The Works of Bastiat in Chronological Order 2: The Paris Writings I 1844-1848
Part 2: The “Paris” Writings I: Bastiat and the Free Trade Movement (Nov. 1844 - Feb. 1848)
[Updated: 22 June, 2017 of a "work in progress"]
Note: We have added final draft versions of material which will appear in the Collected Works, vol.3 "Economic Sophisms and WSWNS"; and vol. 4 "Miscellaneous Writings on Economics."
Rue Richelieu and the Molière fountain, Paris where the Guillaumin publishers were located |
Map of Paris in 1841 showing the Octrois customs gates which were built in the 1780s (pink) and the planned military walls and forts (orange and red) which were constructed between 1841-44. Thus, when FB came to Paris in May 1845 they would have only recently been completed. |
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 (forthcoming)
- Vol. 5: Economic Harmonies (forthcoming)
- Vol. 6: The Struggle Against Protectionism: The English and French Free-Trade Movements (forthcoming)
We are also creating a chronological version of Bastiat’s writings which only be available online. As the printed version becomes available in digital form we will add it to the chronological version. Thus, this is a work in progress. There is a complete list of all of Bastiat’s writings in order of appearance here. 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
Recently added items are in BOLD [from CW4 draft 16 June, 2017].
- Letter 32. Mugron, 24 Nov. 1844. To Richard Cobden
- Letter 33. Mugron, 24 Nov. 1844. To Horace Say
- Letter 216: Letter to Félix Coudroy (1845) [CW4 draft - 16 June 2017]
- Letter 34. Mugron, 7 March 1845. To M. Ch. Dunoyer
- Letter 35. Mugron, 7 March 1845. To M. Al. de Lamartine
- Letter 36. Mugron, 8 Apr. 1845. To Richard Cobden
- Letter 37. Paris, May 1845. To Félix Coudroy
- Letter 38. Paris, 23 May 1845. To Félix Coudroy
- Letter 39. Paris, 5 June 1845. To Félix Coudroy
- Letter 40. Paris, 16 June 1845. To Félix Coudroy
- Letter 41. Paris, 18 June 1845. To Félix Coudroy
- Letter 42. Paris, 3 Jul. 1845 (11pm). To Félix Coudroy
- Letter 43. London, Jul. 1845. To Félix Coudroy
- Letter 44. London, 8 Jul. 1845. To Richard Cobden
- Letter 45. Paris, 29 Jul. 1845. To M. Paulton
- Letter 46. Mugron, 2 Oct. 1845. To Richard Cobden
- Letter 47. Mugron, 24 Oct. 1845. To M. Potonié
- Letter 48. Mugron, 13 Dec. 1845. To Richard Cobden
- Letter 49. Mugron, 20 Dec. 1845. To Alcide Fonteyraud
- Letter 50. Mugron, 13 Jan. 1846. To Richard Cobden
- Letter 51. Mugron, 9 Feb. 1846. To Richard Cobden
- Letter 52. Bordeaux, Feb. 1846. To Richard Cobden
- Letter 53. Bordeaux, 19 Feb. 1846. To Félix Coudroy
- Letter 54. Bayonne, 4 March 1846. To Victor Calmètes
- Letter 55. Paris, 16 March 1846. To Richard Cobden
- Letter 56. Paris, 22 March 1846. To Félix Coudroy
- Letter 57. Paris, 25 March 1846. To Richard Cobden
- Letter 58. Paris, 2 Apr. 1846. To Richard Cobden
- Letter 59. Paris, 11 Apr. 1846. To Richard Cobden
- Letter 60. Paris, 18 Apr. 1846. To Félix Coudroy
- Letter 61. Paris, 3 May 1846. To Félix Coudroy
- Letter 62. Paris, 4 May 1846. To Félix Coudroy
- Letter 63. Paris, 24 May 1846. To Félix Coudroy
- Letter 64. Paris, 25 May 1846. To Richard Cobden
- Letter 65. Mugron, 25 June 1846. To Richard Cobden
- Letter 66. Bordeaux, 21 Jul. 1846. To Richard Cobden
- Letter 67. Bordeaux, 22 Jul. 1846. To Félix Coudroy
- Letter 68. Paris, 23 Sept. 1846. To Richard Cobden
- Letter 69. Paris, 29 Sept. 1846. To Richard Cobden
- Letter 70. Paris, 1 Oct. 1846. To Félix Coudroy
- Letter 71. Paris, 22 Oct. 1846. To Richard Cobden
- Letter 72. Paris, 22 Nov. 1846. To Richard Cobden
- Letter 73. Paris, 25 Nov. 1846. To Richard Cobden
- Letter 74. Paris, 20 Dec. 1846. To Richard Cobden
- Letter 75. Paris, 25 Dec. 1846. To Richard Cobden
- Letter 76. Paris, 10 Jan. 1847. To Richard Cobden
- Letter 77. Paris, 11 March 1847. To Félix Coudroy
- Letter 78. Paris, 20 March 1847. To Richard Cobden
- Letter 79. Paris, 20 Apr. 1847. To Richard Cobden
- Letter 80. Paris, 5 Jul. 1847. To Richard Cobden
- Letter 81. Paris, Aug. 1847. To Félix Coudroy
- Letter 82. Mugron, Monday, Oct. 1847. To Horace Say
- Letter 83. Paris, 15 Oct. 1847. To Richard Cobden
- Letter 84. Paris, 9 Nov. 1847. To Richard Cobden
- Letter 85. Paris, 5 Jan. 1848. To Félix Coudroy
- Letter 86. Paris, 17 Jan. 1848. To Madame Schwabe
- Letter 87. Paris, 24 Jan. 1848. To Félix Coudroy
- Letter 88. Paris, 27 Jan. 1848. To Madame Schwabe
- Letter 89. Paris, 13 Feb. 1848. To Félix Coudroy
- Letter 90. Paris, 16 Feb. 1848. To Madame Schwabe
Bastiat's Writings in 1845
- T.21 [1845.??] "Other Questions submitted to the General Councils of Agriculture, Manufactures, and Commerce, in 1845" [CW6 - to come]
- T.22 (1845.??) "The Elections. A Dialog between a deep-thinking Supporter and a Countryman"
- T.23 [1845.02.15] "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job" (Feb. 1845, JDE) [CW4 draft 16 June 2017]
- T.20 [1845.03] "On the Book by M. Dunoyer. On The Liberty of Working" (March, 1845) [CW4 draft 16 June 2017]
- T.317 [1845.03.15] "Introduction and Post Script to Economic Sophisms" (March 1845, JDE) [CW4 draft 16 June 2017]
- T.24 [1845.04.15]" Economic Sophisms: Abundance and Scarcity" (JDE, April 1845) [CW3 - final draft]
- T.25 [1845.04.15] "Economic Sophisms: Obstacle and Cause" (JDE, April 1845) [CW3 - final draft]
- T.26 [1845.04.15] "Economic Sophisms: Effort and Result" (JDE, April 1845) [CW3 - final draft]
- T.27 [1845.06] "Introduction" to Cobden and the League (Guillaumin, 1845) [CW6 - to come]
- T.28 [1845.06.15] "The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom" (JDE, June 1845)
- T.29 [1845.07.15] "Equalizing the Conditions of Production" (JDE, July 1845) [CW3 - final draft]
- T.30 [1845.07.15] "Our Products are weighed down with Taxes" (JDE, July 1845) [CW3 - final draft]
- T.31 [1845.08.15] "On the Future of the Wine Trade between France and England" (JDE, Aug., 1845) [CW6 - to come]
- T.32 [1845.10.15] "Economic Sophisms (cont.): VI. The Balance of Trade" (JDE, Oct., 1845) [CW3 - final draft]
- T.33 [1845.10.15] "Economic Sophisms (cont.): VII. Petition by the Manufacturers of Candles, etc." (JDE, Oct., 1845) [CW3 - final draft]
- T.34 [1845.10.15] "Economic Sophisms (cont.): VIII. Differential Duties" (JDE, Oct., 1845) [CW3 - final draft]
- T.35 [1845.10.15] "Economic Sophisms (cont.): IX. An immense Discovery!!!" (JDE, Oct., 1845) [CW3 - final draft]
- T.36 [1845.10.15] "Economic Sophisms (cont.): X. Reciprocity" (JDE, Oct., 1845) [CW3 - final draft]
- T.37 [1845.10.15] "Economic Sophisms (cont.): X. Nominal Prices" (JDE, Oct., 1845) [CW3 - final draft]
-
T.38 [1845.11] Economic Sophisms. First Series (Guillaumin, 1846) [CW3 - final draft]
- 1845.12 ES1 "Author's Introduction"
- 1845.12 ES1.12 "Does Protection increase the Rate of Pay?" [n.d.]
- 1845.12 ES1.13 "Theory and Practice" [n.d.]
- 1845.12 ES1.14 "A Conflict of Principles" [n.d.]
- 1845.12 ES1.15 "More Reciprocity" [n.d.]
- 1845.12 ES1.16 "(Blocked Rivers pleading in favor of the Prohibitionists" [n.d.]
- 1845.12 ES1.17 "A Negative Railway" [n.d.]
- 1845.12 ES1.18 "There are no Absolute Principles" [n.d.]
- 1845.12 ES1.19 "National Independence" [n.d.]
- 1845.12 ES1.20 "Human Labor and Domestic Labor" [n.d.]
- 1845.12 ES1 21 "Raw Materials" [n.d.]
- 1845.12 ES1 22 "Metaphors" [n.d.]
- 1845.11 ES1 "Conclusion" [signed "Mugron, 2 Nov., 1845"]
- T.39 [1845.12.15] "The English Free Trade League and the German League" (JDE, Dec., 1845) [CW6 - to come]
- T.40 [1845.12.15] "A Question submitted to the General Councils of Agriculture, Manufactures, and Commerce" (JDE, Dec., 1845) [CW6 - to come]
Bastiat's Writings in 1846
- T.41 [1846.??] "To M. de Larnac, Deputy of Les Landes, on Parliamentary Reform"
- T.42 Economic Sophisms. Series I. Conclusion is dated "Mugron, 2 Nov., 1845". Published in Paris, by Guillaumin, in Jan. 1846. [CW3 - final draft]
- T.43 (1846.01.15) "Theft by Subsidy" (JDE, Jan. 1846) [CW3 - final draft]
- T.44 (1846.02.08) "Plan for an Anti-Protectionist League" (MB, Feb. 1846) [CW6 - to come]
- T.45 (1846.02.09) "Plan for an Anti-Protectionist League. Second Article" (MB, Feb. 1846) [CW6 - to come]
- T.46 (1846.02.10) "Plan for an Anti-Protectionist League. Third Article" (MB, Feb. 1846) [CW6 - to come]
- T.47 [1846.02.15] "Thoughts on Sharecropping" (15 Feb. 1846, JDE) [CW4 draft 16 June 2017]
- T.48 (1846.02.18) "The Free Trade Association in Bordeaux" (MB, Feb. 1846) [CW6 - to come]
- T.49 (1846.02.19) "Letter to the Editor of the Journal de Lille, mouth-piece of the northern interests" (MB, Feb. 1846)
- T.50 (1846.02.23) "First Speech given in Bordeaux"
- T.51 [1846.02.26] "The Theory of Profit" (26 Feb. 1846, MB) [CW4 draft 16 June 2017]
- T.52 (1846.03.08) "To the Editor of the Époque" (MB, March 1846) [CW6 - to come]
- T.53 (1846.03.12) "Free Trade in Action" (MB, March 1846) [CW6 - to come]
- T.54 (1846.04.01) "What is Commerce?" (CF, Apr. 1846) [CW6 - to come]
- T.55 (1846.04.06) "To the Minister of Agriculture and Commerce" (MB, Apr. 1846) [CW6 - to come]
- T.56 (1846.04.11) "To the Editor of the Courrier français" (CF, Apr. 1846) [CW6 - to come]
- T.57 (1846.04.15) "To La Tribune and La Presse on the Question of the Treaty with Belgium" (JDE, Apr. 1846) [CW6 - to come]
- T.58 and T.49 [1846.04] "Two Articles on Postal Reform II" (April 1846, MB) [CW4 draft 16 June 2017]
- T.60 (1846.05.02) "Commercial Liberty" (MB, May 1846) [CW6 - to come]
- T.61 (1846.05.02) "First Letter to the Editor of the Journal des débats" (JDD, May 1846) [CW6 - to come]
- T.62 (1846.05.10) "Declaration of Principles of the Free Trade Association" [CW6 - to come]
- T.63 (1846.05.14) "Second Letter to the Editor of the Journal des débats" (MB, May 1846) [CW6 - to come]
- T.64 [1846.05.15] "On Competition" (May 1846, JDE) [CW4 draft 16 June 2017]
- T.65 (1846.05.15) "Salt, the Mail, and the Customs Service" (JDE, May 1846) [CW3 - final draft]
- T.66 [1846.05.19] "On the Railway between Bordeaux and Bayonne" (MB, May 1846)
- T.288 [1846.06??] "A Light-Hearted Look at Free Trade" (mid or late 1846) [CW4 draft 16 June 2017]
- T.67 (1846.06.14) "To the Members of the Free Trade Association" (MB, June 1846) [CW6 - to come]
- T.68 [1846.06.15] "On the Redistribution of Wealth by M. Vidal" (15 June 1846, JDE) [CW4 draft 16 June 2017]
- T.69 (1846.06.30) "To M. Tanneguy-Duchâtel, , Minister for the Interior" (MB, June 1846) [CW6 - to come]
- T.70 (1846.07.01) "The Logic of the Moniteur industriel" (MB, July 1846) [CW6 - to come]
- T.71 [1846.07.01] "To the Electors of the District of Saint-Sever" (Mugron, 1 July, 1846)
- T.72 [1846.07.03] "Letter to Roger Dampierre"
- T.73 (1846.08.19) "A Toast offered at the banquet in Honor of Richard Cobden by the Free Traders of Paris" (CF, Aug. 1846) [CW6 - to come]
- T.74 (1846.08.22) "To the Editors of La Presse (1) (CF, Aug. 1846) [CW6 - to come]
- T.75 (1846.08.24) "The Corn Laws and Workers' Wages" (CF, Aug. 1846) [CW6 - to come]
- T.76 (1846.08.29) "Letter to the Moniteur industriel" (CF, Aug. 1846) [CW6 - to come]
- T.77 (1846.09.02) "To the Editors of La Presse (2) (CF, Sept. 1846) [CW6 - to come]
- T.78 (1846.09.18) "To Artisans and Workers" (CF, Sept. 1846) [CW3 - final draft]
- T.79 (1846.09.26) "Second Speech given in the Montesquieu Hall in Paris" (JDE, Oct. 1846) [CW6 - to come]
- T.80 [1846.10.15] "Second Letter to M. de Lamartine (on price controls on food)" (Oct. 1846, JDE) [CW4 draft 16 June 2017]
- T.81 [1846.10.15] "On Population" (15 Oct. 1846, JDE) [CW4 draft 16 June 2017]
- T.82 (1846.10.15) "The minutes from a meeting of the Association pour la Liberté des échanges" (JDE, Oct. 1846) [CW4 - to come]
- T.83 (1846.10.22) "To the Merchants of Le Havre (1)" (MB, Oct. 1846) [CW6 - to come]
- T.84 (1846.10.23) "To the Merchants of Le Havre (2)" (MB, Oct. 1846) [CW6 - to come]
- T.85 (1846.10.25) "To the Merchants of Le Havre (3)" (MB, Oct. 1846) [CW6 - to come]
- T.86 (1846.11.10) "To the Editors of Le National (1)" (CF, Nov. 1846) [CW6 - to come]
- T.87 (1846.11.11) "To the Editors of Le National (2)" (CF, Nov. 1846) [CW6 - to come]
- T.88 (1846.12.06) "Post Hoc, Ergo Propter Hoc" (LE, Dec. 1846) [CW3 - final draft]
- T.89 (1846.12.13) "On General Principles" (LE, Dec. 1846) [CW6 - to come]
- T.90 (1846.12.13) "The Right Hand and the Left Hand" (LE, Dec. 1846) [CW3 - final draft]
- T.91 (1846.12.15) "On the Impact of the Protectionist Regime on Agriculture" (JDE, Dec. 1846)
- T.92 (1846.12.20) "Free Trade" (LE, Dec. 1846) [CW6 - to come]
- T.93 (1846.12.27) "What does Invasion amount to?" (LE, Dec. 1846)
- T.94 (1846.12.27) "Recipes for Protectionism" (LE, Dec. 1846) [CW6 - to come] [CW3 - final draft]
Bastiat's Writings in 1847
- T.95 (1847.??) "A Little Manual for Consumers, in other words for Everyone" [CW3 - final draft]
- T.96 (1847.??) "Making a Mountain out of a Mole Hill" [CW3 - final draft]
- T.97 [1847.??] "Anglomania, Anglophobia"
- T.98 (1847.??) "Plan for a Speech on Free Trade to be given in Bayonne" [CW6 - to come]
- T.99 (1847.??) "One Man's gain is another Man's Loss" [CW3 - final draft]
- T.100 (1847.01.03) "Limits which the Free Trade Association imposes" (LE, Jan. 1847) [CW6 - to come]
- T.101 (1847.01.15) "Organisation and Liberty" (JDE, Jan. 1847) [CW6 - to come]
- T.102 (1847.01.17) "The Utopian" (LE, Jan. 1847) [CW3 - final draft]
- T.103 (1847.01.24 ) "The Sliding Scale" (LE, Jan. 1847) [CW6 - to come]
- T.105 [1847.02.21] "To M. de Noailles in the Chamber of Peers (on Perfidious Albion)" (24 Jan. 1847, LE) [CW4 draft 16 June 2017]
- T.106 (1847.01.31) "Reflections on the year 1846" (LE, Jan. 1847) [CW6 - to come]
- T.107 (1847.01.31) "The Inanity of the Protection of Agriculture" (LE, Jan. 1847) [CW6 - to come]
- T.108 (1847.02.07) "England and Free Trade" (LE, Feb. 1847) [CW6 - to come]
- T.109 (1847.02.07) "Two Principles" (LE, Feb. 1847)
- T.110 (1847.02.14) "Domination through Work" (LE, Feb. 1847)
- T.111 [1847.02.21] "A Curious Economic Phenomenon. Financial Reform in England" (21 Feb. 1847, LE) [CW4 draft 16 June 2017]
- T.112 (1847.03.07) "The Impact of Free Trade on the Relations between People" (LE, Mar. 1847) [CW6 - to come]
- T.113 (1847.03.14) "The Democratic Party and Free Trade" (LE, Mar. 1847) [CW6 - to come]
- T.114 (1847.03.14) "On the Free Importation of Foreign Cattle" (LE, Mar. 1847) [CW6 - to come]
- T.115 (1847.03.21) "On the Prohibition of Exporting Grain" (LE, Mar. 1847) [CW6 - to come]
- T.116 (1847.03.21) "To increase the price of food is to lower the value of wages" (LE, Mar. 1847) [CW6 - to come]
- T.117 (1847.03.21) "Something Else" (LE, Mar. 1847) [CW3 - final draft]
- T.118 [1847.04.04] "Two Methods of Equalizing Taxes" (4 April 1847, LE) [CW4 draft 16 June 2017]
- T.119 (1847.04.18 ) "Le National" (LE, Apr. 1847) [CW6 - to come]
- T.120 (1847.04.18) "The World Turned Up-side Down" (LE, Apr. 1847) [CW6 - to come]
- T.121 (1847.04.25) "Programme of the French Free Trade Association" (LE, Apr. 1847) [CW6 - to come]
- T.122 (1847.04.25) "Democracy and Free Trade" (LE, Apr. 1847) [CW6 - to come]
- T.123 (1847.04.25) "The Free Trader's Little Arsensa" (LE, Apr. 1847) [CW3 - final draft]
- T.124 (1847.05.02) "The Sliding Scale and its Impact on England" (LE, May 1847) [CW6 - to come]
- T.125 (1847.05.02) "Mr. Cunin-Gridaine's Logic" (LE, May 1847) [CW3 - final draft]
- T.126 (1847.05.09) "Subsistance Farming" (LE, May 1847) [CW6 - to come]
- T.127 (1847.05.09) "The Emperor of Russia" (LE, May 1847) [CW6 - to come]
- T.128 (1847.05.09) "One Profit against Two Losses" (LE, May 1847) [CW3 - final draft]
- T.129 (1847.05.23) "The People and the Bourgeoisie" (LE, May 1847) [CW3 - final draft]
- T.130 (1847.05.23) "On Moderation" (LE, May 1847) [CW3 - final draft]
- T.131 (1847.05.30) "Two Losses against One Profit" (LE, May 1847) [CW3 - final draft]
- T.132 (1847.05.30) "The Free Trade King" (LE, May 1847) [CW6 - to come]
- T.133 (1847.06.??) "Electoral Sophisms"
- T.134 (1847.06.13) "Speech given in the Duphot Hall" (LE, June 1847) [CW6 - to come]
- T.135 [1847.06.13] "The War against Chairs of Political Economy" (LE, June 1847)
- T.136 [1847.06.20] "The Salt Tax" (20 June 1847, LE) [CW4 draft 16 June 2017]
- T.137 (1847.06.20) "The Fear of a Word" (LE, June 1847) [CW3 - final draft]
- T.138 (1847.06.20) "Political Economy of the Generals" (LE, June 1847) [CW3 - final draft]
- T.139 [1847.06.27] "Mr. Ewart's Proposal for a Single Tax in England" (27 June, 1847, LE) [CW4 draft 16 June 2017]
- T.140 (1847.06.27 ) "On Communism" (LE, June 1847) [CW6 - to come]
- T.141 (1847.07.03) "Third Speech given in Paris at the Taranne Hall" [CW6 - to come]
- T.142 (1847.07.11) "Another Reply to La Presse on the Nature of Commerce" (LE, July 1847) [CW6 - to come]
- T.143 [1847.07.11] "On Mignet's Eulogy of M. Charles Comte" (11 July 1847, LE) [CW4 draft 16 June 2017]
- T.144 (1847.07.25) "High Prices and Low Prices" (LE, July 1847) [CW3 - final draft]
- T.145 (1847.08.??) "Fourth Speech given in Lyon"
- T.146 (1847.08.??) "Fifth Speech given in Lyon" [CW6 - to come]
- T.147 (1847.08.??) "Sixth Speech given in Marseilles" [CW6 - to come]
- T.148 (1847.08.15) "A Letter from M. F. Bastiat: The Three Chief Accusations made by the journal L'Atelier" (JDE, Aug. 1847) [CW6 - to come]
- T.149 [1847.09] "Draft Preface for the Harmonies"
- T.150 (1847.09.05) "A Complaint" (LE, Sept. 1847) [CW3 - final draft]
- T.151 [1847.09.16] "A Letter (to Hippolyte Castille) (on intellectual property)" (9 Sept. 1847, TI) [CW4 draft 16 June 2017]
- T.152 (1847.09.15) "Minutes of a Public Meeting in Marseilles by the Free Trade Association" (JDE, Sept. 1847) [CW6 - to come]
- T.299 [1847.11??] "The Difference between doing Business and an Act of Charity" (late 1847) [CW4 draft 16 June 2017]
- T.153 (1847.11.07) "The League's Second Campaign" (LE, Nov. 1847) [CW6 - to come]
- T.154 (1847.11.07) "The Spanish Association for the Defense of National Employment" (LE, Nov. 1847) [CW3 - final draft]
- T.155 (1847.11.14) "A Campaign Strategy proposed to the Free Trade Association" (LE, Nov. 1847) [CW6 - to come]
- T.156 (1847.11.14) "To the Members of the General Council of La Seine" (LE, Nov. 1847) [CW6 - to come]
- T.157 (1847.11.14) "Bastiat's reply to a letter by Blanqui on purely political matters and free trade" (LE, Nov. 1847) [CW6 - to come]
- T.158 (1847.11.21) "To the Members of the General Council of La Niève" (LE, Nov. 1847) [CW6 - to come]
- T.300 [1847.11.28] "On the Difference between Illegal and Immoral Acts" (28 Nov. 1847, LE) [CW4 draft 16 June 2017]
- T.159 (1847.11.28) "The Specialists" (LE, Nov. 1847) [CW3 - final draft]
- T.160 (1847.12) Le Libre-Échange. Journal de l'Association pour la liberté des échanges. 1er année. 1846-1847. (Paris: Guillaumin and Chaix, 1847).
- T.161 [1847.12.12] "On the Export of Gold Bullion" (12 Dec. 1847, LE) [CW4 draft 16 June 2017]
- T.162 (1847.12.12) "The Man who asked Embarrassing Questions" (LE, Dec. 1847) [CW3 - final draft]
- T.163 [1847.12.16] "A Speech on intellectual property given to the Publishers Circle" (16 Dec. 1847, TI) [CW4 draft 16 June 2017]
- T.165 (1847.12.26) "A Letter from Mr. Considérant and a Reply" [CW6 - to come]
- T.166 (1847.12) Articles written for ES2 and not dated (see below for details) [CW3 - final draft]
Bastiat's Writings in Early 1848 (before the Feb. Revolution)
- T.167 [1848.??] "Barataria" (c. 1848) [CW4 draft 16 June 2017]
- T.168 (1848.??) "Liberty, Equality"
- T.169 (1848.01) Sophismes économiques. Deuxième série. [Completed Dec. 1847, published Jan. 1848] [CW3 - final draft]
- T.170 (1848.01.02) "A Letter from Mr. Considérant and a Reply" (LE, Jan. 1848)
- T.171 (1848.01.01) "Reply to Various Other People" (LE, Jan. 1848) [CW6 - to come]
- T.172 (1848.01.02) "Liberty has given Bread to the English People" (LE, Jan. 1848) [CW6 - to come]
- T.173 (1848.01.07) "Seventh Speech given in Paris in the Montesquieu Hall" [CW6 - to come]
- T.174 (1848.01.16) "Armaments in England" (LE, Jan. 1848) [CW6 - to come]
- T.175 (1848.01.15) "Minutes of the Seventh Meeting of the Free Trade Association" (JDE, Jan. 1848) [CW6 - to come]
- T.176 [1848.01.15] "Natural and Artificial Organisation" (15 Jan., 1848, JDE) [CW4 draft 16 June 2017]
- T.177 [1848.01.16] "Laziness and Trade Restrictions" (16 Jan. 1848, LE) [CW4 draft 16 June 2017]
- T.178 [1848.01.22] "Letter to M. Jobard (on intellectual property)" (22 Jan. 1848, Ec. belge) [CW4 draft 16 June 2017]
- T.179 (1848.01.23) "On Maritime Registration" (LE, Jan. 1848) [CW6 - to come]
- T.180 (1848.01.30) "More on Armaments in England" (LE, Jan. 1848) [CW6 - to come]
- T.181 (1848.02.06) "The Mayor of Énios" (LE, Feb. 1848) [CW3 - final draft]
- T.183 (1848.02.06) "Two Englands" (LE, Feb. 1848) [CW6 - to come]
- T.184 (1848.02.13) "Antediluvian Sugar" (LE, Feb. 1848) [CW3 - final draft]
- T.185 (1848.02.20) "Monita secreta" (LE, Feb. 1848) [CW3 - final draft]
- T.27 [1845.06] Cobden and the League (Guillaumin, 1845). Only the Introduction by Bastiat has been translated. The rest of the book consists of Bastiat's translations and summaries of Anti-Corn Law League speeches and newspaper articles.
- T.38 [1845.11] Economic Sophisms. First Series (Guillaumin, 1846) [also listed as T.42]. Conclusion is dated “Mugron, 2 Nov., 1845". Published in Paris, by Guillaumin, in Jan. 1846.
- T.160 [1847.12] Le Libre-Échange. Journal de l'Association pour la liberté des échanges. 1er année. 1846-1847. (Paris: Guillaumin and Chaix, 1847). This book contains the first year's issues of the journal.
Introduction to Part 2: The “Paris” Writings I: Bastiat and the Free Trade Movement (Oct. 1844 - Feb. 1848)↩
[Updated; 21 June, 2017.]
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 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.
(Declaration of Principles of the French Free Trade Association, 10 May 1846 (CW6))
Key works from this period:
- the article which first brought him to the attention of the Parisian economists: T.19 "On the Influence of French and English Tariffs on the Future of the Two People", Journal des Économistes, October 1844. (CW6 forthcoming)
- his first book on T.27 Cobden and The League (1845) - in the long “Introduction” Bastiat deals with the strategy adopted by the ACLL and how it might be applied to France (CW6 forthcoming)
- many articles crticising protectionism and subsidies in the Journal des Économistes and the weekly journal of the French Free Trade Association, Le Libre-Échange which would be collected in the two volumes of his economic journalism Economic Sophisms series I (Jan. 1846) and II (Jan. 1848), such as:
- ES1 7 "Petition by the Manufacturers of Candles, etc." (JDE, October 1845), in CW3, pp. 49–53.
- ES1 17 "A Negative Railway" (c. 1845), in CW3, pp. 81–83.
- ES2 11 “The Utopian” (LE, 17 Jan., 1847), in CW3, pp. 187–98.
- ES2 10 “The Tax Collector” (c. 1847), in CW3, pp. 179–87.
- ES3 16 “Making a Mountain Out of a Molehill” (c. 1847), in CW3, pp. 343–50.
- ES3 18 “The Mayor of Énios” (LE, 6 Feb. 1848), in CW3, pp. 355–65.
- a parallel series of articles of a more theoretical nature in which Bastiat develops his innovative ideas which will become his future economic treatise Economic Harmonies
- T.23 “Letter from an Economist to M. de Lamartine” (Feb. 1845, JDE) (CW4 forthcoming)
- T.64 “On Competition” (May 1846, JDE) (CW4 forthcoming)
- T.81 “On Population” (Oct. 1846, JDE) (CW4 forthcoming)
- T.149 “Draft Preface for the Harmonies” (Sept. 1847) CW1, pp. 316–20.
