported Louis Napoléon's bid for the presidency in December 1848.
1844 Bastiat gave a summary of his views in a speech in the Chamber on 12 December, 1849 (3 weeks before he wrote this letter) on "The Tax on Wines and Spirits" in which he stated, "The number of things included in the essential attributions of the government is very limited: to ensure order and security, to keep each person within the limits of justice, that is to say, to repress misdemeanors and crimes, and to carry out a few major public works of national utility. These are, I believe, its essential attributions, and we will have no peace, no financial wherewithal, and we will not destroy the hydra of revolution if we do not regain, little by little if you like, this limited governance toward which we should be aiming." CW2, p. 343. Also in this speech Bastiat stated that he thought the government's annual budget of 1.57 billion fr. (1849) could and should be cut drastically to only to 200-300 million fr.
1845 Proudhon had been in prison for the entire duration of this debate with Bastiat. He had "offended the President of the Republic" with some articles he had written. This may partly explain his testiness, even rudeness, in the discussion.
1846 This is a reference to a debate that Proudhon had at the same time with Louis Blanc and Pierre Leroux after the publication of his book Confession d'un révolutionnaire. It was a very strange polemic as Proudhon was in jail for offending the President, Blanc was exile in London following his involvement in the National Workshops and the crackdown after the June Days rioting of 1848 for which he was partly held responsible, and Leroux was still in Paris having been re-elected to the Chamber in May 1849 but would also go into exile after Louis Napoléon's coup d'état in December 1851. Leroux first went to London and then to the island of Jersey where he was a neighbour of the fellow exile Victor Hugo. See, Pierre-Joseph Proudhon, Les confessions d'un révolutionnaire: pour servir à l'histoire de la révolution de février (Paris: Garnier frères, 1850) 1st ed. Paris: Au Bureaux du Journal la Voix du Peuple, 1849).
1847 In the first edition of Say's Traité d'économie politique (1803) he defines capital as "L'accumulation des capitaux ne consiste donc pas dans l'accumulation des monnaies d'or et d'argent seulement, mais dans l'accumulation des produits quels qu'ils soient" (The accumulation of capital does not consist solely of the accumulation of money or gold, but in the accumulation of products whatever they might be), Jean-Baptiste Say, Traité d'économie politique ou simple exposition de la manière dont se forment, se distribuent et se consomment les richesses (Paris: Deterville, 1803), Tome 1, Livre Premier "De la Production," Chap. XIV "De quelle manière se forment les Capitaux,"p. 94. In a later edition (6th edition, Guillaumin 1841) Say changed his definition and talks about capital as "accumulation des valeurs produites" (the accumulation of things of value which have been produced), p. 572.
1848 In his Cours d'économie politique (1843) Pellegrino Rossi states that "Tout le produit du travail n'étant point consommé, il y a épargne; si l'épargne est appliquée comme force productive, la production s'accroît" (Since not all the product of labour is consumed, and if what is saved is used as a productive force, production will increase), in Pellegrino Rossi, Cours d'économie politique, Volume 1. 2nd ed. (Paris: G. Thorel, 1843), Deuxième leçon, p. 32.
1849 Joseph Garnier, Eléments de l'économie politique exposé des notions fondamentales de cette science (Paris: Guillaumin, 1846), Section 74, p. 32.
1850 Garnier states "Les fonctions d'un capital sont de fournir la valeur de ces avances, de se laisser consommer pour renaître sous d'autres formes, de se laisser consommer de nouveau pour renaître encore, et ainsi de suite, constamment, d'une manière productive" (The functions of capital are to supply these valuable advance payments, to let them be consumed again in order to be reborn in other forms, and then again and again indefinitely, in a productive manner). In Joseph Garnier, Eléments de l'économie politique exposé des notions fondamentales de cette science (Paris: Guillaumin, 1846), Section 199, p. 102.
1851 See Bastiat's definition of "capital" in the Editor's Introduction, above, pp. 000. In brief, he believed it was made up of three things, raw materials, tools, and provisions.
1852 Garnier, Eléments de l'économie politique , Section 68, p. 30.
1853 Garnier, Eléments de l'économie politique , Section 198, p. 100.
1854 Proudhon is probably referring to Say's classic distinction between productive and unproductive consumption in his Traité d'économie politique : "Par leur consommation, j'entends toute celle qu'ils font, de quelque nature qu'elle soit; aussi bien celle qui est improductive et qui satisfait à leurs besoins et à ceux de leur famille, que celle qui est reproductive et alimente leur industrie. " (By their consumption I include everything they make, of whatever kind it might be; also including that which is unproductive and which satisfies their needs and those of their family, as well as that which is reproductive and contributes to their industry), (Guillaumin 1841), p. 140.
1855 Proudhon uses the word "produit" which have translated as "product" or "output" depending on the context.
1856 After giving his definition of capital, Garnier goes on to give an answer to Proudhon's question about how product become converted into capital, which Proudhon ignores: "c'est l'entrepreneur qui le (les avances) consomme et le reproduit, soit que le capital lui appartienne en propre, soit qu'on le lui prête." (it is the entrepreneur who consumes it (the advance payments) and reproduces it, whether the capital belongs to him personally or whether he borrows it). Garnier, Eléments de l'économie politique , Section 199, p. 102.
1857 Proudhon uses the phrase "simple produit valeur" which we have translated as a "simple product with (some) value). It is a phrase coined by Proudhon.
1858 This idea is explicitly rejected by Bastiat in his stories about "Crusoe economics." The tools Crusoe creates (such as a fishing net) are just like any other kind of capital because they are created by a combination of forgoing present consumption and saving, in order to enable greater productivity and consumption sometime in the future.
1859 Not a lot is known about Georges Duchêne (1824-1876) other than that he was a friend of Proudhon, wrote a book with him on speculation, and was later a member of the Paris Commune in 1870. We could not locate the source of this quotation. See, Actualités. Livrets et prud'hommes (Paris: Bureau de la Société de l'industrie fraternelle, 1847); with Pierre-Joseph Proudhon, Manuel du spéculateur à la bourse. 5th ed. (Paris: Garnier frères, 1857).
1860 Proudhon introduces another new term here "la valeur faite" (value that has been created or made), which we have translated as "created value." Benjamin Tucker translated it as "realized value" in his 19th century translation of this text. The sense we are trying to convey is that capital is something that is created by men and women for a purpose, that it embodies previous work and effort, and that it has been evaluated by individuals as being something of value.
1861 A typical statement of Say's view can be found in Cours complet (Guillaumin, 1840), Septième partie, Des consommations opérées dans la société, CHAPITRE II. De l'objet qu'on se propose en consommant: "I have have shown production to be an exchange where one gives productive services (or what they cost), and where one receives products (or what they are worth). Likewise, one can show consumption to be another exchange in which one gives wealth one has acquired, or if you like services, and in which one receives satisfaction, or new wealth if you like, depending upon whether one's consumption is unproductive (sterile) or productive." p. 201-2.
1862 Another neologism: a "propriétaire-capitaliste-entrepreneur" (a landowner-capitalist entrepreneur), that is a capitalist-minded landowner who acts as a businessman or entrepreneur.
1863 Proudhon uses the phrase "le produit fait valeur" (the product made or transformed into value). He later makes considerable use of another related term "la valeur faite" which we translate as "made or created value".
1864 This is a reference to François Quesnay's Le Tableau économique (The Economic Table) (1758). This was an early attempt at input-output analysis which socialists and central planners in the 20th century thought would be able to replace the free market in solving the problem of what to produce. In a letter to Mirabeau, Quesnay explained its purpose: "I have tried to construct a fundamental Tableau of the economic order for the purpose of displaying expenditure and products in a way which is easy to grasp, and for the purpose of forming a clear opinion about the organization and disorganization which the government can bring about." In Ronald L. Meek, The Economics of Physiocracy. Essays and Translations (Fairfield, N.J.: Augustus M. Kelley, 1993. First edition 1962), p. 108. Quesnay's Tableau was republished as part of the Guillaumin firm's Collection des principaux économistes 15 vols. (1840-48). See, Quesnay, "Analyse de Tableau économique," in T. II. Physiocrates. Quesnay, Dupont de Nemours, Mercier de la Rivière, l'Abbé Baudeau, Le Trosne, avec une introduction sur la doctrine des Physiocrates, des commentaires et des notices historiques, par Eugène Daire (Paris: Guillaumin, 1846), vol. 2a, pp. 57-78.
1865 Literally "le capitaliste a mangé un travailleur" (the capitalist has eaten a worker).
1866 Another example of Proudhon's neologisms: " producteur-consommateur"
1867 This is another neologism of Proudhon, "les non-valeurs" (things of no value).
1868 This goes to the heart of the difference between Bastiat's and Proudhon's view of the production process. Bastiat would say that Proudhon ignores the role of the entrepreneur in finding an opportunity to satisfy a consumer need, the skills and knowledge of those who manage the project, the patience of the capitalist who lends the firm money, and the coordination of the different actors in the project. The labour of the worker is only one component of the process which needs to be paid.
1869 Another neologism: "la société consommatrice et reproductrice" (the consumer and producer firm or business) and "la société capitaliste et propriétaire" (the capitalist and landowning firm or business). In each case, Proudhon is treating each group as if it were acting as one person or one firm, for the sake of his argument.
1870 Proudhon uses the term "la société mutuelliste" (mutualist society or firm) which was similar in many ways to Louis Blanc's concept of workers' "organisations" or "workshops," but with the important difference that in Proudhon's world the firms or workshops would be owned by the workers or artisans and not by the state. Proudhon also seems to be sliding between using the word "la société" to mean both "society"in the broader sense and a business or firm in the narrow sense.
1871 It is not clear what Proudhon is referring to here. In P. Félix Thomas, Pierre Leroux: sa vie, son oeuvre, sa doctrine. Contribution à l'histoire des idées au XIX siècle (Paris: F. Alcan, 1904) there is a brief discussion of this dispute between Leroux and Proudhon but few details are provided, pp. 107-9
1872 Two more neologisms by Proudhon, "du propriétarisme, du bourgeoisisme."
1873 Proudhon is here making the point that the only people interested in maintaining the régime of usury were the old voting class which Bastiat called "la classe électorale." See the glossary on "The Chamber of Deputies and the Electoral Class."
1874 The name "démoc-socs" (democratic socialists) was given to the radical socialists and republicans in 1848-49 under the leadership of Armand Barbès and Alexandre-Auguste Ledru-Rollin. They were also known as "La Montagne" (the Mountain) after a similar group in the National Assembly and National Convention in the 1790s. Bastiat said he wrote his famous essay on "The State" (June, Sept. 1848) to oppose the arguments of the Montaigne faction. See, CW2, pp. 000.
1875 Here "conservatrice" (conservative) is meant in the sense of conserving or preserving, rather than politically conservative. The name for "Conservatives" in France in 1848-49 was "le Parti d'ordre" (the Party of Order) which consisted on monarchists, loyalists, and supporters of Louis Napoléon.
1876 In the period 1847-49 France had about 400,000 men in the Army and 118,000 men in the Navy for a total of about 500,000. Several economists, such as Ambroise Clément, noted that it was a curiosity that the number of "fonctionnaires" or public employees was also about 5-600,000 who in their minds constituted another kind of army. See, Ambroise Clément, "Fonctionnaire," DEP, vol. 1, pp. 787-89; Vivien, Etudes administratives par Vivien (Paris: Guillaumin, 1859) 3rd edition; Louis Reybaud, "Navigation," DEP, vol. 2, pp. 266-67; and "Marine" in Dictionnaire universel théorique et pratique de Commerce et de la Navigation (Paris: Guillaumin, 1859), T.1 A-G, pp. 274-5. State expenditure in 1849 was approximately 1.57 billion fr. thus Proudhon's statements about the number of state employees and expenditure are a bit of an exaggeration. See the Appendix on "French Government Finances 1848-49."
1877 Proudhon uses the term "la spoliation bancocratique" (bankocratic plunder) which was also used by Molinari in Les Soirées , 5th Evening, pp. 000. It is probably another neologism.
1878 "1792" is possibly a reference to the bi-partisan support for the war waged by France against its monarchist opponents, beginning with Austria in April 1792.
1879 Bastiat uses the term "la monnaie de papier" here for the first and only time in his writings. His usual term is "papier-monnaie" (paper money) so we have translated the former differently for emphasis.
1880 Bastiat uses the latin words "conclusum" (the conclusion), "ultimatum" (the last word), "desideratum" (the final goal ) which form part of a syllogism in logic.
1881 La Démocratie pacifique was a journal founded and edited by Victor Considérant to promote the socialist ideas of Fourier and the creation of "harmonious communities." It ran from 1843 to 1851.. See the glossary on "Phalanstery" and "Fourier."
1882 It is not clear what Proudhon means here.
1883 Bastiat usually contrasted "francs métalliques" (gold or silver francs) and "francs fictifs" (paper francs which were false, imaginary francs). Here he uses the phrase "la monnaie fictive."
1884 John Law (1671-1729) was a Scottish financier who worked for Louis XV to set up the first central bank funded by fiat paper money, believing that paper money was preferable to gold. He consolidated all the government chartered companies in French-controlled Louisiana into one monopoly company called the Mississippi Company which issued shares. An over issue of these shares caused a speculative bubble which burst catastrophically in 1720.
1885 A reference to the issuing of "Assignat" paper currency issued by the National Assembly between 1789 and 1796. They were originally issued as bonds based upon the value of the land confiscated from the church and the nobility("biens national") and were intended to pay off the national debt.See the glossary entry on "Assignat."
1886 Bastiat uses the expression "une fabrique inépuisable de papier-monnaie" (an inexhaustible paper money factory) which is very similar to a expression he used in his pamphlet What is Seen and What is Not Seen (July 1850) where he describes the National Assembly as "une grande fabrique de lois" (a great law factory) to produce privileges for special interests. WSWNS, CW3, pp. 000.
1887 See the glossary entry on "The Social Mechanism."
1888 This is quite close to Bastiat's definition he gave in Capital and Rent (Feb. 1849), as "raw materials, implements, and provisions." See, above, pp. 000.
1889 ( Bastiat's note. ) This retention of 10 francs, whose object is to cover just office expenses, is improperly called discount (interest). It could be reduced to a few centimes. Perhaps it would have been even better not to have bothered with it in the theory and the accounting we are doing.
1890 Bastiat is talking about what will later be known as "moral hazard", namely that banks and other investors will tend to make risky, even unsound, economic decisions if they know that they will get to keep any profits they might make but that any losses they might make will be paid for by the government at taxpayer expence. See Bert Ely, "Financial Regulation." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. < https://www.econlib.org/library/Enc/FinancialRegulation.html >.
1891 On Free Banking in America, Larry White notes that "Proponents of free banking have traditionally pointed to the relatively unrestricted monetary systems of Scotland (1716–1844), New England (1820–1860), and Canada (1817–1914) as models. Other episodes of the competitive provision of banknotes took place in Sweden, Switzerland, France, Ireland, Spain, parts of China, and Australia. In total, more than sixty episodes of competitive note issue are known, with varying amounts of legal restrictions. In all such episodes, the countries were on a gold or silver standard (except China, which used copper)." See, Lawrence H. White, "Competing Money Supplies." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. See also, Charles Coquelin, Du Crédit et des Banques (1848), Chap. X "Les banques aux États-Unis," pp. 369-421.
1892 Bastiat uses the phrase "le cours forcé" which could be translated as "compulsory or legal tender."
1893 The "lois de maximum" (Maximum price, or price controls) was decreed on 29 September 1793 in an attempt to regulate the high prices of food by setting a maximum price which could be charged by food suppliers with very severe penalties for those who broke the law. The high prices were caused by war shortages, a failed harvest, and inflation caused by the issuing of the Assignat paper currency.
1894 Total debt held by the French government in 1848 amounted to fr. 5.2 billion. In 1849 the government spent 455 million fr. paying off the debt, which amounted to 29% of total expenditure. See Gustave de Puynode, "Crédit public," DEP, vol. 1, pp. 508-25.
1895 Bastiat is mocking Proudhon by inventing two characters "la dame Offre" (Madame Supply) and "la dame Demande" (Madame Demand).
1896 Bastiat is making a play on words here as one of the socialists' key demands was for the compulsory "organisation" of work and even society by means of the state. Here he predicts that their form of socialist "organization" will end in "disorganization."
1897 Bastiat gets this quote slightly wrong, probably because he is quoting from memory again. Pascal says in Pensées , chap. IV, article III, XVII, that "La volonté est un des principaux organes de la créance" (The will is one of the principle organes of belief). The word "créance" usually means "belief", which is what Pascal probably had in mind. Bastiat has in mind its economic meaning of "credit," "credit worthiness," or "debt". He also misremembers the subject of the quote, which is "la volonté" (the will) not "la cupidité" (greed). It seems that here the economist in Bastiat has got the better of his memory. See Pensées de Blaise Pascal: rétablies suivant le plan de l'auteur (Dijon: Victor Lagier, 1835), pp. 98-99; and The Thoughts of Blaise Pascal, translated from the text of M. Auguste Molinier by C. Kegan Paul (London: George Bell and Sons, 1901). < /titles/2407#Pascal_1409_772 >.
1898 Such as Louis Blanc and Pierre Leroux. See above, pp. 000.
1899 Here Bastiat uses the term "la liberté des Banques" (free banking) for the first time in his writing. This letter is also his first use of the similar term "la liberté du crédit" (the freedom to issue credit).
1900 Bastiat uses the English phrase "Time is money".
1901 This is a quote from Benjamin Franklin's Poor Richard's Almanac . Franklin had been popular in France for his pretend rustic ways which played to the French's perceptions of frontier America. He had been the new American Republic's Minister to France 1778-1785 and had made a name for himself and had supervised a French translation of his Almanac which sold very well. Bastiat may have read a popular edition from 1834 and would have been aware of Molinari's edition of 1847 which was done for the Guillaumin firm. This edition was for the economists. The quote comes from the latter, p. 633. The economists were interested in Franklin's idea about hard work, saving, and other bourgeois values, as well as his ability to appeal to ordinary people in his writings. Another edition was published during the revolution of 1848 when Franklin's writing was enrolled in the battle against socialism, especially the struggle against the idea of "the right to a job." This was an edition for the workers with a forward by the economist Michel Chevalier. See, Benjamin Franklin, Morceaux choisis, comprenant la science du bonhomme Richard, et autres écrits populaires de Benjamin Franklin, précédées d'une notice sur sa vie (Paris: rue Taranne, 1834); Collection des principaux économistes (Paris: Guillaumin, 1840-48), T. XIV. Mélanges d'économie politique I. (Paris: Guillaumin, 1847); Benjamin Franklin et al., Conseils pour faire Fortune. Avis d'un vieil ouvrier à un jeune ouvrier, et la Science du Bonhomme Richard par Franklin. Caisses d'Épargnes. Organisation du travail. Introduction à la science populaire de Claudius (Paris: Jules Renouard, 1848).
1902 Bastiat translates Franklin's character "Poor Richard" as "Bonhomme Richard" which links it to the well known French popular figure of "Jacques Bonhomme", or the French everyman. Bastiat used the character of Jacques Bonhomme in his writings, as Franklin did with Richard, in order to appeal to a popular audience. In many respects, Bastiat was the French "Franklin", as Molinari observed in his obituary of Bastiat. See the glossary entries on "Franklin," "Jacques Bonhomme." Also, Molinari, "Nécrologie. Frédéric Bastiat, notice sur sa vie et ses écrits, par M. G. de Molinari," JDE, T. 28, N° 118, 15 février 1851, pp. 180-96.
1903 Throughout these passages Bastiat has been hinting at the idea of "time preference" with regards to people's preference for goods and services in the present compared to goods and services sometime in the future, for which they are willing to pay some kind of premium.
1904 In 1816 David Ricardo published "Proposals for an Economical and Secure Currency" in which he argued for a fractional reserve system of banking where a small amount of gold could serve as backing for paper money in circulation. It was based upon the idea that not all holders of notes would ask for their paper to be redeemed for gold at the same time. See, The Works and Correspondence of David Ricardo , ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 4 Pamphlets and Papers 1815-1823 , pp. 51-114.
1905 See, Notes by J.-B. Say, "Proposition faite par David Ricardo d'une nouvelle monnaie de papier", in Heinrich Friedrich von Storch, Cours d'économie politique; ou, Exposition des principes qui déterminent la prospérité des nations. Ouvrage qui a servi à l'instruction de LL.AA. II. Les Grands-Ducs Nicolas et Michel. Avec des notes explicatives et critiques par J.-B. Say (Paris: J. P. Aillaud, 1823), vol. 2, Liv. V Du Numéraire, chap. vi "Que le numéraire n'est point une mesure exacte des valeurs", p. 143. Say is intrigued with Ricardo's idea but raises the obvious public choice problem. The currency scheme might work if there are several private banks competing for customers, but if there were only a single, government, monopoly Central Bank what would stop it from issuing too much paper money in order to satisfy the needs of all the vested interests he mentions in the quote. Say returned to this question 5 years later in Cours complet d'économie politique pratique (1828), vol. 3, Troisième Partie. "Des Échanges et des monnaies", Chap. XVIII. "Des billets de confiance et des banques de circulation" and Chap. XIX. "Abus des banques de circulation".
1906 In this Letter Bastiat talks about "le prix du temps" (the price of time) for the first and only time in his writing. Below, he also refers to "la vente du temps" (the sale of time."
1907 Charles Mallet (1815-1902) was a member of a successful Parisian banking family which consisted of his father Jules Mallet and his brother with whom he formed the Banque Mallet frères. He later joined forces with another banking family, the Pereire brothers (Jacob Pereire (1800-1875) and Isaac Pereire (1806-1880), to form Crédit mobilier in 1852.
1908 The Swiss-born Jean-Conrad Hottinguer (1764-1841) founded a family banking dynasty which specialised in funding government debt under the ancien régime. He founded the Banque Hottinguer in Paris in 1786 and was one of the founders of the privately owned Banque de France in 1800. His son Jean-Henri Hottinguer (1803-66) took over the family bank in 1833, and invested cleverly in a number of innovative industries such as savings banks for people on average incomes (Caisse d'Epargne et de Prévoyance de Paris), and utilities such as electricity and water supply (la Compagnie générale des eaux in 1853).
1909 James Mayer de Rothschild, baron Jacob, (1792-1868) founded the Parisian branch of the famous banking family's business. He sided with the restored Bourbon monarchy in 1815, lending Louis XVIII 5 million franc in order to reestablish his regime after the fall of Napoleon and remain close to whatever government followed. He also was instrumental in funding the new states of Belgium, Greece, and Italy. In 1843 he obtained a very profitable railway concession, that of the Compagnie des chemins de fer du Nord. By 1847 he had become the wealthiest private individual with a fortune of 40 million francs (after the King of France).
1910 By phrasing it in this way, "la Liberté du crédit", Bastiat is reminding Proudhon of one of the key slogans of the liberals during the 1848 Revolution, namely "la liberté (droit) du travail" (the freedom of working, or the right to engage in work) which they put forward in opposition to the socialists' demand for "le droit au travail" (the right to a job) which they unsuccessfully attempted to have inserted into the new constitution of the Second Republic in November 1848.
1911 "Viviparous quadrupeds utter different voices; none can speak—for this is the characteristic of man, for all that have a language have a voice, but not all that have a voice have also a language." in Aristotle, Aristotle's History of Animals: In Ten Books. Edition by Johann Gottlob Schneider. Translated by Richard Cresswell (London: Bell, 1887). Book IV, #9, p. 96.
1912 "Identity is thus the sign by which one recongnizes that a proposition is self-evident; and one recognizes the identity when a proposition can be translated in terms which return to the latter, i.e., the same is the same. Consequently, a proposition which is self evident is that whose identity is immediately perceived in the (very) terms by which it is expressed." in Etienne Bonnot de Condillac, Oeuvres complétes de Condillac. Tome 6. Art de raisonner et grammaire (Paris: Lecointe et Durey, 1821), Livre premier, Chap. premier "De l'évidence de raison", p. 9.
1913 Most likely Letter 7 (17 December, 1849), above pp. 000.
1914 Letter 8 (24 December, 1849).
1915 By this Proudhon means democracy organized along socialist lines.
1916 This is a very interesting passage by Proudhon where he seems to be arguing for a subjective theory of value - "This difference (between capital and product) is purely subjective for individuals." - but does not develop it further.
1917 Say actually says that "goods are exchanged for other goods."
1918 Letter no. 12.
1919 "Commercial accountability is one of the most beautiful and happiest applications of metaphysics; it is a science, since it merits this name however limited it might be in its purpose and its area of activity, which does not cede anything to arithmetic and algebra for its precision and certainty," in Proudhon, Système des contradictions économiques, ou philosophy de la misère (1846), vol. 2, pp. 159-60.
1920 Letter no. 9.
1921 See the glossary entry on "The Bank of France."
1922 These and the following quotes and paraphrasing come from Letter 12.
1923 See above for source, pp. 000.
1924 Proudhon's book Economic Contradictions , was published by Guillaumin in 1846. Bastiat had written to Félix Coudroy on 5 June 1845, telling him about his plan to write a book on Social Harmonies , which eventually became Economic Harmonies , so it was not conceived as a direct response to Proudhon. See, Letter 39. To Félix Coudroy, Paris, 5 June 1845, CW1, p. 64.
1925 Proudhon ended the conversation here and published the 13 articles as a book, Intérêt et principale. Discussion entre M. Proudhon et M. Bastiat sur l'Intérêt (Extraits de la la Voix du Peuple) (Paris: Garnier frères, 1850). Bastiat was dissatisfied with this and wanted to have the last say, so he wrote another letter which he published in his own edition published by Guillaumin, Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Free Credit. A Discussion between M. Fr. Bastiat and M. Proudhon) (Paris: Guillaumin, 1850).
1926 This was a doubly harsh thing by Proudhon to say of Bastiat as he was in fact dying and did not have long to live. He died on Christmas eve later that year (1850) from a serious throat condition which might well have been cancer of the throat.
1927 This Letter was not part of the original debate between Bastiat and Proudhon in la Voix du Peuple . It was added to Bastiat's edition of the exchange which was published by Guillaumin. See footnote above.
1928 This malediction is only a small part of a much longer malediction from 900 AD which lists in meticulous detail the things which would be cursed. Bastiat thoughtfully condensed a section of it for the reader: "Cursed be he in living, in dying, in eating, in drinking. Cursed be he within and without. Cursed be he in his hair and in his brain. Cursed be he in his crown, in his eyes, in his ears, in his arms, etc., etc. ; cursed be he in his breast and in his heart, in his reins, in his knees, in his legs, in his feet, and in his nails." The full malediction can be found in Lester K. Little, Benedictine Maledictions: Liturgical Cursing in Romanesque France (Ithaca: Cornell University Press, 1996), "2. Excommunication Formula, about 900" pp. 255-56.
1929 Proudhon wrote his letters from Sainte-Pélagie prison where he was serving time for "offending the President of the Republic" (Louis Napoléon).
1930 By reverting to his standard practice of writing economic fables and stories to make his points it is clear that Bastiat is no longer speaking to Proudhon but to the workers who read his magazine. This story about Hellen and the construction of his bow and arrows follows the same pattern as his earlier story of Robinson Crusoe. This is followed below by yet another fable about a hospice for the blind and the sighted.
1931 Deucalion was the son of Prometheus both of whom were able to survive a flood sent by Zeus to destroy mankind by building a chest which was able to float on the water and thus save them.
1932 Hellen was the son of Deucalion and the mythic ancestor of the Greeks (Hellenes).
1933 "And God saw that it was good," Genesis 1:10, 12, 18, 21, 25, with variants at 1:4 and 1:31.
1934 It is not clear which Bidault or Bidauld Bastiat is referring to. One Bidault was an editor of the official government newspaper Le Moniteur in the late 1830s. Another Bidauld (Jean-Joseph-Xavier Bidauld (1758-1846)) had been the leading painter of the French countryside and a member of the Academy of fine arts. Either one of whom would have used skilled workers to assist them.
1935 In Greek mythology Proteus was a sea god who, like the sea, could change his shape and form at will. He supposedly knew the past and the future but normally refused to reveal what he knew. Only when harassed and exhausted by his interrogator would he reveal what he knew.
1936 Bastiat uses the word "saturée" (saturated) to describe the inflated supply of money which the Banks would put into circulation. He liked to use water as a metaphor in his writings, as in the "ricochet effect", communication flows through "canaux secrets" (hidden channels), or elsewhere in these letters "gorger" (to swamp) or "affluer" (flood) about the issuing of money. Since it is more common today to use the metaphor of "air" (as in "inflated) we have chosen to use the "air" metaphor in this instance.
1937 The Bank of France increased its "billets au porteur en circulation" (bearer notes) from 311 million fr. in 1848, to 411 million fr in 1849, to 481 million fr. in 1850, which was an increase of 170 million fr. or 55% in two years. See, Courcelle-Seneuil and Paul Coq, "Banque, Banquier," in Dictionnaire universel théorique et pratique du Commerce et de la Navigation (Paris: Guillaumin, 1859), vol. 1, p. 240.
1938 Bastiat uses the English term "Clearing House."
1939 This quote comes from Letter 13.
1940 The "Cour des comptes" (Budget Office) was established by Napoléon in the law of 16 September 1807 to oversee the government budget and spending by the state.
1941 Alexandro Maria Aguado, marquis de Las Marismas del Guadalquivir, viscount de Monte Ricco (1784-1842) was a Spanish banker who fought with Joseph Bonaparte in Spain, seeing service at the Battle of Baylen (1808) and then rising to the rank of colonel in the French Army and aide-de-campe of Marshall Soult. After 1815 he made a fortune in business in Cuba and Mexico and set up his own bank in Paris. His bank handled most of the state loans to King Ferdinand VII of Spain throughout the 1820s and he was made a Marquis for his work in 1829. Throughout this period he purchased several large properties and châteaux in the French countryside as well as in Paris, collected a large number of paintings, and was active in running the French opera.
1942 Jean-Baptiste Juvigny (1772-1836) wrote many books on life insurance, money, banking, public finance, and accounting during the 1820s and 1830s. See, Application de l'arithmétique au commerce et à la banque, terminé par un traité de négociations de banque. Nouvelle édition. (Paris, 1824); Moyen de suppléer par l'aritmétique à l'emploi de l'algèbre dans les questions d'intérêts composés, d'annuités, d'amortissemens (Paris : Bachelier, 1825); De la Nécessité de maintenir l'amortissement, et des motifs qui peuvent seuls en justifier la réduction (Paris : Librairie du commerce, 1832).
1943 Greek mythology contains multiple Æoluses with multiple sons, but Bastiat probably means Sisyphus, famous inter alia for theft and trickery.
1944 Baetica is the ancient Roman name of the present Spanish province of Andalusia.
1945 From the "Fragment of an ancient Mythologist" in Montesquieu's Persian Letters no. 142. In this letter Rica talks about inheriting a large fortune from an uncle and spending it on acquiring ancient Roman artifacts and reading the classics. At the end of the letter he quotes this fictitious "Fragment" about Sysphus trying to persuade the people of Baetica to exchange their gold, silver, and precious stones for "buckets of wind" he carried with him on his travels. Eventually, after failing to take him seriously and give him half their wealth, Sysphus suddenly disappeared taking with him 3/4 of their entire wealth.
T.242 "Comments at a Meeting of the Political Economy Society on Disarmament and the English Peace Movement" (10 Nov. 1849)↩
SourceT.242 (1849.11.10) Bastiat's comments on on disarmament and the English peace movement at a Meeting of the PES (Séance de 10 nov. 1849). In "Chronique," JDE, 15 Nov. 1849, T. XXIV, pp. 438-440; also ASEP (1889), pp. 86-90. Not in OC. [CW4]
Editor's IntroductionThis is the seventh record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
This meeting is particularly noteworthy because of the diversity of the participants which shows the broad range of professions the Society drew upon. The stenographer notes that this meeting was "one of the most well attended, most brilliant, and the most animated the Society has had" even though several luminaries were not able to attend.
The topics covered included a report on Horace Say and Bastiat's visit to England following the August Peace Congress in Paris to attend more Peace Congresses in London, Birmingham, and Manchester and to meet with Richard Cobden (perhaps to secretly begin negotiations for a disarmament treaty between France and England); 1946 whether France was ready for disarmament given the threats which it faced both internally (from socialism) and externally (from hostile powers like Austria and Russia); a vigorous reply by Garnier and Bastiat who reiterated what he had said at the Paris Peace Congress in August that heavy taxation was eating away at the heart of French society by draining the resources of the ordinary working people and driving them into revolt; the question of whether or not "Perfidious Albion" (Britain) could be trusted to patrol the world's strategic waterways; and how best to organise France's army, either along the lines of the British system of voluntary recruitment or the Prussian Landwehr system.
It is clear from the remarks that Garnier and Coquelin were the only ones present at the meeting who came to the defence of Bastiat's radical opposition to military spending and conscription.
Text:Although several members of the Legislative Assembly had not been able to come to the last meeting of the Political Economy Society, (and) although the Secretary (of the Society) had informed (the Society) of the letters (received) and the reasons (given) concerning the circumstances which prevented Messieurs the duc d'Harcourt, 1947 (Auguste) Vivien, 1948 Léon Faucher, 1949 (Auguste) Walras, 1950 (Victor Destutt) de Tracy, 1951 and (Hippolyte) Passy 1952 attending the annual dinner, and in spite of the fact that some other members were far away from Paris, the meeting was one of the most well attended, most brilliant, and the most animated (the Society has had). It should be noted, the attendance for the first time, of M. (Marie) Fournier, 1953 Representative from Marseilles, and M. (Jules) Dupuit, 1954 the Chief Engineer of the (Department) of Bridges and Roads, who is the author of a very remarkable critical article which we have published in a recent issue (of the JDE), on the present legislation governing transportation. 1955
As dessert was served, the President of the Society M. Dunoyer, having invited M. Horace Say to give a few details about the interesting trip the (French) Friends of Peace had in England, the conversation continued in this direction until half past ten, and was followed by all the Members with great interest.
M. Horace Say delivered his account with a charm that was testimony to his excellent memory of the three meetings (he attended) in London, Birmingham, and Manchester. He explained to the meeting how the combined efforts of the Quakers and Dissenters, along with those of the supporters of economic ideas, made this movement in favour of peace a serious one worthy of attention. In his turn, M. Frédéric Bastiat said that the middle and popular classes (now) see quite clearly that in England large armaments were a (form of) trickery, 1956 just as they had realised that high tariffs were a form of trickery, as they were beginning to realise that the colonial system is a trick. He added that all these things - armaments, protection, colonies, and high (government) expenditure fed socialism here at home (in France).
These claims found a hardened opponent in M. Gabriel Lafond 1957 who had been an old travelling companion of (the explorer) Jules Dumont d'Urville. 1958 Lafond gave a presentation which was full of geographical erudition in order to prove that the English were full of good intentions concerning maritime matters, (but) that they had only freed their slaves out of commercial calculation. Without going into the details of these ideas, M. Dunoyer noted that the agitation of the Friends of Peace, excellent in itself, nevertheless had come at an inopportune time, when war was no longer international but domestic, and when disarmament would no longer be undertaken to the detriment of foreign wars but perhaps to the advantage of the enemies of domestic and social order. 1959
Replying to these two Members, M. Joseph Garnier 1960 cited as facts (for consideration) what had happened under our very eyes over the past two years: the international war between Germany (or rather Prussia) and Denmark; 1961 the war of pure nationalism between Italy and Austria; 1962 a similar war between Hungary and Austria; the international intervention of Russia in favour of Austria against Hungary; 1963 and the international intervention of France, Austria, and Spain in the affairs of Italy. 1964 Didn't all these sieges, all these attacks, all this expenditure, all this devastation, all these butcheries, all this carnage, have their origin in the system of international intervention and the system of resorting to armed conflict which the Friends of Peace want to abolish?
As for socialism, M. Joseph Garnier going even further than the view held by M. Bastiat, 1965 thought that not only did permanent armed forces strengthen socialism by requiring excessive expenditure which increased the burden of taxes and prevented useful reforms. And furthermore, that they (armed forces), like the rest of society, are vulnerable to attack (from within) and have been attacked by this cankerous rot; that it was wrong, in his view, to rely upon armed force to defend for ever the social order; that above all it was necessary to attack error by teaching and discussion, since socialist error, as shown in the recent revolution, can be found in the mass of the nation, in the heart of the reaction itself, and even in the parliamentary majority of which at most (only) 50 Deputies were completely free of (any taint of) socialism, 1966 which was very apparent among some of them, mixed or latent among the others, but dangerous in all of them. We should mention that these claims, supported by M. Coquelin, did not receive general approval (at the meeting).
M. Joseph Garnier also replied to M. Gabriel Lafond's (claim about) "Perfidious Albion", that far from having inspired the emancipation of the slaves, it had been defeated by the religious people of England, the same people who had made an alliance with the Leaguers on the question of free trade, 1967 the same people who are joining with those who are concerned with the questions of financial reform, colonial reform, and disarmament, and in proclaiming equality they have thought nothing about the interests of the colonies, but the interests of humanity, as when they proclaim "Let the colonies die rather than the Gospel!"
M. Natalis Rondot 1968 had already replied to M. Gabriel Lafond on the subject of the maritime (strong) points occupied by the English, that he had been able to judge for himself when he travelled to China (in 1843), a view which was shared by other sailors, how useful it was that England had taken (control) of several waterways around the world, as one was thus assured of getting protection which other nations would not have established without its (help).
M. (Louis) Wolowski thought that one mustn't confuse "improving socialism" and "plunderous socialism," 1969 against which one had to always have an armed force at the ready. He saw the possibility of only a partial disarmament, and furthermore that England did not appear to him to be the only nation one could imitate. It was also from the North that fear must come … 1970
It seems to us that is is unfortunate that M. Wolowski gave the name of "socialism" to (the) aspirations for progress, while one should, scientifically speaking at least, reserve this name for the actions of those who, knowingly or not, by using argument or force, want to move towards communism. There is some danger (here) of making a pact with the devil. Concerning the matter of disarmament, one could point out to the Honourable Representative of la Seine (Wolowski) that, given the fact that France was the most bellicose and most feared people in Europe, it is she who should provide the example. And England should do likewise with its Navy. Someone really has to take the first step.
After M. Wolowski, the Honourable M. de La Farelle, 1971 a corresponding member of the Institute and former Member of the Chamber of Deputies, very succinctly resumed the discussion and asked if the solution could not be found in a better organisation of armies, an organisation which at the same time would borrow from the system of voluntary enlistment of the English (to provide) (armed) forces to defend against the dangers from abroad, and from the Prussian system of the Landwehr 1972 (to provide) armed forces to confront domestic dangers. M. de Colmont, 1973 former Secretary General of the Ministry of Finance, supported M. de La Fa Farelle and expressed the opinion that it was a matter of (finding) a better foundation for the "recruitment tax". 1974
As the evening was drawing to a close end, M. Raudot, 1975 Representative of Saône-et-Loire, only wanted to add a few words to say that he thought that society and its official representatives, himself included, were more mired in the detours of socialism than they realised. (Laughter broke out at this moment from one of the corners of the table, when a Member of the Society, a former Minister, related how M. Raudot himself was considered to be a socialist by the supporters of centralisation, to which M. Raudot had publicly responded by correctly making several criticisms of communism.) Furthermore, M. Raudot said that one shouldn't forget when we were busy reorganising the armed forces that the arming of all the citizens in order to get public peace was an illusion. When all the citizens were armed, the troublemakers were also armed, and then it would be necessary, in order to keep a close eye on the population which had arms, to have (an even) more numerous regular militia in order to keep a close eye on the population which did not (have arms). This was a violation of the grand principle of the division of labour.
1946 Horace Say had accompanied Bastiat on a brief trip to England in October when Bastiat may have been acting unofficially for the French government to sound out Richard Cobden about the possibility of disarmament talks with the English. See the Editor's Introduction to his "Speech on Disarmament" (Aug. 1849), above, pp. 000.
1947 François-Eugène-Gabriel, duc d'Harcourt (1786-1865) served briefly in the military in the early years of the Restoration before resigning in order to support the Greek struggle for independence from Turkey. He was elected to represent Seine-et-Marne in 1827 and supported the liberal opposition to Charles X. Under the July Monarchy he was appointed ambassador to Madrid, was active in the reform of secondary education, and was a supporter of free trade. Because of his speeches on behalf of free trade in the Chamber and because of his social and political contacts he was appointed president of the Free Trade Association when it was founded in 1846. During the Second Republic he was appointed ambassador to Rome by Lamartine.
1948 Alexandre-François-Auguste Vivien (1799-1854) was a lawyer, a member of Thiers' liberal group Société de la Morale Chrétienne, and was elected a Deputy representing l'Aisne in 1833. He was the Minister for Justice and Religion in the second government of Thiers in 1840 and was appointed to the Academy of Moral and Political Sciences (Legislation) in 1845. During the Second Republic he was elected a Deputy representing l'Aisne in April 1848, voted with the conservative right, and was appointed to the Committee which supervised the drawing up of the new constitution. He was briefly appointed Minister of Public Works in late 1848 before Louis Napoléon took power. He resigned after Louis Napoléon's coup d'état in December 1851. He wrote several articles for the JDE and a book Études administratives (Paris: Guillaumin, 1845).
1949 See the glossary entry on "Faucher."
1950 Antoine Auguste Walras (1801-1866) was a professor of rhetoric, philosophy, and literature who also wrote on economics. He taught economics at the college of Évreux from 1832 and then at the Athénée in Paris in the 1830s. Guillaumin published his book on Théorie de la richesse sociale (Theory of Social Wealth) in 1849. He is best known as the father of Léon Walras (1834-1910) one of the founders of the Marginalist School of economics.
1951 Victor Destutt de Tracy (1781-1864) was the son of the Ideologue and economist Antoine Destutt de Tracy, an army officer, and then politician. He was a supporter of General Lafayette during the Restoration and elected a Deputy representing Moulins from 1826-1848. During the July Monarchy he was active in liberal causes such as the abolition of the death penalty and the abolition of slavery, being one of the founders and then President of the French Society for the Abolition of Slavery in 1834. During the Second Republic he voted with the conservative right and was appointed Minister of the Navy and Colonies in Odilon Barrot's government. He was elected again in May 1849 but resigned from politics after Louis Napoléon's coup d'état of December 1851.
1952 See the Glossary on "Passy."
1953 Louis-Jacques-Marie Fournier (1786-1862) was a businessman with interests in the Antilles and Marseilles, a member of the Chamber of Commerce, and in May 1849 was elected Deputy representing Bouches-du-Rhône. He voted with the conservative right.
1954 Jules Dupuit (1804-1866) was an engineer and a political economist who wrote on the economics of public works. He trained at the École polytéchnique (1822) and rose to become the chief engineer of the Corps des ponts et chaussées (the Bridges and Roads Department) where he worked on the design and building of roads and the sewers of Paris. He wrote several articles in the DEP on roads, highways, and transport matters.
1955 Jules Dupuit, "De la législation actuelle des voies de transport; nécessité d'une réforme basée sur des principes rationnels," JDE, T. 23, N° 99, 15 juin 1849, pp. 217-31.
1956 Bastiat uses here the word "duperie" (trickery, fraud) which he had used frequently in his Economic Sophisms and his theory of plunder to criticise tariffs and subsidies.
1957 Gabriel Pierre Lafond de Lurcy (1802-1876) was a French navigator and explorer who spent much time in Latin America, Asia, and the Pacific during the 1820s and 1830s, on occasion working with Simon Bolivar and José de San Martín in their struggle for independence from Spain. After returning to Paris he set up companies to encourage trade with South America and the Pacific. He was awarded the Legion of Honor in 1845.
1958 Jules Dumont d'Urville (1790-1842) was a naval officer and explorer who in the 1820s explored New Guinea, New Zealand, Tonga, and other Pacific islands in his ships the Astrolabe and the Zélée. In the late 1830s he set out to explore Antarctica for which he was strongly criticised by the astronomer François Arago. Ironically for an explorer who took risks, he died in 1842 in the first large French railway crash with his wife and young child.
1959 The overthrow of the July Monarchy in which Dunoyer had a high position as Councillor of State turned him in a more conservative direction. He supported the use of the army to repress the June Days uprising in 1848 and in 1849 wrote an angry book in which he attacked what he called "demogogic socialism." See, Charles Dunoyer, La Révolution du 24 février (Paris: Guillaumin, 1849).
1960 One of the organisers of the Peace Congress in August 1849 in Paris. See the glossary on "Garnier."
1961 The First Schleswig War (1848-1851) was fought between Denmark and Prussia over control of the Duchies of Schleswig and Holstein after the death of the Danish King Christian VIII left no heir acceptable to the German Confederation. Denmark won but was decisively defeated in the Second Schleswig War of 1864.
1962 The First Italian War of Independence (1848-1849) was fought between the Kingdom of Sardinia and the Austrian Empire. Under the command of General Joseph Radetzky the Austrians reasserted control of the break away kingdom.
1963 The 1848 Revolution in the Kingdom of Hungary grew into a war for independence from the Austrian Empire. After a series of defeats in 1849 the young Emperor Franz Joseph I called upon Russian assistance under the terms of the Holy Alliance which came out of the defeat of Napoléon in 1815. Czar Nicholas I sent an army of more than 200,000 men and with the assistance of the Austrian Empire defeated the Hungarian independence movement.
1964 info ???
1965 In his speech at the Paris Peace Congress Bastiat linked expenditure on war and the military, with the need for high taxation (especially indirect taxation), which impoverished the workers and drove them towards revolution to seek relief. See"Disarmament, Taxes, and the Influence of Political Economy on the Peace Movement" above, pp. 000.
1966 In the Legislative Assembly elected on 13 May 1849 there were 780 Deputies who were divided between "the party of Order" (monarchists and Bonapartists) (500), the extreme left ("Montagnards" or democratic socialists) (200), and the moderate republicans (80). Bastiat and the other economists usually voted with the moderate republicans. See the glossary entry on "The Chamber of Deputies."
1967 The English phrase "free trade" is used.
1968 Cyr-François-Natalis Rondot (1821-1900) was an industrialist in the textile business, a member of the Chamber of Commerce of Lyon, an economist, and art historian. As a young man he went to China, South East Asia, and Africa in 1843 to negotiate treaties of commerce on behalf of the Chamber of Commerce of Rheims. In 1848 he co-authored with Léon Say a major inquiry into manufacturing in the city of Paris for the Paris Chamber of Commerce. He retired from industry in 1869 to write on art and art history.
1969 Or what he termed "le socialisme d'amélioration avec le socialisme spoliateur."
1970 Wolowski's meaning is not clear here.
1971 François Félix de Lafarelle (1800-1872) was a magistrate during the Restoration and a Member of the Academy of Moral and Political Sciences. He was elected a Deputy representing Gard from 1842 to 1848. Guillaumin published his book on Du progrès social au profit des classes populaires non indigentes (1847) and he wrote several articles for the JDE.
1972 The Prussian Landwehr or citizen's militia was created in 1813 to defend the country from Napoleon's tropps. All men between the ages of 18 and 45 not in the regular army were liable for call up. After 1815 the Landwehr was fully integrated into the Prussian army until reforms of 1859 made them part of the reserves.
1973 See the glossary entry on "Saint-Julle de Colmont (1792-??)."
1974 He means by "l'impôt du recrutement" the conscription of young men into the French army. Bastiat made the same point in his Peace Congress speech that conscription was a "tax" on the poor.
1975 See the glossary entry on "Claude-Marie Raudot (1801-1879)."
T.319 "Speaks in the Assembly on the Right to Form Unions" (16 Nov. 1849)↩
SourceT.319 [1849.11.16] "Speaks in the Assembly on the Right to Form Unions" (16 Nov. 1849). Brief remarks on the right to form unions on eve of his major speech the next day. CRANL, vol. 4, p.501. [Not in OC. DMH.] [CW4]
Editor's IntroductionThis is the 12th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
Bastiat has the floor in the Assembly to give a major speech on the right to form trade unions. There is a procedural dispute over whether or not there are enough Deputies in the Chamber for a speech to be given and the President of the Assembly is interrupted by calls from socialist Deputies for a count of heads to see if there is a quorum. Bastiat begins his speech but is interrupted again from someone on the Left forcing the President to consult with his officials. They cannot decide with certainty that there are enough Deputies in the Chamber so the President postpones Bastiat's speech to the following day when he does give it. It can be found in CW2, "The Repression of Industrial Unions," pp. 348-61.
Earlier in the evening the President of the Chamber had opened discussion for the Second Reading of a Proposal concerning the Repeal of Articles of 414, 415, 416 of the Penal Code which banned the formation of trade unions. 1976 Deputy Louis Wolowski, 1977 who was also a member of the Political Economy Society, made a point of order about how late it was for a discussion of such an important topic to begin and asked for an adjournment. This was denied. The floor was then given to another member of the Society, M. Morin (representing La Drome) 1978 who gave a long and impassioned speech in defence of the right to associate and to form unions with only one condition attached, namely that no intimidation or violence could be involved (pp. 497-99).
He was followed by the conservative judge M. de Vatimesnil, 1979 the Secretary of the Committee which had drawn up the bill for the Assembly, who gave an equally impassioned speech (pp. 499-500) on how dangerous any trade union was, how they were wrong in themselves even if no violence was involved in their formation, and that any industrial union inevitably leads to "political unions" (or parties) which must be banned. It was at the end of Vatimesnil's speech that the disruptions began and there were increasing calls for a count of heads and postponement of the proceedings until the next day. This is when Bastiat takes the floor briefly.
What makes this short speech interesting is Bastiat's definition of the word "coalition" (union) and the interruptions he had to put up with before he could finally give his speech.
TextM. President. 1980 M. Bastiat has the floor.
M. Frédéric Bastiat. I would like to point out to the Assembly the handicaps faced by those who would like to defend the freedom to form unions after the speech you have just heard, and the very enlightening speech which M. de Vatimesnil gave at the First Reading (of the Bill). Now he comes before us bringing numerous facts taken from documents which are in the Library, when two amendments are presented which have neither been distributed nor printed and about which we have no knowledge, and at such an advanced hour in the proceedings.
Several Deputies : Adjoin until tomorrow! (No! No!)
M. Frédéric Bastiat. I am under the orders of the Assembly, but I think that the discussion of a question as serious as this and which cannot be treated lightly, would benefit considerably if I were permitted to postpone my remarks until tomorrow.
M. President. The Assembly just made its decision, it cannot change it right now.
M. Frédéric Bastiat. In that case, I will limit my myself to these extremely short observations, since I cannot get to the root of the question. Messieurs, what are we dealing with here? (Noting more than) creating or revising the Articles of the Penal Code. As a result, we will be occupied in examining what is or what is not a crime. The Honourable Secretary (of the Committee, Vatimesnil) has always and endlessly reasoned as if it were a point of law, a matter of well established fact, that a union, by its very existence, is a crime.
I am completely opposed to this way of thinking. The word "union" (coalition), for example, carries with it the idea that there is no crime. The word "union" can only be translated by many other similar words, such as association, combination, agreement, acting in concert. Thus it is not the union itself which is the crime, for it it were, then (any) coalition would always be a crime, no matter to what purpose it had. Associations formed to do charitable works would (then) be crimes.
(Objections from the Chamber.)
A voice from the Left . We don't have a quorum!
M. President. If you want to interrupt the discussion to find out if we have sufficient numbers I will consult the Rules Committee which is the sole judge in this case. (Yes! Yes!)
(M. President consults with the Secretaries of the Rules Committee.)
M. President. The Rules Committee is not unanimous on the question of whether or not we have sufficient numbers in the Assembly. ...
[The Assembly is eventually adjourned.]
1976 CRANL, vol. 4, pp. 497 ff.
1977 See the glossary entry on "Wolowski."
1978 Étienne François Théodore Morin (1814-1890) was a politician who was a member of the General Council of the Canton of Dieulefit in 1846, the mayor of Dieulefit in 1847, and elected Deputy of la Drôme 1848-1870. In the Second Republic he voted with the conservative right.
1979 Antoine François Henri Lefebvre de Vatimesnil (1789-1860) was the Advocate General of the Cour de Cassation (Supreme Court), a Councilor of State, and the first Minister of Eduction and Religion in 1828-29. He was a Deputy representing du Nord 1830-34 and a Deputy representing l'Eure 1849-1851. He resigned from politics following Louis Napoléon's coup d'état in December 1851.
1980 André-Marie Dupin (1783-1865) was President of the Legislative Assembly between June 1, 1849 and December 2, 1851.
T.243 (1849.11.17) "Speech on The Repression of Industrial Unions"↩
SourceT.243 (1849.11.17) "The Repression of Industrial Unions" (Coalitions industrielles). Speech given in the Legislative Assembly on 17 Nov. 1849. [OC5, pp. 494-512.] [CW2.17, pp. 348-61.]
Editor's Note[to come]1
Text17: The Repression of Industrial Unions
Citizen Representatives,
I come to support the amendment of my honorable friend M. Morin; but I cannot support it without also examining the commission’s draft. It is impossible to discuss M. Morin’s amendment without involuntarily, so to speak, entering into the general discussion, and this obliges us to discuss the commission as well.
In effect, M. Morin’s amendment is more than a modification of the principal proposal; it compares one set of arrangements with another, and we cannot come to a decision without doing this comparison.
Citizens, I am not bringing any partisan spirit to this discussion, nor any preconceived ideas based on class, and I will not speak to enflamed feelings. In any case, the Assembly can see that my lungs cannot battle with parliamentary storms; I need its most benevolent attention.
To help our understanding of the commission’s proposals, allow me to [349] recall a few words by the honorable recorder, M. de Vatismenil. He said, “There is a general principle in Articles 44 et seq. of the penal code, and it is this: A union, either between employers or between workers, constitutes a misdemeanor on one condition, which is that there should have been an attempt at executing it, or the actual start thereof.” This is what the law says and it answers immediately the observation made by the honorable M. Morin. He has told you, “Workers will not be able to get together therefore and meet their employer to discuss honorably with him (this is the expression he used), to discuss honorably with him the subject of their wages!”
“Pardon me, but they will be able to meet,” added M. de Vatismenil. “They will absolutely, either by all coming together or by appointing committees to negotiate with their employers. There is no difficulty with this; the misdemeanor, according to the terms of the Code, begins only with an attempt to set up the union or the actual start of its activities, that is to say, when, after having discussed the conditions and in spite of the spirit of conciliation that employers, in their own interest, always bring to this type of affair, the workers tell them, ‘But, after all, since you are not going to give us all we are asking, we are going to withdraw and, through our influence, influence that is well known and that is based on the identity of interest and comradeship, we are going to persuade all the other workers in other work-places to stop work.’”
After reading this, I ask myself where the misdemeanor lies, for in this Assembly, I consider that there cannot be what might be called a systematic majority or minority on a question like this. What we all want is to stop misdemeanors. What we are all seeking to achieve is not to introduce into the Penal Code fictitious and imaginary misdemeanors in order to have the pleasure of punishing them.
I ask myself where the misdemeanor lies. Does it lie in the union, in the stoppage of work, or in the influence to which allusion is made? It is said that it is the union itself that constitutes the misdemeanor. I admit that I cannot accept this proposition since the word union is synonymous with association. It has the same etymology and the same meaning. When you disregard the aim, it sets itself and the means it employs; union cannot be considered a misdemeanor, and the recorder himself senses this, since when replying to M. Morin, who asked whether workers could discuss wages with employers, the honorable M. de Vatismenil said, “They certainly will be able to; they will be able to present themselves individually or all together and to appoint committees.” Well, to appoint committees they certainly need to [350] agree, to act in concert, and to associate; they have to form a union. Strictly speaking, the misdemeanor therefore does not lie in the very fact of the union.
Nevertheless, some people would like to see it that way, then say: “There must be a start of operations.” But can the opening operations of an innocent action make this action guilty? I do not think so. If an action is wrong in itself, it is clear that the law can move against it only if operations have begun. I will even say: “It is the opening of operations that causes the action to exist.” Your language on the other hand amounts to this: “To look is a misdemeanor, but it becomes a misdemeanor only when someone starts to look.” M. de Vatismenil himself acknowledges that we cannot look for the thoughts that inspire guilty actions. Well, when an action is innocent in itself and is manifested only in innocent facts, it is clear that such an action is not incriminating and can never change its nature.
Now what is meant by the words, “start of operations”?
A union may reveal itself, may start operating in a thousand different ways. No, we are not concerned with these thousand ways; we are concentrating on the stoppage of work. In this case, if it is the stoppage of work that is necessarily the start of the union’s operations, then you have to say that the stoppage of work is of itself a misdemeanor; let us therefore punish the stoppage of work and say that the stoppage of work will be punished. Whoever refuses to work at a rate that does not suit him will be punished. If this is so, then your law will be sincere.
But are there any consciences able to accept that the stoppage of work in itself, independently of the means used, is a misdemeanor? Does a man not have the right to refuse to sell his work at a rate that does not suit him?
The answer will be given that this is true when it concerns an individual, but not true when it concerns a group of men in association.
But, sirs, an action that is innocent in itself does not become criminal because it is multiplied by a certain number of men. When an action is wrong in itself, I can see that, if this action is carried out by a certain number of individuals, it can be said that there has been aggravation; but when it is innocent in itself, it cannot become guilty because it is carried out by a large number of individuals. I cannot therefore see how it can be said that the stoppage of work is a guilty act. If one man has the right to say to another, “I will not work under such and such a condition,” two or three thousand men have the same right; they have the right to withdraw. That is a natural right which ought to be a legal right as well.
[351]However, people want to add a veneer of guilt to the stoppage of work, so how are they going to manage it? The following words are slipped into parentheses, “Since you are not giving us what we ask, we are going to withdraw our labor; we are going to act through influences that are well known and that stem from the identity of interests and comradeship. . . .”
This then is the crime; it is the influences that are well known, it is violence and intimidation; there lies the crime, and it is there that you should attack. Indeed, it is there that the amendment of the honorable M. Morin attacks. How can you refuse him your votes?
But then another chain of reasoning is brought before us, which says the following:
“The union includes the two characteristics that enable it to be classified as a crime. Union in itself can be condemned and it then produces disastrous consequences, disastrous for the worker, for the employer, and for society as a whole.”
First of all, the fact that the union can be condemned is exactly the point on which we disagree, the point that needs to be proven, quod erat demonstrandum. It can be condemned depending on the aim it sets itself and especially depending on the means it employs. If the union limits itself to the force of inertia or passivity, if the workers act in concert, have reached an agreement, and say, “We do not want to sell our product, which is labor, at such and such a price; we want such and such an amount, and if you refuse we will go home, or seek work elsewhere,” it seems to me that it cannot be said that this is an action that can be condemned.
However, you claim that it is disastrous. Here, in spite of all the respect I profess for the talent of the recorder, I believe that he has embarked on an avenue of reasoning that is at least highly confused. He says, “The stoppage of work damages the employer, as it is troublesome for an employer if one or more of his workers withdraw their labor. It damages his business with the result that the worker undermines the freedom of the employer and consequently infringes Article 13 of the Constitution.”
In fact, that is a total reversal of ideas.
What! I am standing before an employer, we discuss the price, the one he is offering me does not suit me, I commit no act of violence and withdraw, and you tell me that it is I who am undermining the freedom of the employer because I am damaging his business! Take care lest what you are proclaiming is none other than slavery. For what is a slave if not a man obliged by law to work under conditions that he rejects? (On the left: Hear! Hear!)
[352]You ask the law to intervene because it is I who am violating the property of the employer. Do you not see that, on the contrary, it is the employer that is violating mine? If he calls upon the law to ensure that his will is imposed on me, where is freedom or equality? (On the left: Hear! Hear!)
Do not tell me that I am mutilating your argument, for it is contained in its entirety in the report and in your speech.
You then say that when the workers form a union they harm themselves, and you use this basis to say that the law should prevent the stoppage of work. I agree with you that in the majority of cases, the workers do themselves damage. But it is precisely for this reason that I want them to be free, since freedom will teach them that they are damaging themselves, whereas you want to draw the conclusion that the law must intervene and shackle them to the workshop.
However, you are setting the law on a road that is very wide and extremely dangerous.
Every day, you accuse the socialists of wanting to have the law intervene in all circumstances and wanting to remove personal responsibility.
Every day, you complain that, wherever there is misfortune, suffering, or pain, people constantly call upon the law and the state.
For my part, I do not want the law to be able to say to a man who stops work and consequently consumes part of his savings, “You must work in this workshop even though you have not been granted the price you are asking for.” I do not accept this theory.
Last, you say that he is damaging society in its entirety.
There is no doubt that he is damaging society, but the same reasoning applies. A man considers that by ceasing to work he will obtain a better rate of pay in eight or ten days’ time. Doubtless this is a loss of output for society, but what do you want to do? Do you want the law to remedy everything? That is impossible; we would then have to say that a trader who is waiting for a better time to sell his coffee or sugar is damaging society. We would then have to be calling upon the law and the state incessantly!
One objection was made to the commission’s draft that I believe was treated very lightly, too lightly for such a serious subject. It was said: “What is this all about? There are employers on the one hand and workers on the other; it is a question of settling wages. Obviously what is desirable is that, since wages are settled by the free play of supply and demand, demand and supply should be as free or, if you wish, as constrained as each other. There are only two ways for this to happen: either we should leave unions perfectly free, or we should abolish them entirely.
[353]An objection is made to you, and you agree with it, that it is perfectly impossible for your law to keep an equitable balance, that since the unions of the workers are constantly being formed on a grand scale and in broad daylight, they are easier to detect than the associations of employers.
You admit the difficulty, but you also add, “The law does not pay attention to such details.” I reply that it ought to do so. If the law can repress an alleged crime only by carrying out the most flagrant and enormous injustices against an entire class of workers, then it needs to pay attention. There are a thousand similar cases in which the law has indeed paid attention.
You yourself admit that, by dint of your legislation, supply and demand are no longer equal players since a union of employers cannot be prosecuted, and it is obvious why: two or three employers have lunch together and form a union, and nobody knows anything about it. A workers’ union will always be detected because it is formed in broad daylight.
Since the one escapes your law while the other does not, its inevitable result is that supply is affected where demand is not and, insofar as it acts, it alters the natural level of earnings systematically and continuously. It is this that I cannot approve. I say that since you cannot draft a law that applies equally to all relevant interests, and since you cannot treat them equally, leave them their freedom, which subsumes equality.
But while it was not possible to achieve equality in the commission’s draft, is it at least theoretically possible? Yes, and I believe, indeed I am certain, that the commission has made a great effort to achieve at least apparent equality. It has, however, not yet succeeded, and to be convinced of this you need only compare Article 414 with Article 415, the one relating to the employers with the one relating to the workers. The first is excessively simple; no mistake can be made. Both the law when it prosecutes and the delinquent when he defends himself will be perfectly aware of what they are doing.
“The following will be punished: 1. Any association between those who give employment to workers that tends to force wages down, if there has been an attempt at such or if such a process has begun.”
I draw your attention to the word force, which gives great latitude to employers to defend themselves. They will say: “It is true that two or three of us have had a meeting. We adopted measures to bring about a decrease in earnings, but we have not tried to force this through.” This is a very important word, which is not found in the following article.
In fact, the next article is extremely elastic; it does not include just one fact, it includes a huge number of them.
“Any union of workers in order to stop work at the same time, to prohibit [354] work in the workshops, to prevent anyone from entering them before or after certain times and in general to suspend, prevent, or make work more expensive (the word force is absent), if there is an attempt at such or if such a process has begun, etc.”
And if it were said that I am finding fault with the use of the word force, I would call the commission’s attention to the importance that it itself gave to this word. (Murmurs.)
The right is not allowing silence. When correct things are being said, they always interrupt. Tell us a story and you will be listened to.
In its wish to achieve a certain equality, at least theoretically, since it is impossible in fact, the commission had two avenues it might have taken with regard to the expressions unjustly and abusively contained in Article 414.
Obviously they had either to delete these words, which open a wide breach for the defense of employers from Article 414, or they had to include them in Article 415 to offer the same opportunity to workers. The commission preferred to delete the words unjustly and abusively. On what did it base this decision? It based its decision precisely on the fact that, immediately after these words came the verb force and this word is underlined five times on just one page of its report, which proves that it attached great importance to it. Indeed it expressed itself very categorically on this, in the following terms:
“When a set of measures contrary to the law has been established to force a decrease in earnings, it is impossible to justify it. An event of this nature is of necessity unjust and an abuse, for to force earnings down is to produce a decrease which is not the result of the circumstances of the industry concerned and of free competition, but rather the outcome of a pact as illegal as it is contrary to humanity. It thus follows that the use of the words unjustly and abusively is contrary to common sense.”
Thus, how has the deletion of the words unjustly and abusively been justified? By the claim that their use constituted a pleonasm; the word force replaces all of this.
However, sirs, in the case of the workers, the word force was not included, so that the workers from now on do not have the same opportunity to defend themselves. All that is now stated is that they may not increase earnings, with nothing now said about unjustly or abusively forcing them up. Here again there is a fault, at least in the drafting, and an inequality that is grafted on to the much more serious inequality of which I spoke just now.
Such, sirs, is the commission’s approach, one that in my view is faulty in [355] every respect, faulty in theory and faulty in practice, a system that leaves us in total uncertainty as to what constitutes the offence. Is it the union, is it the stoppage of work, is it the abuse, or is it force? We do not know at all. I challenge anyone, the most logical of minds, to see where impunity begins or ends. You say to me, “The union is criminal. However, you may appoint a committee.” I am not sure, though, that I can appoint a committee and send delegates to it when your report is full of considerations according to which the union is the very essence of the offence.
The next thing I want to say is that, in practice, your law is full of inequalities; it does not apply exactly and proportionally to both parties whose antagonism you wish to remove. This is a singular way to remove antagonism between two parties: treating them in an unequal manner!
As for M. Morin’s proposal, I will not spend much time on it. It is perfectly clear and perfectly lucid. It is based on an unshakeable principle, one accepted by everyone: freedom of action and repression of abuses. No intelligent mind would fail to support such a principle.
Ask the first person you see, whoever you like, whether the law is unjust or partial when it is content to repress intimidation and violence. Everyone will tell you that these are real crimes. Besides, the laws are drafted for the ignorant as well as for scholars. The definition of a misdemeanor must persuade the intelligent, it must satisfy every conscience; when the law is read, people should say: “Yes, that is a crime.” You talk about a respect for the law; this is an integral part of respect for the law. How do you expect a law that is unintelligent and unintelligible to be respected? That is impossible. (Approval from the left.)
What is happening here, sirs, appears to draw importance from the perfect analogy between what has happened in another country, England, of which M. de Vatismenil spoke yesterday and which has such great experience of unions, conflict, and difficulties of this nature. I believe that this experience is worth consulting and bringing to the rostrum.
Mention has been made of the numerous and formidable unions that have come into being since the abrogation of the law or laws, but you have heard nothing of those that took place before. These unions should have been mentioned as well, since in order to evaluate the two systems the systems have to be compared.
Before 1824,2 England was ruined by so many unions, which were so terrible [356] and forceful, that this scourge gave rise to thirty-seven statutes in a country in which, as you know, antiquity is, so to speak, part of the law, and in which even absurd laws are respected solely because they are ancient. The country must have been very worried and tormented by this evil for it to have decided to pass thirty-seven statutes, one after the other, in a very short space of time, each more forceful than the last. Well then! What happened next? They did not manage to contain the evil, which continued to worsen. One fine day, they said: “We have tried very many approaches and thirty-seven statutes have been passed. Let us try to see whether we might succeed through very simple means, justice and freedom.” I would like this reasoning to be applied to a great many questions, and we would find that their solution is not as difficult as we think; but in the end on this occasion, this reasoning was formulated and acted upon in England.
Thus, in 1824 a law was effected on the basis of Mr. Hume’s proposals, proposals that resembled closely those advocated by MM Doutre, Greppo, Benoît, and Fond.3 It was for the complete and total abrogation of what had hitherto existed. Justice in England found itself disarmed when faced by unions, even against violence, intimidation, and threats, facts that, however, are aggravating to the union. To such behavior one can apply only laws that relate to threats and the accidental skirmishes that take place in the streets. So one year later, in 1825, the minister of justice requested a special law that would leave unions totally free but increase the penalty incurred for ordinary violence; that in a nutshell is the whole basis of the 1825 law.
Article 3 says: “Anyone who, through intimidation, threats, or violence, etc. . . . will be punished by imprisonment and a fine, etc., . . .”
The words intimidation, threats, and violence return in each sentence. The word union is not even mentioned.
There then follow two other extremely remarkable articles, which would probably not be accepted in France because they are virtually encompassed in this maxim: anything that the law does not forbid is allowed.
[357]They say: “Those who organize a meeting, those who form a union and who seek to influence the level of wages, those who enter into verbal or written agreements, etc., . . . will not be subject to this penalty.”
In a word, the widest and most complete freedom is expressly granted in it.
I say that there is some analogy in the situation, for what the commission is proposing is the former English system, that of the statutes. The proposal by M. Doutre and his colleagues is the one proposed by Mr. Hume, which abolished everything and which allowed no aggravation for concerted violence, although it cannot fail to be known that violence meditated by a certain number of men offers more danger than the individual acts of violence committed in the street. Last, the proposals made by the honorable M. Morin perfectly match the ones that were effected by the definitive law in England in 1825.
Now you are being told: “Since 1825, England is not at ease in this system.” She is not at ease! But I, for my part, find that you are giving an opinion on this question without going into it in sufficient detail. I have traveled in England several times and have asked a large number of manufacturers about this question. Well then, I can state that I have never met anyone who did not applaud this development and who was not highly satisfied that England in this respect had dared to look freedom in the face. And perhaps it is because of this that later, with regard to many other questions, she dared again to look freedom in the face.
You refer to the union in 1832,4 which in effect was a formidable union, but you have to be careful and not present the facts in isolation. That year, there was a shortage and wheat cost ninety-five shillings a quarter; there was a famine and that famine lasted several years. . . .
I referred to the union in 1842.
There was a famine in 1832 and another, more severe one in 1842.
I spoke about the union in 1842.
My argument applies even more strongly to 1842. What happens in years of shortage like these? The income of nearly all the population is used to buy the things necessary for their subsistence. Manufactured products are not bought, the workshops have no work, and a great many workers have to be laid off; there is competition for work and earnings are reduced.
Well then, when earnings suffer a significant decrease at the same time that there is a dreadful famine, it is not surprising that in a country with total freedom unions are formed.
This is what happened in England. Was the law changed for this reason? Not at all.
The causes of the unions were seen, but they were braved out. Threats and violence were punished wherever they occurred, but nothing else was done.
You have been presented with a terrible picture of these associations and it has been said that they tend to become political.
Sirs, at the time of which I am speaking, a major question was being debated in England, and this question was being inflamed still further by circumstances, the dearth. There was conflict between the industrial population and the landowners, that is to say the aristocracy, who wanted to sell wheat as expensively as possible and, to do this, prohibited foreign wheat. What happened? The unions, which were recently jokingly called trades unions and which enjoyed freedom of union, saw that all the efforts made by their unions had not succeeded in raising the level of wages.5
Which is a bad thing.
You say it is a bad thing. On the contrary, I say that it is a very good thing. The workers saw that the level of earnings did not depend on the employers, but on other social laws, and they said to themselves, “Why don’t our wages rise? The reason is simple; it is because we are forbidden to work for foreigners or at least to receive foreign wheat in payment for our work. We are therefore mistaken in blaming our employers; we ought to be blaming the aristocratic classes, who not only own the land but also [359] make the law, and we will have an influence on earnings only when we have reconquered our political rights.”
Hear! Hear!
Truly, sirs, to find something extraordinary in the conduct—so simple and natural—of the English workers, is almost to bring a protest against universal suffrage in France to this rostrum. (More agreement from the left.)
The result of this was that English workers have learned a great lesson through freedom. They have learned that raising or lowering wages does not depend on the employers; and right now England has experienced two or three very difficult years as a result of potato blight, failed harvests, and the railway mania, and also because of the revolutions that have desolated Europe and closed the outlets for her industrial products. Never had she experienced crises like these. However, there has been not one instance of reprehensible union behavior and not a single act of violence. The workers have abandoned all this as a result of their experience, and this is an example to bring before our country and to meditate on. (Approval from the left.)
Last, there is one consideration that strikes me and that is more important than any of this. You want the laws to be respected, and you are very right in this, but you should not extinguish in men the sense of justice.
Here are two systems before you, the commission’s and M. Morin’s.
Imagine that alternatively, by virtue of both one and the other system, workers are prosecuted. So here we have workers prosecuted by virtue of the present law on unions; they do not even know what is being asked of them. They believed they had the right, up to a certain point, to form a union and to act in concert, and you yourselves will acknowledge this to some degree. They say: “We have devoured our pay; we are ruined. It is not our fault but that of society, which is ill-treating us, the employers, who are harassing us, and the law, which is prosecuting us.” They come before the courts in a very irritated mood; they project themselves as victims, and not only do they resist, but those who are not being prosecuted also sympathize with them. Young people, ever ardent, and political writers side with them. Do you think that this is a very flattering or favorable position for justice in our country?
On the other hand, prosecute workers on the basis of M. Morin’s proposals. Bring them before the court and let the public prosecutor say: “We are not prosecuting you because you have formed unions, you were perfectly free to do so. You have asked for an increase in wages and we have said nothing. [360] You have acted in concert and we have said nothing. You have wished to stop work and we have said nothing. You have sought to act by persuading your comrades and we have said nothing. However, you have used arms, violence, and threats and so we have brought you before the courts.”
The worker whom you prosecute will bow his head because he will realize his wrong and will acknowledge that the justice of his country has been impartial and just. (Hear! Hear!)
I will end, sirs, with another consideration, which is this:
In my view, there is now a host of heated questions among the working classes on the subject of which, I am deeply and intimately convinced, the workers are making a mistake, and I draw your attention to this point. Whenever a revolution breaks out in a country in which there are a series of classes one above the other and in which the top class has arrogated to itself certain privileges, it is the second in rank that reaches the top; it naturally invokes the feelings of right and justice to gain help from the others. The revolution is carried out, and the class that was second in line reaches the top. Most oft en it does not take long to build up privileges for itself. This happens for the third in line and then the fourth. All this is odious, but it is always possible as long as there is a class below that can bear the costs of the privileges that are being disputed.
However, it so happened that in the February revolution it was the entire nation, the entire people, right to the very lowest of its masses, that has been able or that may be able to govern itself, through elections and universal suffrage. And then in a spirit of imitation, which I deplore but which I think is somewhat natural, the people thought that it might cure its grievances by also establishing special privileges for itself—since I consider the right to credit, the right to work, and many other such claims as privileges in the proper sense of the word.6 (Murmuring.)
And in fact, sirs, they might be granted if beneath them or within reach of them there were another class even more numerous, three hundred million Chinese, for example, who could bear the cost. (Approving laughter.) [361] But this does not exist. Therefore, every privilege will have to be paid for by the men of the people, without any possible profit to themselves, through a complicated system and, on the contrary, by suffering all the losses caused by the system.
So the Legislative Assembly may be called upon to combat these claims to privilege, which should not be treated too lightly since, after all, they are sincere. You will be obliged to struggle. How will you struggle advantageously if you reject the working class when they are asking only for something that is reasonable, when they are purely and simply asking for justice and freedom? I believe that you will gain great strength by proving your impartiality here. People will listen to you more and you will be regarded as the tutors of all the classes, and in particular this class, if you show yourselves to be totally impartial and just toward it. (Lively approval from the left.)
To sum up, I reject the commission’s draft because it is just an expedient, and the character of any expedient is weakness and injustice. I support M. Morin’s proposal because it is based on a principle, and only principles have the power to satisfy people’s minds, to win over their hearts, and to unite all serious minds. We have been asked: “Do you wish then to proclaim freedom to satisfy a platonic love of freedom?” For myself, I reply: “Yes. Freedom may cause a few problems for nations but freedom alone will enlighten them, raise them up, and improve their moral life. Without freedom there is only oppression and, mark well, you friends of order, that the time has passed, if ever it existed, when the union of classes, a respect for law, the security of interests, or the tranquillity of peoples could be based on oppression.”
Endnotes(Paillottet’s note) Articles 413, 415, and 416 of the penal code punished unions between employers and those between workers, though in a very inequitable way. [Paillottet may be mistaken here, as Bastiat refers to Article 414, not 413, in the course of his speech.] A proposal to abrogate these three articles had been sent back by the Legislative Assembly for examination by a commission [presided over by M. de Vatismenil] that judged the abrogation inadmissible and considered that it was essential to maintain the repressive dispositions, while amending them to make them impartial.
This aim, it is fair to say, was not achieved by the amendments formulated. M. Morin, a manufacturer and representative for the Drôme, convinced that the only basis on which a proper agreement might be established between workers and employers was equality before the law, wished to amend the conclusions of the commission in accordance with this principle. The amendment that he presented was supported by Bastiat during the session on 17 November 1849.
The law of 1800 forbade workers’ unions. They nonetheless developed as secret societies and routinely practiced violent action. Violence increased by 1822, caused by a sharp increase in food prices (43 percent in two years). A parliamentary commission, headed by Joseph Hume, proposed a radical modification authorizing unions but forbidding coercion or violence. The law was enacted in 1824. Unions flourished anew, but some violent demonstrations erupted again in Glasgow, Dublin, and London. A new law was enacted in 1825. It confirmed the freedom of association, but limited it through more specific definitions of offences.
The deputies, all former workers, who put before the Assembly the initial proposal to abrogate Articles 414, 415, and 416 of the penal code (see p. 348, note 1).
As Bastiat notes, many conservatives opposed the right of workers to voluntarily form trades unions (or “labor unions” in American English), but he argued that the right to associate belonged to factory owners as well as to the people who worked in their factories as long as there was no resort to violence by either party. In England, trades unions had been severely repressed until 1824 and were not fully decriminalized until 1867. The 1830s saw several efforts to create a nationwide association of trades unions, the first being the National Association for the Protection of Labour, which was formed in 1830 and which at its peak a few years later had joined together some 150 unions with a combined membership of twenty thousand to thirty thousand. Robert Owen also attempted something similar with his Grand National Consolidated Trades Union in 1834.
This section and the following ones refer to the position of Richard Cobden and the Anti–Corn Law League. See also the entry for “Anti–Corn Law League” in the Glossary of Subjects and Terms.
Bastiat’s pamphlet Capital and Rent (OC, vol. 5, p. 23, “Capital et Rente”) appeared in February 1849 and aroused the anger of the anarchist socialist writer Pierre-Joseph Proudhon, who attacked it vehemently in his journal Le Peuple. Bastiat requested the right to reply to Proudhon’s criticism of an individual’s right to charge interest, and there was a back and forth of articles in the journal until Proudhon suddenly ended the exchange. A short time later Bastiat published the exchange along with a new conclusion by himself in the book Gratuité du crédit (1850) (OC, vol. 5, p. 94, “Gratuité du crédit”).