- T.176 “Natural and Artificial Organisation” (Jan., 1848, JDE) (CW4 forthcoming)
- scattered works in which he explores the nature and history of plunder, ES2 1 “The Physiology of Plunder” (late 1847), CW3, pp. 113–30.
Not all the works from this period were written in Paris but they reflect his entry into the orbit of the Guillaumin network[20] of economists and free traders who were based largely in Paris, where he eventually took up residence. (The population of Paris in 1846 was just over 1 million people, thus dwarfing the small world of Mugron from which Bastiat had come). Urbain Guillaumin (1801–1864) was the same age as Bastiat and his publishing firm had become the centre of the political economy movement in Paris. He published most of their books (including nearly all of Bastiat’s), the main journal, the Journal des Économistes (founded 1841), and provided a home for the Political Economy Society (founded 1842) which held monthly meetings which Bastiat attended whenever he could.[21] Most importantly, Guillaumin had developed a network of intellectuals, academics, businessmen, politicians, and journalists which provided Bastiat with important contacts and sources of funding when he came to Paris in May, 1845 when the Political Economy Society hosted a dinner in his honour.[22]
Bastiat’s growing interest in free trade in 1844 led to him doing extensive research on Richard Cobden and the Anti-Corn Law League, which resulted in a long article which was published in the October issue of the Journal des Économistes and material which the following year would be published as a book on Cobden and the League.[23] These two works provided him with the entrée into the Parisian political economy movement which he needed in order to make a career as a free trade activist and then an economist. In the article on “On the Influence of French and English Tariffs” (Oct. 1844) Bastiat explains to French readers some of the profound changes which were sweeping the world as a result of a new climate of opinion in favour of free trade in England which he thinks will also eventually reach France. He wanted to tell them about the activities of the Anti-Corn Law League which the French press had largely ignored, and how free trade is not only an economic issue which will affect the prosperity of all people, but also a political issue in that it was challenging the power and privileges of the industrial and landowning elites which controlled the British government. He predicted something similar would happen in France. In this early article Bastiat shows his typical approach to economic problems which is to combine his solid grasp of economic data with tables of data to back up his arguments, and a strong moral component in which he argues that tariffs and protection are not only economically damaging to ordinary consumers but also violate their rights to liberty and property. The two approaches are tied together with a writing style which is both direct and very engaging.
Cobden and the League (June 1845) was Bastiat’s first book and it was published by Guillaumin which shows how quickly Bastiat was accepted into the free market group in Paris. In the long, nearly 100 page introduction, Bastiat took up a new theme which he had not addressed in his first article, namely, explaining to French readers the ideas and strategies of the Anti-Corn Law League. In his mind the Leaguers had developed an entirely new strategy of peaceful, mass agitation for radical reform from which the French free market movement could learn a great deal. This is why he translated so many of the speeches of the League’s coterie of travelling lecturers as examples for the French to copy. He also pointed out the important role that women played in the behind the scenes organisation of the League, thus demonstrating the depth of support the free trade agitators had been able to acquire since they began operating in 1838. We also see in this piece the beginnings of Bastiat’s interest in the notion of “plunder” (la spoliation) which was to become so important to his thinking over the next couple of years. He would return to this topic in the opening chapter of ES2 on “The Physiology of Plunder” (written late 1847).[24]
In the “Introduction” to Cobden and the League Bastiat linked the policy of tariffs and indirect taxation of consumer goods to the control of the British government by the English aristocracy, or “Oligarchy” as he called them, which had its roots in the Norman Conquest of Britain. These “plunderers” had skewed tax policy so that the burden of taxes was paid by the “industrious class”, the “plundered”, or the ordinary farmers, workers, and shop keepers. By striking at the lynchpin of their power, tariffs, which maintained their incomes at the expence of consumers, the Anti-Corn Law League was striking a blow for democracy and freedom in a “quiet revolution” which would change the entire world. Bastiat took it upon himself at this moment in history to hasten the arrival of this revolution in France by exposing the “sophisms” or the false arguments used by these plunderers to bolster their privileged position in society. The reforms advocated by Bastiat were modeled on those of the Prime Minister Sir Robert Peel, namely to abolish tariffs, to dismantle the colonial system, and to abolish all taxes except for a single, low direct tax like a tariff of 5% or a very low income tax which everyone would pay. [25] The demands he articulated in 1845 remained constant for the rest of his life. Bastiat concluded the introduction with a piece of impassioned rhetoric where he called for “Liberty for all! Free trade with the entire world! Peace with the entire world!”
Over the course of the following three years Bastiat published 21 articles in the JDE (8 in 1845, 10 in 1846, and 3 in 1847),[26] including many academic ones on trade policy and the negative impact of protectionism on France and England, as well as other more popularly written articles which would be included in his collections known as Economic Sophisms (Series I appeared in Jan. 1846, Series II in Jan. 1848).[27] Examples of his more substantial articles on trade policy include, “The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom” (June 1845);[28] “On the Future of the Wine Trade between France and England” (Aug. 1845);[29] and “On the Impact of the Protectionist Regime on Agriculture” (Dec. 1846).[30]
No one had ever seen anything like the Economic Sophisms before. In them, Bastiat perfected his “rhetoric of liberty”[31] in defence of free trade and free markets designed for a more popular audience. He used satire, mockery, sarcasm, jokes and puns, fake petitions to government officials, dialogues between stock characters, and sometimes even little plays in which some characters played defenders of tariffs and others their critics.[32] He wrote over 70 of them over a period of three years and produced two published collections (Jan. 1846 and Jan. 1848) which sold very well for Guillaumin and were quickly translated into English and several other European languages. The common aim of these very diverse pieces was to correct commonly held “fallacies” about economics (ideas that were wrong in theory or fact) and to expose and debunk another set of commonly held “sophisms” or partly true and partly false beliefs which were used to advance the private interests of the beneficiaries of tariffs and government privileges. Some of the fallacies he rebutted were the following: that the interests of the producers are the real interest of the nation; real wealth is measured by the amount of labor or effort expended to create goods and services; free trade harms the interests of the nation; and the state can and should provide all the needs of the people. The sophisms Bastiat attacked were very numerous but can be summarised under the following broad categories: “the seen and the unseen” - the idea that one should also look for the hidden or later appearing consequences of any intervention in the economy; positive and negative “ricochet” or flow on effects[33] - this is an early formulation of the Keynesian idea of the “multiplier effect” or that an intervention or subsidy will have a positive flow on effect to others; and the use of euphemisms and frightening language to make one's arguments - that critics of free market talk about trade “wars”, or the market being “flooded” with foreign goods.
Some examples of Bastiat’s best “economic sophisms” are the following. Perhaps his best in the First Series was the “Petition by the Manufacturers of Candles” (Oct. 1845),[34] a fictitious appeal for government assistance by the manufacturers of candles and other forms of artificial light against a foreign competitor, the sun, who undercut their prices and made it hard for them to make a living during daylight hours; and “A Negative Railway” (late 1845)[35] which is a hilarious story based on things Bastiat had observed in his home town when the General Council was debating where stops should be made on the new leg of the Bordeaux to Bayonne railway - the absurdity comes from the fact that if all the vested interests were satisfied the train would be forced to stop an infinite number of times in order to maximise the benefits to each town from overnight stays for passengers en route and the trans-shipping costs of moving luggage and cargo from one train to the next.
In the Second Series, “The Tax Collector” (late 1847)[36] contains a witty dialog between a tax collector, whom Bastiat mockingly calls “Mr. Blockhead”, and a sceptical wine producer, Jacques Bonhomme, who refuses to believe the tax collector’s claims that Jacques’ political “representatives” either represent him in any way or spend his hard earned money wisely in the public interest. In “The Utopian” (Jan. 1847)[37] an unnamed politician (perhaps Bastiat himself) is asked by the King to form a government which has dictatorial powers to enact reforms. The “utopian” politician dreams of all the cuts he could make to government programs and taxation, how many regulations he would abolish, and even how he would abolish the army and replace it with local militias. The story concludes with the utopian politician resigning because he realises his reforms would not work if they were imposed from above on a people who did not believe in their value. This returns to an idea he expressed in the “Introduction” to Cobden and the League that the battle for free trade would be won only after a revolution in thinking had taken place in the minds of voters and consumers.
In the Third Series, which Liberty Fund is publishing for the first time as Bastiat never found the time to publish his own edition before he died, Bastiat uses his stock device of the reductio ad absurdum in “The Mayor of Énios” (Feb. 1848).[38] The Mayor of a small town decides that if tariffs are good for France as a whole then they would also be good for his small town. He makes all the standard arguments in favour of tariffs to the townspeople and persuades them to let him impose tariffs on all goods, French or foreign, which are brought into the town. Trade grinds to a halt for most consumers but not for some privileged local producers within the town. Then the Prefect of the Département summons the mayor to the capital to inform him that only the nation state had the right to impose tariffs and that small towns like his should enjoy the many benefits of free trade and competition with its neighbours. The joke of course is that Bastiat has the Prefect defend free trade on the communal level while at the same time opposing it on the national and international level. In "Making a Mountain out of a Mole Hill" (c. 1847)[39] Bastiat for the first time introduces the figure of Robinson Crusoe[40] shipwrecked on his Island of Despair to explore the nature of individual economic action and choice in its simplest and most abstract form. Bastiat would make much greater use of the Crusoe and Friday “thought experiment” in his treatise Economic Harmonies a couple of years later. This might be the first time any economist has done this and it is doubly noteworthy because it had a profound impact on the Austrian economist Murray N. Rothbard who used Bastiat’s innovation in creating the foundations of his theory of economics in Man, Economy, and State (1962) which he was writing during the 1950s.[41]
For most of 1845–47 Bastiat threw himself whole-heartedly into the French Free Trade movement until his health gave out in early 1848, firstly by writing and perfecting the style of his “economic sophisms” during 1845; helping launch a French Free Trade Association beginning with an Association based in the port city of Bordeaux near where he lived (Feb. 1846) and then a national association in Paris (May 1846); and then founding, editing, and largely writing the Association’s weekly journal Le Libre-Échange in November 1846.[42] The president of the FFTA was the Duc d'Harcourt and Bastiat was the secretary of the Board. Other members of the Board were a “who’s who” of the Parisian economists.
During this period he wrote the “Declaration of Principles” of the FFTA (May 1846)[43], weekly editorials and articles for LE,[44] and crisscrossed the country organising mass meetings at which he and other leading figures in the free trade movement would give speeches. He gave 8 major speeches between Feb. 1846 and Aug. 1847 in Bordeaux, Marseilles, Lyon, and Paris. These will be published in CW6 (forthcoming). The “Declaration of Principles” of the FFTA is an important statement of his belief that free trade was a natural right of individuals just like their right to own property. Although he was not a charismatic public speaking he was very effective with his ability to mix his deep knowledge of the economic data, his skill at satirizing the arguments of his opponents, and his penchant for drawing upon well-known classics of French literature (like the playwright Molière or the writers of fables La Fontaine) to make complex economic ideas understandable to ordinary people. It is quite likely that in his public speeches he entertained the audience with versions of his sophisms which he recited and possibly even acted out for them on the stage. In his journal Libre-Échange, “The People and the Bourgeoisie” (May 1847),[45] he tried to appeal to workers by arguing that they had a property in themselves and their labour which was just as sacred as the property in things so beloved of the bourgeoisie and therefore they should pay no heed to the socialists who were calling for the abolition of property.
There were great hopes during the first year of operation of the Association as the English legislation to repeal the protectionist corn laws made its way through various readings of the bill which finally became law in June 1846. Also, large crowds attended the many public meetings the French free traders held in cities like Bordeaux and Paris at which Bastiat and others spoke. There was even a hint that the French Chamber of Deputies would consider tariff reform but these hopes began to fade in mid–1847 when the Chamber buried any chance for tariff reforms in committee and attendance at the free trade meetings began to fall off. The final blow to the Association came with the outbreak of revolution in February 1848 when the Association’s Board decided to close down the Association as they concluded that socialism posed a greater problem at that moment than tariff policy. By then Bastiat’s health was getting worse and he had to withdraw from the position of editor of Le Libre-Échange.
In addition to his articles on trade policy and his more popular sophisms, Bastiat also wrote articles of a more theoretical nature, some of which would later be included in his treatise Economic Harmonies (1st ed. Jan. 1850, 2nd expanded ed. July 1851). These were on topics such as sharecropping, competition, taxation, population theory, and the nature of economic organisation. It appears that Bastiat already had conceived most of his original and important theoretical ideas before he came to Paris in May 1845 for a welcome dinner hosted by the PES. These were revealed in a very important article he wrote for the JDE in February before he moved to Paris. It was written in the form of a “letter from an Economist” to Alphonse Lamartine,[46] one of the leading literary figures, politicians, and classical liberals of his day, criticising him for his support for the idea that workers had “a right to a job”. It is interesting that at this very moment only a few months after he became known to the Parisian economists he was speaking on their behalf to one of the most eminent men of the period. Some of the important ideas he presented in this article would become very important in his treatise Economic Harmonies and they include the idea that society is a mechanism “(un mécanique sociale) with its own internal ”driving force“ (moteur) which did not require an external ”mechanic“ to make it operate effectively and justly; that there was a providentially guided ”harmony“ of interests which existed in society in the absence of coercion; that there were ”les forces perturbatrices“ (disturbing forces), such as war, government regulations, privileges, subsidies, and tariffs which upset the harmony of the free market; that the free market had within it self-correcting mechanisms which he called ”les forces réparatrices“ (repairing or restorative forces) whereby the market attempts to restore equilibrium after it has been upset by ”les forces perturbatrices“ (disturbing forces); and his first use of the term ”organisation artificielle" (artificial organisation) which would become important in his later critique of socialism.
Another very original and provocative article was the one “On Population” (Oct. 1846)[47] in which he challenged the pessimism of Malthus’s theory by arguing that he had seriously underestimated two things: the productive power of the free market once its shackles had been removed, and the ability and willingness of rational people to plan the size of their families. The article created quite a stir among the economists who did not like the fact that an outsider from the provinces like Bastiat was challenging one of the core beliefs of orthodox political economy. Bastiat’s career as an theoretical economist began in the late fall of 1847 when he was able to give a series of lectures at the Taranne Hall in Paris. His “draft preface” to his lectures[48] gives some idea of how important this was to him, but the lecture series was cut short when revolution broke out at the end of February 1848.
By the end of this period, Bastiat had shown himself to be a gifted economic journalist (perhaps one of the greatest who has ever lived), a successful author, a committed and hardworking free trade activist, and an aspiring economic theorist who had become an important part of the Guillaumin network of economists in Paris.
Endnotes-
Minart discusses the “Guillaumin network” in Gérard Minart, Gustave de Molinari (1819–1912), pour un gouvernement à bon marché dans un milieu libre (Paris: Institut Charles Coquelin, 2012), p. 56. ↩
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On Guillaumin, see Lucette Levan-Lemesle, "Guillaumin, Éditeur d'Économie politique 1801–1864," Revue d'économie politique, 96e année, No. 2, 1985, pp. 134–149. On the Political Economy Society, see 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. On the JDE, see Lutfalla, Michel. "Aux origines du libéralisme économique en France: Le 'Journal des économistes.'" Revue d'histoire économique et sociale, 50, no. 4, 1972, pp. 494–517. ↩
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He describes his welcome dinner to Félix Coudroy in Letter 37 to Félix Coudroy, Paris, May 1845, in CW1, pp. 59–61. ↩
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Bastiat, T.27 Cobden et la Ligue, ou l'agitation anglaise pour la liberté du commerce (Paris: Guillaumin, 1845). The book consisted of Bastiat’s translations and summaries of League speeches and articles from the British press, along with his lengthy introduction, pp. i-xcvi. ↩
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T.166 “The Physiology of Plunder” (late 1847), ES2 1, CW3, pp. 113–30. ↩
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See, "Bastiat's Policy on Tariffs" in Further Aspects of Bastiat's Thought, in CW3, p. 455. ↩
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A full list of the articles Bastiat published in the JDE can be found here (to come). ↩
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Bastiat, Sophismes économiques. Première série. (Paris: Guillaumin, 1846) and Sophismes économiques. Deuxième série. (Paris: Guillaumin, 1848). He also wrote enough for a Third Series which were not published as a separate volume in his lifetime. All three can be found in CW3 final draft version. FEE ed. of Series I and II only ↩
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T.28 "Situation économique de la Grande-Bretagne. Réformes financières. Agitation pour la liberté commerciale" (The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom), JDE, Juin 1845, T. XI, 233–265. This was adapted from his introduction to his book Cobden and the League, pp. vii ff. ↩
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T.31 "De l’avenir du commerce des vins entre la France et la Grande-Bretagne" (On the Future of the Wine Trade between France and England), Journal des Économistes, Aug. 1845 in CW6 (forthcoming). ↩
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T.91 "De l’influence du régime protecteur sur l’agriculture" (On the Impact of the Protectionist Regime on Agriculture), Journal des Économistes, Décembre 1846 in CW6 (forthcoming). ↩
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See David M. Hart, "Bastiat’s Rhetoric of Liberty: Satire and the 'Sting of Ridicule'," in the Introduction to CW3, pp. lviii-lxiv. ↩
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See, "The Format of the Economic Sophisms," in the Introduction to CW3, pp. li-lii; and "Bastiat and Conversations about Liberty" in Further Aspects of Bastiat's Thought, in CW3, pp. 470–73. ↩
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"The Sophism Bastiat never wrote: The Sophism of the Ricochet Effect" in Further Aspects of Bastiat's Thought, in CW3, pp. 457–61. ↩
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T.33 ES1 7 "Pétition des fabricants de chandelles, etc." (Petition by the Manufacturers of Candles, etc.), Journal des Économistes, October 1845, T. 12, p. 204–07 in CW3, pp. 49–53. FEE ed. ↩
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T.38 ES1 17 "Un chemin de fer négatif" (A Negative Railway) (c. 1845) in CW3, pp. 81–83. FEE ed. ↩
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T.166 ES210 "Le percepteur" (The Tax Collector) (c. 1847), in CW3, pp. 179–87. FEE ed. ↩
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T.102 ES211 "L’utopiste (The Utopian), Libre-Échange, 17 January 1847 in CW3, pp. 187–98. FEE ed. ↩
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T.181 ES3 18 "Le maire d’Énios" (The Mayor of Énios), Libre-Échange, 6 February 1848, in CW3, pp. 355–65. ↩
-
T.96 ES3 16 "Midi à quatorze heures" (Making a Mountain out of a Mole Hill) (c. 1847) in CW3, pp. 343–50. ↩
-
See "Bastiat’s Invention of 'Crusoe Economics'," in the Introduction to CW3, pp. lxiv-lxvii. ↩
-
Murray N. Rothbard, “6. A Crusoe Social Philosophy,” in The Ethics of Liberty (Atlantic Highlands, N.J.: Humanities Press, 1982), p. 29–34; and 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 Chapter 2. “Direct Exchange”. ↩
-
The first year of the journal was republished in book form by Guillaumin: Le Libre-Échange. Journal de l’Association pour la liberté des échanges. 1er année. 1846–1847. (Paris: Guillaumin and Chaix, 1847). ↩
-
T.62 (1846.05.10) “Declaration of Principles of the Free Trade Association” (Déclaration de principes (Association pour la liberté des échanges)) 10 May, 1846; reprinted in LE 25 Apr. 1847, no. 22, p. 169; along with the Association’s new programme. [OC2.1, pp. 1–4.][CW6] ↩
-
These free trade editorials and articles will appear in CW6 (forthcoming). ↩
-
T.129 ES3 6 "Peuple et Bourgeoisie" (The People and the Bourgeoisie), Libre-Échange, 22 May 1847, in CW3, pp. 281–87. ↩
-
T.23 (1845.01.15) “Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job ” (Un économiste à M. de Lamartine. A l’occasion de son écrit intitulé: Du Droit au travail ), JDE , February 1845, T. 10, no. 39, pp. 209–223. [OC1.9, pp. 406–28][CW4 forthcoming] ↩
-
T.81 "De la population," (On Population), JDE, 15 Octobre 1846, T. XV, pp. 217–234, in CW4 (forthcoming). A revised version of this article appeared as chapter 16 of the second, expanded edition of Economic Harmonies (1851) which was published after his death. FEE ed. ↩
-
T.149 (Sept. 1847) “Draft Preface for the Harmonies” (Projet de préface pour les Harmonies) in CW1, pp. 316–20. (/titles/2393#lf1573–01_label_689). ↩
Correspondence↩
Letter 32. Mugron, 24 Nov. 1844. To Richard Cobden↩
SourceLetter 32. Mugron, 24 Nov. 1844. To Richard Cobden (OC1, pp. 106-9) [CW1, pp. 50-53].
TextSteeped in the schools of your Adam Smith and our J. B. Say, I was beginning to believe that this doctrine that was so simple and clear had no chance of becoming popular, at least for a long time, since, over here, it is completely [51] stifled by the specious fallacies57 that you refuted so well and which are disseminated by the Fourierist, communist, and other sects with which our country is for the moment infatuated, and also by the disastrous alliance of the party newspapers with those newspapers paid for by committees of manufacturers.
It was in this state of total discouragement in which these sad circumstances had cast me that, as I happened to have taken out a subscription to the Globe and Traveller,58 I learned both of the existence of the League and the struggle between free trade and monopoly in England. As I am an enthusiastic admirer of your powerful and very moral association and in particular of the man who appears to give it such forceful and wise direction in the face of countless difficulties, I have been unable to contemplate this sight without wanting to do something for the noble cause of the liberation of work and commerce. Your honorable secretary, Mr. Hickin, was good enough to send me the issue of the League, dated January 1844, together with a number of documents relating to the campaign.
Equipped with these documents, I have tried to draw public attention to your proceedings, on which French newspapers have maintained a calculated and systematic silence. I have written articles in the newspapers of Bayonne and Bordeaux, two towns naturally positioned to become the cradle of the movement. In addition, recently I had published in Le Journal des économistes (issue no. 35, Paris, October 1844) an article which I recommend to you. What has been the result? Newspapers in Paris, on which our laws confer the monopoly of opinion, have considered discussion to be more dangerous than silence. They have therefore created silence around me, totally sure that these arrangements would reduce me to impotence.
In Bordeaux, I have tried to organize an association for trade liberalization, but I have failed because, although there are a few souls who instinctively would like freedom to a certain extent, there are none who understand it in principle.
What is more, an association functions only through publicity, and it needs money. I am not rich enough to endow it on my own, and asking for money would have created the insurmountable obstacle of suspicion.
I have thought of founding in Paris a daily newspaper based on these two concepts, free trade and the elimination of a partisan spirit. Here again, I [52] have encountered money and other problems, which I will not go into. I will regret it for the rest of my life, because I am convinced that a newspaper like this, which fills a public need, would have a chance of success. (I have not given up on this.)
Lastly, I wanted to know whether I had any chance of being elected a deputy, and I have become certain that my fellow citizens would give me their vote, since I almost achieved a majority at the last elections. However, personal considerations prevent me from aspiring to this position, which I might have used to the advantage of our cause.
Obliged to limit my action, I began to translate your sessions59 in Drury Lane and Covent Garden. Next May, I will submit this translation for publication. I expect it to have a good effect.
- 1. It will be necessary for France to become acquainted with the existence of the spirited campaign in England against monopolies.
- 2. It will be necessary for people to stop thinking that freedom is just a trap set by England for other nations.
- 3. The arguments in favor of free trade would perhaps have more effect if they were in the lively, varied, and popular form of your speeches rather than in the methodical works of economists.60
- 4. Your tactic that is so well directed downward to the people and upward to Parliament will teach us to act in the same way and inform us on the benefit we may gain from constitutional institutions.
- 5. This publication will be a forceful blow to the two major plagues of our time, the partisan spirit and national hatreds.
- 6. France will see that in England there are two entirely conflicting opinions and that, consequently, it is absurd and contradictory to envelop the whole of England in the same hatred.
In order for this work to be complete, I would have liked to obtain a few documents on the origin and beginnings of the League. A short history of this association would be a suitable preface to the translation of your speeches.61 I have asked Mr. Hickin for these documents, but doubtless he has been too [53] busy to reply to me. My documents go back only to January 1843; I would at least need the debate in Parliament on the 1842 tariff and in particular the speech in which Mr. Peel proclaimed the economic truth in the form that has become so popular, “We must be allowed to buy in the cheapest market, etc.”
I would also like you to tell me which of your speeches, either at meetings or in Parliament, you think most appropriate to translate. Lastly, I would like my book to contain one or two free-trade discussions in the House of Commons and ask that you would be good enough to tell me which ones.
I would be most honored to receive a letter from the man of our time for whom I have the keenest and most sincere admiration.
Letter 33. Mugron, 24 Nov. 1844. To Horace Say↩
SourceLetter 33. Mugron, 24 Nov. 1844. To Horace Say (OC7, pp. 377-80) [CW1, pp. 53-55].
TextPlease allow me to express to you the feeling of deep satisfaction I had on reading your kind letter of the 19th of this month. Without the sentiments contained in this most valued letter, how would we, men of solitude who are deprived of the useful warnings received through contact with the rest of the world, know whether or not we are in the group of dreamers, all too common in the country, who have allowed themselves to be obsessed by a single idea? Do not tell me, sir, that your approval can merely have limited value in my eyes. Since France and humanity lost your illustrious father, whom I also venerate as my intellectual father, what sentiments can be more precious to me than yours, especially when your own writings and the expressions of confidence which the population of Paris have heaped on you give such authority to your judgments?
Among the authors of your father’s school whom death has respected, there is one above all whose agreement is of inestimable value to me, although I would not have dared to solicit it. I refer to M. Charles Dunoyer. His first two articles in Le Censeur européen (“On the Equilibrium Between Nations”),62 together with those by M. Comte which precede them,63 settled [54] the direction of my thought and even my political actions a long time ago.64 Since then the economist school65 appears to have given way before the host of socialist sects which seek to achieve the universal good, not in the laws of human nature but in artificial organizations which are the products of their imagination. This is a disastrous mistake, which M. Dunoyer has been campaigning against for a long time with a perseverance that can almost be called prophetic. I therefore could not prevent the rise of a feeling almost of pride when I learned from your letter that M. Dunoyer has approved of the spirit of the text you have had the goodness to include in your esteemed collection.
You are kind enough, sir, to encourage me to send you a further text. I am now devoting the little time I have at my disposal to a work of patience, the usefulness of which I consider to be unquestionable, even though it consists only of simple translations. In England there is a major movement in support of free trade. This movement has been kept carefully hidden by our newspapers and where, from time to time, they are obliged to mention it, it is to distort its nature and influence. I would like to put documents relating to it before the French public and show that on the other side of the Channel there is a party with many members that is powerful, honest, judicious, ready to become the national party, and ready to direct the policy of England, and it is to this party that we should extend a hand of friendship. The public would then be capable of judging whether it is reasonable to envelop the whole of England in the wild hatred that the press is trying to whip up with such obstinacy and success.
I am expecting other benefits from this publication. Readers will find in it an attack on the very root of the partisan spirit, the undermining of the basis of national hatred, the theory of markets set out not methodically but using forms that are popular and striking, and finally, they will see in action the energy, the demonstration tactics which now mean that in England, when genuine abuse is attacked, it is possible to forecast the day it will be [55] abolished, just as our military engineers forecast the time at which besiegers will seize a citadel.
I am planning to come to Paris in April next to supervise the printing of this publication,66 and if I had any hesitations in doing this your kind offer and the desire to make your acquaintance and those of the distinguished men whom you meet would be enough to persuade me.
Your colleague, M. Dupérier, was also good enough to write to me about my article. “It is good in theory,” he said; and I am tempted to reply to him by your esteemed father’s quip, “My God, what is no good in practice is good for nothing.” M. Dupérier and I follow very different paths in politics. My esteem for him is all the higher for his frankness and the frankness of his letter. These days, there are very few candidates who tell their opponents what they think.
I forgot to say that if the time and my health permit, following your encouraging invitation I will send another article to Le Journal des économistes.67
I would be grateful, sir, if you would convey to MM Dussard, Fix, and Blanqui my thanks for their kindness and assure them that I wholeheartedly support their noble and useful work.
P.S. I am taking the liberty of sending you a text published in 1842 relating to the elections written by one of my friends, M. Félix Coudroy. You will see that the doctrines of MM Say, Comte, and Dunoyer have generated some green shoots in places on the arid soil of the Landes. I thought you would be pleased to learn that the sacred fire is not quite extinguished. As long as there is still a spark, we should not lose hope.
Letter 216 to Félix Coudroy (1845)↩
SourceLetter 216: Letter to Félix Coudroy (1845). This letter was discovered by the original French editor Paillottet among Bastiat's papers and was inserted in a footnote to T.9 "Reflections on the Question of Dueling" (11 February 1838) which was a review in the local newspaper La Chalosse of Coudroy's pamphlet on dueling. Paillottet states it was written sometime in 1845. [OC7, p. 10] [CW1, p. 309].
Editor's IntroductionThis short letter to his boyhood friend and neighbour in Mugron Félix Coudroy 47 tells us something about Bastiat's method of writing, namely that he preferred the simplicity and directness of his first drafts. It also shows us that he was aware of a new work by one of the leading members of the circle of economists in Paris, Charles Dunoyer, 48 whose three-volume magnum opus De la liberté du travail had been published in early 1845. Dunoyer was the President of the Political Economy Society which would host a welcome dinner for Bastiat in Paris in May 1845. Coudroy and Bastiat belonged to a discussion group in Mugron called "The Academy" which would meet regularly to discuss new books and current events and where they no doubt discussed Dunoyer's book soon after it appeared. Bastiat would write but not publish a review of Dunoyer's book in March 1845 which can be found below T.20 "On the Book by M. Dunoyer. On The Liberty of Working" (March, 1845). Coudroy would later that year write a long review of Bastiat's first book on Cobden and the League for the JDE. 49
TextMy dear Félix,
Because of the difficulty of reading, I cannot properly judge the style, but my sincere conviction (you know that here I set aside the usual modesty) is that our styles have different qualities and faults. I believe that the qualities of yours are such that, when it is used, it shows genuine talent; I mean to say a style that is lively and animated with general ideas and glimpses that are luminous. Always make copies on small sheets; if one needs to be changed, it will not cause much trouble. When you are copying you will perhaps be able to add polish, but, for my part, I note that the first draft is always faster and more accessible to today's readers who scarcely go into anything in depth.