T.245 "Comments at a Meeting of the Political Economy Society on State Support for popularising Political Economy, his idea of Land Rent in Economic Harmonies , the Tax on Alcohol, and Socialism" (10 Dec. 1849)↩
SourceT.245 (1849.12.10) Bastiat's comments on state support for popularising political economy, his idea of land rent in Economic Harmonies at a Meeting of the PES (Séance de 10 dec. 1849). In "Chronique," JDE, 15 Dec. 1849, T. XXV, pp. 110-112; also ASEP (1889), pp. 91-94. Not in OC. [CW4]
Editor's IntroductionThis is the eighth record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
The topics discussed here included John Prince-Smith's 1981 efforts to spread free market ideas in the German states by translating and circulating copies of Bastiat's works, most notably Protectionism and Communism (Fall 1848), The State (Sept. 1848), Capital and Rent (February 1849), and Damn Money! (April 1849). Bastiat and Marie Raudot 1982 argued that it would be inconsistent for the Society to ask the government to fund measures to spread free market ideas in the state run colleges and the University given their opposition to tax increases, but this was opposed as too rigid and excessively "purist" by Horace Say, Théodore Morin, 1983 and Charles Renouard. 1984 At the end of the meeting the discussion turned to the recently published first volume of Bastiat's Economic Harmonies which was due for release early in the new year. His arguments about land rent as being nothing special but just another example of a service which is being paid for, was challenged by Joseph Buffet, 1985 former Minister of Commerce, Charles Coquelin, Joseph Garnier and Auguste Walras, who defended the traditional view that land had a "special character" which Bastiat could not ignore.
We have combined parts of the ASEP report and that of the JDE to have a more complete picture of what was said at the meeting.
Text:M. (Propser) Paillottet, 1986 the ex-Vice-President of the Industrial Tribunal and a member of the Council for the Promotion of Workers' Associations communicated to the meeting some interesting news.
He informed the Society that an Association for the Dissemination of the Best Writings on Political Economy has been formed in Berlin, which will lead to a real antidote to (the problem of) socialism. He brought to our attention a publication by M. (John) Prince-Smith whom we had the pleasure of meeting at the Congress of Economists held at Brussels in 1847, 1987 and who is one of the supporters of this useful association which we welcome with very great warmth.
M. Prince-Smith, after having (helped) establish this way of better popularising (economic ideas), reminded us of the error of members of the status quo who resort to violence and plunder as the means (to achieve their ends):
Political economy steps in and says: when there are empty stomachs and inactive hands, the hands have to be put in motion in order to satisfy the needs of the stomach. When needs exist, there is no lack of goals for labor; but the means to (undertake) labour may be lacking. Thus, it is necessary that the means of undertaking labor, that is to say capital, increase to the point where there is enough for all hands to be occupied, and that happens better and faster in a natural order.
When property and the right of inheritance are protected by (both) external and internal peace, in the interest of all, we will no longer have any need to maintain an armed force which jeopardises the real interests of the State, and increases the conflicts which are its purpose to restrain by devouring the resources of the people. If the people, if all the classes of the nation, had better understood their common interests, Prussia, to cite only one example, would have been able since "the Peace" (of 1815) to have maintained a sufficient (level) of public force, and at the same time have saved 10 million Thalers per annum, thus we would now have (enough) work tools for a million or more workers, and bread for more than a million families. It is no surprise that bread is lacking in a system which requires the State each year, in order to maintain an unproductive (armed) force, to consume the means of employing at least 100,000 workers' families, and the funds necessary to support a half a million men!
The lack of success of our efforts to improve this situation shows how (much) we are lacking in economic enlightenment, and how important it is for us that its guiding star rise again to lead us to a better future.
In Germany, there have been, until now, practically no popular works of political economy published, or at least they have not been made to feel very welcome. Our association, faithful to the true principles of this science, felt obliged to translate the works of the ingenious M. Bastiat and to get by importing (from abroad) what it couldn't get here either at such a good price or such good quality. Like (all) imports from abroad, by creating a market in our own country, they will develop here the need (for them) which they will soon be able to satisfy. 1988 There is every reason to hope that our national mind, (thus) informed and stimulated by foreign competition, will not take very long to deploy its own forces (in response).
J. Prince-Smith, Director. Berlin, 26 October, 1849.
One can become a member of the Association by agreeing in writing to distribute every year at least 2 Thalers (7 fr. 80c.) worth of pamphlets. It is strongly recommended that several people in the same locality get together to sell and distribute the publications of the Association.
Copies of these various pamphlets, if they are purchased at the same time, are counted as a group and sold at a reduced price, if they reach the set number.
Price of one copy, 2 groschen; for 25 copies, 1 Thaler; for 100 copies, 2 and 1/3 Thalers; that is to say 5 sous, 3 sous, and 2 sous each, according to the quantity purchased.
The pamphlets already published by the Association include some articles published by Bastiat in the Journal des Économistes , and which were then republished under the titles Capital and Rent , Protectionism and Communism , The State , and Damn Money! 1989
After M. Paillottet's report the conversation turned to the difficulties of spreading economic ideas in France. Different views were expressed about efforts to achieve this very desirable result, and the Society asked its officers to explore ways and means (to do so), with the assistance of those members who have the time to devote to this matter.
The discussion not only covered the means of spreading the ideas but also the serious question of principle. Some members, such as M. Bastiat and M. (Marie) Raudot, both elected Representatives of the People, expressed the hope that the Political Economy Society, which advocated the non-intervention of the government in general should not ask it to popularise the principles of economic science, thereby showing itself to be weak and exposing its principles to the dangers of (educational) programs (taught by) government (appointed), university, or (private) monopoly professors. M. Horace Say, a Councillor of State, M. (Théodore) Morin, a Representative of the People, and M. (Charles) Renouard, a Councillor as the Supreme Court (la Cour de cassation), argued against this excessive purity, and thought that, while we were waiting for the freedom of eduction (to be introduced), something which has been desired for so long, it would be useful and wise to make use of the resources of the present organisation of public education and to invite the government to introduce the study of political economy into all its branches. Today, this study is a necessity, not to mention all the kinds of "system thinking" which lie behind Education and the University. As for the difficulties which come from the restrictions placed on (education) programs, a little bit of liberty and independence on the part of the Professors, as well as the all the trouble we would have in finding (some more), we are convinced that they would emerge little by little by themselves as it were, and we would see what has happened more than once, namely the phenomenon of a transformation of the spirit of (government) regulation, whether through ignorance or prejudice, into a true professor of political economy.
At a late hour, when a group of members of the Society had already left, another conversation of great interest was taken up concerning the ideas put forward by M. Bastiat in his last book, entitled Economic Harmonies , 1990 especially concerning the way he treated property in land. M. Bastiat rejected the idea (that rent came from land). He believes and argued that there is never anything else in the market price (of a good) than the value of the services (it provided); and it seems that he means entirely by this word the payment for labour and capital, or the costs of production. M. (Joseph) Buffet, former Minister of Commerce, M. (Charles) Coquelin, 1991 M. Joseph Garnier and M. (Auguste) Walras 1992 put some very lively and insistent arguments to M. Bastiat. M. Buffet, in particular, explained with perfect clarity and a remarkable understanding of the special character of land considered as a means of production, the influence of natural monopolies of the price of goods, and the consequent appearance of rent in several phases of production. But the latter are questions which are too difficult to be treated in the midst of all the interruptions and clashes (which happen) in a conversation. Furthermore, it would be difficult for M. Bastiat to reply completely and convincingly, (even if) he had truth on his side, which for us is still an (open) question.
1981 John Prince-Smith (1809-1874) was born in London, where he worked as a parliamentary reporter before moving to Hamburg in 1828 to write for an English-language newspaper there. While in Hamburg Prince-Smith discovered economics , especially the work of Richard Cobden and Bastiat, and began writing about British economic developments for his German readers. In 1846 he founded a German free-trade association and was elected deputy representing Stettin in the Prussian parliament.
1982 See the glossary entry on "Claude-Marie Raudot (1801-1879)."
1983 See the glossary entry on "Théodore Morin."
1984 See the glossary entry on "Charles Renouard."
1985 Louis Joseph Buffet (1818-1898) was a lawyer and politician. He was elected to the Constituent Assembly in April 1848 and was Minister of Agriculture and Commerce in Odelin Barrot's first government in 1849. He was briefly imprisoned for his opposition to Louis Napoléon but returned to politics towards the end of the Second Empire and served as President of the National Assembly in the Third Republic 1873-75 and was made a Senator for life in 1876.
1986 Prosper Paillottet (1804-78) was a successful businessman in the jewelry industry and was active in the French Free Trade Association. He became a close friend of Bastiat and in his final days spent time with him in Rome and agreed to become his literary executor, forming a group called the "Société des amis de Bastiat" (Society of the Friends of Bastiat) which would preserve his papers and edit his collected works.
1987 See the note above, pp. 000 for details. Gustave de Molinari attended but Bastiat could not because of his editing duties for the journal Le Libre-Échange . Prince-Smith was there as was Karl Marx but there is no evidence that any of the free market economists met him.
1988 A reference to Say's law of markets that "goods create their own market."
1989 Capital and Rent (February 1849), above, pp. 000; Protectionism and Communism (Fall 1848), CW2, pp. 235-65; The State (Sept. 1848), CW2, pp. 93-104; and Damn Money! (April 1849), above, pp. 000.
1990 Copies must have been circulating although it was not due for release until early in 1850.
1991 See the glossary entry on "Coquelin."
1992 See the glossary entry on "Walras."
T.244 (1849.12.12) "Speech on the Tax on Wines and Spirits"↩
SourceT.244 (1849.12.12) "Speech on the Tax on Wines and Spirits" (Discours sur l’impôt des boissons). Speech given in the Legislative Assembly on 12 Dec. 1849. [OC5, pp. 468-93.] [CW2.16, pp. 328-47.]
Editor's Note TextCitizen Representatives,
First of all, we claim that the tax is unjust and base our claim on the following: Here are parcels of land that are side by side and subject to a land tax, a direct tax. These parcels are classified and compared with each other and taxed in accordance with their value. Subsequently, each person may [329] grow anything he wants on them; some grow wheat, others pasture, yet others carnations and roses, and others vines.
Well then, of all these products, there is one and only one that, once it has entered into circulation, is subject to a tax that yields 106 million to the treasury. All the other agricultural products are free from this tax.
It might be said that the tax is useful and necessary, and this is not the subject with which I wish to deal, but it cannot be said that it is not unjust from the owner’s point of view.
It is true that it is said that the tax does not fall on the producer. I will examine this later.
We then say that the tax is badly distributed.
In fact, I was very surprised that this has been disputed, since . . . (interruption)
Speak a little louder!
Will the Assembly be silent please?
I am even ready to abandon this argument in the interest of speed.
Speak! Speak!
The matter seems to me to be so clear, it is so obvious that the tax is badly distributed that, truly, it is embarrassing to demonstrate this.
When we see, for example, that a man who, in an orgy, drinks six francs’ worth of champagne pays the same tax as a worker who needs to restore his strength for work and drinks six sous’ worth of ordinary wine, it is impossible to say that there is no inequality, no monstrousness in the distribution of the tax on wines and spirits. (Hear! Hear!)
Calculus has almost been used to establish that the tax is negligible, that these are fractions of a centime and ought not to be taken into account. In this way, a class of citizens has been burdened with 106 million of an iniquitous tax by being told: “This is nothing. You should consider yourselves fortunate!” The men who invoke this argument ought to be telling you: “We are operating such and such an industry, and we are so convinced that the tax, by being split up, cannot be felt by the consumer on whom it falls that we are subjecting ourselves to the indirect tax and to the “exercise”3 in the case of the industry we are involved with. The day when these men come to the rostrum to say this, I will say: “They are sincere in their defense of the tax on wines and spirits.”
[330]But anyhow here are some figures. In the Department of the Ain, the average wholesale price of wine is eleven francs, and the average retail sales price in forty-one francs. This is a considerable difference; it is obvious that he who is able to buy wine wholesale pays eleven francs and that he who is obliged to purchase it retail pays forty-one francs. Between eleven and forty-one francs the difference is thirty francs. (Interruption.)
It is not the tax that causes this difference; this is the same for all goods.
M. de Charencey has done his calculations; allow the speaker to do his own.
I could quote other départements, but I have taken the first on the list. Doubtless, there is profit to the salesman, but the tax is a considerable proportion of this difference.
In the last two days, efforts have been made to prove such extraordinary things that I really would not be surprised if efforts were made to prove that the tax harmed no one, neither the producer nor the consumer. But if this is so, let us tax everything, not just wines but all products!
I then say that the tax is very costly to collect. I will not quote figures to prove this; figures can be used to prove a great many things. When figures are quoted on this rostrum, people think they are giving them great authority by saying: “These are official figures.” However, official figures mislead just like the others; it all depends on the use made of them.
The fact is that when we see functionaries, and well-paid ones, operating across the entire territory of France in order to collect this tax, we are quite justified in our belief that its collection is very expensive.
Last, let us note that the collection of this tax is accompanied by tedious and annoying formalities. This is a point that the speakers who preceded me on this rostrum have not dealt with. This does not surprise me since all or nearly all of them come from départements that do not grow vines. If they lived in our départements, they would know that the complaints of vineyard owners against the tax on wines and spirits are directed less against the tax itself, its magnitude, than against these annoying, anger-provoking, and dangerous formalities, which are seen as so many traps set at every stage under their feet. (Approval from the left.)
Everyone understands that when this extraordinary thought, this immense utopia—for it was immense then—was conceived, namely, establishing a duty on the circulation of wines without a prior inventory being carried out, everyone, I say, understands that, in order to ensure its collection, it [331] was necessary to conceive a code of the most severely preventive kind, even to the point of harassment, since otherwise how would they have done it? It was necessary that, for a cask of wine to circulate openly in a commune there had to be an employee to determine whether it was in accordance with the rules or not. That cannot be done without an army of employees and a host of irritating interventions against which, I repeat, the taxpayers complain even more than against the tax itself.
The tax on wines and spirits has another very serious consequence, which I have not heard pointed out on this rostrum.
The tax on wines and spirits has caused a disturbance in that great economic phenomenon that is known as the division of labor. In former times, vines were grown in soils that were suited to them, on the slopes of hills and on gravel. Wheat was grown on the plateaus and flat open fields and on alluvial soil. In the beginning an inventory4 was devised, but this method of tax collection caused an uprising among all the landowners. They invoked the rights of property and, as there were three million of them, they were listened to. The burden was then cast onto the café owners and, as there were only three hundred thousand of them, it was declared that, in principle, the property of three hundred thousand men was not property to the same extent as that of three million men although, as it happens, property has always had only the one basis, in my opinion.
But what was the result for the landowners? I believe that the landowners themselves bear the weight of the fault and injustice they then committed. Since they enjoyed the privilege of consuming their products without paying tax, it transpired that, either to avoid the tax or to avoid in particular and above all the formalities and risks to which its collection subjects people, the owners of flat, open fields and alluvial soils all wanted to have vines on their property for their own consumption. In the département that I represent here, or at least in the major part of this département, I can state positively that there is not one sharecropping farm on which there are not sufficient vines planted for the family’s consumption. These vines produce very bad wine, but this offers the immense advantage of being free from the intervention of indirect taxes and all the risks attached to inspections.
This fact explains to a certain extent the increase in the numbers of vines planted that has been pointed out. This increase is oft en set against the complaints [332] of the landowners, who claim to be the victims of injustice; and the landowners appear to be told: “This injustice does not count; it is nothing, since vines are being planted in France.”
First of all, I would like someone to quote me an industry that, in the period from 1788 to 1850, the space of sixty-two years, has not expanded in this proportion. I would like to know, for example, if the coal, iron, and cloth industries have not expanded in this proportion. I would like to know if there is any industry of which it can be said that it has not grown by a quarter in the space of sixty years. Would it be so very surprising that, following its natural development, the industry most firmly rooted in our soil, the industry that is able to provide the entire universe with its products, should increase by this amount? However, this increase, sirs, is provoked by the law itself. It is the law that causes people to dig up vines on the hill slopes and plant them in the flat fields to avoid the vexations of indirect taxation. That is a huge and obvious disturbance.
I ask you to allow me to draw your entire attention to a fact that is almost local in character, since it concerns only a single district, but is of major importance, at least in my eyes, since it is linked to a general law.
This fact, sirs, will also be useful in replying to the argument brought to this rostrum when, invoking the authority of Adam Smith, it was said that the tax always falls on the consumer, with the implication that, for the last forty years, all the owners of vineyards in France have been wrong to complain and ignorant of what they have been talking about. Yes, I am one of those who believe that tax falls on the consumer, but I also add this aside: it is in the long term, with the passage of time, when all the properties have changed hands following economic arrangements that take a long time to be concluded, that this great result is achieved, and for all the time that this revolution lasts, suffering may be great, enormous. I will give you an example.
In my district,5 which is a vine-growing one, there used to be great prosperity. There was general well-being. Vines were grown and the wine was consumed in the local area, in the surrounding plains where vines were not grown, or abroad in northern Europe.
Suddenly, the customs war on the one hand, the war of city tolls on the [333] other, and the amalgamation taxes6 came along and depreciated the value of this wine.
The region of which I am speaking was cultivated in its entirety, especially with regard to vines, by sharecroppers. Sharecroppers retained one half and the landowner the other half of the product. The areas of the sharecropper farms were cultivated in such a way that a sharecropper and his family were able to live on the value of the half quantity of wine that remained to them, but when the value of the wine depreciated, the sharecropper was no longer able to live on his share. He then went to his landowner and told him: “I can no longer cultivate your vines if you do not feed me.” The landowner gave him corn to live on and then, at the end of the year, he took the entire harvest to reimburse himself for his advance. Since the harvest was not enough to cover the advance, the contract was modified, not before the notary but in practice; the landowner had workers to whom he gave their food only in corn, as a total payment for their work.
However, a way out of this situation had to be found, and this is how the revolution was carried out. The sharecropping farms were expanded; that is to say, two were formed out of three or one out of two. Then, by grubbing up a few fields of vines and by growing corn in their place, it was said: “The sharecropper can live on this corn and the landowner will no longer be obliged to give him extra corn to ensure his subsistence.”
Over all the communes, people thus saw houses being torn down and sharecropping farms destroyed. Consequently, as many families as share-cropping farms were destroyed; depopulation became rife, and in the last twenty-five years the number of deaths has exceeded that of births.
Doubtless, when the revolution is fully completed, when the landowners have bought for ten thousand francs what used to cost them thirty thousand francs, when the number of sharecroppers is reduced to the level of the means of subsistence that the region is able to provide, then I believe that the population will no longer be able to blame the tax on wines and spirits. The revolution will be complete, and the tax will fall on the consumer; however, this revolution will be achieved at the price of suffering that will have endured for one or two centuries.
I ask whether it is for this that we are making laws. I ask whether we [334] raise taxes to torment the population, to oblige them to shift work from the hill slopes to the flat fields and from the flat fields to the hill slopes. I ask whether this is the aim of legislation. For my part, I do not think so.
Sirs, however much we attack the tax and say that it is inequitable, vexatious, costly, and unjust, there is one reason before which everyone bows his head; that reason is necessity. It is necessity that is invoked. It is necessity that obliges you to bring to this rostrum words that justify the tax. It is necessity and only necessity that determines your action. Financial problems are feared, as are the results of a reform (for I may properly call it a reform) whose immediate consequence would be to withhold one hundred million from the public treasury; it is therefore about necessity that I wish to speak.
Sirs, I admit that necessity exists and is very insistent. Yes, the balance sheet, not of France but of the French government, can be summed up in very few words. For the last twenty or twenty-five years, taxpayers have been supplying the treasury with a sum that, I believe, has doubled in this period. Successive governments have found ways to devour the original sum, the surplus supplied by taxpayers; to add a public debt of one or two billion to it; to reach at the start of the year a deficit of five or six hundred million; and finally to start the next year with an assured overdraft of three hundred million.
This is the position we are in. I believe that it is well worth the trouble to ask what the cause of this situation is and whether it is prudent in the face of this cause to tell us that the best thing to do is to restore things to the state they were in before, to change nothing or hardly anything in our financial system, or else to change imperceptibly, either with regard to revenue or to expenditure. I seem to see an engineer who has started a locomotive and caused a catastrophe, who then discovers where the fault lay and, without taking any other action, puts it back on the same rails and runs the same risk a second time. (Approval from the left.)
Yes, necessity exists but it is double. There are two necessities.
Finance minister, you mention only one necessity, but I will point out another, one that is extremely serious. I consider that it is even more serious than the one about which you are talking. This necessity is encapsulated in a single phrase: the February revolution.
There occurred, following abuses (since I call abuses everything that has led our finances into the state they are in now), an event; this event is sometimes said by people to have been a surprise. I do not think it was a surprise. [335] It is possible that the external event was the result of an accident that would have been stopped. . . . M. Barthélemy Saint-Hilaire: Delayed!
Yes! Yes! Delayed!
But the general causes are not at all fortuitous. It is just as though you were saying to me, when a passing breeze causes fruit to fall from its tree, that if we could have prevented the breeze from blowing, the fruit would not have fallen. Yes, but on one condition and that is that the fruit was not rotten and gnawed. (Approval from the left.) This event happened, this event has given political power to the entire mass of the population; that is a serious event.
Why did the provisional government not abolish the tax on wines and spirits?
It did not consult me, it did not submit a draft law to me and I was not called upon to give it advice; however, we have a draft here, and in rejecting your draft I am in a good position to tell you the reasons on which I base my reasoning. I base my reasoning on this: not one but two necessities weigh upon you. The second necessity, as imperious as the first, is to do justice to all citizens. (Agreement from the left.)
Well then! I say that following the revolution that has occurred, you ought to be concerned with the political state in which France finds itself and the fact that this political state is deplorable; allow me the word. I do not attribute this to the men governing it now; it goes back a long way.
Do you not see that in France a bureaucracy that has become an aristocracy is devouring the country? Industry is dying out and the people are suffering. I am fully aware that the people are seeking a remedy in wild utopias, but this is no reason for opening the door to these by leaving flagrant injustices to exist such as those I have been pointing out on this rostrum.
I believe that not enough attention is being paid to the state of suffering that exists in this country and to the causes of this suffering. These causes are rooted in the 1.5 billion raised in a country that cannot pay this sum.
I would ask you to have a very mundane thought, but for goodness’ sake, I oft en indulge in one. I ask myself what has happened to my childhood and school friends. And do you know what the answer is? Out of twenty, there are fifteen who are civil servants, and I am convinced that if you do the calculation, you will reach the same result. (Approving laughter from the left.)
That is what causes revolutions.
I also ask myself another question and it is this: taking them one by one, in all honesty, are they giving the country a genuine service worth what the country is paying them? And almost always I am obliged to reply: that is not the case.
Is it not deplorable that this huge amount of labor and intelligence has been withdrawn from the genuine production of the country to supply civil servants who are useless and almost always harmful? For when it comes to civil servants, there is no halfway house: if they are not very useful indeed, they are harmful; if they do not uphold the freedom of citizens, they stifle it. (Approval from the left.)
I say that this calls for necessary, nay absolutely imperative action by the government. What is the plan being proposed to us? I say frankly, if the minister had come and said: “The tax must be maintained for a short while, but here is a financial reform that I am putting forward. This is the plan in its entirety, but a certain period is needed for it to be accomplished. We need four or five years; we cannot do everything at once,” I would have understood this necessity and I might have acceded to it.
But nothing of the sort has happened. We are being told: “Let us reestablish the tax on wines and spirits.” I do not even know whether we are not being made to feel that the salt tax and the postal tax will be reestablished.
As for your reductions in expenditure, they are derisory: three thousand or four thousand soldiers more or less; however, it will be the very same financial system which in my view cannot last much longer in this country without ruining it. (New burst of approval from the left.)
Sirs, it is impossible to discuss this subject without doing so from this point of view: will France be ruined within a very short space of time? For I will be so bold as to ask the minister of finance how long he thinks he can prolong this system. It is not enough to reach the end of the year with an approximate balance between revenue and expenditure; we have to know if this can continue.
However, with this in mind, I really do have to discuss the question of tax in general. (Signs of impatience from the right.)
Speak! Speak!
You have the floor.
I believe, sirs, that I have the right to come here on my own authority to express ideas, even absurd ones. Other speakers have come here to put forward their ideas and I make so bold as to believe that their ideas were no clearer than mine. You heard them patiently; you did not welcome [337] M. Proudhon’s plan for general liquidation any more than M. Considérant’s phalanstery, but you listened to them. You went even further; M. Thiers spoke for you all to say that whoever thought he had an idea of any use was under an obligation to bring it to this rostrum. Well then! When people say: “Speak!” when something of a challenge is thrown down, it must at least be listened to. (Hear! Hear!)
Sirs, we have lately spent a great deal of time on the tax question. Should taxes be direct or indirect?
A short time ago we heard indirect taxes being praised.
Well! For my part, I am raising my voice against indirect taxes in general.
I believe that there is a law of taxation which dominates the entire question, and which I encapsulate in this formula: the inequality of taxation lies in its mass. By that I mean that the lighter a tax is, the easier it is to spread it equitably. On the other hand, the heavier it is, the more likely it is, in spite of the good intentions of the legislator, to be spread inequitably and, as may be said, the more it tends to become regressive, that is to say, to burden citizens in inverse proportion to their ability to pay. I believe that this is a serious and inevitable law, and its consequences are of such importance that I ask your permission to clarify it.
I will suppose for the sake of argument that France has been governed for a long time according to my proposals, which would consist in the government’s keeping each citizen within the limits of his rights and of justice and abandoning everything else to the responsibility of each person. This is my starting point. It is easy to see that in this case France could be governed with two hundred or three hundred million. It is clear that if France were governed with two hundred million, it would be easy to establish a single, proportional tax. (Murmurs.)
This hypothesis of mine will become reality. The only question is whether it will do so by virtue of the foresight of the legislator or by way of age-old political convulsions. (Approval from the left.)
The idea is not mine; if it was, I would distrust it, but we see that all the peoples of the world are more or less happy depending on whether they approach or distance themselves from the achievement of this idea. It has been achieved more or less totally in the United States.
In Massachusetts there are no taxes other than direct taxes that are unique and proportional. Consequently, if this be so, and it is easy to understand it since I am elucidating only the principle, nothing would be easier than to ask citizens to pay a proportional part of the assets they accumulate. This [338] would be so inconsequential that no one would be tempted, at least to any great extent, to hide his wealth in order to escape it.
This is the first part of my axiom.
However, if you ask citizens to pay, not two hundred million but five hundred, six hundred, or eight hundred million, then as you increase taxes, direct taxes will escape your control and it is clear that you will reach a stage when a citizen would rather take up his gun than pay the state half his wealth, for example.
As in the Ardèche.
So you will not be paid. What will you do then? You will have to turn to indirect taxes; this is what happens wherever major expenditure is wanted. Everywhere, as soon as the state wants to give citizens all sorts of benefits, such as education, religion, or a moral code, people are obliged to pay that state considerable indirect taxes.
Well then! I say that when you go down this path, you become mired in tax inequality. Inequality always stems from the indirect taxes themselves. The reason for this is simple. If expenditure were kept within certain limits, some indirect taxes which infringe equality but which would not arouse a feeling of injustice might certainly be found, because these would be luxury taxes; however, when the wish is to raise a great deal of money, then the schema I am assuming will operate leads to the articulation of a true principle, to the effect that the best tax is the one that affects the most generally consumed objects. This is a principle that all our financiers and statesmen acknowledge. And in fact, it is very consequent in the case of governments bent on taking as much money as possible from the people, but in this case the price is the most glaring inequality.
What is an object of mass consumption? It is one that the poor consume in the same proportion as the rich. It is an object on which workers spend all their earnings.
Thus, a currency trader earns five hundred francs a day, a worker earns five hundred francs a year, and justice would like the currency trader’s five hundred francs to produce as much for the treasury as the worker’s five hundred francs. But this does not happen, for the currency trader will buy drapes, bronzes, and luxury items with his money, that is to say, objects of limited consumption that are not taxed, whereas the worker buys wine, salt, or tobacco, that is to say, objects of mass consumption that are weighed down by taxes. (Murmurs and various interruptions.)
If the currency trader did not buy these objects, he would not give the worker a living.
Would the abolition of the tax on wines and spirits prevent the currency trader from buying bronzes and drapes? No financier will contradict my argument. Under indirect taxation, a system that I disapprove of, it is all too reasonable to tax only the objects of the greatest mass consumption. In this way you start charging for the air we breathe with a tax on doors and windows, followed by salt, then wines and spirits and tobacco, and finally everything within the reach of everyone.
I say that these arrangements cannot last in the face of universal suffrage. I add that he who does not see necessity from this point of view too, and sees only the necessity to which I have just alluded, is very blind and very imprudent. (Lively approval from the left.)
I have another reproach to make to indirect taxes, and that is that they create precisely the necessities people have been talking to you about, financial ones. Do you think that if each citizen were asked for his part of the contribution directly, if he were sent a tax demand showing not only the figure of what he owed for the year but the details of his contributions (for this is easy to break down: so much for the administration of justice, so much for the maintenance of public order, so much for Algeria, so much for the expedition to Rome, etc.), do you believe that this would mean that the country was not well governed?7 M. Charencey told us not long ago that with indirect taxes the country was sure to be well governed. Well then, I, for my part, say the opposite. With all these taxes misappropriated through guile, the people suffer, complain, and put the blame everywhere—capital, property, the monarchy or the Republic—when it is the tax that is the guilty party. (That is true! That is true!)
This is why the government, forever finding new facilities, has increased [340] expenditure so much. When has it stopped? When has it said: “We have excess revenue; we are going to abolish taxes.” It has never done this. When we have too much, we seek ways of using it up, and this is how the number of civil servants has increased to an enormous figure.
We have been accused of being Malthusian; yes, I am a Malthusian with regard to civil servants. I am fully aware that they have followed perfectly the great law that populations reach the level of the means of subsistence. You have contributed eight hundred million; public civil servants have devoured eight hundred million. If you gave them two billion, there would be enough civil servants to devour this two billion. (Approval from several benches.)
A change in a financial system brings of necessity a similar change in the political system, for a country cannot follow the same policy when the population gives it two billion as when it gives it only two hundred or three hundred million. And here you will perhaps find that I am in profound disagreement [341] with very many members sitting on this side (on the left). For anyone who is serious, the obligatory consequence of the financial theory I am developing here is obviously this: since no one wants to give a great deal to the state, people have to know how to ask very little of it. (Agreement.)
It is clear that you have the profound illusion in your head that there are two factors in society: first, the men who make it up, and second, a fictional being known as the state or the government to which you attribute a cast-iron moral code, a religion, credit, and the ability to spread benefits widely and provide assistance. It is very clear that in this case you are placing yourselves in the ridiculous position of men who say, “Give us something without taking anything from us,” or “Stay in the disastrous system in which we are at the moment.”
We have to learn to renounce these ideas. We have to know how to be men and say to ourselves, “We are responsible for our existence and we will assume it.” (Hear! Hear!) Once again today, I received a petition from inhabitants [342] of my region in which vineyard owners say, “We are not asking any of that from the government; let them leave us alone, let them leave us free to act and work. This is all we ask of them; let them protect our freedom and our security.”
Well then! I believe that there is a lesson there, provided by the poor vineyard owners, which should be listened to in the largest towns. (Hear! Hear!)
The domestic politics that this financial system would oblige us to enter is obviously the politics of freedom, for, and you should note this, freedom is incompatible with overbearing taxation, whatever anyone says.
I have read a saying by a very famous statesman, M. Guizot, and I quote: “Freedom is too precious an asset for a nation to haggle over it.”
You know, when I read this sentence a long time ago now, I said to myself, “If ever this man governs the country, he will ruin not only the finances but also the freedom of France.”
And indeed, I ask you to note, as I said just now, that the public services are never neutral; if they are not essential, they are harmful.
I say that there is radical incompatibility between excessive taxation and freedom.
The maximum of taxation is servitude, for a slave is a man from whom everything has been taken, even the freedom of his arms and faculties. (Hear! Hear!)
I put it to you, if the state did not pay for religion,8 for example, at our expense, would we not have freedom of religious practice? If the state did not pay for university education at our expense, would we not have freedom of public education? If the state did not pay the numerous members of a bureaucracy at our expense, would we not have communal and departmental freedom? If the state did not pay customs officers at our expense, would we not have freedom of trade? (Hear! Hear! A prolonged swell.)
For what have the men in this country lacked the most? A little self-confidence and a feeling of responsibility. It is not very surprising that they have lost this; they have been accustomed to losing it through being governed. This country is overgoverned; that is what is wrong.
The remedy is for the country to learn to govern itself, for it to learn to distinguish between the essential attributions of the state and those it has usurped at our expense from private activity.
This is the nub of the problem.
[343]As for me, I say, “The number of things included in the essential attributions of the government is very limited: to ensure order and security, to keep each person within the limits of justice, that is to say, to repress misdemeanors and crimes, and to carry out a few major public works of national utility. These are, I believe, its essential attributions, and we will have no peace, no financial wherewithal, and we will not destroy the hydra of revolution if we do not regain, little by little if you like, this limited governance toward which we should be aiming. (Hear! Hear!)
The second condition of such governance is that we have to want peace sincerely, for it is obvious that not only war but even the spirit of war or warlike tendencies are incompatible with a system like this. I am fully aware that the word peace sometimes causes an ironic smile to pass along these benches, but truly I do not believe that serious men can treat this word ironically. What! Will we never learn from experience?
Since 1815, for example, we have been maintaining numerous armies, huge armies, and I am able to say that it is precisely these great military forces that have led us in spite of ourselves into adventures and wars, in which we would certainly not have become involved if we had not had these huge forces behind us. We would not have had the war with Spain in 1823;9 we would not have had the expedition to Rome last year; we would have let the pope and citizens of Rome reach an agreement on their own if our military structures had been limited to more modest proportions.10 (A variety of reactions.)
In June, you were not upset that we had the army!
You quote the month of June as an answer. I tell you, for my part, that if you had not had these huge armies, you would not have had the month of June. (Prolonged hilarity on the right. Lengthy agitation.)
It is as though you were saying that there would have been no thieves if there were no gendarmes.
But it was the civil servants in the national workshops who caused the month of June.
My reasoning follows the speculative idea of a well-governed France, a France almost ideally governed, in which case I am free to believe [344] that we would not have had the disastrous days in June, just as we would not have had 24th February 1848, 1830, nor perhaps 1814.
Be that as it may, freedom and peace are the two pillars of the proposals I am developing here. And please note that I am not presenting these only as being good in themselves but as being required by the most pressing necessity.
At present there are people who are concerned, and rightly so, about security. I too am concerned and as much as anyone else; it is an asset that is as precious as the two others. But we are in a country that is accustomed to being governed to such an extent that no one can imagine that there can be a little order and security with less regimentation. I believe that it is precisely in this excessive government that the cause of almost all the troubles, agitations, and revolution lies, of which we are the sorry onlookers and on occasion the victims.
Let us see what this implies.
Society is thus divided into two parts: those who exploit and those who are exploited. (Nonsense! Lengthy interruption.)11
A distinction like this will not bring peace back.
Sirs, there must be no misunderstanding. I am not alluding in the slightest either to property or to capital. I am talking only about 1.8 billion that is paid on the one hand and received on the other. I was perhaps mistaken to say those who are exploited since, in this 1.8 billion there is a considerable portion that goes to men who provide very genuine services. I therefore withdraw this expression. (Mutterings at the foot of the rostrum.)
Silence, sirs! You are there only on condition that you keep silent more than all the others.
I want to have it noted that this state of affairs, this manner of existing, this immense expenditure of the government must always be justified or explained in some way. Consequently, this aspiring of the government to do everything, run everything, and govern everything was naturally bound to give rise to a dangerous thought in the country, with the lowest stratum of the population expecting everything from the government and expecting the impossible from this government. (Hear! Hear!)
We are discussing vineyard owners; I have seen vineyard owners on days [345] when it hails, days on which they are ruined. They weep but do not blame the government. They know that there is no connection between the hail and the government. However, when you lead the population to believe that all the misfortunes that are not as sudden as hail are the fault of the government, when the government itself allows this to be believed since it receives a huge tax revenue only on condition that it does some good for the people, it is clear, when things have reached this stage, that you have constant revolution in the country since, because of the financial system I spoke of just now, the good that the government is able to do is nothing in comparison to the harm it does itself through the contributions it extorts.
The people then, instead of feeling better, are more unfortunate; they suffer and blame the government and there is no lack of men in the opposition to tell them, “Look at the government that has promised you this and that . . ., which should have reduced all taxes and showered you with benefits. See how this government keeps its promises! Put us in its place and you will see how differently we will act!” (General hilarity. Signs of approval.) The government is then overturned. However, the men who gain power find themselves in exactly the same situation as those who preceded them. They are obliged to withdraw all their promises gradually. They tell those who urge them to carry out their promises, “The time has not yet come, but you can count on it that the situation will improve, count on exports, count on future prosperity.” But since in reality they do no better than their predecessors, there are even more complaints against them; they end up being overthrown, and the people go from one revolution to another. I do not believe that a revolution is possible where the only relationship between a government and its citizens is the guarantee of security and freedom for all. (Hear! Hear!) Why do people revolt against a government? Because it breaks its promises. Have you ever seen the people revolt against magistrates, for example? Their mission is to hand down justice and they do this; nobody thinks of asking any more of them. (Hear! Hear!)
You should convince yourselves of one thing, and that is that a love of order, security, and tranquillity is not exclusive to any one person. It exists and is inherent in human nature. Ask all those who are discontented, among whom there are doubtless a few agitators. God knows, there are always exceptions. But ask men from all classes and they will all tell you how terrified they are these days to see order being compromised. They love order; they love it to the extent of making great sacrifices for it, sacrifices of opinion [346] and sacrifices of freedom; we see this every day. Well then! This sentiment would be strong enough to maintain security, especially if contrary opinions were not constantly being encouraged by the incorrect constitution of the government.
I will add just one word with regard to security.
I am not an experienced legal expert, but I truly believe that if the government were contained within the limits I have mentioned, and all the force of its intelligence and capacity were to be directed toward this particular point: to improve citizens’ conditions of security, immense progress might be made in this direction. I do not believe that the art of repressing misdemeanors and vice, restoring morals, and reforming prisoners has made all the progress it might. I do say and do repeat that if the government aroused less jealousy on the one hand and fewer prejudices on the other and concentrated all its force on civil and penal improvements, society would have everything to gain thereby.
I will stop there. I am so profoundly convinced that the ideas I have brought to this rostrum fulfill all the conditions for a government program, that they reconcile so fully freedom, justice, financial necessity, the need for order, and all the great principles that nations and humanity support; this conviction of mine is so firm that I find it hard to believe that this project can be called utopian. On the contrary, I think it likely that if Napoléon, for example, returned to earth (exclamations from the right) and was told, “Here are two systems: one aims to restrict and limit the attributions of the government and as a result, taxes, while the other aims to extend the attributes of government indefinitely and as a result, taxes, following which France will have to be made to accept amalgamation taxes,”12 I am convinced and will indeed assert that Napoléon would say that the true utopia lies on the latter side, since it was much more difficult to establish combined taxes than it would be to enter the system I have just proclaimed from this rostrum.
Now I will be asked why I immediately reject the tax on wines and spirits today. I will tell you. I have just set out the theoretical dispensation that I would like the government to espouse. But since I have never seen a government exercise on itself what it considers to be a sort of semisuicide by cutting back all the attributions not essential to it, I consider myself obliged to compel it to and I can do this only by refusing it the means of continuing down a disastrous path. It is for this reason that I voted for the reduction in the salt [347] tax, it is for this reason that I voted for postal reform, and it is for this reason that I will vote against the tax on wine and spirits. (Agreement on the left.)
It is my profound conviction that if France has faith and confidence in herself, if she is certain that no one will come to attack her once she decides not to attack others, it will be easy to decrease public expenditure to an enormous extent and, even with the abolition of the tax on wines and spirits, there will be enough not only to balance revenue and expenditure but also to reduce public debt. (A host of signs of approval.)
(Paillottet’s note) This unprepared talk was delivered to the Legislative Assembly on 12 December 1849.
Inherited from the First Empire, taxes on alcoholic beverages had three com ponents:
- 1. A “circulation” duty
- 2. A retail tax
- 3. An “entrance duty,” when the drink was introduced into a city of more than four thousand inhabitants.
These taxes were very unpopular and were abolished in May 1849 by the Assembly; however, in December the minister of finance proposed to reestablish them as part of an attempt to balance the budget.
The “exercise” was a control carried out by the tax officials at the wholesalers.
The inventory was drawn up in order to check the honesty of producers’ declarations of crops.
Saint-Sever.
The “amalgamation taxes” were a combination of taxes introduced by Napoléon under the name “droits réunis.”
Catholic and Protestant priests and Jewish rabbis were paid by the state (until 1905).
After the pronunciamento of 1 January 1822, and the ensuing troubles, France, mandated by the Verona Congress (October 1822), conducted a military intervention in Spain.
The National Assembly sent troops to restore the pope in Rome while protecting the new republic. Nevertheless, the new Roman republic fell after a month of fighting. Bastiat, however, makes a mistake: this happened in April 1849, not in 1848.
See “Note on the Translation,” pp. xi–xiv, and “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 401–15, both in this volume.
Bastiat's Writings in 1850↩
T.246 (1850.??) "The Three Pieces of Advice"↩
SourceT.246 (1850.??) "The Three Pieces of Advice" (Les trois conseils), L'Economiste Belge, 3 June 1860. Probably written early 1850. [OC7.82, pp. 361-68.] [CW1.2.4.23, pp. 471-76.]
Editor's Note[to come]
Text“When the country is in danger, each individual owes it the tribute of what he may have acquired of enlightenment and experience.”
This is how every giver of advice begins. A tax on advice! Is there any tax more abundant or more spontaneous?
I also wish to pay this tax, as well as all the others, in order not to be in debt in any way to my country.
Although the millions and millions of pieces of advice it receives differ [472] from one another, they do have a point in common. Each has the pretension of saving society and those who give advice limit themselves to saying, “This is my approach; everything would be marvelous if everyone thought as I do.” All this means that if we all agreed, we would come to an agreement.
“Let us all enter a phalanstery,”55 says one, “and all our disputes will stop.” “That’s all very well, but 9,999 out of 10,000 Frenchmen have a horror of phalansteries.” “Let us organize a social workshop in unanimous concert,” says another, “and society will run like clockwork.” “Doubtless, but those whom we are aiming at would sooner go to jail.” “Let us bow down to the constitution,” cries a third; “even if it is bad, if everyone carries it out it will be good.” There is no truer word and I believe that this is the wisest and most plausible solution. But how do we persuade those who, although they detest the constitution, submit to it when anarchy threatens them and threaten it as soon as order raises their morale?
Some people say, “Evil arises as a result of the extinction of faith. Let us be good Catholics and social wounds will heal over.” “You say this because you yourself are a Catholic . . . and yet. But what do we do to make those who are not become Catholic?”
Others, depending on their tastes, will repeat, “Let us all unite with the republic!” “Let us all rally to the monarchy!” “Let us all by common accord return to the past!” “Let us all go forward with courage toward the future!”
In the end, everyone follows his own advice, nothing is more natural, and proclaims that the world will be saved if it is followed, and nothing is more certain.
But none of these wins the day nor can any of them triumph, for all these efforts cancel each other out and the status quo remains.
Among these myriads of doctrines, there is a single one—I do not need to say that it is mine—which would have the right to generate common agreement. Why is it the only one with this privilege? Because it is the doctrine of liberty, because it is tolerant and just toward all the others. Found a phalanstery if that is what you want, form a group in a social workshop if that pleases you, discuss the constitution as much as you want, demonstrate your preference for the republic or monarchy openly, go to confession if your heart so dictates, in a word make use of all the rights of the individual; provided that you acknowledge these same rights in others, I will be satisfied [473] and, such is my conviction, society, in order to be just, ordered, and progressive, asks nothing else of you.
But I do not presume now to develop this approach which ought, in my view, be adopted as soon as it is put forward. Is there anything more reasonable? We cannot agree on the doctrines, well then, let each of us retain and put forward our own and agree to banish all oppression and violence from among us.
Adopting the point of view that facts are as they are and the situation is as events have made it, let us suppose, as I must, that I am addressing people who above all want France to be at peace and happy. In which case I would like to issue three pieces of practical advice, one to the president of the Republic,56 the second to the majority in the Chamber, and the third to the minority.
I would like the president of the Republic to go before the National Assembly and make the following solemn speech:
Citizen representatives,
The greatest plague at the present time in our country is the uncertainty of the future. Insofar as this uncertainty may concern my projects and my views, my duty is to eliminate it and this is also my wish.
People ask, “What will happen in two years’ time? Before my country, under the eye of God, and by the name I carry, I swear that on —— May 1852, I will relinquish the chair of president.
I have received a mandate from the people by virtue of the constitution. I will hand this mandate back to the people in accordance with the constitution.
There are some who say, “But what if the people choose you again?” To this I reply, “The people will not do me the injury of electing me against my wishes, and if a few citizens forget their duty to this extent, I will in advance consider null and void the votes that bear my name at the next election.”
Others, considering themselves to be much wiser, think that my presidency can be prolonged by changing the constitution in accordance with the forms it has itself established.
It is not up to me to impose limits on the legal exercise of the rights of the Assembly. However, if it is the mistress of its regular resolutions, I am master of mine, and I formally declare that, should the constitution be modified, my first presidency would not immediately be followed by a second.
[474]I have thought about this and this is the basis of my opinion:
The rule governing our action is contained in these words, France before all. What ails France? Uncertainty. If this is the case, citizens, is calling everything into question a way of removing uncertainty? Good God! The constitution is just one year old and already you would hurl this burning question, do we need to draw up a new constitution? If your reply is negative, will the passions outside be calmed? If it is affirmative, another constitution will need to be convoked, the foundations of our national existence will once more be disturbed, we will rush headlong into a new unknown and, in a few months, undergo three general elections.
This extreme option appears to me to be the height of folly. I have no right to oppose it other than by declaring in the most decisive manner that it will not profit my followers, since, I repeat, I will not accept the presidency in whatever form or in whatever manner it happens to me.
This is my first resolution. I have taken it out of duty; I proclaim it with joy since it may contribute to the tranquillity of our country. I will be sufficiently rewarded if it provides me with a successor who is an honest republican who brings to the first function of the state neither bitterness nor utopia nor commitment to the political parties.
I now have a second resolution to put before you. Through the will of the people I must carry out executive power for two years more.
I understand the meaning of the words executive power and I am resolved to restrict myself to it absolutely.
The nation has handed down two delegations. On its representatives it has conferred the right to make laws. To me, it has entrusted the mission of having them executed.
Representatives, make the laws you consider to be the best, the most just, and the most useful to the country. Whatever they are, I will carry them out to the letter.
If they are good, their execution will prove this; if they are bad, their execution will reveal their faults and you will reform them. I have not the right and do not accept the responsibility of judging them.
I say all this in accordance with the faculty attributed to me by Article —— of the constitution.
I will execute your decrees, therefore, without distinction. There are some, however, to which I consider myself to be bound, by national wish, to give particular attention. These concern the repression of misdemeanors and crimes, order in the streets, respect for persons and property, using this [475] word property in its widest meaning, which includes both the free exercise of faculties and labor and the peaceful enjoyment of acquired wealth.
So, representatives, make laws. Let citizens discuss all the political and social questions in meetings and in the newspapers. But let no one disturb the order reigning in the city, peace within families, and the security of industry. At the first sign of revolt or uprising, I will be there. I will be there together with all good citizens and with the true republicans. I will be there with the brave Republican Guard and with our admirable army.
Some people say, “Can we count on the zeal of the National Guard and on the loyalty of the army?”
Yes, in the path I have just traced we can count on them. I trust them as I trust myself, and no one has the right to insult our armed forces by believing that they would take sides with the disturbers of public peace.
I wish, and I have the right to wish, since the people have given me this express mission, and my will in this is the same as theirs, I wish order and security to be respected everywhere. I want this and it shall be so. I am surrounded by loyal soldiers and tested officers. I have on my side force, the law and public common sense, and if I did not fear to wound the just susceptibilities of those of whose assistance I am assured by appearing to doubt them, I would say that even defection would not make me hesitate. Legal order will reign, if it costs me the presidency and my life.
This, citizens, is my second resolution. And here is the third.
I wonder what is the cause of these incessant and passionate conflicts between the nation and the government it gave itself.
Perhaps it should be attributed to the ingrained habit of opposition. Combating power is to give oneself a role considered to be heroic because in the past it might have been glorious and dangerous. I know that there is no other remedy for this than time. But, as these perpetual conflicts and the language of hate and exaggeration that they generate are one of the great plagues of our Republic, I have had to examine whether they had causes other than irrational tradition, in order to eliminate any cause over which I had any power.
I sincerely believe that the legislative and executive powers mix up and confuse their roles too much.
I am resolved to limit myself to mine, which is to see that the laws you have voted are executed. In this way, I would have only a restricted responsibility, even in the eyes of the most susceptible. If the nation is badly governed, they will not be able to blame me, provided that I execute the laws. [476] The government and I will be blameless in the debates in the tribune and in the press.
I will choose my ministers outside the Assembly. In this way there will be a logical separation between the two powers. In this way, I will put an end to the alliances and portfolio wars within the Chamber which are so disastrous to the country.
My ministers will be my direct agents. They will come to the Assembly only when they are called, in order to answer questions asked in advance by means of regular messages.
In this way, you will be perfectly free and enjoy perfectly impartial conditions in which to draft laws. My government will not exercise any influence on you in this respect. For your part, you will have none over their execution. You will doubtless have to check them, but their execution as such is my responsibility.
This being so, citizens, is it possible to imagine a collision? Would you not have the greatest interest in seeing that only good laws result from your deliberations? Could I have any other interest than ensuring their proper execution?
In two years the nation will be called upon to elect another president. Its choice will doubtless fall upon the most worthy, and we will not fear any attack on freedom and the laws from him. In any case, I will have the satisfaction of leaving him precedents that will bind him. When the presidency is not set on the name of Napoléon, on the person elected by seven million votes, is there anyone in France who is able to dream of a coup d’état in his favor and aspire to empire?57
Let us therefore banish vain fears. We will live through a first, second, and third presidency free from danger. . . .
EndnotesA Fourier-type commune. See also “Fourier” in the Glossary of Persons.
Louis-Napoléon.
The irony is that Louis-Napoléon seized power in a coup d’état in December 1851 and was made emperor in December 1852.
T.247 (1850.??) Baccalaureate and Socialism↩
SourceT.247 (1850.??) Baccalaureate and Socialism (Baccalaureate et socialisme). Written early 1850 for a Parliamentary commission on free education; also published as a pamphlet, Baccalauréat et Socialisme (The Baccalaureate and Socialism) (Paris: Guillaumin, 1850). [OC4, pp. 442-503.] [CW2.11, pp. 185-234.]
Editor's Note[to come]1
TextCitizen Representatives
I have submitted an amendment to the Assembly the object of which is to eliminate university degrees.2 My health does not allow me to develop it from the rostrum. Allow me to have recourse to the pen.3
The question is extremely serious. As faulty as the law drawn up by your commission is, I believe that it would mark a signal improvement on the current condition of state education if it were amended as I propose.
University degrees have the triple disadvantage of making teaching uniform (uniformity is not unity) and of freezing it after having imprinted it with the most disastrous orientation.
If there is anything in the world that is progressive by nature it is teaching. What is it, in fact, other than the transmission from generation to generation [186] of the knowledge acquired by society, that is to say, a treasure that is relieved of its dross and increased every day?
How has it happened that teaching in France has remained uniform and stationary in medieval obscurity? Because it has been monopolized and enclosed by university degrees in an impassable circle.
There was a time when, to acquire any sort of knowledge, it was as necessary to learn Latin and Greek as it is for people in the Basque and lower Brittany regions to begin by learning French. Living languages had not been settled, printing had not been discovered, and the human spirit had not applied itself to penetrating the secrets of nature. To be educated was to know what Epicurus and Aristotle thought. In the higher ranks, people boasted that they could not read. One single class possessed and imparted education, the clergy. What could this education be like under these circumstances? Obviously it had to be limited to a knowledge of the dead languages, principally Latin. There were only Latin books; people wrote only in Latin; Latin was the language of religion, and the clergy could teach only what they themselves had learned, Latin.
We can understand, therefore, that in the Middle Ages teaching was limited to the study of the dead languages, most improperly called scholarly.
Is it natural, is it right that this should be so in the nineteenth century? Is Latin an essential instrument for the acquisition of knowledge? Is it in the writings left to us by the Romans that we can learn about religion, physics, chemistry, astronomy, physiology, history, law, morality, industrial technology, or social science?
To know a language, like knowing how to read, is to possess an instrument. And is it not strange that we should spend our entire youth mastering an instrument that is no longer any use, or very little use, since there is nothing we are more in a hurry to do, once we have begun to know it, than to forget it? Alas, why can we not forget the impressions left on us by this disastrous study just as quickly?
What would we say if, at Saint-Cyr, while initiating our young people into modern military science, we taught them only to throw stones with a sling?
The law of our land has decided that the most honorable careers will be closed to anyone who has not obtained a baccalaureate. What is more, it has decided that in order to obtain it students have to stuff their heads with Latin texts to such an extent that nothing else enters. So, what is the result according to common agreement? It is that our young people have calculated [187] the minimum work strictly required to gain a pass mark and they stop there. You object to this and you complain bitterly about it. Well, do you not see that this is the cry of public awareness, a public that refuses to have a useless effort imposed on it?
Teaching an instrument that, as soon as you know it, no longer gives out any sound, is a very strange anomaly! How has it lasted up to our time? The explanation lies in a single word: monopoly. Monopoly is constructed in such a way that it renders immobile everything it touches.
For this reason, I would have liked the Legislative Assembly to achieve freedom, that is to say, progress in teaching. It has now been decided that this will not happen. We will not have total freedom. May I be allowed to make an effort to save a shred of it?
Freedom may be considered from the point of view of people and in relation to subjects taught—ratione personae et ratione materiae4—as lawyers say, to eliminate the competition between methods is no less an attack on freedom than to eliminate competition between men.
There are those who say: “The teaching profession will be free, since anyone may enter it.” That is a great illusion.
The state, or more precisely the party, the faction, the sect, or the man who briefly and even very legally takes control of government influence, may give teaching any direction he pleases and fashion at will all intelligent minds through the single mechanism of degrees.
Give a man the power to confer degrees and, while leaving yourself free to teach, the teaching will in fact be carried out in servitude.
I, as the father of a family, and the teacher with whom I join forces for the education of my son may well believe that a proper education consists in knowing what things are and what they produce, both in the realm of physics and in the realm of morals. We may think that a person is best educated if he has the most accurate knowledge of phenomena and is most conversant with the cycle of cause and effect. We would like to base teaching on this foundation. But the state thinks otherwise. It thinks that to be learned is to be able to scan the verses of Plautus and to quote the opinions of Thales and Pythagoras with regard to fire and air.
So what does the state do? It tells us: “Teach your pupil whatever you like, but when he is twenty, I will have him interrogated on the opinions of [188] Pythagoras and Thales, I will have him scan the verses of Plautus, and if he is not schooled enough in these matters to prove to me that he has devoted his entire youth to them, he cannot be a doctor, lawyer, magistrate, consul, diplomat, or teacher.”
This being so, I am obliged to bow to the state, since I cannot take the responsibility on myself to bar my son from such fine professions. You may well say that I am free; I insist that I am not, since you reduce me to making my son, at least in my opinion, a pedant, perhaps a frightful little orator, and most certainly a turbulent troublemaker.
It would be bearable if only the knowledge required for the baccalaureate related in some slight way to the needs and interests of our era, if only it was merely useless; but what is required is deplorably disastrous! Distorting the human mind is the problem that seems to have been set and that the bodies to which the monopoly of teaching has been allocated have settled on. This is what I will try to demonstrate.
Since the start of this debate, the university and the clergy have been throwing accusations at each other like so many balls. “You are perverting our youth with your philosophical rationalism,” say the clergy. “You are dulling its wits with your religious dogmatism,” replies the university.
Arbitrators then come forward and say: “Religion and philosophy are sisters. Let us merge free examination and authority. University and clergy, you have taken turns in having the monopoly. Share it and let us have an end to this.”
We have heard the venerable bishop of Langres5 rudely identify the university thus: “It is you who have given us the socialist generation of 1848.”
And M. Crémieux hastened to respond to the chastisement in these words: “It is you who have raised the revolutionary generation of 1793.”
If there is any truth in these allegations, what should we conclude from them? That the two forms of teaching have been disastrous not because of what separates them but because of what they have in common.
Yes, I am convinced of this. There is one common factor in these two forms of teaching, the abuse of classical studies, and it is in this that both have perverted the judgment and morality of the country. They differ in that one emphasizes the religious element while the other emphasizes the philosophical one, but these elements, far from having caused the harm they are [189] reproached for, have lessened it. We are indebted to them for not being as barbaric as the barbarians unceasingly put up by Latinism for us to imitate.
Let me make a supposition that is a bit stretched, but that will help my thought to be understood.
I imagine, then, that somewhere in the Antipodes there is a nation that, because it hates and despises work, has based its entire means of existence on the successive pillage of all the neighboring tribes and on slavery. This nation has established a policy, a moral code, a religion, and public opinion in line with the cruel purpose that is sustaining and developing it. Since France has given the clergy the monopoly on education, the clergy finds nothing better to do than to send all French young people to visit this nation, to live its way of life, be inspired by its sentiments, share its enthusiasms, and breathe its ideas as their own air. The thing is that the clergy takes care to ensure that each student goes with a small volume titled The Gospels. The generations brought up in this way return to their home country and a revolution breaks out; I leave you to imagine the role they will play in it.
When it sees this, the state snatches the monopoly on teaching from the clergy and hands it over to the university. Faithful to its traditions, the university also sends its young people to the Antipodes to visit the nation that pillages others and possesses slaves, after supplying them, however, with a small volume titled Philosophy. Scarcely have five or six generations raised this way returned to their native soil than a second revolution breaks out. Trained in the same school as their predecessors, they show themselves their worthy emulators.
In this way, war breaks out between the monopolists. “It is your small book that did all the damage,” says the clergy. “It is yours,” replies the University.
Well no, sirs, your small books had nothing to do with all of this. What did the damage was the strange idea, thought out and carried out by both of you, of sending young French people whose future lay in work, peace, and freedom, to become imbued and permeated with and saturated in the sentiments and opinions of a nation of brigands and slaves.
My contention is this: The subversive doctrines that have been given the name of socialism or communism are the fruit of classical teaching, whether it is dispensed by the clergy or by the university. I add that the baccalaureate imposes classical teaching by force even on the so-called free schools that will, people say, arise as a result of the law. It is for this that I demand that university degrees be eliminated.
[190]Much praise has been heaped on Latin as a means of developing intelligence; this is pure conventionalism. The Greeks, who did not learn Latin, did not lack intelligence, and we do not see that French women lack it any more than they lack common sense. It would be strange if the human spirit could gain strength only by deforming itself; and will people never understand that the highly problematic advantage that is alleged, if it exists, is very dearly bought with the redoubtable disadvantage of having the soul of France penetrated by the language of the Romans, their ideas, their sentiments, their opinions, and a caricature of their behavior?
Since the time when God pronounced this decree over men: “By the sweat of thy brow shalt thou eat bread,” they have found existence to be so great and absorbing an affair that, depending on the means they use to achieve it, their behavior, habits, opinions, moral code, and social systems necessarily manifest wide-ranging differences.
A people that lives by hunting cannot resemble one that lives by fishing, nor can a pastoral nation resemble a nation of seafarers.
However, these differences are nothing in comparison with that which has to characterize two peoples, one of which lives from work and the other from theft.
For between huntsmen, fishermen, shepherds, farm laborers, traders, and manufacturers, there is this common factor, that they all seek to satisfy their needs through the action they carry out on things. What they wish to subject to their rule is nature.
But the men who base their means of existence on pillage exercise their action on other men; what they ardently aspire to dominate are their fellow men.
For men to exist, it is absolutely necessary for this action on nature, which we call work, to be carried out.
It may be that the fruits of this action benefit the nation that carries it out. It is also possible that they come across another people, either indirectly or through force, who rule over the people who do the work.
I cannot develop this line of thinking in detail here, but if you care to think about it, you will be convinced that between two conurbations of men situated in such opposing conditions, everything has to be different: behavior, habits, judgments, organizations, moral codes, and religions, and this is so far true that the very words intended to express the most basic relationships, such as those for family, property, freedom, virtue, society, government, republic, or people, cannot represent the same ideas in both cases.
A nation of warriors will soon understand that the family will weaken [191] military devotion (we feel this ourselves since we forbid our soldiers to have families). However, the population must not die out. How do we solve the problem? As Plato did in theory and Lycurgus in practice, by promiscuity. Plato and Lycurgus, however, are names we are accustomed to pronounce only with reverence.
As for property, I challenge you to find an acceptable definition of this in the whole of antiquity. We, for our part, say: “Men are the owners of themselves and consequently of their faculties and, following this, of the products of their faculties.” But could the Romans conceive of such a notion? As the owners of slaves, were they able to say: “Man belongs to himself”? As they despised work, were they able to say: “Man is the owner of the product of his faculties”? This would have been to base a whole society on collective suicide.
On what then did antiquity base property? On the law, a disastrous idea, the most disastrous ever introduced into the world, since it justifies the use and abuse of anything it pleases the law to declare property, even the fruits of theft and even the theft of men.
In these barbaric present times, freedom could not be better understood. What is freedom? It is the sum total of freedoms. To be free, under one’s own responsibility, to think and act, to speak and write, to work and trade, to teach and learn, that alone is to be free. Can a disciplined nation with the prospect of an endless battle conceive freedom thus? No, the Romans prostituted the word to mean a certain audaciousness in the internecine struggles that the sharing of plunder triggered between them. The leaders wanted everything, and the people demanded their share. This gave rise to storms in the Forum, the retreats to the Aventine Mountain, the agrarian laws, the interventions by the tribunes, and the popularity of conspirators. This also gave rise to this maxim: Malo periculosam libertatem,6 etc., which has passed into our language and which I inscribed in adornment on all my schoolbooks:
- O Freedom! How your storms
- Attract great hearts!
Fine example, sublime precepts, precious seed to be sown in the souls of French youth!
What should we say about Roman morals? And I am not referring here [192] to relationships between father and son, husband and wife, shop owner and customer, master and servant, or man and God, relationships that slavery all on its own could not fail to transform into a tissue of turpitude; all I wish to concentrate on here is that which is called the estimable side of the republic, patriotism. What is this patriotism? The hatred of foreigners. To destroy all civilization, stifle all progress, put the entire world to fire and the sword, and chain women, children, and the elderly to the triumphal chariots: in that lay glory and virtue. It is to these atrocities that the marble of sculptors and the songs of poets were devoted. How many times have our young hearts beat with admiration and alas with emulation at this sight! This is how our teachers, venerable priests full of years and charity, prepared us for a Christian and civilized life; so great is the power of conventionalism!
The lesson has not been lost, and doubtless it is from Rome that we have this maxim that is right for theft and wrong for work: One people loses what another gains, a maxim that still governs the world.
To give us an idea of the Roman moral code, let us imagine an association of men in the center of Paris. The association hates work and is intent on procuring possessions for itself through guile and force, and is thus at war with society. There is no doubt that within this association a certain moral code and even a high degree of virtue will soon evolve. Courage, perseverance, dissimulation, prudence, discipline, constancy in misfortune, profound secrecy, cultivation of points of honor, and devotion to the community will doubtless be the virtues that necessity and general opinion would develop in these brigands. This was true of buccaneers and also true of the Romans. It will be said of the Romans that the grandeur of their enterprise and its immense success has shrouded their crimes in a sufficiently glorious veil to transform them into virtues. And it is for this very reason that this school is so pernicious. It is not abject vice but vice crowned with splendor that pleases the spirit.
Finally with regard to society, the ancient world has bequeathed to the new world two erroneous notions that undermine it and that will continue to undermine it for a long time.
The first: that society is a state separate from nature and born of a contract. This idea was not as erroneous in past times as it is currently. Rome and Sparta were indeed two associations of men with a common and determined goal, pillage, and they were not exactly societies, but rather armies.
The second, a corollary of the first: that law creates rights and that, consequently, the legislator and humanity have the same relationship with each [193] other as the potter and clay. Minos, Lycurgus, Solon, and Numa constructed the systems of society in Crete, Sparta, Athens, and Rome. Plato was the constructor of imaginary republics that were to serve as models for future teachers of peoples and fathers of nations.
So, and note this well, these two ideas form the special character and distinctive stamp of socialism in the unfavorable sense of the word and as a common label for all social utopias.
Whoever, not knowing that the social body is a set of natural laws, like the human body, dreams of creating an artificial form of society, and sets out to manipulate the family, property, rights, and humanity to suit his will, is a socialist. He is not engaging in physiology but in statuary. He does not observe; he invents. He does not believe in God but in himself. He is not a scholar; he is a tyrant. He is not serving mankind; he is making use of it. He is not studying its nature; he is changing it in accordance with Rousseau’s advice.7 He is drawing inspiration from antiquity and following on from Lycurgus and Plato. And, to sum it up, he has certainly obtained his baccalaureate.
People will tell me that I am exaggerating, that it is not possible for our studious youth to draw such deplorable opinions and sentiments from glorious antiquity.
And what do you want them to draw there, other than what is there? Make an effort of memory and remind yourself of your turn of mind when you left school and entered the wide world. Did you not burn with a desire to imitate the ravagers of the land and the agitators in the Forum? For my part, when I see the society of today cast young people in the tens of thousands into the mold of the Brutuses and the Gracchi, only to launch them, incapable of any honest work (opus servile), into the crowd and onto the street, I am astonished that they withstand the test. For a classical education is not only reckless enough to plunge us into Roman life, it does so while accustoming us to becoming enthusiastic about it, to considering it as a fine ideal for humanity, a sublime type that is placed too high for modern souls but which we should strive to imitate without ever claiming to attain it.8
[194]Is the objection raised that socialism has permeated the classes who do not aspire to the baccalaureate?
I will reply, with M. Thiers:9
Secondary education teaches ancient languages to the children of the affluent classes. . . . It is not just the words that are being taught to children when they are taught Greek and Latin, it is noble and sublime things (plunder, war, and slavery), it is the history of humanity through images that are simple, great, and indelible. . . . Secondary education shapes what are known as the enlightened classes of a nation. But, while the enlightened classes are not the nation in its entirety, they characterize it. Their vices, qualities, and good and evil tendencies are very soon those of the entire nation; they create the people themselves through the contagion of their ideas and sentiments.10
(Very good.)
Nothing is more true and nothing explains better the disastrous and artificial deviations of our revolutions.
“Antiquity,” adds M. Thiers, “let us dare to say to a century proud of itself, is the most beautiful thing in the world. Let us leave children in antiquity, sirs, as in a calm, peaceful, and healthy refuge that is destined to keep them fresh and pure.”
The calm of Rome! The peace of Rome! The purity of Rome! Oh! If the lengthy experience and remarkable good sense of M. Thiers has not been able to preserve him from such a strange fascination, how do you expect our ardent youth to stand up to it?11
[195]In the last few days, the National Assembly has witnessed a comic dialogue, certainly worthy of Molière’s brush.
M. Thiers, addressing M. Barthélemy Saint-Hilaire from the rostrum without a smile: “You are wrong, not from the artistic but from a moral point of view, to prefer Greek to Latin, in particular for the French nation, which is a Latin nation.”
M. Barthélemy Saint-Hilaire, also without a smile: “What about Plato!”
M. Thiers, still without a smile: “It has been a good thing and is a good thing to nurture Greek and Latin studies. I prefer Latin for a moral reason. But people have also wanted these poor young people to learn German, English, the exact sciences, physical sciences, history, etc.”
To know what is the case, that is evil. To become imbued with Roman behavior, that is morality!
M. Thiers is neither the first nor the only one to have succumbed to this illusion, I almost said to his mystification. May I be allowed to point out in a few words the deep-rooted impression (and what an impression!) that a classical education has made on literature, the moral code, and the politics of our country?
It is a picture that I have neither the leisure nor the aspiration to complete, for which writer would not have to be summoned to appear? Let us be content with a sketch.
I will not go back as far as Montaigne. Everybody knows that he was as Spartan in his vague intentions as he was far from this in his tastes.
As for Corneille, of whom I am a sincere admirer, I think he has rendered a sad service to the minds of the century by shrouding in fine verses and giving an appearance of sublime grandeur to sentiments that are forced, extravagant, fierce, and antisocial, such as the following:
- But to wish to immolate the thing you love in public,
- To devote oneself to combating another part of oneself
- . . . . . . .
- Such virtue belongs only to us . . .
- Rome has chosen my arm, I ask no questions,
- [196]
- With a joy that is as full and sincere
- As when I married the sister, I will fight the brother.12
And I admit that I feel disposed to share Curiace’s sentiment by applying it not to a particular fact but to the entire history of Rome, when he says:
- I thank the gods that I am not Roman
- To retain still some remnant of humanity.
Fénelon: These days communism horrifies us because it frightens us, but did not a long-standing attention to the ancients make a communist of Fénelon, a man whom modern Europe rightly regards as the finest example of moral perfection? Read his Telemachus, the book that people are quick to put into the hands of children. In it you will see Fénelon adopting the traits of wisdom itself to teach legislators. And along what lines does he organize his model form of society? On the one hand, the legislator thinks, invents, and acts; on the other, society, impassive and inert, allows itself to be acted upon. The moral motivation, the principle of action, is thus wrested from all men to be vested in a single man. Fénelon, the precursor of the boldest of our modern organizers, decides on the food, accommodation, clothing, games, and occupations of all the inhabitants of Salente. He tells them what they will be allowed to eat and drink, on what plan their houses should be built, how many rooms they should have, and how they will be furnished.
He says . . . but I will allow him to use his own words:
Mentor set up magistrates to whom merchants accounted for their assets, profits, expenditure, and enterprises. . . . Besides, there was total freedom of trade . . . He forbade all the goods from foreign countries that might introduce opulence and ease. . . . He cut off a remarkable number of merchants who sold fashioned fabrics. . . . He regulated the clothes, food, furniture, size, and decoration of houses for all the different statuses.
Arrange social condition by birth, he told the king . . . those of first rank after you will be clad in white, . . . those in the second rank in blue, . . . the third, in green, . . . the fourth in dawn yellow, . . . the fifth in pale red or pink, . . . the sixth in linen gray . . . and the seventh, who will be the lowest of the people in a color that is a mixture of yellow and white. These will be the clothes of the seven different conditions of free men. All [197] the slaves will be clad in brownish gray. One13 will never allow any change, either of the nature of the fabric or of the lines of the clothes.
He regulated the food eaten by citizens and slaves in the same way.
He then eliminated all soft and effeminate music.
He provided examples of simple, graceful architecture. He wanted each house of a certain standing to have a drawing room and peristyle with small rooms for all the people who were free.
Where other things were concerned, Mentor’s moderation and frugality did not stop him from authorizing all the large buildings intended for horse and chariot racing, or for wrestling and boxing.
Mentor considered that painting and sculpture were arts that could not be abandoned, but he did not wish many men in Salente to devote themselves to them.
Do we not recognize in this an imagination inflamed by the reading of Plato and the example of Lycurgus that is amusing itself by carrying out experiments on men as though they were base matter?
And let no one justify such wild fancies by saying that they are the fruit of excessive benevolence. This is just as true of all constructors and undoers of society.
Rollin: There is another man, almost equal to Fénelon in intellect and feeling and more involved than Fénelon in education, and that is Rollin. Well then! To what abject intellectual and moral depths did a lengthy study of the classics reduce this good man, Rollin! We cannot read his books without being overcome by sadness and pity. We do not know whether he is a Christian or a pagan, so impartial is he between God and the gods. The miracles of the Bible and the legends of heroic times evoke the same credulity in him. On his placid face we see the shadows of warlike passion constantly flicker; all he can speak of are javelins, swords, and catapults. For him, as for Bossuet, one of the most interesting social problems is knowing whether the Macedonian phalanx was better than the Roman legion. He praises the Romans for pursuing only sciences that had domination as their objective: eloquence, politics, and war. In his eyes, all other forms of knowledge are sources of corruption and are good only for turning men toward peace. For this reason he banishes them carefully from his colleges, to the applause of [198] M. Thiers. His only objects of veneration are Mars and Bellona, with just a passing thought for Christ. He is a sad plaything of the conventionalism that a classical education has caused to be predominant; he is so predisposed to admire the Romans that, where they are concerned, simply refraining from the greatest abominations is considered by him to be on a par with the greatest virtues. Alexander for having regretted that he assassinated his best friend and Scipio for not having enticed a wife from her husband are proof in his eyes of inimitable heroism. In short, while he has made a walking contradiction of each of us, he is certainly the perfect example of this.
It is clear that Rollin was enthusiastically in favor of communism and Spartan institutions. We should do him justice, however; his admiration is not total. He takes this legislator to task, with appropriate circumspection, for having stamped his work with four minor blemishes:
- 1. Idleness
- 2. Promiscuity
- 3. Infanticide
- 4. The mass murder of slaves
These four reservations once entered, this gentleman returns to the path of classical conventionalism and sees in Lycurgus not a man but a god, and finds his policy perfect.
The intervention of the legislator in everything appears to Rollin to be so essential that in all seriousness he congratulates the Greeks for the fact that a man named Pelasge came to teach them to eat acorns. Before that, he says, they grazed on grass like animals.
Elsewhere, he says:
“God was obliged to give the Romans a world empire as a reward for their great virtues, which only appear to be real. He would not have been just if He had awarded a lesser prize to these virtues, which are not actually real.”
Do we not clearly see conventionalism and Christianity in conflict in Rollin, a poor soul in torment? The spirit of this utterance is the spirit of all the works of the founder of teaching in France. Contradicting oneself, making God contradict himself, and teaching us to contradict ourselves is Rollin in a nutshell, and the baccalaureate in a nutshell.
If promiscuity and infanticide awaken Rollin’s scruples with regard to Lycurgus’s institutions, he is enthusiastic about everything else and even finds the means of justifying theft. This is how he does it. The stroke employed is curious and close enough to my subject to be worth mentioning.
[199]Rollin begins by stating in principle that the law creates property—a disastrous principle common to all constructors of society, and one that we will soon be finding in the mouths of Rousseau, Mably, Mirabeau, Robespierre, and Babeuf. Well, since the law is the justification for property, can it not also be the justification for theft? What can be opposed to this reasoning?
“Theft was allowed in Sparta,” says Rollin, while “it was severely punished by the Scythians. The reason for this difference is clear; it is because the law, which alone decides on the ownership and use of assets, in the case of the Scythians, had granted an individual no rights over the assets of another, whereas the law, in the case of the Spartans, did the exact opposite.”
Next, this good fellow, Rollin, in the heat of his plea in favor of theft and Lycurgus, invokes the most incontestable of authorities, that of God:
“Nothing is more commonplace,” he says, “than similar rights awarded over the assets of others; this is how God not only gave the poor the authority to pick grapes in the vineyards and glean in the fields and carry off entire sheaves, but He also gave any passersby without distinction the freedom to enter the vineyards of others as oft en as they chose and to eat as many grapes as they wanted in spite of the vineyard owner. God Himself gave the first reason for this. It is that the land of Israel was His and that the Israelites enjoyed the use of it only on this burdensome condition.”
People will doubtless say that this was Rollin’s personal doctrine. That is exactly what I am saying. I am trying to show to what state of moral infirmity the habitual study of the frightful form of society in classical times can reduce the finest and most honest minds.
Montesquieu: It has been said of Montesquieu that he rediscovered the just credentials of the human race. He is one of the great writers whose every sentence has the force of authority. God forbid that I should wish to diminish his fame! But what should we not think of a classical education if it has succeeded in misleading this noble intelligence to the extent of causing him to admire the most barbarous of institutions in antiquity?
The ancient Greeks, imbued with the need for the peoples who lived under a popular government to be raised in virtue, established singular institutions to inspire it. The laws of Crete were the origin for those of Sparta and those of Plato corrected them.
I would ask people to give some attention to the extent of the genius needed by these legislators to see that, by upsetting all the accepted customs, by confusing all the virtues, they were revealing their wisdom to the universe. Lycurgus, combining robbery with the spirit of justice, the most [200] severe slavery with the heights of freedom, the most atrocious sentiments with the greatest moderation, gave stability to his city. He appeared to remove all its resources from it, its arts, trade, money, and city walls. People had ambition there with no hope of being better off; they had natural sentiments and they were neither child, husband, nor father there. Even modesty was removed from chastity. It is along these paths that Sparta was led to greatness and glory, but with such infallibility in its institutions that nothing was obtained from it by winning battles if it was not possible to remove its policies. (Spirit of Laws, book 4, chapter 8)14
Those who will wish to found similar institutions will establish the common ownership of assets as in Plato’s republic, the respect that he demanded for the gods, the separation from foreigners in order to preserve behavior, and with the city carrying out trade and not the citizens. They will supply our arts without our luxury and our needs without our desires. . . .
Montesquieu explains in these words the great influence that the ancients attributed to music:
I believe that I can explain this: You have to get it into your head that in Greek towns, especially those whose principal object was war, all work and all the occupations that might lead to earning money were regarded as unworthy of a free man. “Most arts,” said Xenophon, “corrupt the body of those that exercise them. They oblige people to sit in the shade or close to the fire; such people have no time either for their friends or for the republic.” It was only in the corruption of some democracies that craftsmen managed to become citizens. This is what Aristotle teaches us, and he claims that a good republic will never give them the right of citizenship.
Agriculture was still a servile activity, and it was normally a conquered people that carried it out: the Helots in Sparta, the Periecians in Crete, the Penestes in Thessalonia, and other enslaved peoples in other republics.
In sum, all commercial exchange was infamous in the eyes of the Greeks. It would have implied that a citizen had rendered services to a [201] slave, a tenant, or a foreigner, and the very idea shocked the spirit of freedom in Greece. Thus Plato, in his Laws, wanted a citizen who engaged in commercial exchange to be punished.
The situation in the Greek republics was therefore very embarrassing: it was thought improper for citizens to work in trade, agriculture, or the arts, yet also wrong for them to be idle. An acceptable occupation was identified in the exercises relating to gymnastics and to war. The polity gave them no other choices. The Greeks, therefore, have to be regarded as a society of athletes and warriors. However, these activities, so suited to producing people that were hard and barbarous, needed to be tempered by others that made their behavior gentler. Music, which reaches the spirit through the organs of the body, was very suited to this. (Spirit of Laws, book 5)15
This is the notion that a classical education gives us of freedom. This is now how it teaches us to understand equality and thrift:
Although in a democracy genuine equality is the soul of the state, this is, however, so hard to establish that punctilious conformity in this regard is not always suitable. All that is necessary is for a tax to be established that reduces or sets the differences at a given level, following which it is up to specific laws to equalize, so to speak, inequalities, through the charges it imposes on the rich and the relief it grants to the poor. (Spirit of Laws, book 5, chapter 6)16
In a good democracy, it is not enough for tracts of land to be equal; they have to be small as in Roman times. . . .
Since equality in wealth encourages thrift, thrift maintains equality in wealth. Although these things are different, they are such that one cannot exist without the other. (Spirit of Laws, chapter 6)17
The Samnites had a custom which, in a small republic, and especially in a situation like theirs, was bound to produce admirable effects. All the young men were gathered together and judged. The one declared the best of all took any girl he wanted as his wife, the runner-up then made his choice, and so on down the line. . . . It would be difficult to imagine a reward that was nobler or greater, less of a burden to a small state, and more capable of affecting either sex.
[202]The Samnites were descendants of the Spartans, and Plato, whose institutions are simply the perfection of the laws of Lycurgus, produced a law that was more or less similar. (Spirit of Laws, book 7, chapter 16)18
Rousseau: No man has had such influence on the French Revolution as Rousseau. “His work,” says Louis Blanc, “was on the table of the Committee of Public Safety.” “These paradoxes,” he says elsewhere, “which his century took to be literary daring, were shortly to resound in the nation’s assemblies in the form of dogmatic truths that cut like a sword.” And in order for the moral bond linking Rousseau to antiquity not to be overlooked, the same panegyrist adds, “His style recalled the touching and fiery language of a son of Cornelia.”
Besides, who does not know that Rousseau was the most fervent admirer of the ideas and behavior conventionally attributed to the Romans and Spartans? He himself said that reading Plutarch made him what he was.
His first article was directed against human intelligence. In the very first pages he exclaimed:
Can I forget that it was in the bosom of Greece that this city, as famous for its happy ignorance as for the wisdom of its laws, was seen to rise, this republic of demigods rather than men, so superior did their virtues seem to be over those of humanity? Oh Sparta! The eternal opprobrium of a vain doctrine! While the vices encouraged by the fine arts were introduced into Athens, while a tyrant so carefully assembled the works of the prince of poets, you cast out from your walls the arts and artists, the sciences and scholars! (Discourse on the Re-establishment of the Sciences and Arts)19
In his second work, Discourse on the Inequality of Conditions, he railed with even greater vehemence against all the bases of society and civilization. This is why he believed himself to be the mouthpiece of ancient wisdom:
I will picture myself in the Lyceum in Athens, repeating my masters’ lessons, with Plato and Xenocrates as my judges and the human race as my audience.20
The predominant idea in this famous discourse may be summarized thus: The most terrible fate awaits those who, unfortunate enough to be born after [203] us, add their knowledge to ours. The development of our faculties has already made us very unhappy. Our fathers were less unhappy, as they were more ignorant. Rome was close to perfection; Sparta had achieved it, as far as perfection is compatible with a social state. But the real good fortune for man is to live in the woods, alone, naked, with no bonds, no affections, no language, no religion, no ideas, no family, and in short in a state in which he is so close to an animal that it is highly unlikely that he stands upright and that his hands are not feet.
Unfortunately, this golden age has not lasted. Men have gone through an intermediate phase, which nevertheless has not been without its charms:
For as long as they were content with their rustic cabins, for as long as they were content with sewing their clothes of skins with bone needles, adorning themselves with feathers and shells, painting their bodies in a variety of colors . . . for as long as they occupied themselves only with work that a single person could do, they lived free, healthy, good, and happy.21
Alas, they were not able to stop at this first degree of culture:
From the moment that a man needed help from another [here is society making its disastrous appearance]; as soon as it was seen to be useful for one person to have enough provisions for two, equality disappeared, property was introduced, and work became necessary. . . .
Metallurgy and agriculture were the two arts whose invention brought about this great revolution. For the poet, it is gold and silver, for the philosopher, it is iron and wheat that civilized men and caused the perdition of the human race.22
It was therefore necessary to escape from the state of nature to enter into society. This gave rise to the third of Rousseau’s works, the Social Contract.
It is not part of my subject to analyze this work here. I will limit myself to pointing out that Greek and Roman ideas are echoed on each page.
Since society is a pact, each person has the right to make his own stipulations.
It is up to those who associate, and to them alone, to regulate the conditions of society.23
But that is not easy.
How will they regulate them? Will it be by common accord, by sudden inspiration? . . . How will a blind throng, who oft en do not know what they want, carry out on their own such a grand and difficult enterprise as a system of legislation? . . . This is why a legislator is needed.24
Thus, universal suffrage is conjured away in practice as soon as it is acknowledged in theory.
For how will this legislator act, when in all respects, he has to be an extraordinary man who, since he is daring to undertake the establishment of a people, has to consider himself capable of changing human nature and of modifying man’s physical and moral constitution, who must, in short, invent the machine of which men are the material.
Rousseau clearly proves here that the legislator cannot count either on force or persuasion. How does he solve this problem? By deception.
This is what forced the fathers of nations of all eras to have recourse to the intervention of heaven and to honor the gods for their own wisdom . . . This sublime reason, which rises above common souls, is the one whose decisions are placed by the legislator in the mouths of the immortals in order for divine authority to sweep along those whom human prudence might not move. But it is not given to everyone to make the gods speak.25 (The gods! The immortals! A classical reminiscence)
Like Plato and Lycurgus, his masters, like the Spartans and Romans, his heroes, Rousseau gave the words work and freedom a meaning that expressed two incompatible ideas. In the social state a choice had to be made, either to renounce freedom or to die of hunger. There was, however, a solution to the problem and that was slavery.
As soon as a people provides itself with representatives, it is no longer free, it no longer exists!
In Greece, all the people had to do, they did it themselves. They were constantly assembled on the square; slaves did their work; their great preoccupation was freedom. Once they no longer had the same advantages, how were they to retain the same rights? You value your material advantage more than your freedom and you fear slavery far less than destitution.
[205]What! Freedom is maintained only with the support of servitude? Perhaps. The two extremes meet. Everything outside nature has its disadvantages, and civil society more than the rest. There are situations so unfortunate that you can save your freedom only at the expense of that of others, and in which citizens can be in the fullest sense free only if slaves are in the fullest sense enslaved. This was the situation in Sparta. For you, a modern people, you do not have slaves, you are yourselves slaves, etc.
This is genuine classical conventionalism. The ancients were propelled into procuring slaves for themselves by their brute instincts. But since it is a rank preconception, a college tradition, to find everything they did beautiful, subtle reasoning on the quintessence of freedom is attributed to them.
The contrast that Rousseau established between the state of nature and the social state is as disastrous to private as to public morals. According to this mode of thinking, society is the result of a pact that gives rise to the law which, in turn, creates justice and morality out of nothing. In the state of nature there is neither morality nor justice. Fathers have no duty to their sons nor sons to their fathers, husbands to their wives nor wives to their husbands.
It follows from this that if the social pact, once concluded, is dissolved, every thing collapses with it: society, law, morality, justice, and duty. “Each person,” says Rousseau, “is entitled to his original rights and regains his natural freedom while losing the conventional freedom for which he renounced it.”26
However, it should be noted that very little is needed to dissolve the social pact. This happens every time an individual breaks his undertakings or refuses the jurisdiction of a particular law. If a condemned man escapes when society tells him, “It is expedient for you to die,” if a citizen refuses to pay taxes, if an accountant puts his hand into the public till, at that very instant the social contract is broken, all moral duty ceases, justice no longer exists, and fathers, mothers, children, and spouses owe nothing to each other. Each person has an unlimited right to anything that takes his fancy; in short, the entire population reverts to a state of nature.
I leave you to imagine the ravages that doctrines like this would have in revolutionary times.
They are no less disastrous for private morals. What young man entering the world with enthusiasm and ambition does not say to himself, “The impulses [206] of my heart are the voice of nature, which is never wrong. The institutions that bar my route come from men and are only arbitrary conventions to which I have not contributed. By crushing these institutions underfoot, I will have the twin pleasure of satisfying my leanings and thinking myself a hero.”
Do I have to remind you here of this sad and painful page of the Confessions?27
My third child was therefore placed in the orphanage along with the two others. This also happened for the next two, since I have had five in all. This arrangement seemed to me to be so good that if I did not boast about it, it was solely out of deference to their mother . . . By entrusting my children to state education . . . I considered myself to be a member of Plato’s republic!
Mably: No quotations are needed to demonstrate the Greek and Roman mania of Abbé Mably. A narrow-minded man, with a soul more straight-laced and a less-sensitive heart than Rousseau, he also had ideas that allowed for a reduced range of temperaments and of intellectual content. This made him overtly platonic, that is to say, communistic. Convinced, like all the classicists, that humanity is the raw material for manufacturers of institutions, he preferred to be one of the manufacturers rather than part of the raw material. Consequently he set himself up to be a legislator. As such, he was first called upon to establish Poland and he does not appear to have succeeded in this. Next, he offered Anglo-Americans the black broth of the Spartans, which he could not persuade them to adopt. Outraged by this blindness, he foretold the fall of the Union and gave it no more than five years of existence.
May I be allowed to interject a reservation here? By quoting the absurd and subversive doctrines of such men as Fénelon, Rollin, Montesquieu, and Rousseau, I certainly do not wish to state that we do not owe pages full of reason and morality to these great writers. However, what is mistaken in their books arises from classical conventionalism and what is true arises from another source. It is precisely my thesis that teaching which is exclusively based on Greek and Latin literature makes us all living contradictions. It draws us violently back to a past that it glorifies down to its very horrors, [207] while Christianity, the spirit of the century, and a fund of good sense that never loses its rights show us an ideal for the future.
I will spare you Morelly, Brissot, and Raynal, who justify—what am I saying?—who praise to the skies war, slavery, clerical imposture, the community of possessions, and idleness. Who could fail to see the impure source of such doctrines? This source, I really must name it again, is the classical education that is imposed on us all by the baccalaureate.
It is not only into literary works that the calm, peaceful, and pure ancient world has poured its poison, but also into those of legal experts. I defy anyone to find in any of our lawyers anything that approaches a reasonable notion of the right to property. And what can legislation from which such a notion is absent be like? Recently I happened to open the Treatise on the Law of Nations by Vattel.28 I saw that the author had devoted a chapter to examining the following question: Is it permissible to carry off women? It is clear that the legend of the Romans and Sabines has bequeathed to us this precious morsel. After having weighed the pros and cons with the utmost seriousness, the author opted for the affirmative. He owed this to the glory of Rome. Were the Romans ever wrong? A form of conventionalism forbids us to think this; they are Romans and that is enough. Burning, pillaging, or kidnapping, anything that comes from them is calm, peaceful, and pure.
Will it be claimed that these are only personal opinions? Our society would be very fortunate if the uniform action of a classical education reinforced by the approbation of Montaigne, Corneille, Fénelon, Rollin, Montesquieu, Rousseau, Raynal, and Mably did not contribute to shaping the general opinion. This is what we will see.
In the meantime, we have proof that the communist idea took hold not only of a few individuals but also of certain public bodies, wholesale, including the most learned and influential. When the Jesuits wanted to organize a social order in Paraguay,29 what plans did their previous studies suggest to them? Those of Minos, Plato, and Lycurgus. They established communism, which in turn did not fail to produce its sorry consequences. The Indians were reduced to several degrees below the state of savages. In spite of this, such was the inveterate predisposition of the Europeans in favor of communist institutions, constantly presented as being examples of perfection, that [208] the happiness and virtue of these nameless beings (for they were no longer men) who were vegetating under the wing of the Jesuits were praised far and wide.
Did Rousseau, Mably, Montesquieu, and Raynal, these great extollers of ideological crusades, check the facts? Not in the slightest. Could Greek and Latin literature be mistaken? Could anyone go wrong with Plato as a guide? Therefore, the Indians in Paraguay were happy or ought to have been, under pain of being unhappy against all the rules. Azara, Bougainville, and other travelers set off under the influence of these preconceived ideas to admire these marvels. First of all, in spite of the sorry reality being glaringly obvious, they could not believe it. They nevertheless had to accept the evidence and finally recorded, to their great regret, that communism, an attractive illusion, is an appalling reality.
The logic is rock solid. It is perfectly clear that the authors I have just quoted did not dare to take their doctrine to its limit. Morelly and Brissot took it upon themselves to repair their inconsistency. As true followers of Plato, they openly preached the community of possessions and women and this, let us note, by constantly quoting the examples and precepts of this fine ancient world that everyone is supposed to admire.
Such was the state to which education as imparted by the clergy had reduced public opinion in France with regard to family, property, freedom, and society when the Revolution broke out. The causes of the Revolution probably had no connection with a classical education, but can we doubt that this form of education contributed a host of mistaken ideas, sadistic feelings, subversive utopias, and deadly experimentation? Read the speeches made in the Legislative Assembly and the Convention. They are in the language of Rousseau and Mably. They are just tirades in favor of, and invocations and exclamatory addresses to, Fabricius,30 Cato, the two Brutuses, the Gracchi, and Catiline. Is an atrocity going to be committed? There is always the example of a Roman to glorify it. What education has instilled in the mind is translated into act. Sparta and Rome are agreed on as models and so they must be imitated or parodied. One person wants to establish the Olympic Games, another the agrarian laws, and a third black broth in the streets.
I cannot hope to make a comprehensive commentary here on a question worthy of an accomplished pen devoting something more to it than a pamphlet: [209] “On the influence of Greek and Latin literature on the spirit of our revolutions.” I have to limit myself to a few outlines.
Two great figures dominate the French Revolution and appear to personify it, Mirabeau and Robespierre. What was their doctrine on property?
We have seen that peoples who, in antiquity, had based their means of existence on depredation and slavery were unable to give property its proper principle. They were obliged to consider it a conventional fact and based it on the law, which enabled them to include slavery and theft in it, as Rollin so naively explains.
Rousseau had also said, “Property is a human convention and institution, whereas freedom is a gift of nature.”
Mirabeau professed the same doctrine: “Property,” he said, “is a social creation. Laws do not just protect or maintain property; they give rise to it, determine it, and give it the rank and scope that it occupies in the rights of citizens.”31
And when Mirabeau expressed himself thus, it was not to establish a theory. His real aim was to commit the legislator to limiting the exercise of a right that was within his discretion, since he had created it.
Robespierre echoed Rousseau’s definitions.
In defining freedom, this primary need of man, the most sacred of the rights he holds from nature, we have rightly said that its limit is the right of others. Why have you not applied this principle to property, which is a social institution, as though the laws of nature were less inviolable than the conventions of men?32
Following this preamble, Robespierre moves on to the definition.
Property is the right held by each citizen to enjoy and dispose of possessions that are guaranteed to him by the law.33
Here then is the clear opposition between freedom and property. They are two rights whose origin is different. One comes from nature; the other is a social institution. The first is natural, the second conventional.
[210]But who makes the law? The legislator. He can therefore give the exercise of the right to property the conditions that suit him, since he confers it.
Robespierre also hastens to deduce the rights of labor, the right to assistance, and progressive taxes from his definition.
Society is obliged to provide for the subsistence of all of its members, either by procuring work for them or by assuring the means of existence for those who cannot work.
The assistance required for indigence is a debt of the rich to the poor. It is up to the law to determine the manner in which this debt must be settled.
Citizens whose income does not exceed what is necessary for their subsistence are exempted from contributing to public expenditure. The others have to support them progressively, in accordance with the extent of their wealth.34
Robespierre, said M. Sudre, thus adopted all the measures that, in the minds of their inventors as in reality, constitute the transition from property to communism. By applying Plato’s Treatise on Laws, he was unconsciously moving toward the achievement of the social state as described in Plato’s book called the Republic.
(We know that Plato wrote two books, one—the Republic—to point out ideal perfection, the community of possessions and women, and the other—the Treatise on Laws—to teach the means of transition.)
Robespierre may be considered, besides, as an admirer of the calm, peaceful, and pure ancient world. His speech, even on property, abounds in such declamations as “Aristide would not have envied the treasures of Crassus!”35 “Fabricius’s thatched cottage is no whit less enviable than Crassus’s palace!” etc.36
In principle, once Mirabeau and Robespierre decided to give the legislator the power to determine the extent of the right of property, it mattered little where they decided it was appropriate to draw the line. It might have suited them to go no further than the right to work, the right to assistance, and progressive taxes. However, others, more consistent, did not stop there. If the law that creates property and disposes of it can move one step toward [211] equality, why can it not move two? Why would it not achieve absolute equality?
For this reason, Robespierre was surpassed by Saint-Just, as had to happen, and Saint-Just by Babeuf, as had to happen too. This path has just one logical terminus. It was highlighted by the divine Plato.
Saint-Just, . . . but I am becoming mired in the question of property and forgetting that I have undertaken to show how a classical education has perverted all moral notions. Assuming that the reader will believe me when I say that Saint-Just surpassed Robespierre along the path to communism, I will return to my subject.
First of all, you have to know that Saint-Just’s errors were due to a study of the classics. Like all men of his time and ours, he was imbued with classicism. He thought he was a Brutus. Kept far from Paris by his party, he wrote:
Oh god! Must Brutus languish, forgotten, far from Rome? My decision has been made, however, and if Brutus does not kill the others, he will kill himself.37
Kill! It appears that this is the destiny of man here below.
All Greek and Latin scholars agree that the principle of a republic is virtue and God alone knows what they mean by this word! This is why Saint-Just wrote:
A republican government has virtue as its principle, if not terror.38
There is another dominant opinion in the ancient world: that work is something squalid. Saint-Just condemned it in these words:
[212]Having a job is not the attribute of a proper citizen. The hand of man is made only for the land and for arms.
And it was so that no one would be able to abase himself by carrying out a trade that Saint-Just wished to distribute land to everyone.
We have seen that, according to the views of the ancients, the legislator is to humanity what the potter is to clay. Unfortunately when this idea dominates, everyone wants to be the potter and no one wants to be clay. We can well imagine that Saint-Just saw himself in the leading role:
The day I am convinced that it is impossible to give the French manners that are gentle, sensitive, and inexorable toward tyranny and injustice, I will stab myself.
If there were manners, all would be well. Institutions are needed to purify them. To reform manners, we have to begin by meeting the requirements of need and personal interest. Some land has to be given to everyone.39
The children are clothed in cotton all the year round. They sleep on rush mats for eight hours. They are fed in the community and live only on roots, fruit, vegetables, bread, and water. They are allowed to eat meat only after the age of sixteen.
Men aged twenty-five will be obliged to declare each year in the temple the names of their friends. He who abandons his friend without good reason will be banished!40
In this way, Saint-Just, echoing Lycurgus, Plato, Fénelon, and Rousseau, attributes to himself more rights and powers over the manners, feelings, wealth, and children of the French than all the French have as a group. How small humanity is compared to him! Or rather it lives only in him. His brain is the brain and his heart the heart of the human race.
This was, therefore, the course stamped on the revolution by Greek and Latin conventionalism. Plato pointed out the ideal. In the seventeenth and eighteenth centuries, both clergy and laity began to celebrate this marvel. When the time came for action, Mirabeau took the first step, Robespierre the second, Saint-Just the third, Antonelle the fourth, and Babeuf, more logical than all his predecessors, stood to attention at the final step, absolute communism, pure Platonism. I ought to quote his writings here but will [213] limit myself to saying that he signed them Caius Gracchus,41 which is highly characteristic.
The spirit of the Revolution from the point of view that concerns us can be summed up in a few quotations. What did Robespierre want? “To raise men’s souls to the height of the republican virtues of the peoples of the ancient world” (3 nivôse year III).42 What did Saint-Just want? “To offer us the happiness of Sparta and Athens” (23 nivôse year III). He also wanted “all citizens to carry beneath their tunic Brutus’s dagger” (idem). What did the bloodthirsty Carrier want? “That all young men in future should envisage the live coals of Scaevola, the hemlock of Socrates, the death of Cicero, and the sword of Cato.” What did Rabaut Saint-Etienne43 want? “Following the principles of the Cretans and Spartans, the state should take control of man from the cradle and even before birth” (16 December 1792). What did the Quinze-vingts44 section want? “A church to be consecrated to freedom and an altar to be raised on which a perpetual fire would burn, maintained by young vestals” (21 November 1794 nivôse). What did the entire Convention want? “Our communes to include only Brutuses and Publicolas in the future” (19 March 1794).
All these sectarians were nevertheless of good faith, and this made them all the more dangerous, since sincerity in error is fanaticism and fanaticism is a formidable power, especially when it acts upon masses prepared to suffer its action. Widespread enthusiasm in favor of a social stereotype cannot always be without issue, and public opinion, whether enlightened or misled, is nonetheless the ruler of the world. When one of these fundamental errors, such as the glorification of the ancient world lodged through teaching in all brains with the first glimmers of intelligence, is established there in a state of conventionalism, it tends to pass from minds to actions. Should a revolution then ring out the time to undertake experiments, who knows under what terrible name the person who appeared a hundred years earlier under the name of Fénelon would appear? Had he set his ideas out in a novel he would die for them on the scaffold; were he a poet, he would make himself a martyr; had he amused society, he would overturn it.
[214]However, in reality, there is a power that is superior to the most universal conventionalism. When education has deposited in the social body a disastrous seed, the social body has in it a force for self-preservation, a vis medicatrix,45 which makes it rid itself over time, and through suffering and tears, of the harmful germ.
Therefore, when communism had sufficiently terrified and compromised society, a reaction became inevitable. France started to retreat into despotism. In its ardor it might have made little even of the legitimate conquests of the Revolution. It had the consulate and the empire. But alas! Do I need to show that the infatuation with Rome followed France into this new phase? The ancient world is forever there to justify all forms of violence. From Lycurgus to Caesar, how many models there are to choose from! Therefore, and I am here borrowing M. Thiers’s language, “We who, after being Athenians with Voltaire and fleetingly wishing to be Spartans under the Convention, became the soldiers of Caesar under Napoléon.” Can we fail to see the stamp that our devotion to Rome has left on this period? And, goodness me, this stamp is everywhere. It is in the edifices, the monuments, the literature, and the very fashions of imperial France. It is in the ridiculous names imposed on all our institutions. It is doubtless not an accident that we saw consuls, an emperor, senators, tribunes, prefects, senatus-consultes, eagles, Trajan columns, legions, Champs de Mars [Martian fields], prytaneums [military schools], and lycées spring up everywhere.
The conflict between the revolutionary and counterrevolutionary principles seemed to be bound to end with the July Days in 1830. Since that time, the intellectual forces of this country have turned toward the study of social matters, which is nothing if not natural and useful. Unfortunately, the university gives the first impetus to the progress of the human mind, and it is still directing the mind toward the poisoned sources of the ancient world, to the extent that our unfortunate country is reduced to repeating its past and experiencing the same trials. It seems that it is condemned to go round in the circle of utopia, experimentation, reaction—literary Platonism, revolutionary communism, military despotism—Fénelon, Robespierre, Napoléon! Can things be any different? Instead of seeking to discover and reveal the natural laws of society, the young generation from whom the ranks of literature and journalism are recruited is content to take over as a basis this Greco-Roman axiom: Social order is a creation of the legislator. A dreadful [215] point of departure, which opens a career of unlimited scope to the imagination and is nothing but the eternal spawning of socialism. For, if society is an invention, who would not want to be the inventor? Who would not want to be Minos, Lycurgus, Plato, Numa, Fénelon, Robespierre, Babeuf, Saint-Simon, Fourier, Louis Blanc, or Proudhon? Who does not think it glorious to establish a people? Who does not delight in the title of Father of the Nations? Who does not aspire to combine the family and property like chemical elements?
But to give rein to fantasy elsewhere than in the columns of a journal, you have to hold power and occupy the focal point to which all the threads of public power lead. It is the essential preamble to any experimentation. Each sect, each school, will therefore do its utmost to remove the dominant school or sect from the government, and thus, under the influence of classical teaching, social life can be only an interminable sequence of struggles and revolutions whose object is to settle the question of which utopian will have the power to carry out experiments on the people as though they were base material!
Yes, I accuse the baccalaureate of shaping, as though wantonly, all French youth for socialist utopias and social experimentation. And doubtless that is the reason for a very strange phenomenon, the incapacity to refute socialism shown by the very people who think they are threatened by it. Men from the bourgeoisie, landowners and capitalists, the systems of Saint-Simon, Fourier, Louis Blanc, Pierre Leroux, and Proudhon, are only doctrines, after all. You say they are wrong. Why do you not refute them? Because you have drunk from the same cup, because frequent reading of the ancients and your conventional liking for everything that is Greek or Roman has inoculated you with socialism.
“Your mind is somewhat infatuated with it.”
The leveling of your wealth as a result of tariffs, your law on government assistance, your calls for free education, your subsidies to encourage industry, your centralization, your faith in the state, your literature, your theater, everything demonstrates that you are socialists. You differ from the apostles in degree but you are on the same slope. This is why, when you feel yourself to be outdistanced, instead of refuting these beliefs—which you do not know how to do and which you cannot do without condemning yourselves—you wring your hands, tear out your hair, call for retrenchment, and exclaim piteously, “France is going to the dogs.”
No, France is not going to the dogs. What is happening is that while [216] you are concentrating on your sterile lamentations, the socialists are refuting themselves. Their sages are in open warfare. We have seen the end of the Fourierist phalanxes, and of the triad, and of the national workshop, and your leveling of conditions by law will die in the same way. What will still be there? Free credit. Why do you not show how absurd it is? Alas, it is you who invented it. You preached it for a thousand years. When you were unable to stifle personal interest, you regulated it. You taxed it to the maximum, giving rise to the thought that property is a creation of the law, which is exactly the view of Plato, Lycurgus, Fénelon, Rollin, and Robespierre and which is, and I am not afraid to state this, the essence and quintessence not only of socialism but of communism. Do not sing the praises to me therefore of a form of education that has taught you nothing of what you need to know and which leaves you astounded and struck dumb when faced with the first illusion it has pleased a madman to imagine. You are not capable of opposing error with truth; at least let the errors mutually destroy each other. Be careful not to gag the utopians, thus placing their propaganda on the pedestal of persecution. The minds of the working masses, if not the middle classes, have become absorbed with the major social questions. They will solve them. They will eventually find other definitions for family, property, freedom, justice, and society than those your education has given you. They will overcome not only the socialism that speaks its name but also the socialism that is unaware of what it is. They will kill off your universal intervention of the state, your centralization, your artificial unity, your system of protection, your official philanthropy, your laws on usury, your barbarous diplomacy, and your monopolized system of education.
This is why I state that France is not going to the dogs. It will emerge from the combat happier, more enlightened, better organized, greater, freer, more moral, and more religious than you have made it.
After all, and note this well, when I rail against classical studies, I am not asking for them to be forbidden; I am asking only that they should not be imposed. I am not calling on the state to align everyone with my views but to say, “Do not subject me to the opinion of others.” There is a great difference, and everyone should be quite clear on this.
M. Thiers, M. de Riancey, M. de Montalembert, and M. Barthélemy Saint-Hilaire consider that the Roman atmosphere is excellent for shaping the hearts and minds of the young. So be it. Let them immerse their children in it; I leave them free to do this. But they should leave me free also to keep my children away from it as from pestilent air. You gentleman who [217] would regulate us, what you consider to be sublime I consider odious; what satisfies your consciences frightens mine. Well then, follow your inspirations but allow me to follow mine. I am not constraining you; why do you constrain me?
You are perfectly convinced that from the social and moral point of view, the finest ideal is in the past. For my part, I see it in the future. “Let us dare to say this to a century that is proud of itself,” said M. Thiers. “The ancient world is what is finest in the world.” For my part, I have the good fortune not to share this sorry opinion. I use the term sorry because this opinion implies that, because of a fatal law, humanity is constantly deteriorating. You situate perfection at the dawn of time while I situate it at the end. You believe society to be retrograde; I consider it to be progressive. You believe that our opinions, ideas, and manners should be cast in the classical mold as far as possible; in vain do I study the social order of Sparta and Rome, all I find in it are violence, injustice, imposture, perpetual wars, slavery, turpitude, erroneous policy, erroneous morals, and an erroneous religion. What you admire, I abhor. But in the end, you keep your judgment and leave me mine. We are not here as lawyers, on the one hand pleading in favor of a classical education and on the other against, before an assembly responsible for making a decision that will conflict either with my conscience or with yours. I am asking the state only for neutrality. I am asking for freedom both for you and for me. I have at least the advantage of impartiality, moderation, and modesty over you.
Three sources of education are going to open up: the state, the clergy, and the teachers who claim to be free.
What I am asking for is that these teachers should be free in effect to try out new and fruitful avenues in their career. Let the university teach what is dear to it, Greek and Latin. Let the clergy teach what it knows, Greek and Latin. Let them both produce Platonists and tribunes, but do not let them stop us from forming, through other processes, men for our country and our century.
For if this freedom is forbidden to us, what bitter derision it will be when you come forward to say to us at every moment, “You are free!”
During the session on 23 February, M. Thiers came to tell us for the fourth time:
I will forever repeat what I have already said: The freedom established by the law we have drafted is freedom in accordance with the Constitution.
[218]I challenge you to prove otherwise. Prove to me that it is not freedom; for my part I uphold the view that no other is possible.
In former times, no one could teach without the authority of the government. We have eliminated prior authorization; anyone can teach.
In former times it was said: “Teach this, do not teach that.” Today we say: “Teach anything you wish to teach.”
It is a painful thing to hear such a challenge addressed to us and to be condemned to silence. If the weakness of my voice did not forbid me to take the rostrum, I would have replied to M. Thiers.
Let us then see what this freedom that you say is so sincere amounts to, from the point of view of teachers, fathers of families, and society in general.
By virtue of your law, I found a college. With the cost of board and lodging, I have to purchase or rent premises, provide for feeding the students, and pay the teachers. However, next door to my college there is a lycée. It does not have to concern itself with premises and teachers. The taxpayers, including me, pay for these. It can therefore lower the cost of board and lodging to the extent that it makes my enterprise impossible. Is this freedom? One resource remains to me, however; that is to give instruction that is so much better than yours, so sought after by the public that it comes to me in spite of the relative expensiveness that you have forced on me. But now we meet and you say to me, “Teach whatever you like, but if you stray from my syllabus, all forms of professional career will be closed to your pupils.” Is this freedom?
Now I am imagining that I am the father of a family and enroll my sons in a free institution. Into what position am I put? As a father, I pay for the education of my children without any help from anyone. As a taxpayer and Catholic, I am paying for the education of other people’s children since I cannot refuse to pay the tax that subsidizes the lycées; nor can I even excuse myself during Lent from casting a coin into the friar’s collection box to support the seminaries. In this, at least, I am free; but am I free with regard to taxes? No, no, tell me that you are acting in solidarity in the socialist meaning of the word, but do not pretend to be furthering freedom.
And that is just the short side of the question. Here is something more serious. I give preference to free education since your official type of education (to which you make me contribute without drawing any benefit from it) appears to me to be communist and pagan. My conscience is averse to my sons’ being indoctrinated with Spartan and Roman ideas which, in my view at least, are nothing other than glorified violence and robbery. Consequently, [219] I am obliged to pay board and lodging for my sons and taxes for the sons of others. And what do I then find? I find that your mythological and warlike teaching has been indirectly imposed on free colleges through the ingenious mechanism of your degrees and that I have to bend my conscience to suit your views under pain of making my children pariahs of society. You have told me four times that I am free. You may tell me this a hundred times, and a hundred times I will answer, “I am not.”
Be inconsistent since you cannot avoid it, and I will concede that in the current state of public opinion, you will not be able to close the official colleges. But set a limit to your inconsistency. Do you not complain every day about the attitudes of the young? About their socialist tendencies? About their estrangement from religious ideas? About their passion for warlike expeditions, a passion so fierce that, in our deliberating assemblies, it is scarcely permissible to utter the word peace, and the most ingenious oratorical precautions have to be taken to mention justice when it comes to foreign parts? Such deplorable dispositions doubtless have a cause. At the worst, is it not possible that your mythological, platonic, warlike, and factious form of education has something to do with this? I am not telling you to change it, however; that would be to expect too much of you. But I tell you: Since you allow so-called free schools to spring up next to your lycées in conditions that are already very difficult, allow them, at their risk and peril, to try the paths of Christianity and science. The experiment is worth trying. Who knows? Perhaps it will mark progress. And you want to snuff it out at birth!
Last, let us examine the question from the point of view of society, and first of all let us note that it would be strange for society to be free with regard to teaching if teachers and fathers of families were not.
The first sentence of M. Thiers’s report on secondary education in 1844 proclaimed this terrible truth:
“State education is perhaps the greatest interest of a civilized nation and, for this reason, is the greatest object of the ambition of the parties.”46
It appears that the conclusion to be drawn from this is that a nation that does not want to be the prey of the parties has to hasten to suppress state education, that is to say, by the state, and to proclaim freedom of education. If [220] there is a form of education entrusted to the government, the parties would have one more reason to seek to take hold of power since, at the same time, they would be taking hold of education, the greatest object of their ambition. Does the hunger to rule not arouse enough covetousness already? Does it not engender enough conflicts, revolutions, and disorders? And is it wise to stir it up further through the bait of such high influence?
And why do the parties seek to direct study? Because they know this saying by Leibnitz, “Make me the master of education and I will take charge of changing the face of the world.” Education by government is therefore education by one party, by a sect that is temporarily triumphant; it is education for the benefit of one idea, one exclusive approach. “We have fashioned the Republic,” said Robespierre; “It remains for us to fashion republicans,” an attempt that was repeated in 1848. Bonaparte wanted to fashion only soldiers, Frayssinous fanatics, and Villemain mere talkers. M. Guizot would fashion only Doctrinaires, Enfantin mere followers of Saint-Simon, and someone who resented seeing humanity degraded in this way, if ever he were in the position of saying “I am the state,” would perhaps be tempted to fashion only economists. What then! Will we never see the danger of giving parties the opportunity of imposing their views, I mean their errors, by force, universally and uniformly, whenever they snatch power? For forbidding by law any view other than the one with which you yourself are infatuated is indeed coercion.
Claims and intentions of this nature are essentially monarchical, although no one has more resolutely displayed them than the republican party, since they are based on the premise that those governed are made by those who govern, that society belongs to the government, which has to fashion it in its image, whereas, according to our citizen rights, so dearly bought, power is only an emanation of society, one of the manifestations of its thought.
For my part, I cannot conceive a vicious circle more absurd, especially in the mouths of republicans, than this: As the years go by, through the mechanism of universal suffrage, national thought will be incarnate in the magistrates and then these magistrates will fashion national thought to suit their will.
This doctrine implies the following two assertions: National thought wrong, governmental thought infallible.
And if this is so, you republicans, immediately restore autocracy, state education, legitimacy, divine right, and irresponsible and infallible absolute [221] power, all institutions that have a common basis and that emanate from the same source.
If there is in the world one infallible man (or sect), let us hand over to him not only education but all the powers and make an end of it. If not, let us become enlightened as best we can, but let us not give up.
Now, I will repeat my question: from the social point of view, does the law we are discussing achieve freedom?
In former times, there was one university. Its permission was needed in order to teach. It imposed its ideas and methods, and people were obliged to operate through it. In Leibnitz’s view it was thus the ruler over generations, and doubtless this was the reason that its head took the revealing title grand master.
Now all of this has been overturned. The university will henceforward have just two attributions: 1. the right to dictate what knowledge is needed to obtain degrees, and 2. the right to block innumerable careers to those who do not follow this avenue.
People will say that such power is almost nothing. I, on the other hand, say that this nothing is all.
This leads me to say something about a word that has oft en been used in this debate: unity, since many people consider the baccalaureate as a means of stamping a single direction on all minds that, if not reasonable and useful, is at least uniform, and for this reason a good thing.
Those who admire unity are very numerous, and this is understandable. Providence has decreed that we all have faith in our own judgment, and we believe that there is just one valid opinion, that is to say, ours. We therefore think that the legislator can do no better than to impose this on all, and for greater safety we all want to be the legislator. However, legislators succeed one another in office, and what happens? At each changeover one form of unity replaces another. State education thus favors uniformity by taking each period into consideration in isolation, but if successive periods are compared—for example, the Convention, the Directoire, the empire, the restoration, the July Monarchy, and the Republic—we find diversity and, what is worse, the most subversive of all forms of diversity, that which produces visible changes in the intellectual field, as though on a stage, depending on the caprices of the person controlling the effects. Will we forever allow national intelligence and public awareness to descend to this level of degradation and indignity?
[222]There are two types of unity. One is a point of departure. It is imposed by force by those who temporarily control it. The other is a result, the supreme consummation of human perfectibility. It is the result of the natural gravitation of human intelligence toward truth.
The principle of the first type of unity is scorn for the human race, and its instrument is despotism. Robespierre was a unitarian when he said, “I have fashioned the Republic, I will set out to fashion republicans.” Napoléon was a unitarian when he said, “I love war and will make all Frenchmen into warriors.” Frayssinous was a unitarian when he said, “I have one belief and will bend all consciences to this belief through education.” Procrustes was a unitarian when he said, “Here is a bed; I will shorten or stretch anyone who exceeds or does not reach its dimensions.” The baccalaureate is unitarian when it says, “Life in society will be forbidden to anyone who has not followed my syllabus.” And let no one claim that the Supreme Council can change this syllabus each year, since we certainly cannot imagine a circumstance that would make matters worse. What then! The entire nation is to be considered as clay that the potter smashes when he is not happy with the shape he has given it?
In his report in 1844, M. Thiers showed that he was a fervent admirer of this type of unity, while at the same time regretting that it conformed little to the genius of modern nations.
A country in which freedom of education does not reign would be one in which the state, driven by absolute determination and wishing to cast its young people in the same mold and strike them in its effigy as though they were coins, would not permit any diversity in the system of education and, for a period of several years, would make all children wear the same type of clothes, eat the same type of food, and subject them to the same type of studies and the same type of exercises, bend them, etc.47
Let us refrain from speaking ill of this claimed prerogative of the state to impose unity of character on the nation and from regarding it as inspired by tyranny. It might almost be said, on the contrary, that this strong determination of the state to make all its citizens conform to a common type is in proportion to the patriotism of each country. It was in the ancient republics in which the fatherland was most adored and best served that it displayed the most stringent exactions with regard to the behavior and spirit of its citizens. . . . And we who, in the past century, have displayed all the aspects of human society, we who, having [223] been Athenians with Voltaire, fleetingly wished to be Spartans under the Convention and the soldiers of Caesar under Napoléon, if there was one moment during which we thought of imposing the yoke of the state on education in an absolute manner, it was under the National Convention at the time of the greatest exaltation of patriotism.48
Let us give credit to M. Thiers. He does not suggest that we follow such examples. “We should not,” he said, “either imitate them or undermine them. It was a delirium but one arising from patriotism.”
It remains no less true that M. Thiers here shows that he continues to adhere to the judgment he made. “The ancient world is what is finest in the world.” He shows a secret predilection for absolute state despotism, an instinctive admiration for the institutions of Crete and Sparta, which gave the legislator the power to cast all young people in the same mold, to strike them in its effigy of the state, like coins, etc., etc.
And I cannot refrain from pointing out at this juncture, as it is fully part of my subject, the traces of classical conventionalism which make us admire as virtue in the ancient world that which was the result of the hardest and most immoral of necessities. The ancients whom we exalt, and I cannot repeat this too oft en, lived from piracy and would not have touched a tool for anything in the world. The entire human race was their enemy. They had condemned themselves to perpetual warfare and to the situation of always having to conquer or perish. This being so, there was and could be only one occupation, that of a soldier. The community had to devote itself to developing military qualities uniformly in all of its citizens, and its citizens subjected themselves to this unity, which guaranteed their existence.49
[224]But what is there in common between these barbarous times and modern times?
With what precise and clearly determined aim would all citizens be struck in the same effigy, like so many coins, today? Is it because they are all destined to follow a variety of careers? What would be the reason for casting them in the same mold? And who will hold the mold? This is a terrible question, which should make us think. W ho will hold the mold? If there is a mold (and the baccalaureate is one), everyone will want to hold the handle: M. Thiers, M. Parisis, M. Barthélemy Saint-Hilaire, me, the Reds, the Whites, the Blues, and the Blacks.50 We would therefore have to fight to [225] settle this initial question, which would constantly resurface. Is it not easier to break the fatal mold and proclaim freedom honestly?
Especially since freedom is the terrain in which genuine unity germinates and is the environment that makes it fertile. The effect of competition is to stimulate good methods, reveal them and make them universal, and eliminate bad ones. It has to be admitted that the human mind is naturally more disposed to the truth than to error, to good than to evil, to what is useful than to what is harmful. If this were not true, if a fall were to be naturally reserved for the truth and triumph for the false, all our efforts would be in vain; humanity would be inevitably propelled, as Rousseau believed, toward a fatal and progressive degradation. We would have to say, with M. Thiers, “The ancient world is what is finest in the world,” which is not only an error but blasphemy. Properly understood, the interests of men are harmonious and the light that enables men to understand them shines with an ever more brilliant glow. Therefore, individual and collective efforts, experience, stumbling and even deceptions, competition—in a word, freedom—make men gravitate toward this form of unity that is an expression of the laws of their nature and the achievement of the general good.
What has made the liberal party fall into this strange contradiction of failing to recognize freedom, dignity, and the ability of man to grow in perfection and instead preferring an artificial unity that is static, degrading, and imposed in turn by all the despotic regimes to the benefit of the most diverse dispensations?
There are several reasons for this. First, the party itself has also received the Roman impress of a classical education. Are its leaders not holders of the baccalaureate? Second, it hopes that this precious instrument, this intellectual mold, the object of all desires, according to M. Thiers, will fall, by way of political vicissitudes, into its hands. Last, the requirements of defense against unjust aggression from Europe in’92 have not inconsiderably contributed to making the idea of a powerful unity popular in France.
However, of all the motives that have persuaded liberalism to sacrifice [226] freedom, the most powerful is the fear that the encroachments of the clergy have inspired in liberalism with regard to education.
I do not share this fear but I understand it.
Consider, says liberalism, the situation of the clergy in France, its scholarly hierarchy, its strong discipline, its militia of forty thousand members, all unmarried and occupying the leading role in each commune in the country. Consider the influence that the clergy owes to the nature of its functions, which it draws from the word that it causes to resound without contradiction and with authority from the pulpit and which it murmurs in the confessional. Consider the links that bind it to the state through the religious budget, the links that subject it to a religious head who is simultaneously a foreign king, the help it receives from a fervent and devoted congregation, the resources it gains from the alms it distributes. Consider the fact that it regards as its first duty to take control of education and tell me whether, under these conditions, freedom of education is not just a delusion.
A volume would be needed to discuss this mighty question and all those questions relating to it. I will limit myself to one consideration and say this:
Under a free regime, it is not the clergy who will conquer education but education that will conquer the clergy. It is not the clergy who will strike the century in its effigy, but the century that will fashion the clergy in its image.
Can we have any doubt that education stripped of university shackles and divorced, through the elimination of degrees, from classical conventionalism, will launch itself down new and fruitful paths under the spur of rivalry? Free institutions, which will laboriously start up between lycées and seminaries, will feel the need to give the human mind its proper food, that is to say, the science of what things are and not the science of what was said about them two thousand years ago. “Ancient times are the childhood of the world,” said Bacon, “and in truth it is our time that is ancient, since the world has acquired knowledge and experience as it has grown old.” The study of the works of God and nature in the moral and physical order, this is true education; this is what will be dominant in free institutions. The young people who receive this education will show themselves to be superior through the force of their intelligence, the sureness of their judgment, and their practical aptitude in life to the frightful little talkers that the university and clergy will have saturated with doctrines that are as false as they are outmoded. While the first group will be prepared to assume the social functions of our time, the others will be reduced at first to forgetting what they have learned, if they can, and then learning what they ought to know. [227] When faced with these results, fathers of families will tend to prefer free schools, full of sap and life, to these other schools, which are succumbing to the slavery of routine.
What will happen then? The clergy itself, still wishing to retain its influence, will have no other recourse than to substitute the teaching of things for the teaching of words, the study of positive truths for that of conventional doctrines, and substance for the superficial.
However, in order to teach you have to know, and in order to know you have to learn. The clergy will thus be obliged to change the direction of its own studies, and this renovation will be introduced all the way up to the seminaries. Well, do you think that a different diet will not produce different temperaments? For, let us be clear, it is not a question here of changing the subject only but also the method of clerical teaching. Knowledge of the works of God and nature is acquired by other intellectual processes than that of theogony. Observing facts and their sequence is one thing; admitting a text that is taboo without examination and drawing its consequences is quite another. When science replaces intuition, examination is substituted for authority and the philosophical method for the dogmatic. A different aim requires a different procedure, and other procedures give the mind other habits.
There is therefore no doubt that the introduction of science into the seminars, the infallible result of the freedom of teaching, will have the effect of modifying these institutions, right down to their intellectual habits. And I am convinced that therein lies the dawn of a great and desirable revolution, which will achieve religious unity.
I said not long ago that classical conventionalism made us into living contradictions, French by necessity and Romans by education. Could it not also be said that from the religious point of view we are living contradictions?
We all feel in our heart of hearts an irresistible magnet that draws us toward religion, and at the same time we feel intellectually a no less irresistible force that repels us from it; and it is a point of fact that this is all the more true the more the mind is cultured, so that a great doctor was able to say: Litterati minus credunt.51
Oh what a sad sight it is! For some time now, above all, we have heard deep groans on the dilution of religious beliefs and, what is strange, the very people who have let the last spark of faith die out in their soul are the most [228] willing to find doubt impertinent . . . in others. “Submit your reason,” they told the people, “or all will be lost. It is right for me to defer to mine since it is of a particular temper, and to observe the Decalogue I do not need to believe it has been revealed. Even when I drift away from it a little, not much harm is done; for you on the other hand it is different, you cannot infringe it without imperiling society . . . and my peace of mind.”
This is how fear seeks refuge in hypocrisy. People do not believe but pretend to do so. While skepticism forms the basis, calculated religiosity rises to the surface and here is a new form of conventionalism, of the worst kind, to dishonor the human mind.
However, not everything in this language is hypocritical. Although people do not believe everything or practice anything, there is deep in people’s hearts, as Lamennais said, a root of faith that never dries up.
Where has this bizarre and dangerous situation come from? Might it not be that institutions, practices, and rites that intelligent reflection cannot admit, whatever people say, have been mingled over time with the religious, primordial, and fundamental truths to which all sects and schools by common consent have adhered? And have these human additions no other support in the actual minds of the clergy than the dogmatism through which they attach them to the primordial and uncontested truths?
Religious unity will come about, but only when every sect has abandoned the parasitic institutions to which I am referring. Let us remember that Bossuet made good use of them when he debated with Leibnitz on the means of bringing all the various Christian confessions back to unity. Will what appeared to be possible and good to the great seventeenth-century doctor be seen as being too daring by the doctors of the nineteenth century? Whatever happens, by implanting other intellectual habits in the clergy, freedom of teaching will doubtless be one of the most powerful instruments of the great religious renovation that alone can satisfy consciences and save society.52
So great is the need of societies for a moral code that the body that makes itself the guardian and dispenser of this code in the name of God acquires unlimited influence over them. However, experience has shown that nothing perverts men more than unlimited influence. There comes a time, therefore, when far from the priesthood remaining merely the instrument of religion, [229] it is religion that becomes the instrument of the priesthood. At this point a fatal antagonism comes into the world. Faith and intelligence, from opposing sides, pull everything over to them. Priests unceasingly add to sacred truths errors that they proclaim as no less sacred, thus offering the lay opposition solid reasons and arguments that are increasingly serious. The former seeks to pass on falsehood with truth while the latter undermines the truth by falsehood. Religion becomes superstition and philosophy incredulity. Between these two extremes, the masses are shrouded in doubt, and it can be said that humanity is going through a critical period. Nevertheless, the abyss becomes ever deeper and the struggle continues not only between individuals but also within the conscience of every man, with a variety of outcomes. If political upheaval strikes terror into society, it finds refuge in faith, out of fear; a sort of hypocritical religiosity gains the upper hand, and priests consider themselves the victors. But no sooner has calm returned, no sooner have priests tried to turn victory to their advantage than intelligence reclaims its rights and resumes its work. When will this anarchy end then? When will intelligence and faith form an alliance? When faith is no longer a weapon, when priests return to what they ought to be, an instrument of religion, and abandon the outward show that interests them in favor of the fundamentals that interest humanity. When this happens, it will not be enough to say that religion and philosophy are sisters; they will have to be said to be merged in unity.
But I will come down from these elevated heights and, returning to university degrees, I ask myself whether the clergy will be very averse to abandoning the routine paths of classical teaching, which, incidentally, they are in no way obliged to do.
It would be amusing if Platonic communism, paganism, the ideas and behavior shaped by slavery and piracy, Horace’s Odes, and Ovid’s Metamorphoses were to find their ultimate defenders and teachers in the priests of France! It is not my place to give them advice, but they will doubtless allow me to quote an excerpt from a journal which, unless I am mistaken, is written by ecclesiastics:
Who then, among the doctors of the church, are the apologists of pagan teaching? Is it Saint Clement, who wrote that secular science is like fruit and jam that should be served only at the end of a meal? Is it Origen, who wrote that in the golden cups of pagan poetry there is deadly poison? Is it Tertullian, who called the pagan philosophers the patriarchs of the heretics, Patriarchae hereticorum? Is it Saint Irenaeus, who declared [230] that Plato was the seasoning for all heresies? Is it Lactantius, who noted that the well-read men of his day were those who had the least faith? Is it Saint Ambrose, who said that it was very dangerous for Christians to be concerned with lay oratory? Finally, is it Saint Jerome, who in his letter to Eustochia strongly condemned the study of the pagans, saying: “What is there in common between light and darkness? What agreement can there be between Christ and Baal? What has Horace to do with the Psalms or Virgil with the Gospels?” Saint Jerome, who so bitterly regretted the time he devoted in his youth to the study of pagan letters: “How unfortunate I was, I denied myself food in order not to abandon Cicero; as soon as morning broke, I had Plautus in my hands. If on occasion, withdrawing into myself, I began to read the prophets, their style seemed to me to be crude and, because I was blind, I denied the light.”
But let us listen to Saint Augustine:
The studies through which I came to read the writings of others and to write what I think, were nevertheless much more useful and much more solid than those that I was later obliged to pursue, which concerned the adventures of I do not know which Aeneas and which made me weep over the fate of Dido, dying of love, while, forgetting my own faults, I was myself finding death in this disastrous literature. . . . However, these are the follies that are called fine and honest letters: Tales dementiae honestiores et uberiores litterae putantur.53 . . . Let these merchants of fine literature upbraid me. I am not afraid of them, and I am concentrating on extricating myself from the evil paths I have followed. . . . It is true that from these studies I have retained many expressions that are useful to know, but all of this can be learned elsewhere than in such frivolous literature and children should be led down less dangerous paths. But who dares resist you, you cursed torrent of custom! Is it not to follow your course that I was made to read the story of Jupiter who simultaneously held the thunderbolt and committed adultery? We know that this cannot be reconciled, but with the help of this false thunderbolt we reduce the horror inspired by adultery and encourage young people to imitate the actions of a criminal god.
[231]And notwithstanding this, oh infernal torrent, every child is cast into your waters, and this culpable custom is made into a great event. This is carried out publicly under the gaze of magistrates for an agreed salary. . . . It is the wine of error that drunken teachers offered us in our childhood; they chastised us when we refused to drink it and we could not appeal against their sentence to any judge who was not as drunk as they were. My soul was thus the prey of impure minds, for there is not just one way of offering sacrifice to devils.54
Adds the Catholic article, are not this eloquent lamentation, this bitter criticism, these unbending reproaches, these touching regrets, and this judicious advice as relevant to our century as to the century for which Saint Augustine was writing? Have we not retained in the name of classical education the same system of study against which Saint Augustine speaks out with such force? Has this torrent of paganism not flooded the world? Do we not cast thousands of children into its waters each year, children who lose their faith, their code of behavior, human feelings and dignity, their love of freedom, and a knowledge of their rights and duties, and who emerge imbued with false ideas of paganism, its false moral code, and its virtues no less than with its vices and profound scorn for humanity?
And this frightful moral disorder does not arise from the corruption of individual will abandoned to its own devices. No, it is imposed by law through the mechanism of university degrees. M. de Montalembert himself, while regretting that the study of the literature of the ancient world was not sufficiently intense, quoted the reports of university inspectors and deans. They were unanimous in recording the resistance, and I would almost say revolt, of public feeling against such an absurd and disastrous tyranny. All note that French young people calculate with mathematical accuracy what they are obliged to learn and what they are allowed not to know in terms of classical studies, and they stop just at the limit at which they will gain their required grades. Is this also true of other branches of human knowledge, and is it not common knowledge that, for ten places, there are a hundred candidates, all of whom have degrees superior to those required for [232] the courses? Let the legislator therefore take into account public reason and current views.
Is it a savage, a tribesman from the Vosges or one of the Gepids, who would dare to speak up here? Does he fail to see the supreme beauty of the literary monuments bequeathed to us by the ancient world or the services rendered to the cause of civilization by Greek democracies?
Certainly not; he would not fail to repeat that he was not requiring the law to ban but just not to impose. Let it leave citizens free. They would be capable of recasting history in its true colors, admiring what is worthy of admiration, attenuating that which warrants scorn, and freeing themselves of the classical conventionalism that is the disastrous scourge of modern society. Under the influence of freedom, natural sciences, and secular literature, Christianity and paganism will be able to occupy their rightful share in education; and in this way, harmony, which is the condition for the establishment of order in both consciences and society, will be established between ideas, the code of behavior, and personal interest.
EndnotesFrom 1815 to the end of the Second Republic, freedom of education had been a recurrent theme in parliamentary debates. In early 1850, a bill put forward in 1849 by Frédéric de Falloux was debated in a commission presided over by Adolphe Thiers. Victor Hugo and Charles de Montalembert were among the members. Bastiat proposed a significant amendment but was unable to attend the debates for health reasons. This paper, a justification for the amendment, was sent to the commission. After serious, deep, and sometimes brilliant debates, the law was adopted on 15 March 1850, but without Bastiat’s amendment.
“Baccalaureat,” “licence,” and “doctorat” were the degrees delivered by the universities only.
(Paillottet’s note) Twenty years before, the author, in his initial article, had already pointed to the freedom of education as being one of the reforms that the nation should try to obtain. See the article titled “To the Electors of the Département of the Landes,” in vol. 1. (OC, vol. 1, p. 217, “Aux électeurs du département des Landes.”)
“By reason of his person and relevant reasons.” This phrase relates to a jurisdiction’s competence to judge a person or a material offence.
Pierre Louis Parisis.
Malo periculosam libertatem [quam quietam servitutem]: “I prefer the tumult of liberty [to the quiet of servitude].”
(Bastiat’s note) “He who dares to undertake to teach a people must consider himself capable of changing human nature, in a manner of speaking . . ., of altering the physical and moral constitution of man, etc.” [This passage comes from Du contrat social, bk. 2, chap. 7, “The Legislator.”]
(Paillottet’s note) See pp. 365 and 380 of this volume. (OC, vol. 4, “La Loi,” and pp. 365 and 380.)
In 1844 Thiers battled against a bill instituting a degree of freedom in secondary education. He was in favor of a system where “the youth would be thrown into a mold and cast according to the effigy of the state.” According to him, any free educational establishment should be under the tight control of the university.
(Bastiat’s note) Report by M. Thiers on the law on secondary education, 1844.
(Paillottet’s note) Distance contributes not a little to giving antique figures an aura of greatness. If Roman citizens are mentioned to us, we do not normally conjure up a vision of a brigand intent on acquiring plunder and slaves at the expense of peaceful peoples. We do not visualize him going about half naked, hideously dirty in muddy streets. We do not come across him whipping a slave who shows a bit of initiative and pride until the brigand draws blood or kills him. We prefer to conjure up a fine head set on a bust brimming with force and majesty and draped like an ancient statue. We prefer to contemplate this person as he meditates on the high destiny of his fatherland. We seem to see his family around the hearth honoring the presence of the gods, with his wife preparing a simple meal for the warrior and casting a confident and admiring look on the brow of her husband and the children and paying attention to the words of an old man who whiles the hours away reciting the exploits and virtues of their father. . . .
Oh! How many illusions would be dissipated if we could evoke the past, wander in the streets of Rome, and see at close hand the men whom we admire from afar in such good faith! (Unpublished draft by the author, shortly before 1830.)
The verses quoted by Bastiat are from Corneille’s play Horace (1640). See also the entry for “Corneille, Pierre,” in the Glossary of Persons.
(Bastiat’s note) The shapers of societies are sometimes modest enough not to say, “I will do this,” “I will dispose of this.” They readily use this impersonal but equivalent form: “One will do this,” “One will not allow this.”
Montesquieu, L’Ésprit des lois. The edition of L’Ésprit des lois to which Bastiat might have had access was Œuvres de Montesquieu, avec éloges, analyses, commentaires, remarques, notes, réfutations, imitations. The editor was Victor Destutt de Tracy, the son of Antoine Destutt de Tracy, who had written an extensive commentary on L’Ésprit des lois for Thomas Jefferson. Jefferson had it published in 1811: A Commentary and Review of Montesquieu’s Spirit of Laws.
Ibid.
Ibid.
Ibid.
Ibid.
Rousseau, “Discours: Si le rétablissement des sciences et des arts a contribué a épurer les mœurs,” in Du Contrat social et autres œuvres politiques, pp. 8–9.
Rousseau, “Quelle est l’origine de l’inégalité parmi les hommes,” in Du contrat social et autres œuvres politiques, p. 40.
Ibid., pp. 72–73.
Ibid., p. 73.
Rousseau, “Du contrat social,” in Du contrat social et autres œuvres politiques, p. 259.
Ibid., pp. 259–60.
Ibid., pp. 262–63.
Rousseau, “Du contrat social,” in Du contrat social et autres œuvres politiques, p. 243.
The Confessions of Jean-Jacques Rousseau was first published in 1782, after his death in 1778. An edition Bastiat might have used was Les Confessions de J.-J. Rousseau. Avec les notes de Musset-Pathay et de Petitain.
Bastiat is referring to Vattel’s Le droit des gens, ou principes de la loi naturelle (1758).
Gaius Fabricius Luscinus.
An edition of Mirabeau’s work that Bastiat might well have used would be the eight-volume Œuvres de Mirabeau (1834–35).
This quotation is from “Discours de Robespierre sur la propriété.” See Robespierre, Œuvres de Maximilien Robespierre, vol. 3, pp. 352–53.
Ibid., p. 353.
Ibid., p. 354.
Marcus Licinius Crassus.
From “Discours de Robespierre sur la propriété.” See Robespierre, Œuvres de Maximilien Robespierre, vol. 3, pp. 351–52.
This passage probably comes from a speech that Saint-Just gave in the National Convention. His collected works were published in Paris in 1834: Œuvres de Saint-Just, représentant du peuple à la Convention Nationale.
In 1831 a book titled Fragments sur les institutions républicaines, ouvrage posthume de Saint-Just was published. The book contained “fragments” on republican institutions by the Jacobin politician Louis Antoine de Saint-Just. The title page had a quotation from Montesquieu’s L’Ésprit des lois, bk. 3, chap. 3: “The politic Greeks, who lived under a popular government, knew no other support than virtue: the modern inhabitants of that country are entirely taken up with manufacture, commerce, finances, opulence, and luxury.” Bastiat quotes from Fragment Three, “Un gouvernement républicain a la vertu pour principe; sinon, la terreur. Que veulent ceux qui ne veulent, ni vertu, ni terreur?” It is interesting to note that this book was copublished by the Guillaumin publishing house, which in the 1840s was to specialize in publishing the works of the French political economists, including books and pamphlets by Bastiat.
See Saint-Just, Fragments sur les institutions républicaines, p. 58.
Ibid., pp. 58–59.
See the entry for “Gracchi” in the Glossary of Persons.
See the entry for “Republican calendar” in the Glossary of Subjects and Terms.
Jean-Paul Rabaut.
The Hospice des Quinze-vingt was originally an almshouse for the blind and later transformed into a workshop for inmates. Bastiat is referring to the administration in charge.
A “healing power.”
From vol. 6, chap. 129, “Rapport sur le report de loi relatif à l’instruction secondaire, déposé le 13 juillet 1844 à la Chambre des Députés,” in Thiers, Discours parlementaires: Troisième partie, p. 450.
Ibid., p. 458.
Ibid., p. 459.
(Paillottet’s note) In the outline from which we borrowed the preceding note [p. 194, note 11], the author examines these two questions:
- 1. Whether self-renunciation is a political motivation preferable to personal interest;
- 2. Whether ancient peoples, especially the Romans, practiced this renunciation better than modern peoples do.
Bastiat opts for the negative for both, as we would guess. Here is one of his reasons with regard to the latter:
When I sacrifice part of my wealth to build walls and a roof that will protect me from thieves and the weather, it cannot be said that I am driven by self-renunciation but that on the contrary I am endeavoring to preserve myself.
In the same way, when the Romans sacrificed their internal divisions in favor of their security, when they risked their lives in combat, when they subjected themselves to the yoke of an almost unbearable discipline, they were not practicing self-renunciation; on the contrary they were embracing the sole means they had of preserving themselves and escaping the extermination with which they were threatened by the reaction of other peoples to their violence.
I know that several Romans demonstrated great personal abnegation and devoted themselves to saving Rome. But there is an easy explanation for this. The interest that determined their political organization was not their only motive. Men accustomed to conquering together, to hating everything foreign to their association, had to have an exalted degree of national pride and patriotism. All warlike nations, from primitive hordes to civilized peoples who make war only accidentally, experience patriotic exaltation. This is all the more true of the Romans, whose very existence was a constant war. This exalted national pride, combined with the courage born of warlike customs, the scorn of death it inspired, the love of glory, and the desire to live on in posterity, had frequently to produce shining actions.
For this reason, I do not say that no virtue can arise in a society that is purely military. I would be contradicted by events, and the bands of brigands themselves offer us examples of courage, energy, devotion, a scorn of death, generosity, etc. However, I claim that, like these bands of robbers, robber nations, from the point of view of self-renunciation, do not win out over hardworking peoples, and I add that the enormous and constant vices of the former cannot be effaced by a few shining actions, which are perhaps unworthy of the name of virtue, since they occur to the detriment of humanity. [Unpublished article by the author, shortly before 1830.]
In many societies colors are associated with different political points of view. It is possible that the term “Reds” refers to supporters of the army or the emerging socialists; “Whites” refers to supporters of the monarchy; “Blues” refers to the liberals; and “Blacks” refers to supporters of the church.
The novelist Stendhal (1783–1842) moved in Saint-Simonian circles in the 1820s and wrote a witty satire of the Saint-Simonians titled D’un nouveau complot contre les industriels (1825). He is also the author of Le Rouge et le noir (The Red and the Black) (1831), in which the hero, Julien Sorel, was torn between a life in the army (the red) and a life in the clergy (the black). Stendhal’s use of colors to depict different ideological groups was common in the 1820s and probably was shared by Bastiat. See also “The Concepts of ‘Industry’ and ‘Plunder’ (Spoliation)” in “Bastiat’s Political Writings: Anecdotes and Reflections,” pp. 409–10 in this volume; and the entries “Saint-Hilaire, Jules Barthélemy,” “Saint-Simon, Claude Henri de Rouvroy,” and “Thiers, Adolphe,” in the Glossary of Persons.
“Learned men are those who have the least faith.”
(Paillottet’s note) See Justice and Fraternity, pages 316 and 317. (OC, vol. 4, p. 298, “Justice et fraternité.”) [See also “Justice and Fraternity,” pp. 73–74 in this volume.]
From Augustine’s Confessions 1.13. The full Latin passage reads, “Tali dementia honestiores et uberiores litterae putantur quam illae quibus legere et scribere didici.” [Madness like this is thought a higher and a richer learning than that by which I learned to read and write.]
Bastiat is quoting from St. Augustine, The Confessions, chap. 16: “He Disapproves of the Mode of Educating Youth, and He Points Out Why Wickedness Is Attributed to the Gods by the Poets.”
T.168 "Liberty, Equality" (c. 1850)↩
SourceT.168 (1850.??) "Liberty, Equality" (Liberté, Égalité). Paillottet included this as an appendix to the pamphlet "Baccalaureate and Socialism" (1850). He says that it was written in early 1850 as a draft of a chapter for the second volume of Economic Harmonies which was never completed. [OC4, pp. 501-3] [CW2, pp. 232-234] (also CW4)
Editor's IntroductionPaillottet tells us in a note that he found this sketch among Bastiat's papers and believed he had written it in early 1850 as part of a proposed chapter for the second volume of his Economic Harmonies and never finished it. In the sketch he rails again about the influence the study of the classics has on children who are taught the values of slaver owners and conquerors. He does this in many other places such as the early piece "On the Romans as Plunderous Villains" (before 1830), 1993 but also in most detail in his pamphlet on education Baccalaureate and Socialism , (early 1850). 1994 Since the Romans talked a lot about "liberty" while owning slaves they were able to separate the two concepts in their minds, much as many Founding Fathers of the American Constitution were able to do, and as did many French conservatives who defended protection, subsidies, and the colonial regime in France in the 1840s.
Bastiat also laments how readily most people refuse to see that the privileges and benefits they ask the "great law factory" in Paris (which is the Chamber of Deputies) 1995 to grant them is just another form of plunder, but in this case "legal plunder" sanctioned by the state.
TextWords have their changing fortunes just as men do. Here are two which man has made divine or damned in turn, so that it is very difficult for philosophers to speak about them calmly. There was a time when he who dared to examine the sacred syllables would have risked his head, since examination implies doubt or the possibility of doubt. Today, on the contrary, it is not prudent to mention them in a certain place and that place is the one from which the laws that govern France are issued! Thank Heaven I have to deal only with Liberty and Equality from the economic point of view. This being so, I hope that the title of this chapter will not have too painful an effect on the reader's nerves.
But how has it happened that the word L iberty sometimes makes hearts beat faster, arouses enthusiasm in nations, and is the signal for actions of the utmost heroism, while in other circumstances it appears to emerge from the hoarse throats of the populace only to spread discouragement and terror far and wide? Doubtless it does not always have the same meaning and does not whip up the same idea.
I cannot stop myself believing that our entirely Roman education has something to do with this anomaly. …
For many long years, the word Liberty has struck our young ears, bearing a meaning that cannot be adjusted to modern behavior. We make it the synonym of national supremacy abroad and of a certain equity at home for the sharing of conquered loot. This sharing was in effect a great subject of dissent between the Roman people and the Senate which, when recited, always has our young people taking the side of the people. Thus it is that the battles between the Forum and liberty end up by forming an indissoluble association of ideas in our minds. To be free is to struggle and the region of Liberty is that of storms. …
Did it take us very long after leaving school before we were going about all the public places railing against foreign savages and avaricious nobles ?
How can liberty understood in this way fail to be in turn an object of enthusiasm or terror for a working population? …
The people have been and are still so oppressed that they have not been able and cannot achieve liberty except through struggle. They resign themselves to it when they feel oppression clearly, and they surround the defenders of liberty with their homage and gratitude. However, the struggle is often long and bloody, a blend of triumphs and defeats; it can generate scourges that are worse than oppression. … When this happens, the people, tired of combat, feel the need to draw breath. They turn against the men who exact from them sacrifices beyond their strength and start to doubt the magic word in the name of which they are being deprived of security and even liberty. …
Although struggle is necessary to achieve liberty, let us not forget that liberty is not a struggle, any more than soldiers presenting arms is a maneuver. Writers, politicians, and speakers imbued with the Roman philosophy make this mistake. The masses do not. Combat for its own sake repels them, and it is in this that they justify the profound saying: There is someone with more wit than the witty, and this person is everyone . 1996 …
A common fund of ideas links the words, liberty, equality, property and security to one another.
Liberty , whose etymology is weights and scales, implies the ideas of justice, equality, harmony, and balance, which excludes combat, which is exactly the opposite of the Roman interpretation.
On the other hand, liberty is generalized property . Do my faculties belong to me if I am not free to make use of them, and is not slavery the most total negation of property as it is of liberty?
Finally, liberty is security , since security is also property that is guaranteed not only in the present but also in the future.
Since the Romans, and I stress this, lived from booty and cherished liberty, since they had slaves and cherished liberty, it is clear that the idea of liberty was in their eyes in no way incompatible with the ideas of theft and slavery. 1997 This must therefore be true of all our generations who have been to school, and these are the ones who are governing the world. In their minds the ownership of the product of our faculties or the ownership of the faculties themselves has nothing to do with liberty and is an asset that is infinitely less precious. For this reason theoretical attacks on property scarcely move them. Far from it, so long as the laws go about this with a certain symmetry and with an aim that is overtly philanthropic, this form of communism attracts them …
You should not believe that these ideas disappear when the first fires of youth die down and when you have grown out of the urge to upset the tranquility of the city as the Roman tribunes used to do, when you have had the good fortune to take part in four or five insurrections and have ended up choosing a station in life, working, and acquiring property . No, these ideas do not pass away. Doubtless, people value their property and defend it with energy, but take little account of the property of others. If it is a case of violating it, provided that this is carried out through the intervention of the law, 1998 they have not the slightest scruple in doing so. The concern of us all is to curry favor with the law, to attempt to put ourselves in its good graces, and if it smiles on us we ask it quickly to violate the property or the liberty of others for our benefit. This is done with charming naivety, not only by those who proclaim themselves to be communists or communitarians but also by those who claim to be fervent devotees of property, 1999 by those who are roused to fury by the sole mention of the word communism, by (insurance) brokers, manufacturers, ship owners, and even by the archetypal property owners, those who own land. …
1993 See the Editor's Introduction to that essay, above, pp. 000.
1994 CW2, pp. 185-234.
1995 Bastiat described the Chamber of Deputies as "une grande fabrique de lois" (a great law factory" which produced privileges and benefits to favoured interests. See CW3, p. 428.
1996 The proverb is "Il y a quelqu'un qui a plus d'esprit que les gens d'esprit, ce quelqu'un, c'est tout le monde " (There is someone who has more intelligence than men of intellect, and this someone is everybody ). To maintain the alliteration it could be translated as "There is more sense in common sense than in men of good sense" or what we used above.
1997 In his proposed History of Plunder Bastiat begins his account with war and slavery, then moves onto the other historical stages of theocracy, monopoly, exploitation by governments, and communism. See the sketches in ES2 1 "The Physiology of Plunder," CW3, pp. 114-15, and EH2, p. 335. Also the glossary entry on "Bastiat's Theory of Plunder."
1998 Here he uses the expression "violer par l'intervention de la loi" (to violate (property) through the intervention of the law). Elsewhere he often uses the expression "la spoliation légale" (legal plunder) to distinguish state-sanctioned and institutionalised plunder from "la spoliation extra-légale" (regular theft and highway robbery). See "Justice and Fraternity" (June 1848), CW2, p. 76.
1999 In his pamphlet "Protectionism and Communism" (Jan. 1849) Bastiat accused the conservative protectionists of doing just this. See CW2, pp. 235-65.
T.301 "On coerced Charity" (c. 1850)↩
SourceT.301(1850) "On coerced Charity" (1850). This previously unpublished sketch was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to "Justice and Fraternity." Paillottet says that "These ideas of the author were written in his handwriting in a commemorative album sent to him in 1850 by the Literary Society on the occasion of the London Exhibition." [OC4, p. 326] [CW2, p. 81]
Editor's IntroductionHere Bastiat returns to his objection to the idea that charity should be coerced by the state, i.e. "la charité légale" (coerced or state provided charity) instead of being provided voluntarily by individuals, i.e "la charité volontaire" (voluntary charity). He first discussed this in his "Letter from an Economist to M. de Lamartine" (February 1845) where he states:
Next, political economy distinguishes between voluntary charity and state or compulsory charity. The first, for the very reason that it is voluntary, relates to the principles of freedom and is included as an element of harmony in the interplay of social laws; the other, because it is compulsory, belongs to the schools of thought that have adopted the doctrine of coercion and inflict inevitable harm on the social body. 2000
He had written probably the previous year the chapter on "Exchange" in the first volume of EH where he makes a very similar comment:
Why then does nothing emerge from our legislative Assemblies? Because they do not know this. Political economy offers them the following solution: JUSTICE THROUGH THE LAW (justice légale), PRIVATE CHARITY (charité privée). The legislative assemblies take the opposite course and, without realizing it, obey the Socialist influence and want to encase charity in law, that is to say, banish justice from it at the risk of killing off private charity at the same time, which is always swift to give way to state enforced charity (la charité légale).
Why then do our legislators overturn every notion in this way? Why do they not leave each one in its place, Fellow-feeling in its natural domain, which is Freedom, and Justice in its place, which is the Law? Why do they not apply the law uniquely to the reign of justice? Might this be because they dislike justice? No, but they lack confidence in it. Justice is freedom and property. 2001
He has a similar set of arguments about the distinction between "la fraternité légale" (state imposed fraternity), desired by the socialists, and "la fraternité libre, spontanée, volontaire" (free, spontaneous, and voluntary fraternity), preferred by the economists, which he develops further in his pamphlet "Justice and Fraternity" (JDE, June 1848). 2002
TextThere are three levels of human (activity): the lowest, that of plunder; the highest, that of charity; and a middle level, that of justice.
Governments only ever exercise one (kind of) action which has force for its sanction. Well, it is allowed to force someone to be just but not to force him to be charitable. When the law wishes to achieve by force what the moral law succeeds in doing through persuasion, far from lifting itself to the level of charity, it descends to the sphere of plunder.
The proper sphere of the law and governments is justice.
T.315 "The Consequences of an Action" (c. 1850)↩
SourceT.315 [1850.??] "The Consequences of an Action" (Si toutes les conséquences d'une action) This previously unpublished note was discovered by the original French editor Paillottet among Bastiat's papers and inserted in a footnote to WSWNS, chap XII The Right to Work" which was published in July 1850. No date was given. [OC5, p. 392] [CW3]
IntroductionThis is another unpublished fragment which Paillottet found in Bastiat's papers. He dates it to sometime in early 1850 and inserted it as a footnote in WSWNS which was published in July 1850. 2003 He is playing around with the idea of "the seen" and "the unseen" with the twist here being his attempt to quantify it in a kind of thought experiment. There is also a brief mention of the idea of "concentrated benefits" (such as the beneficiaries of a tariff) and more widespread harm (on consumers).
TextIf all the consequences of an action were visited on its author, our education would be swift. But this does not happen. Sometimes the beneficial and visible consequences are in our favor and the harmful and invisible ones are for others to face, which makes them even more invisible. We then have to wait for a reaction from those who have had to bear the harmful consequences of the act. Sometimes this takes a long time and this is what preserves the reign of the error.
A man carries out an action that produces beneficial consequences worth 10 in his favor and harmful consequences worth 15 spread over 30 of his fellow men, so that what was borne by each of them was just ½. In all, there was a loss and the reaction was bound to come. We can see, however, that it will be all the slower since the harm is more widely spread over the mass and the benefit more concentrated on a single point.
2003 In "The Right to Work and the Right to Profit," CW3, p. 451.
T.182 "Our Abilities vs. Our Needs" (c. 1850)↩
SourceT.182 (1850.??) "Abilities vs. Needs." Fontenay included this piece as part of his long note at the end of Chap. XVI "Population" in the second expanded edition of EH which he and Paillottet edited and published in June 1851 (EH2 pp. 463-4). It also appeared in a shortened note in OC6 (1st ed. 1855). Fontenay states that he found it among Bastiat's papers and it was one of the last things he wrote. [OC6, pp. 480-81] [CW4]
IntroductionThese are fairly tersely written notes which we have expanded a little to aid the reader. It is another example of Bastiat thinking out loud to himself as he explores his ideas and playing with numbers to get a better idea of the relationships between them.
Here we also have the first and only use of an expression which is intriguing, namely "l'association des efforts" which we have translated as "the association or collaboration of effort." 2004 It strongly resembles Ludwig von Mises' idea of "the law of association" which he borrowed from David Ricardo and made into a key component of his theory of human action. See for example in Human Action (1949):
The law of association makes us comprehend the tendencies which resulted in the progressive intensification of human cooperation. We conceive what incentive induced people not to consider themselves simply as rivals in a struggle for the appropriation of the limited supply of means of subsistence made available by nature. We realize what has impelled them and permanently impels them to consort with one another for the sake of cooperation. Every step forward on the way to a more developed mode of the division of labor serves the interests of all participants. In order to comprehend why man did not remain solitary, searching like the animals for food and shelter for himself only and at most also for his consort and his helpless infants, we do not need to have recourse to a miraculous interference of the Deity or to the empty hypostasis of an innate urge toward association. Neither are we forced to assume that the isolated individuals or primitive hordes one day pledged themselves by a contract to establish social bonds. The factor that brought about primitive society and daily works toward its progressive intensification is human action that is animated by the insight into the higher productivity of labor achieved under the division of labor. 2005
Bastiat quoted Ricardo many times, usually concerning his theory of value and of rent, but not his "law of association" which he must have known about.
TextIn the chapter on "Exchange" 2006 it was shown that when living in a state of isolation men's needs were greater than their abilities (to satisfy them), and that when living in a social state men's abilities were greater than their needs.
This excess of abilities over needs arises from exchange, which comes from — the collaboration of effort, — the division of labor.
From that comes an action and a reaction of causes and effects in the (expanding) circle of infinite progress.
That our abilities are greater than our needs, (thereby) creating in each generation a surplus of wealth, allows it (generation) to raise a more numerous generation. — A more numerous generation allows a better and much deeper division of labour; it is a new (higher) level of superiority given to (our) abilities over our needs. 2007
What magnificent harmony!
Thus, at any given period, the total number of general needs being represented by 100, and that of our abilities by 110, the excess of 10 can be divided — (let's say) 5 for example going to improve the lot of mankind, to stimulating our higher needs, to develop in men the feeling of dignity, etc., — and 5 to increase their numbers.
In the second generation, their needs are 110, — let us say 5 more in quantity and 5 more in quality.
But, for the very same reasons (for the double reason of the physical, intellectual, and more complete moral development (of man), and of the greater density (of population)), our abilities have also increased in power. They can be represented by the figure of 120 or 130.
(Then there is a) new surplus, a new division (of wealth), etc.
And so one doesn't (need to) fear that there will be too much (produced); the increase in our needs, which is nothing other than the feeling of dignity, provides a natural limit …
2004 FEE translated it as "the union of efforts," EH, p. 566.
2005 Part 2: Action Within the Framework of Society, Chap. 8: Human Society, Section 4 "The Ricardian Law of Association" in Ludwig von Mises, Human Action: A Treatise on Economics, in 4 vols., ed. Bettina Bien Greaves (Indianapolis: Liberty Fund, 2007). Vol. 1, p. 160.
2006 Chapter IV "Exchange" in both EH1 and EH2.
2007 One of Bastiat's main criticisms of Malthus was that he didn't see this, or the benefits of living in populous cities and towns which made mutually beneficial exchanges easier to engage in. In other words, it lowered transaction costs.
T.284 "A Note on Economic and Social Harmonies" (c. early 1850)↩
SourceT.284 (1850.??) Undated note by Bastiat on the "Economic and Social Harmonies" found among his papers (c. June 1845). Ronce, pp. 227-8. It can also be found quoted in Fontenay's "Notice" in OC1 (1862) and the Foreword to the 2nd ed. of Economic Harmonies (1851). 2008
Editor's IntroductionIt is hard to know exactly when Bastiat thought he had the ability to write a major treatise on economic and social theory, but we do know that from quite early on he thought one needed to be written. The origins of his treatise on economics, Economic Harmonies , will be discussed in greater detail in CW5 (forthcoming), so our remarks here will be limited.