Do you not have an opinion of M. Dunoyer?
47 Félix Coudroy (1801-74) was the son of a doctor from Mugron and was a boyhood friend and eventually a neighbour of Bastiat's in Mugron. He studied law in Toulouse and Paris but a long illness prevented him from practicing. Coudroy and Bastiat were both members of a local discussion group in Mugron, "The Academy," where they pursued their intellectual interests for over 20 years.
48 Charles Dunoyer (1786-1862) was a journalist; an academic (a professor of political economy); a politician; the author of numerous works on politics, political economy, and history; a founding member of the PES (1842) of which he was the permanent president; and a key figure in the French classical liberal movement of the first half of the nineteenth century.
49 Félix Coudroy, "De l'influence de l'esprit et des procédés de la Ligue sur les progrès de la civilisation," JDE, T. 12, N° 48, Novembre 1845, pp. 349-368.
Letter 34. Mugron, 7 March 1845. To M. Ch. Dunoyer↩
SourceLetter 34. Mugron, 7 March 1845. To M. Ch. Dunoyer, membre de l'Institut (OC7, pp. 371-72) [CW1, pp. 55-56].
TextOf all the testimonials I might have hoped to receive, that which I have just received from you is certainly the most precious. Even allowing for kindness [56] in the very flattering references to me on the first page of your book,69 I cannot help being certain that I have your vote, knowing how much you are in the habit of matching your utterances to your thought.
When I was very young, sir, a happy chance made me pick up Le Censeur européen and I owe the direction of my studies and outlook to this circumstance. In the time that has elapsed since this period, I am unable to distinguish what is the fruit of my own meditations from what I owe to your writings, so completely do they appear to have been assimilated. But if all that you had done were to reveal to me in society and its virtues (its views, ideas, prejudices, and external circumstances) the true elements of the good it enjoys and the evils it endures, if all you had taught me were to see in governments and their forms only the results of the physical and moral state of society itself, it would be none the less proper, whatever additional knowledge I had managed to acquire since then, to give you and your colleagues the credit for its direction and principle. It is enough to say to you, sir, that nothing could give me more genuine satisfaction than the reception you have given to the two articles I sent to Le Journal des économistes and the sensitive way in which you were kind enough to express it.70 I will be devoting serious study to your book and gleaning much enjoyment from following the development of the fundamental distinction to which I have just referred.
Letter 35. Mugron, 7 March 1845. To M. Al. de Lamartine↩
SourceLetter 35. Mugron, 7 March 1845. To M. Al. de Lamartine. (OC7, pp. 373-74) [CW1, pp. 56-57].
TextAbsence has prevented me from expressing to you earlier the deep gratitude I felt at the reception you deigned to give to the letter I took the liberty of addressing to you through Le Journal des économistes. The letter you have [57] been good enough to write to me is very precious to me and I will always keep it, not only because of the inimitable charm which pervades it but also and above all as an example of your kind readiness to encourage the first attempts of a novice who has not been afraid to point out in your admirable writings a few proposals which he considers to be errors that have escaped your genius.
Perhaps I have gone too far in asking you for that analytical rigor, that accuracy in dissection which explores the field of discovery but which cannot enlarge it. All human faculties have their mission; it is up to a genius to lift himself up to view new horizons and point them out to the crowd. At first these horizons are vague, and reality and illusion are confused in them; the role of analysts is then to come and measure, weigh, and distinguish them. This is how Columbus revealed a new world. Do we find out whether he had taken all the measurements and traced all the contours? Is it even important that he thought he had landed in Cathay? Others have come after, patient workers who have corrected and added to the work. Their names remain unknown while that of Columbus has resounded down the centuries. But, sir, is not a genius the king of the future rather than of the present? Can he claim immediate and practical influence? Do his powerful leaps forward into unknown regions have much in common with the activities of men of the present time or those of businessmen? This is a doubt that I am putting to you; your future will answer it.
You are good enough to acknowledge, sir, that I have traveled through the domain of liberty and you are urging me to rise to meet equality and still further to meet fraternity. How can I help but try, when the request is yours, to take new steps in this noble direction? Doubtless, I will not attain the heights to which you soar, since the habits of my mind no longer allow me to use the wings of imagination. But I will endeavor at least to direct the torch of analysis to a few corners of the huge subject you are suggesting that I study.
Permit me to end by saying, sir, that a few incidental disagreements do not prevent me from being the most sincere and fervent of your admirers, as I hope one day to be the most fervent of your disciples.
Letter 36. Mugron, 8 Apr. 1845. To Richard Cobden↩
SourceLetter 36. Mugron, 8 Apr. 1845. To Richard Cobden (OC1, pp. 109-10) [CW1, p. 58].
TextSince you permit me to write to you, I will reply to your kind letter dated 12th December last. I have been discussing the printing of the translation I told you about with M. Guillaumin, a bookseller in Paris.
The book is entitled Cobden and the League, or the Campaign in England in Favor of Free Trade. I have taken the liberty of using your name for the following reasons: I could not entitle this work The Anti-Corn Law League. Apart from the fact that this would have a barbarous sound for French ears, it would have brought to mind just a limited conception of the project. It would have presented the question as purely English, whereas it is a humanitarian one, the most notably so of all those which have brought campaigning to our century. A simpler title, The League, would have been too vague and would have made people think of an episode in our national history. I therefore felt it necessary to make it clear by preceding it with the name of the person acknowledged to be the “driving force of this campaigning.” You have yourself recognized that individual names were sometimes needed “to give point, to direct attention” and I am using this as my justification.
Fashion—individual names, acknowledged reputations—has so much influence here that I felt it necessary to make a further effort to bring it over to our side. I have written a letter to M. de Lamartine in the économistes (the February 1845 issue).72 This illustrious writer, yielding to the tyrant fashion, had assailed economists in the most unjust and thoughtless manner, since, in the same text, he adopted their principles. I have reason to believe, from the reply he was good enough to send me, that he is not far from joining our ranks, and that would perhaps be enough to cause an unexpected swing in public opinion to us. Doubtless, such a swing would be fragile, but finally we would have, at least temporarily, an audience, and that is what we lack. For my part, I ask for one thing only, and that is that people do not deliberately cover their ears.
Permit me to recommend that you peruse the letter to which I refer, if you have the opportunity.
Letter 37. Paris, May 1845. To Félix Coudroy↩
SourceLetter 37. Paris, May 1845. To Félix Coudroy (OC1, pp. 50-52) [CW1, pp. 59-61].
TextMy dear Félix, I am sure that you are waiting to hear from me. I, too, have a lot to tell you but I must be brief. Although at the end of each day it transpires that I have done nothing, I am always busy. In Paris, the way things are, until you are in the swing of things you need half a day to put fifteen minutes to good use.
I was given a good welcome by M. Guillaumin, who is the first economist I have seen. He told me that he would give a dinner, followed by a reception, to put me in contact with the men of our school; as a result I have not gone to see any of these people. This dinner was held yesterday. I was on the right of the host, clear proof that the dinner was in my honor, and Dunoyer was on his left. Next to Mme Guillaumin were MM Passy and Say. MM Dussard and Reybaud were also there. Béranger had been invited but he had other engagements. In the evening a crowd of other economists arrived: MM Renouard, Daire, Monjean, Garnier, etc., etc. Between you and me, my friend, I can tell you that I felt a keen satisfaction. There were none of these people who had not read, reread, and perfectly understood my three articles. I could write for a thousand years in La Chalosse, La Sentinelle, or Le Mémorial73 without finding a genuine reader, except for you. Here, one is read, studied, and understood. I am sure of this since all or nearly all of them went into the greatest detail, which shows that politeness was not the only reason for this welcome; the only one I found a little cold was M. X. To tell you of the kindnesses I was covered with and the hope that appeared to be based on my cooperation is to make you understand that I was ashamed of my role. My friend, I am perfectly convinced today that, although our isolation has prevented us from equipping our minds sufficiently, it has, at least when it comes to particular questions, given them a strength and accuracy which many more educated and gifted men perhaps do not possess.
What gave me the most pleasure, because it proved that I have really been read with care, is that the last article, entitled “Sophism,”74 was ranked above the others. This is the one in fact in which the principles are examined in the greatest depth, and I was expecting it not to have been tackled. Dunoyer [60] asked me to write an article on his work, to be included in the Débats.75 He was kind enough to say that he thought me eminently suited to making his work appreciated. Alas! I can already see that I will not be able to maintain the far too lofty status which these kind men have accorded me.
After dinner, we discussed dueling. I gave a brief summary of your brochure. Tomorrow we are having another corporate dinner at Véfour; I will take it there and, as it is not long, I hope it will be read. If you could rewrite it, or at least modify it, I believe it might be included in the journal, but the rules prevent it from being quoted verbatim. Incidentally, Le Journal des économistes is not as lowly rated as I feared. It has five or six hundred subscribers and is gaining authority every day.
Repeating the conversation to you would carry me too far. What a world, my friend, and it can well be said “You live only in Paris and just vegetate elsewhere!” In spite of this, I already hanker after our walks and intimate conversations. I lack paper; farewell, dear Félix. Your friend.
P.S. I was mistaken. A dinner, even if it is with economists, is not an opportune occasion for reading a brochure. I gave yours to M. Dunoyer and will not know what he thinks for a few days. You will find in the 27 March issue of Le Moniteur, which should be in the library in my room, the indictment of dueling by Dupin.76 Perhaps that will give you an opportunity to lengthen your brochure. I spent this evening with Y. He gave me the most cordial welcome and we discussed everything, even religion. I thought he was weak on this subject, since he respects it without believing in it.
It was only today that I went to pay my respects to M. Lamartine. I did not enter, as he was leaving for Argenteuil, but with his usual courtesy, he sent me a message to say that he wanted us to talk without constraint and gave me an appointment for tomorrow. How well will I do?
During our dinner, or more accurately after it, a major question was bandied about: “on intellectual property.” A Belgian, M. Jobard, expressed new ideas which will astonish you. I am longing to discuss all this with you. The fact is, in spite of my successes of the moment, I feel that I am no longer [61] disposed to be entertained in this manner. This is water off a duck’s back, and all things considered, life in the provinces might be made more pleasant than it is here if one just had a taste for studying and the arts.
Farewell, my dear Félix, until later. Write to me from time to time and keep busy on your work on dueling. Since the court has reverted to its strange legal posture, it is worth doing.
Letter 38. Paris, 23 May 1845. To Félix Coudroy↩
SourceLetter 38. Paris, 23 May 1845. To Félix Coudroy (OC1, pp. 52-54) [CW1, pp. 61-62].
TextYou are expecting a lot of details, my dear Félix, but you are going to be disappointed. Since my last letter, which I sent via Bordeaux and for which I have not yet received a receipt, we have been having weather that is discouraging me from making visits. I spend my mornings wasting time on mere trifles, shopping, and essential business and the evenings regretting this. My letter will therefore be rather arid though I hope you will be pleased with it because of the letter from Dunoyer that I enclose. You will see that he liked your piece on dueling. I have just left him and he repeated to me verbally what he has written in his letter. He praised the essence and style of your brochure and said that it was based on solid work that was on the right track. He expressed his regret that he could not discuss it further and his desire to come to my house to discuss the subject in greater detail. Tomorrow I will send it to M. Say, who is a really nice man because of his gentleness and grace, combined with very firm principles. He is the anchor of the economists’ party. Without him, without his conciliating spirit, the group would soon be dispersed. Many of my colleagues are employed by newspapers which pay them much better than Le Journal des économistes. Others have political affairs to maintain. In a word, the whole thing is an accidental meeting of well-meaning men who like each other even though their opinions differ on many points; there is no firm, organized, and homogeneous party. For my part, if I had the time to remain here and the fortune to hold receptions at home, I would try to found a sort of League. But when you are only passing through, it is useless to embark on such a grand enterprise.
Anyway, I have arrived too soon; my translation is being printed only slowly.77 If I had been able to hand out a few copies, they might perhaps have opened a few doors to me.
[62]I have not seen M. de Lamartine; he is away from Paris and I do not know when he will return.
Another nice man is M. Reybaud. The proof of his remarkably vigorous intellect is that he became an economist by studying the nineteenth-century reformers. He agreed with them when he began his work, but his good sense has triumphed.
I am trying to find out whether M. Guizot has written to you. It is to be feared that his many activities prevent him from reading your brochure. If he were just a man of letters, he would certainly reply to you, but he is a minister and member of the government. In any case, if anything arrives from that quarter, do let me know.
I have been somewhat occupied with public affairs, I mean departmental ones. It would take too long to tell you about it. But I believe that the Adour, that is to say, the lower Adour, from Hourquet to the Gave, will obtain 1.5 million francs. Chance put me in a position to give this a helping hand: it will always be an advantage if the steamboats reach Pontonx. As for the stretch between Mugron and Hourquet, one is dying to know what was responsible for its exclusion, but what can we do? There is just one thing that the general public does not want to become involved in, and that is public affairs.
I do not know whether I will write to my aunt today. In any case tell her that we are all well here. Farewell, my dear Félix; remember me to your sister.
Letter 39. Paris, 5 June 1845. To Félix Coudroy↩
SourceLetter 39. Paris, 5 June 1845. To Félix Coudroy (OC1, pp. 54-57) [CW1, pp. 62-65].
TextMy dear Félix, an opportunity has arisen for Bordeaux and I do not want to let it go without a few words of reply to your letter. Forgive me if I am too brief. I am ashamed to call myself busy since the days pass without my making use of them. This is something that can be explained only here. In any case, we will soon be able to talk about everything we find so interesting and that interests scarcely anyone but us.
You have not acknowledged receiving the letter from Dunoyer; I think that you received it only after the departure of Calon. You have seen his opinion of your brochure, and I am longing to hear that of M. Guizot—if he gives it to you—since people assure you that the sole occupation of men in power is to retain it. I have not yet sent it to M. Say, as he is in the country [63] and I will not see him until Friday. He is a charming man and the one I prefer; I am due to dine with him at Dunoyer’s and on the 10th at Véfour at the economists’ banquet. We should be tossing around the question of inviting the government (always the government!) to set up chairs of political economy. I have been made responsible for preparing a few ideas on this, and this is a subject which would please me, but I will limit myself to mulling over my opinion since, there as elsewhere, there are egos and placemen who have to be handled with kid gloves. As for an association which would please me a great deal more, I will wait for my translation78 to be published before speaking about it, since the translation may prepare people’s minds for it. However, for an association, an agreed principle is needed, and I am very much afraid that it is lacking. I have never seen so much fear of absolute conviction, as though we should not be leaving our opponents the task of moderating our progress as necessary.
In Mugron, I will explain to you the reasons which prevent the journal from being modified. Besides, the Paris press is now based on advertising and, from the financial point of view, is established on bases of such a kind that nothing new is possible. This being so, it is only the association and the sacrifices that it alone can make that can get us out of this blind alley. I am coming to things that are personal to me and speak of them to you openly as to a bosom friend, with no false modesty. I believe that a lack of incomprehension is a characteristic which we have in common and I do not fear that you will find me too presumptuous.
My book will have thirty sheets,79 and twenty have been printed. I hope that it will all be ready at the end of the month. I have changed nothing or very little of the introduction I read to you. About half will appear in the next issue of Le Journal des économistes.80 Ignorance of affairs in England is such, even here, that this work should, I think, have an effect on studious people. I will tell you frankly what effect it has.
Each day I acquire proof that the previous articles have had some effect. The publisher has received several requests for subscription giving reasons, among which is a letter from Nevers that said “Two articles in Le Moniteur industriel have reached us which seek to refute an article in Le Journal des économistes entitled ‘Sophisms.’ All we know of this article are the quotations [64] in Le Moniteur but they were enough to give us a high opinion of it. Would you please send it to us and give us a subscription?” Two subscriptions were requested from Bordeaux. But what gave me the most pleasure was a conversation I had with M. Raoul Duval, a counselor at the court of Rheims, a town that is essentially protectionist. He assured me that the article on tariffs had been read aloud and that at each instant the manufacturers said, “That is true, that is very true, that is what is going to happen to us, there is no answer to this.” This scene, my dear Félix, signposts the route I should be following. If I could, I would now examine the real situation of our protected industries in the light of principles and go into the field of facts. M. Guillaumin wants me to review a dozen more sophisms to gather them together and, at his expense, to make them into a low-cost brochure that might reach a wide audience.
It needs to be you, my dear Félix, for me to recount these things which, as it happens, leave me as cold as if they concerned a third party. I was already set on my articles and your judgment was enough of a guarantee for me; I was only too happy that there were still other readers as I had given up hope of this.
I will tell you that I have almost decided to go to shake hands with Cobden, Fox, and Thompson; a personal acquaintance with these men may be useful to us. I have some hope that they will give me some documents, but in any case I will make a stock of a few good works, including speeches by Fox and Thompson on subjects other than free trade. If I stayed in Paris I would feel the need to devote myself to this specialty, and this would be indeed enough for my frail shoulders. But, in our gentle retreat, that would not be enough for us. Anyway, economics appears much finer when it is embraced in its totality. It is this harmonious whole that I would like to be able to master one day. You should indeed take the time to set out some of its traits.
If my small treatise, Economic Sophisms, is a success, we might follow it with another entitled Social Harmonies.81 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.
I will take some works from here. My trip will at least serve to provide us with some fodder and knowledge of something of the spirit of the century.
[65]Farewell, my dear Félix. I have not written to my aunt today; please tell her that I have received her letter with much pleasure after being so long without one.
Letter 40. Paris, 16 June 1845. To Félix Coudroy↩
SourceLetter 40. Paris, 16 June 1845. To Félix Coudroy (OC1, pp. 57-59) [CW1, pp. 65-66].
TextMy dear Félix, I have to tell you that my League has been printed.82 They are now working on the introduction and it cannot take longer than a week. It therefore appears that at the end of the month I will be free to go to London and that on 15 July I will have the pleasure of greeting you. Tomorrow, I dine at Dunoyer’s with all of our group, Dussard, Reybaud, Fix, Rossi, and Say. I will seal my letter only after this, in case I have some news to tell you. On Sunday, an approach was made to me and perhaps this will be discussed tomorrow. There is so much for and against that I could never take a decision without you. It is to be the manager of Le Journal des économistes. From the financial point of view, it is a wretchedly low salary, a hundred louis per year, including editing. However, you will easily understand how close this position is to my inclinations. First of all, this journal, well managed, could have a great influence on the Chamber, and by extension the press. If the economist in situ establishes a reputation for superiority in his specialty, it would be impossible for him not to be feared to some extent by the protectionists and reformers, in a word, ignorant people of all sorts. Through the spoken word I will never get very far because I lack confidence, memory, and presence of mind, but my pen is sufficiently skilled in dialectics to put to shame certain of our statesmen.
Secondly, if I am managing the journal, my management will end up being exclusive since I will be surrounded by lazy people, and, to the extent that the shareholders allow, I will succeed in giving it the homogeneity that it lacks.
I will be in natural and necessary contact with all the eminent men, at least in the spheres of political economy and financial and customs affairs, and finally, I will be in their eyes the spokesperson of a public opinion that is conscientious and enlightened. I think that a role of this sort may be extended indefinitely, depending on the level of the person holding it.
As for the work, it is not of the type, like daily journalism, that would [66] distract me from continuing my studies. Lastly (and this is only a distant prospect), if the manager of the journal is equal to his task, he might profitably join the ranks of candidates for a chair of political economy that falls vacant.
These are the points in favor. But it would mean leaving Mugron. I would have to leave the people I love and allow my aunt to progress in solitude into old age. I would need to lead a strict life here and see passions unfurl without sharing them. I would unceasingly witness the spectacle of ambition being satisfied without allowing this sentiment to approach my heart, since our entire strength lies in our principles and in the confidence we are able to inspire. In this respect, this is not what I fear. Simple habits are far from terrifying me.
Letter 41. Paris, 18 June 1845. To Félix Coudroy↩
SourceLetter 41. Paris, 18 June 1845. To Félix Coudroy (OC1, pp. 59-60) [CW1, pp. 66-67].
TextI left Dunoyer’s this morning at one o’clock. The guests were those I mentioned, plus M. de Tracy.84 Political economy was scarcely touched upon; these people dabble in it as amateurs. However, during dinner free trade was discussed a little. M. X said that the English were putting on an act. I did not think it appropriate to challenge this term, but I was very tempted to ask him if he believed in the principle of freedom or not. For in the end, if he believed in it, why did he not want the English to believe in it too? Because it is in their interest? I remembered your argument: if people formed a temperance society, should we denigrate it on the grounds that it is in people’s interest to be temperate? If I write a sophism on this subject, I will slip this refutation into it. After dinner, I was drawn into a game of whist: a wasted evening. The entire editorial staff of the journal was there: Wolowski, Villermé, Blaise, Monjean, etc., etc. . . . another disappointment, I fear. Z—— is crazy about agriculture, and about protectionism. Truly, I am getting a close view of things and feel that I might do good and pay my debt to the human race.
Let us return to the journal. No one asked me for a definite commitment; now I will wait. I am discussing it with my aunt; I need to see what she thinks. She would certainly let me follow my inclination if she saw a financial future in it and, humanly speaking, she would be right; she cannot [67] comprehend the extent of the position I could be taking. If she speaks to you about it, let me know the effect that my letter has. For my part, I will tell you about the effect my League will produce. Will anyone read it? I doubt it. We are snowed under with reading matter here. If I told you that, except for Dunoyer and Say, none of my colleagues has read Comte! You already know that —— has not read Malthus. At dinner, Tracy said that the extreme poverty in Ireland85 proved Malthus’s doctrine wrong! I have heard it said to someone that there was some good in the Treatise on Legislation86 and above all in the Treatise on Property.87 Poor Comte! Say told me his sad story; persecution and his probity killed him.
You will, of course, not breathe a word on what I have told you about the management of the journal. You will appreciate that this news would cause an unfortunate stir.
I think that I have told you that the publisher of the League is also going to publish the Sophisms. This will be a small, low-cost book, but the title is not attractive. I am looking for another; please help me. The small book by Mathieu de Dombasle was entitled “A Shaft of Common Sense,” etc.
As I cannot cover all the sophisms in one small volume, if it sells well, I will write another.88 It would be a good thing if, for your part, you dealt with a few. I would alternate them with mine and that would enable you at least to make the acquaintance of my colleagues and you could then, if you wanted, have yourself published at no cost, which is not a simple matter.
Farewell, my dear Félix; write to me.
Letter 42. Paris, 3 Jul. 1845 (11pm). To Félix Coudroy↩
SourceLetter 42. Paris, 3 Jul. 1845 (11pm). To Félix Coudroy (OC1, pp. 60-62) [CW1, pp. 67-69].
Text. . . Like you, my dear Félix, I envisage the future with terror. Leaving my aunt, separating myself from those I love, leaving you alone in Mugron, without your friend, without books, is dreadful. And for my own part, I do not know whether solitary work, meditated on at leisure and discussed with you, [68] would not be better. On the other hand, it is certain that there is a position here to be attained, the only one for which I have an ambition and the only one which suits me and for which I am suitable. It is now certain that I can have the manager’s position at the journal and I do not doubt that I will be given six francs per subscription. There are five hundred subscribers, which makes three thousand francs. This is absolutely nothing, financially speaking, but we need to believe that strong management stamped on the journal will increase its membership and if we achieved a figure of one thousand, I would be satisfied. Then there is the prospect of a course of lectures; I do not know whether I told you that at our last dinner, we decided that an approach would be made to the government to found chairs of political economy89 at the university. MM Guizot, Salvandy, and Duchâtel expressed approval of this project. M. Guizot said: “I am so well disposed to this that it was I who founded the chair that M. Chevalier occupies. Obviously, we are going down the wrong road and it is essential to disseminate healthy economic doctrines. However the major difficulty is to choose the right people.” At this reply, MM Say, Dussard, Daire, and a few others assured me that, if they were consulted, they would designate me. M. Dunoyer would certainly be in favor of me. I have found out that the minister of finance was impressed with my introduction and he himself asked me for a copy of the work. I would thus have a good chance, if not of being called to the university, at least if Blanqui, Rossi, or Chevalier were nominated, of replacing one of these men at the Collège de France or the Conservatoire.90 One way or another, I would be launched with an assured existence, and that is all I need.
But having to leave Mugron! Having to leave my aunt! What about my chest! What about the limited circle of my acquaintances! In sum, the long chapter of objections . . . Oh, why am I not ten years younger and in good health! Moreover, you will understand that this prospect is still distant but that the management of the journal would put a great deal of opportunity on my side. Therefore, instead of producing two sophisms, selected from those that are popular and anecdotal, in the next issue, I sense an opportunity to develop my ideas, and I am going to devote tomorrow to rewriting two or [69] three of the most important. This is why I cannot write to you at length as I would like and am forced to speak about myself instead of replying to your affectionate letters.
M. Say wants to entrust to me all his father’s papers; there are some curious things in them. What is more, it is an expression of confidence that touches me. Hippolyte Comte, the son of Charles, will also be letting me go through the notes of our favorite author, who is totally unknown right here. . . . But I do not want to fail in what I owe to the men who are showering me with proofs of their friendship.
You see, dear Félix, that there are so many reasons for and against; I really must decide soon. Oh! I really need your advice, and above all for you to tell me what my poor aunt thinks.
Although I scarcely answer your letters, I nevertheless must tell you that the work of Simon is very rare and extremely expensive. There are only four copies, of which two are in the public libraries. Bossuet had the entire edition destroyed.
Farewell, my dear Félix; excuse the haste with which I write.
Letter 43. London, Jul. 1845. To Félix Coudroy↩
SourceLetter 43. London, Jul. 1845. To Félix Coudroy (OC1, pp. 62-65) [CW1, pp. 69-71].
TextMy dear Félix, I arrived here yesterday evening. Knowing how much you are interested in our cause and in the role that chance has given me, I will tell you everything that happens, especially since I have no time to take notes and, this being so, my letters will be useful later in reminding me of my memories so that I can give you more details face to face.
After I settled in at the hotel (at ten shillings a day), I started to write six letters to Cobden, Bright, Fox, Thompson, Wilson, and the secretary who sends me the League. Then I wrote six dedications in six of my books and went to bed. This morning, I took my six copies to the League’s office with the request that they be given to the people concerned. Someone told me that Cobden was leaving the same day for Manchester and that probably I would find him in the throes of making his preparations (preparations for an Englishman consist in swallowing a steak and stuffing two shirts into a bag). I ran to Cobden’s; I did in fact meet him and we chatted for two hours. He understands French well and speaks it a little and anyway I understand his English. I described to him the state of opinion in France, the effect I expect this book to have, etc., etc. He told me how sorry he was to be leaving [70] London and I saw that he was on the point of canceling his trip. He then told me, “The League is like a Masonic lodge, except for the fact that everything is public. Here is a house that we have rented to receive our friends during the Bazaar. It is now empty, so you must move in.” I demurred, to which he replied, “This may not be convenient to you, but it is useful for the cause since Messrs. Bright, Moore, and other members of the League spend their evenings there and you must always be in their midst.” However, because it was subsequently decided that I would go to join him in Manchester the day after tomorrow, I did not think it necessary to move for two days. He then took me to the Reform Club, a magnificent establishment, and left me in the library while he took a bath. After this, he wrote two letters to Bright and Moore and I accompanied him to the station. In the evening, I went to see Bright, still at the same hotel, although these people do not live there; his welcome was not quite as cordial. I noticed that he did not approve of my including Cobden’s name in the title of my book. In addition, he appeared surprised that I had translated nothing by M. Villiers. His own contribution in the book is small, although he deserves greater recognition as he has the gift of an attractive eloquence. However, all this was sorted out during the conversation. As I was obliged to speak slowly to make myself understood and was discussing subjects with which I was familiar with men of exactly the same mind, I was certainly in the most favorable of circumstances. He took me to Parliament, where I have remained up to now, since they were discussing a question which included education and religion. I left at eleven o’clock and then started to write to you. Tomorrow I have an appointment with him, and the day after tomorrow I am going to see Manchester and meet my friend Cobden again. He is to arrange my accommodation and leave me in the hands of Mr. Ashworth, the rich manufacturer who put across such a good argument to demonstrate to farmers that the export of manufactured objects implied the export of the things included in them and that, consequently, restrictions on trade would hit them in the face. This brusque departure, I fear, will prevent me from seeing Fox and Thompson before my return, as well as Mill and Senior, for whom I have letters.
This is a short account of my first day. I will thus enter Manchester and Liverpool in circumstances which few Frenchmen could hope to enjoy. I will be there on a Sunday. Cobden will take me to the Quakers and the Wesleyans. We will at last know something, and as for factories, nothing will be hidden from me. What is more, all the operations of the League will [71] be unveiled to me. There was a vague suggestion of a second edition of my book on a wider scale. We will see.
Let us not forget Paris. Before leaving, I spent an hour with Hippolyte, the son of Charles Comte, who showed me all of his father’s papers. There are two or three courses of lectures given in Geneva, London, and Paris, all of which doubtless supplied material for the Treatise on Legislation, but what a gold mine to open up!
Farewell, I must leave you. I still have three letters to write to Paris and it is already tomorrow, since it is past midnight.
Letter 44. London, 8 Jul. 1845. To Richard Cobden↩
SourceLetter 44. London, 8 Jul. 1845. To Richard Cobden (OC1, 110-11) [CW1, p. 71].
TextAt last I have the pleasure of presenting you with a copy of the translation about which I have spoken to you on several occasions. In carrying out this work, I was convinced that I was rendering a genuine service to my country, both by popularizing sane economic doctrines and unmasking the guilty men who concentrate on maintaining disastrous national restrictions. I was not mistaken in my expectations. I distributed about a hundred copies in Paris and they have had the best possible reception. Men who, through their position and the subject of their study, ought to know what is happening in your country were surprised on reading it. They could not believe their eyes. The truth is that everyone in France is unaware of the importance of the campaign in your country, and people still suspect that a few manufacturers are seeking to propagate ideas of freedom abroad through pure British Machiavellianism. If I had confronted this prejudice directly, I would not have vanquished it. By leaving the free traders to act and allowing them to speak, in a word, by translating you, I hope that I have dealt it a blow from which it will not recover, provided that the book is read. That is the question.91
I hope, sir, that you will be good enough to grant me the honor of having a short discussion with you and expressing my gratitude, fellow feeling, and profound admiration to you personally.
Letter 45. Paris, 29 Jul. 1845. To M. Paulton↩
SourceLetter 45. Paris, 29 Jul. 1845. To M. Paulton. (OC7, pp. 374-77) [CW1, pp. 72-73].
TextMy dear sir, as I told you, I am sending you four copies of my translation which I ask you to forward to the editors of the Times, the Morning Chronicle, etc., etc. I would consider myself happy if the English press gave a favorable welcome to a work I consider useful. This would compensate me for the indifference with which it has been received in France. All those to whom I have given it continue to show surprise at the serious facts revealed in it, but no one is buying it, and this is not surprising since no one knows the subject with which it deals. Our newspapers, moreover, appear to have decided to bury the question under a veil of silence. It will cost me dear to have attempted to open my country’s eyes, but what is worse is not having succeeded.92
When I arrived here, I found a letter from Sir Robert Peel. As he wrote it before having read the book, he did not have to give his opinion on it. He also avoided quoting its title (Cobden and the League). If that is through diplomacy, the latter must be a deep-seated habit of your prime minister for him to use it on such an insignificant occasion. This is a copy of his note.
Sir Robert Peel presents his compliments to M. Bastiat, and is most obliged to M. Bastiat’s attention in transmitting for the acceptance of Sir Robert Peel a copy of his recent publication. Sir Robert hopes to be enabled to profit by it, when he shall have leisure from the present severe pressure of parliamentary business.93
This letter is unsigned. I would be curious to know if it is written in Sir Robert’s own handwriting.
I found other letters, including two of not inconsiderable importance. One was from M. Passy,94 a peer of France and an ex-minister of trade. He gives his unalloyed approval of the principles contained alike in the introduction and in your work.
The other letter is from M. de Langsdorf, our chargé d’affaires in the Grand Duchy of Baden. He tells me that he has read the book with enthusiasm [73] and learned for the first time what is happening in England. At the moment, there is a meeting in Karlsruhe of officers from all of the Zollverein95 who are determined to plug the tiniest loophole through which foreign trade might come to infiltrate the great national market. What he tells me about this supports Mr. Cobden’s idea of having the history of the League translated into German, together with a selection of your speeches. Could not England, which has had the Bible translated into three or four hundred languages, also have this excellent course of practical political economy translated at least into German and Spanish?96 I know the reasons which prevent you from seeking to act on the foreign scene at present. But simple translations would prepare people’s minds without your being liable to accusations of making propaganda.
If, later, the League is able to acquire a few copies of my translation without difficulty, I think this is the most useful purpose to which it might be put. This would be to take the same number of towns in order of their commercial importance and send a copy to each, addressed to the literary circle or chamber of commerce.
I will not attempt, sir, to convey to you all my gratitude for the fraternal welcome I received in your midst. I want only to have the opportunity of demonstrating it by my acts, and it would make me happy to meet members of the League in France. I have already paid two visits to Mr. Taylor without being able to meet him.
I forgot to tell you that, since the letter from M. de Langsdorf is confidential and comes from a man in the public eye, it must be clearly understood that his name cannot be quoted in any journal.97
I assure you, my dear sir, of my sincere friendship. Please remember me to all our comrades in work and hope.
Letter 46. Mugron, 2 Oct. 1845. To Richard Cobden↩
SourceLetter 46. Mugron, 2 Oct. 1845. To Richard Cobden (OC1, pp. 111-15) [CW1, pp. 74-76].
TextWhatever the charm, my dear sir, that your letters have just brought to me in my solitude, I would not allow myself to provoke them by such frequent obtrusiveness. However, an unforeseen circumstance has made it a duty for me to write to you.
I have met a young man in Paris circles who seemed to me to be full of heart and talent, whose name is Fonteyraud, the editor of La Revue britannique. He has written to me to offer to continue my work by inserting a follow-up of the operations of the League in the collection he is editing.98 With this in mind, he wants to go to England to see your fine organization for himself and has asked me for letters of introduction to you and MM Bright and Wilson.99 The object he has in view is too useful for me not to be quick to agree and I hope that, for your part, you would be willing to satisfy M. Fonteyraud’s elevated curiosity.
However, in a second letter, he tells me that he has yet another aim which, according to him, would require effective, in other words, financial support from the League. I have been swift to tell M. Fonteyraud that I could not speak to you about a project about which I knew very little. I made it clear to him, moreover, that, according to me, any action carried out on public opinion in France that appeared to be directed and financed by England would be counterproductive since it would strengthen the deep-rooted prejudices that many adroit men have vested interests in exploiting. If therefore M. Fonteyraud makes his journey, would you, together with Messrs. Bright and Wilson, assess his projects for yourselves and consider me to be totally outside the undertaking he is considering? I hasten to leave this subject to reply to your affectionate letter of 23 September.
I am sorry to hear that your health is suffering from your immense workload, both private and public. Certainly, it could not be undermined for a finer cause; each of your pains will remind you of noble actions, but that would be small consolation and I would not dare to voice it to other than you, since to understand it one would need to have your self-sacrifice and devotion to the public good. But at last your work is reaching its target, you do not lack workers around you, and I hope that you will at last seek strength in repose.
[75]Since my last letter, a movement of which I had given up hope has started in the French press. All the Paris newspapers and very many provincial newspapers have reported on the demonstration against the Corn Laws, to mark my book. It is true that they have not understood its full implications, but at last public opinion has been woken up. This was the essential point, the one I was hoping for with my whole heart and it is a question now of not allowing it to fall back into indifference, and if there is anything I can do about it, that will not happen.
Your letter arrived the day after we had an election. It was a courtier who was elected.100 I was not even a candidate. The electors are imbued with the idea that their votes are a precious gift, an important and personal service. This being so, they expect their vote to be personally solicited. They do not wish to understand that a parliamentary mandate is their own affair, that they will suffer the consequences of trust that is well or badly placed and consequently it is up to them to give it with discernment, without waiting for it to be solicited or wrested from them. For my part, I had taken the decision to stay in my corner and, as I expected, I was left there. Probably, in a year, we will have general elections in France. I doubt whether in the intervening period the electors will have come round to more appropriate ideas. However, a considerable number of them appear to have decided to support me. My efforts in favor of our wine-producing industry will give me an effective name of which I can make use. For this reason, I am pleased to see that you were willing to second the views I set out in the letter that the League has quoted.101 If you could arrange for this journal to support the principle of ad valorem rights to be applied to wine, this would give my candidature a solid and honorable base. In fact, in my circumstances, being a deputy is a heavy charge, but the hope of contributing to the formation of a nucleus of free traders within our parliament comes before all personal considerations. When I think that, in our two chambers, there is not a single man who dares to acknowledge the principle of free trade, who understands its full significance, or who is capable of supporting it against the sophisms of monopoly, I must admit that, in the depths of my heart, I want to win the empty seat I see in our legislative body, although I do not want to do anything that would increasingly distort the dominant ideas relating to elections. Let us try to be worthy of their confidence and not to gain it by surprise.
Thank you for the judicious advice you have given me by indicating the [76] procedure for disseminating economic doctrines you think would be best suited to the situation in our country. Yes, you are right, I can see that here light has to be diffused from top to bottom. Instructing the masses is an impossible task, because they have neither the civic right, the habit, nor the liking for grand rallies and public discussion. This is one more reason for me to aim to gain contact with the most enlightened and influential classes through becoming a deputy.
I am very pleased to hear that you have good news from the United States.102 I was not expecting this. America is lucky to speak the same language as the League. It will not be possible for its monopolists to withhold your arguments and work from the knowledge of the general public. I would like you to tell me, when you have the opportunity to write to me, which American journal is the most faithful representative of the economist school.103 The circumstances of this country are analogous with ours and the free-trade movement in the United States could not fail to produce a good and strong impression in France if it were widely known. To save time, would you please take out a one-year subscription for me and ask M. Fonteyraud to reimburse you? It would be easier for me to reimburse him than to send it to you.
I accept with great pleasure your offer to exchange one of your letters for two of mine. I consider that you are sacrificing here again the fallacy of reciprocity, since I will certainly be the winner and you will not receive equal value. In view of how busy you are, I would have been ready to undertake to write to you three times. If ever I become a deputy, we will renew the bases of our contract.
Letter 47. Mugron, 24 Oct. 1845. To M. Potonié↩
SourceLetter 47. Mugron, 24 Oct. 1845. To M. Potonié (JCPD), [CW1, pp. 76-79].
Text[From the private collection of Jean-Claude Paul-Dejean]
The most kind letter that you have been good enough to write to me has revived in me old projects and hopes, which cost me a great deal to abandon. Long before I knew of the existence of the English League, I had conceived [77] the idea of forming an association against protectionism, this absurd system which, apart from the direct harm it causes, causes so many ancillary calamities, national hatreds, wars, standing armies, navies, taxes, restrictions, plunderings, etc. As I needed a fulcrum to set up my lever, I thought of our wine-producing population, which seemed to me to be the most likely to embrace the cause of free trade. I tried to form it into an organization, as you will see from the brochure which it is my pleasure to enclose with this letter. My mistake was to address this call to a single class only, and the class that is probably the least political, the most dispersed, and the most difficult to organize. I ought to have called together all the consumers and in addition all the producers who felt they were sufficiently strong and honest to reject all forms of protection and taxes, for however you look at them, protectionist duties are none other than the taxes we raise from one another.
This frustrated idea was just dormant in my mind, and you can doubtless guess with what joy and enthusiasm I welcomed the arrival of the English League, which pursues the same aim with an energy, a spirit of togetherness, a line of conduct and the talents, resources, and opportunities that I lacked.
I have now been happy to learn from your letter of the existence in Paris of elements which, when they are properly put into operation, may serve as the basis for a similar association to the League. The men who have devoted themselves to the setting up of what is known as “The Articles of Paris”105 are certainly the most appropriate people to lay the foundations for this institution. At the heart of enlightened opinion, close to one another, and in a position to exert an influence on the press, on our political representatives, and on public opinion; more disposed than most to make well-judged sacrifices and more able to supervise the use made of them, they certainly have to offer quite different resources from the wine-producing population. Besides, these people would have only to glimpse this center of action to join it in full sympathy. I believe that we will soon also obtain the support of men in the government, as they receive fixed salaries that bear the weight of the protectionist regime without any possible compensation. I would say the same thing about bankers, traders, merchants, lawyers, doctors, and all the countless sectors of artisans whose work by its very nature is not likely to be protected by customs duties.
[78]I see from your letter that “The Articles of Paris” has already formed a general association divided into sections, one of the most important of which is under your chairmanship. If you consider, sir, that it is possible to find the seed of an energetic league in this institution, and if you think that my efforts and devotion can help in this great work, please write to me and you will find me ready to join you and your colleagues. I have already sounded out a few key figures, for in France they are necessary if one is to succeed in anything, and I know some who would be only too ready to welcome the honor of the initiative. For my part, I will join the combat at whatever level I am placed, for apart from the fact that I put our noble cause a thousand times higher than our little individual ideas, I have learned from Mr. Cobden, the one man in the world in whom I have the fullest confidence, that individual self-sacrifice is the soul and cement of any voluntary association. Let us, therefore, make ourselves small and give free rein to the conceit of others, and use this quotation from Danton as a commentary: “Let our memory perish and may freedom triumph.”
As for a demonstration to the League, I do not see where this would lead. What would be genuinely and immediately useful would be for “The Articles of Paris” to have a representative in London while Parliament is sitting. In the midst of this collapse of duties which is taking place in England, a man who had the confidence of the members of the League who have great influence in these matters might perhaps obtain considerable advantages for “The Articles of Paris,” especially since England is no longer asking for reciprocity or what are called concessions. We do have an ambassador, but it is not possible to deal with things like this officially, and this you will readily understand. . . . As Great Britain is accomplishing this reform without asking anything from foreigners, she cannot accept foreigners’ attempts to influence her resolutions.
When I was in London and enjoying quite close relations with officers in the Board of Trade and members of the League, I sought to convince them that they would be acting shrewdly by encouraging the introduction of our wine into their country. The spirit of my lectures on this subject is set out in the brochures I am enclosing, and I had the pleasure of receiving letters from Cobden and other members of Parliament telling me that they were working hard to make my ideas succeed; what I said to them with regard to wine might equally apply to Parisian goods. England feels that if she opened her market to Parisian goods without France lowering her duties, Parisians would have trouble effecting purchases from England in return, and this [79] would soon open their eyes to the inconsistency of our policy and foment in us the spirit of free trade. I do not doubt that she is aiming her reforms in this direction. For my part, sir (and I hope that you will not find this confidence out of place), I must say that I deeply regret that my financial situation does not allow me to spend time in London at this time. Something tells me that I could do some good there.
Allow me, sir, in ending this overlong letter, to thank you for your kind words both in your own name and that of your sons and colleagues.
Letter 48. Mugron, 13 Dec. 1845. To Richard Cobden↩
SourceLetter 48. Mugron, 13 Dec. 1845. To Richard Cobden (OC1, pp. 115-18) [CW1, pp. 79-81].
TextMy dear sir, I am greatly in your debt, since you were willing, in the midst of your noble and arduous work, to relax the agreement which I had gratefully accepted of “one letter for two,” but I unfortunately have only too many excuses to invoke and while all your time is so usefully devoted to the public good, mine has been absorbed by the greatest and most personal grief that I might suffer on this earth.106
I was delaying writing to you to have news of M. Fonteyraud. I needed to know in what terms I should thank you for your welcoming him on my recommendation. I had total peace of mind in this, as I had heard indirectly that he was delighted with his trip and enthusiastic about the members of the League. I am pleased to learn that the members of the League were no less pleased with him. Although I did not know him very well, I considered that he had it in him to be his own recommendation. Doubtless, he has not had the opportunity to write to me yet.
On this subject, you have returned to my visit to you and the excuses you express to me leave me quite embarrassed. Except for the first two days when, for unforeseen reasons, I found myself alone in Manchester and when my morale was undoubtedly afflicted by the sad influence of your strange weather (an influence whose expression I allowed to emerge in the unfortunate note to which you refer), with the exception of these two days, as I have said, I was overwhelmed by the care and kindnesses expressed by you and your friends, Messrs. John and Thomas Bright, Paulton, Wilson, [80] Smith,107 Ashworth, Evans, and many more, and I would be truly ungrateful if, because there was an election in Cambridge during these two days, I remembered only this moment of spleen108 and forgot those which you imbued with goodwill and charm. You can be sure, my dear sir, that our dinner in Chorley and your eminently instructive meeting with Mr. Dyer at Mr. Thomas Bright’s have left indelible memories in my mind and heart. You want me to make another visit. That is not entirely impossible and this is how it might be arranged. It is probable that the big question will be settled this summer, and, like a valiant fighter, you will need to take a little rest and bind your wounds. Since words have been your principal arms, their means of expression in you will have suffered the most, and you have made reference to your state of health in your last letter. It so happens that in the Pyrenees over here there are marvelous springs to cure exhausted chests and larynxes. So come and spend a season as part of the family in the Pyrenees. I promise you either to come to collect you or to accompany you back, at your choice. This trip will not be detrimental to the cause. You will see our wine-producing population and will gain an idea of the spirit that animates it or rather that does not animate it. When we pass through Paris, I will introduce you to all our comrades in political economy and rational philanthropy. I like to think that this trip would leave its beneficial traces in your health and memories, and also in shifting French attitudes about freeing up trade. Bordeaux is also a town which it would interest you to see. People’s minds there are quick and enthusiastic; just a spark will set them ablaze, and this might well come from your words.
Thank you, my dear sir, for the offer you made me regarding my translation. Permit me, however, not to accept it. It is a personal sacrifice which you wish to add to so many others and I must not agree to it.
I feel that the title of my book does not allow you to claim any influence on the part of the League. This being so, let us allow my poor volume to live or die by itself. However, I cannot be sorry that, in France, I attached your name to the history of this great movement. In doing this, I may have upset your worthy colleagues a little and this involuntary injustice gives me some cause for remorse. But truly, to arouse and catch attention here, it is necessary for a doctrine to be incarnated in an individual personality and for a great movement to be represented and summarized in an individual [81] name. Without the great figure of O’Connell, the Irish unrest would have taken place unnoticed in our newspapers. And look what has happened. The French press now uses your name to designate the orthodox principle in political economy. It is an ellipsis, a shorthand method of speaking. It is true that this principle is still the subject of much dispute, and even sarcasm. But it will grow and commensurately your name will grow with it. The human mind is made like this. It needs flags, banners, incarnations, and individual names, and in France more than elsewhere. Who knows whether your destiny will not arouse in our country the emulation of some man of genius?
I have no need to tell you with what interest and anxiety I follow the development of your campaign. I regret that Sir Robert Peel has let himself be overtaken. His personal superiority and position make him able to provide services to the cause that are more immediately achievable, perhaps, than those it can expect from Russell, and I fear that the arrival of a Whig government will result in the reassembly of a formidable aristocratic opposition which will prepare new conflicts for you.
You are good enough to ask me what I do in my solitude. Alas, dear sir, I am embarrassed to have to reply with this shameful word, Nothing. The pen tires me and speech even more so, to the extent that if a few useful thoughts ferment in my head I have no longer any means of revealing them externally. I sometimes think of our unfortunate André Chénier. When he was on the scaffold, he turned to the people and said, striking himself on the forehead, “It is a pity, I had something there.” And I too think that “I have something there.” But who is whispering this thought to me? Is it the consciousness of a genuine truth? Is it fatuous pride? For which idiotic hack today does not think he also “has something there”?
Farewell, my dear sir; permit me to shake your hand most affectionately across the distance that separates us.
P.S. I have frequent contact with Madrid and it would be easy for me to send a copy of my translation there.
Letter 49. Mugron, 20 Dec. 1845. To Alcide Fonteyraud↩
SourceLetter 49. Mugron, 20 Dec. 1845. To Alcide Fonteyraud (OC1, pp. 194-97) [CW1, pp. 81-84].
TextMy dear M. Fonteyraud, I will not reply today to your letter, a letter that is so charming, so honest and interesting in terms of the subjects it discusses with me and the way it deals with them. This is just a simple acknowledgment, [82] which I am entrusting to a person who is leaving in a few hours for Paris.
I received news of you through the journal of the League, from M. Guillaumin and Mr. Cobden, who speaks of you in terms that I will not repeat to you for fear of wounding your modesty. . . . However, I am changing my mind. Mr. Cobden will one day be sufficiently famous for you to be very happy to know the opinion he has uttered of you. Moreover, this judgment includes a piece of advice, and I have no right to stop it on its way, especially since you persist in giving me the title of Master. I will fulfill the functions of this role once, if not by giving you advice, at least by passing on to you that emanating from an authority regarded as very impressive by the disciples of free trade.
These then are the words of Mr. Cobden:
“Let me thank you for introducing to us M. Fonteyraud, who excited our admiration not only by his superior talents, but by the warmth of his zeal in the cause of free trade. I have rarely met a young man of his age possessing so much knowledge and so mature a judgment both as respects men and things. If he be preserved from the temptations which beset the path of young men of literary pursuits in Paris” (whether Mr. Cobden is alluding to the schools of sentimentality or the traps of the partisan spirit, I do not know), “he possesses the ability to render himself very useful in the cause of humanity.”109
As the rest concerns only your amour propre, permit me to omit it.
It is sweet and consoling to go through life supported by such a testimonial. There is really something deep in our heart which tells us of our own merit, but when we see the blindness of all men to this, how can we ever have the certainty that the awareness of our strengths is its true measure? In your case, you have been judged and consecrated; you have been dedicated to the cause of humanity. Learn and disseminate should be your motto; such is your destiny.
Oh! How my heart beat when I read your description of the great meeting in Manchester! Like you, I felt enthusiasm penetrate my every pore. Has anything like this, whatever Solomon said, been seen under the sun? We have seen major gatherings of men grow passionate for a conquest, a victory, an interest, or the triumph of brute force, but has anyone ever seen ten thousand [83] men unite to ensure the triumph of a major principle of universal justice by peaceful means, through speech and sacrifice? Even if free trade were an error or an illusion, the League would be no less glorious, for it has given the world the most powerful and moral of all instruments of civilization. How can we not see that this concerns not merely the liberation of trade but in turn all the reforms and acts of justice and reparation that humanity might carry out by means of these massive and vibrant organizations!
For this reason, with what happiness, I might almost say, with what outbursts of joy did I welcome the news you gave me at the end of your letter! France also will have her League! France will grow out of her eternal adolescence, blush at the shameful puerility in which she is vegetating, and become an adult! Oh! Let this day come and I will salute it as the finest in my life. Will we never cease to attribute glory to the development of physical force, to wish to settle all matters by the sword and glorify only that courage shown on the battlefield, whatever its motives and works? Will we finally understand that, since public opinion is the monarch of the world, it is public opinion that we have to work on and to which we have to communicate the enlightenment which shows it the right direction together with the energy to take it?
But after enthusiasm comes reflection. I tremble lest some disastrous germ infiltrate the beginnings of our League, for example a spirit of compromise, gradualness, procrastination, or caution. Everything will be lost if the League does not espouse or stick closely to an absolute principle. How could members of the League themselves agree if the League tolerated variable principles in varying degrees? And if they did not agree among themselves, what influence could they have outside?
Even if we should be only twenty, ten, or five, let that twenty, ten, or five have the same goal, the same determination, and the same faith. You have witnessed the campaign in England, I have myself studied it closely, and I know (and this I ask you to convey clearly to our friends) that if the League had made the slightest concession at any time in its existence, the aristocracy would have made short work of it a long time ago.
Therefore, let an association be formed in France. Let it undertake to free trade and industry from any monopoly. Let it devote itself to ensuring the triumph of the principle and you may count on my support. By word, pen, and purse, I will be its man. If it means legal proceedings, suffering persecution, or braving ridicule, I will be its man. Whatever role I am given, whatever rank I am allocated, on the hustings or in cabinet, I will be its man. In [84] enterprises of this kind, in France more than elsewhere, what is to be feared are rivalries based on amour propre; amour propre is the first sacrifice that we have to make on the altar of public good. I am mistaken; perhaps indifference and apathy are greater dangers. Since this project has been set up do not let it fail. Oh! Why am I not with you?
I was going to end my letter without thanking you in advance for what you will be saying about my publication in La Revue britannique. A simple translation cannot be worth such fulsome praise. Be that as it may, praise and criticism are welcome when they are sincere.
Letter 50. Mugron, 13 Jan. 1846. To Richard Cobden↩
SourceLetter 50. Mugron, 13 Jan. 1846. To Richard Cobden (OC1, pp. 118-21) [CW1, pp. 84-86].
TextMy dear sir, what gratitude do I not owe you for having been good enough to think of me in the midst of such pressing occupations, ones so conducive to absorbing your interest so compellingly? You wrote to me on the 23rd, the very day of that astonishing meeting in Manchester, which certainly has no precedent in history. May the people of Lancashire be honored! It is not only free trade that the world will owe them, but also the enlightened, moral, and devoted art of campaigning. Humanity will at last recognize the instrument of all reform. At the same time I received your letter, the issue of the Manchester Guardian with an article on this session arrived. As I had seen the report of your first meeting in Manchester a few days previously in Le Courrier français, I thought that public opinion had now been awakened in France, and I did not think it necessary to translate the report of your proceedings. I am now annoyed that I did not do so, since I see that this major event has not produced an impression commensurate with its importance here.
How I congratulate you a thousandfold, my dear sir, for having refused an official position in the Whig cabinet.110 This is not to say that you would not be very capable and worthy of power. It is not even that you could not render considerable service. But in the century in which we are, we are so imbued with the idea that whoever appears to devote himself to the public good is in fact working for his own benefit. There is so little understanding of devotion to a principle that no one can believe in disinterestedness, and you will certainly do more good through this example of selflessness and the moral effect it will have on people’s minds than you would have been able to [85] do on the ministerial bench. I would have liked to embrace you, my dear sir, when you taught me, through this conduct, that your heart is equal to your intelligence. Your noble actions will not go unrewarded; you are in a country in which public probity is not discouraged through ridicule.
Since we are talking about devotion, this will lead me on to the other part of your good letter. You advise me to go to Paris. I, myself, feel that at this decisive moment I should be at my post. My own interest as well as that of the cause requires this. For the last two months, our newspapers have been serving up a pile of nonsense on the League, which they would not be able to do if I were in Paris, as I would not let one of these escape without battling with it. On the other hand, since I am better informed than many others on the influence of your movement, I would acquire a certain authority in the eyes of the public. I can see all this, but I languish in a village in the département of the Landes. Why? I think I have mentioned this in one of my letters. I have an honorable and uneventful, although modest situation here.111 In Paris, I could earn my living only by my pen, something I do not criticize in others but to which I have an inexpressible aversion. I therefore have to live and die in my corner, like Prometheus on his rock.
Perhaps you will have some idea of the mental suffering I am experiencing when I tell you that we tried to organize a League in Paris. This attempt has failed and was bound to fail. The proposal was put forward during a dinner with twenty people at which two ex-ministers were present. You can imagine how much success that was likely to have! Among the guests, one wanted ½ freedom, another ¼ freedom, yet another ⅛ freedom, and perhaps three of four were ready to request freedom in principle. Just try to make a united and fervent association out of that! If I had been in Paris, a mistake like that would never have been made. I have made too close a study of what constitutes the strength and success of your organization. A vital League cannot spring up from a group of men gathered together randomly. As I wrote to M. Fonteyraud, let us be ten, five, or even two if necessary, but let us raise the flag of absolute freedom and absolute principle, and let us wait for those with the same faith to join us. If chance had caused me to be born with a more consistent fortune, with an income of ten to twelve thousand francs, there would have been a League in France right now, doubtless more than somewhat weak but bearing within it the two mightiest principles of truth and dedication.
On your recommendation, I have offered my services to M. Buloz. If he [86] had made me responsible for an article to be included in La Revue des deux mondes, I would have continued the absorbing story of the League up to the end of the ministerial crisis. But he did not even send me a reply. I very much fear that these newspaper editors see the most important events only as an opportunity to satisfy the curiosity of their subscribers, ready to shout, depending on the event, “Long live the king, long live the League!”
The Chamber of Commerce of Bordeaux has just raised the banner of free trade. Unfortunately, it has taken a text, Customs Union between France and Belgium, that is in my view too restricted. I will send them a letter in which I will endeavor to show them that they would have much more power if they espoused the cause of the principle and not that of a special application to this or that treaty. It is the fallacy of reciprocity which paralyzes the efforts of this chamber. Treaties smile on it because it sees the possible stipulation of reciprocal benefits, reciprocal concessions, and even reciprocal sacrifices. Under this liberal veneer, the disastrous thought still lies hidden that imports are an evil in themselves and should be tolerated only when foreigners have been persuaded to tolerate our exports in their turn. As a model to be followed, I would enclose with my letter a copy of the famous deliberation of the Chamber of Commerce of Manchester on 13th and 20th December 1838.112 Why does the Chamber of Commerce of Bordeaux not take the generous initiative in France that the Chamber of Commerce of Manchester took in England?
As I know how extensive your commitments are, I scarcely dare to ask you to write to me. Nevertheless, please remember from time to time that your letters are the most effective balm for soothing the boredom of my solitude and the torments arising from my feeling of uselessness.
Letter 51. Mugron, 9 Feb. 1846. To Richard Cobden↩
SourceLetter 51. Mugron, 9 Feb. 1846. To Richard Cobden (OC1, pp. 122-24) [CW1, pp. 86-88].
TextMy dear sir, when you receive this letter you will be in the line of fire113 of the discussion. I hope, however, that you will find a moment for our country, France, for in spite of the interesting things you tell me about the state of [87] affairs in your country, I will not discuss them. I would have nothing to say about them and would waste precious time in expressing feelings of admiration and happiness of which you have no doubt. Let us therefore discuss France. But before we do, I want to put an end to the English question. I have seen nothing in your Peel’s measure that relates to wine. This is certainly a major fault in terms of political economy and public policy. A final vestige of the policy of reciprocal treaties is to be found in this omission, as well as that in the case of timber. This is a stain on Sir Robert Peel’s project, and it will detract hugely from the moral effect of the whole, precisely on the classes, in France and in the north, who were the most disposed to accept this elevated teaching. This omission and the sentence “We shall beat all other nations” are fuel for the game of prejudice; they will feast on them for a long time. They will see in them the secret and Machiavellian ideas of perfidious Albion. Please, put forward an amendment. However great the absolutism of Sir Robert Peel, he could not resist your arguments.