It seems that by the beginning of 1846, when he was appointed to the Academy of Moral and Political Sciences, after a year of significant success in entering the world of the Parisian political economists he no doubt felt he was at long last a "real" economist and had the ability to write a major treatise. 2009
Why he thought one (or more) volumes of a new theoretical treatise needed to be written is a longer story which goes back to the late 1820s when he and his friend Félix Coudroy were discussing in earnest the writings of Charles Comte and Charles Dunoyer 2010 who had a profound impact on their thinking. Bastiat had discovered the writings of the two Restoration liberals in the Revue encyclopédique and eagerly reported this to Félix in a letter. 2011 They then began reading copies of Comte and Dunoyer's journal Le Censeur européen (1817-1819) in which they took the economic theories of J.B. Say and the political ideas of Benjamin Constant and wove them into a new form of classical liberalism which had a social component which involved notions of class, exploitation, and the relationship between the mode of production and political culture. They called this the "industrialist theory" of society 2012 which they explored in considerable depth in a number of works which appeared in the 1820s and 1830s, most notably Dunoyer's L'Industrie et la morale considérées dans leurs rapports avec la liberté (1825) and Comte's Traité de législation, (1826) and Traité de la propriété (1834).
Bastiat wanted to do something similar to the economic theory of his own day by using the ideas of Say, Constant, Comte, and Dunoyer to study "all forms of freedom" in a very ambitious research project on liberal social theory. This new synthesis, "un sujet plus vaste" (a much larger subject), 2013 he would call "Social Harmonies." In another letter to Richard Cobden on 18 August, 1848 he explained that he wanted to "first of all to set out the true principles of political economy as I see them, and then to show their links with all the other moral sciences." 2014 And in a late letter to Casimir Cheuvreux (14 July 1850) he stated "When I said that the laws of political economy are harmonious, I did not mean only that they harmonize with each other, but also with the laws of politics, the moral laws, and even those of religion." 2015 And finally, in his "Draft Preface" to the Economic Harmonies (fall 1847) he said he wanted to show how "All forms of freedom go together. All ideas form a systematic and harmonious whole, and there is not a single one whose proof does not serve to demonstrate the truth of the others." 2016
An early reference to this elaborate project can be found in a letter he wrote to his dear friend and neighbour Félix Coudroy in Mugron on 5 June, 1845, soon after his arrival in Paris. The use of the word "we" suggests that Bastiat regarded Félix as a kind of co-author: 2017
If my small treatise, Economic Sophisms , is a success, we might follow it with another entitled Social Harmonies . It would be of great use because it would satisfy the tendency of our epoch to look for organizations and artificial harmonies by showing it the beauty, order, and progressive principle in natural and providential harmonies. 2018
The fragment we are reproducing here was probably written after the appearance of the first volume of the Economic Harmonies in January 1850, as he expresses frustration with the order in which he had originally planned to arrange the chapters and hopes he can rectify this problem in a future edition. Of course, he did not live long enough to do this.
From his scattered remarks in his correspondence (interestingly mostly written to non-economists like Félix Coudroy and Richard Cobden) and elsewhere we can piece together a rough outline of what he had in mind. He wanted to follow up the success of his Economic Sophisms with another work to be called "Social Harmonies." Whereas the former took a "negative" perspective in that it "demolishes" false economic arguments, the latter would take a "positive" point of view in that it would "build" a new theory of how societies functioned as a whole. 2019 After writing a couple of articles on competition and population theory in 1846 which would late appear as chapters in the first volume of Economic Harmonies , 2020 he began work on it in earnest in the fall of 1847 when he gave some lectures at the Taranne Hall in Paris when he also probably wrote a touching "draft preface" in the form of an ironic letter to himself. In this letter he chastises himself for being too preoccupied with only one aspect of freedom, namely free trade or what he disparagingly called this "single crust of dry bread as food," and having neglected the broader picture. In several letters 2021 he refers to his project as a multi-volume study of "social harmonies" which would include a social, legal, and historical aspect, in addition to the economic. 2022 The plan was to devote one volume to the basic theory of social harmony broadly understood, 2023 before devoting another volume to one aspect of this larger whole, namely the economic dimension, 2024 and then at least one volume to the "disturbing factors" which disrupted social harmony. 2025 The latter volume would be a study of the "disharmonies" which resulted from the upsetting of the natural harmony of voluntary and non-violent human interaction by "disturbing factors" (les causes perturbatrices) such as war, slavery, and legal plunder. In other words, this volume would be "The History of Plunder" he had also planned to write.
The volume on "The History of Plunder" was especially dear to him. In a note at the end of the "Conclusion" to ES1 his French editor Paillottet tells us that:
The influence of plunder on the destiny of the human race preoccupied him greatly. After having covered this subject several times in the Sophisms and the Pamphlets, 2026 he planned a more ample place for it in the second part of the Harmonies , among the disturbing factors. Lastly, as the final evidence of the interest he took in it, he said on the eve of his death: "A very important task to be done for political economy is to write the history of plunder. It is a long history in which, from the outset, there appeared conquests, the migrations of peoples, invasions, and all the disastrous excesses of force in conflict with justice. Living traces of all this still remain today and cause great difficulty for the solution of the questions raised in our century. We will not reach this solution as long as we have not clearly noted in what and how injustice, when making a place for itself amongst us, has gained a foothold in our customs and our laws." 2027
Because he was so pressed for time as his health rapidly failed during 1849-50 he decided to focus on one aspect, the "economic harmonies", and leave the others to another time. In a burst of intense activity over the summer of 1849 in Louis XIV's old hunting lodge Butard in the woods west of Versailles (which had been made available to him to write in peace and quiet by his benefactors Hortense and Casimir Cheuvreux) he was able to finish the first part of Economic Harmonies with 10 chapters which was published in January 1850. 2028 He wrote to Félix in January 1850 soon after volume one had appeared, saying:
Now I would ask the heavens to grant me one year to write the second volume, which has not even been started, after which I will sing the "Nunc dimittis." 2029
But he continued to be (or allowed himself to be) distracted with other projects during his final year such as the pamphlet Plunder and Law (May 1850), The Law (June 1850), and What is Seen and What is Not Seen (July 1850). 2030 After his death on Christmas Eve 1850 his friends Prosper Paillottet and Fontenay assembled from his papers a more complete edition of the Economic Harmonies (with 15 additional chapters), along with a list of chapters he had planned for the additional volumes.
The other volumes were never written.
TextI had originally thought to begin with an exposition of the Economic Harmonies and as a result to treat only purely economic subjects, such as value, property, wealth, competition, wages, population, money, credit, etc. Later, if I had had the time and the energy, I would have called the reader's attention to a much larger subject, the Social Harmonies . It is here that I would have talked about human nature , the driving force of society , 2031 responsibility , solidarity , etc. … Having conceived the project in this fashion I had commenced work on it when I realised that it would have been better to merge rather than to separate these two different kinds of approaches. But then logic demands that the study of mankind should precede that of economics. However, there was not enough time: how I wish I could correct this error in another edition!… 2032
2008 Roger de Fontenay, "Notice sur la vie et les écrits de Frédéric Bastiat" in Vol. 1: Correspondance et mélanges (1862) in Oeuvres complètes de Frédéric Bastiat, mises en ordre, revues et annotées d'après les manuscrits de l'auteur. Deuxième Édition (Paris: Guillaumin, 1862-64), pp. ix-liii, quoted on p. xxxi-xxxii; "Avertissement," in Bastiat, Harmonies économiques. 2me Édition. Augmentée des manuscrits laissés par l'auteur. Publiée par la Sociétée des amis de Bastiat. (Paris: Guillaumin, 1851), pp. v-xi, quoted on p. vi.
2009 See the Editor's Introduction to T.317 "Introduction and Post Script to Economic Sophisms" (March 1845) above for details.
2010 See the glossary entries on "Dunoyer" and "Comte.".
2011 Letter 13. Félix Coudroy, Bordeaux, 9 April 1827, CW1, pp.21-22. In particular Dunoyer, "Esquisse historique des doctrines auxquelles on a donné le nom d' Industrialisme , c'est-à-dire, des doctrines qui fondent la société sur l' Industrie ," Revue encyclopédique , February 1827, no. 90, pp. 368-94.
2012 David M. Hart, Class Analysis, Slavery and the Industrialist Theory of History in French Liberal Thought, 1814-1830: The Radical Liberalism of Charles Comte and Charles Dunoyer (unpublished PhD, King's College Cambridge, 1994). And Robert Leroux, Aux fondements de l'industrialisme: Comte, Dunoyer et la pensée libérale en France (Paris: Hermann, 2015).
2013 Phrase used in the "Note" below.
2014 Letter 107. Letter to Richard Cobden, Paris, 18 August 1848, CW1, pp. 160-61.
2015 Letter 184. Letter to M. Cheuvreux, Mugron, 14 July 1850, CW1, pp. 260-62. Quote p. 261.
2016 T.149 "A Draft Preface to the Economic Harmonies " (Fall 1847), CW1, pp. 316–20. Quote p.320.
2017 In a letter to Félix the month before he died Bastiat talked of dedicating the next edition of the Harmonies to him in the hope that he might be able to complete it: "If my health returns and I am able to write the second volume of the Harmonies , I will dedicate it to you. If not, I will insert a short dedication in the second edition of the first volume. In the second of these cases, which will imply the end of my career, I will be able to set out my plan to you and bequeath to you the mission of completing it." Letter 203. Letter to Félix Coudroy, Rome, 11 November 1850, CW1, pp. 288-89.
2018 Letter 39. Letter to Félix Coudroy, Paris, 5 June 1845, CW1, pp. 62-65. Quote on p. 64.
2019 Letter 65. Letter to Richard Cobden, Mugron, 25 June 1846, CW1, pp. 105–6; and Letter 80. Letter to Richard Cobden, Paris, 5 July 1847, CW1, pp. 129-31. Quote on p. 131.
2020 Both appear as chapters in this volume below, pp. 000: T.64 "On Competition" (May 1846) and T.81 "On Population" (October 1846).
2021 In addition to the ones mentioned above, see also Letter 108 to Félix Coudroy, Paris, 26 August 1848, CW1, pp. 161–63.
2022 See in particular the list of planned chapters following chapter 10 "Competition" in Economic Harmonies (1851) FEE ed. pp. 554-55.
2023 The chapters would cover responsibility, solidarity, self interest or the "social motor or driving force," perfectibility, public opinion, and the relationship between political economy and morality, politics, legislation, and religion.
2024 The chapters would cover producers and consumers, individualism and sociability, the theory of rent, money, credit, wages, savings, population, private services, public services, taxation, on machines, free trade, on middlemen, raw materials and finished products, and on luxury.
2025 The chapters would cover plunder, war, slavery, theocracy, monopoly, governmental exploitation, false fraternity or communism. See the glossary on "Harmony and Disharmony."
2026 See in particular T.220 Property and Plunder (July 1848) in CW2, pp. 147-84 andT.257 Plunder and Law (May 1850) in CW2, pp. 266-76.
2027 Paillottet's footnote in "Conclusion" to ES1, CW3, p. 110.
2028 In a letter to Félix (26 Nov. 1848) he said that "They (the book's chapters) are in my head but I am very much afraid that they will never come out." Letter 115. Letter to Félix Coudroy, Paris, 26 November 1848, CW1, pp. 168-70. Quote on p. 169.
2029 "Nunc dimittis servum tuum, Domine" (Now Thou dost dismiss Thy servant, O Lord). In Letter 158. Letter to Félix Coudroy, Paris, January 1850, CW1, pp. 228-29. Quote on p. 229.
2030 T.258 The Law (June 1850) in CW2, pp. 107-46 and T.259 What is Sen and What is Not Seen (July 1850) in CW3, pp. 401-52.
2031 Bastiat uses the term "le moteur social" to which he devoted an unfinished chapter XXII in EH2. It is a hard term to translate adequately. In the Stirling translation (1880) it is "the social motive force"; in the FEE translation it is "the motive force of society"; in our forthcoming translation we call it "the driving force of society."
2032 Ronce omits the last part of the sentence "how I wish I could correct this error in another edition!" which can be found in Paillottet's and Fontenay's Foreword to the 1851 edition of EH.
T.249 (1850.01) Economic Harmonies. 1st ed.↩
SourceT.249 (1850.01) Harmonies économiques (Economic Harmonies). 1st ed. which contained the first 10 chapters. Manuscript in circulation by Dec. 1849, probably printed in Jan. 1850. [OC6] [CW5]
Editor's Note[to come]
Text[Because of the length of this book it is online in a separate page which will also include the complete 2nd edition of 1851.]
T.250 "Comments at a Meeting of the Political Economy Society on the Limit to the Functions of the State" (Part 2)" (10 Jan. 1850)↩
SourceT.250 (1850.01.10) Bastiat's comments on the limits to the functions of the state (part 2) at a Meeting of the PES (Séance de 10 jan. 1850). In "Chronique," JDE, 15 Jan. 1850, T. XXV, pp. 202-205; also ASEP (1889), pp. 94-100. Not in OC. [CW4]
Editor's IntroductionThis is the nineth record of eleven which we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
The topic for the second time in as many months was on establishing limits to the power of the state. The stenographer of the meeting expresses some frustration that the previous conversation had got sidetracked given the complexity of the topic and the range of views of the participants. They would return to the same topic at the next meeting of the Society.
The Polish economist Louis Wolowski argued for expanded state activity in the areas of insurance and land credit which he thought the states in Germany and Poland handled very well. M. Hovyn-Tranchère was an ally of Bastiat's in that he wanted a much more restricted sphere of activity for the state and thought that socialist ideas were not limited to small groups of activists like Louis Blanc in the Luxembourg Palace but had spread to many, perhaps most of the Deputies in the Chamber. Even so-called conservatives in the Chamber make unnecessary concessions to socialist ideas. Bastiat previously had made the same argument in Protectionism and Communism (January 1849) 2033 where he pointed out how much of socialist thinking had been accepted by conservative advocates of tariff protection and subsidies for industry.
Molinari was not present at this meeting physically but his recent work Evenings at Saint Lazarus Street (September 1849) had probably sparked these discussions in the first place. He would later argue that there was a distinction between "socialism from below" and "socialism from above." Like Bastiat, he thought the conservative elites who controlled the French state and got enacted policies of tariff protection and subsidies for industry and agriculture were a form of "socialism" which was similar to the demands of Blanc and others for subsidies for the employed and the working class. The former he called "socialisme d'en haut" (socialism from above) because the conservative elites wanted to use the power of the state to benefit themselves and their allies; the latter he called "socialisme d'en bas" (socialism from below) because Louis Blanc and the agitators in the socialist Clubs wanted to use the power of the state to benefit themselves and their allies. 2034
Bastiat entered the debate with objections to a state run insurance business as well as "Peoples Banks" like the ones advocated by the socialist-anarchist Proudhon. The remainder of the discussion covered topics such as the nature of public goods (although they did not use this term), such as education, the issuing of money, and public security, and whether or not they should be provided privately or by the state. Horace Say concluded that the determining factor was whether or not the state provided these services "better" than private industry. The President of the Society, Charles Dunoyer, warned those present that there were some economists, like Molinari, who wanted to reduce the size of the state "to nothing", but they were mistaken since, even if the state was strictly limited to only providing security, it necessary intervened indirectly in every aspect of life.
TextOne of the most sensitive questions that one can examine, one which at the same time applies to political economy and all the other sciences, including that of political philosophy, has been touched upon, and several other matters treated in depth, at the previous meeting of the Political Economy Society. 2035
Already on more than one occasion, at the insistence of some members, this question has been made the order of the day, but the conversation constantly ended up in a digression or (focused) on one particular case, such as (state) assistance (for the poor), expropriation (of private property) on the grounds of public utility, etc. This time, although some members who took part in this interesting discussion took pleasure in (pursuing) some particular questions, such as the state monopoly of insurance, land credit, as well as others, were happy to see that the problem was frankly taken up, probed, dug into, clarified, and even partly resolved.
To begin, the floor was given to M. Wolowski, 2036 Representative of the People, who would like to expand the functions of the State and to make it grease the wheels of the administration and take advantage of (state) centralisation to (introduce) a better system of insurance, and to establish in France institutions of land credit such as that which have been established in Germany and Poland. M. Wolowski thinks that it would be (both) useful and advantageous for the State, while not becoming involved in the operations of banking itself, to be able to centralise the payment of interest on land debt and mortgages, the repayment of this debt, and to provide a guarantee for the paper which covers these debts and mortgaged property. In addition he thinks that the State can be usefully employed in the organisation of retirement savings banks because it will inspire the greatest confidence possible for bank transfer payments and provide the greatest security for the payment of retirement pensions.
In doing all this. M. Wolowski believes that (the State) can act without (using) force against anyone, and (should) act only by making (these) facilities open in such as way as to stimulate and enrich the planning of the citizens, and at the same time removing parasitical jobs from the body politic. The Honourable Representative thinks that, although our country is too given to state intervention, and he is fearful every time this intervention (is used to regulate) the production of wealth, he finds that it (intervention) is advantageous in all those institutions whose purpose is the preservation of this wealth.
M. Hovyn-Tranchère 2037 put on trial the mania for State intervention in general. He had in mind for good reason (the example of) socialism pure and simple; and he showed that between the economic theories of the Luxembourg Palace 2038 and many of those men who belonged to the parties most opposed to them there was no more difference than logic pushed to its extreme by the revolutionaries of the kind we have just mentioned, and that (logic) which is incompletely (followed) by the others. State intervention is the scourge of our day; M. Hovyn-Tranchère believes that we have to fight it everywhere and to the bitter end, and that at the present moment it is even dangerous to halt the discussion at (more) specialised topics where there might perhaps be some advantage in letting the State intervene more or less.
Directing our attention to the matter of land credit, M. Hovyn-Tranchère, said with good reason that the numerous illusions which are floating about concerning this matter (and which have been entertained by many members of the Constituent Assembly, notably by the Agriculture Committee, (on this see the very surprising report by M. Flandin), 2039 have no other cause than ignorance of the most elementary principles of political economy. After some reflection on this, the Honourable Representative thinks that the greatest and sole service which could be given to (the system of) land credit and to indebted land owners is to facilitate the sale of (their) goods and their bankruptcy by reducing the property transfer tax.
This subject naturally led the Honourable Member to speak about the present state of eduction which he judged by the fruits which they bear, namely with the greatest harshness. The majority of men who become active in political affairs make concessions to socialism. They speak so eloquently about "order" and "liberty;" they demonstrate their courage but leave no trace of their passage. Since the level of understanding and public morality is getting lower, the Honourable Member concluded that if the tree has produced such fruit for such a long time then it is maggot ridden and it is time to cut it down.
As his general conclusion M. Hovyn-Tranchère thinks that the men charged with the administration of the country ought to stop abruptly and immediately going down the path which intervention is taking us to our ruin.
M. Bastiat spoke along the same lines as M. Hovyn. It is precisely the progress made by the insurance industry which shows what kind of a future (the principle of) (state supported) association has, and the danger that it would have (posed) had the State seized control of this branch of human activity; it would have found its progress ipso facto halted and paralysed, and would have never made any progress if, from the beginning, the State had intervened with its shackles and its bureaucratic practices. He finds the same arguments (apply) to the development of workers' self-help banks, 2040 and he insisted especially on this point that the State by intervening halts individual activity, gets in the way of social action, and weakens the energy which drives the human species to improve and develop itself. M. Bastiat only recognises and accepts the utility of State intervention in the enforcement and guarantee of security, things which require the use of force.
The Honourable Member (Bastiat) opposed a point made by M. Wolowski by arguing that the State had even less (reason) to involve itself in the preservation of wealth than in its production, since it required more moral strength, foresight, and individual energy to keep what one had (acquired) than to earn it.
M. Cherbuliez 2041 suddenly entered the conversation by asking what could be a solution to the problem posed by the Political Economy Society, namely (to identify) the general principles, so to speak the higher and governing principles, by means of which it would be possible to determine whether a given function of the State was within the purview of the government or whether it ought to be left to private industry.
By analysing State activity (in this way), M. Cherbuliez thinks that it includes three things: the unity of its goal, the unity of its management, and the bringing together of the force needed to achieve this goal.
By testing the (issues) of security and education against this principle he showed that in the case of security there was necessarily unity of purpose and unity of management for all members of the society, (since) everyone was interested in having order maintained and justice provided in the same manner; and finally in order to achieve this result, that is was essential that society gather together all its forces. It is not the same for education. Here, the unity of purpose does not exist; citizens are catholics, protestants, jews, etc., believers and non-believers; there are a thousand ways open to them to provide education for their children, and the unity of management simply leads to tyranny for education, and for learning under this bastard (of a ) standard under which we now groan.
M. de Colmont, 2042 continuing the discussion on the topic of finding a general principle, thought that the activity of government ought to be brought to bear in the defence of all interests, and be restricted to the maintenance of all liberties and all faculties, expressions which are, so to speak, synonyms. It is this which should occupy the administration of justice and the levying of taxes which this task requires. This is why the government, led by the way things are, has to retain the monopoly of the issuing of money, since there are advantages and security for everyone that this issuing of money be confined to its sole care. It is the same for the Postal Service and all (State) functions where it is recognised that State action is indispensable to maintain the full exercise of the liberties and faculties of every person.
In the eyes of M. (Horace) Say, the most practical criterium for judging if a function ought to be reserved to the State, or to be forbidden to it, is this: Does the State do better or worse than private industry? For example, by analysing labour and the development of (mutual) Benefit Societies M. Say showed that the State would never have been able to avoid the difficulties which this industry faced; that it would never have been able to assess the risks; and that it would never have been able to know how to combat the false declarations and claims with the same skill as the Companies driven by private interest. It is quite the opposite with security, concerning which it is impossible to do better than to place a part of (the State's) revenue in common, so that officers of an association which has been organised in the general interest 2043 can guarantee us security, justice, order, and the freedom of working, consuming, bequesting, giving (away) our goods, and exchanging with whomever it seems in our interest (to do so). It goes without saying that in several of these matters the State in no way achieves its goal, and that liberty is still strangely unknown to it.
M. Coquelin 2044 recalled a general principle which he had already expressed in a previous discussion. 2045 According to him, the State must intervene in matters of security and justice; it alone, soaring above all (human) activities like a Mount Sinai, can guarantee liberty and competition which are the life (blood) of all industries. But below this Mount Sinai, M. Coquelin allows no exceptions (to the principle of competition), not even that of the railways, which he does however appreciate might cause some people to hesitate.
Before closing the meeting, the President (of the Society) M. Charles Dunoyer was keen to make one observation of some usefulness, especially for those 2046 who might conclude from the general tendency of economists to reduce the functions of the State, that their intention would be to reduce it to nothing. He said that the simplest government, one which only looked after guaranteeing security, justice, liberty, the property of all citizens, would still necessarily intervene in all human activity; that it would intervene more than ever only in a legitimate manner, to pass good laws which would suppress everything which was bad and improper, as well as to (enforce) the application of these laws. It is not a small service, for example, to provide justice; today it (this service) is only provided in a very incomplete manner, and it is only by including it in its great and good area of specialization that the State will be able to perfect its activity, to better guarantee security, to better help liberty and equality triumph among mankind, and to better serve civilisation.
With the observation by M. Joseph Garnier that this discussion had led to the production of several (general) principles which needed to be thought about, gone into (more detail), and compared, the Society decided that it would take up this matter again at a future meeting. 2047
2033 CW2, pp. 235-65.
2034 Molinari, obit. Garner, JDE 1881, p. 9.
2035 The previous meeting of the Society was held on December 10, 1849 on dealt with the topic of state support for popularising the teaching of free market economic ideas (see above, pp. 000), and the meeting before that was held on October 10, 1849 where the topic was on the limits to the size of the state and Molinari's book on Evenings on the rue Saint Lazare (see above, pp. 000.
2036 See the glossary entry on "Wolowski."
2037 See the glossary entry on "Hovyn deTranchère."
2038 The former meeting place for the Chamber of Peers which was taken over by Louis Blanc in the first weeks of the February Revolution in order to organise the National Workshops program. See the glossary entry on "National Workshops."
2039 Louis Flandin (1804-1877) was made Advocate general to the Court of Appeals of Paris by the Provisional Government following the February Revolution. He was elected Deputy representing Seine-et-Oise from 1848 to 1851 and served on the Agriculture Committee. He vote with the conservative right and supported general Cavaignac for President of the Republic in the December 1848 election. He was a Councillor of State between 1852 and 1874. He published a report to the Assembly on the establishment of state supported land credit: Rapport fait, au nom du Comité de l'agriculture, sur les propositions des citoyens Turck et Prudhomme, relatives à l'établissement du crédit foncier, par le citoyen Flandin (Paris : Impr. de l'Assemblée nationale, 1849).
2040 The establish of state-supported "Peoples' Banks" was a pet scheme of Proudhon who tried to set up one through voluntary subscriptions (which failed) and then with government, i.e. tax-payer funded support.
2041 Antoine-Elisée Cherbuliez (1797-1869) was a Swiss lawyer, judge, and professor of law and political economy at the Académie de Genève. In 1848 he moved to Paris and became active in the Economists' circle, writing for the JDE and participating in the pamphlet war of 1848 on socialism. In 1849 he wrote a collection dialogues called Turtle Soup: Popular Discussion on Social Issues which Guillaumin published alongside Bastiat anti-socialist pamphlets and Molinari's Evenings on Saint Lazarus Street to appeal to ordinary workers.
2042 See the glossary on "Colmont."
2043 Say uses the expression "les agents d'une association générale" (agents or officers of a general association).
2044 See the glossary entry on "Coquelin."
2045 In the previous discussion on the limits to state action he had drawn a boundary line for the state "above" which there could be no competition but "below" which there could be. He offers a similar but more literary (or even biblical) distinction here. See above, pp. 000.
2046 He has in mind here Molinari who had the most radical theory of limiting the power of the state.
2047 Which it would do for third time in its February 10 meeting. See below, pp. 000.
T.313 "Speaks in a Discussion in the Assembly on Public Education" (6 Feb. 1850)↩
SourceT.313 [1850.02.06] "Speaks in a Discussion on Public Education". Short speech to the National Legislative Assembly, 6 Feb. 1850, CRANL, vol. 5, p. 386. Not in OC. CW4
Editor's IntroductionThis is the 14th of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
It was his second last appearance in the Chamber and it was a discussion he very much wanted to participate in as the freedom of education was very dear to his heart. His appearances were limited because of his worsening health, so he published a long pamphlet, Baccalaureate and Socialism , 2048 which he could distribute to the other Deputies in lieu of giving a long speech in the Chamber.
Under discussion was the second reading of the Law concerning Public Education which was held on the 5 February 1850 session. 2049 It would eventually lead to the passage of the Falloux Law of 15 March 1850. 2050 There were four issues in dispute, who should run the schools, who should set the curriculum, who should teach in the schools, and how the schools would be funded. The two main players were the State and the Catholic Church which had traditionally played the leading role in education. The result of the Falloux law was to allow members of the Church to teach without needing diplomas issued by the government University but under government supervision, requiring secular schools to employ teachers with government issued diplomas, and allowing the expansion of private secondary schools. Liberals like Bastiat got squeezed out of the debate as they objected to both the increased state funding and control of schools.
The President of the Assembly André-Marie Dupin summed up the state of play as a complex discussion of a bill which had scores of amendments which were encapsulated in three different bundles of amendments put forward by the conservative Pierre Saint-Beuve, 2051 the radical republican Victor Richardet, 2052 and Bastiat in the middle. Bastiat's specific amendments (the President said there were 10) are unclear as they are not listed in the Chamber's public record but there is evidence that the key issue was the removal of the phrase "by (having) a bachelor's diploma (of education)" from the proposed law setting the conditions that would allow someone to exercise the profession of a teacher in either public or private schools. This is an attempt by Bastiat to remove one of the key conditions by which the state, i.e. the state University which set the curriculum and issued the diplomas, could control education by only permitting those who had a state issued diploma to teach either public or private schools.
The radical M. Richardet's counter-proposal consisted of 6 articles the aim of which was the absolute liberty of education. 2053 They were:
Art. 1: Education is completely free.
2. All decrees, laws, ordinances, memoranda, and legislative provisions whatsoever, concerning education are revoked.
3. No restrictive or preventive law of any kind will be imposed upon education, which is one of the fundamental, inalienable, and imprescriptible rights of all citizens.
4. All citizens engaged in education will be able to associate, organise, and administer (their affairs) freely as they judge it convenient, so that they can offer to families the conditions of morality, capacity, and improvement (required for) their instruction and method (of teaching).
5. Local Communes will only impose on their schools municipal regulation of health and public morals.
6. All infractions will by judged by regular courts.
For some reason, Bastiat found Richardet's proposals too extreme and he thus tried to steer a middle course between Saint-Beuve's establishment position and Richardet's.
TextMonsieur President: 2054 I ask if the amendment has support?
From the Left: Yes! Yes!
(M. Bastiat goes up to the Lectern.)
Monsieur President: Monsieur Bastiat has the floor.
Monsieur Bastiat: Citizen Representatives, you have just rejected in succession two counter-proposals, one which proposed a system of liberty even greater than the one contained in my proposal, since I, by conforming to the Constitution, sought to organise the method of monitoring (it); the other proposal by Saint-Beuve which seems to me to more closely approach the Committee's proposal since it keeps the (government) University and thinks that it is compatible with liberty.
My proposal, in positioning itself between these two extremes, by adhering to the (principles) of the Constitution in all its provisions, which states that education is free under certain moral and physical conditions and is subject to supervision by the State, as I said (before) by positioning itself between these two extremes, it appears to me that it will have no chance of being passed by this Assembly. Therefore, I give up (my right) to speak on it any further and I reserve the right to take the floor and speak on one of the articles of the Committee's proposal concerning the liberty of education, not from the perspective of the people concerned, but on the subject matter and the method of education (Calls of "Very good".) 2055
Monsieur President: Now that will bring us back to the real amendments (under discussion). You can distribute them again and draft them differently …
2048 CW2, pp. 185-32.
2049 CRANL, vol. 5, p. 353.
2050 Named after Alfred-Frédéric Falloux (1811-1886) who was a liberal Catholic and was Minister of Education from 20 December 1848. He was elected Deputy of Maine-et-Loire in 1846. He was arrested after Louis Napoléon's coup d'état of 2 December 1851 and retired from politics.
2051 Pierre Saint-Beuve (1819-1855) was a lawyer, land owner, and factory owner in l'Oise. He was elected Deputy representing l'Oise in 1848-1851 and voted with the conservative right.
2052 Victor Richardet (1810-??) was a radical republican who voted with the left. He had been a road surveyor before being elected Deputy representing Salins-les-Bains (in the Jura) between 1849 and 1851. He went into exile after the coup d'état of Louis Napoléon of 2 December 1851.
2053 CRANL, vol. 5, p. 378.
2054 André-Marie Dupin (1783-1865) was President of the Legislative Assembly between June 1, 1849 and December 2, 1851.
2055 Bastiat goes into considerable detail on what he had in mind in his pamphlet on education Baccalaureate and Socialism , CW2.11, pp. 185-234. He wanted the state University to lose its monopoly on issuing degrees and requiring teachers to have one of these state issued degrees, to stop requiring the teaching of Greek and Latin which he believed passed onto students the warrior values of the ancient Romans and indirectly ideas about socialism, and forcing taxpayers to pay twice for the education of their children if they wanted to send them to a private school.
T.314 "Speaks in a Discussion in the Assembly on a Plan to give money to Workers Associations" (9 Feb. 1850)↩
SourceT.314 [1850.02.09] "Speaks in a Discussion on a Plan to give money to Workers Associations". Short speech to the National Legislative Assembly, 9 Feb. 1850, CRANL, vol. 5, p. 452. Not in OC. CW4
Editor's IntroductionThis is the 15th (and last) of eight speeches and seven other shorter contributions Bastiat gave in the Chamber between May 1848 and February 1850. See the Editor's Introduction above, pp. 000 for more details.
After this appearance in the Chamber Bastiat took a leave of absence and never returned. He would die in Rome on Christmas Eve 1850.
The speech covers a technical matter concerning the duty of the government to pay promptly money it had promised to a worker's association. As a result of the government's delay in paying, the workers were forced into great hardship and were close to bankruptcy. Although Bastiat says he was opposed to the government giving taxpayer's money to any kind of association, he did believe that the principle of association was such an important one that it should do nothing to impede or hamper it in any way. He didn't want the failure of this particular association, which was the fault of the government, to be blamed by the workers and their socialist friends on "the principle of association" itself.
TextDiscussion of a proposed law granting the Minister of Agriculture and Commerce a credit of 1,202,513 fr. 06 c. from (the budget) for fiscal year 1849, which was not spent by the end of fiscal year 1848, which had (allocated) 3 million francs for the benefit of some workers associations.
M. President: 2056 Does anyone wish to speak against the proposal?
I will remind the Assembly once again that here it is a matter of a grant and that the Government and the Commission (of Labour) ask that we act urgently on it. As a result, before we begin the discussion, and the Assembly has (already) decided that it will begin doing so immediately, I must consult the Assembly on the matter of its urgency.
A Member (of the Assembly): Monsieur Bastiat, speak about its urgency!
M. President: M. Bastiat has the floor on the matter of its urgency.
M. Bastiat: Citizens, I have only a few words to say and they are precisely on the matter of its urgency.
I wish to bring to the attention of the Assembly that it cannot not immediately vote in favour of the measure which is being requested, without compromising the honour and the reputation of France.
It is not a matter of a sum which it can allocate at its will. It is rather a sum which it has already allocated by a signed act of law.
We are in the same situation now as we were some time ago concerning Montevideo. 2057 Then, we had a serious matter to discuss, the Assembly voted on it; but reserved for another day the discussion of the main question.
(Here) we have a number of workers association, one of which we have promised to give a (certain) sum (of money), some capital, which it requires to operate. This capital should have been distributed to them in four or five payments. Well, what happened? The law was passed and notarised and an amount was due to be paid to the account of the workers. They had undertaken certain commitments, they made some purchases, while expecting to cover their expenditures with the money they expected to receive. But what happened? As a result of the failures of our accounting system, these unfortunate people were in arrears within four months. They have been obliged to sell their clothes, their furniture, and their tools, in order to keep their business afloat. They were sued in court, declared bankrupt, but in all truth it is the State which is bankrupt with respect to them.
I ask you Messieurs, if we ought to leave them in this position? I believe the question is extremely serious, not only regarding these (particular) individuals, but regarding associations (in general). As far as I am concerned, I have complete faith in the principle of association, which is tied up with society itself, and which ought to develop with it; but I am not a supporter of (public) funds which are given to associations at taxpayer expence. But I believe that there would be nothing more disastrous, when all is said and done, than if the State failed to meet its commitments, because then all the prejudices, all the preconceptions which we have to combat and will have to fight with so much difficulty (in the future), will (continue to) exist and will (grow) in strength. If associations fail we will not be able to say that it was the fault of (a) principle, rather (it was) the fault of the Government. Concerning what I have said, I challenge any manufacturer to withstand what these poor unfortunate (workers) had to cope with. They did it as a result of their great faith in the principle of association. They wrote to me and said "We will sell everything including the shirt off our backs rather than sacrifice this principle for which we are the Apostles." There they were for four months in this situation with an authorisation for a payment which had been approved by (our) notaries.
I say that, in these circumstances, it is impossible that the Assembly would reject (the bill's) urgency.
M. Manuel: 2058 There is no urgency. Article 17 states the opposite!
M. President: There is a difference in the delay in (its) promulgation, as a result the matter of its urgency can be agreed to. I consult the Assembly on the matter of its urgency.
(Its urgency is agreed to.)
2056 André-Marie Dupin (1783-1865) was President of the Legislative Assembly between June 1, 1849 and December 2, 1851.
2057 French and English naval forces blockaded the La Plata river for five years 1845-50 in order to put pressure on Juan Manuel de Rosas of the Argentine Confederation and support their allies in Uruguay, the Colorado Party, and bring an end to Rosas' policy of high tariffs of European products entering Argentina. The blockade ended when England (1849) and then France (1850) signed treaties with Argentina recongising its sovereignty over its rivers. Bastiat probably has in mind a major debate in the Chamber on 30 April 1849 on a bill to spend 8-10 million fr. to bring the La Plata Affair to an end and to begin negotiations to make a treaty recognising Argentina's independence and the freedom of river traffic. CRANL, vol. 10, pp. 340 ff.
2058 Jacques André Manuel (1791-1857).
T.251 "Comments at a Meeting of the Political Economy Society on the Limits to the Functions of the State (Part 3)" (10 Feb. 1850)↩
SourceT.251 (1850.02.10) Bastiat's comments on the limits to the functions of the state (part 3) at a Meeting of the PES (Séance de 10 fev. 1850). In "Chronique," JDE, T. XXV, no. 107, 15 fev., 1850, pp. 202-5; also ASEP (1889), pp. 100-5. Not in OC. [CW4]
Editor's IntroductionThis is the tenth of eleven records we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
This is the third and final discussion held by the Political Economy Society on the topic of the limits of the functions of the state. The two previous ones had been held on 10 October 1849 and 10 January 1850. 2059 Bastiat was present at all three which was unusual as he had missed many others because of his failing health or parliamentary duties. He had attended meetings intermittently beginning in October 1848 until the October of 1849 when he attended five in row. Immediately prior to that he had missed four in row over the summer of 1849 when he was secluded in the Butard hunting lodge just outside Paris working franticly to finish the first volume of Economic Harmonies . Once that was completed he had more time to attend and the subject matter seemed to interest him more, namely the three sessions on the proper limits to state functions, one on peace and disarmament, and one on his soon to be published book.
On the question of how limited the powers of the state should be the Society seemed to be split into four camps. At the furthest extreme was Gustave de Molinari's whose book Evenings on Saint Lazarus Street which was published in September provoked the first meeting on this topic in October. He did not attend any of the sessions as he was universally criticised for his advocacy of the private provision of all public goods, including police protection and national defence. Next to him, with an "ultra-minimalist" view of state functions was Bastiat and Hovyn-Tranchère who believed the state should limit itself strictly to protecting the liberty and property of citizens and providing only a very few public goods such as water supply, rivers, and managing the state-owned forests. The bulk of the members of the Society seemed to be supporters of a limited state along the lines defined by Adam Smith, namely, police and defence, and a broader range of public goods than the "ultra-minimalists" like Bastiat wished to allow, such as the delivery of letters and issuing currency. The fourth group was a heterogenous group of members such as the economist Wolowski and various lawyers and politicians who thought the government should be involved in providing subsidised land credit, savings banks, and other services to citizens because it could do so better than private enterprise. 2060
The final meeting on this topic is unusual in that it opens with an essay that one of the core members of the Society, Ambroise Clément, had written and the JDE had published on "The Rational Duties of Political Authority" in that month's issue which presents the consensus limited state perspective of the majority of the members. The topics covered in the meting include Michel Chevalier's argument that it was a mistake to set down in theory specific limits to state power when, as the English and Americans had shown with respect to public works like canal building and state colleges, that expedience was a better principle to follow. Bastiat countered by saying that the English free traders had always sought out the underlying principles behind what they advocated and this made them the radical force that that they were to become. He then argued that when the state provided services it harmed the consumer by forcing them to pay a fixed price for the good or service being sold. The Supreme Court lawyer Charles Renouard came up with the interesting argument that the state should not only avoid doing too much but also attempt to avoid doing harm, in a kind of political "Hippocratic oath" for politicians. There was also some discussion about how many people in France actually worked for the state and what impact this had on recent French politics.
TextWe are publishing (in this issue) a well-researched article by our colleague (Clément) 2061 on the fundamental question of the limit to the reasonable functions of (political) authority, with which the Political Economy Society concerned itself in its last two meetings.
We summarized the substance of the ideas which were expressed on this tricky subject in the meeting of 10 January, and we sketched in just a few words the opinions of the Members who spoke at the last meeting, according to the resumé of the previous discussion which was presented by M. Joseph Garnier, upon the invitation of the President M. Dunoyer.
M. Michel Chevalier established that in principle the solution to the problem posed (by the Society) was only found in an ideal (world) which civilisation would gradually reach; this ideal world consists of a maximum of liberty granted to the citizens and of a minimum of functions reserved for the government. But it is difficult to specify what this maximum and this minimum are, since they depend on the potential of individual industry, the aptitudes of citizens, and the energy of society. It is even necessary that we give up the desire to formulate these limits; and to imitate the English and Americans who, every time they had to get the State to intervene in large enterprises, did not dream of turning their "conduct of the moment" into a general system, (but) left it as a measure of expediency . 2062
When it was a question of the Erie canal, 2063 people were not troubled with the question of knowing whether it was worth more if the State built the canals or didn't; they asked who could do it: and as it was stated (earlier) if individuals couldn't undertake (the building) of this public utility the State intervened; but the intervention of the State was the rule of the moment, and later (private) companies were allowed to do it. Things happened the same way in England.
Furthermore, in the state of New York, they realised that there were not enough college professors, that there were not enough of them to (satisfy) the needs of the public; and the government, without establishing the principle that it would take control of education, set up a university, 2064 all the while not getting itself involved in secondary education, the need for which the free schools were fully satisfying.
In France, we have the all too frequent habit of wanting to generalise and establish some unchanging principles which apply to everything. Thus, there are those who, by turning some things into principles, have reached the conclusion that the State should never alone be responsible for the railways. In this way (too), opponents of commercial liberty have pushed their opposition to the extreme and have created this mad theory of national labour , 2065 (something) which is incompatible with all progress and all reforms.
M. Bastiat remarked that the English appeared to him to be be much more willing to take up questions of principle than M. Michel Chevalier said. When it was a question of free trade , 2066 M. Cobden and his friends at the very start went down to the basics of the doctrine and during the memorable campaign they never stopped proclaiming its legitimacy and drawing conclusions from that.
Returning to the main point of the discussion, M. Bastiat said that, since society was based upon a general exchange of services, this exchange ought to be undertaken freely and that the State, by intervening and by wishing to provide services, violated the liberty of the buyers of these services, by forcing them (the buyers) to accept them and to pay for them at a fixed price. From this he concluded once again the injustice of government intervention everywhere, except in the production of security and the administration of some common(ly) owned property, such as water supply, rivers, etc., to which some group of citizens, as a collective entity, had delegated some of its rights and powers in order to support.
M. Charles Renouard, 2067 a Councillor in the Supreme Court (Cassation) and one of the vice-presidents of the Society, recognised that the State had two duties, outside of which its intervention appeared to him to be harmful.
The first of these duties of the State was not to oppose the free development of morality and liberty by mixing itself in the affaires of its citizens; the second was to administer well what comprised the common interest, to maintain security and justice within the country, to guarantee the independence of the country, to maintain good relations with other societies across the world, and to establish a public force with sufficient men and finances to inspire respect. Beyond the fulfilling of these duties, the government (would) usurp its (proper) functions.
In an animated and thoughtful conversation M. Renouard insisted on the importance of not doing harm; assuredly, (doing) good was preferable, but in the absence of (doing) good, the absence of (doing) harm is a great good next to harm. Now, it is in abstaining more and more from seizing control of various branches of work that governments will at least stop doing a certain (amount) of harm, and will leave society to free itself from its nappies/diapers and advance towards liberty, morality, and civilisation. M. Renouard was pleased to say that taking everything into consideration mankind was steadily advancing towards progress, and that one could see this march just by considering some quite short periods of time. Society was much better (off) than it was 50 years ago, and 50 years ago it was much better than (it had been) in the time of Louis XIV, who was a great king but under whom none of us (today) would want to live.
The floor was then given to M. (Alphonse) Rodière, professor in the Faculty of Law in Toulouse and who was also teaching a free course in political economy to some students in that town. M. Rodière was currently in Paris as an examiner at the School of Law in Paris and had been invited to attend the meeting by the Society. M. Rodière remarked that there were only two logical positions (to take) in this serious matter: that of the socialists who want the State to do everything, and that of the economists who want the State to concern itself only with what is necessary or indispensable. The State ought to ensure respect for good laws, (whether) between one nation and another, or between one individual or another; it ought to maintain security, justice, the organisation of a public armed force, and to concern itself with some other related matters. At this time in France, the State has obviously gone beyond the limits of these natural functions, since there is a government employee (agent) for every 16 inhabitants 2068 , and perhaps even one for every nine if one includes the army in this average. By going to the root of the matter one can see in this fact the principle cause of the (political) spasms and the revolutions which have followed one after the other in our country.
M. Dussart, 2069 former Councillor of State, emphasised the necessity of the government in exercising its control over everything. He cited on this subject, the activity of the communal authorities who have to look after lighting, paving, running water, etc. activities which have been neglected in England, to the point where, in researching the causes of the high mortality (rate) during the cholera (epidemic), it was revealed that is some parts of London some sewers and dung pits had not been emptied for 50 years. 2070 He cited this recent law passed by Parliament which ordered an Irish land owner to "do justice to his land," that is to say to invest the necessary capital (to maintain it) or abandon it. From these and other facts, M. Dussart concluded that, without being too specific, he was (in favour of) quite extensive intervention by the State. His observations provoked several objections. As for the law on Ireland, it is doubtful whether experience has shown it to be profitable, and that this attack on the liberty of the landowners has been useful to the unfortunate people of that country.
M. Rodet, 2071 who completely supported the opinions expressed by M. Michel Chevalier, replied to M. Dussart that, (had) the system of intervention, control, and centralisation (existed then), the town of Bourges would never have been able to give Jacques Cujas a teaching position. 2072 Today the State would say to the municipal government of this town: "It is I alone who ought to teach the law." M. Rodet added that the State should only do what the Communes cannot do, and that the latter (should) only concern themselves with a few general matters which were unrelated to the work of its citizens.
M. Howyn-Tranchère closed the meeting by explaining clearly that in England and America, examples cited by M. Michel Chevalier and M. Rodet, that the principle of non-intervention was accepted; that the problem (had been) resolved in the public mind and in the government's mind; and that it was quite the opposite in our country, where as a result the principle of non-intervention had to be brought to (the public's) attention every time they strayed from it. M. Howyn remarked that, furthermore, the acts of intervention which have been cited are those of a particular State, of a "politicised" State, and not those of the State in the abstratct; while here at home intervention always comes from the central State, from the central bureaucracy.
2059 The previous meetings where they discussed limits to the power of the state were 10 October 1849 and 10 January 1850. See above, pp. 000 and pp. 000.
2060 Wolowski had made this point at the January 10 meeting, above, pp. 000.
2061 Ambroise Clément (1805-86) was an economist and secretary to the mayor of Saint-Étienne for many years. He was a member of the PES from 1848, a regular writer and reviewer for the JDE , and was made a corresponding member of the Académie des sciences morales et politiques in 1872.
2062 In English in the original.
2063 Michel Chevalier became interested in pubic works in North America after a trip in 1836 and wrote a book on it Histoire et description des voies de communications aux Etats-Unis (1840-41) and devoted several chapters to it in his Cours d'économie politique (1845–55).
2064 Chevalier might be thinking of the creation of the New York State Normal School in Albany established by the state legislature of New York in May 1844 to train teachers.
2065 The main opposition to the French Free Trade Association was the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment) established in 1846 by the textile manufacturer Pierre Mimerel de Roubaix and Antoine Odier. See the glossary entries on "Association pour la défense du travail national" and "Mimerel."
2066 In English in the original.
2067 See the glossary entry on "Renouard."
2068 Estimating the number of people employed by the French state at this time is almost impossible given the lack of accurate figures. Auguste Vivien attempted to do this in his Études administratives (Paris: Guillaumin, 1845; 2nd edition 1852) and came up with a figure of 250,000 employed by the central government, not counting those employed by local government or the armed forces (vol. 1 pp. 177-78). Ambroise Clément wrote in his article on "Fonctionnaires" (Public Servants) in DEP, vol. 1 , pp. 787-89, building upon Vivien's figures estimated that there were 500,000 to 600,000 pubic servants plus another 500,000 officers and soldiers in the military for a total of 1.1 million. A proportion of 1/16 (6.25%) in a total population of about 36 million would mean there were 2.5 million people who worked for the French state which seems far too many according to these figures.
2069 We have no information about Dussart.
2070 London had been hit by cholera outbreaks in 1832 and 1849 (one had swept through Paris in 1849 as well killing the young economist Alcide Fonteyraud). The latter killing over 14,000 people. The Broad Street outbreak of 1854 led to the pioneering work of John Snow who traced the cause back to contaminated water supplies. See the glossary entries on "Fonteyraud" and "The Cholera Outbreak of 1849."
2071 Denis Louis Rodet (1781-1852).
2072 Jacques Cujas (1522-159) was a French humanist legal theorist who wrote on Roman law, especially Justinian, and the evolution of law through history. He found it difficult to get a job in established universities because of the controversial nature of his thinking. After much travelling about he was finally offered a position in the Faculty of Law in Bourges where he taught from 1555-57 and 1559-66.
T.252 (1850.03) Free Credit↩
SourceT.252 (1850.03) Gratuité du crédit (Free Credit). An exchange of 14 Letters between Bastiat and Proudhon. See T.241 (1849.10.22) above for details. Also published as Intérêt et principale. Discussion entre M. Proudhon et M. Bastiat sur l'Intérêt (Extraits de la la Voix du Peuple) (Paris: Garnier frères, 1850). This edition left out FB's final response which was published in the Guillaumin edition. [OC5, pp. 94-335.] [CW4]
Editor's Note[to come]
Text(See T.241z above.)
T.253 "The Balance of Trade" (29 March 1850)↩
SourceT.253 (1850.03.29) "The Balance of Trade" (Balance du commerce). Written on 29 March 1850 for an unnamed journal; also published as a chapter in the pamphlet Plunder and Law (1850), pp. 54-61. [OC5, pp. 402-406.]
Editor's IntroductionThe idea that France should ensure by means of legislation that it have a "positive balance of trade," that is, that it sell more goods abroad than it paid for imports, was a perennial argument used by the protectionists. Bastiat had first written against this idea in October 1845 in an article also called "Balance du commerce" which was published in the Journal des Économistes and later appeared in the First Series of his Economic Sophisms in January 1846. 2073 His target in that article was Thémistocle Lestiboudois (1797–1876) who was a Deputy from Lille (elected 1842) who supported the liberals in 1844 in wanting to end the stamp tax on periodicals but opposed them in supporting protectionism. Bastiat returned to this topic again in March 1850 in order to rebut the similar arguments put forward by the protectionist Deputy François Mauguin (1785-1852), but he was unable to speak on the floor of the Chamber because of his worsening throat condition. Instead he published this short article in an unnamed paper to make his views known. The French editor Paillottet offered this explanation in a note:
During the discussion on the general budget for expenditure for the financial year 1850, Mr. Mauguin naively set out from the rostrum the old and erroneous theory of the balance of trade. ( Le Moniteur dated 27th March). Bastiat, who had already refuted him in his Sophisms , thought it necessary to attack him again, and as his health no longer allowed him to mount the rostrum, on 29th March 1850, he sent to a daily broadsheet the reflections we are publishing here. It should be noted that he has simplified the hypothetical calculations he used to elucidate his thesis by excluding some of the elements he had used in 1845. 2074
It should be noted that Paillottet is incorrect in thinking that Bastiat had argued against Mauguin in 1845. It was Lestiboudois.
The Balance of TradeThe balance of trade is an article of faith.
We know in what it consists: if a country imports more than it exports, it loses the difference. Conversely, if its exports exceed its imports, the surplus forms its profit. This is held to be an axiom and laws are passed in line with this.
On this basis, Mr. Mauguin, 2075 complete with figures, warned us the day before yesterday that France has an export trade in which she has managed to lose 200 million every year, gratuitously and without any obligation to do so.
"In eleven years you have lost 2 billion in trade, do you understand?"
Then, applying his infallible rule to the details, he told us "In 1847, you sold 605 millions' worth of manufactured items and purchased just 152 millions' worth. You therefore earned 450 million.
You purchased 804 millions' worth of unprocessed items and sold just 114 millions' worth. You therefore lost 690 million."
This is how, with daring naivete, you draw the full consequences of an absurd principle! Mr. Mauguin has found the secret of making everyone, even Messrs. Darblay 2076 and Lebeuf 2077 , laugh at the expense of the balance of trade. This is a fine success, and I may be allowed to envy it.
Allow me to assess the merit of the rule by which Mr. Mauguin and all prohibitionists calculate profits and losses. I will do so by relating two commercial operations, which I have had occasion to engage in.
I was in Bordeaux. I had a cask of wine worth 50 francs, which I sent to Liverpool, and the Customs Service recorded in its register an EXPORT OF 50 FRANCS.
On reaching Liverpool, the wine was sold for 70 francs. My agent converted the 70 francs into coal, which was found to be worth 90 francs in the Bordeaux market. The customs Service was quick to record an IMPORT OF 90 FRANCS.
The balance of trade showed a deficit of 40 francs.
On the basis of my studies, I would always have thought that I had earned this sum of 40 francs. Mr. Mauguin has shown me that I have lost this sum and that, through me, France has lost it too.
Why does Mr. Mauguin see a loss in this? Because he assumes that all surpluses of imports over exports necessarily imply an outstanding amount that has to be paid in écus. 2078 However, in the operation I have just spoken of, one which reflects all lucrative trading operations, where is the outstanding amount to be paid? Is it thus so difficult to understand that a trader compares current prices in various markets and takes the decision to trade only when he is certain or at least is likely to see the value of his exports return at an increase? Therefore, what Mr. Mauguin calls a loss should be called a profit .
A few days after my transaction, I quite frankly regretted it; I was annoyed that I had not delayed it, for the price of wine fell in Bordeaux and increased in Liverpool so that, had I not been in such a hurry, I might have purchased at 40 francs and sold at 100 francs. To tell the truth, I believed that, in these circumstances, my profit would have been greater. Mr. Mauguin's doctrine has it that it is the loss that would have been more crushing.
My second transaction, dear Editor, had quite a different outcome.
From the Périgord, I had sent to me some truffles that cost me 100 francs. They were intended for two famous English ministers at a very high price, which I intended to convert into pounds. Alas! I would have done better to eat them myself (the truffles, I mean, not the pounds or the Tories!). All would not have been lost, as it happened, since the ship carrying them foundered on leaving the port. The Customs Service, which this time had recorded an export of 100 francs, did not have an import to record against this. 2079
Mr. Mauguin would therefore say that France has earned 100 francs, for this is the very sum by which, thanks to the shipwreck, exports had exceeded imports. If the business had had a different outcome, if it had brought me 200 or 300 francs' worth of pounds, the balance of trade would then have been unfavorable and France would have suffered a loss.
From the point of view of science, it is sad to think that all trading enterprises that result in a loss according to the traders provide a profit according to this class of theoreticians who are always speaking out against theory. 2080
However, from a practical point of view, it is even sadder, for what is the result?
Let us assume that Mr. Mauguin had the power (and, to a certain extent, he has it through his votes) to substitute his calculations and wishes for those of the traders and to give, in his words "a proper trading and production system to the country, a proper incentive to the national output," just what would he do?
All the operations consisting in purchasing cheaply within the country in order to sell at a high price abroad and converting the profit into goods that were highly sought after at home, would be abolished by law by Mr. Mauguin, for these would be the very ones in which the value of the goods imported would exceed the value of those exported.
On the other hand, he would tolerate and encourage if necessary through subsidies (taxes on the general public) all the enterprises that are founded on this basis: purchasing expensively in France in order to sell cheaply abroad, in other words, exporting what is useful to us in order to bring in things we have no use for. Thus, he would leave us perfectly free to send cheese from Paris to Amsterdam, for example, in order to import fashion goods from Amsterdam to Paris, for we may be sure that, in this operation, the balance of trade would be totally in our favor.
Yes, it is a sad, and I will even add, degrading thing that lawmakers are unwilling to let those involved take decisions and act on their own account, at their own risk and perils, in these matters. At least then, each person would be responsible for his own actions; he who makes a mistake would be punished and have to mend his ways. However, when lawmakers tax and prohibit trade, if their ideas are hopelessly wrong, this error has to become the general rule of conduct of a great nation. In France we have a great love of liberty, but not much understanding of it. Oh! Let us try to understand it better and we will not love it any the less.
Mr. Mauguin asserted with imperturbable aplomb that there is no statesman in England who does not profess the doctrine of the balance of trade. After calculating the loss that, according to him, results from our importing too much, he cried out: "If a similar table were drawn up for England she would tremble, and no member of the House of Commons would not feel his seat threatened."
For my part, I state that if someone told the House of Commons "The total value of what leaves the country exceeds the total value of what enters it," it is then that its members would feel threatened and I doubt that a single speaker could be found who dared to add: "The difference between these two figures represents a profit."
In England, everyone is convinced that it is important for a nation to receive more than it gives. What is more, they have realized that this is the ambition of all traders, and for this reason the decision has been taken to leave things alone and to allow Freedom of Trade. 2081
2073 See "Balance du commerce" (The Balance of Trade) in JDE , October 1845, T. 12, pp. 201-04. It was republished in ES1 6 "The Balance of Trade," CW3, pp. 44-49.
2074 Note by Paillottet in OC4, p. 52.
2075 François Mauguin (1785-1852) was a successful lawyer and then Deputy during the July Monarchy and the Second Republic. He usually voted with the conservatives.
2076 Bastiat is referring to the older of the Darblay brothers, Auguste-Rodolphe Darblay (1784-1873) who was in the Legislative Assembly when Bastiat was there and voted with the conservatives. They had made a fortune in the flour milling business.
2077 Louis-Martin Lebeuf (1792-1854) was a banker, Vice-President of the Association for the Defence of National Labour, and served as Deputy in 1849. As an ardent protectionist he clashed often with Bastiat.
2078 The écu was a pre-revolutionary silver coin. In the 19th century people still referred to the five franc silver coin as an "écu."
2079 In his 1845 article Bastiat was much harsher in his criticism of the concept of the balance of trade. He mockingly argued that "according to the theory of the balance of trade, France has a very simple way of doubling its capital at every moment. To do this, once it has passed it through the customs, it just has to throw it into the sea. In this case, exports will be equal to the amount of its capital; imports will be nil and even impossible, and we will gain everything that the ocean has swallowed up." CW3, p. 48.
2080 Bastiat wrote a sophism on the protectionist's habit of disparaging theory. He wrote "People accuse us, advocates of free trade, of being theoreticians and not taking sufficient account of practical aspects ... you monopolists claim that facts are on your side and that we have only theories to support us ... No, you are not men of practice; you are men of abstraction . . . and of extortion.. See ES1 13 "Theory and Practice", CW3, pp. 69, 72, 75.
2081 Bastiat uses term "laissez-faire" here, which could also be translated as "to adopt a policy of laissez-faire."
T.254 (1850.04.01) "Reflections on the Amendment of M. Mortimer-Ternaux"↩
SourceT.254 (1850.04.01) "Reflections on the Amendment of M. Mortimer-Ternaux" (Réflexions sur l’amendement de M. Mortimer-Ternaux). Part of a debate in the Legislative Assembly 1 April 1850; also published as a chapter "To the Democrats" (Aux Démocrates) in the pamphlet Plunder and Law (Spoliation et loi) (Guillaumin, 1850), pp. 8-15. [OC5, pp. 513-17.] [CW2.18, pp. 362-65.]
Editor's Note[to come]1
TextTo All Democrats
We need, however, to make sure we understand one another. Has this word two opposing meanings?
For my part, I consider that there is a link between the aspiration that drives all men toward their physical, intellectual, and moral advancement and the faculties with which they have been endowed to pursue this aspiration.
This being so, I would like each man to have responsibility for the free disposition, administration, and control of his own person, his acts, his family, his business dealings, his associations, his intelligence, his faculties, his work, his capital, and his property.
This is how freedom and democracy are understood in the United States. Each citizen jealously guards his ability to remain his own master. This is [363] how the poor hope to rise out of poverty and how the rich hope to retain their wealth.
And in truth, we see that in a very short space of time this regime has enabled the Americans to achieve a degree of energy, security, wealth, and equality that has no peer in the annals of the human race.
However, there as everywhere, there are men who have no scruples in undermining the freedom and property of their fellow citizens for their own advantage.
This is why the law intervenes, with the sanction of the common force, to anticipate and repress this dissolute tendency.
Each person contributes to maintaining the force in proportion to his wealth. This is not, as has been said, a sacrifice of one part of one’s freedom to preserve the other. On the contrary, it is the simplest, most just, most effective, and most economical way of guaranteeing the freedom of all.
And one of the most difficult problems of politics is to remove from those in whom the common force is vested the opportunity to do themselves what they are responsible for preventing.
It would appear that French democrats see things in a very different light.
Doubtless, like American democrats, they condemn, reject, and stigmatize the plunder that citizens might be tempted to indulge in on their own behalf against one another, such as any attack on property, work, and freedom by one individual to the detriment of another individual.
But they consider this plunder, which they reject between individuals, as a means of gaining equality and consequently they entrust it to the law, the common force, which I thought had been instituted to prevent plunder.
Thus, while American democrats, having entrusted to the common force the task of punishing individual plunder, are deeply concerned by the fear that this force might itself become a plunderer, in the case of French democrats, making this force an instrument of plunder appears to be the very basis and spirit of the system they advocate.
They give these arrangements the grandiose titles of organization, association, fraternity, and solidarity. In doing this, they remove any scruples from the most brutal of appetites.
“Peter is poor, Mondor is rich. Are they not brothers? Do they not share solidarity? Should they not be put in association and organized? This being so let them share, and everything will be for the best. It is true that Peter should not take anything from Mondor; that would be iniquitous. But we will pass laws and create forces that will be responsible for the operation. In [364] this way, Mondor’s resistance will become factious and Peter’s conscience will remain clear.”
In the course of this legislature, there have been occasions on which plunder has been presented in a particularly hideous light. Those occasions are when the law has operated for the benefit of the rich to the detriment of the poor.
Well then! Even in these cases we have seen the Montagne applaud. Might this not be because what they want above all is to ensure this principle for themselves? Once legal plunder of the poor for the benefit of the rich has become part of the system, with the support of the majority, how will we be able to reject legal plunder of the rich for the benefit of the poor?
Oh unfortunate country, in which the sacred forces, which ought to have been instituted to ensure the rights of each person, are perverted so that they themselves violate these rights!
Yesterday, we witnessed a scene in the abominable and disastrous comedy in the Legislative Assembly that might well be titled The Comedy of Fools.
This is what happened:
Every year, three hundred thousand children reach the age of twelve. Out of these three hundred thousand children, perhaps ten thousand enter state secondary schools and lycées. Are their parents all rich? I do not know. But what can be stated categorically is that they are the richest in the nation.
Naturally, they have to pay the costs of board, education, and care for their children. However, they find this very expensive. Consequently, they have requested—and it has been granted to them—that the law, through the taxes on wines and spirits and salt, should take money from the millions of poor parents in order for the said money to be distributed to them, the rich parents, as grants, bonuses, indemnities, subsidies, etc.
M. Mortimer-Ternaux has asked for a monstrosity like this to cease, but his efforts have failed. The extreme right finds it very pleasant to have the poor pay for the education of the rich, and the extreme left finds it very politically astute to seize an opportunity like this to have the system of legal plunder passed and approved.
This makes me ask myself, “Where are we going? The Assembly must be governed by a few principles; it must either be wedded to justice everywhere and for all, or else it will be thrown into the system of legal and mutual plunder to the point where all the conditions of life are totally equal, that is to say, communism.”
Yesterday, it declared that the poor would pay taxes to relieve the rich. [365] With what impudence will it reject the taxes that will shortly be put forward to assail the rich to relieve the poor?
For my part, I cannot forget that, when I presented myself to the electors, I said to them:
“Would you approve a system of government which consisted in this: You will have the responsibility for your own lives. You will expect from your work, efforts, and energy the means to feed and clothe yourself, house yourself, get lighting, and achieve prosperity, well-being, and perhaps wealth. The government will have dealings with you only to guarantee you protection against any disorder or unjust aggression. On the other hand, it will ask from you only the minimal taxes essential for accomplishing this task.”
And everyone cried out, “We do not ask for anything else from it.”
Now, what would my position be if I had to present myself once more to these poor laborers, honest artisans, and courageous workers and say to them:
“You pay more taxes than you expected. You have less freedom than you hoped for. This is partly my fault since I strayed from the philosophy of government for which you elected me and on 1 April I voted for an increase in the tax on salt and wines and spirits in order to come to the aid of a small number of our fellow countrymen who send their children to state secondary schools.”
Whatever happens, I hope never to put myself in the sad and ridiculous position of having to say things like this to the men who gave me their trust.
Endnotes(Paillottet’s note) At the session of the Legislative Assembly on 1 April 1850, during the discussions on the budget for state education, M. Mortimer-Ternaux, a representative of the people, put forward as an amendment a reduction of three hundred thousand francs in expenditure on lycées and secondary schools, the establishments frequented by the children of the middle classes.
On this question, the representatives of the extreme left voted with the extreme right. When put to the vote, the amendment was defeated by a small majority.
The very next day, Bastiat published, in a daily news sheet, the opinion on this vote that we are printing.
T.255 "England's New Colonial Policy. Lord John Russell's Plan" (JDE, 15 Apr. 1850)↩
SourceT.255 (1850.04.15) "England's New Colonial Policy. Lord John Russell's Plan" (Nouvelle politique coloniale de l'Angleterre. Plan de Lord John Russel), JDE , 15 April 1850, T. XXVI, pp. 8-15. [DMH]
Editor's IntroductionWith the Revolution of February 1848 and the suspension of the French Free Trade Association Bastiat had directed most of his attention to politics and opposing the spread of socialist ideas over the following 16 months. He returned to his first love which was protectionism and its close connection with colonialism and war, with his big speech at the Peace Congress in August 1849 2082 and two articles published in the JDE in February and April 1850. 2083 An issue which kept coming up among some of his French critics were the motives of the British in introducing liberal reforms like the abolition of protectionism, the Navigation Acts, and slavery. The cynics believed that Britain was only introducing these reforms because it was in their material self-interest to do so. Bastiat on the other hand thought that reformers like Sir Robert Peel, Richard Cobden, and Lord Russell were genuinely committed to individual liberty.
To help persuade his critics that they had misjudged the British reformers Bastiat translated speeches by Richard Cobden (given at Bradford in early 1850) and Lord John Russell 2084 (given in Parliament in February 1850) so they could judge for themselves. We have included the speech by Russell because of Bastiat's introduction and commentary which is revealing. We have located the original transcripts of the debate in the Commons on February 8 1850 and have replaced Bastiat's translations with these originals. 2085
TextIf one were to ask oneself what economic policy in modern times has exerted the greatest influence on the destiny of Europe, perhaps one might answer, that it is the aspiration of certain people, particularly the English people, towards their colonies.
Might there exist in the world a single source which vomits on humanity so many wars, battles, oppressions, coalitions, diplomatic intrigues, hatred, international jealousy, spilt blood, displaced work, industrial crises, social prejudice, deception, monopolies, and misery of all kinds?
The first strike against the colonial system has been made voluntarily and scientifically in the very country in which it has been practiced with the greatest success and is therefore one of the greatest events which might be shown in the annals of civilisation. One would have to be deprived of the faculty of understanding the relationship between cause and effect not to see the dawn of a new era in industry, commerce, and the politics of nations.
For centuries the idea which dominated the policy of Great Britain was to have numerous colonies and to construct these colonies in such a way as to base their relationship with the mother country on "reciprocal monopoly." 2086 Now, do I have any need to state what that policy is? To seize control of a piece of territory, to break its communication with the rest of world for ever; these are acts of violence which can only be accomplished by force. It provokes reaction in the conquered country and the (other) countries which have been excluded, and it provokes resistance by the very nature of things. A nation which goes down this road puts itself by necessity in the position of being everywhere and always in the (most) wrong and of having to work without ceasing to weaken other nations.
Suppose that, when this system began, England had encountered a difficulty. Suppose that (someone) had pointed out, let us say arithmetically, that its colonies when organised in this fashion would have been a burden to it, that as a result, that its self-interest would have been to let them govern themselves, in other words, to liberate them; it is easy to see that, according to this hypothesis, the terrible effects which British power has had on the course of human events would have been transformed into an act of benevolence.
Now, it is certain that there are men in England who accept in their entirety the teachings of economic science, and demand, not out of philanthropy but out of self-interest (understood as what they consider to be the general good of England itself), the breaking of the ties that bind the Metropole to its 50 colonies.
But they have to fight against two powerful forces: national pride and the interests of the aristocracy.
The fight has begun. It belonged to Mr (Richard) Cobden to strike the first blow. We have brought to the attention of our readers the speech the illustrious reformer gave at a meeting in Bradford on 15 February. 2087 Today we are going to bring to your attention the plan adopted by the English Government, as presented by the Chief of the Cabinet Lord John Russell to the House of Commons in its sitting on 8 February last. 2088
The Prime Minister began by listing the number of English colonies. Then he discussed the principles according to which they were organised: 2089
In the first place, the object seems to have been to send out settlers from this country, and to enable them to colonise these distant islands. But, in the next place, it was [538] evidently the system of this country—as at that time it was the system of all the European countries—to maintain strict commercial monopoly in relation to its colonies. By various statutes, to which I need not further allude, several of which have been very recently under the consideration of the House, we took care that all the trade of the colonies should centre in this country; that all their productions should be sent here, and that no other nation should bring those products to this country, or carry them abroad. It was conceived that we derived great advantages from this monopoly; and Mr. Dundas, so late as 1796, speaking of the colonies, expressed the opinion, that unless the trade of our colonies was secured by us with monopoly, they would find a market for their goods elsewhere, which would be productive of great loss and detriment to the nation.
But there was another and a most remarkable characteristic attending these colonies, and this was, that wherever Englishmen have been sent, or have chosen to settle, they have carried with them the freedom and the institutions of the mother country.
With these words, Lord Russell quoted the letters patent granted by Charles I, according to which the founders of the colonies (Russell is quoting documents relating to Barbados) had the right to make laws "with the consent, assent, and approbation of the free inhabitants of the said province;" that their successors would have the same rights, as if they had been born in England, possessing "all the liberties, franchises, and privileges of this kingdom, and them to use and enjoy as liege people of England."
It is easy to understand that these two principles, namely the reciprocal commercial monopoly, and the right of the colonies to govern themselves, could not work together. The first one destroys the second, or at least it only leaves the quite illusory ability to decide petty municipal affairs, something which would have offended the prejudices concerning trade restrictions which were current in this period.
But these prejudices have faded away in public opinion. They have also faded away in legislation, as the commercial reforms achieved these past few years have shown. 2090
As a result of this reform, the English in the mother country and the English in the colonies have gone back to enjoying the freedom to buy and sell according to their respective desires and interests. The tie of monopoly has thus been broken, and commercial freedom has been achieved. Nothing any longer can oppose the proclamation of political freedom as well.
[Bastiat then continues to quote selected passages from Russell's speech in the Commons:]
… I think it is absolutely necessary that the Government and the House should determine and declare what are the principles upon which they will hereafter proceed. If, as I firmly believe, it is our duty to maintain our great and valuable colonial empire, let us see that those principles are sound which we adopt in our colonial administration; let us see that they are likely to conduce to the credit of this country, and to contribute to the happiness and prosperity of our colonies.
With regard to our commercial policy, I have already said that the whole system of monopoly is swept away. What we have in future to provide for is, that there [549] shall be no duties of monopoly in favour of one nation, and against another, and that there shall be no duties so high as to be prohibitory against the produce and manufactures of this country. I think we have a right to ask this in return for the protection which we afford to the colonies.
I now come to the question, as to the mode of governing our colonies. I think that, as a general rule, we cannot do better than refer to those maxims of policy by which our ancestors were guided upon this subject. It appears to me, that in providing that wherever Englishmen went, they should enjoy English freedom, and have English institutions, they acted justly and wisely. They adopted a course which was calculated to promote a harmonious feeling between the mother country and the colonies, and which enabled those who went out to these distant possessions to sow the seeds of communities of which England may always be proud.
… Up to 1828 there were very grave dissensions between the Ministers of the Crown in this country and the Canadian people. The Government of this country thought themselves justified in applying the taxes of Canada without the authority or consent of the inhabitants of the colony. Mr. Huskisson proposed an inquiry into that subject. Parliament, for a long time, turned its attention to the matter. Commissions were sent out; Committees were appointed; but, in the end, an insurrection broke out in Canada, and blood was shed both in the Upper and Lower Provinces. The Government of which I was a Member thought it necessary, for a time, to suspend the constitution of the colony. We afterwards proposed the union of the two provinces, and also to give the colony ample powers of legislation. In establishing that kind of government in so important a province, a question arose which, I trust, has been solved to the satisfaction of the people of Canada, although it is one which could not be solved in the same manner in a province of less importance, and of less extensive population. The popular party in Canada, proposed that they should have what they called responsible government—that is to say, that not only should there be a legislature freely elected, but that instead of what had become the custom, that the Ministry should be named by the Governor General totally irrespective of the prevailing opinions of the Legislature, they should be taken from that party in the Assembly which was supported by a majority. That plan was adopted.
… That government [551] has been conducted of late years in conformity with what Her Majesty's Ministers believe to be the opinion of the people of Canada. When Lord Elgin saw that the Ministry he had found in office had narrow majorities in the Assembly, he proposed either that they should continue in office until they were obstructed by adverse votes, or that they should dissolve the Assembly. They preferred to dissolve the Assembly. The new Assembly which was returned gave a great majority to their adversaries, and Lord Elgin placed their adversaries in office. I do not think that it would be possible to carry out more fairly, or more fully, the principle of allowing the province to manage its own affairs.
With respect, likewise, to Nova Scotia [552] and New Brunswick, no very long time ago the Executive Council was the same body as the Legislative Council, and there was no separate Legislative Council; but—I think it was when Lord Glenelg held the seals of office—a change was made, and the councillors have been chosen, if not from a particular party, in such a manner as to conciliate the opinion of the province, and to command the support of a majority of the Legislature in Nova Scotia and for New Brunswick. We have not heard of late years of those unhappy dissensions which used to prevail when the Executive Councillors of the Government found themselves in a small minority in the Assembly.
With respect to the Cape of Good Hope, there has been, of late years, a discussion with regard to the introduction of representative government. Lord Stanley had that question under his consideration; and without at all refusing the introduction of representative government, he pointed out many difficulties which had to be considered before the decision was ultimately come to. Those difficulties, and indeed every topic connected with the subject, have been discussed in the Cape by the Governor and his advisers, by the Colonial Secretary, the Chief Justice, and others, who are fully competent to form an opinion from their general knowledge of the principles of the Government, and likewise from their local knowledge of the interests of the colony; and the result is, that Her Majesty's Government have come to the decision that representative institutions shall be introduced [553] at the Cape. With respect to the representative assembly, they have adopted a franchise, into the particulars of which I shall not now enter, for the papers are in the hands of Members, enabling them to judge of the proposal; a representative assembly will be chosen by persons having a certain amount of property, and qualified in the manner which has been specified. But a question arose as to the formation of what is called in other colonies the legislative council; and, upon the whole, Her Majesty's Government came to the opinion, that, instead of imitating the constitution of Jamaica, or that of Canada, it Would be advisable to introduce into the Cape of Good Hope a council which should be elective, but elected by persons having a considerably higher qualification than that of the electors of the representative assembly. These, it was considered, might be persons who had been named by the Crown as persons of weight and influence, as magistrates and others, or persons who had been selected by municipal councils as persons entitled to the highest offices which they could confer. It is proposed that the representative assembly should have a duration of five years, and the legislative council a duration of ten years, but half to resign their seats at the expiration of five years.
… Now, with regard to Australia, the Bill which I have to ask that the Chairman should obtain leave to bring in, will propose legislation by Parliament upon that subject. The measure which I propose, and which is nearly the same as one that Was proposed last year, goes not on the [554] principle of having a council and assembly, as hitherto, in imitation of the Government of this country, has been usually the form most palatable and popular in our colonies; but it is proposed that there should be but one council, a council of which two-thirds shall be formed of representatives elected by the people, and one-third named by the Governor. The reason for adopting this proposal is, that after a great deal of deliberation, that plan was adopted some years ago, and, I think, was finally enacted by Parliament in 1842. Since that time, the scheme has been found so far acceptable to the people of New South Wales, that upon the whole, so far as we could ascertain their sentiments, they appear to prefer that form of popular government to I that which is more in analogy with the Government of this country. ["Hear, hear!" and "No!"] Well, for my part, I can only say that we have been anxious to adopt that form which was the most agreeable to the views of the colony, and that, if in New South Wales there had been a clear and prevalent opinion that it was advisable to leave their present constitution, and to adopt the form of council and assembly, the Government would have been quite ready to take that course, and that the Committee of the Council, to which this question was referred, would have proposed that constitution.
… With respect to other matters, there is a change, though not a very considerable change, in the Bill as it was first proposed last year; for we then proposed that the customs' duties which now prevail in New South Wales should be enacted by Parliament for the whole of the Australian colonies, and should be binding till they were altered by the proper authorities. We have thought that although it is a most desirable object that the customs' duties should not vary in the different Australian colonies, it is not advisable to enact that uniformity by authority of Parliament, but that it is better to leave them to settle for themselves whether they will not adopt a similar tariff for all the various parts of Australia.
… We propose that the Port Phillip district shall be separated from New South Wales, and that it should likewise have its council; and that there should likewise be introduced in Van Diemen's Land, where it has not existed before, a popular element into the Legislative Council, forming that council upon the same principle as the others, and that in South Australia there should be a similar body.
We propose, likewise, that on the proposition of two of these colonies there should be an assembly of these different Australian councils, that they should have the power of framing the same tariff for all, and that they should have various other powers which we think might be found useful, to pervade the whole of these colonies. To that body, likewise, we propose to refer the power of dealing with that question, which is so important to our Australian colonies—the price of the waste lands.
I do not know that I need enter further into the description of this Bill, because the Bill itself was in the hands of Members at the end of last Session; as I have said, there are no great alterations from what was then proposed, and in a few days I trust Members will again have the Bill in their hands, and they can canvass its contents. But I have stated enough to show that both in the North American colonies and in the Australian it is our disposition to introduce representative institutions, give full scope to the will of the people of those colonies, and thereby enable them to work their way to their own prosperity far better than if they were controlled and regulated by any ordinances that went from this country.
… With respect to New Zealand, we began very soon, in 1846, showing at least a disposition for representative institutions; showing, perhaps, too much haste in the manner in which we adopted them; but we began by enacting a Bill for the purpose of introducing representative institutions in New Zealand. The very able Governor of that colony pointed out the difference which exists between the native race of New Zealand and any of those native races with which the British people had hitherto had to deal, whether in North America, whether at the Cape of Good Hope, or whether in New Holland and Van Diemen's Land. He pointed out their capacity for civilisation; he pointed out how ill they would brook the interference and government of a small number of persons of the English race, who should have the sole legislative authority over them. His objections, when they reached this country, were felt by my noble Friend and by the Government to be founded in reason—founded in his knowledge of the people among whom he dwelt, and whom he was commissioned to govern; and we therefore proposed to suspend that constitution. The Governor now writes that he has introduced a Legislative Council in the southern part of New Zealand; he writes also that it is his opinion that at the expiration of the term fixed by Parliament, representative institutions can safely and usefully be introduced into New Zealand. Therefore, believing his opinion to be well founded, we propose only to wait for any further representations from him as to any alterations that should be made in the Act which passed with respect to New Zealand; and with regard to time, to introduce those alterations, that the constitution may be put [557] into operation at the time which has been already fixed by Parliament.