I have now returned to France (from which I have scarcely departed). The more I reflect, the more I have reason to congratulate myself on one thing that at first caused me some anxiety. It is having included your name in the title of my book. Your name has now become popular in my country, and with your name, so has your cause. I am snowed under with letters. I am asked for details, newspapers open their columns to me, and the Institut de France has elected me a corresponding member with MM Guizot and Duchâtel voting for me. I am not blind enough to attribute this success to myself; I owe it to the relevance of the case and to the fact that the right time has come, and I appreciate it, not for my own sake but as a means of being useful. You will be surprised that all of this has not persuaded me to take up residence in Paris. This is the reason. Bordeaux is preparing a major demonstration, too large in my opinion, as it will include a great many people who think they are free traders and who are no more free traders than Mr. Knatchbull. I consider that my role at this time is to put to good use my knowledge of the methods of the League, and to ensure that our association is based on solid foundations. Perhaps you will be sent the issue of Le Mémorial bordelais in which I have included a series of articles on this subject.114 I insist and will continue to insist to the end that our League, like yours, be devoted to an absolute principle and if I do not succeed in doing this I will abandon it.
[88]This is what I am afraid of. In demanding a wise freedom and moderate protection, we are sure to gain a great deal of sympathy in Bordeaux and that will please the founders. But where will all this lead? To the Tower of Babel. It is the actual principle of protection that I wish to breach. Until this business is settled, I will not go to Paris. I have been told that a meeting of forty to fifty traders will be taking place in Bordeaux. It is there that the bases for a league will be established, on which I have been invited to give my opinion. Do you remember that we have searched in vain for your rule in the Anti-Bread Tax Circular? How I regret now that we were not able to find it! If Mr. Paulton could spend an hour looking for it, the time would not be wasted, for I fear that our League might adopt shaky founding principles. After this session, there will be a grand meeting at the Exchange to raise a League fund. The mayor of Bordeaux has taken up his position at the head of the movement.
I have heard about the address you received from the Société d’économie politique115 but I have not read it. I hope it is worthy of you and our cause!
I beg your pardon for talking at such length about France, but you will understand that the weak cries it utters are almost as interesting to me as the virile accents of Sir Robert.
Once the business in Bordeaux is settled, I will go to Paris. The hope that you will visit has made my decision for me.
I will draw up a plan for the distribution of fifty copies of my translation.
Letter 52. Bordeaux, Feb. 1846. To Richard Cobden↩
SourceLetter 52. Bordeaux, Feb. 1846. To Richard Cobden (OC1, pp. 124-26) [CW1, pp. 88-90].
TextMy dear sir, you will doubtless be interested to learn that a demonstration is taking place in Bordeaux in favor of free trade. The association has now been constituted. The mayor of Bordeaux has been appointed its president. Before long, the subscription list will be opened and we hope that this will produce about a hundred thousand francs. This is a fine result. I dare not hold out a great deal of hope and fear that our somewhat timid beginnings may raise obstacles for us later. We did not dare set out the principle boldly. We limit ourselves to saying that the association demands the abolition of [89] protectionist dues as quickly as possible. In this way, the question of gradual progress has been retained and your total and immediate could not be passed. In view of people’s lack of intellectual development in this respect, it would have been useless to insist, and it is to be hoped that the association, whose aim is to enlighten others, will have the effect of enlightening itself.
When this matter has been settled, I am determined to go to Paris. I have received several letters, which give me to understand that the huge sector of industry entitled “Articles of Paris”116 is ready to start a movement. I thought that my duty lay in setting aside any personal reasons I had for staying in my corner. I assure you that I am making a sacrifice to the cause whose merit lies in its lack of visibility.
In the last month, my book117 has had an extraordinary success in Bordeaux. The prophetic tone with which I announced the reform has given me a reputation that I scarcely merit, since all I have had to do is be the echo of the League. I am taking advantage of it nevertheless, for advertising purposes. When I am in Paris, I will take advice to see whether it would not be appropriate to produce a second edition in a low-cost format. I am sure that the association in Bordeaux will come to my aid if need be. You would spare me a great deal of work if you would suggest two speeches by MM Bright, Villiers, and others after consulting them. This would avoid my having to reread the three volumes of the League. I need these men to indicate the speeches in which they dealt with the question from the highest and most general point of view, and where they refuted the most universally held fallacies, especially reciprocity. I will add comments, statistical information, and portraits. Lastly, I also need you to indicate a few parliamentary sessions, especially the stormiest ones, in which free traders were attacked the most relentlessly. A work like this, sold for three francs,118 will do more than ten treatises on economics. You cannot imagine the good that the first edition did in Bordeaux.
I cannot help deploring the fact that your prime minister let slip the opportunity of arousing astonishment in Europe. If, instead of saying, “I need new subsidies to increase our army and navy forces,” he had said, “Since we are adopting the principle of free trade, there can no longer be any question [90] of outlets and colonies. We will give up Oregon119 and even perhaps Canada. Our disputes with the United States will disappear and I am proposing that we reduce our army and navy.” If he had said this, the effect would have been as great a difference between this speech and the treatises on economics, which we are still reduced to producing, as between the sun and treatises on light. Europe would have been converted within a year and England would have won on three fronts. I will not list them as I am overcome by tiredness.
Letter 53. Bordeaux, 19 Feb. 1846. To Félix Coudroy↩
SourceLetter 53. Bordeaux, 19 Feb. 1846. To Félix Coudroy (OC1, pp. 65-66) [CW1, pp. 90-91].
TextMy dear Félix, I had promised to write to you about the events in Bordeaux. I have been so interrupted by visits, meetings, and other annoying incidents that the time for postal collections always arrives before I have been able to honor my promise; what is more, there is not much to tell you. Things are happening very slowly. We floundered about a great deal while settling the first stages of a constitution. Finally a makeshift version emerged from the discussion, and today it is being offered for the approval of seventy to eighty founding members. The final board will be installed with the mayor120 at its head as president, and in two or three days a grand meeting will take place to open the subscription list. It is thought that Bordeaux will raise one hundred thousand francs.121 I am longing to see it. You understand that it is only from today, when the board has been installed, that attention can be paid to a plan, since it is the board that should take this initiative. What will the plan be like? I do not know.
As for my personal contribution, it is limited to being present at the sessions, writing a few articles for newspapers,122 paying and receiving visits, and dealing with economic objections of all kinds. It has been made very clear to me that the level of education in this matter is not sufficient to keep the institution going and I would be leaving with no hope if I did not count on the institution itself to enlighten its own members.
[91]Here I found my poor Cobden all the fashion. A month ago, there were only two copies, the one I gave Eugène123 and the copy at the bookseller’s; today, it is to be found everywhere. I would be embarrassed, my dear Félix, to tell you what an opinion has been formed of the author. Some suppose that I am a first-rate scholar, and others that I have spent my life in England studying its institutions and history. In short, I am very embarrassed at my position, since I know full well the difference between what is true and what is exaggerated in this current view. I do not know whether you will see today’s Mémorial124 (the 18th); you will understand that I would not have used this tone if I had not had a clear view of what I could achieve.
It has almost been decided that, when this organization is fully on its feet, I will go to Paris to try to rally Parisian industry, which I know is well disposed toward us. If this is successful, I foresee one difficulty, and that is to persuade the people in Bordeaux to send their money to Paris. It is certain, however, that Paris is the center from which everything must radiate, since, on the basis of the same expenditure, the Paris press has ten times more influence than the provincial press.
When you write to me (as soon as possible, please) tell me about your personal situation.
Letter 54. Bayonne, 4 March 1846. To Victor Calmètes↩
SourceLetter 54. Bayonne, 4 March 1846. To Victor Calmètes (OC1, pp. 13-14) [CW1, pp. 91-92].
TextMy good, long-standing friend, your letter warmed my heart, and reading it, it seemed to me that there were twenty-five years fewer hanging around my neck. I was drawn back to those happy days when our being arm in arm reflected our cordial relationship. Twenty-five years! Alas! The weight of them has quickly made itself felt again.
. . . . . . .
I think that in itself, my appointment as a corresponding member of the Institute125 is of little importance, and I greatly fear that many mediocre people have been able to adorn themselves with this title. However, the particular circumstances leading to my nomination do not allow me to refuse your friendly congratulations. I had published only one book, and in this [92] book only the preface was my work. Once I had returned to my solitude, this preface worked in my favor, unknown to me, since the same letter, which informed me of my appointment, announced my candidature. Never in my life had I thought of this honor.
This book is entitled Cobden and the League. I am sending it to you with this letter, which spares me from having to tell you about it. In 1842 and 1843, I endeavored to attract attention to the subject it covers. I sent articles to La Presse, Le Mémorial bordelais, and other newspapers. They were refused. I saw that my cause had been utterly destroyed by a conspiracy of silence and I had no other solution but to produce a book. This is how I came to be an author without knowing it. Now I have embarked on a career and I sincerely regret it; although I have always liked political economy, it is at a cost to myself to give it all my attention, which I like to allow to roam freely over all the subjects of human knowledge. What is more, in this economic science, just one question sweeps me along and will be absorbing me: the freedom of international relations; for perhaps you have seen that I have been assigned a role in the association that has just been formed in Bordeaux. Such is our century; you cannot become involved without being strangled in the bonds of specialization.
. . . I forgot to tell you about the elections. The electors in my region are thinking about me but we are snubbing one another. I claim that their choice is their affair and not mine, and that consequently I have nothing to ask them for. They absolutely insist that I should go and canvas their votes, doubtless in order to gain some right over my time and services, with personal aims. You can see that we do not agree and therefore I will not be nominated.
your devoted friend.
Letter 55. Paris, 16 March 1846. To Richard Cobden↩
SourceLetter 55. Paris, 16 March 1846. To Richard Cobden (OC1, pp. 126-27) [CW1, pp. 92-93].
TextMy dear sir, I have waited a few days to reply to your fine and instructive letter. It is not because I did not have a great deal to tell you, but I had no time; even today, I am writing only to let you know that I am arriving in Paris. If I had had any hesitation in coming, the hope you give me of seeing you there soon would have been enough to persuade me.
Bordeaux is really in a state of uproar. It has been fashionable to be associated [93] with this work and I have found it impossible to follow my plan, which was to limit the association to the converted. I was overwhelmed by the furia francese. I can see that this will be a significant obstacle in the future, since already, when we wanted to petition the chambers to establish our claims, deep divisions came to the fore. In spite of this, we read and study, and that is a great deal. I am counting on the uproar itself to enlighten those who are creating it. Their aim is to educate others, and they will end by educating themselves.
As I arrived yesterday evening, I cannot give you any news in this letter. I would prefer a thousandfold to form a core of deeply persuaded men than generate a noisy demonstration like that in Bordeaux. I know that people are already talking about moderation, gradual reforms, and experiments. If I can, I will advise those people to form an association among themselves on these lines and leave us to form another in the domain of the abstract and absolute principle of no protection,126 as I am deeply convinced that ours will absorb theirs.
Letter 56. Paris, 22 March 1846. To Félix Coudroy↩
SourceLetter 56. Paris, 22 March 1846. To Félix Coudroy [CW1, pp. 93-95].
TextMy dear Félix, I hope that you will not delay giving me your news. God willing, an arrangement has been found: I scarcely hope for it and want it desperately. Once you are free from this painful preoccupation, you will be free to devote your time to useful things, for example, your article in Le Mémorial,127 which I have had the time to read only quickly, but which I will reread tomorrow at my uncle’s. It is extremely lively and provides excellent and vivid arguments. On Monday, I will read it to the assembly, which will be quite numerous. When I am slightly better settled, I will tell you the name of the newspaper in Paris to which you should send it; at that stage, however, you should, as far as possible, refrain from mentioning wine. I have just mentioned that we were having an assembly on Monday. Its aim is to set up the board of the association. We have the duc d’Harcourt as president, and he accepted with a resolution which I liked. The other members will be MM Say, Blanqui, and Dunoyer. However, Dunoyer does not much like being in the spotlight, and I will be proposing in his place [94] M. Anisson-Duperron, a peer of France, whom I found compelling in that he is firm on the basic idea. As treasurer, we will have the baron d’Eichthal, a rich banker. Finally, a secretary, who obviously will be called upon to bear the brunt of the work, will join the management. No doubt you can foresee that these functions will fall on my shoulders. As always, I am hesitating. It will be hard work binding myself to such an arduous and assiduous task. On the other hand, I think I can be useful by devoting myself entirely to this business. Between now and Monday I must make an irrevocable decision. Besides, I hope that we will not lack subscribers. Peers, deputies, bankers, and men of letters will flock to us in sufficient numbers, and even a few major manufacturers. It seems clear that there has been a significant change in public opinion and success is perhaps not as far off as we first supposed.
Here, people very much want me to be nominated as a deputy; you cannot imagine how much credit I received for the quasi-prophecy contained in my introduction.128 It confuses and embarrasses me, as I am certain that I do not match up to my reputation, but I have very little hope with regard to becoming a deputy, since the events in Bordeaux and Paris have very little echo in Saint-Sever. And, incidentally, this would perhaps be a further reason for keeping me at a distance. Dear old Chalosse129 does not appear to understand the importance of the enterprise to which I have devoted my efforts; if this were not the case, it is probable that it would want to join in by increasing my influence in its own interest. I do not bear it any grudge; I love it and will serve it to the end, however indifferent it is.
Today, I made my entry into the Institut,130 where they discussed the question of education. University professors, led by Cousin, monopolized the discussion. I am very sorry I have left my work on the subject in Mugron, as I can see that no one considers it from our point of view.
Try from time to time to write articles to maintain the sacred flame in Bordeaux. Later we can doubtless make them into a collection to be distributed in large numbers. In my next letter to my aunt, I will add a note to tell you what they thought of your last article in the Assembly.
I am expecting our friend, Daguerre, in order to be introduced to M. de Lamenais, whom I hope to convert to free trade. M. de Lamartine has announced [95] his membership, as has our good Béranger. We will be bringing in M. Berryer as well, as soon as the association is sufficiently strongly established not to be diverted by political passions. The same is true for Arago; you see that the leading minds of our time will be on our side. I have been assured that M. de Broglie will agree to be president. I must admit that I go in some fear of the diplomatic approach, which is bound to be his habit. His presence will doubtless have a prodigious effect from the start, but we must look to the future and not be dazzled by transitory brilliance.
Letter 57. Paris, 25 March 1846. To Richard Cobden↩
SourceLetter 57. Paris, 25 March 1846. To Richard Cobden (OC1, pp. 127-30) [CW1, pp. 95-97].
TextMy dear sir, as soon as I received your letter, I handed over your reply to the address from our Société d’économie politique to M. Dunoyer. I have just translated it, and it appeared to contain nothing that might have unfortunate consequences if it were published. The only thing is that we do not have any clear idea on where we should publish this precious document. Le Journal des économistes will not be published until about 20 April. This is rather late. A significant number of newspapers are committed to the monopoly, many others to anglophobia, and many others again are worthless. An approach will be made to Le Journal des débats. I will tell you the result in a postscript. Certainly, there is nothing but pure, noble, true, and cosmopolitan sentiments in your letter, as in your heart. But our nation is so susceptible to, and also so imbued with, the idea that free trade is good for you but not for us, and that you adopted it in part through Machiavellianism and to inveigle us down this path; these ideas, as I say, are so prevalent and popular that I do not know whether the publication of your address will not be inopportune at the time we are forming an association. People will not fail to say that we are the dupes of perfidious Albion. Men who know that if two and two are four in England they do not make three in France laugh at these prejudices. However, I think it prudent to dissipate rather than confront them. This is why I will be submitting the question of publication to a few enlightened men whom I am meeting this evening and I will let you know tomorrow the result of this consultation.
I stressed the words in part for this reason: our principal point of support for the campaign is the commercial class, the traders. They earn their living by trade and they want as much of it as possible. They are also used to [96] conducting business. Under this twin heading, they are our best auxiliaries. However, they support monopoly in one respect, the maritime aspect, protection for the national fleet, in a word, what is known as the surtax.131
However, it so happens that our shipowners are all taken with the idea that, in his financial plan, Sir Robert Peel has not amended your Navigation Act and that he has left the full force of protection on this; I leave you to imagine the consequences they are drawing from this. I seem to remember that Huskisson amended your Navigation Act. I have your tariff, and I do not see anywhere that goods carried by foreign ships are subject to differential taxes. I would like to be sure of this question, and if you do not have time to enlighten me, could you not ask Mr. Paulton or Mr. James Wilson to write a fairly detailed letter to me on this subject?
I will now tell you a little about our association. I am beginning to be a little discouraged by the difficulties, even physical ones, of doing anything in Paris. Distances are huge, you waste a lot of time in the streets, and in the ten days I have been here I have put only two hours to good use. I would decide to abandon the enterprise if I did not see some elements of usefulness. Peers, deputies, bankers, men of letters, all of whose names are well known throughout France, have agreed to join our society, but they do not want to take the first step. Even supposing we succeeded in bringing them together, I do not think we would be able to count on a very active contribution from people who are so busy, so carried away by the whirlwind of business and pleasure. But the sole mention of their names would have a considerable effect in France and would make it easier for similar and more practical associations to be founded in Marseilles, Lyons, Le Havre,132 and Nantes. This is why I am resolved to waste two months here. What is more, the Paris society would have the advantage of giving a little courage to free-trade deputies, who, rejected by public opinion up to now, have not dared to admit their principles.
I have incidentally not lost sight of what you told me one day, that the movement, which was constructed from the bottom up in England, should be constructed from the top down in France, and for this reason I am delighted to see such major figures join us as Harcourt, Anisson-Dupéron, Pavée de Vandœuvre, and perhaps de Broglie among the peers; Eichthal, [97] Vernes, Ganneron, and perhaps Rothschild among the bankers; and Lamartine, Lamenais, and Béranger among the men of letters. I am certainly far from believing that all these illustrious people have fixed opinions. It is instinct rather than a clear vision of the truth that guides them, but the very fact of their adhesion will commit them to our cause and oblige them to examine it. This is why I hold the cause dear, since without it I would prefer a wholly homogeneous association of a dozen followers who are free from commitments and unbound by the considerations that a name in politics imposes.
What factors sometimes make events great! Certainly if an opulent financier became devoted to the cause, or what would amount to the same thing, if a man who was profoundly persuaded and devoted had a huge fortune, the movement would quickly make progress. Today, for example, I know twenty prominent people who are watching each other, hesitating, and restrained only by the fear of tarnishing the brilliance of their name. If, instead of running from one to the other, on foot, mud spattered on my back, to meet one or two a day only and to obtain only evasive or dilatory replies, I could gather them round my table, in a sumptuous dining room, what difficulties would be overcome! Believe me, it is neither my spirit nor my heart that is failing. But I feel that this superb Babylon is not my place and I must make haste to return to my solitude and limit my contribution to a few articles in newspapers and some writing. Is it not strange that I should have reached the age at which hair goes gray, be a witness of the progress of luxury and repeat like the Greek philosopher,133 “How many things there are that I do not need!” and that I should feel overwhelmed by ambition at my age? Ambition! I dare to say that this ambition is pure, and if my poverty makes me suffer, it is because it is an invincible obstacle to the progress of the cause.
Forgive me, my dear sir, for these outpourings from my heart. I am talking about myself when I should be discussing only public affairs with you.
Farewell; I remain always your affectionate and devoted servant.
Letter 58. Paris, 2 Apr. 1846. To Richard Cobden↩
SourceLetter 58. Paris, 2 Apr. 1846. To Richard Cobden (OC1, pp. 130-31) [CW1, pp. 97-98].
TextMy dear sir, as I told you, your reply to the address of the Société d’économie politique will appear in the next issue of Le Journal des économistes. [98] 134 I hope it will produce a good effect. However, in view of the extreme susceptibility of our fellow citizens, it was deemed appropriate not to publish it in the daily press and to wait until our Paris association was on a firmer footing.
What we lack above all is a mouthpiece, a special journal, like the League. You will tell me that this must be a product of the association. However, I firmly believe that, to a certain extent, it is the association that will be the product of the journal; we do not have the means of communication and no accredited journal can provide us with one.
For this reason, I have thought about creating a weekly journal entitled Libre échange. I received the estimate for it yesterday evening. It can be established for an expenditure of 40,000 francs for the first year and receipts, based on one thousand subscribers at 10 francs, would only be 10,000 francs; a loss of 30,000 francs.
Bordeaux will, I hope, agree to bear part of this. But I must envisage covering the total cost. I thought of you. I cannot ask England for an open or secret subsidy as this would result in more disadvantages than benefits. But could you not obtain for us one thousand subscriptions at half a guinea? This would mean receipts of 500 pounds sterling or 12,500 francs, or 10,000 francs net once postage charges have been deducted. I think that London, Manchester, Liverpool, Leeds, Birmingham, Glasgow, and Edinburgh would be enough to take these thousand copies in genuine subscriptions, which your agents would facilitate. There would then be no subsidy, but faithful encouragement, which could be acknowledged openly.
When I see the timidity of our so-called free traders and how little they understand the necessity of adopting hard and fast principles, I consider it essential—as I will not hide from you—to take the initiative of starting this journal and managing it, for if, instead of preceding the association, it follows it, and is obliged to take on its spirit instead of creating it, I fear that the enterprise will be still-born.
Please reply as soon as you can and give me your frank advice.
Letter 59. Paris, 11 Apr. 1846. To Richard Cobden↩
SourceLetter 59. Paris, 11 Apr. 1846. To Richard Cobden (OC1, pp. 131-33) [CW1, p. 99].
TextMy dear sir, I hasten to tell you that your reply to the address of the economists will appear in this month’s journal, which will be published between the 15th and 20th. The translation is a little weak, as the person to whom it was mainly addressed thought it more appropriate to soften a few expressions in order to humor the susceptibility of our general public. This susceptibility is genuine, and what is more, it is cleverly manipulated. Just recently, while reading a few proofs in a printing works, I came across a book in which we were positively accused of having been bribed by England or rather by the League. As I knew the author, I persuaded him to withdraw this absurd allegation, but it made me realize the increasing danger of having any financial link with your society. I find it impossible to see anything reprehensible in the few subscriptions you may take in our writings in order to distribute them in Europe, and yet from now on I will refrain from calling on your sympathy and, independently of the reasons you give me, this is enough to make me resolve to conform to the national prejudice in this regard.
Although the movement in Bordeaux was rather impressive, I fear that it will create a great many obstacles precisely for that reason. No one dares do anything in Paris, for fear of not doing as much as Bordeaux. Right from the beginning, I predicted that an association, unnoticed at first but made up of men that were totally united and persuaded, would have a better chance than a grand demonstration. Finally, we have to act using the elements we have to hand, and one of the benefits of the association, if ever it spreads, will be to train135 the members themselves. They certainly need it. They cannot perceive the distinction between revenue-raising duties and protectionist duties. That means that they do not understand the very principle of the association, the only thing that can give it strength, cohesion, and longevity. I have developed this thesis in today’s issue of Le Courrier français, and will continue to do so.
Whatever happens, there has been incontrovertible progress in this country. Six months ago, no newspaper would support us. Today, we have five in Paris, three in Bordeaux, two in Marseilles, one in Le Havre, and two in Bayonne. I hope that a dozen peers and as many deputies will join our League and draw from it, if not enlightenment, at least courage.
Letter 60. Paris, 18 Apr. 1846. To Félix Coudroy↩
SourceLetter 60. Paris, 18 Apr. 1846. To Félix Coudroy (OC1, pp. 68-70) [CW1, pp. 100-1].
TextMy dear Félix, I am totally deprived of your letters and it is true that I myself have been very negligent. You cannot believe that I have no time, but this is nevertheless true; when you are living as though so to speak “camping in Paris,” the availability of time is so bad that you end up doing nothing.
I will not tell you very much about myself. I have so many people to see that I see no one; this may seem paradoxical but it is true. I have been only once to Dunoyer’s, once to Comte’s, once to Mignet’s, and so on. I am able to have contact with the newspapers; La Patrie, Le Courrier français, Le Siècle, and Le National have opened their columns to me. I have not been able to sign up with the Débats.136 M. Michel Chevalier has offered to include my articles in it, but I want to have entry to their actual offices to avoid cuts and changes.
The association is moving forward at the speed of a tortoise; I will not have my position settled until Sunday week, when there will be a meeting. Here are the names of some of the members: Harcourt, Pavée de Vandœuvre, Admiral Grivel, Anisson-Duperron, Vincens de Saint-Laurent, peers.
Lamartine, Lafarelle, Bussières, Lherbette, de Corcelle, and a few other deputies.
Michel Chevalier, Blanqui, Wolowski, Léon Faucher, and other economists. D’Eichthal, Cheuvreux, Say, and other merchant bankers.
The difficulty is to gather together these figures who are borne along in the political whirlwind. Behind them, there are young people who are more fervent and who must be contained at least provisionally, so as not to lose the advantage of having the support of these well-known and popular names.
In the meantime, we have had a meeting of the traders and manufacturers in Paris. Our aim was to prepare them; I was very ill prepared myself and I had not devoted more than one hour to thinking about what I would have to say. I drew up a very simple plan in which I could not go wrong and was happy to find that this method was not beyond my powers. By starting very simply and in a conversational tone, without seeking to be either witty or eloquent, but only to be clear and convincing, I was able to talk for half an hour without either fatigue or shyness. Others were more brilliant. We will [101] be having another, larger meeting in a week’s time and then I will try to enthuse the Latin Quarter.
I have seen the minister of finance137 in the last few days. He approved of all I am doing and asks for nothing more than to see public opinion molded.
Farewell; time is running short and I am even afraid that I am late.
Letter 61. Paris, 3 May 1846. To Félix Coudroy↩
SourceLetter 61. Paris, 3 May 1846. To Félix Coudroy (OC1, pp. 70-71) [CW1, pp. 101-2].
TextMy dear Félix, I have learned that there is an opportunity to send this letter and, although I am not at my best (as I have been holding my pen for seven hours), I do not want to let it pass without giving you my news.
I mentioned a meeting tomorrow to you and this is its subject. The addition of famous figures has buried our modest association. These people wanted to start everything again ab ovo138 and we therefore have to construct a program and draw up a manifesto, and this I have been working on all day. But there are four others who are doing the same thing. Whether we want to choose or combine, I can see a long, fruitless discussion ahead, because there are many men of letters, many theorists, and then there is the matter of ego. I would therefore not be surprised if it were referred to yet another commission where the same difficulties will arise, since everyone except me will defend his work and will come to be judged by the Assembly. This is a pity. The manifesto will be followed by the statutes, an organization that complies with these, and subscriptions, and it is only after all this that I will be confirmed. Sometimes I feel the urge to give up, but when I think of the beneficial effect that the simple manifesto with its forty signatures will produce, I cannot summon up the courage to do so. Perhaps when the manifesto has been issued, I will go to Mugron to wait for my summons, since the thought of spending months on end coping with simple formalities without doing anything useful appalls me. Besides, the electoral battle may require my presence. M. Dupérier sent me a message to say that he had formally withdrawn, and even added that he had burned his boats and written to all his friends that he had abandoned his candidature. Since this is so, if other candidates do not come forward, I may find myself confronting M. de [102] Larnac alone, and this combat does not worry me because it will be a conflict of doctrines and opinion. What amazes me is not to receive any letters from Saint-Sever. It appears that Dupérier’s communication ought to have attracted a few overtures to me. If you hear anything, please let me know.
Letter 62. Paris, 4 May 1846. To Félix Coudroy↩
SourceLetter 62. Paris, 4 May 1846. To Félix Coudroy (OC1, p. 71) [CW1, p. 102].
TextYesterday evening a manifesto was discussed and adopted. The discussion was serious, interesting, and profound, and that in itself is a very good thing, since many people who undertake to enlighten others enlighten themselves. All executive powers were entrusted to a commission made up of MM Harcourt, Say, Dunoyer, Renouard, Blanqui, Léon Faucher, Anisson-Duperron, and me. On the other hand, this commission will be transmitting to me, at least in practice, the authority it has received and will limit itself to a controlling function; in these circumstances, could I possibly abandon a role that might fall into other hands and compromise the entire cause? I am unhappy at leaving Mugron and my accustomed ways, whimsical work, and our conversations. This is a desperate wrench, but have I any right to step back?
Letter 63. Paris, 24 May 1846. To Félix Coudroy↩
SourceLetter 63. Paris, 24 May 1846. To Félix Coudroy (OC1, pp. 72-73) [CW1, pp. 101-2].
TextMy dear Félix, I have run around so much this morning that I cannot hold my pen properly and my writing is all trembling. What you have told me concerning the usefulness of my presence in Mugron is a constant preoccupation. But, my friend, I am almost certain that, if I left Paris, our association would collapse, and we would have to start all over again. You will make up your own mind about this; this is the position we are in: I think I told you that a commission had been appointed with full powers, but just when we were about to issue our manifesto, several of the commissioners wanted us to obtain prior authorization.139 A request was made for this and the minister agreed, but the days go by and nothing seems to come. In the meantime, the manifesto is in our files. It was certainly a mistake to request authorization; [103] we should have limited ourselves to a simple declaration. Our faint-hearted commissioners thought they were being accommodating to the minister but I think they caused him embarrassment since, especially with the elections coming shortly, he will be afraid of upsetting the manufacturers.
Nevertheless, M. Guizot has declared that he will give the authorization, M. de Broglie has made it understood that he would come over to us immediately afterward and this is why I am still being patient, but if there is any more delay I will complain loudly at the risk of demolishing everything, so as to start on another course and with other people.
You see how difficult it is to leave the field at this time. It is not that I do not want to, for, my dear Félix, Paris and I are not made for one another. There is too much to say on this subject, so we will leave it for another day.
Your article in Le Mémorial140 was excellent. Few people have read it, as it arrived only at the end of our meetings for the reason which I have told you, but I have sent it to Dunoyer and Say as well as to a few others, and everyone thought it was sufficiently lively and clear to absorb the reader and oblige him to agree. The “I will no longer be involved” could not fail to please Dunoyer a great deal; unfortunately the current view is leaning to an appalling degree in the other direction: “Involve the state in everything.” We will shortly produce a second edition of my Sophisms.141 We could include this article and a few others in this, if you write them. I can certainly tell you that this small book is destined to be circulated widely. In America, they are offering to distribute it widely, and the English and Italian newspapers have translated it almost in its entirety.142 But what annoys me a little is to see that the three or four pleasantries that I have slipped into this volume have been highly successful while the serious part has been widely overlooked. For this reason, you also should try a few buffa.143
I must end here. I have just learned that an opportunity has occurred with regard to Bordeaux and I want to take advantage of it.
Letter 64. Paris, 25 May 1846. To Richard Cobden↩
SourceLetter 64. Paris, 25 May 1846. To Richard Cobden (OC1, pp. 133-34) [CW1, pp. 104-5].
TextIt is quite a few days since I last wrote to you, dear Mr. Cobden, but finally I could not have found a more appropriate opportunity to atone for my negligence, since I am pleased to introduce to you the mayor of Bordeaux, the worthy and jovial president of our association, M. Duffour-Dubergié. I do not think I need add anything to assure him of the most cordial welcome on your part. Knowing the close union which binds all the members of the League, I am even dispensing with the duty of writing to Messrs. Bright, Paulton, etc., as I am sure that, on your recommendation, M. Duffour will be admitted to your circle as a member of this great confraternity which has arisen in support of the freedom and union of peoples. And who is more worthy of your friendship than he? He it was who, through the authority of his position, his wealth, and his character, carried Bordeaux along and caused the little that has occurred in Paris to happen. He has not procrastinated and hesitated like our diplomats in the capital. His resolution has been sufficiently prompt and forceful for our government itself not to have the time to hinder the movement, even supposing it had the intention of doing so.
Please, therefore, welcome M. Duffour as the true founder of the association in France. Others will seek and maybe gain the glory for this one day. This is quite normal, but, for my part, I will always give the credit to our president in Bordeaux.
In the midst of the uproar and excitement which must be surrounding your affairs, perhaps you sometimes wonder how our small league in Paris is getting on. Alas, it is in a period of the doldrums, which is very annoying for me. As French law requires associations to be authorized, several of our most prominent members stipulated that this formality should precede the release of any information outside. We therefore submitted our request, and since then we are dependent on the goodwill of the ministers. They have indeed promised authorization, but they have not issued it. Our colleague, M. Anisson-Dupéron, is devoting to this matter a zeal for which he should be praised. He combines the vigor of a young man with the maturity of a peer of France. Thanks to him, I hope we will succeed. If the minister stubbornly refuses to authorize us, our association will be dissolved. All the faint-hearted will leave, but there will always remain a certain number of members with greater resolve and we will constitute an organization on different [105] lines. Who knows whether in the long run this sorting out will not be an advantage to us?
I must admit that I will regret having to abandon fine, well-known names. These are needed in France, since our laws and customs prevent us from doing anything with and through the people. We can scarcely act with just the enlightened classes and, since this is so, men who have acquired a reputation are excellent auxiliaries. But, as a last resort, it is better to do without them than not to do anything at all.
It would appear that the protectionists are preparing a desperate defense in England. If you have a moment, I would be grateful if you would give me your views on the outcome of the struggle. M. Duffour will witness this great conflict. I envy him his good fortune.
Letter 65. Mugron, 25 June 1846. To Richard Cobden↩
SourceLetter 65. Mugron, 25 June 1846. To Richard Cobden (OC1, pp. 134-36) [CW1, pp. 105-6].
TextIt is not for you to apologize, my dear sir, but for me, for you are making great and noble use of your time while I, who am wasting mine, ought not to have waited so long without writing to you. You are at the end of your work. The hour of triumph has sounded for you. You can give yourself the testimonial that you have left a deep imprint of your passage on this earth and humanity will bless your name. You have led your huge campaign with the vigor, comprehensiveness, prudence, and moderation that will be an eternal example for all future reformers and, I say this most sincerely, the perfection you have brought to the art of campaigning will be a greater benefit for the human race than the specific purpose of your efforts, however great that is. You have taught the world that genuine strength lies in public opinion and shown it how to put this strength to work. I take it upon myself, my dear Cobden, to award you the palm of immortality and anoint your forehead with the mark of a great man.
As for me, you will see from the date of my letter that I have deserted the battlefield, not because of discouragement but temporary disgust. It must be said; the task in France is more specialized and less likely to make inroads in public sympathy. The material and moral obstacles are also huge. We have neither the railways nor the penny postage.144 We are not accustomed to subscriptions; [106] French minds are impatient with all hierarchy. We are capable of discussing the details of a regulation or the formalities of a meeting for a year. Lastly, our greatest misfortune is that we have no genuine economists. I have not met two who are capable of supporting the cause and its doctrine in a comprehensive and correct fashion, and we see the most gross errors and concessions infiltrating the speeches and writings of those known here as free traders. Communism and Fourierism absorb all the young minds, and we will have a host of outer ramparts to destroy before being able to attack the heart of the fortress.
If I turn my gaze on myself, I can feel tears of blood coming to my eyes. My health does not allow me to work assiduously and . . . but what use are complaints and regrets!
The September Laws145 which oppose us are not greatly to be feared. On the contrary, the government is doing us a favor by placing us in this posture. It offers us the means of stiffening the public fiber a little and melting the ice of public indifference. If it wanted to counter the rise of our ideas, it could not have gone about it in a worse way.
You make no mention of your health. I hope it is a little stronger. I would be very sorry if you came to Paris and I did not have the pleasure of doing you the honors there. It is doubtless an instinct for contrast that incites you to go to Cairo, contraria contrariis curantur.146 You wish to escape the fog, liberty, and unrest in Britain by seeking refuge under the sun, despotism, and political inertia of Egypt. Oh that I might, in seven years’ time, go to seek rest from the same weariness in the same place!
You are thus going to dissolve the League! What an instructive and imposing prospect! What is the abdication of Scylla compared with such an act of selflessness? This is the time for me to rewrite and complete my History of the League. But will I have the time? The flow of affairs takes up all my waking hours. I also need to produce a second edition of my Sophisms and I would very much like to write a small book entitled Economic Harmonies. It will make a pair with the other; the first demolishes and the second would build.
Letter 66. Bordeaux, 21 Jul. 1846. To Richard Cobden↩
SourceLetter 66. Bordeaux, 21 Jul. 1846. To Richard Cobden (OC1, pp. 136-38) [CW1, pp. 107-8].
TextMy dear and excellent friend, your letter found me here in Bordeaux, where I have come to attend a meeting following the return of our president, M. Duffour-Dubergié. This meeting will take place in a few hours’ time; I am to speak at it and this is exercising my mind to such an extent that you must excuse the confusion and incoherence of this letter. Nevertheless, I do not want to put off writing to you since you have asked me to reply by return.
I do not need to tell you how pleased I was to learn of the conclusion of your great and glorious enterprise. The keystone has fallen, and the entire monopoly structure will crumble, including the colonial system, which is linked to the protectionist system. This above all is what will have a strong influence on public opinion in Europe and dissolve the truly disastrous and profound prejudices in this country.
When I entitled my book Cobden and the League, no one had told me that you were the soul of this powerful organization and that you had communicated to it all the qualities of your mind and heart. I am proud that I sensed this and that I foresaw, if not anticipated, public opinion throughout England. For the love of man, please do not reject the acknowledgment the country wishes to give you. Allow the people to express their gratitude freely and nobly. England is honoring you and is honoring herself even more through this great act of justice. Be sure that she is investing the hundred thousand pounds sterling at a high rate of interest, since as long as she knows how to reward its faithful servants well she will be well served.147 She will never lack great men. Here in France, we also have fine minds and noble hearts, but their potential remains unrealized because the country has not yet learned this important but oh, so simple lesson: honor what is honorable and despise what is despicable. The gift they are preparing for you is the glorious culmination of the most glorious enterprise that the world has ever seen. Leave these great examples to reach future generations in their entirety.
[108]I will be going to Paris at the beginning of August. It is not likely that I will be arriving there as a deputy. The same cause is still forcing me to wait for this mandate to be imposed on me, and in France, this wait can be long. But, like you, I think that the work I have to do is outside the legislative perimeter.
I have just left the meeting, at which I did not speak.148 But, with reference to election as a deputy, an extraordinary thing has happened to me. I will tell you about it in Paris. Oh, my friend, there are countries in which you have to have a truly great spirit to concern yourself with the public good, so great an effort is deployed to discourage you!
Letter 67. Bordeaux, 22 Jul. 1846. To Félix Coudroy↩
SourceLetter 67. Bordeaux, 22 Jul. 1846. To Félix Coudroy (OC1, pp. 73-74) [CW1, pp. 108-9].
TextMy dear Félix, I wrote to you the day before yesterday and would not be surprised if my letter went astray, since for the last month I have been going from one misunderstanding to another. I would need a ream of paper to tell you all that has happened to me. They are not pleasant things but they do have the advantage of letting me make great strides in acquiring knowledge of the human heart. Alas! Perhaps it would be better to retain the few illusions we should have at our age.
First of all, I have found out that the delay in sending out my brochure is the result of intrigue. My letter to M. Duchâtel149 offended him, but it forced out of him the authorization that so many highly placed figures were pursuing for the last three months. And do you think the association in Bordeaux was grateful? Not at all. There has been a complete change of opinion against me here, and I have been branded a radical; my brochure was the final straw. M. Duchâtel has written to the prefect, the prefect summoned the manager of Le Mémorial150 and hauled him over the coals, and the manager has atoned for his fault by delaying my brochure. In spite of this, right now, the four hundred copies should have reached you.151
As for what is happening with regard to the elections, it would take too [109] long and I will tell you when we meet. The result is that I will not be supported anywhere, except perhaps in Nérac.152 However, I see this as a mere show of opposition and not as a serious candidature, unless the unexpected happens on election day.
Yesterday we had a meeting of the association in Bordeaux. The way I was begged to speak made me beg to refuse.
I presume that right now all the electors of Saint-Sever have received my brochure. This is all I have to offer them with my devotion to duty. Distributing it must be giving you much work. If there are four of you, however, the task will be lighter. I hope to have returned to Mugron by the 28th or 29th, just in time to vote.
Farewell, my dear Félix, I will not seal this letter until this evening, in case I have anything to add.
P.S. I have just had an important interview, which I will tell you about. But the result is that Bordeaux will not be supporting me; they want an economist who is right in the center. The minister has recommended Blanqui.
Letter 68. Paris, 23 Sept. 1846. To Richard Cobden↩
SourceLetter 68. Paris, 23 Sept. 1846. To Richard Cobden (OC1, pp. 138-39) [CW1, pp. 109-10].
TextAlthough I have not a great deal to tell you, my dear friend, I do not want to let any more time go by without writing to you.
We are still in the same situation, with a great deal of trouble bringing an organization to birth. I hope, nevertheless, that next month will be more productive. First of all, we will have a headquarters. That is a good start; it is the embodiment153 of the League. Next, several leading men154 are returning from the country, among whom is the excellent M. Anisson, whom I have been missing.
In the meantime, we are preparing for a second meeting on the 29th. This is perhaps a little dangerous, since a fiasco in France tends to be deadly. I am offering to speak at it and I will reread your lesson on eloquence several times between now and then. Could I obtain this from a better source? I assure you that I will have at least two precious, although negative, qualities [110] in the absence of others, simplicity and brevity. I will not try to make people laugh or cry, but to elucidate a difficult point of economic science.
There is one point on which I do not agree with you, that is, on public speaking. I think it is the most powerful instrument of propagation. Is it nothing to have several thousand listeners who understand you much better than if they were reading you? Afterward, the next day, everyone wants to know what you said and the truth goes on its way.
You know that Marseilles has issued its pronunciamento; the people there are already richer than we. I hope they will help us, at least in founding the journal.
Brussels has just formed its association. And what is surprising, the association has just published the first issue of its journal. Alas! The Belgians probably do not have a law on stamps and another on surety.155
I am impatient to know whether you have visited our marvelous Pyrenees. The mayor of Bordeaux wrote to tell me that my desolate Landes appeared to you to be the land of lizards and salamanders.156 And yet deep affection can transform this frightful desert into an earthly paradise! But I hope that our Pyrenees will have reconciled you to the south of France. What a shame that all the provinces that surround Pau, the Juranson, the Béarn, the Tursan, the Armagnac, and the Chalosse cannot carry out trade that would be so natural with England!157
Let us return to the subject of associations. One is being formed of protectionists. This is the best thing that could have happened to us, as we really need a stimulus. It is said that another is being formed in favor of free trade in raw materials and the protection of factories. That one, at least, does not pretend to be based on a principle and take account of justice. It thus considers itself to be eminently practical. It is clear that it cannot stand alone and that it will be absorbed by us.
Letter 69. Paris, 29 Sept. 1846. To Richard Cobden↩
SourceLetter 69. Paris, 29 Sept. 1846. To Richard Cobden (OC1, pp. 140-42) [CW1, pp. 111-13].
TextMy dear friend, I have been to visit M. de Loménie,158 who has come to my lodgings though we still have not met. But I am meeting him tomorrow and will make available to him all my documents and those of Fonteyraud. In addition, I will offer him my cooperation, either for translating or, if need be, giving his article a veneer of economic orthodoxy. I have at the forefront of my memory the passage from your closing speech in which you make an excursion into the future and from there open up to your listeners a horizon that is wider and finer than that offered to you from the Pic du Midi. This speech will be translated and sent to M. de Loménie. He might well also use your excerpt on emigration, which is really eloquent. In short, let me have some information on it. The only thing is that I have to tell you that very little is said here about this gallery of famous men. I am assured that this type of work is a speculation on the amour propre of those who aspire to celebrity. But perhaps this insinuation arises from the jealousies of authors and publishers, irritabile genus,159 the vainest species of men I know after fencing masters.
I have just received your nice letter. Has it reached me in time? I have incorporated the text you indicate quite naturally in my speech. How could I not have thought of asking for your advice? This doubtless is because I have a head full of arguments and felt that I was rich. But I thought only of the subject and you have made me think of the audience. I now understand that a good speech must be supplied to us by the audience rather than by its subject. Running through mine in my head, I think that it is not too philosophical and that it combines economic science, appropriateness, and parables in proper proportion.160 I will send it to you and you will let me know your view of it for my edification. You will understand, my dear Cobden, that any tact would do me a disservice. I have as much amour propre as the next man and no one fears ridicule more than I, but that is precisely why I want good advice and good criticism. One of your remarks might spare me a thousand in the future that is opening out before me and carrying me along. A great many things will be decided tonight.
[112]I am expected in Le Havre. Oh! What a burden is an exaggerated reputation! There, I will have to discuss the shipping interest. I remember that you had good things to say on this subject in Liverpool or in Hull. I will do some research, but if you have any good ideas relating to Le Havre, please let me have them for charity’s sake or rather, through me, bestow this charity on the fearful shipowners who are counting on the small number of trading operations to increase the number of transport facilities. What blindness! What a distortion of human intelligence!
- And I am astonished when I think of this,
- To what depths the human spirit can sink.
I will not post my letter until tomorrow, so that I can tell you about an event that I am sure will interest you as much as if it were personal.
I was forgetting to tell you that your previous letter arrived too late. I had already booked two separate apartments, one for the association and the other for me, but in the same house. We have to accept our fate with the motto that consoles Spanish people in all circumstances: no hay remedio!161 As for my health, do not worry, it is better. I believe that Providence will give me enough to see me through. I am becoming superstitious; is it not good to be this way just a little?
But here my letter is arriving at the square yard. It will pay heavy duties. This would probably not happen if the post office adopted the ad valorem duty. I am leaving some space for tomorrow.
Midnight.
The session162 has just ended. Anisson chaired it. The audience was larger than the previous time. We had five speeches including two from professors who thought they were giving classes. Very much more than I, they thought about their subject more than their audience. M. Say had a great success; he spoke with warmth and was roundly applauded. I am pleased about that, since how can one fail to like this excellent man? M—— made three excellent speeches in one. His only fault was length. I was the fifth to speak, with the disadvantage of having a harassed audience. Notwithstanding this, I had as much success as I wished. What was funny is that the only emotion I felt was in my calves. I now understand Racine’s line:
[113]And my trembling knees are buckling beneath me.
The 30th.
I have seen only one newspaper, Le Commerce. This is what it says: “Mr. Bastiat succeeded in having his economic parables accepted through an unpretentious delivery that was accompanied by a thoroughly southern eloquence.” This scant praise is enough for me and I want no more, since God preserve me from arousing envy in my colleagues!
Letter 70. Paris, 1 Oct. 1846. To Félix Coudroy↩
SourceLetter 70. Paris, 1 Oct. 1846. To Félix Coudroy (OC1, pp. 74-76) [CW1, pp. 113-14].
TextMy dear Félix, I have had no news of you and consequently do not know how you are progressing in your court case. May you be close to a solution and success! Give me news of your good sister; were the baths at Biarritz beneficial for her? I am sorry you were not able to accompany her; I think Mugron must be becoming sadder and more monotonous for you with each passing day.
People in Bordeaux have written to tell me that several of our articles are being reprinted as a brochure. This is why I am in no hurry to produce a second volume of Sophisms; this would be duplication. Just writing my correspondence takes me as much time as I can devote to writing. My friend, I am not only part of the association, I am the association in its entirety, not because I lack enthusiastic and devoted colleagues when it comes to speaking and writing. As for organizing and administering this vast machine, however, I am on my own, and how long will this last? On the 15th of this month, I am taking possession of my place of work. I will then have staff. Until then, I cannot undertake any intellectual work.
I am sending you an issue of the journal that reports on our public session yesterday. I made my debut on the Paris stage in extremely unfavorable circumstances. There was a large audience and for the first time there were women in the public gallery. It had been arranged that five speakers would be heard and that each would speak for half an hour. This already made the session last for two and a half hours. I was to speak last; of my four predecessors, two were faithful to the rules and two others spoke for more than an hour; they were professors. I therefore stood up in front of an audience harangued by three hours of economics and in a hurry to leave. I myself was very tired by such an extended wait. I stood up with the terrible foreboding [114] that my head would let me down. I had prepared my speech carefully but without writing it down. You can imagine how terrified I was. How was it that I did not have a moment of hesitation or feel any worry or emotion, except in my legs? I cannot explain it. I owe it all to the modest tone with which I started. After warning the audience that they should expect no eloquence, I felt perfectly at ease and I must have succeeded since the newspapers report only this speech. This is a great test I have passed. I tell you all this frankly, as you can see, persuaded that you will be delighted both for me and the cause. My dear Félix, I am sure that we will triumph. In a short time, my fellow countrymen may trade their wines for anything they want. The Chalosse will come back to life. This is the thought that sustains me. I will not have been totally without use to my country.
I presume that I will be going to Le Havre in two or three months to organize a committee. The prefect in Rouen has warned M. Anisson “that he should take care to come at night if he does not wish to be stoned.”
I am assured that yesterday evening there was a large protectionist meeting in Rouen. If I had known this, I would have gone incognito. I would congratulate myself if these people did as we do; that would goad us on. And incidentally it is a safety valve; as long as they defend themselves through legal channels, there will be no fear of collision.
Farewell, my dear Félix. Write to me from time to time; put your solitude to good use and do something worthwhile. I very much regret not being able to undertake anything for true glory. If you think of a good way of doing so, let me know of it. I am assured that parables and jokes have greater success and more effect than the best treatises.
Letter 71. Paris, 22 Oct. 1846. To Richard Cobden↩
SourceLetter 71. Paris, 22 Oct. 1846. To Richard Cobden (OC1, pp. 142-44) [CW1, pp. 114-16].
TextMy dear friend, I was beginning to worry about your silence. At last I have received your letter dated . . . and I am delighted to learn that you and Mrs. Cobden are enjoying being in Spain. What will happen when you see Andalusia! As far as I was able to see, in Seville and Cadiz there was an air of equality in the manners between classes which was balm to the soul. I am enchanted to learn that there are good free traders beyond the Pyrenees. Perhaps they will put us to shame. Dear friend, I think we have in common that we are free of personal jealousy. But do you have national jealousy? For my part, I scarcely feel any. I would like my country to give a good example, [115] but failing that, I would prefer even more that it receive good example rather than wait a century to take the lead. And yet . . . I cannot refrain from uttering a philosophical thought. Nations take great pride in having a great musician, a good painter, or a skillful captain, as though that added something to their own merit. It is said that “the French invent, the English encourage.” For heaven’s sake! Would you not agree that invention is a personal fact and encouragement a national fact? Bentham said of science, “What propagates it is more valuable than what advances it.” I say the same of virtues.
But whither am I wandering? To the view that it matters little whether progress reaches us from the dusk or the dawn, provided that it comes.
Your speech will appear in two Paris newspapers. It was not I who translated it. I noted that you were able to give advice to more places than just Paris. Moreover, you did this with perfect propriety and I very much approve of your having told the Castilians that it is not necessary to kill people in order to teach them how to live.
Here we are moving slowly but we are moving. Our most recent meeting was good and the public is clamoring for another. I went to Le Havre. An association has been formed there but it did not think it necessary to adopt our title. I fear that these people have not understood the importance of rallying round a single principle. They are demanding trade reform and a reduction in consumption taxes. How much there would be to say! Trade reform! They did not dare utter the word freedom, because of shipping. A reduction in taxes! Into what topics of discussion will this draw them?
On the subject of shipping, I inserted an article in the Le Havre journal, which had a good local effect.163 M. Anisson thinks that it is at the expense of the principle. I do not think so, but it pains me to disagree with the most enthusiastic and enlightened of my colleagues. I would very much like you to be close to us to be able to settle this disagreement. But truly, a debate by letter would take too long.
I do not know whether it is to my shame or glory but I have read nothing about the marriage.164 Our journal, the Courrier,165 has been speaking [116] of nothing else for the last two months. I have told it that it would do just as well to print under its title “Journal of a Spanish Coterie.” It has lost its subscribers and is blaming it on Libre échange.166 What a shame! I really am homesick for my Landes. There, I imagined human turpitude, but it is much sadder to see it.
Farewell, my brother in arms, take care of your health and that of Mrs. Cobden, to whom I send my best regards. Be careful of the Spanish climate, which is very treacherous and destroys the lungs without appearing to affect them.
Letter 72. Paris, 22 Nov. 1846. To Richard Cobden↩
SourceLetter 72. Paris, 22 Nov. 1846. To Richard Cobden (OC1, pp. 144-46) [CW1, pp. 116-18].
TextMy dear friend, I thank you for having made it possible for me to follow you in your travels in the newspapers of Madrid, Seville, and Cadiz. The expressions of friendship that you receive everywhere reach our fine cause, through you.167 It makes me happy to see that people’s tributes are finally reaching the right target instead of being diverted, as is customary, toward the actions that, for whatever reason, inflict the most obvious evils on the poor human race. At the same time I am very glad to learn that you are enjoying good health and that Mrs. Cobden has not suffered from such a long journey.
I share your opinion on Spain and the Spanish. However, are you not cherishing a few illusions on the degree of prosperity enjoyed by this country? I know that everyone always talks about its fertility, but the absence of rivers, canals, roads, and trees creates obstacles whose significance you should appreciate. By isolating people, they obstruct both moral and social development and the accumulation of wealth. Spain needs someone to invent a means of enabling trains to cross the mountains.
Because I have little time and scarcely enough to keep up with correspondence with my family, I will go straight to the question of free trade in France. At present we are overwhelmed. The protectionists are campaigning in depth and in the English style. Newspapers, contributions, calls to the workers, and threats to the government are all being used. When I say [117] English style, I mean that they are using a great deal of energy and a true understanding of campaigning.
In this respect, our provinces in the north are much further advanced than our départements in the south. In addition, a more pressing interest is goading them on. In twenty-four hours they have founded a journal, while we . . . would you believe that we still do not know whether Bordeaux is willing to help us or not? Marseilles and Le Havre are isolating themselves and their only reason for this is that they do not think we are practical enough, as though we had something other to do than destroy a public error. But I was expecting all this and even worse.
I have not been able to escape the need to take on the physical work myself. Lack of money on the one hand and the commitments of my colleagues on the other leave me with no alternative but to abandon everything or drink deep from this chalice. I have seen in the protectionist journal and in democratic broadsheets the strangest fallacies168 without having the time to refute them, and it is even impossible for me to gather together the material for a second volume of Sophisms, although I have them in sufficient number. The only thing is that they are all of the buffa169 type, and I would like to intersperse them with a few seria.170 As for another, more complete edition of Cobden and the League, I am not even thinking about it.
What a difference it would make, my dear friend, if I could go from town to town speaking and writing!
Be that as it may, public opinion has been awoken and I entertain hope.
It has almost been decided that we will be publishing our first issue in the first few days of December, without knowing how we will be able to continue. However, should not good causes be able to rely on Providence? I will send you a copy as often as I can contact you in your wanderings. I also hope that you will be able to gain us subscribers abroad. We have worked out that at twelve francs we need five thousand subscribers to cover our costs. We would then be able to do without Marseilles and Le Havre. In spite of the fact that we have to be very circumspect with regard to foreigners, and especially the English, I do not think there will be any disadvantages in your fellow countrymen helping us to increase the circulation of our journal in those countries in which French is widely spoken.
[118]I have just received a letter from Bordeaux. It gives me hope that we will receive help. The mayor is working on this with good heart.
Another piece of good fortune has just happened to me. The workers have committed me to going to meet them and reach an agreement with them. If I won them over, they would carry along the democratic party. I will devote all my efforts to this.
Letter 73. Paris, 25 Nov. 1846. To Richard Cobden↩
SourceLetter 73. Paris, 25 Nov. 1846. To Richard Cobden (OC1, pp. 147-48) [CW1, pp. 118-19].
TextMy dear friend, yesterday evening we held our third public session. The Montesquieu Hall was full and many people could not enter, which is, in Paris, the most favorable circumstance for attracting people. New classes of people appeared in the audience. I had sent tickets to workers and students at the law school. The public was admirable and, although the speakers sometimes forgot the rule of wisdom and prudence which was of course in their own interest too, stop talking! the audience listened with religious attention where they were not carried away with enthusiasm. Our speakers were MM Faucher, who commented with great emphasis and pertinence on an official letter from the protectionists to the council of ministers; Peupin, a worker, who would have been a perfect model of verve and simplicity if he had kept to his subject, from which he was rather too eager to wander; and Ortolan, who gave an eloquent speech and considered the question from a totally new point of view. This speech roused the audience and stiffened the French fiber. Lastly, Blanqui, who was as energetic as he was witty. Our worthy president opened the session with a few graceful words imbued with the fine tone that our nominal aristocracy still retains. I will send you all of this.
Speaking in public has an irresistible attraction for French people. It is therefore probable that we will be overwhelmed with requests and, as for me, I have decided to wait to be asked to speak. This makes it possible that I will have a long wait; be that as it may, it will not bother me to be ready if need be. Therefore, if you have any new ideas or a thought that, when developed, might serve as a text for a good speech, please let me have them. If my health cannot cope with the amount of internal work that has fallen upon me, I will request a holiday and take advantage of it to go to Lyons, Marseilles, Nîmes, etc. Therefore, please send me anything that you consider would be relevant for these various towns. You might write these thoughts [119] down on scraps of paper as they come to mind, and enclose them in your letters. I will mix the drink using the flavorings you have given me.
In particular, I would like to examine in depth the question of wages, that is to say, the influence that freedom and protectionism have on them. It would be no trouble at all for me to deal with this major question in economic terms, and if I had to write a book on this, I would perhaps produce a satisfactory result. But what I lack is one of the clear, striking reasons that are ready to be put before the workers themselves and which, in order to be understood, do not need all the previous notions of value, currency, capital, competition, etc.
Farewell, my dear friend, write to me in Barcelona. I think I am slightly feverish and have subjected myself to doing nothing today. This is why I am stopping, assuring you once more of my friendship.
Letter 74. Paris, 20 Dec. 1846. To Richard Cobden↩
SourceLetter 74. Paris, 20 Dec. 1846. To Richard Cobden (OC1, pp. 148-50) [CW1, pp. 119-21].
TextMy dear friend, I had lost track of you for a while and am glad to know that you are in France, in the most delightful country on earth, if it had common sense. Ah! My friend, I was expecting our opponents to exploit blind popular passions against us, including the hatred of foreigners. But I did not think that they would succeed so well. They have once more bribed the press and the word is out to treat us as traitors and agents of Pitt171 and Coburg. Would you believe that, in my own region, this calumny has made inroads? I have had letters from Mugron to say that people dare to speak of me only within the family, so fiercely has public opinion been aroused against our enterprise. On the 29th of this month, I am due to speak in the Montesquieu Hall172 and I plan to refer to this delicate subject and develop the idea that “the English oligarchy has borne down hard upon the world, and it is this that explains the universal distrust with which anything that is done across the Channel is met. But there is a country on which it has borne down harder upon than on any other and that is England itself. This is why there is in England a class that stands up to the oligarchy and is gradually stripping it of its dangerous privileges. This is the class that has in succession achieved Catholic emancipation, electoral reform, the abolition of slavery, [120] and free trade, and that is on the point of achieving the liberation of the colonies. It is therefore working in our direction, and it is absurd to envelop it in the same hatred that we should be reserving for the domineering classes in all countries.”
That is the text. I think I will be able to dress it up sufficiently to have it accepted.173
How much I would have to tell you, my dear friend, but I do not have enough time. I am sending you the first four issues of our journal. I have marked what I have written. I was constrained, under pain of having the enterprise fail, to mention my name and now I can no longer accept the responsibility for everything that is said in it. This is going to lead to a crisis, because I need to be able to produce the journal in the way I want or else someone else must give it his signature.