The Minister then outlined the plan which he proposed concerning Jamaica, Barbados, British Guiana, Trinidad, Mauritius, and Malta. He spoke about the repugnance which all the colonies felt about receiving convicts and concluded from that the necessity of restricting this form of punishment. 2091
As for emigration which had reached enormous proportions especially over the past few years, he was pleased to announce that the government would refrain from any intervention beyond a few subsidies and temporary assistance. "Emigration," he said, "has risen over the past three years to 265,000 people per annum." 2092 He estimated that the cost had been no less than 1,500,000 pounds sterling. 2093
[Bastiat summarises and paraphrases the following section:]
Now, I beg the House to consider how very large this emigration is. It is within 40,000 or 50,000 of what has been computed as the whole annual increase of the population of this country; and though it has been, no doubt, magnified in one or two of those years by the famine which took place in Ireland, yet I consider that as regards this first sort of emigration—namely, that which consists of labourers, and principally going to the United States and British North America—it is an emigration which we may look to see continue for many years. I believe that the means which the labouring classes have found for themselves, of transmitting money home to their relations and friends, to enable them to emigrate, when they have obtained a sufficient sum from their wages, is likely to continue, and to furnish the means of a great expenditure for the purposes of emigration.
I do not believe that the time will speedily arrive when there will be no great demands for labour in the United States and British North America. The difficulty which existed hitherto was that of finding means of transportation, and of enabling persons almost destitute here, and obtaining no demand for their labour, to get a position in other countries, where they could obtain that demand.
I do not believe that any Government scheme could have been so extensive as to effect that purpose; nor do I believe, that, if it had been so extensive, it would have effected the purpose in the same way as [564] this voluntary emigration. In the first place, if you laid out a hundred, or two or three hundred thousand pounds for that object, it would, no doubt, have been a very large sum; but I believe the sum which has been expended for the purpose, in the way I have mentioned, in one year, has been no less than 1,500,000l. sterling. Now, I believe, if you had laid out 1,500,000l., you would have found every species of abuse; you would have carried many persons from this country with false characters, and they would have been found such a curse by the United States and by our own provinces, that these countries would soon have put a stop to it, and have said—" Don't send to us the idle, the halt, and the crippled—the mere dregs of your population. If such is the character of your emigration, we must interfere and check it." That, I believe, would have been the consequence of any great plan of emigration carried on by the Government.
After a few more thoughts Lord Russel concluded as follows:
The whole result of what I have to say is, that in the first place, whatever discontent—and, in some places, well-founded discontent, it must be owned—has arisen from a transition painful to the colonists, from a system of monopoly, as regards the colonies, to a system of free trade, we ought not to attempt to go back, in any respect, from that decision, but that you shall trade with your colonies on the principle that you are at liberty to obtain productions from other countries where they may be produced better or cheaper than in the colonies, and that the colonies should be at liberty to trade with all parts of the world in the manner which may seem to them most advantageous. That, I say, must in future be a cardinal point in our policy.
The next point, I think, is, that in conformity with the policy on which you have governed your British North American colonies, you should, as far as possible, proceed upon the principle of introducing and maintaining political freedom in all your colonies. I think whenever you say political freedom cannot be introduced, you are bound to show the reasons for the exemption, and to show that the people are a race among whom it is impossible to carry out free institutions—that you must show the colony is not formed of the British people, or even that there is no such admixture of the British population as to make it safe to introduce representative institutions. Unless you can show that, I think the general rule would be that, you [566] should send to the different parts of the world, and maintain in your different colonies men of the British race, and capable of governing themselves; men whom you tell they shall have full liberty of governing themselves, and that while you are their representative with respect to all foreign concerns, you wish to interfere no further in their domestic concerns than may be clearly and decidedly necessary to prevent a conflict in the colony itself.
I believe these are the sound principles on which we ought to proceed. I am sure, at least, they are the principles on which the present Government intends to proceed, and I believe they are those which in their general features will obtain the assent and approbation of the House.
I believe not only that you may proceed on those principles without any danger for the present, but there may be questions arising hereafter which you may solve without any danger of such an unhappy conflict as that which took place with what are now the United States of America. On looking back at the origin of that unhappy contest, I cannot but think that it was not a single error or a single blunder which got us into that contest, but a series of repeated errors and repeated blunders—of a policy asserted and then retreated from [567] —again asserted, and then concessions made when they were too late—and of obstinacy when it was unseasonable. I believe that it was by such a course we entered into the unhappy contest with what were at its commencement the loyal provinces of North America. I trust we shall never again have to deplore such a contest. I anticipate indeed with others that some of the colonies may so grow in population and wealth that they may say—" Our strength is sufficient to enable us to be independent of England. The link is now become onerous to us—the time is come when we think we can, in amity and alliance with England, maintain our independence." I do not think that that time is yet approaching. But let us make them as far as possible, fit to govern themselves—let us give them, as far as we can, the capacity of ruling their own affairs—let them increase in wealth and population, and whatever may happen, we of this great empire shall have the consolation of saying that We have contributed to the happiness of the world.
It is not possible to announce the greatest things with such simplicity, and so it is that, without directly looking for it, one come across true eloquence.
2082 See, above, pp. 000.
2083 "Réforme coloniale en Angleterre. Discours prononcé au meeting de Bradford, par M. Cobden," JDE, T. 25, no. 107, 15 fév. 1850, pp. 264-70; and "Nouvelle politique coloniale de l'Angleterre. Plan de Lord John Russel," JDE, T. 26, 15 April 1850, pp. 8-15.
2084 John, first Earl Russell (1792-1878) was the leader of the opposition in 1845 and favored the repeal of the Corn Laws and advised the prime minister, Sir Robert Peel, to take a similar stance. Russell became prime minister in 1846 after the collapse of Peel's government. See the glossary entries on "Russell," "Peel," and "The Corn Laws.".
2085 Hansard 1803-2005 . Colonial Policy. HC Deb 08 February 1850 vol 108 cc535-67:
2086 Bastiat first used this expression in his first essay published in the JDE in October, 1844, "On the Influence of French and English Tariffs on the Future of the Two People" in CW6 (forthcoming).
2087 "Réforme coloniale en Angleterre. Discours prononcé au meeting de Bradford, par M. Cobden," JDE, T. 25, no. 107, 15 fév. 1850, pp. 264-70.
2088 In Hansard, online at: Colonial Policy. HC Deb 08 February 1850 vol 108 cc535-67:
2089 The page numbers in Hansard are indicated in the passage.
2090 The protectionist Corn Laws were repealed in in 1846 and the Navigation Acts were repealed in 1849. See discussion in the SEP on the emancipation of the colonies in December 1848, above p. 000; and the glossary entry on "The Navigation Act.".
2091 Russell gave the example of the colony of New South Wales which had at that time 200,000 inhabitants of which only 6,000 were convicts. Convicts were first sent to New South Wales on 20 January 1788 and continued until1 October 1850 when it was abolished. About 160,000 were sent to Australia in total, of which about half were sent to NSW. Between 1788 and 1842 about 80,000 convicts had been sent to NSW.
2092 Russell stated: "the total emigration from these kingdoms for the last three years was 796,354 persons; giving an average of 265,450 per annum." [563]
2093 Hansard, p. 564.
T.256 "Comments at a Meeting of the Political Economy Society on Land Credit" (10 Apr. 1850)↩
SourceT.256 (1850.04.10) Bastiat's comments on land credit at a Meeting of the PES (Séance de 10 Avril 1850. "Chronique," JDE, 15 April 1850, T. XXVI, pp. 99-101; also ASEP (1889), pp. 109-13. [DMH] Not in OC.
Editor's IntroductionThis is the eleventh and final record we have of Bastiat attending one of the regular monthly meetings of the Political Economy Society. See the Editor's Introduction to the first one, above pp. 000, for more details.
This is the last meeting of the Society Bastiat attended before his poor health forced him to leave Paris to spend the summer in his home Department taking the waters at the spa town of Eaux-Bonnes in a fruitless attempt to recover, and working on his last and perhaps best known pamphlets, The Law (June 1850) and WSWNS (July 1850). He must have been very unwell as he said very little at the meeting. He was also depressed at the poor reception his book Economic Harmonies had had among his colleagues and the unseemly delay in reviewing it in the JDE (one finally appeared in June some 6 months after it had appeared in print). 2094
The topic for this month's discussion was land credit or mortgage which had been discussed recently by various bodies such as the Agricultural Council, the Council for Agriculture, Manufacturing, and Commerce, as well as the National Assembly. The socialists had taken up the idea of government of subsidised "Peoples Banks" (most notably by Proudhon) during 1848 and 1849 as a way to alleviate the heavy indebtedness of small shopkeepers and famers and the economists had responded vigorously, with several essays by Louis Wolowski in the JDE 2095 and Bastiat's long debate with Proudhon over "Free Credit" (October 1849- March 1850). 2096
Bastiat began the debate but said very little. The discussion ranged over historical reasons why the French people had bought more land than they could pay for and the legal obstacles placed in the way of selling land easily to get out of debt. There was some support for the idea of some government intervention to guarantee fixed low mortgage payments for farmers as existed in some of the German states and Poland and how that might work in France.
TextAt this meeting, the Political Economy Society was concerned with the subject which was the order of the day at the Agricultural Congress and the Council for Agriculture, Manufacturing, and Commerce, 2097 and which the Assembly itself took up with a proposal put forward by the Honourable M. Wolowski. 2098 We wish to talk about land credit, a subject which follows naturally from that of the constitution of banks, which we treated in the previous meeting.
We don't need to say that the Political Economy Society has never confused the capability given to the land owner to borrow at his own risk, capabilities which have improperly been called "land credit," with credit for improving rural land, or credit which is similar to that given to other producers. Nor is there any need to add, concerning this or any other question which we have discussed, that the Political Economy Society has been deluded as have many others elsewhere about the wonders of land credit and of agricultural credit, such marvels which they wish the State to profit from, which French landowners in a short period could be exonerated from the 11 to 12 billion francs of mortgage debt, that the country ought to have a mass of paper wealth from compulsory sales either by forcing this criminal (thing called) money to circulate, or this tyrant of capital to produce.
If the Political Economy Society has the pleasure of proving that has never lost its mind, it sees with some satisfaction that reason is beginning to reappear as well in the public mind, concerning questions of agricultural and land credit.
M. Bastiat, 2099 Representative of the People, took the floor first and began by describing the illusions which have been generally made about the use of credit for agricultural production and showed that instead of looking for some imaginary assistance for agriculture, quite simply all that is needed is to remove the obstacles which prevent the transfer of landed property.
M. Howyn-Tranchère then brought to our attention the changes which customs have produced in the countryside, where everybody always buys too many fields in order to satisfy their need to acquire things, and (thereby) deprives themselves of the capital needed to improve the land. The Honourable Representative fears that land credit, since it is thought to be (well) organised and productive, in no way answers the needs of agriculture, and that the resources that it offers are not at all devoted to farming, but to buying yet more land. "In the end, he says, it is only necessary to look for a way to make it easier to liquidate a mortgaged property, (for example) by the sale of a part of the land separated from the rest. Now, the simplest way to get this result is to lower the taxes on transferring and conferring land titles."
M. Horace Say agreed wholeheartedly with this general idea that the co-called "organisation of land credit" was above all a matter of obstacles in our Law Codes and administration which have to be got rid of. He spoke about and explained the nature of these obstacles. First of all, he explained how the value of land has been raised by the impact of the laws (governing) the (system) of tariff protection, in such a way that the mortgage payment was in part based upon an component which was quite artificial. In the second place, partly because we have inherited the prejudices of our forebears concerning the role played by land(ed property) which for a long time was granted certain rights and benefits which have not been granted to other forms of property, and partly because over the entire revolutionary period property in land offered greater security (and) fortunes were made by acquiring land whose value increased at a greater rate as a result of the preponderance of demand. So that when all is said and done, credit today is based upon two (sources of) value which are artificial.
In the third place, all our mortgage laws have been impregnated with a spirit of feudalism and have been combined in such a way as to prevent a land owner from being evicted; without taking into account the special protection given to women and minors, who have not in fact taken advantage of it.
Fourthly, if you wish to lend or borrow using installments you come up against the code of criminal procedure with its formalities, tax requirements, and delays, which are like all the bad old practices used against the Jews, the Lombards, and the usurers, but (now) harming and hindering all lenders indiscriminately, leaving them to die of hunger in the face of a loan for which they cannot be reimbursed.
Hardship, reform, land credits, all of this (is tied to) the reduction and abolition of the following obstacles: 1. the customs laws, 2. the prejudices and other factors which encourage buyers towards land, 3. the Mortgage Code, 4. the Criminal Code of Procedure.
M. Louis Leclerc, 2100 after having fully accepted the observations of MM. Bastiat, Howyn and (Horace) Say, reminded us that in addition to all the improvements which had just been discussed, that it would be desirable to see introduced in France similar institutions to those which have operated for a long time in Poland, Silesia, and other parts of Germany, which ease the burden of the debts of the land owners and the loans made by capitalists, with the issuing of mortgage papers carrying a very low level of interest, which agriculture needs, and requiring repayment in installments over a period of 40 years.
Concerning this matter, M. Leclerc reminded us of the quite reasonable resolution made earlier this year by the 500 members of the Agriculture Congress who almost unanimously rejected (the idea of) a forced suspension of mortgage payments and the taking over of the administration of mortgage banks by the government. 2101
On the subject of these Polish and Prussian institutions, M. (Louis) Rodet, 2102 who is a member of the Chamber of Commerce, made the observation that in our country there were not the same conditions necessary for (their) success. Indeed, in Poland, in Silesia, and in Prussia landed property is still feudal, and the land owners enjoy a situation of solidarity which no longer exists in France.
M. Rodet then went into some detail about the special nature of agricultural production and revenue which comes from the land. He concluded by reminding us that in England men who have managed to acquire some capital dream of remaining a farmer, while in France the contrary is the case. It is rare for the son of a farmer, if he becomes prosperous, to continue in the same profession as his father. Here we have a fact of (local) customs which in part explains the situation of our agricultural industry.
After the meeting ended, the conversation continued among various groups who had attended. This meeting was much better attended that the previous one, which in turn had been the best attended we had (ever) seen. M. Bommart, a former Deputy and Inspector of Studies at the School of Bridges and Roads, had been invited to this meeting by the Society; as had M. Léopold Javal and M. Roger de Fontenay 2103 who had been invited by some members of the Society; and M. Giraud, a Member of the Institute, M. Vée, former Mayor of the 5th Arrondissement (in Paris), and M. de Billing, former Ambassador in Denmark, (all three of whom) had been recently nominated Members of the Society.
2094 Ambroise Clément, "Harmonies économiques, par M. Frédéric Bastiat. (Compte-rendu)," JDE, T.26, no. 111, 15 juin, 1850, pp. 239-47.
2095 Louis Wolowski, "De l'organisation du crédit foncier," JDE, T.21, no. 92, 15 novembre 1848, pp. 401-24; "De l'organisation du crédit foncier. Deuxième partie: Les associations de crédit," JDE, T.22, no. 93, 15 décembre 1848, pp. 19-39; and Louis Wolowski, "De la réforme hypothécaire," JDE, T. 27, no. 116, 15 novembre 1850, pp. 305-23.
2096 See above, pp. 000.
2097 Louis Leclerc reported on the Council for the JDE: Louis Leclerc, "Congrès central d'agriculture. — Septième session," JDE, T. 26, N° 109, 15 avril 1850, pp. 48-57.
2098 Wolowski had introduced in the National Assembly a motion to discuss reorganising the system of land credit on June 2, 1849. He wrote several articles on land credit for the JDE between 1848 and 1850 as well as the official report for the Council for Agriculture, Manufacturing, and Commerce: Rapport fait au Conseil général de l'agriculture, du commerce et des manufactures, au nom de la Commission chargée de la question relative au crédit foncier (1850).
2099 Bastiat had recently finished his long debate with Proudhon on "Free Credit" which took place between October 1849 and March 1850. See above, pp. 000.
2100 Louis Leclerc (1799-1854) was a founding member of the Free Trade Association, a member of the Société d'Économie Politique, an editor of the JDE and the Journal d'agriculture.
2101 Leclerc, "Congrès central d'agriculture," JDE, p. 56.
2102 See the glossary entry on "Rodet."
2103 Fontenay, Roger-Anne-Paul-Gabriel de (1809–91) was a member of the PES and worked with Prosper Paillottet, as "the friends of Bastiat," in editing the Œeuvres complètes of Bastiat. He was a regular contributor to the JDE right up to his death.
T.257 (1850.05.15) "Plunder and Law" (JDE, May 1850)↩
SourceT.257 (1850.05.15) Plunder and Law (Spoliation et loi) published originally as "To the Protectionists in the General Council of Manufacturers" (À MM. les protectionnistes du Conseil général des manufactures) in Journal des Economistes, 15 May 1850, T. 26, no. 110, pp. 160-67; and then as a separate pamphlet Spoliation et Loi (Plunder and Law) (Paris: Guillaumin, 1850) with 3 other essays (editor not named). [OC5, pp. 1-15.] [CW2.13, pp. 266-76.]
Editor's Note[to come]1
TextTo Those Who Favor Protectionism in the General Council of Manufacturers
You do not wish political economy to believe in and teach free trade.
This is as if you were saying, “We do not want political economy to concern itself with society, exchange, value, right, justice, or property. We recognize two principles only, oppression and plunder.”
Can you imagine political economy without society? Society without exchange? Exchange without a means of evaluation between the two objects or two services being exchanged? Can you imagine this rate, known as value, as anything other than a result of the free agreement of the people doing the exchanging? Can you imagine that a product is worth another if, in the exchange, one of the parties is not free?2 Can you imagine free agreement between the parties without freedom? Can you imagine that one of the contracting parties could be deprived of freedom, unless one contracting party is being oppressed by the other? Can you imagine exchange between an oppressor and an oppressed party without the equivalence value of the [267] services being distorted and therefore without rights, justice, and ownership being very seriously infringed?
What do you want? Tell me frankly.
You do not want trade to be free!
Do you therefore want trade not to be free?
Do you therefore want it to be carried out under the influence of oppression? For if it were not carried out under the influence of oppression, it would be carried out under the influence of freedom and that is what you do not want.
Admit it, what is worrying you is right and justice; what is worrying you is ownership—not yours, of course, but that of others. You find it difficult to accept that others are free to dispose of their property (the only way to be an owner); you want to dispose of your property . . . and theirs.
You then require economists to draft into a body of doctrine this jumble of absurdity and monstrosity in order to establish the theory of plunder for your use.
However, this is just what they will never do, for in their view plunder is a principle of hatred and unrest, and if there is a more particularly hateful form for it to take on, it is above all the legal form.3
[268]Here, M. Benoît d’Azy, I must take you to task. You are a moderate, impartial, and generous man. You do not set store by your interests and wealth; you are the one who constantly proclaims this. Recently at the General Council you said: “If the rich needed only to give up what they had for the people to be rich, we would all be ready to do it.” (Oh yes! That is true!) And yesterday at the National Assembly: “If I thought that it was up to me to give all workers the work they needed, I would give all I owned to achieve this good act . . . which is unfortunately impossible.”
Although the pointlessness of the sacrifice occasions in you the great sorrow of not performing it and has you echoing the words of Basile, “Money! Money! I despise it . . . but I am keeping it,” surely no one will doubt such striking generosity of mind, whatever its impotence. It is a virtue that likes to shroud itself in a veil of modesty, especially when it is purely inactive and negative. For your part, you do not miss an opportunity to display it in front of the entire country from the pedestal of the rostrum in the Luxembourg [269] Palace to the Legislative Palace. This proves that you cannot contain its outbursts although you contain its effects, with regret on your part.
But when it comes to it, no one is asking you to give up your wealth, and I agree that it would not solve the social problem.
You would like to be generous, but you cannot do it to any good purpose. What I venture to ask you is to be just. Keep your wealth, but allow me to keep mine. Respect my property as I respect yours. Is this too bold a request that I am making?
Let us suppose that we were in a country in which free trade held sway, where everyone was able to dispose of his work and property. Does your hair stand on end? Calm yourself; this is only a hypothesis.
We are therefore all just as free as each other. There is indeed a rule of law, but this law, entirely impartial and just, far from undermining our freedom, guarantees it. It comes into action only if we try to exercise oppression, either you of me or I of you. There is public enforcement, there are magistrates and gendarmes, but all they do is to carry out the law.
This being so, you are an ironmaster and I am a hatmaker. I need iron for my own use or for my production. Naturally I ask myself, “How can I procure the iron I need for the least amount of work?” In view of my situation and knowledge, I discover that the best solution for me is to make hats and deliver them to a Belgian who will give me iron in return.
However, you are an ironmaster, and you say to yourself, “I know how to make this rascal (referring to me) come to my company.”
Consequently, you adorn your belt with sabers and pistols, arm your many employees, go to the border, and there, when I am on the point of carrying out my exchange, you shout, “Stop, or I will blow your brains out!” “But, my lord, I need iron.” “I have some to sell.” “But, my lord, yours is very expensive.” “There are reasons for this.” “But, my lord, I also have reasons for preferring cheaper iron.” “Well then, see what is going to decide between your reasons and mine. You fellows, take aim!”
In short, you prevent Belgian iron from entering the country and at the same time you prevent my hats from leaving.
Given the free society we have assumed, you cannot deny that this is a clear act of oppression and plunder on your part.
I therefore quickly call on the law, a magistrate, and public enforcement. They all intervene; you are judged, condemned, and justly punished.
But all this gives you a bright idea.
You say to yourself: “I have been very stupid to go to so much trouble. [270] What, exposing myself to killing or being killed! Making a journey! Taking my employees with me! Incurring huge expense! Making myself out to be a robber! Deserving to be condemned by the country’s courts! All this to oblige a lowly hatmaker to come to my workshop to buy iron at my price! If only I could win over the law, the magistrates, and public enforcement so that they serve my interests! If only I could have them carry out at the border the odious act I was going to do myself!”
Excited by this attractive prospect, you get yourself elected to office and you get legislation enacted with the following provisions:
Article 1: A tax will be levied on everybody (and in particular on my cursed hatmaker).
Article 2: With the product of this tax, we will pay men to guard the border well, in the interests of ironmasters.
Article 3: The guards will ensure that no one can trade hats or other goods with Belgians in return for iron.
Article 4: Ministers, public prosecutors, customs officers, tax collectors, and jailers will be responsible, in their respective domains, for carrying out this law.
I agree, sir, that in this form plunder would be infinitely gentler, more lucrative, and less dangerous for you than in the form you originally envisaged.
I agree that it would have a very pleasant side for you. You would certainly be able to laugh up your sleeve, since you would have burdened me with the entire expense.
However, I assert that you would have introduced into society the basis of ruin, immorality, unrest, hatred, and constant revolution; you would have opened the door to all forms of socialist and communist experimentation.4
You will doubtless consider my hypothesis very bold. Well then! Turn it round against me! I am quite willing, given my love of proof.
I am now a worker and you are still an ironmaster.
It would be an advantage for me to acquire the tools of my trade cheaply or even free. However, I know that there are axes and saws in your workshop. [271] Therefore, with no further ado, I enter your shop and take everything that I want.
But you, using your right of legitimate defense, initially repel force with force. You then call upon the assistance of the law, magistrates, and public enforcement to have me thrown into prison, and you have acted rightly.
“Oh, dear!” I say to myself, “I have been stupid to do this. When you want to benefit from other people’s property, it is not in spite of but by virtue of the law that you should act if you are not an imbecile. Consequently, since you have become a protectionist, I will become a socialist. As you have arrogated to yourself the right to profit, I invoke the right to work, or to the tools of my trade.
What is more, in prison I read my Louis Blanc and I know this doctrine by heart: “What the proletariat need to throw off their yoke are the tools of their trade, and the function of the government is to give them the tools.” And also: “Once you agree that in order to be genuinely free, man needs the power to exercise and develop his faculties, it follows that society owes each one of its members both education, without which the human mind cannot develop, and the tools of his trade, without which human activity cannot forge a career for itself. But by whose intervention will society give each one of its members a suitable education and the tools of his trade that he needs if it is not by the intervention of the state?”5
Therefore, I, too, storm the doors of the Legislative Palace, even at the cost of causing a revolution in my country. I corrupt the law and make it accomplish the very act for which it had hitherto punished me, for my benefit and at your expense.
My decree is based on yours.
Article 1: A tax will be levied on all citizens and especially on ironmasters.
Article 2: With the product of this tax, the state will pay an armed body titled the Fraternal Gendarmerie.
Article 3: The fraternal gendarmes will enter stores that sell axes, saws, etc., seize these instruments, and distribute them to the workers who want them.
As you can see, sir, through this clever arrangement I will no longer run the risk nor incur the expense, opprobrium, or scruples of plunder. The state will rob for me as it does for you. There will be two of us playing the game.
It remains to be seen what will become of French society if my second hypothesis comes true, or at least what it has become following the almost complete realization of the first.
I do not want to deal here with the question from the point of view of economics. People believe that when we demand free trade, we are solely driven by a desire to leave labor and capital free to take the most advantageous route. People are mistaken. This is only a secondary consideration for us. What wounds us, what distresses us, and what terrifies us about the protectionist regime is that it is the negation of rights, justice, and property; that it turns the law, which should guarantee property and justice, against them; and that it thus overturns and corrupts the conditions of the existence of society. And it is on this aspect of the question that I call on you to meditate most seriously.
What therefore is the law or at least what ought it to be? What is its rational and moral mission? Is it not to hold accurately the balance between all forms of right, all forms of freedom, and all forms of ownership? Is it not to ensure that justice reigns over all? Is it not to prevent and eliminate oppression and plunder, wherever they are found?
And are you not appalled by the immense, radical, and deplorable innovation that is introduced into the world on the day on which the law is made responsible for carrying out itself the crime whose punishment was its mission? The day on which it turns against freedom and ownership, both in principle and deed?
You deplore the symptoms exhibited by modern society. You bewail the unrest that reigns in institutions and in ideas. But is it not your principles that have corrupted everything, both in institutions and ideas?
What! The law is no longer a refuge for the oppressed but the arm of the oppressor! The law is no longer a shield but a sword! The law no longer holds in its august hands a set of scales but false weights and false keys. And you want society to be properly organized!
It is your principles that have written the following words on the pediment of the Legislative Chamber: “Whoever acquires any influence here may obtain his share of legal plunder here.”
And what has happened? Each class has rushed to the doors of this palace shouting, “For me, too, I want my share of plunder!”
[273]Following the February revolution, when universal suffrage was proclaimed, I hoped for a moment that its great voice would be heard to say: “No more plunder for anyone, justice for all!” And in that lay the true solution of the social problem. This did not happen; protectionist propaganda had for centuries past effected too deep a change in sentiments and ideas.
No, by bursting into the National Assembly, each class came to make the law an instrument of plunder for itself according to the principles you uphold. They demanded progressive taxes, free credit, the right to work, the right to state assistance, guaranteed interest rates, a minimum rate of pay, free education, subsidies to industry, etc., etc.; in short, each wanted to live and develop at other people’s expense.
And under what authority have these claims been levied? Following precedents you set yourselves. What sophisms were invoked? Those that you have been propagating for centuries. Like you, people have been talking of leveling the conditions of work.6 Like you, people have spoken out against anarchical competition. Like you, people have scorned laissez-faire, that is to say, freedom. Like you, people have said that the law should not limit itself to being just but should come to the aid of tottering industries, protect the weak from the strong, ensure profits for individuals at the expense of the community, etc., etc. In short, as M. Charles Dupin said, socialism has come to put the theory of plunder into practice. It has done what you do and what you want teachers of political economy to do, with you and for you.
It is no good your being clever, you people who support restriction; it is no good softening the tone, boasting of your hidden generosity or winning over your opponents through appealing to sentiment; you will not stop logic from being logic.
You will not stop M. Billault from saying to the legislator, “You are giving favors to some people; you must give them to everyone.”
You will not stop M. Crémieux from saying to the legislator, “You are making manufacturers richer; you must make the proletariat richer.”
You will not stop M. Nadeau from saying to the legislator, “You cannot refuse to do for the suffering classes what you do for those that are privileged.”
You will not even stop M. Mimerel, your leader of the chorus, from saying to the legislator, “I demand twenty-five thousand francs worth of subsidies for workers’ retirement funds,” and developing his motion thus:
[274]Is this the first example of this nature that our legislation is offering? Will you establish a system in which the state is able to encourage everything, open science courses at its expense, subsidize fine arts, give grants to theaters, provide higher education, a wide variety of leisure pursuits, enjoyment of the arts, and rest in old age to the classes that are already favored by wealth, and give all this to those who have not experienced deprivation, making those who have nothing pay for their part in this deprivation, refusing them everything, even the essential items of life?. . .
Sirs, our society in France, our behavior, and our laws are so organized that the intervention of the state, as regrettable as you may think it, is found everywhere, and nothing appears stable or long-lasting if the state does not play a part in it. It is the state that makes Sèvres porcelain and the Gobelins tapestries. It is the state that exhibits periodically and at its expense the works of our artists and our manufacturers. It is the state that rewards our stockbreeders and our fishing fleets. All this costs a great deal; this is yet another tax that everyone pays; everyone, let that be understood! And what direct benefit do the people gain from this? What direct benefit do your porcelains, tapestries, and exhibitions give them? We can understand this principle of resisting what you call a state of being carried along, although only yesterday you voted for grants for flax. We can understand this on condition that the weather is considered and above all on condition that impartiality is clearly evident. If it is true that, through all the means I have just indicated, the state has appeared up till now to come to the aid of the comfortably off classes rather than those less favored, it is essential for this appearance to disappear. Will this be by closing the Gobelins factory or forbidding exhibitions? Certainly not but by giving the poor a direct share in this distribution of benefits.”7
In this long list of favors granted to a few at the expense of all, you will note the extreme reticence with which M. Mimerel glosses over customs favors,8 even though they are the most explicit expression of legal plunder. All the speakers who supported or contradicted him were equally reticent. That is very clever! Perhaps they hoped that by giving the poor a direct share in this distribution of benefits, they would preserve the great iniquity from which they benefit but never mention.
[275]They are deluding themselves. Do they believe that once they have achieved partial plunder through the institution of customs, other classes will not want, through other institutions, to achieve universal plunder?
I am fully aware that you always have a sophism at the ready; you say: “The favors that the law grants us are not intended for industrialists, but for industry. The products they enable us to skim off at the expense of consumers are just a deposit in our hands.”9
“They make us rich, it is true; but our wealth, which enables us to spend more and increase the size of our businesses, falls like fertile dew on the working class.”
This is your language, and what I deplore is that your dreadful sophisms have corrupted the public mind enough for them to be quoted today to support all the processes of legal plunder. The suffering classes also say: “Let us take the goods of others through law. We will be more comfortably off; we will buy more wheat, more meat, more cloth, more iron and what we will have received through taxes will return as a beneficial rain on capitalists and landowners.”
However, as I have already said, I am not discussing today the economic consequences of legal plunder. When the supporters of protectionism are ready, they will find me ready to examine the ricochet sophism10,11 which, besides, can be quoted for all sorts of theft and fraud.
Let us limit ourselves to the political and moral effects of trade that is deprived of freedom by the law.
I say this, the time has come to establish finally what the law is and what it ought to be.
If you make the law the safeguard of freedom and property for all citizens, if it is limited to the organization of the individual right of legitimate defense, you will found on justice a government that is rational, uncomplicated, [276] economical, understood by all, loved by all, useful to all, supported by all, given responsibility that is perfectly defined, highly restricted, and endowed with unshakeable solidity.
If, on the other hand, you make the law an instrument of plunder in the interest of particular individuals and classes, each one at first would want to make the law and each would then want to make it to his advantage. There would be a throng at the gates of the Legislative Palace, a bitter battle within it, anarchy in people’s minds, the wreck of all morality, violence in the institutions representing various interests, fierce electoral battles, accusations, recriminations, jealousy, inextinguishable hatred, public enforcement in the service of unjust greed instead of containment of greed, the concept of right and wrong obliterated from people’s minds just as the concept of justice and injustice is obliterated from all consciences, a government that is responsible for each person’s existence and that is bowed under the weight of such responsibility, political convulsions, and fruitless revolutions and ruins on which all forms of socialism and communism will be tried out. These are the scourges that corruption of the law will not fail to unleash.
Consequently, oh you supporters of prohibition, these are the scourges to which you have opened the door by using the law to stifle free trade, that is to say, to stifle the right to property. Do not speak out against socialism; you are promoting it. Do not speak out against communism; you are promoting it. And now you are asking us economists to provide you with a theory that proves you are right and justifies you! Heavens above! Do it yourselves.12
(Paillottet’s note) On 27 April 1850, following a very curious discussion, printed in Le Moniteur, the General Council on Agriculture, Industry, and Trade issued the following wish:
That political economy should be taught by teachers paid by the government, not only from the theoretical point of view of free trade but also and above all from the point of view of events and the legislation that governs French industry.
Bastiat was replying to this wish in Plunder and Law, first published in the issue of Le Journal des économistes, dated 15 May 1850.
(Paillottet’s note) See the theory of value in chapter 5 of Economic Harmonies. (OC, vol. 6, chap. 5, p. 140, “De la valeur.”)
(Paillottet’s note) The author had expressed this opinion three years previously in the issue of the journal Le Libre échange dated 28 November 1847. In reply to Le Moniteur industriel, he had said:
We would ask the reader to forgive us if we become casuists for a moment. Our opponents oblige us to put on our doctor’s mortarboard. This is apposite since it oft en pleases them to refer to us as doctors.
An illegal act is always immoral for the sole reason that it disobeys the law, but it does not follow that it is immoral in itself. When a mason (we apologize to our colleague for drawing his attention to such a small point) exchanges his earnings from a hard day’s work for a length of Belgian cloth, his action is not intrinsically immoral. It is not the action that is immoral in itself; it is the violation of the law. And the proof of this is that, should the law be changed, no one would find anything wrong with this exchange. It is not immoral in Switzerland. But what is immoral in itself is immoral everywhere and at all times. Will Le Moniteur industriel claim that the morality of acts depends on their time and place?
If some acts can be illegal without being immoral, others are immoral without being illegal. When our colleague changes our words by trying to find a meaning in them that is not there, when certain people, after privately declaring that they are in favor of freedom, write and vote against it, when a master makes his slave work by beating him, it is possible that the Code is not violated, but the consciences of all honest men are revolted. It is at the head of this category of actions that we place these restrictions. A Frenchman says to another Frenchman who is his equal or ought to be, “I forbid you to buy Belgian cloth because I want you to be obliged to come to my shop. That may upset you but it suits my purpose. You will lose four but I will gain two and that is enough.” We would say that this action is immoral. If someone makes so bold as to bring it about himself forcibly or by means of the law, this does not change the character of the act. It is immoral by nature, in essence; it would have been so ten thousand years ago and would be in the Antipodes or on the moon, since whatever Le Moniteur industriel says, the law, which can do a great deal, cannot, however, turn something that is bad into good.
We are not even afraid to say that the contribution of the law increases the immorality of the act. If it were not involved, if for example the manufacturer had his restrictive wishes executed by those in his pay, the immorality would be blindingly obvious to Le Moniteur industriel itself. What then! Because this manufacturer was able to spare himself this effort, because he was able to appropriate the services of public compulsion and saddle those oppressed with part of the costs of repression, what was immoral has become meritorious!
It is true that the people thus trampled on may imagine that it is for their good and that oppression results from an error common to both oppressors and those oppressed. This is enough to justify the intention and remove from the act the odiousness that it would otherwise have. Where this happens, the majority approves of the law. We have to accept this and would never say otherwise. However, nothing will stop us from telling the majority that in our opinion, it is mistaken.
(Paillottet’s note) See “Protectionism and Communism” in vol. 4. (OC, vol. 4, p. 504, “Protectionisme et communisme.”) [See also “Protectionism and Communism,” p. 235 in this volume.]
(Bastiat’s note) Organization of Work, pages 17 and 24 of the introduction [Blanc, L’Organisation du travail].
See OC, vol. 4, p. 27, “Égaliser les conditions de production” (Sophism no. 4).
(Bastiat’s note) The issue of Le Moniteur dated 28 April 1850.
As indicated in “Protectionism and Communism,” p. 252, note 11, in this volume customs gave subsidies to some exporters in order to encourage—or maintain in existence—a specific industrial sector.
(Bastiat’s note) The issue of Le Moniteur dated 28 April. See the opinion of M. Devinck.
(Paillottet’s note) This is implicitly refuted in chapter 12 of the first series and chapters 4 and 12 of the second series of “Sophisms.” (OC, vol. 4, chap. 12, p. 74, “La Protection élève-t-elle le taux des salaires?”; chap. 4, p. 160, “Conseil inférieur du travail,” and chap. 12, p. 213, “Le Sel, la poste, la douane.”)
Ricochet sophism is best translated as “the sophism of indirect consequences.” The allusion is to the sophists, who pretend that there are very beneficial, indirect consequences to some duties for which they are asking.
(Paillottet’s note) In this response to the protectionists, which he addressed to them on his departure for the Landes, the author, obliged to give his views rapidly on the rational domain of legislation, felt the need to set them out in more detail. He did this a few days later during a short stay in Mugron when he wrote The Law, a pamphlet included in this volume. (OC, vol. 4, p. 342, “La Loi.”) [See also “The Law,” p. 107 in this volume.]
T.248 "Abundance" (summer 1850, DEP)↩
SourceT.248 (1850.??) "Abundance" (Abondance). Published as "Abondance", Dictionnaire de l'économie politique (Paris: Guillaumin, 1852), vol. 1, pp. 2-4. [OC5.7, pp. 393-401]. Paillottet states that it was written sometime in 1850, possibly in the summer or early fall, before Bastiat's departure for Italy in Sept.1850.
Editor's IntroductionBastiat was held in such high regard by the Parisian political economists that soon after his arrival in Paris in May 1845 he was approached (presumably by the publisher Guillaumin) to assume the position of editor of their main journal, the Journal des Économistes , to replace Hippolyte Dussard (1798-1876) who was editor between 1843 and 1845. Bastiat agonized over the decision 2104 but turned it down because of the low pay and because he had his heart set on founding a French Free Trade Association modelled on Richard Cobden's Anti-Corn Law League. Joseph Garnier was eventually offered the position which he accepted and held for 10 years.
Another important and influential role Bastiat might have been expected to play was on the editorial committee of Guillaumin's massive project to publish a compendium of political economy, the Dictionnaire de l'Économie Politique (Dictionary of Political Economy). After the upheavals of 1848-49 Guillaumin decided in early 1849 to use his considerable editorial and organizational skills to begin planning what he thought would be an unanswerable riposte to the challenge posed by socialism. With funding organized by Guillaumin and with Charles Coquelin as the main editor, the aim was to assemble a summary of the state of knowledge of liberal political economy with articles written by leading economists on thematic topics, biographies of key historical figures, bibliographies of the most important books, and economic and political statistics. The result was a two volume, nearly 2,000 page, double-columned encyclopedia of political economy which appeared in 1852-53. 2105
Bastiat had been a major figure in Guillaumin's earlier anti-socialist campaign in 1848 with the flood of anti-socialist pamphlets which the economists produced. Bastiat wrote about 12 which were advertised as Bastiat's "Petit pamphlets" (Little Pamphlets). 2106 This first anti-socialist campaign was designed to counter "socialism from below" (as Molinari put it) 2107 and this second assault, from the ramparts of the DEP, was designed to counter "socialism from above," i.e. the socialist ideas held by French manufacturers, President Louis Napoléon, and the bureaucracies which controlled the French economy. Guillaumin appointed Charles Coquelin as the senior editor and he was a good choice as he had considerable organisational skills and a near photographic memory. Around Coquelin were a handful of the most important economists who wrote the key articles, such as Molinari (who wrote 29 including on such key topics as "Céréales" (Grain), "Liberté du commerce, liberté des échanges" (Free Trade), "Paix, Guerre" (Peace and War), "Tarifs de douane" (Tariffs), "Travail" (Labour), "Union douanière" (Customs Union), "Usure" (Usury)); Joseph Garnier who wrote 28; Horace Say 29; Ambroise Clément 22; and Courcelle-Seneuil 21. Coquelin wrote a massive 70 articles before he died suddenly in August 1852 from a heart attack while still working on volume 2.
Given Bastiat's status among the economists he would have been expected to write as many as the others, perhaps even the flagship article on "Political Economy," 2108 but his rapidly deteriorating health in late 1848 and early 1849 meant that he was unable to play much of a role. This article on "Abundance" is the only one he was able to write for the DEP and it was probably completed sometime during the summer of 1850 when he was also racing to finish "The Law" (June 1850) and "What is Seen and What is Not Seen" (July 1850) and before he left for Italy in September under his doctor's orders. Out of respect for his contributions to French political economy, the editor's of the DEP used his pamphlet on "The Law" as the entry for "The Law" in the DEP and Charles Coquelin used large extracts from his essay on "The State" as the entry for "The State" which appeared under his name, i.e. "Ch. C." 2109 So even though he had died at the end of 1850, Bastiat's spirit very much lived on in the greatest monument to mid-19th century political economy, the formidable and authoritative DEP.
Some important concepts Bastiat dealt with in this article include the following:
- the idea of "ceteris paribus" (all other things being equal) which he introduced into French political economic thought (see the glossary entry on "Cereris paribus.")
- the idea that people have a hierarchy of needs which they attempt to satisfy according to how "pressing" or urgent they are, beginning with the "grosser" needs which sustain life, then other physical needs such as housing and clothing, and finally higher and more "spiritual needs" such as education and aesthetic interests.
In terms of its powers of exposition, political economy is a grand and noble science. It scrutinizes the mainspring of the social mechanism 2110 and the functions of all the various organs of that marvelous living body known as human society. It studies the general laws according to which the human race is stimulated to increase in numbers, wealth, knowledge, and morality. However, by recognizing the existence of a social free will like we do the existence of an individual free will, 2111 political economy makes clear how providential laws may be misinterpreted or violated, what terrible responsibility arises from these disastrous experiments and how civilization may, as a result, be halted, set back, buried and stifled for lengthy periods.
Who would believe it? This science, so wide-ranging and high-minded in its exposition of the world, is almost reduced, when it comes to controversy and its engagement in polemic, to the thankless task of proving the following proposition, one that is so clear it almost appears puerile: "Abundance is better than scarcity."
The fact is that if the matter is examined closely, it is clear that the majority of objections and doubts raised against political economy do imply the principle that "Scarcity is better than abundance."
This is what these very popular sayings express:
"There is over-production."
"We are dying from a surfeit."
"All the markets are choked and all career opportunities blocked."
"The ability to consume cannot keep up with the ability to produce."
Take someone who is against machines. 2112 He deplores the fact that the miracles of human genius are extending his power to produce indefinitely. What is he afraid of? Abundance.
Take the protectionist. He bemoans the bounty of nature in other climes. He is afraid that France will have some share in this by way of trade and does not want the country to be free because, if she were, she would be sure to incur the calamities of invasion and flooding . 2113 What is he afraid of? Abundance.
Take the statesman. He is terrified by all the ways of satisfying needs which production is building up in the country and, since he thinks he can glimpse in the far-distant future the ghost of a revolutionary increase in well-being and a rebellious increase in equality, he imagines a world of heavy taxes, huge armies, the wasting of products on a grand scale, lavish lifestyles, and a powerful artificial aristocracy whose task, by means of their luxurious and ostentatious lives, is to solve the problem of the subversive excess of productivity made possible by human industry. What is he afraid of? Abundance.
Finally, consider the logician who, disdaining roundabout routes, goes straight to the point and advises that Paris should be burnt periodically in order to offer labor the opportunity and benefit of rebuilding it. 2114 What is he afraid of? Abundance.
How can such ideas have grown up and, it must be said, sometimes prevail, not, doubtless, in people's personal lives but in their theories and the laws they pass? For if there is one statement that appears to prove itself intrinsically, it is definitely this: "When it is a question of useful things, it is better to have them than not." And while it cannot be denied that abundance is a calamity when it relates to things that are harmful, destructive or unwelcome, such as locusts, caterpillars, vermin, vices, or noxious and polluting fumes, it cannot be any less true that it is a blessing when it concerns things that fulfill our needs and give satisfaction, objects that people want and pursue with the sweat of their brow, that they are ready to pay for with work or trade, and that are valuable, such as food, clothing, housing, works of art, the means of transport, communication, learning or entertainment, in short, everything that political economy is concerned with.
If a comparison needs to be made between civilization as it occurs in two nations or in two centuries, are not statistics employed to ascertain which of the two, in proportion to population, offers the more opportunities to earn a living, the more agricultural, industrial, or artistic products, the more roads, canals, libraries, and museums? Isn't the answer to be found, if I may express it in this way, in a comparison of consumption, that is to say, by differences in abundance ?
Perhaps it might be said that it is not enough for products to be abundant ; they also need to be distributed justly.. Nothing is truer than this. But let us not confuse matters. When we support abundance while our opponents decry it, both sides understand these words: ceteris paribus , all other things being equal, 2115 with equity in distribution being assumed to be the same.
Furthermore, it should be noted that abundance is of itself a reason for good distribution. The more abundant a thing is the less value it has, and the less value it has the more it is within the reach of all and the more people are equal with respect to it. We are all equal with regard to air because it is inexhaustibly abundant in relation to our needs. We are slightly less equal with regard to water because, since it is less abundant, it starts to incur costs. We are still less equal with regard to wheat, perishable fruit, or freshly picked produce; with regard to things that are in short supply , not having equal access to goods is always inversely proportional to their ABUNDANCE.
In reply to the sentimental scruples of our age, we would add that abundance is not just a property of a material good. Needs develop within the human race in a certain order; they are not all equally pressing and it may even be noted that their order of priority is not their order of worthiness. The grosser needs clamor to be met first, because life depends on their satisfaction and, whatever the speechmakers say, before people live with dignity they have to live. Primo vivere, deinde philosophare. 2116
From this it follows that it is the abundance of the things most apt to meet basic needs that enables the human race to make its enjoyments increasingly spiritual and rise to the realms of Truth and Beauty. It can concentrate on perfecting style, cultivating art, and delving into thought only when time and strength, as a result of progress, cease to be taken up with the requirements of physical life. Abundance, the fruit of long periods of work and patient thrift, cannot be instantaneously universal right from the very beginnings of society. It cannot be achieved at the same time over the entire range of possible production. It follows gradually, moving from the material to the spiritual levels. How unfortunate are those nations which, when external forces such as those of government endeavor to invert this order, substitute for basic but essential needs ones that are higher but premature, thus changing the natural direction of work and upsetting the balance of needs and satisfaction that guarantees social stability.
Besides, if abundance were a calamity, that would be as unfortunate as it is strange, for however simple the remedy (what can be easier than refraining from producing and destroying production?), individual opinion would never be persuaded to follow it. It is no use making speeches against abundance, over-abundance, plethora, or glut; it is no use propounding the theory of scarcity, supporting it with laws, forbidding machines, hampering, hindering and opposing trade, for all this will stop no one, not even the leaders of the chorus in favor of these harassments, from working to achieve abundance. Right around the world, you will not meet a single person whose acts do not speak out against these vain theories. You will not meet one who does not seek to make the most of his abilities, to organize them, economize on them, and improve the results they yield by making use of natural forces. You will not find one, even among those who speak out loudest against the freedom to trade, 2117 who does not act on this basis (while wishing to forbid it to others): namely, to sell at the highest possible price and buy at the lowest, with the result that the theory of scarcity that holds sway in books, journals, conversations, or parliaments and through this, in the laws, is refuted and countered by the way all the people who make up the human race, without exception, act. This is clearly the starkest rebuttal that can possibly be imagined.
But, faced with the problem of whether abundance is better than scarcity, why is it that all those who have virtually come down in favor of abundance through their actions, their way of working and trading, make themselves theoretical defenders of scarcity to the point where they mold public opinion in this direction and generate floods of restrictive and constraining laws?
This is what we still have to explain.
Basically, what we are all aspiring to is that each of our efforts should achieve the greatest possible level of well-being. If we were not social beings, if we lived in isolation, we would know of only one rule to achieve this target: to work more and more effectively , a rule that implies steadily increasing abundance.
However, because of trade and the division of labor which follows it, it is not in the first instance to ourselves but to others that we devote our work, effort, products and services. This being so, without losing sight of the rule, produce more , we have another that is more constantly present in our minds, namely, produce more value . For it is on this that the quantity of services that we need to receive from others in return for ours depends.
Now, creating more products and creating more value are not the same thing. It is very clear that if, by force or by fraud, we managed to make the particular service or item associated with our own occupation extremely scarce, we would become richer without either increasing or improving our work. For example, if a shoemaker was able deliberately to make all the shoes in the world disappear in a puff of smoke except for those in his shop or to paralyze anyone who knows how to use a shoemaker's knife or a shoehorn, he would become another Croesus; 2118 his lot would improve, not in line with the general lot of the human race but in inverse relationship to the general trend.
Here then is the complete and horrible secret behind the theory of scarcity, as revealed in restrictions, monopoly, and privileges. It does nothing more than translate and shroud in scientific language the selfish feeling that we all have deep in our hearts: competitors get in our way.
When we bring a product to the market, two circumstances are equally likely to increase its value. The first is that it will encounter a very great abundance of things for which it can be traded, namely, everything, and the other is that it will be met with a very great scarcity of all the things that are like it.
Well, neither by our own actions nor by means of the intervention of the law and the power of the state can we influence the first of these. Universal abundance unfortunately cannot be decreed; other factors are required for this, and legislators, customs officers and restrictions are powerless in the matter.
If, therefore, we wish to increase the value of the product artificially, we have to act on the other element that constitutes its value. In this case, the individual will is not as powerless. Using ad hoc legislation, arbitrary action, bayonets, chains, restrictions, punishment, and persecution, it is possible to chase away competitors and create the scarcity and artificial increase in value that is the objective of our actions.
Things being the way they are, it is easy to understand what can and has to happen in an age of ignorance, barbarity, and unfettered greed.
Each individual petitions the legislature, this intermediary of the power of the state, to create an artificial scarcity of the things that he produces, using all the means in its power. 2119 Farmers ask for wheat to be made scarce, breeders ask the same for cattle, ironmasters likewise for iron, colonists for sugar, weavers for woolen cloth, etc. etc. Each one gives the same reasons; these end up creating a body of doctrine which one could well call "the theory of scarcity;" and the power of the state makes this theory triumph through the use of iron and fire.
However, leaving aside the masses thus subjected to a regime of universal privation, it is easy to see into what cruel hoax its architects are hurling themselves and what terrible punishment awaits their unscrupulous rapacity.
We have seen that the value of each specific product is made up of two elements: 1. the scarcity of similar products and 2. the abundance of everything that does not resemble it.
Well, please note this: for the very reason that the legislative authority, a slave of individual selfishness, works to achieve the first of these two elements of value, it necessarily destroys the second, since they are one and the same thing. One after the other, the legislature has satisfied the wishes of farmers, breeders, ironmasters, manufacturers, and colonists, by producing an artificial scarcity of wheat, meat, iron, woolen cloth, sugar, etc., but is this anything other than destroying general abundance which is the second condition governing the value of each particular product? Thus, after having subjected the community to the real deprivation inherent in shortage, with the aim of enhancing the value of products, it so happens that people have not even succeeded in achieving this shadow or embracing this phantom of raising this nominal value, precisely because what the scarcity of the particular product does to support it is countered by the scarcity of other products. Is it therefore so difficult to understand that if the shoemaker we mentioned a moment ago succeeded in deliberately destroying all the shoes in the world except for the ones he made, he would be no further advanced, even from the puerile point of view of nominal value, if at the same time every object for which shoes were traded became scarcer to the same extent? Only one thing would have changed: everyone, including our shoemaker, would be worse shod, clothed, fed, and housed, although products would have retained the same relative value with regard to each other.
And this has to be so. Where would society be if injustice, oppression, selfishness, and greed brought no punishment in their wake? Fortunately, it is not possible for a few people, without harming themselves, to use the power of the state and the apparatus of government 2120 in order to profit from scarcity, and thus hold back the universal impetus of the human race towards abundance.
2104 See his letter to Félix Coudroy, L.40. Letter to Félix Coudroy, 16 June 1845, in CW1, p. 65.
2105 Dictionnaire de l'Économie Politique, eds. Charles Coquelin et Guillaumin (1852-1853), 2 vols. See the glossary on "Dictionnaire de l'économie politique."
2106 See the glossary entry on "Bastiat's Anti-Socialist Pamphlets."
2107 Molinari made the distinction between the threat of "socialisme d'en haut" (socialism from above) and "socialisme d'en bas" (socialism from below) with respect to the events of 1848-52 in his obituary of Joseph Garnier in 1881, JDE, Sér. 4, T. 16, No. 46, October 1881, pp. 5-13. Reference on p. 9.
2108 It was in fact written by the editor Charles Coquelin, "Économie politique", DEP, vol. 1, pp. 643-70.
2109 Bastiat's DEP entries: "Abondance," DEP, vol. 1, pp. 2-4; "La Loi" (The Law), DEP, vol. 1, pp. 733-36 (signed by Charles Coquelin, the editor); and "L'État" (The State)," DEP, vol. 2, pp. 93-100.
2110 See the glossary entry on "The Social Mechanism."
2111 Bastiat uses the phrases "un libre arbitre social" (social or societal free will) and "un libre arbitre personnel" (individual free will).
2112 At the same this article was written in the summer of 1850 Bastiat also wrote WSWNS which has a chapter on "Machines," CW3, pp. 432-36.
2113 In ES1 22 "Metaphors" Bastiat discusses the use of martial metaphors like "invasion" and "tribute", or physical disasters like "flood" which were commonly used by critics of the free market and free trade. See CW3, pp. 100-03.
2114 In ES3 1 "Recipes for Protectionism" Bastiat criticises the argument that a major fire in Paris would create work in rebuilding which would be of benefit to the people. See, CW3 pp. 258. The advocate of protectionism, Saint-Chamans, argued in Nouvel essai sur la richesse des nations (1824) and again in Traité d'économie politique (1852) that the Great Fire of London in 1666 (so not Paris) destroyed a huge amount of the capital stock which was quickly replaced and was thus a net gain for the nation of some one million pounds stirling (or 25 million francs) because of the need to rebuild the city. See M. le vicomte de Saint-Chamans, Traité d'économie politique suivi d'un apercu sur les finances de la France (Paris: Dentu et Ledoyen, 1852), vol. 1.
2115 See the glossary entry "Ceteris paribus."
2116 "Primo vivere, deinde philosophare" [in original] also written as "Primo vivere, deinde philosophari". Variously attributed to Aristotle or Thomas Hobbes. "First, one must live, then one can philosophise".
2117 Bastiat does not use the normal expression for "freedom of trade" (la liberté des échanges) here. He uses a more abstract phrase "la liberté des transactions" (the freedom to engage in transactions) instead. This suggests that more than the exchange of physical goods is involved, but also non-material goods such as services.
2118 Croesus (595-547 BC) was King of Lydia until he was defeated and captured by the Persians. His name was synonymous with great wealth. See Glossary entry on "Croesus."
2119 This was the intention of the petitioners in one of Bastiat's best known Economic Sophisms, ES1 7 "Petition by the Manufacturers of Candles," CW3, pp. 49-53.
2120 See the glossary entry on "The Apparatus of Exchange."
T.258 (1850.06) The Law [revised translation (February, 2018)]↩
T.258 (1850.06) The Law (La Loi). Bastiat wrote this while in Mugron in June 1850; also published as a pamphlet, La Loi par M. Frédéric Bastiat. Membre correspondant de l'Institut. Représentant du peuple à l'Assemblée Nationale, (The Law) (Paris: Guillaumin, 1850). 80 pp. [OC4, pp. 342-93] [CW2.9, pp. 107-46]
This translation originally appeared in volume 2 of Liberty Fund's Collected Works of Frédéric Bastiat (2012) translated by Dennis O'Keeffe and edited by Jacques de Guenin, pp. 107-46. </titles/2450#lf1573-02_label_197>.
Changes and AdditionsIt has been extensively revised by David M. Hart to make it more consistent with our editorial practices as established in vols. 3, 4, and 5, namely:
- there are additional notes to explain the political and intellectual context in which he was writing: especially the names of authors and politicians
- all quotations of other authors used by Bastiat have been located and referenced
- there are cross-references to other works by Bastiat where he makes similar arguments
- key words and concepts which are part of his economic and political theory have been flagged
- the translation has been compared to the two earlier translations (that by Wells in 1853 and by FEE in 1964) and the differences noted
- the translation has been revised to correct some errors
- in this draft, words we have added to the text to make it more readable to an English reader are (in brackets). These will be removed later.
- we have replaced all the capitalised nouns, such as "la Force" and "la Propriété", with lower case
- we have tried to preserve Bastiat's breaks between different sections of the text
The law perverted?1 The law-and, in its train, all the coercive powers2 of the nation - the law, I repeat, not only turned aside from its purpose but used to pursue a purpose diametrically opposed to it! The law turned into a tool of all forms of greed instead of being a check on them! The law itself perpetrating the injustice it was intended to punish! This is certainly a serious matter if it is true, and one to which I must be allowed to draw the attention of my fellow citizens.
We hold from God3 the gift that encompasses them all: Life — physical, intellectual, and moral life.
However, life is not self-supporting. He who has given it to us4 has left us the job of looking after it, developing it, and perfecting it.
To do this, He has provided us with a set of exceptional faculties and immersed us in a milieu of diverse elements. It is through the application of our faculties to these elements that the phenomena of assimilation5 and appropriation take place, through which life proceeds along the path allocated to it.
Existence, one's faculties, and assimilation – in other words, personhood6, freedom, and property – this is man in a nutshell.
It may be said that these three things,7 leaving aside any demagogical hair-splitting, are prior to and superior to all human legislation.
It is not because men have enacted laws that personhood, freedom, and property exist. On the contrary, it is because personhood, freedom, and property are already in existence that men enact laws.
What is the law, then? As I have said elsewhere, it is the collective organization of the individual right of legitimate (self) defense.
Each of us certainly holds from nature, from God,8 the right to defend our person, our freedom, and our property, since these are the three elements that constitute or preserve life, elements that are mutually complementary and which cannot be understood independently of one another. For what are our faculties if not an extension of our person, and what is property if not an extension of our faculties?9
If each person has the right to defend, even by force, his person, his freedom, and his property, several people have the right to get together, reach an agreement, and organize a common (use of coercive) force in order to provide for this defense in a regular manner.
The collective right therefore roots its principle, its raison d'être, and its legitimacy in the individual's right, and the common force cannot rationally have any other aim or purpose than did the (use of) force by isolated individuals for which it is a substitute.
Thus, since the (use of) force by an individual cannot legitimately be used against the person, freedom, or property of another individual, by the same argument, the common force cannot legitimately be used to destroy the person, freedom, or property of either individuals or classes.
This is because this perversion of the (use of) force would in either case be a contradiction of our premises. Who would dare to say that we were given the (use of) force not to defend our rights, but to destroy the equal rights of our fellows? And if this is not true for each individual use of force acting in isolation, how can it be true for this collective use of force, which is nothing other than the organized combination of the (use of) force by isolated individuals?
Therefore, if there is one thing that is clear, it is this: the law is the organization of the natural right of legitimate (self) defense. It is the substitution of the collective use of force for that of individuals, in order to enable (people) to act within the sphere where they have the right to act, in order to protect their persons, liberties, and properties, in order to preserve each person's rights, and in order to ensure the reign of justice over us all.
And if there were a nation constituted on this basis, I consider that order would prevail there both in deeds as well as in thoughts. I consider that this nation would have the simplest, the most economical, the least burdensome, the least felt, the least harmful, the most just and hence, the most stable government imaginable, whatever its political form might be.
For, under such a regime, each person would fully understand that he could enjoy the full richness that his existence offered, as well as being fully responsible for it. Provided that each person was respected, work was free, and the fruits of work protected against any unjust infringement, no one would have any cause to take issue with the state. When we were successful, we would not, it is true, have to thank (the state) for our success; however, should we be unsuccessful, we would no more blame this setback on the state than our farmers would blame it for hail and frost. Its only effect on us would be the inestimable benefit of security.
We can also argue that, thanks to the non-intervention of the state in private affairs, needs and the satisfaction of those needs10 would develop in their natural order. We would not see poor families seeking literary education before they had bread. We would not see towns growing in population at the expense of the countryside or the countryside at the expense of towns. We would not see those large displacements of capital, labor, or populations triggered by legislation,11 displacements that render the very sources of (our) existence so uncertain and precarious and which, to a very great degree, increase the demand for the government to be responsible (for it).
Unfortunately, the law is far from being limited to its proper role. Even when it has gone beyond (its proper role) it is not only in some inconsequential and debatable areas. It has done worse: it has acted contrary to its own end, it has destroyed its own purpose, it has been used to crush the reign of justice which it should have put into place, and to wipe out the boundaries between these rights that its function was to uphold. It has placed the public coercive force at the disposal of those who wish to exploit the person, freedom, or the property of others without risk (to themselves) and without any scruples, it has converted plunder into (a) right in order to protect it and (converted) legitimate (self) defense into (a) crime in order to punish it.
How has this perversion of the law come about? What have its consequences been?
The law has become perverted under the influence of two very different causes: unthinking egoism and false philanthropy.12
Let us take the first of these.
Self-preservation and development is an aspiration common to all men to the extent that if each person enjoyed the free exercise of his faculties and the free disposal of his products, social progress would be constant, uninterrupted, and unfailing.
However, there is another tendency in mankind that is just as common. That is to live and grow, when they can, at the expense of others. This is not a rash accusation from someone with a bitter and pessimistic turn of mind. History gives examples of this through the constant wars, migrations of populations, oppression by priests,13 the universality of slavery, industrial fraud, and monopolies with which its annals are filled.14
This disastrous tendency arises from the very constitution of man, in the primitive, universal, and overwhelming sentiment that drives him toward well-being and makes him flee suffering.
Man can live and enjoy life only by a perpetual (process) of the assimilation and appropriation (of the things around him), that is to say, by a constant application of his faculties to (these) things, or by work. From this comes property.
However, in practice, he can live and enjoy life by assimilating or appropriating to himself the product of the faculties of his fellow men. From this comes plunder.
Well, since work is in itself a source of pain and since man by his nature is inclined to avoid pain, it follows, and history is there to prove it, that wherever plunder is less onerous than work, it triumphs over it. This happens without religion or morality in this instance being able to stop it.15
When, then, will plunder cease? When it becomes more onerous or more dangerous than work.
It is very clear that the law ought to have as its goal the use of the public coercive force as a powerful obstacle to this disastrous tendency, and that it has to be on the side of property against plunder.
But the law is, in the majority of cases, made by one man or a class of men. And since the law has no existence without the sanction or support of an overwhelming (coercive) force, the very probable result is that this force is finally placed in the hands of those who make the laws.16
This inevitable phenomenon, combined with the disastrous tendency we have noted in men's hearts, explains the almost universal perversion of the law. It can be seen how, instead of being a check on injustice, the law becomes a tool and the most invincible tool of injustice. One can see that, depending on the power of the legislator who profits from it, the law destroys to various degrees the rest of mankind's personhood by slavery, freedom by oppression, and property by plunder.
It is in the nature of men to react against the injustice of which they are the victims. Therefore when plunder is organized by law for the profit of the classes that make it, all the plundered classes attempt to have a say in the making of the laws, by either peaceful or revolutionary means. Depending on the level of enlightenment which they have attained, these classes may set themselves two very different aims when they seek their political rights in this way; they may either wish to stop legal plunder17 or they may aspire to take part in it.
Woe and misery three times over to any nation in which this last thought dominates the masses when they in turn seize control of the legislative power!
Up to now, legal plunder has been exercised by the minority over the majority as can be seen in those nations in which the right to pass laws is concentrated in just a few hands.18 However, it has now become universal and equilibrium is being sought in universal plunder.19 Instead of the injustice existing in society being rooted out, it has become generalized. As soon as the (politically) disinherited classes recover their political rights, their first thought is not to rid themselves of plunder (that would suppose that they had a (level of) enlightenment that they cannot have) but to organize a system of reprisals against the other classes and (ultimately) to their own detriment, as though it were necessary for a cruel retribution to strike them all, some for their injustice and others for their ignorance,20 before the reign of justice (can be) established.
No greater change or misfortune could therefore be introduced into society than this: to have a law that has been converted into an instrument of plunder.
What are the consequences of such (a) disturbance?21 Volumes would be needed to describe them all.22 Let us content ourselves with pointing out the most striking.
The first is to erase from people's consciences the notion of what is just and what is unjust.
No society can exist if respect for the law does not prevail to some degree, but the surest means of ensuring that laws are respected is for them to be worthy of respect. When law and morality contradict one another, citizens find themselves in the cruel quandary of either losing their notion of morality or losing respect for the law, two misfortunes that are as great as each other and between which it is difficult to choose.
It is so deeply ingrained in the nature of law to ensure that justice reigns, that law and justice are inseparable in the eyes of the masses. We all have a strong inclination to consider what is legal to (also) be legitimate, to the extent that many people mistakenly consider all justice stems from the law. It is therefore enough for the law to order and sanction plunder for plunder to appear just and sacred in the consciences of many. Slavery, (trade) restrictions, and monopoly find their defenders not only in those who benefit from them but even in those who suffer from them.23 Try to sow a few seeds of doubt about the morality of these institutions and you will be told "You are a dangerous innovator, a utopian,24 a theorist, and a despiser of laws; you are undermining the base on which society is built." Do you teach courses on moral theory or political economy? Official bodies will be found to express the following resolution to the government:
"That such subjects should be taught in the future no longer from the sole point of view of free trade (of freedom, property and justice), as it has been done so far, but also and above all from the point of view of the facts and the legislation (contrary to freedom, property, and justice) which govern economic life in France.
That in the chairs in public universities whose salaries are paid for by the Treasury,25 the professor should rigorously refrain from undermining in the slightest the respect due to the laws in force, etc."26
So that if there is a law that sanctions slavery or monopoly, oppression, or plunder in any form, it cannot even be mentioned, since how can it be discussed without this undermining the respect it inspires? What is more, it will be mandatory to teach moral theory and political economy from the point of view of this law, that is to say on the premise that it is just merely because it is the law.
Another effect of this deplorable perversion of the law is that it gives an exaggerated importance to political passions and conflicts and to politics itself in general.
I could prove this proposition in a thousand ways. I will limit myself to comparing it, as an example, with a subject that has recently been in minds of all, that is universal suffrage.27
Whatever the disciples of the Rousseau school think, those who say that they are very advanced and whom I believe to be backward by twenty centuries, universal suffrage (taking this word in its strictest sense) is not one of those sacred dogmas the examination or even doubting of which are crimes.
Major objections may be made to it.
First of all, the word universal hides a crude sophism.28 There are in France thirty-six million inhabitants. In order for the right of suffrage to be universal it would have to be recognized for thirty-six million voters. The most generous account recognizes only nine million. Three out of four people are therefore excluded, and what is more, they are excluded by the fourth. On what basis is this exclusion founded? On the principle of incapacity. Universal suffrage means the universal suffrage of those (who are) capable. There remains this practical question: who is capable? Are age, sex, and criminal record the only signs from which we can recognize incapacity?
If we look closely, we quickly see the reason the right to vote rests on the presumption of capacity, since the widest system differs in this respect from the most restricted system only by the appreciation of the signs from which this capacity can be recognized, which does not constitute a difference of principle but of degree.
This reason is that the voter does not demand (things) for himself but for everybody.
If, as republicans of a Greek and Roman bent claim, the right to vote was granted to us with life, it would be unjust for adults to prevent women and children from voting. Why should they be prevented from doing so? Because they are deemed to be incapable. And why is incapacity a reason for exclusion? Because the voter is not alone when given responsibility for his vote; because each vote commits and affects the entire community; because the community has the perfect right to demand a few guarantees with regard to the acts on which their well-being and existence depend.
I know what a possible answer might be. I also know what a possible reply to it might be. This is not the place to settle a controversy of this nature. What I want to draw attention to is that this controversy (as well as most political questions), one that so agitates whole nations, inflaming them and causing such distress, would lose almost all its importance if the law had always been what it ought to have been.
In fact, if the law limited itself to ensuring that all persons, freedoms, and properties were respected, if it were merely the organization of the individual right of legitimate (self) defense, the obstacle, check, and punishment that opposed all forms of oppression and plunder, would you believe that we would argue much, as citizens, as to whether suffrage was more or less universal? Do you believe that it would call into question the greatest of our benefits, public peace? Do you believe that the excluded classes would not wait patiently for their turn? Do you believe that the classes allowed (to vote) would guard their privilege jealously? And is it not clear that, since self-interest is identical and common (to all), some would take action without very much inconvenience on behalf of the others?
But if this fatal principle were to be introduced, if, on the pretext of (providing) organization, regulation, protection, and support, the law were able to take from some to give to others, to take some of the wealth acquired by all classes and to increase (the wealth) of one class, which at one time might be the farmers, or at another time manufacturers, traders, ship owners, artists, or actors, then, to be sure, in this case, there is no class that will not claim with reason that it too should get control of the law, that will not vehemently demand the right to vote and the right to stand for election, and that will not overthrow society rather than not obtain it. Beggars and vagabonds themselves will prove to you that they have incontestable rights to it. They will say to you:
"We never buy wine, tobacco, or salt without paying the tax29 and part of this tax is given by law as privileges and subsidies to men that are richer than us. Others use the law to raise the price of bread, meat, iron, and cloth artificially. Since each one exploits the law to his advantage, we want to exploit it too. We want it to enact the right to public assistance, which is the share of plunder for the poor. To do this, we have to be voters and legislators in order to organize widespread alms for our class , just as you have organized widespread protectionism for yours. Do not tell us that you will provide our share and that, in accordance with M. Mimerel's proposal,30 you will throw us the sum of 600,000 francs to keep us quiet and as a bone to gnaw. We have other claims, and in any case we wish to decide for ourselves, just as the other classes have decided for themselves!"
What can we say in reply to this argument? Yes, as long as the accepted principle is that the law can be diverted from its proper mission, that it can violate property instead of protecting it, each class will want to make the law, either to defend itself against plunder or to organize it for its own benefit. The political question will always be harmful, predominating, and all-absorbing, in a word, people will be beating on the door of the Legislative Palace.31 The conflict will be no less bitter within it. To be convinced of this it is scarcely necessary to look at what is going on in the debating Chambers in France and England; all you need to know is how the question is being put.
Is there any need to prove that this odious perversion of the law is a constant source of hatred and discord, which may go so far as to cause social disorganisation?32 Just look at the United States. This is (the) one country in the world in which the law most faithfully fulfills its role to uphold the freedom and property of each person. It is therefore the one country in the world in which social order appears to be based on the most stable foundations. However, within the United States itself there are two questions, and only two questions, which have threatened political order from the outset. What are these two questions? Slavery and tariffs,33 that is to say, precisely the only two questions in which, contrary to the general spirit of that republic, the law has taken on the character of a plunderer. Slavery is a violation, sanctioned by the law, of the rights of the person. Protectionism is a violation, perpetrated by the law, of the right of property, and certainly it is very remarkable that, in the middle of so many other discussions, this twin legal scourge, a sorry inheritance from the old world, is the only one that may lead and perhaps will lead to the break up of the Union. Indeed, no more significant fact can be imagined within society than this: The law has become an instrument of injustice. And if this fact leads to such momentous consequences in the United States, where it is just an exception, what will it lead to in this Europe of ours, where it is a principle, a system (of government)?
M. de Montalembert,34 referring to the reasoning behind a famous proclamation by M. Carlier, said "We must make war on socialism."35 - And by socialism, according to the definition by M. Charles Dupin,36 we have to understand that he meant plunder.
But what form of plunder does he mean? For there are two forms. There is extra-legal plunder37 and legal plunder.38
As for extra-legal plunder, which we call theft or fraud and which is defined, provided for, and punished by the Penal Code, I really do not think this (extra-legal plunder) can be adorned with the name of socialism. It is not this that systematically threatens the very foundations of society. Besides, the war against this sort of plunder has not waited for a signal from M. de Montalembert or M. Carlier. It has been waged since the beginning of time. France had been waging (this war) a long time before the February revolution, long before the appearance of socialism, by a whole apparatus39 of magistrates, police, gendarmes, prisons, convict settlements, and scaffolds. It is the law itself that wages this war, and what we should be hoping for, in my opinion, is that the law will always retain this attitude with regard to plunder.
But this is not the case. Sometimes the law takes the side of plunder. Sometimes it carries it out with its own hands, in order to spare the blushes of, the risks to, and the scruples of its beneficiary.40 Sometimes it mobilizes this whole apparatus of magistrates, police, gendarmes, and prisons to serve the plunderer and treats the plundered, who defends himself, as a criminal. In a word, there is legal plunder and it is doubtless to this that M. de Montalembert is referring.
This plunder may be just an exceptional stain on the legislation of a nation and, in this case, the best thing to do, without undue oratory and lamentation, is to remove it as quickly as possible, in spite of the outcry from the interested parties. How do we recognize it? It is easy; we need to see whether the law takes what belongs to some (people) and gives it to others to whom it does not belong. We need to see whether the law carries out an act that a citizen cannot carry out himself without committing a crime, for the benefit of one citizen and at the expense of others. Move quickly to repeal a law like this; it is not only an injustice, it is a fruitful source of (additional) injustices, for it generates reprisals, and if you are not careful an exceptional act will become widespread, more frequent, and (become) part of a system (of governing). Doubtless, those who benefit from it will make a loud outcry; they will invoke (the) rights they have already acquired. They will say that the state owes their particular industry protection and support. They will claim that it is a good thing for the state to make them richer because, since they are richer, they spend more and thus rain down wages on their poor workers.41 Be careful not to listen to these sophists for it is exactly through the systematization of these arguments that legal plunder becomes systematized.
This is what has happened. The illusion of the day is to make all classes richer at each other's expense; this is generalizing plunder on the pretext of organizing it. Well, legal plunder can be carried out in an infinite number of ways. This gives rise to an infinite number of plans for organizing it, through tariffs, protectionism, privileges, subsidies, incentives, progressive taxation, free education, the right to work (a job),42 the right to a (guaranteed) profit, the right to a wage, the right to public assistance, the right to (be given) tools for work, free credit,43 etc. And it is the combination of all of these plans, insofar as they have legal plunder in common, which is given the name of socialism.44
Now, what kind of war do you wish to wage against socialism, thus defined as forming a body of ideas, if not a war of ideas?45 Do you find this idea wrong, absurd or revolting? Refute it. This will be all the easier the more erroneous, absurd, or revolting (the idea) is. Above all, if you wish to be strong, start by rooting out from your legislation everything relating to socialism that has managed to creep into it – no small task.46
M. de Montalembert has been criticised for wanting to use brute force against socialism.47 This is a criticism from which he should be cleared, since he formally stated, "The war against socialism should be in accordance with the law, honor, and justice."48
But can't M. de Montalembert see that he has placed himself in a vicious circle? Do you want to oppose socialism by means of the law? But it is precisely socialism that calls upon the law. It does not aim to carry out extra-legal plunder, but legal plunder. It is the law that it intends to make it into a tool, like monopolists of all kinds, and once it has the law on its side, how do you hope to turn the law against it? How do you hope to bring it under the control of your courts, your gendarmes, or your prisons?
So what do you do? You want to prevent (socialists) from having any say in making laws.49 You want to keep (socialism) out of the Legislative Palace. I dare to predict that you will never succeed in this, while laws are being passed inside it (based) on the principle of legal plunder. It is too unjust and too absurd.
It is absolutely necessary for this question of legal plunder to be settled and there are just three alternatives:
That the few plunders the many;
That everyone plunders everyone else;
That nobody plunders anybody.
(So you have to choose between) partial plunder, universal plunder, and the absence of plunder.50 The law can pursue only one of these three alternatives.
Partial plunder – this is the system that prevailed for as long as the electorate was partial51 and is the system to which people return to avoid the invasion of socialism.
Universal plunder – this is the system that threatened us when the electorate became universal52 with the masses having conceived the idea of making laws along the same lines as their legislative predecessors.
Absence of plunder – this is the principle of justice, peace, order, stability, conciliation, and common sense that I will proclaim with all my strength, which is, alas, very inadequate, and with my lungs until my final breath.53
And in all sincerity, can anything else be asked of the law? Can the law, with force as its necessary sanction, be reasonably employed for anything other than ensuring everyone their right? I challenge anyone to cause it to step outside this sphere without turning it upside down it and consequently without turning the use of force against (what is) right. As this would be the most disastrous, the most illogical social disturbance imaginable,54 we really have to acknowledge that the true solution of the social problem, so long sought after, is encapsulated in these simple words: Law is organized Justice.
Well, we should note this clearly: to organize justice by (means of the) law, that is to say, by (the use of coercive) force, excludes the idea of organizing by law or by (the use of) force any expression of human activity: (such as) labor, charity, agriculture, trade, industry, education, the fine arts, or religion, for it is impossible for any of these secondary organizations (organised by force in this way) not to destroy the (primary and) essential organization (which is society itself). In effect, how can we imagine (the use of) force impinging on the freedom of citizens without undermining justice or acting against its own purpose?
Here I am coming up against the most popular preconception of our age. Not only do we want the law to be just, we also want it to be philanthropic. We are not content for it to guarantee each citizen the free and harmless exercise of his faculties as they apply to his physical, intellectual, and moral development; we require it to spread well-being, education, and morality directly across the nation. This is the seductive side of socialism.
However, I repeat, these two tasks of the law are contradictory. A choice has to be made. A citizen cannot simultaneously be free and not free. M. de Lamartine55 wrote to me one day "Your doctrine is only half of my program. You have stopped at freedom, I have reached fraternity."56 I replied to him "the second half of your program will destroy the first." And in effect it is totally impossible for me to separate the word fraternity from the word voluntary. It is impossible for me to conceive (of) a fraternity that is coerced by law without freedom being destroyed by law, and justice trampled underfoot by law.57
Legal plunder is rooted in two things; the first, we have seen, is in human selfishness, the other in false philanthropy.
Before going any further, I think I have to explain what I mean by the word plunder.
I do not take it to mean, as is only too often the case, something that is vague, undetermined, approximate, or metaphorical; I am using it in its properly scientific meaning, and as expressing the opposite idea to that of (the right to) property. When a portion of wealth passes from the person who has acquired it, without his consent and without compensation, to someone who has not created it, whether this is by force or fraud, I say that there has been a violation of property (rights) and that there has been (an act of) plunder. I say that it is this that the law should be repressing justly everywhere and always. That if the law is carrying out the very act that it should be repressing, I say that there is plunder nonetheless and even, socially speaking, with (even) worse consequences. Only in this case it is not the person who benefits from the plunder that is responsible for it, it is the law, the legislator, or society, and that is what constitutes the political danger.
It is unfortunate that this word has offensive overtones.58 I have tried in vain to find another, for at no time and still less today do I wish to cast an irritating word into the cauldron of our disagreements. For this reason, whether you believe it or not, I declare that I do not intend to question either the intentions or the morality of anyone whomsoever. I am attacking an idea that I consider to be false and a practice that appears to me to be unjust, and all this is so far beyond our intentions that each of us takes advantage of it unwittingly and suffers from it unknowingly. One would have to write under the influence of party spirit or out of fear, to cast doubt on the sincerity of (those who defend) protectionism, socialism, or even communism which are only one and the same plant at three different stages of its development.59 All that could be said is that plunder is more visible in protectionism60 because of its partiality, and in communism because of its universality. From this it follows that of the three systems socialism is still the most vague, indecisive, and consequently the most sincere.