Of all the sacrifices I have made to the cause, this is the greatest. Carrying on the fight in my own way was more suited to my character, sometimes writing serious and lengthy articles and at others going to Lyons or Marseilles, in short being guided by my native sensibility. Here I am, on the contrary, chained to daily polemics. However, in our country, that is the scope of usefulness.
You have no need of an introduction to M. Rossi; your reputation will open all doors to you. However, since you want one, I will send you a letter from M. Chevalier or from someone else.
Now, I believe that our efforts should be directed to the distribution of our journal, Le Libre échange. Rest assured that, as soon as we are free of the inevitable tensions accompanying a launch, this journal will be produced with a good spirit and may give considerable service, provided that it is read. Devote yourself, therefore, during your travels, to finding subscribers to it and ensure that the borders of Italy are not closed to it. Underline that it does not attack any political institution or religious belief. Italy is the country which provided the most subscribers to Le Journal des économistes. It should provide even more to Libre échange, which will appear every week and cost only twelve francs. That is not all. I think you ought to write to London or Manchester, because, after all, the cry174 against England does not prevent us from finding subscribers there. Subscriptions are a matter of life and death for us. My dear Cobden, after having directed the movement in [121] England from such a height, please do not disdain the humble mission of a subscription broker.
I am truly ashamed to send you this letter written in fits and starts and not really knowing what I am saying. I will find the time to write to you in more relaxed fashion, either tonight or tomorrow night.
Letter 75. Paris, 25 Dec. 1846. To Richard Cobden↩
SourceLetter 75. Paris, 25 Dec. 1846. To Richard Cobden (OC1, pp. 151-52) [CW1, pp. 121-22].
TextMy dear friend, I communicated your letter to Léon Faucher. He says that “you do not know France.” For my part, I am convinced that we can succeed only by awakening a sentiment of justice and that we would not even be able to mention the word justice if we accepted the shadow of protection. We have tried it, and the only time we wanted to make overtures to a town, it laughed in our faces. It is this conviction and the certitude I have that it is not sufficiently shared that principally committed me to accepting the management of the journal. Not that it is a very real management; there is an editorial committee, which has full authority, but I hope nevertheless to give some clear color to the spirit of this broadsheet. What a sacrifice, my friend, to accept the job of a journalist and put my name at the foot of a medley! But I am not writing to you to air my complaints.
Marseilles does not appear, any more than Bordeaux, to understand the need to concentrate the action in Paris. This is weakening us. Our opponents have not made this mistake, and although their association is harboring the countless germs of division, they are containing these germs through their skill and self-sacrifice. If you have the opportunity of seeing the leaders in Marseilles, please explain the situation to them clearly.
The cry175 against England is stifling us. Formidable prejudices have been aroused against us. If this hatred for perfidious Albion were just a fashion, I would wait patiently for it to blow over. However, it has deep roots in people’s hearts. It is universal, and as I have told you, I think that in my village people no longer dare to talk of me outside the family. What is more, this blind passion serves protected interests and political parties so well that they exploit it in the most shameless fashion. As an isolated writer, I might refute them energetically, but, as a member of an association, I must act with more prudence.
[122]Besides, it must be said that events do not favor us. On the very day that Sir Robert Peel accomplished free trade, he asked for a credit of twenty-five million for the army, as though to proclaim his lack of faith in his work and as though to throw our best arguments back in our faces. Since then, the policy of your government has always been imbued with a spirit of teasing which irritates the French people and makes it forget what might remain to it of impartiality. Ah! If I had been prime minister of England, on the occasion of Krakow176 I would have said, “The 1815 treaties have been broken. France is free! England fought the principle of the French Revolution up to Waterloo. Now it has another policy, that of nonintervention to its full extent. Let France recover its rights, like England in eternal neutrality.” And fitting action to words, I would have dismissed half of the army and three-quarters of the sailors. But I am not the prime minister.
Letter 76. Paris, 10 Jan. 1847. To Richard Cobden↩
SourceLetter 76. Paris, 10 Jan. 1847. To Richard Cobden (OC1, pp. 152-54) [CW1, pp. 122-24].
TextMy dear friend, I received your two letters written in Marseilles almost at the same time. I agree with your merely passing through this town, as God alone knows how a longer visit would have been interpreted. My friend, the obstacle that will be constructed against us by national prejudices is much more serious and will last for longer than you appear to believe. If the monopolists had whipped up anglophobia for the needs of the cause, this strategic maneuver could easily be countered. In any case, France would have discovered the trap in a very short time. But they are exploiting a sentiment that already existed, which has deep roots in people’s hearts, and—shall I tell you?—although mistaken and exaggerated, can be explained and justified. There is no doubt that the English oligarchy has borne down painfully upon Europe, and that its pendulum policy of sometimes supporting the despots in the north to repress freedom in the south and sometimes whipping up liberalism in the south to contain the despotism in the north, must have generated an inevitable reaction everywhere. You will tell me that you should never confuse peoples with their governments. That is fine for thinkers. But [123] nations judge each other by the external action they carry out against each other. And then, I must admit, this distinction is a bit subtle. Peoples stand by their governments to a certain extent and let them act even if they do not actively help them. The constant policy of the British oligarchy has been to involve the nation in its intrigues and enterprises in order to generate in it a hostile feeling against the human race and thus keep it in a state of dependence. Now this general hostility is coming to the surface; it is a just punishment for past sins and it will survive long after these same sins disappear.
Thus the national sentiment of which the monopolists are making use is very real. In addition, it serves the parties admirably. The democrats, the republicans, and the opposition on the left all exploit it as best they can, some for making the king unpopular, others for overthrowing M. Guizot. You will agree that the monopolists have discovered in this a very dangerous power.
To outwit this maneuver, I had the idea of beginning by acknowledging the Machiavellianism and invasive policy of the British oligarchy and then saying, “Who has suffered more than the English people themselves?” revealing the sentiment of opposition that it has encountered in England from time immemorial and showing this sentiment resisting the war against American independence in 1773 [sic] and the war against the French Revolution in 1791. This sentiment was then repressed but not stifled; it still lives, it is growing and has become public opinion. This is what extracted Catholic emancipation, the extension of electoral suffrage, and the abolition of slavery from the oligarchy, and more recently, the destruction of monopolies. It will also extract the liberation of trade with the colonies. And on this subject, I will show that the liberation of trade will lead to political liberation. Therefore, invasive politics will have ceased to exist, since we do not give up invasions that have been achieved to run after new forms of invasion.
Following this, through translations of writings by you, Fox, and Thompson, I will show that the League is the mouthpiece and outward expression of the sentiment which harmonizes with that in Europe, etc., etc.; you can guess the rest. But I will need time and strength and I have neither. As I cannot write, this will be the text for the end of my next speech in the Montesquieu Hall. For the rest, I will not say anything I do not think.
How lucky you are to be under Italian skies! When will I also see the fields, the sea, and the mountains! O rus! Quando ego te aspiciam!177 And above all, when will I be in the midst of those who love me! You, yourself, [124] have made sacrifices, but they were done in order to build the foundation of civilization. In all conscience, my friend, is the same selflessness expected of someone who can bring only a grain of sand to the monument? However, I needed to think of this before; now the sword has been drawn from its scabbard. It will never return. The monopoly or your friend will go to Père Lachaise178 before it does.
Letter 77. Paris, 11 March 1847. To Félix Coudroy↩
SourceLetter 77. Paris, 11 March 1847. To Félix Coudroy (OC1, pp. 76-78) [CW1, pp. 124-25].
TextMy dear Félix, your letter arrived just in time to remove the anxiety caused by your one of the previous day. However, I had the premonition that you would give me better news and my confidence was precisely based on my aunt’s somnolence, which caused you to worry, for on two occasions I was able to ascertain that it is rather a good sign where she is concerned. However, the constitution of our physical bodies is so strange that I was not very reassured by it. I was therefore waiting impatiently for your letter and unfortunately fate decreed that it was delayed for several hours today because of snow. I have it at last and am at peace. What a torment for us it is, my dear Félix, when uncertain circumstances combine with the state of uncertainty of our minds. Abandoning my poor aunt at this time when she is ill and without a relative at her side! That thought is frightful. On the other hand all the threads of our enterprise are in my hands: the journal,179 correspondence, and the accounts, and can I leave the whole structure to collapse? There was a committee meeting in which I spoke of my need to absent myself and was given to understand to what extent I was committed. However, a friend has offered to do the journal in my absence. This is a great help, but how many other obstacles remain! In the end, my aunt is feeling better. This will be a lesson to me and I will arrange to be able to take at least a few days, if I need to. For your part, my dear Félix, please keep me fully up to date.
Your white cottage beckons me. I admire and congratulate you for situating your castles in the air, where only you can attain them. Two adjoining sharecropping farms; a proper combination of fields, vineyards, pastures; a few cows; two patriarchal families of sharecroppers; two servants, who do [125] not cost much in the country; proximity to the presbytery; and above all, your good sister and your books. There is really enough there to vary, fill, and sweeten your autumn days. Perhaps one day I also will have a cottage close to yours. Poor Félix! You think that I am pursuing fame. If it were my destiny, as you say, it would escape me here, where I am doing nothing worthwhile. I can feel a new dissertation on economic science in my head and it will never emerge! Farewell, it is perhaps already too late for the post.
Letter 78. Paris, 20 March 1847. To Richard Cobden↩
SourceLetter 78. Paris, 20 March 1847. To Richard Cobden (OC1, pp. 155-57) [CW1, pp. 125-26].
TextMy dear friend, I was filled with anxiety and even surprised not to receive news of you. I asked myself, “Has the free-trade atmosphere in Italy made him forget our protectionist region?” I thought every day of writing to you, but where would I find you, where should I address my letters? At last, I have received yours of the 7th. After my pleasure at hearing that both you and Mrs. Cobden were in good health, I have another cause for satisfaction, that of knowing Italy to be so far advanced in the right doctrine. Thus, my poor France, so far in advance of other nations in many respects, is being left behind in political economy. My national pride should be suffering, but I will whisper low in your ear, my friend, that I have little patriotism of this sort and if my country is not the one shining the light, I at least want it to shine in other skies. Amica patria, sed magis amica veritas,180 and I say to peace, the happiness of mankind, and the brotherhood of nations, in the words of Lamartine to enthusiasm:
Come from the dusk or the dawn.
I am writing to you, my dear Cobden, two hours before my departure for Mugron, to which the serious illness of the old aunt, who has been like a mother to me since I had the misfortune in childhood of losing mine, is summoning me urgently. How will our journal fare during my absence? I do not know and yet my name will remain affixed to it! It is truly a difficult enterprise, as you cannot make the slightest mention of passing events without the risk of upsetting the political susceptibilities of one or another colleague. This assiduous care to avoid anything that might annoy the political parties (since all are represented in our association) deprives us of three-quarters [126] of our strength. What immense good our journal might do if it contrasted the inanity and danger of current policy with the grandeur and security of free-trade policies! Before the journal was founded, I had a plan to publish a small book each month in the same mold as the Sophisms, in which I would have free rein. I really think it would have been more useful than the journal itself.
Our campaigning is not very active. We still need a man of action. When will he appear? I do not know. I should be that man, I am propelled forward by the unanimous confidence of my colleagues, but I cannot.181 My character is not suited to this and all the advice in the world cannot turn a reed into an oak. In the end, when the question will preoccupy people’s minds, I very much hope a Wilson will appear.
I am sending you the five or six latest issues of Le Libre échange. It is not very widely distributed, but I have been assured that it was not without some influence on a few of our leading men.182
It appears that this year our government will not dare to put forward a customs law that introduces significant changes into the current legislation. This is discouraging a few of our friends. As for me, I do not even want the current amendments. Down with the laws that precede the advance of public opinion! And I want not so much free trade itself as the spirit of free trade for my country. Free trade means a little more wealth; the spirit of free trade is a reform of the mind itself, that is to say, the source of all reform.
You tell me about Naples, Rome, Sardinia, and the Piedmont. But you say nothing about Tuscany. However, this region must be very curious to see. If you come across any good book on the state of this region, please try to send it to me. I would not be displeased to have a few of the oldest Italian economists, for example, Nicolò Donato, in my humble library. I think that, if fame were not somewhat capricious, Turgot and Adam Smith, while continuing to be acknowledged as great men, would lose their reputation as inventors.
Letter 79. Paris, 20 Apr. 1847. To Richard Cobden↩
SourceLetter 79. Paris, 20 Apr. 1847. To Richard Cobden (OC1, pp. 157-59) [CW1, pp. 126-29].
TextMy dear friend, your letter of the 7th, written from Rome, found me at my post. I spent three weeks with a sick relative. I hoped that this journey [127] would also restore me to health, but this has not been so. Influenza has degenerated into a stubborn cold and I am currently spitting blood.183 What astonishes and frightens me is to see how far a few drops of blood expelled from the lungs can weaken our poor bodily system, especially the head. I find it impossible to work and very probably I will be asking the council for a further leave of absence. I will take advantage of this to go to Lyons and Marseilles, to strengthen the links with our various associations, which are not as closely in agreement as I would wish.
I have no need to tell you how much I share your views on the political results of free trade. We are being accused within the democratic and socialist party of being devoted to the cult of material interests and of bringing everything down to questions of wealth. I must admit that when it concerns the masses I do not share this stoic disdain for wealth. This word does not mean having a few écus more; it means bread for those who are hungry, clothing for those who are cold, education, independence, and dignity. But after all, if the sole result of free trade were to increase public wealth I would not spend any more time on it than on any other matter relating to agriculture or industry. What I see above all in our campaigning is the opportunity to confront a few prejudices and to have a few just ideas penetrate the consciousness of the general public. This is an indirect benefit that outweighs the direct benefits of free trade a hundredfold, and if we are experiencing so many obstacles in spreading our economic argument, I believe that providence has put these obstacles in our path precisely so that the indirect benefits can be felt. If freedom were to be proclaimed tomorrow, the general public would remain in its present rut with regard to other considerations, but initially I am obliged to deal with these ancillary ideas with extreme caution so as not to upset our own colleagues. For this reason, I am concentrating my efforts on clarifying the economic problem. This will be the starting point for more advanced views. I only hope that God will allow me three or four years of strength and life! Sometimes I tell myself that if I worked alone and for my own account, I would not have to take such precautions and my career would have been more useful.
During the three weeks I was away, a few disagreements broke out within [128] our associations. These concerned the difficult shade of meaning between revenue-raising duties and protectionist duties.184 A few of our colleagues have resigned, and it so happens that these are the most industrious. They wanted to set aside the question of raising revenue, even with respect to wheat. The majority wanted total exemption for subsistence products and raw materials. This is an initial cause of dissent. There is another relating to our finances, which are far from being adequate. This is the reason why I want to travel to the Midi, but I will not leave without warning you.
I knew about the Naples reform; M. Bursotti was good enough to send me some documents on this. I gave them to Garnier, my colleague, who has doubtless lost them since he has not returned them to me. If you have the opportunity to see M. Bursotti again, please convey my good wishes and regards to him. This also applies to MM Pettiti, Scialoja, etc.
You mention the state of our newspapers, but you probably do not know the extent and depth of the problem. The art of writing is so debased that a gang of young twenty-year-olds is dictating to the entire world through the press before they have themselves studied or learned anything. But this is not the worst. The leaders are all linked to politicians and any matter becomes a ministerial question in their hands. If only God allowed the problem to stop there! There is also venality, which knows no bounds. Prejudice, errors, and calumny are priced at so much a line. One person has sold himself to the Russians, another to protectionism, a third to the university, and yet another to the banks, etc. And we call ourselves civilized! I truly believe that at the very most we have a foothold in the path of civilization.
Will you allow me, my dear friend, to acknowledge with some reservations the accuracy of this axiom, “Trade is the exchange of the superfluous for the essential”? When two men, in order to carry out more work in the same time, agree to share the work, can it be said that one of the two or even neither of the two is making a superfluous contribution? Is the poor devil who works twelve hours a day to earn his bread making a superfluous contribution? Trade, in which I believe, is no more than the separation of occupations or the division of labor.
It would be desirable for the pope185 to make his views on economics [129] known, even though he cannot carry them out. This would encourage part of the clergy in France, who are not very informed about our cause but who are not opposed to it either, to support us.
Letter 80. Paris, 5 July 1847. To Richard Cobden↩
SourceLetter 80. Paris, 5 July 1847. To Richard Cobden (OC1, pp. 159-62) [CW1, pp. 129-31].
TextMy very dear friend, the details you tell me about Italy and the state of knowledge on economics in that country were of great interest to me. I received the precious collection186 which you were good enough to send me. Alas! When will I have the time to look at them? At least I will have them available for all my friends so that, one way or another, your generous intentions will not be fruitless.
You are good enough to ask after my health. I have an almost constant cold, and if this is the case in July, what will it be like in December? But what worries me the most is the state of my brain. I do not know what has happened to the ideas which it used to produce in such abundance in the past. Now I am running after them and I cannot catch them. This worries me. I feel, dear friend, that I ought to have remained outside the association and retained the freedom to go at my own pace, to write and speak when I wished and how I wished. Instead of this, I am bound by the most indissoluble bonds by my home circumstances, the journal, finance, administration, etc., etc., and the worst of it is that this is irremediable, given that all my colleagues are otherwise occupied and can barely give their minds to our affairs during the rare meetings we have.
My friend, the ignorance and indifference in this country with regard to political economy are well beyond anything I could have imagined. This is not a reason for becoming discouraged; on the contrary, it is a reason for us to sense the usefulness and even urgency of our efforts. But I have now understood one thing, which is that free trade is a goal that is too far ahead of us. It will be fortunate if we manage to remove a few obstacles from the path to it. The greatest of these obstacles is not the protectionist party but socialism, with its many ramifications.187 If monopolists were the only adversaries, [130] they would not be able to handle the debate. However, socialism comes to their rescue. It accepts free trade in principle but postpones its implementation until the time when the world is organized in accordance with the design of Fourier or some other inventor of social order. And what is amazing is that, in order to prove that free trade would be harmful before that, they take up all the arguments put forward by monopolists, the balance of trade, the export of specie, the superiority of England, etc., etc.
This being so, you will answer that confronting the monopolists is to combat the socialists. No. Socialists have a theory of the oppressive nature of capital, which they use to explain the inequality of the condition and all the suffering of the poverty-stricken classes. They call upon the passions, sentiments, and even the best instincts of men. They attract young people, highlight the evil, and claim to have its remedy. This remedy consists of an artificial social order of their invention which will make all men equal and happy without their needing any enlightenment or virtue. Provided always that all socialists were in agreement on this social order, we might hope to shoot it down in people’s minds. But you will understand that, in this realm of ideas, and as soon as it is a question of molding a social order, each person forges his own design and each morning we are assailed by new inventions. We therefore have to combat a hydra which grows ten heads as soon as we cut off one.
The unfortunate thing is that this method is powerfully attractive to the young. They are shown suffering and through this their hearts are initially touched. Then they are told that anything can be cured through the use of a few artificial schemes, and in this way their imagination is brought into the campaign. How difficult it is for them subsequently to listen to you when you come forward to disillusion them by setting out the beautiful but severe laws of social economics and say to them: “To eradicate evil from this world (and just that part of evil over which human action has some power), the procedure takes longer; vice and ignorance have to be eradicated first.”
Being struck by the danger in the path along which the young were rushing headlong, I took the initiative of asking young people to listen to me. I gathered together students from the schools of law and medicine, i.e., the [131] young men who, in a few years’ time, will be governing the world, or France at least. They listened to me with goodwill and friendliness but, as you will readily understand, without understanding me very well. No matter; since the experiment has been started I will continue it to the end. You know that I am still considering the plan of a small work entitled Economic Harmonies. This is the positive point of view, whereas the Sophisms are negative. To prepare the ground, I distributed the Sophisms to these young people. Each one received a copy. I hope that this will unblock their minds a little, and at the end of the holidays I plan to set out the harmonies methodically.
You will now understand, my friend, what store I set by my health! Oh, may God allow me at least one year more of strength!188 May He allow me to set out to my young fellow citizens what I consider to be the true social theory in the following twelve chapters: “Needs,” “Production,” “Property,” “Competition,” “Population,” “Liberty,” “Equality,” “Responsibility,” “Solidarity,” “Fraternity,” “Unity,” and “The Role of Public Opinion,” and I will place my life in His hands without regret, indeed with joy.189
Farewell, my friend. Please thank Mrs. Cobden for her good wishes; I send you both every good wish for your happiness.
Letter 81. Paris, Aug. 1847. To Félix Coudroy↩
SourceLetter 81. Paris, Aug. 1847. To Félix Coudroy (OC1, p. 78) [CW1, pp. 131-32].
Text. . . I am sending you the latest issue of the journal. You will see that I have taken the plunge with regard to the school of law. The breach has been made. If my health stands up to it I will certainly continue and, from next November, I will be giving a course to these young people, not on pure political economy but on social economics, using this phrase in the meaning we have given it, the “Harmony of Social Laws.” Something tells me that this course, intended for young people who have logical minds and warmth in their souls, will not be totally without use. I think that I will generate conviction, and following this I will at least indicate the correct sources to them. [132] Finally, if God will allow me only one more year of strength, my time spent on earth will not have been in vain. Is it not better to have managed a journal and given a course to the young people in schools than to be a deputy?
your friend.
Letter 82. Mugron, Monday, Oct. 1847. To Horace Say↩
SourceLetter 82. Mugron, Monday, Oct. 1847. To Horace Say (OC7, p. 380) [CW1, p. 132].
Text. . . Our country is in great need of instruction in economics. Ignorance in this respect is so great that I am in great fear for the future. I fear that governments will one day bitterly repent having hidden their light under a bushel. The experience I have just gained from this journey has shown me that our books and newspapers are not enough to spread our ideas. Apart from the fact that they have very few subscribers, most of these subscribers do not read them. I have seen Le Journal des économistes still as untouched in the bookstores as the day it was published by our good friend Guillaumin, and Libre échange piled on counters still encircled by its band. Is this not discouraging? I think that oral teaching must come to the aid of written teaching. Among those who attend a session, there are always a few who conceive a desire to study the question. Committees should be organized in towns and lecturers should then be sent around constantly. But how many of these do we have who are able to devote themselves to this work? For my part, I would do it willingly if I were given a completely free hand. I am tempted to try the experiment in Bordeaux. Without this, we can do but little. . . .
Letter 83. Paris, 15 Oct. 1847. To Richard Cobden↩
SourceLetter 83. Paris, 15 Oct. 1847. To Richard Cobden (OC1, pp. 162-66) [CW1, pp. 132-35].
TextMy dear friend, I learned of your return to London in this morning’s journals with a great deal of pleasure. I have not had any news of you for so long! I hope that you will not neglect to write to me as soon as you are rested a little from your fatigue and that you will tell me about the reactions you have had to our program in northern Europe.
Here progress is very slow, where there is any progress at all. The crisis over subsistence products and the financial crisis have managed to put our doctrines in the shade. It appears that Providence is accumulating problems [133] at the start of our work and is taking pleasure in making it more difficult. Perhaps it is part of the divine plan to make success dearly bought and to allow no objection to remain unheard, in order that freedom should become part of our laws only after it has become firmly embedded in public opinion. With this in mind, I will not view the delays, difficulties, obstacles, and trials as misfortunes for our cause. By prolonging the struggle, these will enable us to clarify not only the principal issue but also a great many ancillary matters which are equally as important. Success in legislation is receding, but public opinion is maturing. I would therefore not complain if we were equal to our task. We are, however, very weak. Our militant members have been reduced to four or five stalwarts, almost all of whom are very busy in other spheres. I myself lack practical education; my type of approach, which is to examine principles, makes me unfit to debate events when they accumulate, as I should. What is more, I lose intellectual strength when my physical strength fails. If I could negotiate with nature and exchange ten years of sickly life for two years of vigor and health, the bargain would be quickly struck.
We are also encountering major obstacles from your side of the Channel. My dear Cobden, I must speak frankly to you. In adopting free trade, England has not adopted the policies which logically result from it. Will it do so? I do not doubt this, but when? That is the question. The position that you and your friends will be adopting in Parliament will have an immense influence on our undertaking. If you repudiate your diplomatic policy with energy and if you manage to reduce the size of your naval forces we will be strong. If not, what sort of figure will we cut in the eyes of the public? When we forecast that free trade will lead English policy down the path of justice, peace, economy, and colonial independence, will France be bound to take our word for it? There is an inveterate distrust of England here, which I would go so far as to call a feeling of hostility, which is as old as the very names French and English. Well then, this feeling is excusable. Its mistake is to disapprove globally of all your parties and fellow citizens. But should not nations judge each other by their external acts? It is often said that nations should not be confused with their governments. This adage is both true and false, and I dare say that it is false with regard to those peoples who have constitutional means of influencing public opinion. Bear in mind that France is not educated in economics. Whenever the French read history, therefore, and when they note the succession of invasions by England, when they study the diplomatic means which led to these invasions, when they see a centuries-old system followed assiduously whether the Whigs or the [134] Tories are at the helm of state, and when they read in your newspapers that England currently has thirty-four thousand sailors on warships, how do you expect them to trust in the strength of a principle, which incidentally they do not understand, to bring about a change in your policy? Something else is needed, namely deeds. Restore free trade to your colonies, repeal your Navigation Act,190 and above all disband your naval forces and retain only those that are essential for your security, and in so doing reduce your overheads and debts and relieve your population, cease to threaten other peoples and the freedom of the seas, and then, you may be sure, France will pay attention.
My dear Cobden, in a speech I gave in Lyons, I dared to forecast that this legislature, which has seven years more to run, would bring your political and economic systems into harmony. “Before seven years are up,” I said, “England will have reduced its army and navy by half.” Do not make me tell a lie.191 I met only with incredulity. I am being blamed for being a prophet; I am taken for a fanatic with short-term views who fails to understand British wiles. I, for my part, have confidence in two forces, the force of truth and the force of your true interests.
I do not have a detailed knowledge of what is happening in Athens and Madrid. What I can tell you is that Palmerston and Bulwer inspire universal mistrust. You will answer that if Mr. Bulwer is scheming in Madrid, M. Glucksberg192 is doing the same. So be it. But if the former is acting against the interests of France as the latter is doing against the interests of England, there is nevertheless this difference, that England boasts that it knows where its interests lie. We are still imbued with our old ideas. Is it surprising that our actions reflect this? You, on the other hand, who have shed these ideas, should now reject the acts that go with them. Repudiate Palmerston and Bulwer. Nothing would do more to place us, free traders, in an excellent position in the public’s eyes. What is more, I would like you to tell me the position you intend to take on this matter in Parliament. I will start to influence public opinion here.
[135]I must admit, my dear friend, that, although I am against any form of charlatanism, if you have a majority and are in a position to bring in a new policy in accordance with the principles of free trade, I would like you to do this with some pomp and ceremony. If you reduce your navy, I would like you to link this measure specifically to free trade and proclaim loudly that England had gone down the wrong path and that, because her current purpose is diametrically opposed to that it has pursued up to now, its means need to be the opposite as well.
I will not talk to you about wine. I see that your financial situation does not allow you to pursue major tax reform. However, is it too much to ask for a moderation in the dues which will not be harmful to your revenues? I would like it to be you personally who puts forward this proposal, and I will tell you why some other time. I have room only to assure you of my friendship.
Letter 84. Paris, 9 Nov. 1847. To Richard Cobden↩
SourceLetter 84. Paris, 9 Nov. 1847. To Richard Cobden (OC1, pp. 166-68) [CW1, pp. 135-36].
TextMy dear Cobden, I read with great interest your account of your journey and I hope to gain as much pleasure as instruction from the articles you plan to send to Le Journal des économistes.193 M. Say has already written to you about this. He is always eager to seize an opportunity to enhance this compilation which he founded and supports. Your letters are a welcome advantage to him. I urge you most sincerely to devote part of your available time to this. The cause we serve is not bounded by the borders of a nation. It is universal and will find its solution only in its acceptance by all peoples. For this reason, you can do nothing more useful than to increase the reputation and circulation of Le Journal des économistes. I am not totally satisfied with this review; I am now sorry that I did not take over its management. Philosophical argument of this sort would have suited me better than daily polemics.
The difficulties surrounding us are increasing; we do not have only vested interests against us. Public ignorance is now becoming manifest in all its sorry extent. What is more, the parties need to destroy us. Following a series [136] of circumstances which would take too long to recount here, they are all against us. All have the same goal, tyranny. They differ only on the question of knowing in whose hands the despotism will be placed. This is why the thing they fear most is a spirit of true freedom. I assure you, my dear Cobden, that, if I were twenty years younger and in good health, I would take common sense as my armor and truth for my lance, and I would be sure to win. Alas, however, the spirit cannot do anything without the body, in spite of its noble origin.
What grieves me above all, I who am so devoted to the democratic sentiment in all its universality, is to see French democracy in the vanguard of opposition to free trade. This echoes warlike ideas, an exaggerated sense of national honor and passions which seem to grow green again at each revolution; 1830 has manured194 them. You tell me that we let ourselves fall too easily into the trap set by the protectionists and that we ought to have ignored their anglophobic arguments. I think you are mistaken. Doubtless it is useful to eradicate protection, but it is even more useful to eradicate national hatred. I know my country; she has a lively attitude in which truth and falsehood are mixed. France sees an England that is capable of crushing all the world’s navies and moreover knows that it is directed by an unscrupulous oligarchy. This fact is blocking its vision and prevents France from understanding free trade. I would go even further and say that even were she to understand it, she would want none of it for its purely economic benefits. What we need to show France above all is that free trade would cause the military dangers she fears to disappear. For my part I would prefer to fight on for a few years more and overcome national prejudice as well as economic ones. I am not worried that the protectionists have selected this field of battle. My intention is to publish in our journal the debates held in Parliament and in particular the speeches by free traders.
The 15th.