Be that as it may, agreeing that legal plunder has one of its roots in false philanthropy is obviously to exonerate its intentions.
This being understood, let us examine the value, the origin, and the end result of this popular yearning which wants to achieve the general good by means of general plunder.
Socialists tell us, "Since the law organizes justice, why should it not also organize labor, education, or religion?"
Why? Because it could not organize labor, education, or religion without disorganizing justice.
Note therefore that law is (the use of) force, and that consequently the domain of the law cannot legitimately exceed the legitimate domain of (the use of) force.
When the law and (the use of) force hold a man in accordance with justice, they impose on him nothing other than pure negation. They impose only an abstention from causing harm. They do not interfere with his person, his freedom, or his property. All they do is safeguard the person, freedom, and property of others. They remain on the defensive; they defend the equal rights of all. They carry out a function whose harmlessness is obvious, whose usefulness is palpable, and whose legitimacy is uncontested.
This is so true that, as one of my friends brought to my notice, to say that the aim of the law is to ensure the reign of justice is to use an expression that is not strictly true. What should be said is: The aim of the law is to prevent injustice from reigning. In reality it is not justice that has its own existence, it is injustice. The one results from the absence of the other.
But when the law, through the offices of its necessary agent, (the use of) force, imposes a way of working, a method of teaching (or the contents of the latter), a faith or a creed, it is no longer acting negatively but positively on men. It substitutes the will of the legislator for their own will. Their role is no longer to discuss among themselves, to make choices, or to plan for the future; the law does all that for them. Their minds become a useless thing; they cease to be men and lose their personhood, their freedom, and their property.
Try to imagine a form of labor imposed by force that is not a violation of liberty; or a transfer of wealth imposed by force which is not a violation (of) property. If you do not succeed, then you must agree that the law cannot organize work and industry without organizing injustice.
When, from the confines of his study, a political writer surveys society, he is struck by the spectacle of inequality that greets him. He weeps over the sufferings that are the lot of so many of our brothers, sufferings that appear even more saddening when contrasted with luxury and opulence.
Perhaps he should ask himself whether such a state of society has not been caused by former (acts of) plunder carried out by (acts of) conquest, and by present (acts of) plunder carried out by means of the law.61 He should ask himself whether, given that all men aspire to well-being and improving their lot, the reign of justice is not enough to achieve the greatest progress and the greatest amount of equality that is compatible with individual responsibility, which God has put aside as the just reward for virtue and vice
He does not even give this a thought. His thoughts go to schemes, arrangements, and organizations that are either legal or artificial. He seeks a remedy in perpetuating or exaggerating that which has produced the harm.
The fact is, outside justice which, as we have seen, is only a genuine negation, is there a single one of these legal arrangements that does not include the principle of plunder?
You say, "Here are men who lack wealth" and you turn to the law. But the law is not a breast that fills by itself or whose milk-bearing ducts draw from elsewhere than in society. Nothing enters the public treasury in favor of a citizen or a class other than that which other citizens and other classes have been forced to put in. If each person draws out only the equivalent of what he has put in, it is true that your law is not plunderous, but it does nothing for those men that lack wealth, it does nothing for equality. It can be a tool for equality only to the extent that it takes from some to give to others, and in this case it becomes a tool of plunder.62 If you look at tariff protection, subsidies to industry, the right to profit, the right to work (a job), the right to public assistance, the right to education, progressive taxation, free credit, or social workshops63 from this point of view, you will always find at their root legal plunder and organized injustice.
You say, "Here are men who lack enlightenment" and you turn to the law. But the law is not a torch that spreads its own light far and wide. It hovers over a society in which there are men with knowledge and others without, citizens who need to learn and others who are willing to teach. It can do only one of two things; either it allows this type of transaction to operate freely and permits this type of need to be freely satisfied, or it can coerce the wills (of those involved) and take from some to pay teachers who will be responsible for educating the others free of charge. But in the second case it cannot do this without violating (their) freedom and property, signifying therefore legal plunder.
You say, "Here are men who lack morality or religion" and you turn to the law. But the law is force and do I need to say what a violent and mad enterprise it is to have coercion interfere in matters like these?
For all its theories about systems and (all) its efforts it appears that socialism, however indulgent it is toward itself, cannot avoid catching a glimpse of the monster which is legal plunder. But what does it do? It cleverly shrouds it from all eyes, even its own, under the seductive names of fraternity, solidarity, organization, and association.64 And because we do not ask so much of the law since we require only justice from it, (socialism) presumes that we are rejecting fraternity, solidarity, organization, and association and hurls the epithet "Individualist!" at us.
It ought to know, therefore, that what we are rejecting is not natural organization, but coerced organization.65
It is not free association, but the forms of association that it wants to impose on us.
It is not spontaneous fraternity, but legally (imposed) fraternity.
It is not providential solidarity, but artificial solidarity, which is only an unjust displacement of responsibility.66
Socialism, like the old politics from which it stems, confuses government with society. For this reason, each time we do not want something to be done by the government, it concludes that we do not want this thing to be done at all. We reject education by the state; therefore we do not want education. We reject a state (established) religion; therefore we do not want religion. We reject equality established by the state; therefore we do not want equality, etc. It is as though it was accusing us of not wanting men to eat because we reject the growing of wheat by the state.
How has the bizarre idea become prevalent in the world of politics that one can make things flow from the law which are not there: such as "the good" (in the broad sense of the term), wealth, science, and religion?
Modern political writers, particularly those of the socialist school, base their various theories on a common, and definitely the strangest and most arrogant, hypothesis that the human brain has ever devised.
They divide humanity into two parts. All men, minus one, form the first (part) and the political writer, all on his own, forms the second and by far the most important part.
In effect, they begin with the premise that men do not have within themselves either a principle of action67 or any means of making judgements, that they lack initiative, that they are made of inert matter, are passive molecules and atoms deprived of spontaneity, and that they are at most a form of plant life that is indifferent to its own mode of existence,68 and (which is) willing to accept an infinite number of more or less symmetrical, artistic, and perfected ways (of living?) (imposed by) an external will and hand.69
Each of them then quite simply supposes that he himself, by wearing the hats of organizer, prophet, legislator, teacher, or founder, is this will and this hand, this universal driving force and this creative power whose sublime mission is to gather together in society the scattered stuff of humanity.
From this given starting point, just as each gardener according to his whim prunes his trees into pyramids, umbrellas, cubes, cones, vases, fruit-tree shapes, rushes, or fans, each socialist, according to his vision, prunes poor humanity into groups, series, centers, sub-centers, honeycombs, and social, harmonious, or various other kinds of workshops, etc.70
And just as the gardener needs axes, saws, sickles, and shears in order to prune his trees, the political writer needs coercive forces that he can find only in the laws in order to arrange his society, namely customs laws, tax laws, laws governing public assistance, or education.
It is quite true that the socialists consider humanity to be material that can be modeled to fit social arrangements that if, by chance they are not certain of the success of these arrangements, they claim at least a part of humanity as material for experimentation. We know just how popular the idea of trying out all their systems is among them, and we have already seen one of their leaders come in all seriousness to ask the Constituent Assembly to give them a commune71 with all its inhabitants in order for them to carry out tests.72
In this way, every inventor makes a small scale model of his machine before making it full scale. In this way, chemists sacrifice a few chemicals and farmers a little seed and a corner of a field in order to test an idea.73
But what an unmeasurable distance there is between a gardener and his trees, the inventor and his machine, the chemist and his chemicals, and the farmer and his seed! This is the same distance that the socialist quite sincerely believes separates him from humanity.
We should not be surprised that nineteenth century political writers consider society to be an artificial creation resulting from the genius of the legislator.
This idea, the fruit of a classical education, has dominated all the thinkers and great writers of our country.74
All have seen the same relationship between humanity and the legislator as there is between clay and the potter.
What is more, while they have agreed to acknowledge (that there is) a principle of action in the hearts of men and a principle of discernment in their minds, they have thought that this was a fatal gift from God and that humanity, under the influence of these two driving forces, was progressing inexorably toward its downfall. They have assumed that left to its own devices, humanity would concern itself with religion only to end up with atheism, with education only to achieve ignorance, and with work and trade only to end up in poverty.
Fortunately, according to these same writers, there are a few men known as rulers and legislators who have received contrary tendencies from heaven not only for themselves but also on behalf of all the others.
While human propensity is toward evil, their propensity is toward good, while humanity marches on toward darkness, they aspire to the light, and while humanity is drawn to vice, they are attracted to virtue. And assuming this, they lay claim to (the use of) force to enable them to substitute their own inclinations for those of the human race.75
All you have to do is to open at random a book on philosophy, politics, or history to see how deeply rooted in our country is the idea that humanity is mere inert matter which receives life, organization, morality, and wealth from government, an idea born of the study of the classics and having socialism for its offspring. Or, what is worse, that humanity itself is drawn toward degradation and is saved from this slippery slope only by the mysterious hand of the legislator. Classically inspired conventional thinking shows us everywhere that behind a passive society there is an occult power that, going by the names of the law and the legislator, or under the cloak of the more convenient, vaguer word one,76 moves humanity, brings it to life, enriches it, and infuses it with morality.
Bossuet.77
"One of the things that one (who?)78 imprinted most strongly on the minds of the Egyptians was love of their country … No one was allowed to be of no use to the State; each person had his work assigned to him by the law and this was passed from father to son. No one could have two employments nor change his own one … but there was one obligatory communal activity, namely the study of the laws and conventional wisdom. Ignorance of the religion and policies of the country was not excused under any circumstances. Besides, each occupation had its own coinage assigned to it (by whom?) … Among good laws, the best was that everyone was fed (by whom?) with a view to his being observed. Their traveling traders filled Egypt with marvelous inventions and saw to it that they were aware of almost everything that might make life easier and more peaceful."79
According to Bossuet therefore, men draw nothing from themselves whether it be patriotism, wealth, activity, wisdom, inventions, agriculture, or science; all these they received by way of the laws or from their kings. All they had to do was to allow themselves to be pushed around (by others). Bossuet takes his argument to such a pitch that he corrects Diodorus for having accused the Egyptians of rejecting wrestling and music. How could that be possible, he says, since these arts had been invented by Trismegistus?80
Similarly, in Persia:
"One of the principal cares of the prince was to ensure that agriculture flourished … Just as there were specific responsibilities laid down for directing the armies, so there were for supervising agrarian labor … The respect for royal government that was inspired among the Persians reached excessive proportions."81
Although the Greeks had highly developed minds, they were no less powerless as to their lot in life, to the point that, if left to their own devices, they would not have risen, as do dogs or horses, to the heights of the simplest games. The agreed classical tradition is that everything comes from outside the people.
"The Greeks, naturally full of intelligence and courage, had been developed from the start by the kings and colonies that came from Egypt. It is from them that they learnt to exercise their bodies, run races on foot, on horseback, or in chariots … The best thing the Egyptians taught them was to be docile and to let themselves be formed by laws enacted for the public good."82
Fénélon.83
Brought up on the study and admiration of antiquity and a witness to the power of Louis XIV, Fénélon could scarcely escape from the idea that humanity is passive and that both its misfortunes and prosperity, its virtues and vices, came to it because of external action, exercised on it by the law or the person who makes the law. Thus, in his utopian city of Salente,84 he subjects men with all their personal interests, faculties, desires, and goods to the absolute discretion of the legislator. Whatever the circumstances, they never judge for themselves, it is the prince who judges for them. The nation is just a formless entity of which the prince is the soul. In him are united the thought, the foresight, the very principles of all forms of organization and progress, and consequently, all responsibility.
To prove this assertion, I would need to copy the entire 10th book of Télémaque. I refer the reader to this and am content to quote a few passages taken at random from this famous poem, the quality of which, in every other respect, I am the first to acknowledge.
With that surprising credulity that characterizes the classics, Fénélon accepts the general happiness of the Egyptians, in spite of the authority of reason and facts, and attributes it not to their own wisdom but to that of their kings.
"We cannot look at the two banks without glimpsing opulent towns, country houses with pleasant situations, land which each year is covered with a golden harvest without any fallow period, grasslands full of herds, farmers bowed under the weight of the fruit that overflows from the bosom of the land, or shepherds who cause the sweet sounds of their flutes and pipes to be echoed round about. Happy are the people, said Mentor, who are led by a wise king.85
Mentor then pointed out to me the joy and abundance that extended over the entire country of Egypt in which up to twenty-two thousand towns could be counted, the justice exercised in favor of the poor against the rich, the proper education of children who were made accustomed to obedience, work, sobriety and to love the arts and letters, the exact observance of all religious ceremonies, disinterestedness, a desire for honor, fidelity to men and fear of the gods that every father inculcated into his children. He never tired of admiring such fine order. Happy are the people, he said to me, whom a wise king leads thus."86
Fénélon creates an idyll of Crete that is even more attractive. Then he adds, through the words of Mentor:
"All that you see in this marvelous island is the fruit of Minos's laws. The education whose provision he ordered for children makes the body healthy and strong. ONE makes them accustomed first of all to a life that is simple, frugal and physically taxing. One assumes that all sensual pleasure makes body and mind soft. One never offers them any other pleasure than that of being invincible through virtue and gaining a great deal of glory. Here, One punishes three vices that go unpunished in other peoples, ingratitude, hypocrisy, and greed. One never needs to repress ostentation and dissipation since these are unknown in Crete … One does not allow valuable furniture, magnificent clothes, delicious feasts, nor gilded palaces."87
This is how Mentor prepares his pupil to grind down and manipulate the people of Ithaca, doubtless with the most philanthropic of intentions and just to make sure, he gives him the example of the city of Salente.
This is how we are given our first notions of politics. We are taught to treat men almost in the way Olivier de Serres88 teaches farmers to treat and mix their soil.
Montesquieu.89
"To maintain the spirit of trade, all laws need to encourage it, and the details of these same laws should be framed to divide up wealth as trade increases it, in such a way as to put each poor citizen in sufficient comfort to be able to work like the others, and each rich citizen in such a state of poverty that he needs to work to conserve or acquire. …"90
The laws thus dispose of all wealth.
"Although in democracy genuine equality is the soul of the state, this is, however, so difficult to establish that an extreme punctiliousness in this respect is not always suitable. It is sufficient that ONE establishes a quota that reduces or sets the differences at a certain level. After this, it is up to particular laws to equalize inequality, so to speak, through the charges they impose on the rich and the relief they give to the poor. …"91
Here again we have the equalization of wealth by the law, by (the use of) force.
"In Greece, there were two forms of republic. One form was military, exemplified by Sparta; the other was commercial, exemplified by Athens. In one, one wanted its citizens to be idle; in the other, one sought to instill a love of work.
I would ask people to give some attention to the extent of the genius these legislators needed to see that by upsetting all the accepted customs, by confusing all the virtues, they would be demonstrating their wisdom to the universe. Lycurgus, combining robbery with a spirit of justice, the most severe slavery with the heights of freedom, the most atrocious sentiments with the greatest moderation, gave his town stability. He appeared to remove from it all resources, arts, trade, money, and city walls. There was ambition with no hope of being better off, they had natural sentiments and they were neither child, husband, nor father. Even modesty was removed from chastity. It is along this route that Sparta was led to greatness and glory. . . .
We have also seen this extraordinary situation that was observed in the institutions in Greece in the dregs and corruption of modern times. An honest legislator has formed a people in which probity appears to be as natural as bravery was in the Spartans. Mr. Penn92 is a genuine Lycurgus and, while Mr. Penn's object was peace in the same way as Lycurgus's was war, they resemble one another in the singular route in which they set their people, in the influence they had on free men, in the preconceptions they overcame and in the passions they subdued.
Another example is Paraguay.93 Those who regard the pleasure of governing as the sole good thing in life have wished to make it a crime against society, but it will always be a fine thing to govern men while making them happy. . . .
Those who wish to establish similar institutions will set up the common ownership of goods of Plato's Republic, the respect for the gods that he demanded, the separation from foreigners in order to preserve customs, with the city and not the citizens carrying out trade. They will give us our arts without our luxury and our needs without our desires."94
However much popular enthusiasm cries, "It is by Montesquieu, so it is marvelous! It is sublime!" I will have the courage of my convictions and say:
"What? You have the nerve to find that beautiful?"95
But it is dreadful! Revolting! And these quotations that I could increase in number show that in Montesquieu's view people, freedom, property, and the entire human race are just materials suited to the exercise of the legislator's wisdom.
Rousseau.96
Although this political writer, the supreme authority for democrats, bases the social edifice on the general will, no one has accepted as completely as he does the hypothesis of the total passivity of the human race in the presence of the legislator.
"While it is true that a great prince is a rare person, how much more so is a great legislator? The former has only to follow the model that the latter has to put forward. The latter is the mechanic who invents the machine, while the former is the worker who climbs abord and makes it go."97
And what is the role of men in all this? The machine that you climb abord and make go, or rather the raw material out of which the machine is made!
Thus, between the legislator and the prince and between the prince and his subjects there is the same relationship as between the agronomist and the farmer and the farmer and the soil. At what height above humanity, therefore, do we place the political writer who governs the legislators themselves and teaches them their job in these imperative terms?
"Do you want to give consistency to the state? Reduce the distance between the extreme levels as far as is possible. Do not allow either wealthy people or paupers.
Is the soil hard to till or infertile, or the country too small to hold its inhabitants? Turn towards industry and the arts whose productions you can trade for the goods you lack … Do you lack inhabitants where the land is good? Concentrate on farming which increases the number of men and turn away from the arts, which will only succeed in reducing the population of the country. … Are you concerned with shorelines that are broad and accessible? Cover the sea with ships and you will have a brilliant and short existence. Does the sea wash upon only inaccessible rocks on your shoreline? Remain savages and eaters of fish, your life will more peaceful, perhaps better and certainly happier. In a word, apart from the maxims common to all, each people carries within it a cause that orders it in a particular way and makes its legislation proper to it alone. This is why in former times the Hebrews and more recently the Arabs have had religion as their principal object, the Athenians letters, Carthage and Tyre trade, Rhodes naval matters, Sparta war, and Rome virtue. The author of the Spirit of the Laws98 has shown with what art the legislator directs the system of institutions toward these objects. But if the legislator makes a mistake and takes a principle other than that which arises from the nature of things and one tends toward slavery while the other tends toward freedom, one toward wealth and the other toward population, one to peace and the other to conquests, the laws will be seen to become imperceptibly weaker, the constitution will be changed and the state will not cease to suffer agitation until it is either destroyed or changed and invincible nature has regained its empire."99
But if nature is sufficiently invincible to regain its empire, why does Rousseau not admit that it did not need such a legislator to take this empire from the outset? Why does he not admit that by acting on their own initiative men will of their own accord turn toward trade on broad and accessible shorelines without a Lycurgus, a Solon, or a Rousseau interfering at the risk of making a mistake?
Be that as it may, we can understand the awesome responsibility that Rousseau places on inventors, teachers, leaders, legislators, and the manipulators of societies. This is why he is very demanding with regard to them.
"He who dares to undertake to teach a people must feel that he is, so to say, capable of changing human nature and transforming each individual who, of himself, is a perfect and solitary whole, into a part of a greater whole from which this individual receives, totally or in part, his life and being; he must be capable too of changing the constitution of man in order to strengthen it and substituting an incomplete and moral existence for a physical and independent one which we have all received from nature. In a word, he needs to remove from man his own forces in order to give him some that are foreign to him. …"100
Poor human race, what will Rousseau's disciples do with your dignity?
Raynal.101
"The climate, that is to say the sky and the soil, is the first rule of the legislator. Its resources dictate his duty to him. First of all, it is its local situation that he must consult. A people cast upon a sea coast will have laws that relate to navigation … If the colony is concerned with the land, a legislator must provide for both its type and level of fertility. …
It is above all in the distribution of property that the wisdom of the legislation will shine through. In general and in all the countries of the world, when a colony is founded, land must be given to each man, that is to say a sufficient amount to each person to provide for a family. …
In an uncivilized island that ONE would people with children, one would only have to leave the seeds of truth to blossom in the development of reason. . . . But when one establishes a people that is already old in a new country, the art lies in leaving to it only those harmful opinions and habits from which it cannot be cured and corrected. If one wants to prevent them from being passed on, one will supervise the second generation through the communal and public education of its children. A prince or legislator should never found a colony without sending wise men in advance to educate the young . . . In a new colony every facility is open to the precautions of the Legislator who wishes to purify the blood and manners of a people. If he has genius and virtue, the lands and men he will have in his hands will inspire in his soul a plan for society which a writer would outline only in a vague manner subject to unstable hypotheses that vary and complicate one another with an infinite number of circumstances that are too difficult to forecast and combine. … "102
Does he not appear to hear a teacher of agriculture say to his pupils?: The climate is the farmer's first rule. Its resources dictate his duties. It is its local situation that he has to consult. If it is on a clay soil, he has to take these steps. If he has to deal with sand, this is what he has to do. All facilities are available to the farmer who wishes to clear and improve his soil. If he is clever, the land and fertilizers he has in his hands will inspire in him an operating plan that a teacher will be able to outline only in a vague manner subject to unstable hypotheses that vary and complicate one another with an infinite number of circumstances that are too difficult to forecast and combine.
But, O sublime writers, please remember on occasion that this clay or sand, this compost of which you so arbitrarily dispose is made up of men, your equals, who are intelligent and free beings like you, and who, like you, have received from God the faculty of sight, foresight, thought, and making judgments for themselves!
Mably.103
(He takes the laws to be rusty from age, security to be neglected, and continues thus:)
"In these circumstances, you have to be convinced that the springs of government have been loosened. Give them renewed tension (Mably is addressing the reader) and the harm will be cured … Think less of punishing faults than of encouraging the virtues you need. This way, you will restore the vigor of youth to your republic. Free peoples have lost their freedom because they did not know this! But if the harm has progressed so far that ordinary magistrates cannot remedy it effectively, turn to an extraordinary group of magistrates with a short tenure and considerable power. The citizens' imagination in such circumstances needs to be struck. …"104
And more in this vein for twenty volumes.
There was a time when, under the influence of such teaching, which is the foundation of classical education, everyone wanted to place himself outside and above humanity in order to arrange it, organize it, and establish it according to his views.
Condillac.105
"My Lord, make yourself out to be a Lycurgus or a Solon. Before continuing to read further, amuse yourself by giving laws to some uncivilized tribe in America or Africa. Settle these nomadic men in fixed abodes; teach them to feed their herds, and work at developing the social qualities that nature has given them. Order them to start practicing the duties of humanity. Use punishment to poison the pleasures promised by passion and you will see that these savages will lose a vice and gain a virtue with each article of your legislation.106
All peoples have had laws. But few of them have been happy. Why is this so? It is because legislators have almost always ignored the fact that the object of society is to unite families through a common interest.
The impartiality of laws lies in two things: establishing equality in the wealth and equality in the dignity of citizens … As your laws establish greater equality, they will become dearer to each citizen … How will avarice, ambition, sensuality, laziness, idleness, envy, hatred, and jealousy operate in men who are equal in fortune and dignity and in whose eyes the laws will give no opportunity of disrupting equality? (The idyll follows.)
What you have been told about the republic of Sparta should give you greater enlightenment on this question. No other State has ever had laws that conformed more to the order of nature and equality."107
It is not surprising that the seventeenth and eighteenth centuries considered the human race to be inert matter that waits, receives everything - its form, character, stimulus, movement, and life - from a great prince, a great legislator, or a great genius. These centuries were fed on the study of antiquity and antiquity effectively offers us everywhere, in Egypt, Persia, Greece, and Rome, the sight of a few men manipulating at will a human race that is subjugated by force or deception. What does that prove? It shows that because man and society can be improved, error, ignorance, despotism, slavery, and superstition must have existed in greater quantity at the dawn of time. The mistake of the writers I have quoted is not to have noted the fact but to have offered it as though it were a rule to be admired and imitated by future races. Their mistake is to have accepted with an inconceivable lack of critical analysis and on the faith of puerile conventional thinking, what is unacceptable, that is to say, the grandeur, dignity, morality, and well-being of these artificial societies in the ancient world; to have failed to understand that time produces and propagates light; and that, as the light grows brighter, (the use of) force takes the side of (what is) right and society takes possession of itself again.
And in fact, what is the political work we are witnessing (today)? It is none other than the instinctive effort of all peoples to (move) towards freedom. And what is "Freedom," this word that has the power of making all hearts beat faster and causing agitation around the world, if it is not the sum of all freedoms? — freedom of conscience, teaching, and association, freedom of the press, freedom to travel, work, and trade, in other words, the free exercise of all harmless faculties by all men.108 And, in still other terms, isn't (freedom) the destruction of all despotic regimes, even legal despotism, and the reduction of the law to its sole rational function which is to regulate the individual right of legitimate (self) defense or to punish injustice?
This tendency in the human race, it must be agreed, is greatly thwarted, particularly in our country by the fatal tendency—the fruit of classical teaching—that is common to all political writers, to put themselves in a position outside the human race in order to arrange it, organize it, and establish it as they please.
For while society agitates in order to achieve freedom, the sole thought of "the great men," who put themselves at its head and who are imbued with the principles of the seventeenth and eighteenth centuries, is to bend it to suit the philanthropic despotism of their social inventions and to have society, as Rousseau says, bear docilely "the yoke of public happiness" as they have imagined it.109
We saw this clearly in 1789. Scarcely had the legal former regime been destroyed when people busied themselves making the new form of society submit to other artificial arrangements, all of which were based on the agreed concept: the omnipotence of the law.
Saint-Just.110
"The legislator commands the future. It is up to him to want what is good. It is up to him to make men what he wants them to be."111
Robespierre.112
"The function of the government is to direct the physical and moral forces of the nation toward the purpose behind its institution."113
Billaud-Varennes.114
"It is necessary to recreate the people to whom we wish to restore freedom. Since it is necessary to destroy former prejudices, change long-standing habits, improve depraved affections, restrict superfluous needs, and root out inveterate vices, strong action and a fervent drive are needed. … Citizens, in Sparta the inflexible austerity of Lycurgus became the unshakeable foundation for the republic; the weak and trusting character of Solon plunged Athens once again into slavery. This parallel encapsulates the entire science of the government."115
Le Peletier.116
"Considering how far the human race has degenerated, I am convinced of the need to carry out total regeneration and, if I may put it this way, to create a new people."117
As you can see, men are nothing other than raw material. It is not up to them to want what is good; they are incapable of this. It is up to the legislator, according to Saint-Just. Men are only what he wants them to be.
According to Robespierre, who echoes Rousseau literally, the legislator begins by designating the purpose for which the nation is established. Thereafter, all the government has to do is to direct all physical and moral forces toward this aim. The nation itself always remains passive in all this, and Billaud-Varennes teaches us that it should have only the prejudices, habits, affections, and needs that are authorized by the legislator. He goes so far as to say that the inflexible austerity of one man is the foundation of the republic.
We have seen that, where evil is so great that ordinary magistrates cannot remedy it, Mably recommended dictatorship in order to make virtue flourish. "Turn to an extraordinary group of magistrates," he says, "with a short tenure and considerable power. The citizens' imagination in such circumstances needs to be struck." This doctrine has not been lost. Listen to what Robespierre says:
"The principle of republican government is virtue, and its means, while it is becoming established, is terror. In our country, we want to substitute morality for selfishness, probity for honor, principles for customs, duty for the proprieties, the empire of reason for the tyranny of fashion, a scorn of vice for a scorn of misfortune, pride for insolence, greatness of spirit for vanity, a love of glory for a love of money, good people for good company, merit for intrigue, genius for a finely turned phrase, truth for brilliance, the attraction of happiness for the boredom of sensuality, the greatness of man for the small-mindedness of the great, a people that is magnanimous, powerful, and happy for a people that is likable, frivolous, and wretched, in a word, all the virtues and all the miracles of a republic for all the vices and absurdities of the monarchy."118
What (a great) height above the rest of humanity Robespierre sets himself here! And note the circumstance in which he is speaking. He does not limit himself to expressing a wish for a major regeneration of the human heart, he does not even expect that this will be the result of a proper system of government. No, he wants to achieve this by himself, and by means of terror. The speech from which this puerile and plodding heap of contradictions is taken aimed to set out the moral principles that ought to direct a revolutionary government. Note that, when Robespierre comes forward to request a dictatorship it is not just to repel foreigners and combat factions, but really to achieve the triumph of his own moral principles through terror, and this prior to the application of the Constitution. His pretension is to root out from the country, through terror, nothing less than selfishness, honor, customs, good manners, fashion, vanity, a love of money, good society, intrigue, brilliance of mind, sensuality, and wretchedness. It is only after he, Robespierre, has accomplished these miracles, as he quite rightly calls them, that he will allow the law to regain its empire. Oh, you poor people who think you are so great, who hold humanity to be so insignificant, who want to reform everything, reform yourselves and that task will suffice.
However, in general, reformers, legislators, and political writers do not ask to exercise an immediate despotism over the human race. No, they are too moderate and philanthropic for that. They demand only the despotism, absolutism, and omnipotence of the law. The only thing to which they aspire is to make the law.
To show how universal this strange tendency of minds has been in France, not only would I have had to copy out the entire works of Mably, Raynal, Rousseau, Fénélon, and long quotations from Bossuet and Montesquieu, I would also have had to copy the entire minutes of the sessions of the Convention.119 I will refrain from doing so and merely refer the reader to them.
We can be sure that this idea was very attractive to Bonaparte.120 He embraced it with fervor and put it energetically into practice. As he considered himself to be a chemist, all he saw in Europe was a source of material on which to experiment. However, this material showed itself to be a powerful chemical. When he was greatly disillusioned on Saint Helena, Bonaparte appeared to acknowledge that there was a certain amount of initiative in the people and he seemed to be less hostile to freedom. However, this did not stop him from giving the following lesson to his son in his will, "To govern is to spread morality, education, and well-being widely."
Is it still necessary to use tedious quotations to show where Morelly, Babeuf, Owen, Saint-Simon, or Fourier take their source?121 I will limit myself to offering the reader a few extracts of the book by Louis Blanc122 on the organization of work.123
"In our project, society receives its impetus from government."124
In what does the impetus that the government gives society consist? In imposing the project of M. Louis Blanc.
On the other hand, society is the human race.
Therefore, in the end, the human race receives its impetus from M. Louis Blanc.
Let him get on with it, people will say. Doubtless the human race is free to follow the advice of whomever (they like). But this is not how M. Louis Blanc sees things. He thinks that his project should be converted into law and consequently be imposed by (the use of) force by the government.
"In our project, the state only has to provide labor with some legislation (excuse the only) by means of which industrial activity can and ought to accomplish its task in total freedom. It (the State) only places freedom on a slope (that is all) which it descends once it has been put there simply through the force of things and by a natural consequence of the established mechanism."125
But what is this slope? "The one indicated by M. Louis Blanc." Does it not lead to an abyss? "No, it leads to happiness." Why then does society not put itself on it of its own accord? "Because it does not know what it wants and needs impetus." Who will give it this impetus? "The government." And who will give this impetus to the government? "The inventor of the mechanism, Mr. Louis Blanc."
We will never escape this circle, that of a passive human race and one great man who sets it in motion through the intervention of the law.
Once on this slope, will society at least enjoy a measure of freedom? "Doubtless." And what is freedom?
"Let us say this once and for all: freedom consists not only in the rights which have been granted but in the power given to man to develop and exercise his faculties under the reign of justice and the protection of the law.
And this is not a worthless distinction: its meaning is profound and its consequences immense. For, when it is admitted that, in order to be truly free, man needs the power to exercise and develop his faculties, it follows that society owes a suitable education to each of its members, without which the human mind cannot flourish, together with the tools of work, without which human activity cannot be given full scope. However, by whose intervention will society give each of its members a suitable education and the necessary tools of work, if it is not through the intervention of the State?"126
Thus freedom is power. In what does this power consist? "In having education and the tools of work." Who will dispense education and hand out the tools? "Society, which owes them to its members." Through whose intervention will society hand out tools to those who lack them? "Through the intervention of the State." From whom will the state take them?
It is up to the reader to reply and to see where all this will lead.
One of the strangest phenomena of our time, which will probably astonish our descendants a great deal, is that the doctrine based on this triple hypothesis, the complete inertia of humanity, the omnipotence of the law, and the infallibility of the legislator, is the sacred cow of the party that proclaims itself exclusively democratic.
It is true that it also calls itself social.127
Insofar as it is democratic, it has boundless faith in the human race.
Insofar as it is social, it ranks it lower than mud.
Is it a question of political rights, or of producing a legislator from its heart? In this case indeed, in its view, the people know everything instinctively, they have admirable tact. Their will is always right and the general will cannot err. Suffrage cannot be too universal. No one owes society any guarantees. The will and capacity to make a good choice is always assumed. Can the people make a mistake? Are we not in the century of enlightenment? Well, then! Will the people always remain in a state of tutelage? Have they not won their rights by enough effort and sacrifice? Have they not provided sufficient proof of their intelligence and wisdom? Have they not become mature? Are they not in a position to judge for themselves? Do they not recognize their own interests? Is there a man or a class that dares to claim the right to take the people's place and take decisions and act on their behalf? No, no, the people want to be free and will be free. They want to run their own affairs and will do so.
However, once the legislator has freed himself from the electoral meetings after the elections, oh, how he changes his language! The nation reverts to passivity, inertia, and nothingness and the legislator takes possession of omnipotent powers. Invention, direction, impetus, and organization are all up to him! All humanity has to do is let itself be pushed around; the hour of despotism has rung. And note that this is fatal; for the people who only recently were so enlightened, moral, and perfect now have no inclinations, or if they have any, these are leading them all to degradation. And they should be left a shred of freedom! Are you not aware that, according to M. Considérant,128 freedom inexorably leads to monopoly?129 Are you not aware that freedom is competition and that competition, according to M. Blanc, is a system of extermination for the people and a cause of ruin for the middle classes?130 That it is for this reason that people have been all the more exterminated and ruined the freer they are, as Switzerland, Holland, England, and the United States show? Are you not aware that, still according to Mr. Louis Blanc, competition leads to monopoly and that for the same reason, low prices lead to high prices? That competition leads to the exhaustion of the resources used for consumption and pushes production into becoming an activity which wastes resources? That competition forces production to increase and consumption to decrease? From which it follows that free people produce in order not to consume and that competition is simultaneously oppression and madness and that it is absolutely essential for M. Louis Blanc to meddle with it.131
So in the end, what freedom can we leave men? Will it be freedom of conscience? But we will see them all take advantage of this granting of permission (by the state) to become atheists. Freedom of education? But fathers will hasten to pay teachers to teach their sons immorality and error; what is more, according to M. Thiers,132 if education was freed up across the nation,133 it would cease to be national and we would raise our children according to the views of the Turks or Hindus, instead of which, through the legal despotism of the university,134 they have the good fortune to be raised according to the noble views of the Romans. Freedom of working? But this is competition, which leaves products unconsumed, exterminates the people, and ruins the middle classes. Freedom to trade? But we know only too well, and protectionists have demonstrated this ad nauseam, that men are ruined when they trade freely and that in order to become rich they should trade without freedom. Freedom of association? But according to socialist doctrine, freedom and association are mutually exclusive precisely because one takes freedom away from men only in order to force them to form associations.
You can thus see clearly that the social democrats cannot, in all conscience, leave men any freedom, since by their very nature they would all tend everywhere towards all forms of degradation and moral corruption, if these fine gentlemen did not put things right.
We are left guessing, if this is so, on what basis universal suffrage is being demanded so insistently on their behalf.
The pretensions of the organizers raise another question, which I have often asked them135 and to which, as far as I know, they have never replied. Since the natural tendencies of man are sufficiently bad for their freedom to have to be removed, how is it that those (tendencies) of the organizers are good? Are the legislators and their agents not part of the human race?136 Do they think they are formed from a different clay from the rest of mankind? They state that society, if left to itself, rushes inexorably toward the abyss because its instincts are perverse. They claim to be able to stop it on this slope and redirect it to a better goal. They have therefore received from heaven a level of intelligence and (a set of) virtues that place them outside and above humanity; let them show the justification for this. They wish to be shepherds and want us to be sheep.137 This arrangement assumes that they have superior natures, and we have every right to demand prior proof of this.
Note that what I am questioning is not their right to invent social schemes and propagate them, recommend them, and try them out on themselves at their own risk, but in particular their right to impose them on us through the law, that is to say, using the coercive power of the state and taxation.
I demand that the followers of Cabet, Fourier, and Proudhon, the academics (in the state monopoly University), and the protectionists renounce, not their specific ideas, but the idea that is common to them, which is to subject us by force to their groups and series, to their social workshops, "free" banks, their Greek and Roman systems of morality, and to their restrictions on trade. What I demand from them is for us to be allowed to judge their plans and to refuse to join them, whether directly or indirectly, if we find that they run counter to our interests or are repugnant to our consciences.
For, apart from the fact that it is oppressive and plunderous, the call for bringing in the government and (higher) taxes implies once again this damaging hypothesis, the infallibility of the organizer, and the incompetence of humanity.
And if humanity is incapable of making its own judgments, why are people talking to us about universal suffrage?
The contradiction in these ideas is unfortunately reflected in events, and while the French people have led all the others in winning their rights, or rather their political demands, they nevertheless remain the most governed, regulated, administered, taxed, hobbled, and exploited of all peoples.
They are also the people where revolutions are most likely to happen, and this is how it should be.
As soon as you start with the idea, accepted by all our political writers and so energetically expressed by M. Louis Blanc in the following words, "Society receives its impetus from the government"; as long as men consider themselves to have feelings but (remain) passive, to be incapable of lifting themselves up by their own judgement and energy to (achieve) any form of morality or well-being, and reduced to expecting everything to be provided by the law; in a word, while they accept that their relationship with the state is that of sheep with their shepherd, it is clear that the responsibility of the government is immense. Good things and harmful things, virtues and vices, equality and inequality, wealth and poverty, all flow from it. It is responsible for everything, it undertakes everything, and it does everything, so therefore it is answerable for everything. If we are happy, it rightfully claims our gratitude, but if we are unhappy we can blame only it. Does it not, in principle, dispose of our persons and our belongings? Is not the law omnipotent? When it created the university monopoly, it undertook to meet the hopes of heads of families who were deprived of their freedom, and if these hopes have been dashed, whose fault is it? By regulating industry, it undertook to make it prosper, otherwise it would have been absurd to take away its freedom, and if it suffers, whose fault is it? By interfering in adjusting the balance of trade by playing with the (level of) tariffs, it undertook to make it flourish and if, far from flourishing, it dies, whose fault is it? By awarding the ship-builders its protection in exchange for their freedom, it undertook to make them generate wealth and if they become a financial burden, whose fault is it?
Thus, there is no suffering in the nation for which the government has not voluntarily made itself responsible. Should we be surprised therefore that each cause of suffering is a cause for revolution?138
And what remedy are they proposing? They propose the indefinite widening of the domain of the law, that is to say, the responsibility of the government.
But if the government makes itself responsible for raising and regulating all wages and cannot do this, if it makes itself responsible for giving public assistance for every misfortune and cannot do this, if it makes itself responsible for ensuring all the pensions of all the workers and cannot do this, if it makes itself responsible for supplying all the workers with their (working) tools and cannot do this, if it makes itself responsible for granting free credit to all those craving loans and cannot do this, if, according to the words we have with regret seen escape from the pen of M. de Lamartine,139 "The state has set itself the mission of enlightening, developing, enlarging, fortifying, spiritualizing and sanctifying the souls of the people,"140 and when it fails, do we not see with each disappointment, alas, that it is more than likely that a revolution is inevitable?
I repeat my thesis and say: only after we have studied political economy and before we turn our attention to political science,141 an overriding question has to asked asked. It is this:
What is the law? What ought it to be? What domain does it cover? What are its limits? Consequently, where do the functions of the legislator cease?
I have no hesitation in replying: the law is the public use of force organized to prevent injustice and, in short, the law is justice.
It is not true that the legislator should have absolute power over our persons and property, since they existed before him and his task is to provide them with protection.
It is not true that the function of the law should be to rule over our consciences, our ideas, our will, our education, our feelings, our work, our trade, our talents, and our pleasures.
Its function is to ensure that in none of these areas does the right of one person usurp the right of another.
Because it wields the necessary sanction of (the use of) force, the law can have as its legitimate domain only the legitimate domain (which) (the use of) force (has), namely, that (of) justice.
And as each individual has the right to resort to (the use of) force only in the case of legitimate (self) defense, the collective (use of) force, which is just the joining together of the (use of) force by individuals, cannot reasonably be used for another aim or purpose.
Therefore, the law is solely the organization of the pre-existing individual right of legitimate (self)-defense.
The law is justice.
It is entirely wrong for it to be able to oppress persons or plunder their property, even for a philanthropic reason, since its purpose is to protect them.
And let it not be said that it can at least be philanthropic provided that it refrains from any oppression or plunder; (for) that is contradictory. The law cannot fail to act with regard to our persons or our property; if it does not protect them, it violates them by the very fact that it acts, the very fact that it exists.
The law is justice.
This is a statement that is clear, simple, perfectly defined and delimited, easy to understand, and easy to see, for justice is a given quantity that is unmovable, inalterable, and which does not allow any ifs or buts.
If you exceed these bounds, and make the law religious, fraternal, egalitarian, philanthropic, industrial, literary, or artistic, you will immediately be in the realm of the infinite, the uncertain, the unknown, and in a Utopia which has been imposed upon you, or, what is worse, in a host of utopias struggling to take over the law and impose themselves upon you, since fraternity and philanthropy, unlike justice, do not have fixed limits. Where will you stop? Where will the law stop? One person, like M. de Saint-Cricq,142 will extend his brand of philanthropy only to certain manufacturing classes and will demand that the law disadvantages consumers in favor of producers. Another, like M. Considérant, will take up the cause of the workers and claim from the law on their behalf a guaranteed MINIMUM, of clothing, accommodation, food, and everything necessary for the preservation of life. A third, M. Louis Blanc, will say, correctly, that this is just a rough outline of fraternity and that the law ought to provide all the tools for work and education. A fourth will call to our attention that such an arrangement will still leave an opening for inequality and that the law should ensure that luxury, literature, and the arts reach the most far-flung hamlet. You will thus be led right up to communism, or rather, the legislation will be … what it already is: a battlefield for all forms of dreams and all kinds of greed.
The law is justice.
Within this sphere a simple, unshakeable government (can be) conceived. And I defy anyone to tell me how the thought of revolution or insurrection, or even a simple riot, could arise against a public coercive force that is limited to repressing injustice. Under a regime like this, there would be greater prosperity, well-being would be spread more evenly, and as for the suffering that is endemic to the human race, no one would think of attributing it to the government, which would have had as little effect over it as it has on variations in the weather. Has anyone ever seen the people rise up against the Court of Appeals or burst into the Chamber of a Justice of the Peace143 to demand a minimum wage, free credit, tools for work, favorable tariffs, or social workshops? They are fully aware that these schemes are beyond the judge's powers and will learn in the same way that they are beyond the powers of the law.
But if you make the law based on the principle of fraternity and proclaim that all benefits and all harms flow from it, that it is responsible for each individual's suffering and all social inequality, you will open the floodgates to an unending flow of complaints, hatred, unrest, and revolution.
The law is justice.
And it would be very strange if it could in fairness be anything else! Does justice not encapsulate (what is) right? Are all rights not equal? How then could the law intervene to subject me to the social designs of MM. Mimerel, de Melun,144 Thiers, and Louis Blanc rather than subject these gentlemen to my designs? Does anyone believe that I have not received sufficient imagination from nature to invent a Utopia of my own?145 Is it the role of the law to choose between so many illusions and assign the public (use of) force to serve just one of these?
The law is justice.
And let nobody say, as is constantly said, that if the law were designed in this way (i.e. Bastiat's version of Utopia) it would be atheist, individualistic, and heartless, and would make the human race in its (own) image. That is an absurd deduction, only too worthy of this government obsession with seeing humanity in the law.
What nonsense! Once we are free, does it follow that we would cease to act? Once we no longer receive our impetus from the law, does it follow that we will be devoid of any impetus? Once the law limits itself to guaranteeing us the free exercise of our faculties, does it follow that our faculties will be struck by inertia? Once the law no longer imposes forms of religion, modes of association, methods of teaching, procedures for working, instructions for trading, or rules for charitable work on us, does it follow that we will rush (headlong) into atheism, isolation, ignorance, poverty, and selfishness? Does it follow that we will no longer be capable of recognizing the power and goodness of God, form associations, help each other, love and assist our brothers in misfortune, examine the secrets of nature, and aspire to achieve the perfection of our being?
The law is justice.
And it is under the law of justice, under the regime of (what is) right, under the influence of freedom, security, stability, and responsibility that each person will attain his full value, the full dignity of his being, and that humanity will accomplish with order, calmness, no doubt slowly but certainly, the progress which is its destiny.146
I think that I have theory on my side, for whatever question I subject to reason, whether it concerns religion, philosophy, politics, or economics, whether it relates to well-being, morality, equality, (what is) right, justice, progress, responsibility, solidarity, property, work, trade, capital, wages, taxes, population, credit, or government, at whatever point on the scientific horizon I place the starting point of my research, I invariably reach this conclusion: the solution to the social problem is to be found in freedom.
And have I not also experience on my side? Take a look at the globe. Which are the happiest, most moral, and peaceful nations? Those where the law intervenes the least in private activity; where the government is the least felt; where individuality has the most vigor and public opinion the greatest influence; where the wheels of bureaucracy are the least in number and degree of complexity, the taxes the least heavy and the least unequal, popular discontent the least heated and the least justifiable; where the responsibility of individuals and classes is the most active, and where, as a result, if habits are imperfect, they tend to rectify themselves irresistibly; where (economic) transactions, agreements, and associations are the least hindered; where labor, capital ,and the population are subject to the fewest artificial (government induced) displacements; where humanity follows its own inclinations most fully; where the thought of God prevails the most over the designs of men;147 those (nations) in a word that come the closest to this solution (to the social problem): within the limits of of the law, everything (is to be achieved) through man's free and perfectible spontaneous action,; (and) nothing (done) by the law or by (the use of) force other than universal justice.
It has to be said: there are too many "great men" in the world. There are too many legislators, organizers, founders of societies, supervisors of peoples, fathers of nations, etc. Too many people put themselves above humanity in order to rule it and too many people make it their job busying themselves with (doing that).
People will say to me: Even you are busing yourself with it, you who talk about it. That is true. But they will agree that it is for a very different reason and from a very different point of view, and while I am taking on those who wish to reform it, it is solely to make them abandon their effort.
I am becoming involved with it not like Vaucanson148 with his automaton but like a physiologist with the human organism, in order to examine it and admire it.
I busy myself with it in the same spirit as that of a famous traveler.
He arrived among a savage tribe. A child had just been born and a host of seers, sorcerers, and medicine men were crowding around it, armed with rings, hooks, and ropes. One said, "This child will never smell the aroma of a pipe if I do not lengthen his nostrils." Another said "He will be deprived of the sense of hearing if I do not make his ears reach down to his shoulders." A third said, "He will never see the light of the sun unless I make his eyes slant obliquely." A fourth said, "He will never stand upright if I do not make his legs curve." A fifth said, "He will never be able to think if I do not squeeze his brain." "Away with you," said the traveler, "God does His work well. Do not claim to know more than He does and, since He has given organs to this frail creature, leave those organs to develop and grow strong through exercise, experimentation, experience, and freedom."
God has also provided humanity with all that is necessary for it to fulfill its destiny. There is a providential social physiology just as there is a providential human physiology.149 The social organs are also constituted so as to develop harmoniously in the great outdoors of liberty. So, away with medicine men and organizers! Away with their rings, chains, hooks and pincers! Away with their artificial ways (of doing things)! Away with their social workshop, their phalanstery,150 their governmentalism, their centralization (of state power), their tariffs, their state universities, their state religions, their free banks and their (state) monopoly banks, their regulations, their (economic) restrictions, their moralizing, or their equalizing through taxes! And since the social body has had inflicted on it so many theoretical systems to no avail, let us finish where we should have started, let us reject these systems and at last put freedom to the test; freedom, which is an act of faith in God and in His work.
1 Bastiat uses the word "pervertie" which could mean "perverted" or "corrupted." Further on in the text Bastiat uses a key word "la perturbation" which FEE translated as "perversion" which we believe misses the important role the concept of "la perturbation" (disturbance) plays in Bastiat's broader theory about the causes of "harmony" and "disharmony."
2 Throughout the essay Bastiat uses terms such as "la force collective," "la force publique," or "la Force commune" to refer to the coercive powers of the state. Here, we have trans. it as "the collective or common or public use of force".
3 In the French version of "The Law" Bastiat uses the word "dieu" (god) 12 times. There are also references to "He" (2), "the gods" (2), and "providence" or "providential" (3). He refers to "nature" 16 times (not counting "natural" or "naturally.") The FEE translator inserted 5 references to "god" which were not in the original - 2 in the subtitles he inserted, and 3 in the text itself. He also translated one use of the word "providence" as "God" and one reference to "celui" (he who) as "The Creator." We indicate in the footnotes where these changes occur.
4 Bastiat says "Celui qui nous l'a donnée" (He who has given it to us) which FEE translated as "The Creator."
5 By "assimilation" Bastiat seems to mean the process by which the body has to absorb or "assimilate" directly the food, water, and air it needs in order to survive. He contrasts this with "appropriation" or the turning of other things into property which are also needed for survival. FEE translates "l'assimilation et l'appropriation" as "we convert them (natural resources) into products, and use them."
6 Bastiat uses both the word "personne" and "personnalité" frequently throughout the essay. We have translated "personne" as "person"; and "personnalité" as "personality," "individuality," or "person" depending upon the context. FEE translated "personnalité" as "individuality". Bastiat uses the trio of terms "Personnalité, Liberté, Propriété" throughout the pamphlet.
7 Bastiat states "ces trois choses" which FEE translated as "these three gifts from God."
8 Bastiat says "Chacun de nous tient certainement de la nature, de Dieu, le droit de défendre sa Personne …" which FEE says "each of us has a natural right - from God". This changes the meaning from, "this right to self defence comes from nature (first) and then from God" to "this natural right to self defence comes from God (alone)."
9 Shortly before this essay was written Louis Leclerc presented similar ideas about property being an extension of the self (or "le Moi" as he termed it). This essay had a big impact on Gustave de Molinari and fits in quite closely with what Bastiat is arguing here. See Louis Leclerc, "Simple observation sur le droit de propriété," (Some Simple Observations on the Rights of Property) JDE, vol. 21, no. 90, 15 October 1848, pp. 304-305.
10 The relationship between "Besoins, Efforts, Satisfactions" (Needs, Efforts, and Satisfactions) is central to his economic theory and it is explained in chapter 2 in EH.
11 To account for the fact that the free market was not always able to create a "harmonious" social order Bastiat developed a theory of "disturbing factors," which included things such as wars, the imposition of slavery, organised plunder by the state or the church, tariffs and other government interventions in the economy. Among the disturbing factors was "le déplacement" (displacement, dislocation) of capital and labor caused by government intervention such as a tariff which distorted the French economy by causing new factories to be build within the country which would otherwise not have been built if there had been free trade. See the unfinished chapter XVIII on "Disturbing Factors" in EH2 and "Disturbing and Restorative Factors" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
12 Bastiat planned to have a chapter on "la fausse philanthropie" in the complete version of EH. See the sketch of his plan at the end of his conclusion to the 1850 edition of EH which was inserted by his editor Prosper Paillottet in the second, expanded edition in July 1851.
13 Bastiat uses the phrase "les oppressions sacerdotales" (oppression by priests) which FEE translates as "religious persecutions" which has a more general meaning. It is difficult to determine how religious Bastiat was. We know he had a "crisis of faith" when he was 19 and probably was not a practicing Catholic for most of his life. He reveals this in two letters to his friend Victor Calmètes in September and October 1820. See letters 4 and 5 in CW1, pp. 13-14. He refers to "God" many times in his writings, but also to "Providence" which suggest a deistic perspective. He is often very hostile to the plunderous and fraudulent behaviour of the Church as this expression "les oppressions sacerdotales" (oppression by priests) here demonstrates. It should be seen alongside his critique of "theocratic plunder" and "theocratic fraud" in ES (ES2 1. "The Physiology of Plunder," CW2, pp. 114 ff.) and his idea of "theocratic sophisms" which used to delude the people (Conclusion to ES1, CW2, p. 110). In the conclusion to EH1 (written in late 1849 and published in January 1850) he talks about "l'exploitation des théocraties sacerdotales" (the exploitation by priestly theocracies), "spoliateurs de tous costumes et de toutes dénominations" (plunders (who wear) all kinds of robes and (who come from) all kinds of denominations), and who impose on people "l'esclavage mental" (mental slavery). However, as he approached his death he does seem to refer to God more frequently in his last writings and he did accept the last rites on his deathbed from his cousin who was a priest.
14 Bastiat planned to write a History of Plunder after he had finished writing Economic Harmonies. He sketched out the plan of the book in "The Physiology of Plunder" and it would deal in chronological order with plunder, war, slavery, theocracy, monopoly, governmental exploitation, and false fraternity or communism. See Section 4 "The Unfinished Treatises: The Social and Economic Harmonies and The History of Plunder (1850–51)" of the Readers Guide to the Works of Frédéric Bastiat (1801-1850) </pages/fb-readersguide#unfinishedtreatises>.
15 As Bastiat noted in "The Two Moral Philosophies" (ES2 2, CW2, p134) "religious moral philosophy" which appealed to the plunderers' conscience was insufficient to end plundering. It also required "economic moral philosophy" which appealed to the victims and encouraged them to resist those who were plundering them.
16 He even went so far as to describe the Chamber of Deputies which passed legislation benefiting one class at the expense of another as "la grande fabrique de lois" (the great law factory). See, VII. "Trade Restrictions" in WSWNS, CW3, p. 428.
17 Central to this essay is Bastiat's idea of "la spoliation légale" (legal plunder, or plunder sanctioned by the law) to which he contrasts "la spoliation extra-légale" (extra-legal plunder, or plunder which takes outside of the law). The latter term is translated by "illegal plunder." He first used this concept in his long introduction to his book on Cobden and the League (1845) before he moved to Paris with the slightly different phrase "la spoliation légalement exercée" (plunder carried out legally). His next use of a similar term was "une spoliation permanente et légale" (permanent and legal plunder) which appeared in "À monsieur le rédacteur du Courrier Français" (To the Editor of the Courrier français) Courrier français, 11 April 1846. His first use of the term "legal plunder" was in May 1847 in an essay he wrote for the free trade magazine he edited "Subsistances" (Subsistance Farming), Le Libre-Échange, 8 May 1847 and then regularly after the appearance of his article "Justice et fraternité" (Justice and Fraternity), JDE, 15 June 1848.
18 Bastiat coined the term "la classe électorale" (the electoral or voting class) to describe those who controlled the Chamber of Deputies. See, ES3 6 "The People and the Bourgeoisie," CW2, p. 286. Under the July Monarchy (1830-1848) the right to vote was limited to the wealthiest tax-payers who paid a certain amount in direct tax. Towards the end of the July Monarchy this group numbered about 240,000 individuals or about 5% of the population. Bastiat termed them "la classe électorale" (the electoral or voting class)). After the February 1848 Revolution universal manhood suffrage (men over the age of 21) was introduced for the April 1848 elections at which 7.8 million people participated (or 84% of registered voters). In the May 1849 election there were 9.9 million registered voters. By contrast, in England restrictions on voter eligibility were determined by the value of land one owned. The First Reform Bill of 1832 increased the size of the electorate from 435,000 to 652,000 out of a total population of 13 million.
19 He first used the term "la spoliation universelle" (universal plunder) the previous month in his essay "Spoliation et loi" (Plunder and Law), JDE, 15 May 1850 (see CW2, p. 275.) In his essay "The State" (June, September 1848) he phrased this slightly differently as "le pillage réciproque" (reciprocal pillage) which he noted "il n'en est pas moins criminel parce qu'il s'exécute légalement et avec ordre" (that it is no less criminal because it is carried out legally and in an orderly manner). Also note his definition of the state: "c'est la grande fiction à travers laquelle tout le monde s'efforce de vivre aux dépens de tout le monde" (it is the great fiction by which everyone endeavors to live at the expense of everyone else), in CW2, p. 97.
20 Bastiat states "les unes à cause de leur iniquité, les autres à cause de leur ignorance" which FEE translates as "some for their evilness, and some for their lack of understanding."
21 Here for the first time in this essay he uses the term "la perturbation" (disturbance) which is part of his theory of disturbing factors (les causes perturbatrice) which he used to explain why "economic harmony" was not more widespread. It was because violence and plunder constantly intervened to disrupt the natural harmonizing process of the free market. See the note above about "displacement". For some reason both Wells and FEE translated this as "perversion."
22 Bastiat intended to write such as volume after he had finished Economic Harmonies.
23 The purpose of his series of short essays called the "economic sophisms" was to expose the deceptive and false arguments ("les sophismes" or sophistical arguments) put forward by protectionists and others to justify government legislation in their favour. Unfortunately, too many people behaved like "les dupes" (dupes) and accepted these arguments at face value. See "Bastiat on Enlightening the 'Dupes' about the Nature of Plunder," in the Introduction to CW3, pp. lv-lviii.
24 See his economic sophism ES2 11 "The Utopian" in which Bastiat is temporarily put in charge of the government and is able to introduce all his proposed reforms. CW3, pp. 187-98.
25 During the first few months of the revolution after February 1848, Bastiat's friend and colleague Michel Chevalier was sacked from his Chair in Political Economy at the University of Paris because the incoming government disagreed with his free market and free trade ideas. His chair was broken up into 5 separate positions which would teach "applied economics" more useful to bureaucrats and technocrats. After considerable lobbying on his behalf by the Political Economy Society, Chevalier was reinstated in November 1848.
26 (Bastiat's note) The General Council for manufacturing, agriculture and commerce. (Session on 6 May 1850.)
27 In early 1850 there were plans to reduce the suffrage by requiring more strict residency requirements for would-be voters. Bastiat had considerable experience with elections as he was elected twice to represent his district of Les Landes. He was elected to the Constituent Assembly in the election of 23 April 1848 to represent the département of Les Landes. He served on the Comité des finances (Finance Committee) and was elected 8 times as vice-president of the committee (such was the regard of his colleagues for his economic knowledge) and he made periodic reports to the Chamber on Finance Committee matters. In the election of 13-14 May 1849 for the Legislative Assembly 6.7 million men voted (out of 9.9 million registered voters). Bastiat was elected to the Legislative Assembly again to represent the département of Les Landes.
28 In addition to his better known "economic sophisms" Bastiat also wrote several "political sophisms" on voting, elections, the nature of political representation, and the state. See, "Bastiat's Political Sophisms," in the Introduction to CW3, pp. lxvii-lxviii.
29 Indirect taxes were levied on drink, salt, sugar, tobacco, gun powder, and other goods. According to the budget for 1848 the government raised fr. 307.9 million in indirect taxes which represented 22.4% of its total revenue of fr. 1.37 billion. Bastiat's idea of an ideal tax system was to replace indirect taxes which fell most heavily on the poor with low income tax on everybody and a 5% "fiscal" tariff rate. He thought indirect taxes were a a "trick" or a "hoax" on the poor. See "A Hoax," Jacques Bonhomme, 15-18 June 1848), in CW4 (forthcoming).
30 Auguste Pierre Mimerel de Roubaix (1786-1872) was a textile manufacturer and politician from Roubaix who was a vigorous advocate of protectionism. In October 1846 he was instrumental in organizing the regional committees to form a national body based in Paris known as the "Association pour la défense du travail national" (Association for the Defense of National Employment). The latter was formed to oppose the French Free Trade Association, in which Bastiat played a crucial role, which became a national body on 10 May, 1846.
31 The National Assembly sat in the Palais Bourbon. It was built by Louis XIV in 1722 for his daughter Louise Françoise. It is located on the Quai d'Orsay in Paris. It was confiscated during the revolution (1791) and has been the location for the Chamber of Deputies since the Restoration. Bastiat uses this term in a mocking way.
32 Here Bastiat is getting back at the socialists who agitated for state support for their plans "to organise" French society along socialist lines, as argued by Louis Blanc in Organisation du travail (1839) which he discusses below. The words "Association" and "Organisation" were two key words used by socialists like Victor Considerant and Louis Blanc to describe how they would like to see industry and labor organized in a socialist system: the "organisation of labour" by the state into "national or social workshops," and the association of workers into cooperative living and working arrangements as opposed to private property, wages, and exchanges on the free market. Bastiat frequently argued that the economists also believed in "association" and "organization" as long as it was done voluntarily. Here he is arguing that the socialists' schemes will in fact lead to "disorganisation" on a massive scale.
33 In the U.S., in 1832 the Protectionist Tariff imposed an average rate of 33%; the Compromise Tariff of 1833 intended to lower rates to a flat 20%; and the 1846 Tariff created 4 tariff schedules for goods which imposed 100%, 40%, 30%, or 20% depending upon the particular kind of good. The average rate in the U.S. in 1849 was about 23% and in 1890 about 40%. France had an average rate of about 12% in 1836 and it was still around 11% in 1848 before it began to drop steadily reaching 5% in 1857, then spiking briefly to 7.5% in 1858, and dropping steadily again to about 1.5% in 1870 (the Anglo-French Free Trade Treaty was signed in 1860), before again moving steadily upwards to about 8% in 1893. In 1849 the rates were about 6% in Britain and 10% in France.
34 Charles Forbes, comte de Montalembert (1810-70) was a liberal Catholic who supported a free, Catholic alternative to the state monopoly of eduction and was arrested and fined for his activities. During the 1848 revolution he was elected to the Constituent Assembly as a moderate republican. He is known for his work Des devoirs des Catholiques sur la question de la liberté de l'enseignement (1843).
35 Possibly Pierre Carlier (1794-1858) who was the Chief of Police during the revolutions of 1830 and 1848. He was made Prefect of the Police in Paris in November 1849 and in February 1850 ordered the uprooting of all the liberty trees which had been planed during the Revolution of 1848. He helped Louis Napoléon plan his coup d'état in December 1851.
36 Charles Dupin (1784-1873) was a naval engineer who later became Minister of the Navy. He taught mathematics at the Conservatoire national des arts et métiers and also ran courses for ordinary working people. He served in the Constituent and then the National Assemblies during the Second Republic. Bastiat may be referring to a passage in Dupin's Conseils adressés aux ouvriers parisiens (Paris: Firmin-Didot frères, 1840), pp. 5-6. Here he called the socialist ideal of equality "an equality in name only, a deceitful and bestial equality where you count workers by the number of their heads and not by the number of their minds; where you pay according to the number of their arms and not the strength of their arms; where you count for nothing the dexterity of the hands used by the skilled worker, nor for the dexterity of the ideas used by the skilled industrialist."
37 By "extra-legal" Bastiat means "plunder which takes place outside the law", that is without the sanction of the law.
38 Bastiat's use of the term "la spoliation extra-légale" (extra-legal plunder) appeared much later than "legal plunder," for the first time in the article "Justice et fraternité" (Justice and Fraternity), JDE, 15 June 1848. See CW2, pp. 60-81.
39 Bastiat uses the term "l'appareil" (apparatus) to describe two different sets of bureaucratic and social structures. The "apparatus of the state" (the legal system and the military) and the "apparatus of commerce and exchange." See "The 'Apparatus' or Structure of Exchange" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
40 He gives two examples of how those seeking benefits from the state at taxpayer or consumer expence should really use force with their own hands instead of hiding behind "the great law factory" to do their dirty work for them. See the story of M. Prohibant, an iron manufacturer, using his own coercive force to block iron imports from Belgium instead of going to the Chamber, in VII. "Trade Restrictions" in WSWNS, CW3, p. 428. And another similar story "Plunder and the Law" (May 1850), in CW2, p. 269.
41 Bastiat is referring to an argument commonly used by protectionists to justify their privileges by arguing that the benefits they received from tariff protection will inevitably "trickle down" to other workers in society as those protected individuals spend their wages and profits. He called this "le sophisme des ricochets" (the sophism of the ricochet effect). See "The Sophism Bastiat never wrote: The Sophism of the Ricochet Effect" in Further Aspects of Bastiat's Thought, in CW3, pp. 457-61.
42 A major political battle was fought between the economists and the socialists over the summer of 1848 over the idea of "le droit au travail" (the right to a job). The right to a job (paid for by tax payers if need be) was a key platform of the socialists like Louis Blanc who tried to implement it in the national Workshops he set up in the wake of the February Revolution. Bastiat opposed this vigorously in the Chamber as the Vice-president of the Finance Committee. The free market politicians in the Chamber tried to stop the socialists inserting a clause in the new constitution to this effect over the summer of 1848, and they were eventually successful. Their preferred alternative was "la liberté du travail" (the liberty of working). See "The Right to Work vs. the Right or Freedom of Working," in Bastiat's Political Writings: Anecdotes and Reflections, in CW1, pp. 410-12.
43 Another political battle was fought between Bastiat and the anarchist socialist Proudhon who tried to get the Provisional Government to set up "Peoples Banks" which would issue free credit to workers to set up their own businesses. The two had an extended debate on this question at the end of 1849 which was published as Gratuité du crédit. Discussion entre M. Fr. Bastiat et M. Proudhon (Free Credit. A Discussion between M. Fr. Bastiat and M. Proudhon) (Paris: Guillaumin, 1850) which will appear in CW4 (forthcoming).
44 Among the many descriptions of socialism Bastiat gave this one is apt: "In brief, socialism has come to put into practice the theory of plunder." In "Spoliation et loi" (Plunder and Law) JDE, 15 May 1850. See CW2, p. 273. In the last two years of his life wrote a dozen anti-socialist pamphlets, the last of which was "The Law" (June 1850). His most extended discussions of socialism can be found in Free Credit (1850) in CW4 (forthcoming), Baccalaureate and Socialism (1850) in CW2, pp. 185-234, and "Plunder and Law" (May 1850) in CW2, pp. 266-76. See "Bastiat's Anti-socialist Pamphlets, or "Mister Bastiat's Little Pamphlets" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
45 In his first book on Cobden and the League (1845) he realised that the "war of ideas," in this case against protectionism, would be a long one. He carefully studied the strategies used by the English Anti-Corn Law League and thought about how to apply them to the conditions in France. He believed radical change would only occur "par une révolution lente et pénible, paisiblement accomplie dans les esprits" (by means of a slow and difficult revolution, (which will be) peacefully achieved in the minds (of men)). In Cobden and the League, CW6 (forthcoming). He also realised that the same could be said about the war of ideas against socialism and communism which replaced the war against protectionism after the February 1848 Revolution.
46 In his pamphlet "Protectionism and Communism" (Jan. 1849) he accused the protectionists of using the same methods to get benefits from the state as the communists planned to do; and in Baccalaureate and Socialism (early 1850) he accused the conservatives who wanted to keep the old education system based on the teaching of Latin of spreading the values of slave owners and plunderers which encouraged the youth of France to move closer to communist ideology. See "Protectionism and Communism" (Jan. 1849), in CW2, pp. 235-65, and Baccalaureate and Socialism (early 1850), in CW2, pp. 185-234.
47 During the June Days uprising in 1848 (23-26 June) the Constituent Assembly authorised General Cavaignac to use the army to crush the rebellion which had sprung up to oppose the closing of Blanc's National Workshops. Artillery was used to break up the hundreds of street barricades which had been erected throughout Paris resulting in the deaths of hundreds perhaps thousands of people. He then declared martial law which remained in effect until October. Bastiat said in a letter he was an eye-witness to this activity. See Letter 104 "To Julie Marsan" (29 June, 1848), CW1, pp. 156-57.
48 In a speech to the Legislative Assembly in May 1850 he stated: "Je vous demande, Messieurs, si, en présence de ce progrès flagrant du socialisme, vous voulez rester impuissants et silencieux, si vous ne voulez apporter aucun remède au progrès du mal tel que je viens de vous le signaler par cet exemple éclatant, je le répète et je le constate, incontesté. Eh bien, non! Quant à moi, je soutiens que vous ne le devez pas, et je suis sûr que vous ne le voudrez pas. Il faut donc faire, à ce mal qui croît tous les jours, la guerre la plus énergique, la guerre que permet la Constitution, par tous les moyens que ne réprouvent pas la justice, l'honneur et les lois qui nous gouvernent." See "Discours sur la Réforme électorale" (Assemblé Nationale Législative. Séance du 22 mai 1850), pp. 427-53, in Oeuvres de M. le Comte de Montalembert (Paris: Lecoffre, 1860), Volume 3, p. 440.
49 See Bastiat's speech on ""On the Allocation of the Land Tax in the Department of Les Landes" (July 1844), CW4 (forthcoming) to his Local General Council on how local workers might turn to revolution if they did not get political representation and a more equal tax burden.
50 He had begun making the distinction between "la Spoliation partielle" (partial plunder) and "la Spoliation universelle" (universal plunder) only the previous month in his article "Plunder and Law," JDE, 15 May 1850, in CW2, pp. 266-76.
51 By this he meant a political system dominated by a very limited franchise, or what he called "la classe électorale." See note above.
52 With the re-introduction of universal manhood in the Second Republic in February 1848. Elsewhere he talked about "reciprocal" or "mutual" plunder or theft, as in his essay "The State" (September 1848) where he warned of the danger of the coercive power of the state being use as "un instrument d'oppression et de spoliation réciproque" (an instrument of reciprocal oppression and plunder), CW2, p. 104.
53 This is a reference to his fast failing health. His throat condition (possibly cancer not tuberculosis) would kill him six months after this essay was written (Christmas Eve1850).
54 The phrase "la plus illogique perturbation sociale" is his second use in this essay of the word "la perturbation" (disturbance or disruption) which is caused by government intervention. For some reason both FEE and Wells translated this as "perversion." See note above on "Disturbing Factors."
55 Alphonse de Lamartine (1790–1869) was a poet and statesman and as an immensely popular romantic poet, he used his talent to promote liberal ideas. Lamartine was elected Deputy representing Nord (1833-37), Saône et Loire (1837-Feb. 1848), Bouches-du-Rhône (April 1848-May 1849), and Saône et Loire (July 1849- Dec. 1851). During the campaign for free trade organised by the French Free Trade Association between 1846 and 1847 Lamartine often spoke at their large public meetings and was a big draw card. He was a member of the Provisional Government in February 1848 (offering Bastiat a position in the government, which he declined) and Minister of Foreign Affairs in June 1848. After he lost the presidential elections of December 1848 against Louis-Napoléon, he gradually retired from political life and went back to writing.
56 We do not have this letter, but there a similar one, Letter 25 To Lamartine (7 March 1845), in CW1, p. 56-57.Bastiat wrote two public letters to Lamartine criticising him his for his stand on the right to job (which was a socialist demand) and price controls on food during periods of food shortage. See "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job," JDE , February 1845, and "Second Letter to M. de Lamartine (on price controls on food)," JDE , Oct. 1846. Both in CW4 (forthcoming).
57 Bastiat discusses his views on fraternity and how they differed from that of the socialists in more detail in two of his pamphlets published in June 1848: "Justice and Fraternity" (JDE, 15 June 1848), in CW2, pp. 60-81; and "Individualism and Fraternity" (c. June 1848), in CW2, pp. 82-92.
58 In early 1846 Bastiat decided that it was time to use "brutal" (brutal, violent, rough, harsh) language instead of euphemisms in the battle against the protectionists. He used the word "theft" to describe the policy of giving subsidies to industry at taxpayer expence, and gave a similar apology to the reader as he does here. See ES2 9 "Theft by Subsidy" (JDE, January 1846), in CW3, p. 170.
59 Bastiat devoted a section at the end of Chap. X "Private Property and Community" in EH1 to attacking communism. He defined this as a new kind of plunder, "la spoliation systématique" (systematic plunder), as "Communism is based on systematic plunder, since it consists in handing over to one person the labor of another with no compensation." During 1850 he wrote two pamphlets pointing out to conservatives that their policies were "communist" in their effects: to conservative supporters of teaching Latin in the schools he argued in Baccalaureate and Socialism (early 1850) (CW2, pp. 185-234) that "classical conventionalism" was preparing the minds of young people for socialism or worse; and to conservative supporters of protectionism in "Protectionism and Communism" (Jan. 1849) (CW2, pp. 235-65) that they were using the same methods to benefit themselves as the socialists intended to do for the working class.
60 (Bastiat's note) If in France protection were granted only to a single class, for example to ironmasters, it would be so absurdly plunderous that it would be impossible to maintain it. For this reason, we see all the protected industries forming leagues, making common cause, and even recruiting each other to the extent that they appear to be embracing the whole of national labor. They feel instinctively that plunder is concealed by being generalized.
61 Bastiat regarded "former acts of plunder carried out by means of the law" as classic examples of the "disturbing factors" which upset the free market's tendency to produce "harmonious" outcomes.
62 Bastiat says something similar about communism towards the end of EH Chap VIII "Private Property and Community."
63 Setting up a nation-wide system of "social workshops" which would replace privately owned and profit making factories and workshops which paid workers wages was a dream of the socialist Louis Blanc. In the first few months after the February Revolution he seized control of the Luxembourg Palace and ran the "National Workshops" from there until the Constituent Assembly withdrew funding and closed them down. Bastiat, as Vice-President of the Finance Committee, played a major role in bringing this about. This act triggered the widespread violent protest known as the "June Days."
64 These were all slogans used by the socialists in their political campaigns.
65 In the very first chapter of Economic Harmonies Bastiat lays out his distinction between "Natural and Artificial Organisation," namely that the first kind is based on voluntary agreements between individuals and the latter is based on coercion, usually by means of the state.
66 Bastiat says "Ce n'est pas la solidarité providentielle, mais la solidarité artificielle, qui n'est qu'un déplacement injuste de Responsabilité." which FEE translated as "We repudiate the artificial unity that does nothing more than deprive persons of individual responsibility. We do not repudiate the natural unity of mankind under Providence." This misses the reference to "providential solidarity" as well as to the "displacement of responsibility" caused by coercion by the state.
67 Scattered throughout Bastiat's writings are many intriguing statements which prefigure some key ideas of the Austrian School of economic thought, such as the "le principe d'action" (the principle of action) which is used here. He also uses the phrases "un être actif" (an acting or active being), "un agent" (an agent, or actor), "un agent intelligent" (an intelligent or thinking actor), and to their behaviour in the economic world as "l'action humaine" (human action) or "l'action de l'homme" (the action of human beings, or human action), and to the guiding principle behind it all as "le principe actif" or "le principe d'activité" (the principle of action). See "Human Action" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
68 The question whether mankind's behavior was like that of a plant or a creature capable of reason was crucial in Bastiat's rethinking of Malthus's theory of population. He thought it was the latter. See his article "De la population," JDE, October 1846 (in CW4 forthcoming) which was extensively rewritten and became Chapter 16 on Population in the 1851 expanded edition of Economic Harmonies.
69 Bastiat liked to use the analogy of society being a kind of "mécanisme social" (social mechanism) with its own wheels, springs, and movements (les rouages, les ressorts, and les mobiles). However, unlike the socialists he thought these wheels and cogs were living, acting, and choosing individuals who needed no "mechanic," "organizer," or "legislator" to make them run. See "The Social Mechanism and its Driving Force" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
70 Here he is making fun of the socialists' penchant for naming all the complex hierarchies and subdivisions of their proposed planned societies, especially Fourier. For example, his "serial" or "stepped" method of arranging his categories under the rubric of "Inter, Citer, Ulter, Anter, Poster, Avant, and Final". See, Charles Fourier, La fausse industrie morcelée, répugnante, mensongère, et l'antidote, l'industrie naturelle, combinée, attrayante, véridique, donnant quadruple produit (Paris: Bossange père, 1835), p. 393.
71 The Commune was a local administrative district.
72 The socialist Victor Considerant gave a speech in the Chamber on 13 April, 1849 in which he reiterated his demand that the government give his followers 4,000 acres of land and fund an experimental socialist community near Paris in order to demonstrate the viability and even the superiority of socialism. Bastiat immediately responded by saying that a better option would be to set up competing experimental communities, including a laissez-faire free trade zone with minimal taxes and regulations, to show which form of society worked best.
73 In fact, Bastiat is speaking from personal experience as he tried to introduce a number of reforms in the way his own tenant farmers operated their farms. This was not successful. See "Considérations sur le métayage" (Thoughts on Sharecropping), JDE, Feb. 1846, in CW4 (forthcoming).
74 Bastiat was very hostile to a classical education based upon learning Latin as he believed the Roman ruling elite were warriors and plunderers whose writings mislead the French youth who studied them and prepared them intellectually to accept socialist ideas. A good example of these sentiments can be found in Baccalaureate and Socialism (early 1850), CW2, pp. 185-234. His own education was at an experimental private school where he learned modern languages, music, and poetry.
75 This insight is central to the modern Public Choice theory of economics which argues that politicians and bureaucrats also pursue their own interests.
76 The French word "on" has no real equivalent in English and is translated by "one," "we," "you," "they," or "people," depending on the context. We have chosen "one" in this context.
77 Jacques-Bénigne Bossuet (1627-1704) was Bishop of Meaux, a historian, court priest to King Louis XIV, and tutor to the dauphin (son of Louis XIV). He was a noted orator and writer whose sermons and orations were widely studied as models of French style by generations of French schoolchildren. In politics he was an intransigent Gallican Catholic, an opponent of Protestantism, and a supporter of the idea of the divine right of kings. He wrote a multi-volume universal history, Discours sur l'histoire universelle (1681).
78 In brackets are Bastiat's comments on the quote.
79 Jacques Bénigne Bossuet, Discours sur l'histoire universelle, publié avec la chronologie des Bénédictines et celles de Bossuet et avec notes par A. Olleris (Paris: Hachette, 1847), Part III. "Les empires," Chap. III , pp. 417, 418, 422, 424.
80 Bossuet, Discours sur l'histoire universelle, pp. 430-31.
81 Bossuet, Discours sur l'histoire universelle, p. 447.
82 Bossuet, Discours sur l'histoire universelle, p. 451.
83 François Fénelon (1651-1715) was the Archbishop of Cambrai, a theologian, poet, writer, and tutor to the young duke of Burgundy, the grandson of Louis XIV. After the revocation of the Edict of Nantes (which had granted toleration for Protestants in France), Fénelon was one of several high-ranking clergy sent to convert recalcitrant Protestants to Catholicism. He wrote a collection called Dialogue des morts et fables (1700), and Les Aventures de Télémaque (1699), which was a thinly veiled satire of the reign of Louis XIV and a critique of the notion of the divine right of kings. For example, in the latter the hero Telemachus visits Idomeneus, King of Salente and asks him very pointed and embarrassing questions about the nature of good rulership.
84 The Adventures of Telemachus is the story of Telemachus's search for his father in the company of Mentor, who instructs the young Telemachus on the virtues required by a prince. They come across the fictitious city of Salentum (Salente in French), which has been corrupted by luxury and military despotism. Only the dictatorship of an enlightened legislator could reform Salentum according to Fénelon. The complete works of Fénelon were published in multi-volume editions in 1830 and again in 1848-52: Oeuvres complètes de Fénelon.
85 Fénelon, Les aventures de Télémaque, fils d'Ulysse (A. Gand, 1819), Vol. 1, pp. 77-78.
86 Fénelon, Les aventures de Télémaque, fils d'Ulysse (A. Gand, 1819), Vol. 1, pp. 79-80.
87 Fénelon, Les aventures de Télémaque, fils d'Ulysse (A. Gand, 1819), Vol. 1, pp. 148-49.
88 Olivier de Serres (1539-1619) was a pioneering French agronomist who is best known for introducing the growing of silk to France. His best-known work is Le Théâtre d'agriculture et mésnage des champs (1600).
89 Charles Louis de Secondat, baron de Montesquieu (1689-1755) was one of the most influential legal theorists and political philosophers of the eighteenth century. He trained as a lawyer and practiced in Bordeaux before going to Paris, where he attended an important enlightened salon. His ideas about the separation of powers and checks on the power of the executive had a profound impact on the architects of the American constitution. His most influential works are L'Esprit des lois (1748), Les Lettres persanes (1721), and Considérations sur les causes de la grandeur des Romains et de leur décadence (1732).
90 Montesquieu, L'Esprit des lois in Œuvres de Montesquieu. Vol. 1 (Paris: A. Belin, 1817), Livre V, Chap. VI "Comment les lois doivent entretenir la frugalité dans la démocratie," p. 39.
91 Montesquieu, L'Esprit des lois, p. 38.
92 William Penn (1644-1718) was an English Quaker, writer, and founder of the State of Pennsylvania.
93 Between 1609 and their expulsion from Latin America in 1767, the Jesuits organized among the native people of Paraguay a community based on Christian and communist principles. The Jesuits aim was to Christianize the native people, organize the social and economic life of the communities, and create "the kingdom of God on earth." Bastiat rejected the idea of these communities, just like he did with the contemporary attempts to create utopian socialist communities in Europe and America in the 1830s and 1840s, on the grounds that the communities owned property, in particular land, in common, sought an equality of ownership, and strictly regulated the free market.
94 Montesquieu, L'Esprit des lois, Chap. VI "De quelques institutions des Grecs," pp. 29-31.
95 Said by Alceste to Philinte in Moliére's play "Le Misanthrope," Act I, sc. II in Oeuvres de J. B. Poquelin de Molière (Paris: Th. Dabo, 1820), Vol. 3, p. 173.
96 Jean-Jacques Rousseau (1712-78) was a Swiss philosopher and novelist who was an important figure in the Enlightenment. In his novels and discourses he claimed that civilization had weakened the natural liberty of mankind and that a truly free society would be the expression of the "general will" of all members of that society. He influenced later thinkers on both ends of the political spectrum. Bastiat often criticized Rousseau as he thought he was the inspiration behind much of the interventionist legislation introduction by the revolutionaries during the 1790s (especially Robespierre) and then later in the 1848 Revolution. He is best known for his book Du Contrat Social (The Social Contract) (1761); he was also the author of, among other works, the Discours sur l'origine et les fondements de l'inégalité parmi les hommes (Discourse on Inequality) (1755), the autobiographical Les Confessions (1783), and the novels Julie, ou la nouvelle Héloïse (1761) and Emile, ou l'education (1762).
97 Rousseau, Du contrat social, in Oeuvres complètes de J.-J. Rousseau; Nouvelle édition, avec des Notes historiques et critiques; augmentée d'un Appendice aux Confessions, par M. Musset-Pathay. Vol. IX. Philosophie. Politique.- Tome 1. (Bruxelles: Th. Lejeune, 1827), Livre II, Chap. VII. "Du Législateur," pp. 119-20.
98 The edition of Spirit of the Laws that Bastiat might have had access to was Oeuvres de Montesquieu, avec éloges, analyses, commentaires, remarques, notes, réfutations, immitations, par MM. Destut de Tracy, Villemain (Paris, 1827), in eight volumes. The editor was Victor Destutt de Tracy the son of Antoine Destutt de Tracy, who had written an extensive commentary on the Spirit of the Laws for Thomas Jefferson who had it published in 1811, A Commentary and Review of Montesquieu's "Spirit of Laws": To which are annexed, Observations on the Thirty First Book by the late M. Condorcet; and Two Letters of Helvetius, on the Merits of the same Work.
99 Rousseau, Du contrat social, Livre II. Chap. XI "Des diver système de Législation," pp. 135-38.
100 Rousseau, Du contrat social, Livre II, Chap. VII. "Du Législateur," p. 120.
101 Guillaume-Thomas-François, abbé Raynal (1713-96) was an enlightened historian who wrote on the Dutch Stadholderate and the English Parliament. His most famous work was the eight-volume Histoire philosophique et politique, des établissements et du commerce des européens dans les deux Indes (1770), which went through some thirty editions by 1789, was put on the Index in 1774, and publicly burned. The book was found objectionable because of its treatment of religion and opposition to colonialism and its advocacy of the popular right to consent to taxation and to revolt, among other things. Its sometimes incendiary treatment of the slave trade became canonical in the debate over abolition of slavery, of which it did much to spur.
102 Raynal, Histoire philosophique et politique des établissemens et du commerce des Européens dans le deux Indes. Nouvelle édition (Paris: Amable Costes, 1820), T. 9, hap. XXX A quelle degré la population s'est-elle élevée dans l'Amérique septentrionale, pp. 230-33.
103 Gabriel Bonnot, abbé de Mably (1709–95) was an enormously popular writer on political, legal, and economic matters. He trained as a Jesuit and briefly entered religious orders. Mably was an admirer of Plato and Sparta, both of which he regarded as a model for political and economic institutions. In economics, Mably was an advocate for ending private property and for the redistribution of property by the state in order to achieve equal ownership for all, thus qualifying him as an early communist thinker. Mably was best known for his work Entretiens de Phocion, sur le rapport de la morale avec la politique (1763); and the Observations sur le gouvenement et les lois des États-unis d'Amérique (1784).
104 Gabriel Bonnot de Mably, "Droits et devoirs du Citoyen," Lettre VIII, in Oeuvres complètes (Lyon: J.B. Delamolliere & Falque, 1796), , Volume 11, pp. 465-66.
105 The Abbé de Condillac (1714-80) was a priest, philosopher, economist, and member of the Académie française. Condillac was an advocate of the ideas of John Locke and a friend of the encyclopedist Denis Diderot. In his Traité des sensations (1754), Condillac claims that all attributes of the mind, such as judgment, reason, and even will, derive from sensations. His book Le Commerce et le gouvernement, considérés relativement l'un a l'autre (1776) appeared in the same year as Adam Smith's Wealth of Nations.
106 Etienne Bonnot de Condillac, Oeuvres complètes (Paris: Lecointe et Durey, 1822), vol. XV, Étude de l'histoire et logique, Chap. II "Des vérités fondamentales auxquelles il faut s'attacher en étudiant l'histoire," pp. 24-25.
107 Condillac, Oeuvres complètes, vol. XV, Chap. III Seconde vérité, pp. 26-29.
108 Compare this passage to one in his "Draft Preface for the Economic Harmonies" (late 1847) CW1, p. 318. It is the form of an ironic letter to himself: "Like you I love all forms of freedom; and among these, the one that is the most universally useful to mankind, the one you enjoy at each moment of the day and in all of life's circumstances, is the freedom to work and to trade. I know that making things one's own is the fulcrum of society and even of human life. I know that trade is intrinsic to property and that to restrict the one is to shake the foundations of the other. I approve of your devoting yourself to the defense of this freedom whose triumph will inevitably usher in the reign of international justice and consequently the extinction of hatred, prejudices between one people and another, and the wars that come in their wake." </titles/2393#Bastiat_1573-01_1606>.
109 Rousseau, Du contrat social, Livre II, Chap. VII "Du Législateur," p. 123.
110 Louis Antoine de Saint-Just (1767-94) was a close friend and colleague of Robespierre. Saint-Just suffered the same fate as did Robespierre, execution by guillotine in July 1794. He served in the National Guard and was elected to the Legislative Assembly (but denied his seat because of his young age), and then to the Convention, where he joined the Montagnard faction. Saint-Just became a member of the Committee of Public Safety in 1793 and was active in military affairs on the Committee's behalf. He was much influenced by Rousseau and supported the creation of an austere and egalitarian republic.
111 Saint-Just, "Discours sur la Constitution à donner à la France (24 avril, 1793), Œuvres de Saint-Just, represéntant du peuple à la Convention nationale (Paris: Prévot, 1834), p. 74.
112 Maximilien de Robespierre (1758-94) was a lawyer and one of the best-known figures of the French Revolution. In the National Convention he was an active member of the Société des amis de la constitution (Society of Friends of the Constitution) (the Jacobin Club) and became leader of the Montagnard faction. He was a fierce opponent of the liberal Gironde faction, and in his position as leader of the Committee of Public Safety (1793) he had arrested and executed many members of this group during the Terror. Eventually the Terror turned on its own supporters and Robespierre was himself executed in July 1794. In his political thinking, Robespierre was strongly influenced by the writings of Rousseau, and in 1793 he supported a new declaration of the rights of man that subordinated private property to the needs of "social utility."
113 Robespierre, "Rapport fait par Robespierre au nom du Comité de salut public sur les principes du gouvernement révolutionnaire (Convention Nationale, Séance du 25 décembre 1793) in Œuvres de Maximilien Robespierre: avec une notice historique, des notes et des commentaires, par Laponneraye (Paris: Chez l'éditeur, 1840), Vol. 3, p. 512.
114 Jean Billaud-Varennes (1756-1839) was a lawyer, a Montagnard member of the Convention, a leading orator in the Jacobin Club, and a member of the Committee of Public Safety. He was at first a supporter of Robespierre, then an opponent who contributed to his downfall and execution.
115 Convention nationale. Rapport fait a la Convention nationale, au nom du Comité de salut public, par Billaud-Varenne, dans la séance du 1er floréal, l'an 2e de la République une et indivisible ; sur la théorie du gouvernement démocratique, et sa vigueur utile pour contenir l'ambition, et pour tempérer l'essor de l'esprit militaire; sur le but politique de la guerre actuelle; et sur la nécessité d'inspirer l'amour des vertus civile par des fêtes publiques et des institutions morales (de l'Imprimerie de Charpentier, 1794), p. 4.
116 Louis-Michel Lepeletier, marquis de Saint-Fargeau (1760-1793) was a Councillor at the Parlement de Paris before the Revolution and then President of the National Constituent Assembly in 1790. He was murdered by an ex-Royal Guard for having voted for King Louis XVI's execution.
117 Michel Lepeletier, "Plan d'Éducation nationale" in Oeuvres de Michel Lepeletier Saint-Fargeau (Bruxelles: Arnold Lacrosse, 1826), p. 268.
118 Robespierre, Rapport sur les principes de morale politique qui doivent guider la Convention nationale dans l'administration intérieure de la République, fait par Robespierre au nom du Comité de Salut Public (Convention Nationale, Séance du 5 février 1794), p. 542.
119 The National Convention was a single chamber which ruled France between September 1792 and October 1795. It was the first republican government after the execution of King Louis XVI.
120 Napoléon Bonaparte (1769–1821) was born in Corsica and became a French general, first consul of France (1799–1804), and emperor of the French (1804–15). Although Napoléon's conquests of Europe were ultimately unsuccessful (Spain 1808; Russia 1812; Waterloo, Belgium, 1815), he dramatically altered the face of Europe economically, politically, and legally (the Civil Code of 1804). Many European countries suffered huge economic losses from Napoléon's occupation and the looting of museums and churches. Napoléon introduced a new form of economic warfare, the "continental system" (the Berlin Decree of 21 November 1806), which was designed to cripple Britain by denying its goods access to the European market. Napoléon did not seem to have a well thought out economic theory but his scattered remarks recorded in his Mémoires de Napoléon Bonaparte: manuscrit venu de Sainte-Hélène (Paris: Baudouin, 1821) show him to be an economic nationalist and strong protectionist.
121 These are all French or English socialists: Étienne-Gabriel Morelly (ca. 1717-78), François Babeuf (alias "Gracchus") (1760-97), Robert Owen (1771-1858), Henri Saint-Simon (1760-1825), and Charles Fourier (1772-1837)
122 Louis Blanc (1811-1882) was a journalist and historian who was active in the socialist movement. Blanc founded the journal Revue du progrès and published therein articles that later became the influential pamphlet L'Organisation du travail (1839). During the 1848 revolution he became a member of the provisional government, headed the National Workshops, and debated Adolphe Thiers on the merits of the right to work in Le socialisme; droit au travail, réponse à M. Thiers (1848). When his supporters invaded the Chamber of Deputies in May 1848 to begin a coup d'état in order to save the national Workshops from closing, they carried him around the room on their shoulders. He was arrested, lost his parliamentary immunity, and was forced into exile in England. Bastiat was one of the few Deputies to oppose the Chamber's treatment of Blanc.
123 Louis Blanc, Organisation du travail. 4. ed. (Paris: Cauville freres, 1845). First edition 1839.
124 Blanc, Organisation du travail, p. 126.
125 Blanc, Organisation du travail, pp. 125-26.
126 Blanc, Organisation du travail, p. xxiv.
127 The block of left-wing Deputies called themselves the "dém-socs" short for "les démocrates socialistes" (socialist democrats, or social democrats).
128 Victor Prosper Considerant (1808-93) was a follower of the socialist Charles Fourier and edited the most successful Fourierist magazine La Démocratie pacifiste (1843-1851). He was elected Deputy to represent Loiret in April 1848 and Paris in May 1849. The Fourierists advocated a utopian, communistic system for the reorganization of society. The population was to be grouped in "phalansteries"of about 1,800 persons, who would live together as one family and hold property and work in common. Considerant on a couple of occasions tried to set up state funded experimental communities based upon Fourierist principles but was unsuccessful. He was also an advocate of the "right to work" (the right to a job), an idea which the Economists opposed.
129 See for example: "Elle (La Révolution) a livré au laissez-faire le plus absolu, à la concurrence la plus anarchique, à la guerre la plus aveugle, et, par suite, au Monopole des grands capitaux l'Atelier social et économique tout entier, c'est-à-dire tout le domaine de la Production et de la Répartition des richesses" (It (the Revolution) has handed over to the most absolute form of laissez-faire, to the most anarchical form of competition, to the the most blind form of war, and as a consequence, to the Monopoly of big capital, the entire social and economic Workshop, that is to say the entire domain of the production and distribution of wealth) in Victor Considérant, Principes du socialisme: manifeste de la démocratie au XIXe siècle (Paris: Librairie phalansterienne, 1847), p. 4.
130 Blanc, Organisation du travail, p. 6.
131 Blanc, Organisation du travail, p. 60-61.
132 Adolphe Thiers (1797-1877) was a conservative liberal lawyer, historian, politician, and journalist. During the July Monarchy he was briefly Minister for Public Works (1832-34), Minister of the Interior (1832, 1834-36), and Prime Minister and Minister for Foreign Affairs (1840). During the Revolution he wrote a book defending private property from a conservative point of view, De la propriété (1848) which was harshly criticised by Gustave de Molinari for being inadequate.
133 When proposals to reform the education system came up for discussion in the Chamber in early 1850 Bastiat was unable to speak in the Chamber because of his failing voice, so he published his speech as a pamphlet and circulated it among the Deputies. It it he discusses Thiers' plans in some detail. See, Baccalaureate and Socialism, in CW2, pp. 185-234.
134 The French educational system was placed under the administrative control of the national University by a series of decrees issued by Napoleon in May 1806 and March 1808. These granted the University the power to set the number of schools, the level at which private schools were taxed, the curriculum for entry into professional schools (the Baccalaureate examination), pay rates for teachers and inspectors, and so on.
135 Between May 1848 and July 1850 Bastiat wrote a series of 12 anti-socialist pamphlets, or what the Guillaumin publishing firm marketed in their Catalog as the "Petits pamphlets de M. Bastiat" (Mister Bastiat's Little Pamphlets), which included several for which Bastiat has become justly famous such as "The State" (Sept. 1848), The Law (July 1850), and What is Seen and What is Not Seen (July 1850). See, "Bastiat's Anti-Socialist Pamphlets" in Further Aspects of Bastiat's Thought, CW4 (forthcoming).
136 Another Public Choice insight by Bastiat.
137 Bastiat might have had in mind the practice of shepherds in his home Department of Les Landes to walk on stilts across the heathland, thus literally putting them far above the level of the sheep they were herding.
138 He makes a similar point in his speech to the Friends of Peace Congress held in Paris in August 1849 that high taxes on the poor causes further economic misery which is an important factor leading to to revolution. See, "Bastiat's Speech on 'Disarmament and Taxes' (August 1849)," in Addendum: Additional Material by Bastiat, CW3, p. 527.
139 He chastises the poet and statesman Lamartine in two public letters for having betrayed the classical liberal cause in his statements: "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job," JDE , February 1845, and "Second Letter to M. de Lamartine (on price controls on food)," JDE , Oct. 1846. Both in CW4 (forthcoming).
140 "Déclaration des principes" (21 octobre 1847), (which originally appeared in le Bien public), republished in Alphonse de Lamartine, La politique de Lamartine, choix de discours et écrits politiques: précédé d'une étude sur la vie politique de Lamartine (Paris: Hachette & Cie., 1878), vol. 2, pp. 273-82 . Quote on p. 280.
141 (Note by Bastiat): Political economy precedes public policy. The former says whether (or not) human interests are naturally harmonious or antagonistic; this is what the latter ought to know before determining the functions of the government.
142 Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854). Saint Cricq was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, Minister of Trade and Colonies (1828-29), and then appointed to the Peerage (1833).
143 Bastiat was a Justice of the Peace in his home town of Mugron in Les Landes He was appointed in May 1831 in spite of the fact he had no legal training, perhaps as a reward for his support of the July Revolution of 1830 which brought Louis Philippe to power. He got a reputation making for quick and fair decisions in local legal disputes.
144 Armand, vicomte de Melun (1807-77) was a politician, philanthropist, and Catholic social reformer. He was elected deputy in 1843 and took up the cause of improving the social condition of workers by founding the Société d'économie charitable and the journal Les Annales de la charité (1847). Although he was instrumental in establishing private charities to achieve this end, he also was an active proponent of state intervention, because only the state, in his view, "was in a position to reach all miseries."
145 There are there examples where Bastiat presents his own utopian vision for a liberal society: the first is in an economic sophism, ES2 11 "The Utopian" (LE, 17 Jan., 1847), in CW3, pp. 187-98, where Bastiat is made dictator for a day and is free to reform French society as he sees fit; the second is his response to Considerant in "Petition from an Economist" (March, 1848) in CW1, pp. 426-29 where he challenges Considerant to set up competing utopian, experimental communities (Considerant's is socialist and his is laissez-faire); and "Barataria" (early 1848), in CW4 (forthcoming), which is a parody of Cervantes' Don Quixote where Pancho is made dictator of the island a Barataria and urged to impose socialist reforms which he refuses to do.
146 Bastiat says "l'humanité accomplira avec ordre, avec calme, lentement sans doute, mais avec certitude, le progrès, qui est sa destinée" which FEE translates as "mankind will achieve—slowly, no doubt, but certainly—God's design for the orderly and peaceful progress of humanity." This converts "progress, which is his destiny" into another reference to God - "God's design for the orderly and peaceful progress of humanity."
147 Bastiat says "où la pensée de Dieu prévaut le plus sur les inventions des hommes" which FEE translated as "where the inventions of men are most nearly in harmony with the laws of God." This changes "the thought of God" into "the laws of God."
148 Jacques de Vaucanson (1709–82) was a French inventor who was famous for creating automata that could play musical instruments to entertain the nobility. He was best known for his machines "The Flute Player" and "The Duck." Vaucanson also turned his hand to more-practical subjects by trying to automate the weaving of silk.
149 Bastiat says "Il y a une physiologie sociale providentielle comme il y a une physiologie humaine providentielle" which FEE translated as "He (God) has provided a social form as well as a human form," leaving out the references to providence and inserting another reference to God.
150 Fourier was a socialist and founder of the phalansterian school ("Fourierism"). Fourierism advocated a utopian, communistic system for the reorganization of society. The population was to be grouped in "phalansteries"of about 1,800 persons, who would live together as one family and hold property and work in common.
T.259 (1850.07) What is Seen and What is Not Seen↩
SourceT.259 (1850.07) What is seen and what is not seen (Ce qu'on voit et ce qu'on ne voit pas) Published as a separate pamphlet. Contains as the first chapter "The Broken Window". Ce qu'on voit et ce qu'on ne voit pas, ou l'Économie politique en une leçon. Par M. F. Bastiat, Représentant du peuple à l'Assemblée nationale, Membre correspondant de l'Institut (Paris: Guillaumin, 1850). [OC5, pp. 336-92.] [CW3]
Editor's Note[to come]
Text- Original title, place and date of publication: [did not appear separately before publication, written July 1850]
- Published as book or pamphlet: 1st French edition 1850.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 5: Sophismes économiques. Petits pamphlets II. (1854), pp. 336-92.
- Previous translation: 1st English ed. 1852, FEE ed. 1964. See "Note on the Publishing History."
Paillottet tells us that WSWNS was published in July 1850 barely 6 months before Bastiat was to die from his throat condition. It was over 12 months late because he had lost the manuscript in a house move and had to rewrite it. He was unhappy with the serious tone of the second version and threw that into the fire before writing the third and final version which we have here.
It was published as a 79 page pamphlet by Guillaumin and was reissued in this format in 1869 (4th ed.) and 1879 (5th ed.). It was also part of the collected works of Bastiat which appeared in 1854 (vol. 5 of Oeuvres complètes (1st ed. 1854)), and twice in 1863 (vol. 5 of Oeuvres complètes (2nd ed. 1863) and also vol. 2 of Oeuvres choisies). It was quickly translated into English by William Ballantyne Hodgson in 1852 and published in popular newspapers and circulated among ordinary working people in cheap editions. See the "Note on the Publishing History" for details.
Notes1 (Paillottet's note) This pamphlet, published in July 1850 was the last one written by Bastiat. It had been promised to the public for more than a year. The following is the reason for its delayed publication. The author lost the manuscript when he moved house from the Rue de Choiseul to the Rue d'Alger. After a long and fruitless search he decided to rewrite the work completely, and selected as the principal basis for his arguments, speeches recently made in the National Assembly. Once he had completed this task, he blamed himself for being too serious, threw the second manuscript into the fire and wrote the one we are publishing here. The subtitle was part of the first edition but it was usually dispensed with in most of the later editions.] [The rue de Choiseul was the headquarters of the French Free Trade Society.]
2 See "A Publishing History of the Economic Sophisms" for a more detailed discussion.
[The Author's Introduction] [final draft]In the sphere of economics an action, a habit, an institution or a law engenders not just one effect but a series of effects. Of these effects only the first is immediate; it is revealed simultaneously with its cause, it is seen. The others merely occur successively, they are not seen;3 we are lucky if we foresee them.
The entire difference between a bad and a good Economist is apparent here. A bad one relies on the visible effect while the good one takes account both of the effect one can see and of those one must foresee.
However, the difference between these is huge, for it almost always happens that when the immediate consequence is favorable the later consequences are disastrous, and vice versa. From which it follows that a bad Economist will pursue a small current benefit that is followed by a large disadvantage in the future, while a true Economist will pursue a large benefit in the future at the risk of suffering a small disadvantage immediately.4
This distinction is also true, moreover, for hygiene and the moral code. Often, the sweeter the first fruit of a habit, the more bitter are those that follow. Examples of this are debauchery, laziness and prodigality. So when a man, touched by some effect that can be seen, has not yet learnt to discern those that are not seen, he gives way to disastrous habits, not just through inclination but deliberately.
This explains the inexorably painful evolution of the human race. Ignorance surrounds its cradle; it therefore makes up its mind with regards to its acts according to their initial consequences, the only ones it is able to see originally. It is only in the long run that it learns to take account of the others.5 Two masters, very different from one another, teach it this lesson: experience and foresight. Experience governs effectively but brutally. It teaches us all the effects of an action by having us feel them and we cannot fail to end up learning that fire burns, by burning ourselves. For this rough teacher, I would like, as far as possible to substitute a gentler one: foresight. This is why I will be seeking the consequences of certain economic phenomena by opposing those that are not seen to those that are seen.
Notes3 Bastiat's first use of these concepts is most likely in ES1 XX "Human Labor and Domestic Labor" (c. 1845) where he contrasts "immediate and transitory effects" and "general and definitive consequences."
4 During the course of 1849 when Bastiat repeatedly rewrote this pamphlet as he could not decide on the appropriate style to use, whether serious or satirical, he had developed his thinking on two ideas which were of great concern to him for the previous few years. These were firstly, the immediately observable and obvious consequences of an economic act ("the seen") and the longer term and less apparent consequences ("the unseen"), and secondly the "ricochet" or flow on effects of economic actions which may or may not have positive or negative consequences. This pamphlet is an extended exploration of the former set of ideas. See the glossary entry on "The Double Incidence of Loss" and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
5 (Paillottet's note) See chapter XX in vol. VI. [This is a reference to Chap. XX "Responsibility" in the Economic Harmonies.]
I. The Broken Window6 [final draft]Have you ever witnessed the fury of the good bourgeois Jacques Bonhomme7 when his dreadful son succeeded in breaking a window? If you have witnessed this sight, you will certainly have noted that all the onlookers, even if they were thirty in number, appeared to have agreed mutually to offer the unfortunate owner this uniform piece of consolation: "Good comes out of everything. Accidents like this keep production moving. Everyone has to live. What would happen to glaziers if no window panes were ever broken?"
Well, there is an entire theory in this consoling formula, which it is good to surprise in flagrante delicto8 in this very simple example, since it is exactly the same as the one that unfortunately governs the majority of our economic institutions.
If you suppose that it is necessary to spend six francs to repair the damage, if you mean that the accident provides six francs to the glazing industry and stimulates the said industry to the tune of six francs, I agree and I do not query in any way that the reasoning is accurate. The glazier will come, do his job, be paid six francs, rub his hands and in his heart bless the dreadful child. This is what is seen.
But if, by way of deduction, as is often the case, the conclusion is reached that it is a good thing to break windows, that this causes money to circulate and therefore industry in general is stimulated, I am obliged to cry: "Stop!" Your theory has stopped at what is seen and takes no account of what is not seen.
What is not seen is that since our bourgeois has spent six francs on one thing, he can no longer spend them on another What is not seen is that if he had not had a window to replace, he might have replaced his down-at-heel shoes or added a book to his library. In short, he would have used his six francs for a purpose that he will no longer be able to.
Let us therefore draw up the accounts of industry in general.
As the window was broken, the glazing industry is stimulated to the tune of six francs; this is what is seen.
If the window had not been broken, the shoemaking industry (or any other) would have been stimulated to the tune of six francs; this is what is not seen.
And if we took into consideration what is not seen, because it is a negative fact, as well as what is seen, because it is a positive fact, we would understand that it makes no difference to national output and employment, taken as a whole, whether window panes are broken or not.
Let us now draw up Jacques Bonhomme's account.9
In the first case, that of the broken window, he spends six francs and enjoys the benefit of a window neither more nor less than he did before.
In the second, in which the accident had not happened, he would have spent six francs on shoes and would have had the benefit of both a pair of shoes and a window.
Well, since Jacques Bonhomme is a member of society, it has to be concluded that, taken as a whole and comparing what he has to do with his benefits, society has lost the value of the broken window.
From which, as a generalization, we reach the unexpected conclusion: "Society loses the value of objects destroyed to no purpose", and the aphorism that will raise the hackles of protectionists: "Breaking, shattering and dissipating does not stimulate the national employment", or more succinctly: "Destruction is not profitable".
What will Le Moniteur industriel say,10 and what will the opinion be of the followers of the worthy Mr. de Saint-Chamans,11 who has so accurately calculated what productive activity would gain from the burning of Paris because of the houses that would have to be rebuilt?12
It grieves me to upset his ingenious calculations, especially since he has introduced their spirit into our legislation. But I beg him to redo them, introducing into the account what is not seen next to what is seen.
The reader must take care to note clearly that there are not just two characters, but three, in the little drama that I have put before him. One, Jacques Bonhomme, represents the Consumer, reduced by the breakage to enjoy one good instead of two. The second is the Glazier, who shows us the Producer whose activity is stimulated by the accident. The third is the Shoemaker (or any other producer) whose output is reduced to the same extent for the same reason. It is this third character that is always kept in the background and who, by personifying what is not seen, is an essential element of the problem. He is the one who makes us understand how absurd it is to see profit in destruction. He is the one who will be teaching us shortly that it is no less absurd to see profit in a policy of trade restriction, which is after all, nothing other than partial destruction. Therefore, go into the detail of all the arguments brought out to support it and you will merely find a paraphrase of that common saying: "What would happen to glaziers if window were never broken?"13
Notes6 The American journalist Henry Hazlitt played an important role in bringing the work of Bastiat to the attention of Americans in the immediate post-World War Two period. In his preface to his book Economics in One Lesson (1946) he acknowledged his debt to Bastiat's pamphlet "What is Seen and What is no Seen": "My greatest debt, with respect to the kind of expository framework on which the present argument is being hung, is to Frédéric Bastiat's essay Ce qu'on voit et ce qu'on ne voit pas, now nearly a century old. The present work may, in fact, be regarded as a modernization, extension, and generalization of the approach found in Bastiat's pamphlet" (p. 9). Hazlitt's first chapter was entitled "The Broken Window" which is a reference to one of Bastiat's better known Sophisms and the very title of Hazlitt's book probably is drawn from the subtitle used in the printed edition of the pamphlet by the Guillaumin publishing firm, "ou l'économie politique en une leçon" (or, political economy in one lesson). See Henry Hazlitt, Economics in One Lesson (1st edition Harper and Brothers, 1946). The edition used for the quote is New York: Manor Books Inc, 1974.
7 "Jacques Bonhomme" (literally Jack Goodfellow) is the name used by the French to refer to "everyman," sometimes with the connotation that he is the archetype of the wise French peasant. Bastiat uses the character of Jacques Bonhomme frequently in his constructed dialogues in the Economic Sophisms as a foil to criticise protectionists and advocates of government regulation. The name Jacques Bonhomme was given to the small magazine that Bastiat and Molinari published and handed out on the street corners of Paris in June and July 1848. See the glossary entry "Jacques Bonhomme [person]."
8 "In flagrante delicto" is a Latin phrase which means literally "in blazing offence". It is used in legal circles to mean that someone has been caught in the act of committing an offence.
9 In drawing up this account Bastiat was keen to introduce some mathematical precision into his calculations. He was first inspired by the work of the anti-corn law advocate Colonel Perronet Thompson (1783-1869) who between 1834-36 developed the idea of a calculable "double incidence of loss" by which he meant "the (part) of the sum gained to the monopolists and lost twice over by the rest of France, - (viz. once by a corresponding diminution of business to some other French traders, and once more by the loss to the consumers, who are the nation)... The understanding of the misery of this basis, depends upon a clear comprehension of the way in which the gain to the monopolist is lost twice over by other parties; or what in England has been called the double incidence of loss." [See footnote above, pp. ??? for details]. Bastiat took up this idea and made it the basis for two sophisms beginning with ES3 IV. "One profit vs. Two Losses" (7 May 1847). Later that month he wrote an appeal to one of the leading physicists in France, François Arago (1786-1853), who was active in liberal politics to assist him in making these arguments more rigorous mathematically and thus "invincible." See "Two Losses vs. One Profit" (30 May 1847) above, pp. ??? See also the glossary entries on "François Arago," "Perronet Thompson," "The Double Incidence of Loss," and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
10 Le Moniteur industriel was the journal of the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment) founded by Mimerel de Roubaix in 1846. See the glossary entries on "Le Moniteur industriel," "Mimerel," and "Association for the Defense of National Employment".
11 Saint-Chamans was a deputy (1824-27) and a Councillor of State. He advocated protectionism and a mercantilist theory of the balance of trade. See the glossary entry on "Saint-Chamans."
12 Bastiat misremembers Saint-Chamans' argument in this passage. In his Traité d'économie politique (1852), which was a reworking of a previous work on Nouvel essai sur la richesse des nations (1824), Saint-Chamans argues against the free market economist Joseph Droz (1773-1850) who stated that that a sudden loss of a large amount of accumulated capital in Europe would cause severe hardship and would take considerable time to overcome. Saint-Chamans countered this by arguing that the Great Fire of London in 1666 (so not Paris) destroyed a huge amount of the capital stock which was quickly replaced and was thus a net gain for the nation of some one million pounds stirling (or 25 million francs) (see above, pp. ???). See M. le vicomte de Saint-Chamans, Traité d'économie politique suivi d'un apercu sur les finances de la France (Paris: Dentu et Ledoyen, 1852), vol. 1. See the glossary entry for "Saint-Chamans."
13 (Paillottet's note) See pages 100 et seq. of chapter XX of the first series of Sophisms in Tome IV. . This is a reference to Chap. XX "Travail humain, travail national" (Human Labor and Domestic Labor" in Economic Sophisms Part I.]
II. Dismissing Members of the Armed Forces [final draft]The same rules apply to a nation as to a single man. When a nation wishes to acquire some economic benefit or other , it is up to that nation to see whether it is worth what it costs. For a nation, Security is the greatest asset. If, in order to acquire it, one hundred thousand men have to be drafted and one hundred million spent, I have nothing to say.14 It is a benefit purchased at the price of a sacrifice.
Let no one therefore make any mistake about the significance of my thesis.
Imagine that a deputy proposes to discharge a hundred thousand men from the army to lessen the burden on taxpayers to the tune of a hundred million.15
If we limit ourselves to giving him the reply that "These hundred thousand men and this hundred million francs are essential to national security; they are a sacrifice, but without this sacrifice France would be torn apart by factions or invaded by foreigners," then I have no rebuttal to make at this point to this argument, which may be true or false, but theoretically does not encompass any economic heresy. The heresy begins when you wish to represent the sacrifice itself as an advantage because it benefits someone.
Well, unless I am much mistaken, the author of the proposal will no sooner have come down from the rostrum than another speaker will leap on to it to say:
"Dismiss a hundred thousand men! Do you really mean this? What will become of them? What will they live on? Work? But do you not know that there is a shortage of work everywhere? That there are no vacancies in any trade? Do you wish to cast them into the street to increase competition and depress earnings? Just when it is so difficult to eke out a meager livelihood, is it not fortunate that the State is providing bread to these hundred thousand people? What is more, consider that the army consumes wine, clothing, and weapons, and thus provides activity for factories and in garrison towns, and that in fact it is the very salvation of its countless numbers of suppliers. Do you not tremble at the thought of abolishing this huge engine of industrial activity?"
As we can see, this speech concludes that the hundred thousand men should be retained, taking no account of the indispensability of the service, on economic grounds. It is these considerations alone that I have to refute.
One hundred thousand men who cost the taxpayer one hundred million, live and provide a living for their suppliers to the extent that one hundred million can be spread: that is what is seen.
But one hundred million, extracted from the pockets of taxpayers, interfere with the economic lives of these taxpayers and their suppliers to the tune of that one hundred million: that is what is not seen. Do the calculation, cost it and tell me where the profit lies for the mass of the people?
As for me, I will tell you where the loss lies, and to keep it simple, instead of talking about one hundred thousand men and one hundred million francs, let us base our reasoning on one man and a thousand francs.
Here we are, in the village of "A." Recruiters are doing the rounds and have carried off one man. The tax collectors are doing their rounds and have carried off one thousand francs. The man and the money are taken to Metz16, one intended to provide a living for the other for a year without doing anything. If you take only Metz into consideration, you are right indeed a hundredfold; the measure is very beneficial. However, if your eyes turn to the village of A you would think otherwise, for unless you are blind you will see that this village has lost one worker and the thousand francs that rewarded his work as well as the activity which, through the expenditure of these thousand francs, he spread around him.
At first sight it would appear that there is compensation for this. The phenomenon that occurred in the village now occurs in Metz, that is all. But this is where the loss lies. In the village, one man dug and ploughed: he was a worker. At Metz, he turns his head left and right: he is a soldier. The money and its circulation are the same in both cases, but on one, there were three hundred days of productive work; in the other there are three hundred days of unproductive work, always supposing that part of the army is not essential to public security.
Now, discharge comes. You point out to me a glut of one hundred thousand workers, stimulated competition and the pressure that it exerts on rates of pay. This is what you see.
But here is what you do not see. You do not see that discharging one hundred thousand soldiers is not to annihilate one hundred million, it is to return this sum to the taxpayers. You do not see that casting one hundred thousand workers onto the market is at the same time to cast the one hundred million intended to pay for their work onto the same market. As a result, the same measure that increases the supply of labor also increases the demand, from which it follows that your decrease in earnings is an illusion. You do not see that before, as after the discharge of the soldiers, there are in the country one hundred million francs that correspond to one hundred thousand men, and that the entire difference lies in this: before, the country paid one hundred thousand men one hundred million to do nothing; after, it pays them this sum to work. Finally, you do not see that when a taxpayer hands over his money, either to a soldier in return for nothing or to a worker in return for something, all the subsequent consequences of the circulation of this money are the same in both cases, with the sole difference that in the second case, the taxpayer receives something while in the first he receives nothing. The result: a net loss for the nation.
The sophism that I am combating here does not stand up to the test of progressive application, which is the touchstone of principles. If, everything paid for, and all interests considered, there is a benefit to the nation in increasing the army, why do we not enroll under the flag the entire male population of the country?
Notes14 To maintain its armed forces at the level of about 400,000 with a five year period of enlistment the French state had to recruit or conscript about 80,000 men each year. See the glossary entry on "The French Army and Conscription."
15 To get some idea of what Bastiat was calling for here with 100,000 immediate dismissals from the French Army (Armée de terre) it should be kept in mind that, according to the budget passed on 15 May 1849 the size of the French army was 389,967 men and 95,687 horses. [This figure rises to 459,457 men and 97,738 horses for the entire French military (including foreign and colonial forces).] The expenditure on the Army in 1849 was fr. 346,319,558 and for the Navy and Colonies was fr. 119,206,857 for a combined total of fr. 465,526,415. Total government expenditure in 1849 was fr. 1.573 billion with expenditure on the armed forces making up 29.6% of the total budget. In these passages Bastiat roughly estimates that 100,000 soldiers cost the French state fr. 100 million. An immediate cut of 100,000 would be 25.6% of the total size of the French Army. An equivalent cut in the size of the US Armed Forces would be about 373,000 men and women [in 2012 there were 1,456,862 active personnel and a FY2011 budget of $549.4 billion.] As vice-president of the National Assembly's finance committee in 1848-49 Bastiat had access to the most recent figures. See Projet de loi pour la fixation des recettes et des dépenses de l'exercice 1850. IIIe volume. Budget des dépenses du Ministère de la guerre. Budget des dépenses du Ministère de la marine et des colonies (Paris: Imprimerie nationale, 1849), pp. 13-14; Alphonse Courtois, "Le budget de 1849" in Annuaire de l'économie politique et de la statistique pour 1850 par MM. Joseph Garnier. 7e année (Paris: Guillaumin, 1850), pp. 18-28. See the glossary entry on "The French Army."
16 Metz is a city in the north-east of France with an important army garrison.
III. Taxes [final draft]Have you ever happened to hear the following?
"Taxes are the best investment; they are a life-giving dew. See how many families gain a livelihood from them; work out their ricochet or flow on effects17 on industry; this is beyond measure, it is life."
To combat this doctrine, I am obliged to repeat the preceding refutation. Political economy knows full well that its arguments are not amusing enough for people to say of them: Repetita placent. Repetitions are pleasing. For this reason, like Basile18, it has arranged the proverb to suit itself, fully convinced that in its mouth Repetita docent. Repetitions teach.
The advantages that civil servants find in drawing their salaries are what is seen. The benefit that results for their suppliers is again what is seen. It is blindingly obvious to the eyes.
However, the disadvantage felt by taxpayers in trying to free themselves is what is not seen and the damage that results for their suppliers is what is not seen either, although it is blindingly obvious to the mind.
When a civil servant spends one hundred sous too much for his own benefit, this implies that a taxpayer spends one hundred sous too little for his own benefit. However, the expenditure of the civil servant is seen because it is carried out whereas that of the taxpayer is not seen as, alas! he is prevented from carrying it out.
You compare the nation to an arid land and tax to bountiful rain. So be it. But you should also ask yourself where the sources of this rain are, and if it is not taxes themselves that absorb the humidity from the earth and dry it out.
You ought to ask yourself as well if it is possible for the earth to receive as much of this precious water through rain as it loses through evaporation.
What is obvious is that, when Jacques Bonhomme counts out one hundred sous to the tax collector, he receives nothing in return. When, subsequently, a civil servant, in spending these hundred sous, gives them back to Jacques Bonhomme, it is in return for an equal value in wheat or labor. The end result is a loss of five francs19 for Jacques Bonhomme.
It is very true that often, or in the majority of cases, if you prefer, the civil servant renders an equivalent service to Jacques Bonhomme. In this case, there is no loss on either side; there is merely an exchange. For this reason, my line of argument is not directed against useful activity. What I say is this: if you wish to create any such activity, prove its utility. Demonstrate that the services rendered to Jacques Bonhomme are worth what they cost him. But putting on one side this intrinsic utility, do not use as an argument the advantage it gives to the civil servant, his family and his suppliers; do not claim that it stimulates employment.
When Jacques Bonhomme gives one hundred sous to a civil servant in return for a genuinely useful service, it is exactly the same as when he gives one hundred sous to a shoemaker for a pair of shoes. Give and take, tit for tat. But when Jacques Bonhomme hands over one hundred sous to a civil servant and then receives no services or even suffers aggravation in return, it is as though he is handing this money to a thief. It is no good saying that the civil servant will spend these hundred sous for the general benefit of national output; the thief would have done the same with them. So would Jacques Bonhomme if he had not met on his way either the extra-legal parasite or the legal one.
Let us therefore acquire the habit of not judging things merely by what is seen, but also by what is not seen.
Last year I was a member of the Finance Committee,20 for under the Constituent Assembly members of the opposition were not systematically excluded from all Committees; in this the Constituent Assembly acted wisely. We heard Mr. Thiers21 say: "I have spent my life combating the men of the Legitimist Party and the Priests' Party.22 Since the time that a common danger brought us together, since the time I have been seeing a lot of them and becoming acquainted with them, since we have been speaking frankly to one another, I have noticed that they are not the monsters I took them to be."
Yes, mistrust is compounded and hatred aroused between parties that do not mix, and if the majority allowed a few members of the minority to become Committee members, perhaps it would be acknowledged on both sides that their ideas are not as far apart and, in particular, their intentions not as perverse as people suppose.
Be that as it may, last year I was a member of the Finance Committee. Each time that one of our colleagues spoke of setting at a moderate level the remuneration of the President of the Republic, ministers or ambassadors, he was told:
"For the very good of the service, certain roles have to be surrounded by an aura of brilliance and dignity. It is a means of attracting men of worth. Very many men who are short of funds seek the ear of the President of the Republic and it would place him in an uncomfortable position if he were obliged always to refuse them. A certain presence in ministerial and diplomatic salons is part of the wheels of constitutional government, etc. etc."
Although arguments like this can be debated, they certainly warrant close examination. They are based on public interest, whether this is correctly or incorrectly appreciated, and for my part, I take more notice of them than many of our Catos23 who are moved by a narrow spirit of stinginess or jealousy.
However, what revolts my conscience as an economist and makes me blush for the intellectual reputation of my country is when the argument is reduced (and this invariably happens) to the following absurd banality, which is always favorably received:
"Besides, the luxurious living of high government officials encourages the arts, industry and labor in general. The Head of State and his ministers cannot give feasts and gala evenings without making life circulate in every vein of the social body. Reducing their remuneration is to starve productive activity in Paris, and by extension throughout the nation."
Please, Sirs, show some respect at least to arithmetic, and do not stand before the National Assembly of France to say that addition produces a different sum depending on whether one adds the figures from top to bottom or from bottom to top, because you fear that this shameful Chamber will not support your measure unless you do.
What! I am going to reach an agreement with a laborer to have a ditch dug in my field at a cost of one hundred sous. Just when the agreement is about to be finalized, the tax collector takes my hundred sous and passes them on to the Minister of the Interior. My agreement falls apart but the Minister will have an extra dish for his dinner. On which basis, you dare to claim that this official expenditure is an addition to national output! Do you not understand that this is just a simple displacement of utility and labor? A minister has a better-laden table, it is true, but a farmer has a field that is less well drained, and this is just as true. A caterer in Paris has earned one hundred sous, I grant you, but you should grant me that a laborer in the provinces has failed to earn five francs. All that can be said is that the official dish and a satisfied caterer is what is seen; the flooded field and the laborer with no work is what is not seen.
Good God! What a lot of trouble to prove that, in political economy, two and two are four and if you succeed in doing this, the cry is heard: "This is so obvious, it is boring. "And then they vote as though you had proved nothing at all.
Notes17 By the "ricochet (or flow on) effect" Bastiat means the indirect consequences of an economic action which flow or knock on to other parties (potentially numbering in their thousands or even millions), sometimes with positive results (as with the invention of printing or steam powered ships) but more often with negative results (as with tariffs, subsidies, and taxes). This insight was an elaboration of his earlier idea of the "Double Incidence of Loss" which he used to great effect in WSWNS. See the glossary entry on "The Double Incidence of Loss" and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
18 Don Basile is a character from Beaumarchais' play The Barber of Seville (1775). Basile is a singing teacher who says to Dr. Bartholo that when he is unable to understand an argument he resorts to using proverbs such as "What is good to take, is good to keep." He then says that "Yes, I arrange several little proverbs with variations, just like that." Act IV, p. 254. Théâtre de Beaumarchais. Précédé d'une Notice sur sa vie et ses ouvrages, par M. Auger (Paris: Librairie de Firmin Didot Frères, 1844).
19 One hundred sous = five francs. See the glossary entry on "French Currency."
20 Bastiat's work on the Finance Committee of the National Assembly is a topic which has been scarcely explored in any detail and needs to be more fully researched. We know that he was nominated to be its vice-president and was required to present its reports officially to the Chamber of Deputies from time to time. He was re-appointed to this position 8 times such was the regard his peers had for his economic knowledge. Needless to say, his advice about cutting taxes and balancing the budget were not often heeded and he became a bit like the resident "Utopian" on the Committee. See the ES2 XI. "The Utopian" (17 January 1847) and the Appendix "Bastiat's Activities in the National Assembly 1848-1850."
21 Adolphe Thiers (1797-1877) was a lawyer, historian, politician, and journalist who served briefly as Prime Minister and Minster of Foreign Affairs in 1836 and 1840. After the 1848 revolution and the creation of the Second Empire he was elected deputy representing Rouen in the Constituent Assembly. See the glossary entry on "Thiers."
22 The main political groups in the late 1840s when Bastiat was writing and becoming politically active include the Doctrinaires who were moderate royalists, the Legitimists (also known as the "Party of Order" in 1849) who were supporters of the descendants of Charles X, the Republicans who were a diverse and poorly organized group, the Montagnards who were radical socialists, the Orléanists who were supporters of the overthrown Louis Philippe, and the Bonapartists who were supporters of Napoleon, both the Emperor Napoleon I and then his nephew Louis Napoleon. All of the political groups were protectionist to one degree or the other, and the socialists were both protectionist and extremely interventionist as well. Free traders like Bastiat were very much in the minority and could draw upon only a few luke-warm supporters in the Doctrinaire and Bonapartist groups. See the glossary entry on "Political Parties."
23 Cato the Younger (Cato Minor) was a politician in the late Roman Republic and a noted defender of "Roman Liberty" and opponent of Julius Caesar. See the glossary entry on "Cato the Younger."
IV. Theatres and the Fine Arts [final draft]Should the State subsidize the arts?24
There is certainly much to say both For and Against.25
In favor of the system of subsidies, it might be said that the arts expand and elevate the soul of a nation and make it more poetic, that they tear it away from material preoccupations, give it an appreciation of Beauty and thus have a beneficial effect on its manners, customs, habits and even its industry. The question might be asked where music would be in France without the Théâtre Italien and the Conservatoire, dramatic art without the Théâtre Français and painting and sculpture without our collections and museums.26 We may go even further and ask ourselves whether, without the centralization and consequent subsidization of the fine arts, that exquisite taste that is the imposing mark of French work and makes its products attractive around the world, would have developed. Faced with these results, would it not be extremely rash to abandon this modest contribution from all of its citizens who, in the end, have succeeded in establishing their superiority and shining reputation in Europe?
These reasons and many others whose validity I do not question may be countered by others that are just as powerful. First of all, it may be said, there is the question of distributive justice. Does the right of the legislator go so far as to make inroads into the earnings of artisans to supply extra income to artists? Mr. Lamartine 27 said: "If you remove the subsidy from a theatre, how far will you go down this road, and would you not logically be led to abolishing your Universities, Museums, Institutes and Libraries?" The answer to this might be: "If you wish to subsidize everything that is good and useful, how far will you go down this road, and would you not logically be led to establishing a civil list for farming, industry, trade, benevolent activities and education?" Moreover, is it certain that subsidies encourage the progress of art? This is a question that is far from being answered and we can see with our own eyes that the theatres that prosper are those that generate their own life. Finally, raising our considerations to a higher level, we can point out that needs and desires are born one from another, and rise to levels that are increasingly refined28 as public wealth makes it possible to satisfy them; that the government has no need to become involved in this interaction, since in a given state of current wealth it would be unable to stimulate luxurious lines of production through taxes without upsetting essential ones, thus turning upside down the natural progress of civilization. It might be pointed out that these artificial displacements of needs, taste, production and populations puts nations in a precarious and dangerous situation whose foundation is no longer solid.
These are just a few reasons put forward by those who oppose State intervention with respect to the priorities according to which citizens believe that they ought to satisfy their needs and desires and consequently direct their activity. I must admit that I am one of those who think that choice and impulse has to come from below, not above, from citizens, not the legislators, and a doctrine to the contrary seems to me to lead to the abolition of human freedom and dignity.
However, through a deduction that is as false as it is unjust, do you know what economists are accused of? It is that when we reject subsidies we are rejecting the very thing that is to be subsidized and are the enemies of all these types of activity since we want these activities to be free and at the same time pay their own way. Thus, if we demand that the State not intervene in religious matters through taxation, we are atheists; if we demand that the State not intervene in education through taxation, we are against enlightenment. If we say that that State ought not to give an artificial value to land or a particular sector of the economy through taxation, we are enemies of property and labor. If we think that the State ought not to subsidize artists, we are barbarians who think that art is of no use.
I protest here as forcefully as I can against these deductions. Far from entertaining the absurd notion of abolishing religion, education, property, production and the arts, when we demand that the State protect the free development of all these kinds of human activity without having them in its pay at the citizens' mutual expense, we believe on the contrary that all these life-giving forces in society would develop harmoniously under the influence of freedom, that none of them would become, as we see today, a source of unrest, abuse, tyranny and disorder.
Our adversaries believe that an activity that is neither in the pay of the State nor regulated is an activity that has been destroyed. We believe the contrary. Their faith lies in the legislator, not in humanity; ours lies in humanity, not in the legislator.
Thus, Mr. Lamartine said: "In the name of this principle, we should abolish the public exhibitions that constitute the honor and wealth of this country."29
My reply to Mr. Lamartine is: "Your point of view is that failing to subsidize is to abolish, since, according to this notion that nothing exists other than through the will of the State, you conclude that nothing lives outside the things kept alive through taxes. But I am turning against you the example you have chosen and point out to you that the greatest and most noble of exhibitions, the one conceived in the most liberal and universal, and I might even use the word humanitarian, thought, which is no exaggeration in this context, is the exhibition being prepared in London, the only one in which no government is involved and where no tax is being used to pay for it."30
To return to the Fine Arts, it is possible, I repeat, to put forward powerful reasons for and against the system of subsidies. The reader will understand that, in accordance with the particular aim of this article, my job is neither to set out these reasons nor decide between them.
But Mr. Lamartine has put forward an argument that I cannot allow to pass without comment, as it comes precisely within the sphere of this economic study.
He has said:
"The economic question with regard to theatres can be summed up in a single word: it is production. The nature of this production matters little; it is an activity that is as fecund and productive as any other type of project in a nation. As you know, in France theatres feed and pay no fewer than eighty thousand workers of all types, painters, masons, decorators, costume makers, architects, etc., who are the very lifeblood and dynamism of several districts of this capital city and, for this reason, should be given your sympathy."
Your sympathy! In translation, your subsidy.
And further on:
"The pleasures of Paris lie in the output and consumption taking place in its departments and the luxury of the wealthy constitutes the earnings and bread of two hundred thousand workers of all sorts who earn a living from the various industries of the theatres over the entire surface of the Republic and who receive from these noble pleasures that make France illustrious, the food to keep them alive and the necessities required by their families and children. It is to them that you are giving these 60,000 francs (Hear! Hear! A host of approving gestures.)"
For my part, I am obliged to say: No! No! Restricting, of course, the scope of this judgment to the economic argument we are dealing with here.
Yes, it is to the workers in the theatres that these 60,000 francs in question will go, at least in part. 31 A few trifling sums may well be lost in transit. If you give the matter close scrutiny, actually, you may discover that things work out quite differently, such that fortunate are those workers if a few scraps are left to them! However, I am willing to accept that the entire subsidy will go to the painters, decorators, costume makers, hairdressers, etc. This is what is seen.
But where has it come from? This is the other side of the question that is just as important to examine as its face. Where is the source of these 60,000 francs? And where would they go if a legislative vote did not initially send them to the Rue de Rivoli and from there to the Rue de Grenelle32? That is what is not seen.
Certainly no one will dare to claim that the legislative vote has caused this sum to blossom in the voters' urn, that it is a pure addition to national wealth, and that without this miraculous vote these sixty thousand francs would have remained forever invisible and intangible. It has to be admitted that all that the majority has been able to do is to decide that they will be taken from somewhere to be sent somewhere else, and that they are given one destination only by being taken from another.
Since things are like this, it is clear that the taxpayer who has been taxed one franc will no longer have this franc available to him. It is clear that he will be deprived of satisfaction to the value of one franc and that the worker, whoever he may be, who would have provided it to him will be deprived of pay to the same extent.
Let us therefore not harbor this puerile illusion of believing that the vote on 16 May33 adds anything at all to national well-being and work. It displaces enjoyment and displaces pay; that is all.
Will people say that for one type of expenditure and one type of production, more urgent, more moral and more reasonable expenditure and production have been substituted? I might make a stand here. I might say: "By snatching 60,000 francs from taxpayers, you are reducing the earnings of ploughmen, laborers, carpenters and blacksmiths, and you are increasing the earnings of singers, hairdressers, decorators and costume makers by the same amount. Nothing proves that this latter class is more worthy than the other. Mr. Lamartine does not claim this. He himself says that the work of theatres is (just as fertile, just as productive and not more) than any other, which might itself still be contested, since the best proof that the second category is not as fertile as the first is that the first is called upon to subsidize the second.
But this comparison between the value and intrinsic merit of the diverse forms of production is not part of my present subject. All that I have to do here is to show that Mr. Lamartine and the people who applauded his line of argument saw with one eye the earnings of the suppliers of actors and ought to have seen with the other the earnings lost by the suppliers of taxpayers. By not doing so, they exposed themselves to the nonsense of taking a displacement for a gain. If they were consistent with their doctrine, they would demand an infinite number of subsidies, for what is true for one franc and 60,000 francs is true in identical circumstances for a billion francs.
When it is a question of taxes, gentlemen, let us prove their utility using reasons based on fundamentals, but never resort to the wretched argument that "Public expenditure provides a livelihood for the working class." This makes the mistake of concealing an essential fact, that is to say, that public expenditure always takes the place of private expenditure and that, consequently, it provides a livelihood for one workman instead of another, but adds nothing to the lot of the working class taken as a whole. Your line of argument is very fashionable, but it is too absurd for reason not to get the better of it.
Notes24 Music, art, theatre, and other forms of fine art were heavy regulated by the French state. They could be subsidized, granted a monopoly of performance, the number of venues and prices of tickets were regulated, and they were censored and often shut down for overstepping the bounds. In the 1848 budget the relatively small amount of fr. 2.6 million was spent in the category of "Beaux-Arts" (within the Ministry of the Interior) which included art, historical monuments, ticket subsidies, payments to authors and composers, subsidies to the royal theatres and the Conservatory of Music [out of total budget of fr. 1.45 billion.] By far the biggest parts of budget expenditure went for servicing the pubic debt (384 million), the Ministry of War (305 million), the Navy and Colonies (120 million), and the Ministry of the Interior (116 million). See, "Documents extraits de l'enquête sur les théâtres", JDE July 1850, T. XXVI, pp. 409-12; and the Appendix on the Budgets for 1848 and 1849. See the Appendix on French Government Finances 1848-1849."
25 Bastiat's friend and colleague Gustave de Molinari (1819-1912) was a great fan of the theatre and wrote extensively about it, criticising both its subsidies from and its censorship by the state. He has an extended discussion of this question in one the chapters in Conversations on Saint Lazarus Street (1849), "8th Evening" (Liberty Fund, forthcoming). See also his article on "Théâtres" in DEP, vol. 2, pp. 731-33. See the glossary entry on "Molinari."
26 The Théâtre-Italien (also known as the Opéra-Comique) after several false starts in the 17th century was formally re-established in 1716 under the patronage of the Duc d'Orléans. The Conservatory of Music in Paris has experienced a large number of changes over the centuries as regimes and musical tastes changed. Louis XIV created the Académie royale de musique by royal patent in 1669 and by 1836 it was known as the Conservatoire de musique et de déclamation. The Comédie-Français (also known as the Théâtre-Français) was founded in 1680 by Louis XIV. He also founded the Opéra de Paris in 1669.
27 Alphonse de Lamartine (1790-1869) was a poet turned statesmen who was a member of the provisional government and Minister of Foreign Affairs in June 1848. See glossary entry on "Lamartine".
28 (Paillottet's note) See chapter III in vol. VI. [This is a reference to chap. III "Des besoins de l'homme" (The Needs of Mankind) in Economic Harmonies.]
29 The following quotations come from Lamartine, "Sur la subvention du Théâtre-Italien (Discussion du Budget) Assemblée National. - Séance du 16 avril 1850," pp. 160-66, in Alphonse de Lamartine, La France parlementaire: 1834-1851. Oeuvres oratoires et écrits politiques. Précédée d'une étude sur la vie et les oeuvres de Lamartine par Louis Ulbach. Troisième série: 1847-1851. Tome sixième (Paris: A. Lacroix, Verboeckhoven, 1865). Specific quotes can be found on pp. 163, 161, 166.]
30 The "Great Exhibition of the Works of Industry of all Nations" (The Great Exhibition, or the Crystal Palace Exhibition) was an international trade and industry exhibition held in Hyde Park, London, between May and October 1851. The Economists were very excited about the Exhibition because of the way in which it showcased the achievements of the industrial revolution as well as the possibilities which could be opened up by international free trade. The Exhibition was planned and organized privately by the members of the Royal Society for the Encouragement of Arts, Manufactures and Commerce under the patronage of Prince Albert, the husband of Queen Victoria. The French had begun the practice of holding international industrial exhibitions in 1798 and held others in 1819, 1823, 1827, 1834, 1839, and in Paris in 1844. It was this latter exhibition in Paris which probably inspired the London Exhibition of 1851. An exhibition was planned for Paris in 1849 but the Revolution in 1848 meant that it was only a shadow of the previous ones. See Blanqui, "Expositions," DEP, vol. 1, pp. 746-51.
31 In April 1850, a deputy asked for a subsidy of 60,000 francs for the Théatre des Italiens. Since 1801, this theater had had a permanent troupe and had performed the masterpieces of Italian music before French audiences. Lamartine warmly supported the proposition.
32 The Ministry of Finances was located in the Rue de Rivoli, and the Ministry of Education and Fine Arts in the Rue de Grenelle.
33 In April 1850, a deputy asked for a subsidy of 60,000 francs for the Théatre des Italiens. It was voted on 16 May (and not 16 April as Bastiat mistakenly says).
V. Public Works [final draft]That a nation, after having ascertained that a great enterprise will be of benefit to the community, has it carried out using resources raised by general subscription, is perfectly normal. But I have to admit that I lose patience when I hear the following glaring economic error claimed in support of a resolution of this nature: "What is more it is a means of creating employment for the workers."
The State opens a road, constructs a palace, repairs a street or digs a canal; in doing this it provides work for certain workmen, that is what is seen, but it deprives certain other workmen of employment, and that is what is not seen.
Here is the road in the process of being built. A thousand workmen come every morning and go home every evening, taking their pay; that is certain. If the road had not been decided upon, if the funds had not been voted for, these good people would not have found either work or pay at this place; that is also certain.
But is this all? Does the overall operation not involve something else? At the time when Mr. Dupin34 pronounces the sacramental words: "Passed by the Assembly", do the millions miraculously slide down a moonbeam into the coffers of Messrs. Fould35 and Bineau36? In order for the change to be complete, as they say, does the State not need to organize the collection of taxes as well as their expenditure? Does it not need to send its tax collectors into the field and make the taxpayers pay their taxes?
Let us then examine both sides of the question. While noting the purpose intended by the State for the millions voted, let us not fail to note also the uses to which taxpayers would have put and can no longer put these same millions. You will then understand that a public enterprise is a two-sided coin. On one side, there is an employed worker with the motto "This is what is seen"; on the other, a worker out of work with the motto "This is what is not seen".
The sophism that I am combating in this article is all the more dangerous when applied to public works if it serves to justify the wildest enterprises or excesses. When a railway or a bridge are genuinely useful, invoking this utility is enough. But if you cannot do this, what do you do? You resort to the following grossly misleading statement: "Work has to be found for the workers".37
Once this is said, why not construct and demolish the terraces on the Champ de Mars?38 As we know, the great Napoleon considered he was performing a philanthropic act by digging and filling in ditches. He also said: "What does the result matter? All you have to see is the wealth spread around the working classes".
Let us go to the heart of things. Money deludes us. Requesting a contribution in the form of money from all citizens for a work of common interest is in fact asking them for a contribution in kind, for each of them through work obtains for himself the sum on which he is taxed. Now, if all the citizens were to brought together in order to carry out some work useful to everybody, as part of their compulsory community obligation,39 this would be understandable; their compensation would be the results of the work itself. But if, after they have been brought together, they are subjected to making roads where no one will go and palaces in which no one will live on the pretext of procuring work for them, this would be absurd, and they would certainly have reason to object: "We have no need of work like this; we would prefer to work on our own behalf".
The procedure that consists in making citizens contribute money and not work does not alter these general results one jot. The only thing is that using the second procedure the loss is shared by all, whereas using the first, those employed by the State escape their share of the loss, adding it to the loss their fellow citizens have already had to bear.
There is an article of the Constitution which says:
"Society favors and encourages the development of labor … through the establishment by the State, the departments and communes of public works suitable for employing idle hands."40
As a temporary measure in times of crisis, or during a severe winter, this intervention by the taxpayers may have good results. It acts in the same way as insurance. It adds nothing either to labor or to pay, but it takes the labor and wages earned in good times and pays them out in difficult times, admittedly with some loss.
As a permanent, general and systematic measure, this is nothing less than a ruinous deception, an impossibility, a contradiction that gives the appearance of a little labor which has been stimulated, that is seen, and hides a great deal of labor which has been prevented, that is not seen.
Notes34 Charles Dupin (1784-1873) was a pioneer in mathematical economics and worked for the statistical office of France. In 1828 he was elected deputy for Tarn, was made a Peer in 1830, and served in the Constituent and then the National Assemblies during the Second Republic. See glossary entry on "Charles Dupin."
35 Achille Fould (1800-1867) served as Minister of Finance in the Second Republic and then Minister of State in the Second Empire. He was a personal financial advisor to Napoleon III and played an important part in the imperial household. See the glossary entry on "Fould."
36 Jean Martial Bineau (1805-1855) was an engineer by training and a politician who served as Minster of Public Works in 1850 and then Minister of Finance in 1852 during the Second Empire. See the glossary entry on"Bineau."
37 Napoléon did not seem to have a well thought out economic theory but his scattered remarks recorded in his Mémoires (1821) show him to be an economic nationalist and strong protectionist. His most direct comments about tariffs and protection for French industry come in a discussion of the Continental System he introduced in November 1806 to weaken the British economy by preventing the sale of British goods in Europe. In the Mémoires Napoleon is very proud of his economic accomplishments and believed that the system of protection he introduced stimulated French industry enormously. "Experience showed that each day the continental system was good, because the State prospered in spite of the burden of the war… The spirit of improvement was shown in agriculture as well as in the factories. New villages were built, as were the streets of Paris. Roads and canals made interior movement much easier. Each week some new improvement was invented: I made it possible to make sugar out of turnips, and soda out of salt. The development of science was at the front along with that of industry." See Mémoires de Napoléon Bonaparte: manuscrit venu de Sainte-Hélène (Paris: Baudouin, 1821), pp. 95-99. See the glossary entry on "Napoléon."
38 The Champs de Mars (Field of Mars) is a large public park in the 7th Arrondisement in Paris. Before the Revolution it had been a a military parade ground but during the Revolution it was used for a variety of purposes including public ceremonies as well as executions. In May 1848 it was site for a large revolutionary Festival of Concord. It the latter part of the 19th century it was the site for several World Exhibitions, especially that of 1889 for which the Eiffel Tower was built at his north east corner.
39 Bastiat uses the term "par prestation" (compulsory or required service) which has a powerful connotation to the Economists as it referred to the common 18th century practice of compulsory community labour ("la corvée"). The corvée was abolished by Turgot in 1776 but it survived in various forms being renamed "prestation" in 1802. They were abolished once again in 1818 only to revived again in 1824 when an obligation to work 2 days a year on local roads was introduced. This was raised to 3 days in 1836 but with the added improvement of being able to be commuted to a cash payment in lieu of physical work. See Courcelle Seneuil, "Prestation," DEP, vol. 2, pp. 428-30, and "French Taxation" in Appendix 3 "Economic Policy and Taxation."
40 Chapter 2, Article 13, of the Constitution of November 4, 1848 states "The Constitution guarantees citizens the liberty of work and industry. Society favours and encourages the development of work by means of free primary education, professional education, equality of relations between employers and workers, institutions of insurance and credit, agricultural institutions, voluntary associations, and the establishment by the state, the departments and the communes of public works suitable for employing idle hands; it provides assistance to abandoned children, to the sick and the old without means, which their families cannot help." This article raises the problem which concerned Bastiat deeply of the difference between the free market idea of "the liberty of work and industry" (la liberté du travail et de l'industrie) and the socialist idea of the "right to a job" (la liberte au travail) which increasingly became an issue during the Revolution. The Constitution of November 1848 specifically refers to the former but also seems to advocate the latter with the phrase "public works suitable for reemploying the unemployed". The creation and then the abolition of the National Workshops is an example of this confusion. See "Opinion de M. Frédéric Bastiat" (on "le droit au travail") in Le droit au travail à l'Assemblée nationale. Recueil complet de tous les discours prononcés dans cette mémorable discussion par MM. Fresneau, Hubert Delisle, Cazalès, Gaulthier de Rumilly, Pelletier, A. de Tocqueville, Ledru-Rolin, Duvergier de Hauranne, Crémieux, M. Barthe, Gaslonde, de Luppé, Arnaud (de l'Ariège), Thiers, Considerant, Bouhier de l'Ecluse, Martin-Bernard, Billault, Dufaure, Goudchaux, et Lagrange (texts revue par les orateurs), suivis de l'opinion de MM. Marrast, Proudhon, Louis Blanc, Ed. Laboulaye et Cormenin; avec des observations inédites par MM. Léon Faucher, Wolowski, Fréd. Bastiat, de Parieu, et une introduction et des notes par M. Joseph Garnier (Paris : Guillaumin, 1848), pp. 373-376.] See the discussion on "The Right to Work."
VI. The Middlemen [final draft]Society is the set of services that men render each other, either by force or voluntarily, i.e. public services and private services.
Public services, imposed and regulated by law, which is not always easy to change when it would be advisable, may, with the help of that law, far outlive their real usefulness and retain the name of public services, even when they are no longer services at all or even when they are nothing more than public vexations. Private services lie in the field of voluntary action and individual responsibility. Each person renders and receives what he wants or what he can, following face to face discussion. They are always characterized by the presumption of genuine utility, accurately measured by their comparative value.
This is why public services are so often characterized by immobility while private services conform to the law of progress.
While the excessive development of public services tends to constitute within society, through the wastage of energy that it entails, a disastrous form of parasitism, it is singularly notable that several modern schools of thought, attributing this tendency to free and private services, seek to transform all jobs into state functions.41
These thinkers savagely attack what they describe as middlemen. They would happily abolish capitalists, bankers, speculators, entrepreneurs, merchants and traders, accusing them of coming between production and consumption and holding both to ransom without adding value to either. Or rather they would like to transfer to the State the work they do, given that this work cannot be abolished.
The sophism of the socialists on this point consists in showing the public what they are paying middlemen in return for their services and hiding from them what they would have to pay the State. It is a constant struggle between what is obvious at a glance and what can be perceived only by the mind, between what is seen and what is not seen.
It was above all in 1847 and during the subsequent famine42 that the socialist schools sought and succeeded in popularizing their disastrous theory. They knew full well that the most absurd propaganda always has some chance of success with men who are suffering; malesuada fames43.
Therefore, with the aid of high sounding words: the exploitation of man by man, speculation on hunger, monopolies, they set about denigrating trade and casting a veil over its benefits.
"Why", they said, "leave traders the task of importing the necessities of life from the United States and the Crimea?44 Why do the State, the departments and districts not organize a system of procurement and some storage warehouses? They would sell at cost price, and the people, the poor people, would be free of the tribute they pay to free trade, that is to say trade that is selfish, individualistic and anarchic."
The tribute that the people pay to trade is what is seen. The tribute that the people would pay to the State or its agents under the socialist system is what is not seen.
In what does the alleged tribute that the people pay to trade consist? In this: two men render each other mutual service45 in total freedom under the pressure of competition and at an agreed price.
When a stomach that is hungry is in Paris and the wheat that is able to satisfy it is in Odessa, suffering will cease only when the wheat is brought to the stomach. There are three ways of bringing about this coming together: 1. The starving men can go to seek the wheat themselves; 2. They can delegate this task to those who have specialized in it; 3. They can have themselves taxed and entrust this operation to civil servants.
Of these three alternatives, which is the most advantageous?
In every age and in all countries, especially where they enjoyed greater freedom and were more enlightened and experienced, men have voluntarily chosen the second alternative, which I must admit is enough in my view to attribute the benefit of doubt to this choice. My mind refuses to admit that humanity in the mass would make a mistake on a point that has such a direct effect on it.46
Nevertheless, let us examine the question.
That thirty-six million citizens leave to go to Odessa to look for the wheat they need is obviously impracticable. The first alternative is valueless. Consumers cannot act on their own behalf; they have to resort to intermediaries, civil servants or traders.
However, we should note that this first alternative would be the most natural. Basically, it is up to the person who is hungry to go to find his wheat. This is a task that concerns him; a service that he owes himself. If another person, for whatever reason renders him this service and undertakes this task on his behalf, this person is entitled to compensation. What I am saying here serves to emphasize that the services of middlemen involves a principle of remuneration.
Be that as it may, since it is necessary to resort to someone the socialists call a parasite, which one, a trader or a civil servant, is the less demanding parasite?
Trade (I assume it to be free, otherwise how could I reason?), trade, as I say, out of its own interest tends to examine the seasons and note on a daily basis the state of the harvest, gather information from all corners of the globe, anticipate need and take the necessary precautions beforehand. It has ships ready, correspondents everywhere and its immediate interest is to buy at the best possible price, make savings on each detail of the operation and achieve the best results with the least effort. It is not only French traders, but traders the world over who are involved in procurement for France against her day of need, and if self-interest drives them invariably to fulfill their task at the least cost, the competition they wage with each other leads them no less invariably to allow consumers to benefit from all the savings achieved. Once the wheat arrives, it is in the interest of trade to sell it as soon as it can to minimize its risks, realize its funds and start again if necessary. Driven by a comparison of prices, it distributes foodstuffs around the whole country, always starting with the most expensive point, i.e. where the need is most pressing. It is therefore not possible to imagine an organization more in line with the interests of those who are hungry, and the beauty of such an organization, not noticed by the socialists, results precisely from the fact that it is free. In truth, consumers are obliged to reimburse trade with the cost of its transport, its transshipments, its storage and commissions, etc., but under what system does he who eats the wheat not have to reimburse the expenditure required to bring it to him? In addition the service rendered has to be paid for, but with regard to its proportion, this is reduced to the minimum possible by competition, and, as for its justice, it would be strange for the artisans in Paris not to work for the traders in Marseilles when the traders in Marseilles work for the artisans in Paris.
What would happen if the State took the place of trade in accordance with the socialist schema? Would someone please tell me where the saving would be for the public? Would it be in the purchase price? Just picture to yourself the delegates of forty thousand communes arriving in Odessa on a given day and at a time of need; just imagine the effect on prices. Would the saving lie in the costs? Would we need, however, fewer ships, fewer sailors, less transshipment, less warehousing or would we be relieved of having to pay for all of these things? Would it lie in the profits of the traders? Would your delegates and civil servants go to Odessa for nothing? Would they travel and work in accordance with the principle of fraternity? Do they not have to live? Does their time not need to be paid for? And do you think that this will not exceed a thousand times the two or three percent that the trader earns, a rate he is ready to work for?
And then, think of the difficulty of raising so many taxes and distributing so much food. Think of the injustice and abuse that is inseparable from an enterprise of this nature. Think of the responsibility that would weigh on the government.
The socialists, who have invented such folly and who, on days of misfortune, instill them into the minds of the masses, freely award themselves the accolade of progressive men, and it is not without danger that custom, that tyrant of languages, endorses the expression and the opinion it implies. Progressive! This implies that these fine fellows are more farsighted than the common man, that their sole error is to be too far ahead of their century and that if the time has not yet come to abolish certain free services that are alleged to be parasitic, the fault lies with the public, which lags behind socialism. For me, both in soul and conscience it is the contrary that is true, and I do not know to which barbaric century you would have to return to find the present level of socialist understanding in this respect.
Modern sectarians constantly contrast association47 with the current form of society. They do not appreciate that under a regime of liberty, society is a genuine association far better than all those that their fertile imagination engenders.
Let us illustrate this by an example:
In order for a man, when he gets out of bed, to be able to put on a suit of clothes, a piece of land has to have been fenced, cleared, drained, ploughed and sown with a specific type of plant. Flocks have to have grazed there and given their wool, this wool has to have been spun, woven, dyed and made into cloth and this cloth has to have been cut, sewn and made into a garment. And this series of operations implies a host of others, for it requires the use of farming machinery, sheepfolds, factories, coal, machines, vehicles, etc.
If society were not a genuine association, the man who wanted a suit of clothes would be reduced to working in isolation, that is to say, he would have to carry out himself the many tasks in this series, from the first blow of the pick that initiates it to the final stitch of the needle that completes it.
However, thanks to the sociability that is the distinctive characteristic of our species, these operations are shared out among a host of workers, and they are increasingly subdivided for the common good, until a point is reached where a single specialized task can support an entirely new industry as consumption becomes more intense. Then comes the distribution of the income generated according to whatever value each person has contributed to the total operation. If this is not association, I do not know what is.
Note that none of the workers having been able to draw even the minutest thing of substance from nothing, they have limited themselves to providing each other with mutual services,48 helping each other in line with a common goal, and that all may be considered as middlemen with regard to one another. If, for example, during an operation, transport became important enough to occupy one person, spinning another and weaving a third, why would the first be regarded as more parasitic than the two others? Is transport not necessary? Does he who carries it out not devote time and trouble to it? Does he not spare his associates this time and trouble? Do his associates do more than him or simply other things? Are they not all equally subject to the law of a freely negotiated price with regard to their pay, that is to say for their share of the product? Is it not in total freedom and for the common good that this separation of tasks is carried out and these arrangements made? Why then do we need a socialist to come to destroy our voluntary arrangements on the pretext of organization, stop the division of labour, substitute isolated effort for joint effort and cause civilization to take a backward step?
Is association, as I describe it here, any less an association because each person enters into it and leaves it of his own volition, chooses his own place in it, is responsible for his own judgements and stipulations, and brings to it the stimulus and guarantee of personal interest? For it to merit this name, is it necessary for a would-be reformer to come and impose on us his formula and will and concentrate humanity, so to speak, in himself?
The more we examine these progressive schools, the more we are convinced that there is just one thing at their root: ignorance proclaiming itself infallible and laying claim to despotism in the name of this infallibility.
I beg the reader to excuse this digression. It is perhaps not without point at a time when declarations against Middlemen have escaped from books by the Saint-Simonians, phalansterians and icarians,49 and invaded journalism and the public platform, causing a serious threat to freedom of work and exchange.
Notes41 This was true for the followers of the socialists Louis Blanc, Charles Fourier, and the Montagnard faction in the Chamber in 1848. It was not true for the socialist anarchist Proudhon. See the glossary entries on "The Socialist School," "Blanc," "Fourier," and "Proudhon."
42 Crop failures in 1846, especially in Ireland with the spread of the potato blight, cause considerable hardship and a rise in food prices in 1847 across Europe. Some historians also believe this was a contributing factor to the outbreak of revolution in 1848. The Economists believed that this could have been alleviated if there had been international free trade in grain and other food stuffs which would have allowed surpluses from some areas to be sold in areas where there were shortages. The successful repeal of the Corn Laws in Britain in May 1846 (but which not take full effect until 1849) by Richard Cobden and the Anti-Corn Law League was a first step in this direction. See glossary entries on "Cobden," "Anti-Corn Law League," and "The Corn Laws." See Vanhaute, Eric, C. O'Grada & R. Paping, "The European subsistence crisis of 1845-1850. A comparative perspective." in: Vanhaute E., C. O'Grada & R. Paping (eds.), When the potato failed. Causes and effects of the 'last' European subsistence crisis, 1845-1850. Turnhout: Brepols Publishers, 2007:15-42.
43 The Latin phrase "malesuada Fames" (ill-councelling famine) is from Virgil's Aeneid (VI, 276). In John Dryden's translation it is rendered as "Famine's unresisted rage". See Virgil's Aeneid, trans. John Dryden with Introduction and Notes (New York: P.F. Collier and Son, 1909). THE SIXTH BOOK OF THE ÆNEIS </title/1175/217545>.
44 Four factors led to the opening up of world trade in agricultural products after the "Hungry 1840s": the rise in European prices caused by the crop failures of the late 1840s, the freeing up of grain markets in Britain and then other European countries, the reduction in shipping costs, and the rise of large grain markets in the United States and the port of Odessa in the Crimea. From zero wheat imports from the United States to Britain in 1846, the level rose to 1,000 metric tonnes per annum by 1862.
45 Bastiat uses the phrase "se rendent réciproquement service" See the glossary entry on "Servie for Service".
46 (Paillottet's note) The author has often invoked the presumption of truth that is attached to the universal agreement shown by the practice followed by men. See in particular page 79 of chapter XIII of the Sophisms in Tome IV followed by page 441, then the appendix to chapter VI entitled the Morality of Wealth in Tome VI. . The reference is to chap. XIII "Théorie, Pratique" (Theory and Practice) in the Economic Sohphisms Part I, and the pamphlet "Propriété et Spoliation" (Property and Plunder) in OC vol. 4; and to chapter VI "Richesse" (Wealth) in Economic Harmonies in OC vol. 6.
47 Bastiat is using the word "association" in its socialist sense as it had become a slogan used by socialist critics of the free market during the 1840s. See the glossary entry on "Association and Organization."
48 Bastiat uses the phrase "se rendre des services réciproques." See the glossary entry on "Servie for Service".
49 Saint-Simonians, phalansterians and icarians: followers of Saint-Simon, Charles Fourier, and Étienne Cabet respectively. See the glossary entries on "Saint-Simon," "Fourier," and "Cabet".
VII. Trade Restrictions [final draft]Mr. Prohibant 50 (it is not I who have given him this name, it is Mr. Charles Dupin51 who since the, … but then …) devoted his time and his capital to transforming the ore on his land into iron. As nature had been more prodigal toward the Belgians, they supplied iron to the French cheaper than Mr. Prohibant, which means that all Frenchmen or France herself were able to obtain a given quantity of iron with less labor by buying it from the honest Flemings. Driven by their self-interest, they did not fail to do so, and every day you could see a host of nail-makers, blacksmiths, wheelwrights, mechanics, farriers and ploughmen going on their own account or through middlemen to obtain supplies from Belgium. This did not please Mr. Prohibant at all.
First of all, the idea came to him to stop this abuse using his own forces. This was certainly the least he could do, since he alone was harmed by the abuse. "I will take my rifle," he said to himself, "I will put four pistols in my belt, I will fill my cartridge pouch, I will buckle on my sword and, thus equipped, I will go to the border. There, I will kill the first blacksmith, nail-maker, farrier, mechanic or locksmith who comes to do business with them and not with me. That will teach him how to conduct himself properly."
When he was about to leave, Mr. Prohibant had second thoughts, which mellowed his bellicose ardor somewhat. He said to himself: "First of all, it is not totally out of the question that my fellow-citizens and enemies, the purchasers of iron, will take this action badly, and instead of letting themselves be killed they will kill me first. Next, even if I marshal all my servants, we cannot guard all the border posts. Finally, this action will cost me a great deal, more than the result is worth."
Mr. Prohibant was about to resign himself sadly to being merely as free as anyone else when a flash of inspiration shone in his brain.
He remembered that in Paris there was a great law factory.52 "What is a law?" he asked himself. "It is a measure to which everyone is required to comply once it has been decreed, whether it is good or bad. To ensure the execution of the aforesaid, a public force is organized, and in order to constitute the said public force, men and money are drawn from the nation.
If, therefore, I succeeded in obtaining from the great law factory a tiny little law that said: "Iron from Belgium is prohibited," I would achieve the following results: the government would replace the few servants I wanted to send to the border by twenty thousand sons of my recalcitrant blacksmiths, locksmiths, nail-makers, farriers, artisans, mechanics and ploughmen. Then, in order to keep these twenty thousand customs officers53 in good heart and health, it would distribute twenty five million francs taken from these same blacksmiths, nail-makers, artisans and ploughmen. The security would be better done, it would cost me nothing, I would not be exposed to the brutality of the dealers, I would sell iron at my price and I would enjoy the sweet recreation of seeing our great nation shamefully bamboozled. That would teach it to claim incessantly to be the precursor and promoter of all progress in Europe. Oh! That would be a smart move and is worth trying."
Therefore, Mr. Prohibant went to the law factory. Perhaps on another occasion I will tell you the story of his underhand dealings; right now I merely want to talk about his very visible actions. He put the following consideration to the venerable legislators:
"Belgian iron is being sold in France for ten francs, which obliges me to sell mine at the same price. I would prefer to sell it at fifteen and cannot do so because of this God damned Belgian iron.54 Please manufacture a law that says: 'Belgian iron will no longer come into France.' I will immediately raise my price by five francs and the result will be:
For each quintal55 of iron I deliver to the public, instead of receiving ten francs, I will receive fifteen. I will become richer faster and will expand my operation, giving work to more workmen. My workers and I will spend more money to the great benefit of our suppliers for several leagues around. As these suppliers will have more markets, they will give more orders to various other producers, and from one sector to another the entire country will increase its activity. This fortunate hundred sou coin that you drop into my coffer will radiate outwards to the far corners of the country an infinite number of concentric circles, just like a stone thrown into a lake."56
Pleased to hear this speech and delighted to learn that it is so easy to increase the wealth of a nation by means of the law, the lawmakers voted for the restriction. "What do people say about work and economics?" they said, "What use are these painful means of increasing national wealth where one Decree suffices?"
And in fact, the law produced all the consequences forecast by Mr. Prohibant. The trouble was that it also produced others for, to do him justice, he had not reasoned falsely but incompletely. Petitioning for a privilege, he had pointed out those of its effects that are seen, leaving those that are not seen in the shadows. He presented two people only, when there are three in the cast.57 It is up to us to put right this involuntary or perhaps premeditated oversight.
Yes, the écu thus diverted by law to the coffers of Mr. Prohibant constitutes a benefit for him and for those whose work he is bound to stimulate. And if the decree had caused this écu to come down from the moon, these beneficial effects would not be counterbalanced by any compensating bad effects. Unfortunately, it is not from the moon that the mysterious hundred sou coin comes, but rather from the pockets of a blacksmith, nail-maker, wheelwright, farrier, ploughman or builder, in short from the pocket of Jacques Bonhomme,58 who will now pay it without receiving one milligram more of iron than he did at the time when he paid ten francs. At first sight you have to see that this changes the question considerably, since very clearly the Profit made by Mr. Prohibant is offset by the Loss made by Jacques Bonhomme, and everything that Mr. Prohibant is able to do with this écu to encourage national production, Jacques Bonhomme could also have done. The stone is merely cast into a particular point on the lake because it has been prevented by law from being cast into another.
Therefore, what is not seen offsets what is seen and up to now in the remainder of the operation, there remains an injustice, and what is deplorable is that it is an injustice perpetrated by the law.
Nor is this all. I have said that a third person is always left in the shadow. I must bring him forward here so that he can show us a second loss of five francs. Then we will have the result of the entire operation.
Jacques Bonhomme is the possessor of 15 francs, the fruit of his labors. We are still in the period in which he is free. What does he do with his 15 francs? He buys a fashionable article for 10 francs, and with this fashionable article he pays (or the middleman pays on his behalf) for the quintal of Belgian iron. Jacques Bonhomme still has 5 francs left. He does not throw them into the river59 but (and this is what is not seen) gives them to a businessman in one productive sector or another in exchange for a particular purchase he desires, for example, to a bookseller for the 'Discourse on Universal History' by Bossuet.60
Thus, with regard to national output, it is stimulated to the extent of 15 francs, as follows:
10 francs for the Parisian article;
5 francs for the book.
As for Jacques Bonhomme, for his 15 francs, he obtains two objects of his preference, as follows:
1. One quintal of iron;
2. A book.
Now the decree comes into force.
What happens to Jacques Bonhomme's situation? What happens to national production?
When Jacques Bonhomme hands over his 15 francs down to the last centime to Mr. Prohibant for one quintal of iron, he is limited to whatever economic satisfaction is provided by this quintal of iron. He loses the benefit provided by a book or any other equivalent object. He loses 5 francs. We agree on this; we cannot fail to agree on this, we cannot fail to agree that, where a policy of trade restriction raises the price of things, consumers lose the difference.
But, you will say, national production gains this difference.
No it does not for, following the decree, it is merely stimulated as it was before, to the extent of 15 francs.
The only thing is that, following the decree, Jacques Bonhomme's 15 francs go to the iron industry, whereas before the decree they were shared between the fashionable article and the bookshop.
The violence exercised at the border by Mr. Prohibant himself or that which he has exercised through the law may be considered to be very different from the moral point of view. Some people think that plunder loses all its immorality when it is legal. For my part, I cannot imagine a circumstance that is worse. Be that as it may, what is certain is that the economic results are the same.
View the matter from whatever angle you wish, but keep a sagacious eye and you will see that nothing good ever comes from plunder, whether legal or illegal. We do not deny that a profit of 5 francs results for Mr. Prohibant or his industry or, if you wish, for national production. But we do claim that two losses also result, one for Jacques Bonhomme who pays 15 francs for what he had for 10 and the other for national production, which no longer receives the balance. Choose whichever of these two losses you please to set against the profit that we acknowledge. The other will be no less of a dead loss.
The Moral: The use of violence is not to produce but to destroy. Oh! If the use of violence was to produce, our France would be much richer than she is.
Notes50 Bastiat borrows the made up name "M. Prohibant" [from "prohiber" to prohibit; "prohibant" prohibiting, thus "Mr. Trade Prohibiter" or "Mr. Protectionist"] from a popular work written by the Baron Charles Dupin (1784-1873) in the late 1820s Le petit producteur français, in 7 vols. (1827). This was an early attempt to dispel similar economic sophisms to those Bastiat was addressing in 1845 onwards. Dupin states in the "Dedication" to vol. 4 (entitled "Le petit commerçant français") to the "students of the Business schools of Paris, Lyon, and Bordeaux" that he was dedicating this work to them "with the aim of refuting the long term and entrenched errors concerning the interests of commerce". Dupin uses the made up person of M. Prohibant to represent those who continue to cling to anti-free trade and anti-free market sentiments. (pp. ix-x). It is of course interesting to note that Bastiat also dedicates his Economic Harmonies (1850) to the "Youth of France" for similar reasons. Dupin's work might also be compared to other attempts by free market supporters to appeal to a popular audience, such as Jane Marcet and Harriet Martineau. See the glossary entries for "Dupin," "Marcet," and "Martineau."
51 Charles Dupin (1784-1873) was a pioneer in mathematical economics and worked for the statistical office of France. In 1828 he was elected deputy for Tarn, was made a Peer in 1830, and served in the Constituent and then the National Assemblies during the Second Republic. See the glossary entry on "Dupin."
52 Bastiat calls the Chamber "la grande fabrique de lois" (the great law factory).
53 Horace Say, like Bastiat, calls those who work for the Customs Service "une armée considérable" (a sizable army) which numbered 27,727 individuals (1852 figures). This army is composed of two "divisions" - one of administrative personnel (2,536) and the other of "agents on active service" (24,727). See Horace Say, "Douane", DEP, vol. 1, pp. 578-604 (figures from p. 597). According to the Budget papers for 1848 the Customs Service collected fr. 202 million in customs duties and salt taxes and their administrative and collection costs totalled fr. 26.4 million or 13% of the amount collected. See Appendix 4 "French Government Finances 1848-1849."
54 Bastiat uses the expression "que Dieu maudisse" (what God would damn) which is much stronger than the other occasion he uses the word "damned" in the title of his essay on money "Damned Money!" (April 1849). See vol. 4 of the Collected Works (forthcoming). In the following article, "Machines," he begins with the exclamation "Malédiction sur les machines!" (a curse on machines!).
55 A quintal weighed 100 pounds under the Old Regime and 100 kilogrammes (220 pounds) in post-revolutionary France. See "Weights and Measures" in Appendix 3 "Economic Policy and Taxation."
56 This is a reference to Bastiat's notion of the "ricochet" or flow on effect by which he meant the indirect consequences of an economic action which flow or knock on to third parties, sometimes with positive results but more often with negative results. In several of his statements of this Bastiat uses the analogy of stones or pebbles being dropped in bodies of water thus causing ripples which spread outwards to thousands of third parties who are affected. He also talks about lines of radiation which stretch out to infinity. See the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
57 This is a reference to Bastiat's principle of the "double incidence of loss" which he developed in ES3 IV. ""One Profit versus Two Losses" in May 1847 and took further in the pamphlet "What is See and What is Not Seen" (July 1850). By this he meant that, for example, claims that tariffs result in a profit for one industry hides the fact that two other groups suffer losses: an equal loss for another industry and an equal loss for the consumer, resulting in a net "double incidence of loss" to the nation as a whole. See the glossary on "The Double Incidence of Loss" and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
58 "Jacques Bonhomme" (literally Jack Goodfellow) is the name used by the French to refer to "everyman," sometimes with the connotation that he is the archetype of the wise French peasant. Bastiat uses the character of Jacques Bonhomme frequently in his constructed dialogues in the Economic Sophisms as a foil to criticise protectionists and advocates of government regulation. The name Jacques Bonhomme was given to the small magazine that Bastiat and Molinari published and handed out on the street corners of Paris in June and July 1848. See the glossary entry "Jacques Bonhomme [person]."
59 In the words of the English campaigner against the Corn Laws, Perronet Thompson (1783-1869) who influenced Bastiat in his thinking on this topic, remarks that the French tariff laws were tantamount to an order that every Frenchman throw every "third franc into the sea." See "A Running Commentary on Anti-Commercial Fallacies" (1834), p. 189. See the glossary entry on "Perronet Thompson."
60 Jacques Bénigne Bossuet (1627-1704) was bishop of Meaux, an historian, and tutor to the son of Louis XIV. In politics he was an intransigent Gallican Catholic, opponent of Protestantism, and a supporter of the idea of the divine right of kings. He wrote a Discours sur l'histoire universelle (1681). Bastiat is having a joke here as this book is not what Jacques would probably buy if he had any spare cash.
VIII. Machines [final draft]"May machines be cursed!61 Every year their increasing power consigns to Poverty millions of workers by taking away their work, and with work their pay and with their pay their Bread! May machines be cursed!"
This is the cry of the popularly held Prejudice whose echo resounds around the journals.
But to curse machines is to curse the human mind.
What staggers me, though, is that there can be a single man who feels at ease with a doctrine like this.62
For in the end, if it is true, what is the logical consequence of this? It is that there is no activity, well-being, wealth or happiness possible other than for people that are stupid or afflicted with mental immobility, to whom God has not given the disastrous gift of thinking, observing, putting things together, inventing or obtaining the greatest results using the least means. On the contrary, rags, dreadful hovels, poverty and starvation are the inevitable fate of any nation that seeks and finds in iron, fire, wind, electricity, magnetism, the laws of chemistry and mechanics, in a word in the forces of nature, a complement to his own strength and it is therefore appropriate to say with Rousseau: "Any man who thinks is a depraved animal."63
That is not all. If this doctrine is true, since all men think and invent, since they all in fact from the first to the last and at every moment of their existence seek the co-operation of the forces of nature, to do more with less, to reduce either their labor or the labor for which they are paying, to achieve the greatest amount of economic satisfaction possible with the least amount of work, it has to be concluded that the entire human race is being drawn toward its downfall, precisely through this intelligent aspiration to progress that torments each of its members.
This being so, it ought to be verified by statistics, that the inhabitants of Lancaster are fleeing from this land of machines and are going to seek work in Ireland where machines are unknown; and by history, that barbarism darkened the eras of civilization and that civilization shines in times of ignorance and savagery.
Obviously, in this heap of contradictions there is something that stands out and warns us that the problem hides the element of a solution that has not been sufficiently clarified.
This is the entire secret: behind what is seen lies what is not seen. I will endeavor to shed light on it. My case can be only a repetition of the preceding one, since the problem involved is identical.
Men are naturally inclined, if they are not forcibly prevented from this, to seek low prices, that is to say, to seek that which, for an equal amount of satisfaction, saves them work, whether these low prices result from a skillful foreign producer or an efficient mechanical producer.
The theoretical objection made to this preference is the same in both cases. In both of them it is blamed for seeming to paralyze labor. In fact, what determines this preference for low prices is precisely the fact that labor is not made idle but more readily available.
And this is why in both cases the same practical obstacle is put in its way, namely violence. Legislators prohibit foreign competition and forbid mechanical competition. For what other means can there be to stop a natural preference in all men other than to deprive them of their liberty?
It is true that in many countries legislators strike just one of these two forms of competition and limit themselves to complaining about the other. This proves one single thing, which is that in these countries legislators are inconsistent.
We should not be surprised at this. When taking the wrong road, people are always inconsistent, otherwise the human race would be annihilated. An erroneous principle has never been seen and will never be seen to be taken to its logical conclusion. I have said elsewhere that inconsistency is the limit of absurdity. I might have added that it is at the same time proof of it.
Let us proceed with our argument; it will not take much time.
Jacques Bonhomme had two francs, which he paid two workers he had hired.
What does he do, however, but devise a system of ropes and weights that reduces the work by half.
He therefore obtains the same satisfaction, saves one franc and dismisses one worker.
He dismisses one worker; that is what is seen.
And if this is all that is seen, it is said: "This is how poverty follows civilization, this is why freedom is fatal to equality. The human mind has made an advance and a worker immediately falls into the abyss of poverty. Alternatively, it may happen that Jacques Bonhomme continues to employ the two workers but now pays them just ten sous each, for they will compete with each other and offer their services at a discount. This is how the rich grow ever richer and the poor ever poorer. We must reform society."
What a fine conclusion and one worthy of its introduction!
Fortunately, both introduction and conclusion are entirely wrong, since behind the half of the phenomenon that is seen there is the other half that is not seen.
What is not seen is the franc saved by Jacques Bonhomme and the necessary effects of this saving.
Since Jacques Bonhomme now spends just one franc on labor in order to achieve a given level of satisfaction as a result of his invention, he still has one more franc.
If therefore there is a worker anywhere in the world who offers his idle hands, there is also somewhere in the world a capitalist who offers his unused franc. These two elements come together and join forces.
And it is as clear as daylight that between the supply and demand for work, between the supply and demand for pay, the relationship has changed not one whit.
The invention and one worker, paid for with the first franc, now carry out the work that two workers did before.
The second worker, paid with the second franc, brings into existence a new job.
What has changed in the world then? There is now an additional nation-wide satisfaction, in other words the invention, which is a free advance and a free source of profit for the human race.
From the structure I have given my argument, this conclusion could be drawn:
"It is the capitalist who gathers all the benefits of machines. The wage-earning class, while experiencing momentary suffering, never benefit from them, since according to your own premises machines displace part of the national output, without reducing it, it is true, but also without increasing it."
It is not in the scope of this short article to reply to all the objections. Its sole aim is to combat a popularly held prejudice, one that is highly dangerous and very widespread. I wanted to prove that a new machine makes not only a certain number of workers available but also, and inevitably, the money needed to pay for them. These workers and this pay come together to produce what it was impossible to produce before the invention, from which it follows that the final result it produces is an increase in the amount of satisfaction for an equal input of labor.
Who benefits from this extra economic satisfaction?
Who? First of all, the capitalist, the inventor, the first person who successfully uses the machine which is the reward for his genius and audacity. In this case, as we have just seen, he achieves a saving on the production costs which, however it is spent (and it is always spent), makes use of as much labor as the machine has caused to be laid off.
However, competition soon obliges him to lower his sales price to the extent of this saving itself.
And when this happens, it is no longer the inventor who benefits from the invention, but the purchaser of the product, the consumer, the general public, including the workers, in a word, the human race.
And what is not seen is that the Saving procured for all consumers forms a fund from which wages are paid, replacing those eliminated by the machine.
Thus, using the above example, Jacques Bonhomme obtains a product by spending two francs on workers' wages.
Thanks to his invention labor now costs him only one franc.
As long as he sells the product at the same price, there is one less worker employed in making this particular product; that is what is seen. However, there is one worker more employed using the franc that Jacques Bonhomme has saved; that is what is not seen.
When, in the natural progress of things, Jacques Bonhomme is reduced to lowering the price of the product by one franc, he will no longer be making any saving; he will then no longer have a franc with which to make some new demand upon national output. However, in this respect, the purchaser of Jacques' product takes his place, and this purchaser is the human race. Whoever buys the product pays one franc less for it, saves one franc and of necessity makes this saving available to the fund which finances wages; that is also what is not seen.
This problem concerning machines has been given another solution based on facts.
It has been said: Machines reduce production costs and the price of the product. The reduced price of the product triggers an increase in consumption, which requires an increase in production, and in the end the employment of as many workers or more, after the invention, as were needed before. In support of this, mention is made of the printing industry, spinning, the press, etc.
This argument is not scientific.
We would need to conclude that if the consumption of a particular product remains static or nearly so, machines would damage the demand for labor. This is not so.
Let us suppose that in a particular country all men wear hats. If, using a machine, people succeeded in reducing their price by half, it would not necessarily result that men would buy twice as many.
Would it then be said in this instance that part of national production had been rendered inert? Yes, according to the popular argument. No, according to mine; for while in this country no one would buy a single extra hat, the entire fund for wages would remain no less safe. The reduction in the flow of funds to the hat-making industry would reappear in the Savings made by all consumers, and from there would go on to finance all the labor that the machine had made redundant, and stimulate new development across all industries.
And this is what happens. I have seen journals that used to cost 80 francs, which now cost 48. This is a saving of 32 francs for subscribers. It is not certain, or at any rate, not inevitable, that these 32 francs continue to go into journalism. What is certain and essential is that, if they do not go in this direction, they go in another. One person will use them to buy more journals, another to eat better, a third to clothe himself better and a fourth to buy better furniture.
In this way, industries are interdependent. They form a huge entity in which every part communicates with every other part through hidden channels. What is saved in one benefits all.64 What is important is to understand fully that never, ever, are savings made at the expense of labor and pay.65
Notes61 Bastiat uses the word "malédiction". See the previous note on Luddites, pp. ??? below. See the glossary entry on "Luddites."
62 (Paillottet's note) See pages 86 and 94 of chapters XIV and XVIII of the first series of the Sophisms and the reflections addressed to Mr. Thiers on the same subject in Tome VI and chapter XI hereafter in this volume. . This is a reference to chap. XIV "Conflit de principes" (Conlict of Principles) and chap. XVIII "Il n'y a pas de principes absolus" (There are no Absolute Principles) in Economic Sophisms Part I in vol. 4 OC (Paillottet is incorrect in stating that these are in vol. VI); and to Reflections addressed to Thiers (p. 538 vol. ???); and to chap. XI "Éparges et luxe" (Savings and Luxury) of "What is Seen" in vol. 5 OC.
63 From the First Part of Rousseau's Discourse on Inequality (1754): "most of our ills are of our own making, and that we might have avoided nearly all of them if only we had adhered to the simple, unchanging and solitary way of life that nature ordained for us. If nature destined us to be health, I would almost venture to assert that the state of reflection is a state contrary to nature, and that the man who meditates is a depraved animal." See Jean-Jacques Rousseau, A Discourse on Inequality (Penguin, 1984), p. 84, or Oeuvres politiques (Ehrard 1975), p. 45. See the glossary entry on "Rousseau."
64 This a key passage in which Bastiat summarizes his thoughts on the interdependence of all industries in the economy, and how information is transmitted from one place to another via "canaux secrets" (secret or hidden channels) in a pre-Hayekian insight into how prices transmit information to dispersed economic actors. See also the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
65 (Paillottet's note) See chapters III and VIII in vol V.
IX. Credit [final draft]In all ages, but especially in the last few years, people have thought of making wealth universal by making credit universally available.66
I do not think I am exaggerating when I say that, since the February Revolution, presses in Paris have vomited out more than ten thousand brochures recommending this solution to the Social Problem.
Alas, this solution is based on a pure optical illusion, if an illusion can be said to constitute a base.
People start by confusing money with products and then they confuse paper-money with cash, and then from these two forms of confusion they claim to be plucking out something real.67
With respect to this question, it is absolutely essential to forget money, coins, notes and other instruments by means of which products are passed from hand to hand, in order to see just the products themselves, which are the true basis of lending.
For when a ploughman borrows fifty francs to buy a plough, he is not really being lent fifty francs but a plough.
And when a merchant borrows twenty thousand francs to buy a house, it is not twenty thousand francs that he owes, it is the house.
Money is there only to facilitate the agreement among several parties.
Pierre may not be willing to lend his plough and Jacques may be willing to lend his money. What does Guillaume do then? He borrows Jacques' money, and with this money he buys the plough from Pierre.
But in fact, no one borrows money for its own sake. One borrows money to obtain products.
Now, in no country can more products change hands than there are products available.
Whatever the sum of specie and paper in circulation, the total number of borrowers cannot receive more ploughs, houses, tools, provisions or raw materials than the entire group of lenders is able to supply.
So we should get it firmly into our heads that any borrower implies a lender and any borrowing a loan.
This having been said, what good can institutions of credit do? They can facilitate the means for borrowers and lenders to locate each other and enter into agreement. But what they cannot do is to increase instantly the quantity of objects borrowed and lent.
This is what would be necessary, however, if the aims of the Reformers were to be achieved, since they aspire to nothing less than putting ploughs, houses, tools, provisions and raw materials in the hands of all those who want them.
And what have they dreamt up to do this?
They propose the provision of a State guarantee for loans.
Let us go deeper into the question, for there is something in it that is seen and something that is not seen. Let us endeavor to see both of these.
Let us suppose that there is just one plough in the world and that two ploughmen would like to have it.
Pierre owns the only plough available in France. Jean and Jacques want to borrow it. Jean, through his probity, property and good reputation, offers guarantees for it. He is believed in; he has credit. Jacques does not inspire confidence, or inspires less confidence. Naturally, Pierre will lend his plough to Jean.
But now, under socialist inspiration, the State intervenes and tells Pierre: "Lend your plough to Jacques and I will guarantee its repayment; this guarantee is worth more than Jean's for he has only himself to speak for himself while I, I have nothing it is true, but I control the wealth of all the taxpayers, and it is with their money that I will pay you the principal and interest if need be."
Consequently, Pierre lends his plough to Jacques: that is what is seen.
And the socialists rub their hands together, saying: "See how our plan has succeeded. Through the intervention of the State, poor Jacques has a plough. He will no longer be forced to dig the earth; he is now on the road to wealth. It is an asset for him and a benefit for the nation taken as a whole."
No, Sirs! It is not a benefit for the nation, for here is what is not seen.
What is not seen is that the plough has been allocated to Jacques only because it has not been allocated to Jean.
What is not seen is that if Jacques ploughs instead of digging, Jean will be reduced to digging instead of ploughing.
As a result, what was desired as an increase in lending is merely a displacement of lending.
What is more, what is not seen is that this displacement implies two profound forms of injustice: an injustice to Jean who, after deserving and acquiring credit through his probity and activity, sees himself dispossessed; and an injustice to taxpayers who risk paying a debt that does not concern them.
Will it be said that the government offers Jean the same facilities as Jacques? But since there is just one plough available, two cannot be lent. The argument always returns to the claim that, thanks to the intervention of the State, more borrowing will occur than there are loans available, for the plough represents here the mass of capital available.
It is true that I have reduced the operation to its simplest level, but use the same touchstone to test the most complicated governmental institutions of credit and you will be convinced that this is the only result they can produce: displacing credit and not increasing it. In a given country and time there is just a certain sum of capital available, and all of it is invested. By guaranteeing those that are insolvent, the State may well increase the number of borrowers, thus raising the rate of interest (always to the disadvantage of the taxpayer), but what it cannot do is to increase the number of lenders and the total amount of lending.
Let no one attribute to me, however, a conclusion from which may God preserve me. I say that the Law should not artificially favor borrowings, but I do not say that it should artificially hinder them. If, in our mortgage system or elsewhere, there are obstacles to the dissemination and application of credit, let them be removed; nothing would be better or more just. But this is all, with freedom, that should be demanded of the Law by Reformers worthy of the name.68
Notes66 This is a reference to the debate between Bastiat and the socialist anarchist writer Proudhon on free credit which took place in Proudhon's journal La Voix du people between October 1849 and March 1850 and which was later published in book form, firstly by Proudhon as Intérêt et principle (1850) and then by Bastiat with an additional concluding chapter as Gratuité du crédit (1850). See Collected Works, vol. 4, pp. ??? (forthcoming).
67 Bastiat makes a distinction between two types of "money" here, "numéraire" (cash or hard money backed by gold or silver) and "papier monnaie" (paper money). We have translated "numéraire" as "money" throughout the book except, as in this passage, where a clear distinction has to be made between the two. See also Bastiat's most extended discussion of money in "Maudit l'argent!" (Damned Money!) (April 1849), CW vol. 4 (forthcoming). See also ES1 XI. "Nominal Prices" (October 1845), below, pp. ???
68 (Paillottet's note) See the end of the 12th letter in Free Credit on page 282 et seq. of this volume.
X. Algeria69 [final draft]But here are four speakers who struggle to control the rostrum. First of all, they all speak at the same time, then one after the other. What have they said? Certainly some very fine things on the power and grandeur of France, on the necessity of sowing in order to reap, on the brilliant future of our gigantic colony, on the advantage of sending off to distant places our surplus population,70 etc. etc. Magnificent examples of oratory which are always adorned with the following peroration:
"Vote in favor of fifty million (more or less) to build ports and roads in Algeria, in order to take settlers there, build them houses and clear fields for them. In doing this you will bring relief to French workers, stimulate work in Africa and expand trade in Marseilles. It is pure profit."71
Yes, that is true, if you consider the said fifty million only from the time that the State spends it, if you look at where this money is going, not where it came from, if you take account only of the good it will do on leaving the coffers of the tax collectors and not of the harm that has been done nor of the good that has been prevented when it entered these coffers. Yes, from this limited point of view, it is pure profit. The house built on the Barbary coast, that is what is seen; the port dug in on the Barbary coast, that is what is seen; the work stimulated on the Barbary coast, that is what is seen; fewer workers in France, that is what is seen; a major flow of goods to Marseilles, that is also what is seen.
But there is another thing that is not seen. It is that the fifty million spent by the State cannot be spent, as they might have been, by taxpayers. From all the good attributed to public expenditure carried out we must deduct all the harm done by preventing private expenditure, unless we go so far as to say that Jacques Bonhomme would have done nothing with the hundred sous he had earned and that taxes had taken from him. This is an absurd assertion, for if he took the trouble to earn them it is because he hoped to have the satisfaction of spending them. He would have rebuilt the fence around his garden and can no longer do so, that is what is not seen. He would have had his field marled72 and can no longer do so, that is what is not seen. He would have added a floor to his cottage and can no longer do so, that is what is not seen. He would have bought more tools and can no longer do so, that is what is not seen. He would have fed himself better, clothed himself better, educated his sons better, increased his daughter's dowry and can no longer do so, that is what is not seen. He would have joined the mutual aid society73 and can no longer do so, that is what is not seen. On the one hand various satisfactions are taken from him and the means of action destroyed in his very hands, and on the other the work by the laborer, carpenter, blacksmith, tailor or his village schoolmaster that he might have encouraged and that is now wiped out: all this too is what is not seen.
People count a great deal on the future prosperity of Algeria; so be it. But they should also take account of the doldrums into which, in the meantime, France is inevitably being sunk. I am being shown the trade in Marseilles, but if it is being achieved on the basis of taxes, I will always be able to show an equal volume of trade that has been destroyed in the rest of the country. It is being said: "Here is a settler who is being sent to the Barbary coast; this provides relief for the population remaining in the country." My reply is: "How can this be so if, by transporting this settler to Algiers you are also transporting there two or three times the amount of capital which would have afforded him a living in France?74
My sole aim is to make the reader understand that, in any public expenditure, behind the apparent good there is a harm that is more difficult to perceive. As far as I am able, I would like to instill in him the habit of seeing both of these and taking account of both of them.
When an item of public expenditure is put forward, it must be examined on its own merits, setting aside the resulting stimulus claimed for production, for this stimulus is an illusion. What public expenditure does in this respect, private expenditure would also have done. Therefore the alleged interests of production are always irrelevant.
An appreciation of the intrinsic merit of public expenditure made for Algeria is not part of the aim of this article.
However, I cannot refrain from making a general observation. Presumption is always unfavorable to collective expenditure carried out through taxes. Why? This is why:
First of all, justice always suffers because of it. Since Jacques Bonhomme had sweated to earn his hundred sou piece with some kind of satisfaction in mind, it is at least unfortunate that the tax authorities intervene to remove this satisfaction from Jacques Bonhomme to give it to someone else. Certainly, it is then up to the tax authorities or those who direct them to give good reasons for this. We have seen that the State gives a detestable reason when it says: "With these hundred sous I will give work to workers", since Jacques Bonhomme (as soon as he no longer entertains any blindness in this regard) will not fail to reply: "Good heavens! With one hundred sous, I will give them work myself!"
Setting aside this reason, other reasons are put forward in all their nakedness, making the argument between the tax authorities and poor Jacques Bonhomme extremely simple. If the State says to him: "I am taking one hundred sous from you to pay the gendarme who saves you from having to look after your own security, to pave the road you cross every day, to pay the magistrate who ensures respect of your property and freedom or to pay the soldier who defends our borders", Jacques Bonhomme would pay without a word, unless I am much mistaken. But if the State tells him: "I am taking your hundred sous to give you a subsidy of one sou if you farm your field well, or in order to teach your son what you do not want him to learn, or for the cabinet minister to add the hundred and first dish to his dinner; I am taking them to build a cottage in Algeria subject to taking one hundred sous more from you each year to keep a settler there, in addition to a further hundred to keep a soldier to guard the settler and yet another hundred to keep a general to guard the soldier, etc. etc.", I can almost hear poor Jacques cry: "This legal regime bears a strong resemblance to the legal regime which prevails in the Bondy Forest75!", and as the State has foreseen the objection, what does it do? It mixes up everything; it produces this detestable argument, which should not have any influence on the matter; it talks about the effect the many hundred sous have on production; it refers to the minister's cook and supplier, a settler, a soldier and a general all living off these five franc coins. It shows, in a word, what is seen, and as long as Jacques Bonhomme has not learnt to bring to the forefront what is not seen, he will be duped.76 This is why I am endeavoring to teach him to do this by means of frequent repetition.
Because public expenditure displaces production without increasing it, a second and serious presumption weighs against it. Displacing production is to displace workers and upset the laws of nature that govern the distribution of the population across the country. When 50 million is left to taxpayers, since taxpayers are everywhere, this sum stimulates work in the forty thousand communes in France. This money acts as a link to keep each person in his native area; it is spread to every possible worker and over all the forms of production imaginable. If the State withdraws this 50 million, gathers it together and spends it for a specific purpose, it attracts to this purpose a proportional quantity of displaced output, a corresponding number of uprooted workers, a floating population that has lost its position in society77 and is, I dare to say, dangerous once funds have run out! But the following happens (and here I return to my subject): this fevered activity, blown into a restricted space, in a manner of speaking, leaps to the eye, that is what is seen. The people applaud and marvel at the beauty and ease of the procedure and clamor for its continuation and extension. What is not seen is that an equal quantity of productive activity that is probably of a more sensible kind has been consigned to idleness throughout the rest of France.
Notes69 See Bastiat's comments on Algeria and colonization in his address "To the Electors of the District of Saint-Sever" (1846) in Collected Works, vol. 1, pp. 363-65, where he describes the colonial system as "the most disastrous illusion ever to have led nations astray." Algeria was conquered by France in 1830; the occupied parts were annexed to France in 1834; the new constitution of the Second Republic (1848) declared that Algeria was no longer a colony but an integral part of France (with three Départements) and that the emigration of French settlers would be officially encouraged and subsidized; Emperor Napoleon III returned Algeria to military control in 1858. In 1848 about 200,000 of the population out of 2.5 million were Europeans. See the glossary entry on "Algeria."
70 This is a reference to the Malthusian notion that there was a "surplus" population which could not be fed at the current rate of agricultural production. Thus, the population had to be "limited" in some way, in the long term by the exercise of "moral restraint" in having smaller families, or in the short term with some people having to be moved elsewhere such as to the colonies. Bastiat rejected this aspect of Malthusianism with two arguments: that people constituted a valuable form of "human capital" (although he did not use this phrase) which was very productive if left free to be so, and that the free market and free trade could could produce far more than merely "arithmetic increases" in output. For these heretical views views Bastiat provoked vigorous debate in the Political Economy Society, most of whose members were strict Malthusians. See the chapter on "Population" in Economic Harmonies (1850-51) [CW, vol. 5, forthcoming] and the Appendix "Bastiat on Malthus."
71 In a debate in the National Assembly in September 1848 (11th and 19th) a budget of fr. 50 million was allocated to the Ministry of War for the years 1848-51 to "establish agricultural colonies in the provinces of Algeria and for works of public utility intended to assure their prosperity" (p. 943). The exact number of colonists were not specified, although a figure of 12,000 for the year 1848 was mentioned. In a later Sophism Bastiat mentions the figure of fr. 100 million per year as the level of true expenditure on Algeria. The actual state subsidy granted to French colonists who wished to settle in Algeria is hard to determine. The pro-colonizer Gustave Vesian lobbied for a community of 10,000 colonists living in 3 towns who would get other state benefits such as irrigated land, a guaranteed market for their grain in the domestic market, seed and food (and wine) for 3 years to get established, and low interest loans. See Compte rendu des séances de l'Assemblée Nationale. Exposés des motifs et projets de lois présentés par le gouvernement; Rapports de MM. les Représentants. Tome troisième. Du 8 Août au 13 Septembre 1848. (Paris: Imprimerie de l'Assemblée Nationale (1850). Séance du 11 Septembre 1848, pp. 943-44; also Tome quatrième. Du 14 Septembre au 20 Octobre 1848 (1850), p. 117; and Gustave Vesian, De la colonisation en Algérie (Paris: Gabriel Roux, 1850). See the glossary entry on "Algeria."
72 Marl or marlstone is a sedimentary rock consisting of a mixture of clay and limestone which historically had been crushed and used a fertilizer.
73 The Economists believed that "associations des secours mutuels" (mutual aid societies, or Friendly Societies) were an important way in which ordinary workers could improve their economic situation without state assistance. Bastiat mentions them in an earlier sophism ES2 IV. "The Lower Council of Labour" (c. 1845) where he points out that there are legal impediments put in the way of their formation. His friend and colleague Gustave de Molinari had championed the idea of labour exchanges as a way in which workers could inform themselves about the availability of jobs and rates of pay all across Europe.
74 (Bastiat's note) The Minister of War stated recently that each person transported to Algeria cost the State 8,000 francs. Well, it is a stated fact that the unfortunate people concerned would have lived very well in France on a capital of 4,000 francs. My question is, how is the population of France being relieved when it is being deprived of one man and the means of subsistence for two? [See the glossary entry on "Algeria."]
75 The forest of Bondy is a large forest in the Département of Seine-Saint-Denis about 15 kilometres to the east of Paris. It was a notorious refuge for thieves and highwaymen. Hence one might translate Bastiat expression "le régime (légal) de la forét de Bondy" as "the law of the jungle" as does the FEE translator.
76 The words "duperie" (deceit) and "dupes" (those who are deceived) are key terms in Bastiat's theory of plunder ("spoliation"), according to which the plunderers ("les spoliateurs") deceive their victims by means of "la ruse" (deception, fraud) to justify and disguise what they are doing. By means of "Sophisms" (sophistical arguments and fallacies) the dupes are persuaded that the plundering of their property is necessary for the well-being of the nation and thus ultimately for their own good as well. See ES2 I. "The Physiology of Plunder" and the glossary entry on "Bastiat on Plunder."
77 Bastiat uses the expression "déclassée" which literally means "declassed".
XI. Thrift and Luxury [final draft]It is not only with reference to public expenditure that what is seen eclipses what is not seen. Leaving half the economic system in shadow as it does, this phenomenon ushers in a false moral code. It leads nations to consider their moral and material interests as antagonistic. Can anything be more demoralizing and sad? Let us see.
There can be no head of a household who does not see it as his duty to teach his children order, neatness, a sense of looking after things and economy and moderation in expenditure.
There is no religion that does not inveigh against ostentation and luxury. That is all very good, but on the other hand, what can be more popularly accepted than the following axioms:
"Hoarding dries up the veins of the people."
"The luxury of the great leads to the prosperity of the humble."
"Those who are prodigal ruin themselves but enrich the State."
"It is on the excess of the rich that the bread of the poor is sown."
Here, certainly, there is a flagrant contradiction between moral and social ideas. How many eminent minds rest in peace after having noted the conflict! This is what I have never been able to understand, as it seems to me that there is nothing more painful than to perceive two opposing tendencies in the human race. What! It is led to degradation by either of the two extremes! If it is thrifty, it falls into destitution; if it is prodigal, it ends up in the abyss of moral decay.
Fortunately, popularly accepted maxims show Thrift and Luxury in a false light as they take account only of their immediate consequences that are seen and not of the later effects that are not seen. Let us attempt to rectify this limited view of the matter.
Once Mondor and his brother Ariste,78 having shared their father's inheritance, have each an income of fifty thousand francs. Mondor exercises the fashionable kind of philanthropy. He is what is known as a veritable executioner of money. He buys new furniture several times a year and a new wardrobe every month. The ingenious ways he comes up with to get through his inheritance sooner are the talk of the town: in short, he eclipses the high-livers of Balzac79 and Alexander Dumas.80
This being so, you ought to hear the chorus of praise which always surrounds him! "Tell us about Mondor! Long live Mondor! He is the benefactor of the workers and the Providence of the people. It is true that he wallows in orgies and splashes mud all over passers-by;81 his dignity and human dignity in general are somewhat diminished. But what does it matter! If he is not useful himself, he makes himself useful by his wealth. He keeps money in circulation; his courtyard is always full of suppliers who always go away satisfied. Is it not said that if a gold piece is round it is so that it rolls?"
Ariste has adopted a very different lifestyle. While he is not selfish, he is at least an individualist, since he uses reason to govern his expenditure, seeks only moderate and reasonable pleasures, thinks of the future of his children and, to use the dreaded word, he is thrifty.
And you ought to hear what is said of him by the populace!
"What use is this mean rich man, this evil usurer!82 Doubtless, there is something imposing and touching in the simplicity of his lifestyle; besides, he is humane, benevolent and generous, but he calculates. He does not consume all his income. His town house is not constantly splendid and buzzing with life. What gratitude does he generate among upholsterers, coachbuilders, horse dealers and confectioners?"
These assessments that are damaging to the moral code are based on the fact that there is one thing that catches the eye: the expenditure of prodigal brother, and another that escapes it: the equal and even greater expenditure of the brother who saves.
However, things are so admirably organized by the divine inventor of social order that in this as in everything, Political Economy and the Morality, far from being in conflict, are in agreement with one another, and Ariste's wisdom is not only more dignified but also more profitable than Mondor's folly.
And when I use the term profitable, I do not just mean that it is profitable to Ariste or even to society in general, but more beneficial to the workers of today and current productive activity.
To prove this, you need cast only your mind's eye on the hidden consequences of human action that your physical eye does not see.
Yes, Mondor's prodigality has effects that are visible to all. Everyone can see his carriages, landaus, phaetons, the dainty paintings on his ceilings, his rich carpets, and the splendor that radiates from his town house. Everyone knows that his thoroughbreds run in races. The dinners he gives at his town house in Paris draw crowds on the pavement and people say: "Here is a good man who, far from keeping back some of his income, probably is eating into his capital." This is what is seen.
From the point of view of the workers' interests, it is not as easy to see what happens to Ariste's income. Let us follow it closely, however, and we will se that all of it, right down to the last obole, will provide work to workers, as certainly as Mondor's income does. There is just one difference: Mondor's wild expenditure is condemned to decrease constantly and come to an inevitable end, while Ariste's wise expenditure will increase from year to year.
And if this is so, the public interest will certainly be in line with the morality.
Ariste spends twenty thousand francs a year on himself and his household. If this were not enough to make him happy, he would not deserve to be called a wise man. He is touched by the misfortunes that weigh on the poor classes; he believes that in all conscience he is called upon to contribute some relief to them, and he devotes ten thousand francs to charity. Among the traders, manufacturers and farmers, he has friends who are temporarily on hard times. He finds out about their situation in order to be able to help them prudently and effectively and allocates another ten thousand francs to this work. Finally, he does not forget that he has daughters to provide a dowry for and sons whose future he has to ensure, and consequently he sets himself the duty to save and invest ten thousand francs each year.
Here then is the way his income is used:
1. Personal expenditure 20,000 francs
2. Charity 10,000 francs
3. Help to Friends 10,000 francs
4. Savings 10,000 francs
Let us take each of these headings and we will see that not one single obole escapes the national output.
1. Personal expenditure. With regard to workers and suppliers, this has effects that are absolutely identical to an equal level of expenditure made by Mondor. This is self-evident; we will say no more about it.
2. Charity. The ten thousand francs devoted to this heading also go to stimulating productive activity: they go to the baker, the butcher and shops that sell clothes and furniture. The point is though that the bread, meat and clothing are not directly of use to Ariste, but to those he has substituted for himself. Well, this simple substitution of one consumer for another has not the slightest effect on general production. Whether Ariste spends one hundred sous or asks an unfortunate person to spend them in his stead is just the same.
3. Help to Friends. The friend to whom Ariste lends or gives ten thousand francs does not receive them in order to bury them; this would be repugnant to the whole conception. He uses this money to pay for goods or settle debts. In the first instance, productive activity is stimulated. Would people dare to say that such activity has more to gain from the purchase by Mondor of a thoroughbred for ten thousand francs than from the purchase by Ariste or his friend of ten thousand francs' worth of fabrics? Or if this sum is used to pay a debt, the only thing that results is that a third person, the creditor who receives the ten thousand francs, appears on the scene; he will certainly use this money for some purpose in his trade, his factory or operation. It is one middleman more between Ariste and the workers. The names change but the expenditure remains, as does the stimulus given to production.
4. Savings. There remains the ten thousand francs that is saved, and this is where, from the point of view of encouraging the arts, industry, work, and the labor force, Mondor appears to be vastly better than Ariste, although from the moral point of view Ariste shows himself to be somewhat better than Mondor.
It is never without physical unease that borders on pain that I see the appearance of contradictions like this among the great laws of nature. If the human race was reduced to choosing between two parties, one of which injures its interests and the other its conscience, all that would be left to us would be to despair of its future. Fortunately, this is not so.83 And, in order to see Ariste regain his economic as well as his moral superiority, you just have to understand this consoling axiom that is no less true for appearing to be paradoxical: To save is to spend.
What is Ariste's aim in saving ten thousand francs? Is it to bury two thousand hundred sou pieces in a hiding place in his garden? Certainly not, he means to increase his capital and income. Consequently, this money, which he is not using to purchase personal forms of satisfaction, he uses to buy land, a house, State bonds and shares in industry, or else he invests it with a trader or a banker. If you follow the écus in all these alternative uses, you will ascertain that, through the offices of salesmen or lenders, they will go to provide work as surely as if Ariste, following the example of his brother, had traded them for furniture, jewelry and horses.
The whole point is that when Ariste buys land or bonds for 10,000 francs, his choice is determined by the consideration that he has no need to spend these funds on consumption goods, this being what you are criticizing him for.
But, likewise, the person who sells him the land or the bond is guided by the belief that he needs to spend the ten thousand francs in some way or another.
This means that the expenditure is made come what may, whether by Ariste or those who take his place.
From the point of view of the working classes or the stimulation of employment, there is therefore just one difference between Ariste's action and that of Mondor. As Mondor's expenditure was made directly by him and around him, it is seen. As Ariste's action is carried out in part by middlemen and at a distance, it is not seen. However, in fact, and for anyone capable of relating cause to effect, the cause that is not seen is just as certain as that which is seen. The proof of this is that in both cases the écus circulate and do not remain in the wise man's strongbox any more than in that of the spendthrift.
It is therefore erroneous to say that Thrift is currently causing harm to industry. Seen from this angle, it is just as beneficial as Luxury.
But how much superior it is to the latter if the train of thought, instead of limiting itself to the hour that passes, encompasses a longer period!
Ten years have gone by. What has become of Mondor, his fortune and his great popularity? All of this has vanished; Mondor is ruined. Far from spreading sixty thousand francs84 each year around the social body, he is perhaps a burden on it. In any case, he no longer gives joy to his suppliers, he is no longer counted as a promoter of the arts and industry, he is no longer any use to workers any more than he is to his family which he has left in poverty.
At the end of this same ten-year period, not only has Ariste continued to put his entire income into circulation, but he puts an increasing level of income into it as the years go by. He increases the capital of the nation, that is to say, the fund out of which wages are paid, and as the demand for labor is based on the size of this fund he continues to increase the remuneration of the working class. Should he die, he will leave children whom he has made capable of carrying on this work of progress and civilization.
From a moral point of view, the Superiority of Thrift over Luxury is obvious. It is consoling to think that this is true from the economic point of view as well, at least for anyone who does not stop at the immediate effects of phenomena but is capable of extending his investigations right up to their final effects.
Notes78 Bastiat often chose very carefully the names of the protagonists in the "constructed stories" which he used to illustrate economic ideas. Here he uses two brothers, Mondor and Ariste, to illustrate the moral problems to do with saving. Mondor is the spendthrift and Ariste is the "individualist" who saves his inheritance. The character "Mondor" is based upon one of the brothers Antoine and Philippe Girard who were street jugglers and tricksters in Paris in the early 17th century who sold patent medicines to passers-by. Philippe Girard's character was called "Mondor." "Ariste" was one of the brothers in Molière's play L'École des maris (The School for Husbands) (1661) who tutored two orphaned sisters. The two brothers had very different philosophies of education. Ariste believed in granting his pupil considerable freedom and was tolerant towards her, his brother Sganarelle (played by Molière in the opening performance) was very strict and harsh. Bastiat first used the character Mondor in the pamphlet "Damned Money! in April 1849 which appears in vol. 4 of the Collected Works (forthcoming). See the glossary entry on "Mondor." See the glossary entries on "Mondor" and "Molière."
79 Honoré de Balzac (1789-1850). Balzac was a prolific author who was a leading member of the realist school because of his detailed depiction of everyday life in France during the July Monarchy. His collection of novels and stories were called "The Human Comedy" and numbered nearly 90 titles. Although he was a conservative and supporter of the monarchy his depiction of ordinary people endeared him to readers from across the political spectrum. See especially The Chouans (Les Chouans, 1829); Old Goriot (le père Goriot, 1835); The Government Clerks (Les Employés, 1838); Lost Illusions (Illusions Perdues, 1843); A Man of Business (Un homme d'affaires, 1846); The Lesser Bourgeoisie (Les Petits Bourgeois, 1854).
80 Dumas. Alexandre Dumas (1802-70). Dumas was a prolific author of plays and historical novels. Although born into poverty his grandfather was a noblemen who served in the Artillery in Haiti and had a child with an ex-slave. His father (of mixed race) was a general in Napoleon's army who fell out of favour with regime. Dumas participated in the 1830 overthrow of the restored monarchy and was an active supporter of the July Monarchy. His first literary successes came from writing plays and then novel which were serialised in the emerging popular press of the period. He earned a great deal of money from his writing but he was often impoverished because of his high living. He is best known for historical novels such as The Three Musketeers (Les Trois Mousquetaires, 1844) and The Count of Monte Cristo (Le Comte de Monte-Cristo, 1845–1846).
81 Bastiat uses the word "éclabousser" which means to splash or splatter somebody with something, often with mud. This could be a reference to the reckless way Mondor drives about town in his carriage splashing pedestrians with mud from the streets. In the pamphlet "Damned Money! (April 1849) refers to the profligate Croesus who loved to drive his ostentatiously decorated chariots very recklessly splashing mud on the onlookers. He could be making a similar comment about Mondor here.
82 Bastiat uses the term "le fesse-matthieu" which is a course expression for a usurer or money lender. It is a combination of the word "la fesse" (buttock) and Matthew, a reference to the fact that Saint Matthew was a tax collector and money lender before he became of disciple of Christ.
83 (Paillottet's note) See the note on page 369. . This is a reference to the earlier footnote which states: This is a reference to chap. XIV "Conflit de principes" (Conlict of Principles) and chap. XVIII "Il n'y a pas de principes absolus" (There are no Absolute Principles) in Economic Sophisms Part I in vol. 4 OC (Paillottet is incorrect in stating that these are in vol. VI); and to Reflections addressed to Thiers (p. 538 vol. ???); and to chap. XI "Éparges et luxe" (Savings and Luxury) of "What is Seen" in vol. 5 OC.
84 Bastiat makes a mistake here. The amount he stated earlier in the article was fifty thousand francs per year.
XII. The Right to Work85 and the Right to Profit86 [final draft]"Brothers, tax yourselves in order to provide me with work at your price." That is the Right to Work, Elementary Socialism or the first stage of socialism.
"Brothers, tax yourselves in order to supply me with work at my price." That is the Right to Profit, Refined Socialism or the second stage of socialism.
Both live as a result of effects that are seen. They will die as a result of the effects that are not seen.
What is seen is the work and profit generated by taxes levied on society. What is not seen are the work and profits that would be generated by this same amount if it were left in the hands of the taxpayers.
In 1848, the Right to Work was displayed for a time under both its aspects. This was enough to cause its downfall in public opinion.
One of these aspects was called the National Workshop87.The other, the tax of Forty-five centimes88.
Millions every day moved from the Rue de Rivoli89 to the National Workshops. This was the good side of the coin.
But here is the reverse side. In order for millions to leave the coffers, they have first to enter them. This is why the organizers of the Right to Work turned to the taxpayers.
Well, peasants in the countryside said: "I have to pay 45 centimes. I will therefore do without an item of clothing, I will not marl my field nor repair my house."
And the laborers in the countryside said: "Since our bourgeois class is depriving itself of items of clothing, there will be less work for tailors; since it is not marling its fields, there will be less work for laborers; since it is not repairing its houses, there will be less work for carpenters and masons."
It was then proved that you cannot profit twice from the same transaction and that work paid for by the government is carried out at the expense of work paid for by taxpayers. This was the death of the Right to Work, which appeared to be just as much of an illusion as it was an injustice.90
And yet, the Right to a Profit, which is just an exaggeration of the Right to Work, is still alive and is doing marvelously.
Is there not something shameful in the role that protectionists make society adopt?
Protectionists say to it:
"You have to give me work, and what is more, lucrative work. I was silly enough to choose a form of industry that leaves me with a loss of ten percent. If you inflict a contribution of twenty francs on my fellow citizens and hand it over to me, my loss will be converted into a profit. Well, Profit is a Right, and you owe it to me."
The society that listens to this sophist, which saddles itself with taxes to satisfy him and which does not notice that the loss made by an industry is no less of a loss because others are obliged to compensate it, this society, as I say, deserves the burden inflicted on it.
Thus, this is seen in the many subjects I have dealt with: not to know Political Economy is to let oneself be be blinded by the immediate effect of a phenomenon; to know Political Economy is to take into consideration all the effects, both immediate and future.91
I might at this point submit a host of other questions to the same proof. However, I draw back from the monotony of an endlessly repetitive argument and will close by applying to Political Economy what Chateaubriand92 said about History:
"There are" he said, "two consequences in history; one that is immediate and known right away, the other more distant and not obvious at first sight. These consequences are often contradictory; some come from our recently acquired wisdom, the others from wisdom of long standing. A providential event appears after a human one. God arises behind men. You may deny as much as you like the supreme counsel, refuse to accept what it has done, query its choice of words and dismiss as the mere force of things or reason, what the common folk call Providence, as much as you like. But look to the end of an accomplished deed and you will see that it has always produced the opposite of what was expected of it, when it has not initially been based on morality and justice."93
(CHATEAUBRIAND, Memoirs from Beyond the Grave)
85 The title pairs two things - "le droit au travail" and "le droit au profit". The first right, "le droit au travail" (the right to a job), was a slogan of the socialists during the Second Republic. They claimed that it was the duty of the government to provide every able-bodied Frenchman with a job and the job creation program initiated by the Constituent Assembly in the first days of the revolution, called the National Workshops, was designed to carry this out. Bastiat and the other Economists fiercely opposed this scheme and Bastiat used his position in the Finance Committee to argue against it. In May 1848 the Constituent Assembly formed a committee to discuss the matter as the burden of paying for the National Workshops scheme was becoming too much for the government to bear. Bastiat was one of the speakers and in his speech he distinguished between the right to work ("droit au travail," where "work" is used as a noun and thus might be rendered as the "right to a job") and the "right to work" (droit de travailler, where "work" is used as a verb). He was opposed to the former but supported the latter. The government closed down the National Workshops in June prompting riots in Paris which were brutally put down by the army with considerable loss of life. Although he had opposed the National Workshops from the very beginning, Bastiat went out on the streets in order to stop the bloodshed and to aid the injured. See the glossary entry on "The Right to Work"; and the discussion in the Collected Works, vol. 2, pp. 410-12.
86 Although he does not go into details here, Bastiat may well have had a similar distinction in mind with regard to profit, namely that between "le droit au profit" (the right to a [guaranteed] profit) and "le droit de profiter" (the right to seek profits).
87 The National Workshops were created on Feb 27, 1848 to employ unemployed workers. The workers got 2 francs a day, which was soon reduced to 1 franc because of the tremendous increase in their numbers (29 000 on March 5; 118 000 on June 15). Struggling with financial difficulties, irritated by the inefficiency of the workshops, the Assembly dissolved them on June 21. See glossary entry on "National Workshops".
88 In the immediate aftermath of the February Revolution the government faced a budget crisis brought on by the decline in tax revenues and by the increased demands being placed upon it by new political groups. Louis-Antoine Pagès (Garnier-Pagès) (1803-1878), a member of the Provisional Government and soon afterwards Mayor of Paris, was able to pass a new "temporary" tax law on March 16, 1848 which increased direct taxes on things such as land, moveable goods, doors and windows, and trading license, by 45%. It was known as the "taxe de quarante-cinq centimes" (the 45 centimes tax) and was deeply unpopular, prompting revolts and protests in the south west of France. See the glossary entry on "French Taxes."
89 The ministry of finances was located in Rue de Rivoli.
90 The National Assembly closed down the National Workshops government funded unemployment relief program on 21 June since its exploding cost was bankrupting the government. It had been vigorously opposed by Bastiat in the Finance Committee of which he was the vice-president. The closure of the National Workshops led to rioting in the streets of Paris by many workers during the so-called June Days (23-26 June) which was brutally put down by the Army under General Cavaignac with the lose of thousands of lives and the arrest and ultimate deportation of hundreds of protestors. Martial law was declared which was not lifted until October. Bastiat recounts how he and some colleagues went to the barricades to argue with the workers about their actions and when they witnessed what was happened to try to prevent the troops from firing on the protestors and to give them time to remove the bodies of the dead and injured from the streets. It was also during the June Days that bastiat and Molinari published their second revolutionary newspaper Jacques Bonhomme. See the glossary entries on "The National Workshops" and "Jacques Bonhomme [journal]."
91 (Paillottet's note) (Unpublished note by the author) If all the consequences of an action were visited on its author, our education would be swift. But this does not happen. Sometimes the beneficial and visible consequences are in our favor and the harmful and invisible ones are for others to face, which makes them even more invisible. We then have to wait for a reaction from those who have had to bear the harmful consequences of the act. Sometimes this takes a long time and this is what preserves the reign of the error.
A man carries out an action that produces beneficial consequences worth 10 in his favor and harmful consequences worth 15 spread over 30 of his fellow men, so that what was borne by each of them was just ½. In all, there was a loss and the reaction was bound to come. We can see, however, that it will be all the slower since the harm is more widely spread over the mass and the benefit more concentrated on a single point.
92 Chateaubriand (1768-1848) was a novelist, philosopher, and supporter of Charles X. He served as Minister of Foreign Affairs from December 1822 to June 1824. He refused to take the oath to King Louis-Philippe after 1830 and spent his retirement writing Mémoires d'outre-tombe (1849-50). See the glossary entry on "Chateaubriand."
93 From Chateaubriand, Mémoires d'outre-tombe (Paris: Eugène et Victor Penaud, 1850), vol. 11, Conclusion. L'idée chrétienne est l'avenir du monde", p. 491.
T.278 "The Society's farewell to Bastiat at a Meeting of the PES" (10 Sept. 1850)↩
SourceT.278 (1850.09.10) The Society's farewell to Bastiat at a Meeting of the PES (Séance de 10 sept. 1850). In "Chronique," JDE, T. 27, no. 114, 15 sept. 1850, p. 197; also ASEP (1889), p. 124. Not in OC.
Editor's IntroductionThe last time Bastiat spoke in the Legislative Assembly was on 9 February when he gave a short speech on the Assembly's legal and moral obligation to give money it had already promised to a worker's association (see above, pp. 000). Shortly after that he took a leave of absence as he could no longer speak, was in nearly constant pain, and needed time away to recuperate. 2121 He wrote to his friend and benefactor Hortense Cheuvreux that his doctor had ordered him to take holiday and return to Mugron and then visit a spa town in the Pyrénées foothills, Les Eaux-Bonnes. 2122
He left Paris for Bordeaux and then Mugron in May where he spent several weeks writing his pamphlet "The Law." By June 2 he had finished the first half and sent a copy to Prosper Paillottet in Paris for editing. 2123 The full pamphlet appeared in print later that month. He then spent several weeks taking the spa waters in Les Eaux-Bonnes, but seemed to find time to work on the pamphlet WSWNS, promising Paillottet on 23 June that he would have it finished in a few days time. 2124 It appeared in print in July.
While he was in Les Eaux-Bonnes he received a copy of the June issue of JDE with Ambroise Clément's very critical review of his book Economic Harmonies which had been published in January. The fact that the review had been delayed for so long, that he probably felt a certain coldness towards his work at meetings of the Political Economy Society during the year, and now the hostile review (on top of his worsening health) made him sad and depressed. He confessed to Fontenay on 3 July that:
Perhaps you are too ardently in favor of the Harmonies in the face of opposition from Le Journal des Économistes . Middle-aged men do not easily abandon well-entrenched and long-held ideas. For this reason, it is not to them but to the younger generation that I have addressed and submitted my book. People will end up acknowledging that value can never lie in materials and the forces of nature. …
However, I do not conceal a personal wish. Yes, I would like this theory to attract enough followers in my lifetime (even if only two or three) for me to be assured before dying that it will not be abandoned if it is true. Let my book generate just one other and I will be satisfied. 2125
Bastiat returned to Paris for the last time in early August but his health showed no improvement and his doctor (Andral we learn from this extract) ordered him to spend the winter in Pisa as he would probably not live through another cold and wet Paris winter. 2126 He said farewell to his colleagues in the Society at their meeting on 10 September and it must have been very difficult for him to meet them again after Clément's review since most of the members shared his criticism of his work.
Bastiat's journey took him to Lyons, Marseilles, and then to Pisa by ship. He complained bitterly about having to share a cabin on the boat, the rudeness of the porters, and the time he had to spend in quarantine. After spending most of October in Pisa, he decided to move on to Rome where he remained from 8 November until his death on 24 December.
TextM. Frédéric Bastiat, Representative of the People, came to the last meeting of the Economists in order to say farewell to the Members of this Society. Yielding to the sage advice of his doctor, Dr. Andral, M. Bastiat is going to spend the winter in Pisa (in order to ) restore his health which the Paris climate and too much hard work has made worse. At this moment he is afflicted with a persistent sore throat which has completely deprived him of the use of his voice. We hope that the brilliant author of the Economic Sophisms and the Economic Harmonies, under the influence of the favourable Italian climate, will soon be able to complete the second volume of his last work which is already quite advanced.
At this same meeting which was presided over by M. Horace Say, who has recently arrived back from a trip, the discussion took up the question of sugar which has recently been submitted for discussion to the Council of State and which should soon be brought before the Legislative Assembly ….
In the absence of M. M. Joseph Garnier, M. Guillaumin who was the only member present who had participated at the meeting of the Congress of Peace in Frankfort, presented to the Society some interesting details about the activity of the Congress and some of the various events which took place there.
2121 See below, pp. 000 for details of the illness which killed him.
2122 Letter 165 to Hortense Cheuvreux (Paris, April 1850), CW1, pp. 235-36.
2123 Letter 171 to Paillottet (Mugron 2 June, 1850), CW1, p. 245.
2124 Letter 175 to Paillottet (Les Beaux-Bonnes 23 June, 1850), CW1, pp. 250-51.
2125 Letter 180 to Fontenay (Les Eaux-Bonnes 3 July, 1850), CW1 pp.255-56. He expressed similar frustrations to Horace Say in Letter 182 to H. Say (LesEaux-Bonnes, 4 July, 1850), CW1, pp. 259-60.
2126 Letter 189 to Félix Coudroy (Paris, 9 September, 1850), CW1, pp. 269-70.
T.292 "On the Idea of Value" (late 1850)↩
SourceT.292 (1850.11.??) "On the Idea of Value" (Note complémentaire et inédite de Bastiat sur l'idée de Valeur) (late 1850). Ronce notes that Bastiat before he died asked Paillottet to give this unpublished note to Fontenay. In Ronce, Appendix IX, pp. 312-14.
Editor's IntroductionThis may have been one of the last things Bastiat was working on when he died. Ronce states that Paillottet had been given a copy of the sketch by Bastiat with instructions to give it Fontenay, who would be one of Bastiat's literary executors who oversaw the publication of the second edition of Economic Harmonies and then Bastiat's Collected Works .
Bastiat has been stung by the critical review of the first edition of Economic Harmonies written by Clément in the JDE, especially the comments rejecting his view of population, rent, and value. 2127 In fact, Clément's review was an extended critique of Bastiat's theory of value which he harshly described as "it is particularly in this part of his book that he appears to me to have moved away from the truth" (p. 237), "contestable," and "confused." 2128 (p. 239). Bastiat complained to his close friends about his treatment at the hands of his colleagues whom he described as "middle-aged men (who) do not easily abandon well-entrenched and long-held ideas." 2129 This extract then, might be seen as one last attempt to explain what his new theory of value was and to try to dispel some of their misunderstandings.
Some of the key points he makes in the sketch are:
- that individuals place values on things they want and for which they are prepared to pay or exchange other things
- that the values individuals place on the things they want change over time and circumstance
- that the things individuals want and place a value on may be products or services
- that he thinks that "value results from the service and not from the product," thus in a biological sense "the service is the genus and the product is the species"
Bastiat had said something similar in EH1 but perhaps not as clearly:
TextWe might ask the following subtle question at this point: Should the principle of value be seen in physical objects, and thus by analogy attributed to the services? I say it is the other way round: it should be recognized in services and then attributed, by metonymy if you like, to physical objects. 2130
Theories are compromised when one exaggerates them. I did not say in absolute terms that material things do not have value, that things which are bought and sold, like wheat, land, houses, or clothing, do not have value.
I said the following: that there is value in the services which people provide for each other, because they place a value on them. 2131
There is also value in the products that they exchange, because they place a value them.
Then, since the value is identical to itself, I thought that it ought to have the same cause, the same origin, the same raison d'être, whether it was in services, or in products.
Consequently, I wondered if value was originally (located) in the product and from there extended by analogy to the service, or perhaps whether it wasn't the other way around.
Here is not the place to go into what line of investigation I thought was most important.
Whatever it was, I found that value results from the service and not from the product. I have provided a thousand reasons for this, one of which appears to me to be unanswerable, namely that each time one offers a product for sale one provides a service, while each time one provides a service one does not offer a product for sale.
Thus the service is the genus and the product is the species; and since value is common to both, it must extend from the service to the product, not from the product to the service.
Put in this way, is this any reason to ban from scientific language and especially from everyday speech the following expressions: gold is worth (this much), land is worth (that much), this hat and these shoes are worth (so much)?
Who could think like this?
I only ask that when one expounds on value, that one keep in mind, when pronouncing the words "this hat is worth so much," the how and why (of value).
I wish that one would understand that, even though this does not agree with received (economic) doctrine, that if the hat is worth (something) it is (because) a service is provided in selling it; and that if, in selling it, no service is provided (as could happen in a place like Turkey), 2132 even though it would not cease being a product because of that, it would cease having value .
But we do admit that when the service is incorporated and embodied (as one says today) in the product, popular and even scientific language makes it very clear that this product is worth (so much), that this product has some value.
But note one thing; from the moment when the incorporation is made, when the service has assumed a material form, the value of the product does not remain fixed and unchangeable. This hat which is worth 16 francs (today) will perhaps be only worth 12 francs in a year's time, without having undergone any material change.
What is the reason for this variability in the value of a product?
It is easy to grasp and it proves again and again how much value has its roots in the service (provided) and not in the material (thing).
This hat is worth 16 francs today because society values at this level the collection of services that one or more people have provided in selling a hat of this quality.
The following year, what will make this value go up or down? Is it because there is more or less of the material thing? No. It is the evaluation made at this time of the same services. If in a year's time, one provides me with less of a service in making me a hat, whether because one has learned to make them faster, or because one has found (other) supplies of raw materials, or because there are fewer and less eager buyers, not only will the value of this service drop but as well it will lead to the decrease in what we have termed the incorporated value , 2133 in other words the value of the product which has existed for a long time. This value represents a genus (or type) of services which continue to be provided and this genus follows all the fluctuations, and all the twists and turns of these services. It is thus (the same) for all the products which dot the globe; and I (would) say that the visual field of the economist is very narrow if he does not see the origin of value where I have placed it.
2127 Ambroise Clément, "Harmonies économiques, par M. Frédéric Bastiat. (Compte-rendu)," JDE, T. 26, no. 111, 15 June 1850, pp. 235-47.
2128 Clément, review of "Harmonies économiques," p. 239.
2129 Letter 180 to Fontenay (Les Eaux-Bonnes, 3 July, 1850), CW1, p. 255.
2130 CW5 (forthcoming); FEE edition, p.126; EH1, pp. 202-3.
2131 The phrase he uses is "puisqu'ils les évaluent" (since they evaluate them, or they place a value on them).
2132 Turkey, or the Ottoman Empire, was seen as a poor, despotic, and very foreign place.
2133 Bastiat introduces a new term he hasn't used before, "valeur incorporée" which we have translated as "incorporated value" or "embodied value." The only other time he uses it was in several pages of notes which Paillottet appended to the chapter on "Value" in the second, expanded edition of EH which he published in July 1851. They were not part of that chapter which Bastiat published in the first edition of January 1850 during his lifetime. Thus it would appear that this was an idea he was working on during the last year of his life. In the Stirling translation of 1880 the phrase is translated as "value incorporated in a product." In the FEE translation it is "value incorporated in a product" or "value incorporated with a commodity." It is interesting to compare this expression with one used by Proudhon in their debate on "Free Credit," namely "la valeur faite", which we have translated as "created value." See above, pp. 000.
T.279 "The announcements of Bastiat's death at a Meeting of the PES and in the JDE" (10, 15 Jan. 1851)↩
SourceT.279 (1851.01.10) The announcement of Bastiat's death at a Meeting of the PES (Séance de 10 Jan. 1851). In "Chronique," JDE, T. 28, no. 117, 15 jan. 1851, p.104-5; also ASEP (1889), p. 141. Not in OC.
Editor's IntroductionBastiat finally succumbed to his long illness on Christmas Eve 1850 in Rome. Paillottet describes his last days in a letter to Bastiat's close friend and benefactor in Paris, Madame Hortense Cheuvreux who had been in Rome with Bastiat until about the 14th December and had to return to Paris to be with her sick mother. 2134 Bastiat's cousin Eugène de Monclar who was a priest heard his last confession and gave him the last rites. Paillottet said that Bastiat had told him that "I want to die in the religion of my forefathers. I have always loved it, even though I have not followed its external practices." One wonders whether any priest other than a family member would have given Bastiat the last rites given the very harsh comments he had repeatedly made about "theocratic plunder" and "theocratic fraud" in his theory and history of plunder. 2135 Furthermore, in a letter to M. Casimir Cheuvreux in July 1850 he argued that Catholicism was a set of "extinguished beliefs" and that "acquiescence in form alone" would lead to it having to confront an "inevitable ordeal":
Extinguished beliefs will no longer be revived, and the efforts made in times of terror and danger to give society this anchor are more meritorious than effective. I believe that an inevitable ordeal is lying in wait for Catholicism. Acquiescence in form alone, which each person requires from others and from which acquiescence each person allows himself dispensation, cannot be a permanent state of affairs. 2136
It is problematic to determine exactly what killed Bastiat. The information we can get from his letters are vague which is not surprising given the state of medical knowledge in 1850. We learn from his death announcement in the JDE that he was already suffering from his throat condition when he arrived in Paris from Mugron "six years ago." The traditional view, as expressed by Dean Russell, 2137 was that he died of tuberculosis but several of his comments in his letters suggest otherwise. The symptoms he complained about suggest cancer of either the larynx or the oesophagus: he found it painful to speak to the point he was no longe able to; he had coughing fits; he felt a lump growing in his larynx; he felt pain when drinking, eating, breathing, talking, coughing; and towards the end there was unbearable pain. If it was cancer that killed him it is amazing that it took 6 years to do so.
Sadly, his death had been prematurely announced in an Italian newspaper and he consoled his friend Paillottet in a letter dated 11 October from Pisa. In it he tells us how he wished to be remembered:
Text: The Account in the JDEI feel the desire to live, my dear Paillottet, when I read your account of your anxiety at the news of my death. Thank heaven, I am not dead, not even more seriously ill. This morning, I saw a doctor who is going to try to rid me, at least for a few minutes, of this pain in my throat, whose constancy is so distressing. But in any case, if this news had been true, you would have had to accept it and be resigned to it. I would like all my friends to acquire the philosophy I have myself acquired in this respect. I assure you that I will yield my last breath with no regret and almost with joy, if I could be sure to leave behind me, to those who love me, no searing regrets but a sweet, affectionate, and slightly melancholic memory. When I am no longer ill, this is what I will prepare them for. 2138
The daily newspapers have already announced the great and very sad loss suffered by (economic) science with the death of Frédéric Bastiat. Our illustrious and very unfortunate friend (finally) succumbed (to his illness) on 24 December in Rome. The air and the sun of Italy was not able to stop the ravages of the disease which had afflicted him for a long time, a disease which had already affected him six years ago when he began (writing) for the Journal des Économistes that series of works filled with knowledge, good sense, and sparkling wit, which in a short space of time made his name, and which will leave in economic science a brilliant and profound mark. 2139
However, three months ago when it was decided that he should move away from Paris and to quit the worries of his parliamentary life, even though the sickness had spread to his larynx and he could only speak in a quite voice, his spirit had lost nothing of its vigour; his energetic constitution remained; and we hoped that rest and the mild climate (of Italy) would delay for some years more the end of this mighty creature.
But alas, the illness only got worse and when M. Paillottet, who was very fond of him, hurried from Paris to attend to his needs out his deep friendship, he understood that one could no longer have any illusions (about his condition).
This poor martyr (to the cause) could no longer take food without such painful efforts that it provoked agonizing and prolonged coughing fits. But he did not want to receive his friend until this dreadful crisis had passed; and then, if his suffering left him some moments of calm, he dictated to him once more the next installment of the work which preoccupied him up until the very last moment. 2140
If he had not stayed in Paris and (pursued) the life of a Parliamentarian Frédéric Bastiat would have been able to pursue a longer career. The former's climate did not agree with him at all, and perhaps what agreed with him even less was the spectacle of (all) the agitation, intrigue, and inadequacy which confronted him in his efforts to bring about useful reforms, the triumph of truth, and the practice of the good.
With his passing, the Legislative Assembly lost a model of integrity and independence; economic science lost a charming writer who had the rare and precious gift of being able to understand the big picture and to make it popular. France and the entire world one could say as well, have lost one of those fine and fertile minds, the character and products of which (will) comfort and honour humanity.
Text: ASEP versionMeeting held 10 January, 1851
At his meeting, M. Horace Say and several other members discussed before the Society the distinguished services rendered by Frédéric Bastiat and the considerable loss which economic science and the country have suffered by his loss. M. Horace Say read out loud a moving letter from M. Cobden. 2141
The Society, (having been) touched by the devotion M. Paillottet showed towards his friend, asked several of the members to communicate to him their deep gratitude.
The conversation then turned to the legal relationship between the two precious metals used as currency, 2142 concerning the fall in the value of gold. A scholarly and instructive historical discussion took place, especially between Messieurs Michel Chevalier, Charles Coquelin, and (Garcia) Quijano, 2143 but it was too technical and too full of numerical data for us to reproduce here.
2134 Letter 208 Paillottet to Cheuvreux (Rome, 22 December 1850), CW1, pp. 296-97. Bastiat's wish for confession, p. 297.
2135 For example, ES2 1 "The Physiology of Plunder," CW3, pp. 113-30. Theocratic plunder is discussed on p. 114; theocratic fraud on pp. 121-23.
2136 Letter 184 to Casimir Cheuvreux (Mugron, 14 July 1850), CW1, p. 261.
2137 Russell, Frédéric Bastiat: Ideas and Influence , p. 121.
2138 Letter 197 to Paillottet (Pisa, 11 October 1850), CW1 pp. 279-80.
2139 This is a reference to the collection of Economic Sophisms which were published in two "Series." Series I appeared in January 1846. Series II in January 1848.
2140 Volume two of the Economic Harmonies which "the friends of Bastiat" (Paillottet and Fontenay) would complete as best they could and publish in July 1851.
2141 We have not been able to locate this letter from Cobden.
2142 France used currency made of both gold and silver.
2143 Garcia Quijano was a member of the Société d'économie politique and an occasional contributor to Le Journal des économistes.
Posthumous Works
T.260 (1851.07) Economic Harmonies (2nd ed.)↩
SourceT.260 (1851.07) Economic Harmonies (2nd ed. with additional 15 chapters) Published as a book by "The Friends of Bastiat" (Paillottet and Fontenay). [OC6] [CW5]
Editor's Note[to come]
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T.261 (1852.??) "Abundance"; "The State"; "The Law" (DEP, 1852-53)↩
SourceT.261 (1852.??) "Abundance" (Abondance); "The State" (L'État); "The Law" (La Loi). Articles in the Dictionnaire de l'économie politique (Guillaumin, 1852-53), vol. 1, pp. 2-4 and 733-36; vol. 2, pp. 93-100. "Abundance" was written specifically for the DEP possible in late summer or early Fall 1850; "The State" signed by "Ch. C" (Charles Coquelin) but consisted mainly of long quotations from FB's 1848 essay; "The Law" was reprinted from his 1850 pamphlet. [OC5.7, pp. 393-401.] [CW4]
Editor's Note[to come]
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T.262 (1854-55) Oeuvres complète (1st ed.)↩
SourceT.262 (1854-55) Oeuvres complètes (1st ed.) The first edition of the "complete works" of Bastiat in 6 vols. Edited by Prosper Paillottet and Roger de Fontenay.
Editor's Note[to come]
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T.263 (1862-64) Oeuvres complète (2nd ed.)↩
SourceT.263 (1862-64) Oeuvres complètes (2nd ed.) The 2nd edition included an additional 7th vol. with essays, sketches, and letters, as well as a "Notice sur la vie et les écrits de Frédéric Bastiat" by Roger de Fontenay, and an outline of planned additional chapters.
Editor's Note[to come]
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T.264 (1863) Oeuvres choisies, 3 vols.↩
SourceT.264 (1863) Oeuvres choisies, 3 vols. A three volume collection of the Economic Sophisms, Petits Pamphlets, and the Economic Harmonies.
Editor's Note[to come]
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T.265 (1877.??) Lettres d'un habitant des Landes↩
SourceT.265 (1877.??) Lettres d'un habitant des Landes, Frédéric Bastiat. (Paris: A. Quantin, 1877). Bastiat's letters to Mme Cheuvreux. Unsigned but likely edited by Mme Cheuvreux. French edition of the book online </titles/2300>. Letters translated into English asnd merged with ogher letters in [CW1].
Editor's Note[to come]
Text[These letters can be be throughout CW1. They have been merged with the Letters collected by Paillottet in the OC.]