My friend, I will not hide from you that I am terrified by the vacuum that is forming around us. Our opponents are full of daring and ardor. Our friends, on the other hand, are becoming discouraged and losing interest. What good is it to be right a thousandfold if we cannot make ourselves heard? The protectionists’ tactics, greatly supported by the newspapers, are to let us be right all on our own.
Letter 85. Paris, 5 Jan. 1848. To Félix Coudroy↩
SourceLetter 85. Paris, 5 Jan. 1848. To Félix Coudroy (OC1, pp. 78-79) [CW1, p. 137].
TextMy dear Félix, while writing to Domenger, I am taking advantage of the opportunity just to wish you a better year than the previous ones.
I am ashamed to publish the second volume of my Sophisms; it is just a ragbag of what has already been printed in journals. A third volume will be needed to lift me up; I have material in rough form for it.195
However, I would much more like to publish the course I am giving to young students in the schools.196 Unfortunately, I have the time only to jot a few notes down on paper. This infuriates me, since I can tell you, and you know this already, that we see political economy from a slightly new angle. Something tells me that it can be simplified and more closely linked to politics and moral values.
Farewell; I must leave you as I am reduced to counting each minute.
Letter 86. Paris, 17 Jan. 1848. To Madame Schwabe↩
SourceLetter 86. Paris, 17 Jan. 1848. To Madame Schwabe (OC7, p. 420) [CW1, p. 137].
TextI am very pleased to learn that Mr. Schwabe has had a pleasant journey and that he found the situation in England improving.
Thank you for having thought of sending me Punch. Perhaps I will find something in it for Le Libre échange, after which I will pass it on to M. Anisson or will bring it back to you myself.
I enclose five copies of the last issue of Le Libre échange. I wrote the first article on armaments in the hope that it may have some influence in England. I am very pleased to learn therefore that you will be ensuring that it gets there.
Letter 87. Paris, 24 Jan. 1848. To Félix Coudroy↩
SourceLetter 87. Paris, 24 Jan. 1848. To Félix Coudroy (OC1, p. 79) [CW1, p. 138].
TextI can write you a few words only as I am suffering from the same illness I had in Mugron and which, among other disagreeable characteristics, has deprived me of all my strength. It is impossible for me to think, let alone write.
My friend, I would have liked to discuss our campaign with you but I am not capable of this. I am not at all happy with our journal; it is weak and anemic like anything that comes out of an association. I am going to ask for total power, but alas, I will not be given health with power.
I am not receiving Le Mémorial197 (from Bordeaux), and consequently I have not seen your article “Anglophobia.”198 I am sorry about this. I might perhaps have drawn a few ideas from it, or we might have reprinted it.
Letter 88. Paris, 27 Jan. 1848. To Madame Schwabe↩
SourceLetter 88. Paris, 27 Jan. 1848. To Madame Schwabe (OC7, pp. 420-21) [CW1, p. 138].
TextPlease receive the homage of a small volume which I have just had published. It is not a weighty work; it just contains some of the trifles that have already appeared in journals. I have been assured that this superficial format is useful in its way, and this is what has decided me to continue down this path which is not at all to my taste.199
Letter 89. Paris, 13 Feb. 1848. To Félix Coudroy↩
SourceLetter 89. Paris, 13 Feb. 1848. To Félix Coudroy (OC1, pp. 79-80) [CW1, pp. 138-39].
TextMy dear Félix, I have had no news of you and do not know how your trial is going. I presume that the decree has not been issued, since you would have told me if it had. Please God that the court is properly inspired! The more I think about this matter, the more I think that the judges cannot make conjectures against common law; if this is in doubt, the eternal law of justice (and even the Code) should take precedence.
Politics are stifling our program somewhat. Besides, there is a very flagrant [139] conspiracy of silence which began with our journal.200 If I could have foreseen this, I would not have founded it. Reasons of health have obliged me to give up the management of this broadsheet. It must be added that I did not take pleasure in my involvement in view of the small number of our readers, and the divergence of political opinions of our colleagues did not allow me to stamp a sufficiently democratic management style on the journal; the finest aspects of the question had to be kept in the dark.
If there had been a greater number of subscribers, I would have been able to make this broadsheet my own property, but the state of public opinion stands in the way of this, and in addition my health is an invincible obstacle. Now I will be able to work with a little more latitude.
I am continuing to give my course to law students. My audience is not very numerous but its members come regularly and take notes; the grain is falling on fertile ground. I would have liked to have been able to write up this course, but I will probably leave only confused notes.
Farewell, my dear Félix. Write to me, tell me how your affairs and health are doing; it is not out of the question that I will come and see you before too long. Please remember me with affection to your good sister.
Letter 90. Paris, 16 Feb. 1848. To Madame Schwabe↩
SourceLetter 90. Paris, 16 Feb. 1848. To Madame Schwabe (OC7, p. 421) [CW1, p. 139].
TextI am very grateful for all the kindnesses you shower on me. I have received your excellent syrups which have succeeded in curing me. I therefore hope to go to a concert this evening, but rather late as I am dining with M. de Lamartine, and you will understand what it costs to abandon the music of his words even for that of Chopin. However, as the concert starts late, I will tear myself away from the charming conversation of our great poet.
Endnotes to the LettersIn English in the original.
An English newspaper. See “Anglomania, Anglophobia,” p. 333.
For what became Cobden and the League.
Bastiat means those students of economic science who favor free markets (Les Économistes).
See this letter, note 59.
Dunoyer, “Du système de l’equilibre des puissances européennes.”
Comte, “Considérations sur l’état moral de la nation française”; and Comte, “De l’organisation sociale.”
In the hiatus between the forced closure of Le Censeur by the censors in 1815 and its reopening in 1817 under the name Le Censeur européen, Comte and Dunoyer discovered the work of Jean-Baptiste Say, which transformed their view of how societies functioned and the future course of their progress under the impulse of “industrialism.” Bastiat was to adopt much of their social and economic theory as his own.
Bastiat uses the expression l’école économiste to refer to adherents of the free market, or the laissez-faire, school of economic thought (Les Économistes). It is worth noting that, in Bastiat’s time, economist was systematically understood as “liberal economist.”
Cobden and the League.
This letter was written in November 1844. The next article by Bastiat to appear in Le Journal des économistes was titled “Letter from an Economist to M. de Lamartine, on the Occasion of His Article Entitled ‘The Right to Work.’ ” (OC, vol. 1, p. 406, “Un Économiste à M. de Lamartine.”)
Institut de France.
Dunoyer, De la liberté du travail.
Probably a reference to the first two articles Bastiat had published in Le Journal des économistes on British and French tariffs and on Lamartine. (OC, vol. 1, p. 331, “De l’influence des tariffs français et anglais sur l’avenir des deux peuples” and “Un Économiste à M. de Lamartine.”)
(Paillottet’s note) The letter to which Bastiat is replying had been sent to him in connection with the article in Le Journal des économistes entitled “From an Economist to M. de Lamartine.” [OC, vol. 1, p. 406, “Un Économiste à M. de Lamartine.”]
Le Journal des économistes. (OC, vol. 1, p. 406, “Un Économiste à M. de Lamartine.”)
Newspapers from, respectively, the Landes, Bayonne, and the Pyrenees, which published articles by Bastiat. For the latter, see the glossary of subjects: Le Mémorial bordelais.
Economic Sophisms.
Le Journal des débats. Bastiat is referring to a review he wrote in that journal, “Sur l’ouvrage de M. Dunoyer. De la liberté du travail.” (OC, vol. 1, p. 428, “Sur un livre de M. Dunoyer.”)
The attorney general, Charles Dupin, modified the French legislation concerning dueling in order to reduce the number of fatalities. The law was in effect from 1837 to 1839. See also “Reflection on the Question of Dueling,” note 3, pp. 309-10.
Cobden and the League.
Ibid.
The sheets (“feuilles” in French) are printer’s sheets, which cover several pages.
Bastiat is referring to the introduction of Cobden and the League.
No book with such a title was published by Bastiat. The title was later changed to Economic Harmonies (see note 189, p. 131, and note 336, p. 251).
Cobden and the League.
No month given.
Antoine Destutt de Tracy.
Ireland had 5.2 million inhabitants in 1801, 8.2 million in 1841—an increase of 58 percent in forty years, in spite of two million emigrants. The misery was due not to an excessive population increase but to the fact that an Ireland living mainly on potatoes found one-third of the harvest destroyed by blight in 1845 and the entire harvest destroyed in 1846.
Comte, Traité de législation.
Comte, Traité de la propriété.
Economic Sophisms.
Apart from conferences and private education, political economy was taught only in the Conservatoire national des arts et métiers, by Auguste Blanqui, and at the Collège de France, by Michel Chevalier.
Conservatoire national des arts et métiers.
In English in the original.
See “Anglomania, Anglophobia,” p. 320.
In English in the original.
Hyppolite Passy.
The German Zollverein (or customs union) was created in 1833 and based on the low Prussian tariff.
A Spanish translation of Cobden and the League appeared quickly: Cobden y la Liga: La agitación inglesa en favor de la libertad de comercio, translated by Elias Bautista y Muñoz (Madrid: Grabado de Don Baltasar González, 1847).
(Paillottet’s note) I think that I should have no scruple in revealing the name of M. de Langsdorf publicly now. What criticism could he encounter now for secret sympathies expressed in favor of free trade nineteen years ago?
Fonteyraud and Garnier, Mélanges d’économie politique.
Bastiat refers to two Wilsons in his correspondence. Here, Bastiat is most likely referring to George Wilson.
Marie Gustave Larnac. See “On Parliamentary Reform,” p. 367.
OC, vol. 1, p. 387, “De l’avenir du commerce des vins entre la France et la Grande-Bretagne.”
The tariff of 1842 was heavier than that of 1832. It was reduced in 1846.
Les Économistes.
The only Potonié that the editor could find is D. Potonié, who wrote Note sur l’organisation facultative des débouchés de l’industrie parisienne.
“The Articles of Paris” industry covered a wide range of luxury items, from leather goods to jewelry and fashion. They exported quite well.
(Paillottet’s note) The death of a relative.
John Benjamin Smith.
In English in the original.
The parts of this paragraph in quotation marks are in English in the original.
Vice president of the Board of Trade.
Justice of the peace in the county of Mugron.
At the 13 December 1838 meeting, the president of the chamber of commerce, Mr. Wood, criticized the Corn Laws but wanted to let the Whig government of John Russell modify them. Instead, Cobden was in favor of a total and immediate repeal.
Discussion of the Corn Bill in the Commons.
OC, vol. 7, p. 30, “Projet de ligue anti-protectioniste” and the following two essays.
Cobden’s address (to a banquet held in his honor) can be found in Annales de la Société, vol. 1, 1846-53.
See Letter 47, note 105.
Cobden and the League.
The sale price of Cobden and the League was 7.5 francs; Economic Sophisms was 4 francs.
In 1818, under the “Indivision Treaty,” in Oregon, British and American citizens had the same hunting, fishing, navigation, and circulation rights. The treaty was renewed in 1827 and canceled in 1846.
Martin Duffour-Dubergier.
It raised fifty-six thousand francs.
Articles published in Le Mémorial bordelais of 8, 9, 10, and 11 February.
Eugène de Monclar.
Le Mémorial bordelais.
Institut de France.
In English in the original.
Le Mémorial bordelais.
To Cobden and the League.
Bastiat is referring affectionately to the Chalosse region of the Landes.
Institut de France.
An extra tax levied on goods imported into France on foreign ships.
Free-trade associations were effectively established in Marseilles (17 September 1846), Lyons (13 October 1846), and Le Havre (28 November 1846).
Socrates (469-399 b.c.e.).
Bastiat is referring to Cobden’s articles “Lettre à la Société des économistes de Paris,” vol. 14, 1846; and “Discours au banquet de cette société,” vol. 15, 1846.
In English in the original.
Le Journal des débats.
Jean-Pierre Lacave-Laplagne.
“From scratch.”
No association of more than twenty persons could be formed without prior authorization from the government.
Le Mémorial bordelais.
Economic Sophisms.
The first English translation was Popular Fallacies Regarding General Interests. Being a Translation of the Sophismes économiques, by M. Frédéric Bastiat, with notes by G. R. Porter (London: J. Murray, 1846). Also appearing was an American edition: Sophisms of the Protective Policy, translated from the second French edition by Mrs. D. J. McCord, with an introductory letter by Dr. Francis Lieber (New York: Geo. P. Putnam; Charleston, S.C., 1848). An Italian edition also quickly appeared: Sofismi economici, translated by Antonio Contrucci (Florence: C. P. Onesti, 1847).
Opera buffa, or comic opera.
In English in the original.
Laws restricting liberties promulgated in September 1835, following an attempted assassination of Louis-Philippe.
“Opposites are balanced by opposites.”
Cobden had severe financial difficulties in 1845 that continued into 1846, the result of his increased activities with the Anti-Corn Law League and subsequent neglect of his family business. His friends and colleagues organized a public fund-raising campaign, which enabled him to pay off most of his debts. Most likely Bastiat is here referring to this campaign.
See Letter 67.
The letter to M. Duchâtel, minister of the interior, was published on 30 June 1846 by Le Mémorial bordelais. The authorization was granted in July.
Le Mémorial bordelais.
See “To the Electors of the District of Saint-Sever,” p. 352.
Town in the département of Lot et Garonne.
In English in the original.
In English in the original.
Before the postal reform of 1848, the price of mail depended on distance and was paid by the recipient. The surety was a deposit that the editor of a periodical had to make to provide for any future fine.
After the dissolution of the League, Cobden undertook a tour around Europe, traveling to France, Spain, Italy, Prussia, and Russia. From Bordeaux, he went to Spain through the Landes and the Pyrenees.
All these areas, which produced wines and spirits, were handicapped by difficult communications with Bayonne and tariffs.
Louis Léonard de Loménie, writer and professor of literature.
“The grumbling tribe.”
OC, vol. 2, p. 238, “Second discours, à Paris.”
“There is no cure.”
The second public meeting of the Association pour la liberté des échanges.
Bastiat wrote three letters in Le Havre which were published in Le Mémorial bordelais. (OC, vol. 7, p. 131, “Aux négociants du Havre.”)
Marriage of the young queen of Spain, Isabella II. Palmerston pushed for a candidate favored by the English, Leopold of Saxe-Coburg; and Guizot, for a son of Louis-Philippe. But the queen preferred her cousin Francisco.
Le Courrier français.
Bastiat’s journal, on the verge of publication.
In English in the original.
In English in the original.
Opera buffa, or comic opera.
Opera seria, or serious opera.
William Pitt the Younger.
At the fourth meeting of the Association pour la liberté des échanges.
This speech was never made.
In English in the original.
In English in the original.
After the Vienna Congress of 1815, Krakow had been a free town under the joint protection of Prussia, Russia, and Austria. Following an upheaval in 1846, Krakow was invaded by troops of the three countries and annexed to the Austrian empire. France and England protested in the name of the 1815 treaty.
“O countryside! When shall I look upon you!”
Famous cemetery in Paris.
Le Libre échange.
“Our native country is friendly but truth is more friendly.”
In English in the original.
In English in the original.
This is the first explicit reference to the disease that eventually killed Bastiat. His coughing up of blood suggests that he was suffering from tuberculosis or consumption. In his last letters he also mentions a painful larynx, which might have been a symptom of throat cancer.
In the absence of an income tax, state revenue in the nineteenth century largely depended on indirect taxes and import duties. Revenue-raising duties would be a low rate of tax applied to all goods. Protectionist duties would be much higher and applied only to those goods that would protect domestic vested interests.
Pius IX.
Bastiat is referring to the fifty-volume collection Economisti classici italiani, which contained works by many authors, including Cesare Beccaria, 1738-94; Gaetano Filangieri, 1752-88; Ferdinando Galiani, 1728-87; and Pietro Verri, 1728-97.
Socialism became an organized intellectual and political movement during the 1840s in France. It had a number of different schools of thought: the Fourrierists, the followers of the anarchist Proudhon, and the Saint-Simonians. They were a major target for the classical liberals, especially given their influence in the 1848 revolutions. See the long article, with accompanying bibliography, Reybaudin, “Socialistes, socialisme,” in vol. 2 of Dictionnaire de l’économie politique, pp. 629-41.
Bastiat was aware that he did not have long to live and worried that he would not finish his book Economic Harmonies (he did not). He had in fact another two years and five months to live when he wrote this letter.
The final structure of the book (unfinished after his death but edited by Paillottet) contained twenty-five chapters. A first volume was published during Bastiat’s lifetime, and it contained only ten chapters.
The Navigation Act was repealed in 1849 by the cabinet of John Russell.
Of course, this prediction did not come true. A couple of years after his death the Crimean War broke out (1854-56), and by the end of the century Britain had the largest navy and the most extensive empire in the world.
Louis Charles Decazes.
Le Journal des économistes lists many speeches and letters by Cobden in the general table of contents for the years 1841-65.
In English in the original.
Two series of the Sophisms were published (as Economic Sophisms), but a third never appeared.
The notes Bastiat refers to have not survived, but his address “To the Youth of France” (OC, vol. 6, p. 1, “À la jeunesse française”), which prefaces Economic Harmonies, might give some idea of what he said to the students in his course.
Le Mémorial bordelais.
Bastiat himself wrote an essay called “Anglomania, Anglophobia.” See p. 320.
(Paillottet’s note) This refers to the second series of Economic Sophisms.
Le libre échange.
Articles and Essays↩
Bastiat's Writings November 1844 through 1845
T.21 (1845.??) "Other Questions submitted to the General Councils of Agriculture, Manufactures, and Commerce, in 1845"↩
SourceT.21 (1845.??) "Other Questions submitted to the General Councils of Agriculture, Manufactures, and Commerce, in 1845" (D'autres questions soumises aux conseils généraux de l'agriculture, des manufactures et du commerce, en 1845). No publishing information given. [OC7.5, pp. 20-29.] [CW6]
Text(insert HTML of file here)
T.22 (1845.??) "The Elections. A Dialog between a deep-thinking Supporter and a Countryman"↩
SourceT.22 (1845.??) "The Elections. A Dialog between a deep-thinking Supporter and a Countryman" (Les élections. Dialogue entre un profond Publiciste et un Campagnard). No date given, but mentions King and Chamber of Peers so pre-Feb. 1848; calls this a "sophism" so possibly 1845 when he began writing sophisms in earnest. [OC7.68, pp. 280-88.] [CW1.2.3.2, p. 404-9.]
TextDialogue Between a Convinced Political Writer and a Countryman
At long last you are going to benefit for the first time from one of the finest outcomes of the Revolution. You are going to assume a part of sovereignty itself; you are about to exercise one of the greatest of human rights.
I am quite simply going to give my vote to the man I believe most capable of managing the portion of my affairs that is common to all Frenchmen.
No doubt. But this is to view the case from the most trivial point of view. No matter. I am assuming that you have given consideration to the solemn act you have come to carry out.
It seems to me to be so simple that I did not think I needed to devote much time to considering it.
Is that what you think? Is it a simple matter to vote for a legislator? You clearly do not know how complicated our foreign policy is, how many mistakes our government has made, how many factions seek in a variety of ways to lead it astray. Selecting from among the candidates the man most able to grasp so many complexities, to reflect on the many laws we lack, and to distinguish the most patriotic of the parties in order to have it triumph over the others is not as easy a task as you might believe.
Fine. However, I have neither the time nor the capacity necessary for examining so many things.
In that case, defer to those who have considered them. Come and dine with me at General B.’s house and I will tell you for whom you should cast your vote.
I beg to accept neither your offers nor your advice. I have heard it said that General B. is standing for office. I cannot accept his dinner as I am firmly resolved not to vote for him.
That is very odd. Here, take this leaflet on M. B. . . . It is biographical. You will see how much he deserves your vote. He is a commoner like you. He owes his success solely to his bravery and his sword. He has rendered exceptional service to France. It is up to Frenchmen to reward him for this.
I do not query this. If he has rendered genuine service to France, let France give him medals, or even a pension. However, I do not see that I have to give him a mandate for matters for which I consider him to be unsuitable.
The general not suited to attend to matters! He who has commanded army battalions, has governed provinces, has a profound knowledge of the politics of all the cabinets, and who is as eloquent as Demosthenes!
All the more reason I should not vote for him. The greater his capacity, the more he is to be feared by me, as I am convinced that he would use it against my interests.
Are not your interests those of your country?
Probably. But they are not those of the general.
Explain yourself. I do not understand you at all.
There is no difficulty about my explaining myself. As a farmer, I belong to the peaceful laboring class and I propose to have myself represented by a peaceful working man and not by a man whose career and habits have projected him toward power and war.
The general insists that he will defend the cause of agriculture and industry.
Fine, but when I do not know people, their word is not enough for me. I need a more solid guarantee.
What sort of guarantee?
Their material interests. If I vote for a man who is a farmer and taxpayer like me, I will be sure that he will defend my interests in defending his.
The general is a landowner like you. Do you think he will make a sacrifice of ownership to power?
A general is above all a soldier. His interests as a taxpayer cannot be equated with his interests as a tax beneficiary.
And when this happens, is not his devotion to his country well known? Is he not a child of the Revolution? He who has shed his blood for France, will he betray her for a handful of gold?
I admit that the general may be a perfectly honest man. But I cannot believe that a man who has done nothing in his life other than command and obey, who has risen only through the political stairway, and who has become rich only by way of taxes paid by others can perfectly represent a taxpayer. I think it absurd that when I find government overbearing I should vote for a man who is part of it, that when I find taxes too burdensome I should entrust the duty of reducing them to a man who lives off them. The general may have a great deal of self-denial, [407] but I do not want to take the risk of testing this. In short, you are asking me to commit an absurdity which I am not prepared to do.
A Country Elector, a Parish Priest
Well, my friend, you have given me great satisfaction. I have been assured that you have nobly refused to give your vote to the candidate of the liberal faction. You have shown good sense in doing this. Is it possible that when the monarchy is in danger, when religion in distress stretches out its suppliant hands to you, you would agree to give new strength to the enemies of religion and the king?
Pardon me, Father, but if I refused to vote for the general, it was not because I considered him to be an enemy of religion or of the king. On the contrary, it is because I was convinced that his position did not allow him to maintain a just balance between the means of the taxpayers and the needs of government.
Your motives are not important. What is certain is that you were right to distrust the ambition of this man.
You do not understand me, Father. I am not passing judgment on the character of the general. I merely say that I consider it risky to entrust my interests to a man who could not defend them without sacrificing his own. This is a risk that no reasonable man would needlessly run.
I repeat that I am not scrutinizing your motives. You have just given proof of your devotion to the king. Well, finish your work. You have driven away an enemy and that is well worthwhile. However, it is not enough. Give the king a friend. He himself has designated him; vote for the worthy president of the college.
I think I would be committing an even greater absurdity. The king has the power of initiative and sanction with regard to the laws; he appoints the Chamber of Peers.3 Since the laws are made for the nation, he wanted the nation to contribute to making them, and so why then should I go on to vote for those whom the government [408] designates? The result would be an absolute monarchy behind a constitutional facade.
Do you suppose, then, that the king would abuse his position and make bad laws?
Listen, Father, let us speak of things in their true light. The king does not personally know the 450 candidates he designates; it is the ministers who in fact submit them to our vote. Now the government’s interest lies in increasing its power and wealth. However, it can increase its power only at the expense of my liberty and its wealth at the expense of my purse. If I wish to prevent it from doing this, therefore, I have to vote for a deputy who is a taxpayer like me, who will supervise it and set limits to its encroachments.
In other words a deputy from the opposition?
None other. Between one who lives off taxes and one who pays them, the opposition appears to be natural to me. When I buy something, I endeavor to buy it cheaply, but when I sell I set the highest price on my goods. Between the buyer and seller there is inevitably some dispute. If I wanted to have a cart at cost price, would I give a mandate to the maker to set it?
Such a political outlook is small-minded and self-regarding. The issues are reduced to buying and selling, prices and producers. What nonsense! I am talking about the king, his dynasty, the peace of nations, and the upholding of our holy religion.
Indeed, and I still maintain my opinion that it is a matter of selling and prices. Government is constituted by men, and the clergy is also made up of men who form a body. Government and clergy are two bodies made up of men. Now, it is in the nature of all bodies to endeavor to expand. Taxpayers would be mad if they did not also form a body to defend themselves against the expansion of government and the clergy.
Wretched fellow! And if this latter body triumphs would you destroy the monarchy and religion? Goodness me, what is the world coming to!
Do not worry, Father! The people would never destroy government, because they need it. They would never overthrow [409] religion because it is indispensable to them. They would simply contain both within the limits which they cannot exceed without endangering everyone.
In the same way as I covered my house with a roof to shelter myself from the sun and rain, I want to pay magistrates and police officers to protect me from wrongdoers. In the same way as I willingly engage a doctor to care for my body, I would engage a minister of religion to care for my soul. But also, in the same way as I ensure that my roof is built as economically and sturdily as possible and discuss the cost of the payment with my doctor, I want to discuss the cost of their services with the clergy and government since, thank God, I have the ability to do this. And when I cannot do this myself, you would surely agree, Father, that I should mandate a man who has the same interests as I and not someone who belongs, whether directly or indirectly, to the clergy or established government.
A Country Elector, a Constitutional Candidate
I do not think I have arrived too late to ask for your vote, sir, since I am convinced that you have not decided to give it to those who have preceded me. I have two opponents whose talent I acknowledge and whose personal character I honor but who, because of their position, I do not consider to be your natural representatives. I am a taxpayer like you; like you I belong not to the class that exercises power but that over which power is exercised. I am deeply convinced that what currently undermines order, liberty, and prosperity in France is the extravagant dimensions of government. Not only do my opinions make it a duty for me but my interests require me to make every effort to set limits to this terrifying expansion of the actions of government. I therefore consider that I would be useful to the cause of taxpayers if I joined their ranks; and if you share my ideas, I hope you will give me your vote.
I am firmly resolved to do so. I share your opinions and your interests are a guarantee to me that you will act according to your opinions, and you may count on my vote.
EndnotesThere existed a Chamber of Peers in France between 1814 and 1848. It had the same role as the English House of Lords.
T.23 "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job" (Feb. 1845, JDE)↩
[CW4 draft 16 June, 2017] SourceT.23 (1845.01.15) "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to a Job " (Un économiste à M. de Lamartine. A l'occasion de son écrit intitulé: Du Droit au travail ), JDE , February 1845, T. 10, no. 39, pp. 209-223. [OC1.9, pp. 406-28] [CW4]
Editor's IntroductionThe Economists sometimes didn't know what to make of Alphonse Lamartine (1790-1869), 297 the Romantic poet from the lower ranks of the French aristocracy who had burst onto the literary scene in 1820 with his collection of poems Méditations poétiques , who later turned into a reformist, liberal politician during the July Monarchy with his call for the separation of church and state, his support for freedom of the press, the expansion of the voting franchise, and the abolition of the death penalty and of slavery, and his opposition to the building of new fortifications around Paris in the early 1840s. 298 However, they also opposed his advocacy of state regulation of the railways, government regulation of workers' wages and working conditions, and his sometimes lukewarm support for free trade. Bastiat's younger friend and colleague, Gustave de Molinari, was typical of many of the Parisian economists in his enthusiasm for Lamartine's work and their hopes for his support in future political battles for liberal reforms. Molinari wrote his very first book, a"political biography" of Lamartine, shortly after arriving in Paris. 299
Lamartine could have been crucial to advancing the the economists's cause when the February Revolution broke out and Lamartine thrust his way forward to take charge of the new Provisional Government if it weren't for his toleration and perhaps open support for state funded welfare programs such as "the right to work" (or right to a job) which were anathema to the economists. His sympathy for the idea made it possible for Louis Blanc to set up the National Workshops in the Luxembourg Palace in the first week of the revolution, and to extend the program to the point where it nearly bankrupted the French state, forcing the Assembly to cancel it in June, thus leading to the June Days rioting in protest and the killing and arrest of thousands of people. Bastiat became one of the National Workshops' harshest and most persistent critiques throughout the first half of 1848 from his position as Vice-President of the Assembly's Finance Committee. The origins of this opposition by Bastiat lay in this essay which he wrote in January 1845 to combat an article Lamartine had written the month before.
In spite of the harsh things Bastiat had to say to Lamartine in this essay, they later became good friends, sometimes sharing the stage at the large public meetings organised by the French Free Trade Association during the campaign of 1846-47. 300 They had become close enough for Lamartine to indicate to Bastiat that he might offer him a job in the Provisional Government which came to power on 24 February 1848:
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." 301
Bastiat turned it down, apparently finding the jockeying for power distasteful and believing he could be more influential in the Finance Committee of the Chamber. As he related to his friend Félix Coudroy "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!" 302 What frustrated Bastiat was the fact that Lamartine could support free trade on one hand but also find sympathy for the socialist criticism of wage labour on the other. Part of the purpose of this letter was to point this contradiction out to Lamartine.
Lamartine by 1844 had come under the influence of socialist ideas which were being actively promoted in France. Beginning in the late 1830s socialists like Proudhon, 303 Victor Considerant, 304 and Louis Blanc, 305 had increased their criticism of key aspects of the free market such as the right to own private property, the legitimacy of charging interest and rent, making profits on economic activity, and the organisation of work by means of wage labour. The most influential works were by the Fourier socialist Victor Prosper Considerant (1808-93) with the Théorie du droit de propriété et du droit au travail (A Theory of the Right to Property and the Right to Work) (1839) 306 and the journalist and historian Louis Blanc (1811-82) in L'Organisation du travail (The Organisation of Labour) (1839), 307 both of which were reprinted many times throughout the 1840s and during the Revolution. They argued that wage labour exploited the workers by not paying them the full value of their labour and by making them redundant in hard economic times. To counter this, they argued that workers should be guaranteed their jobs by the state, which should also employ unemployed workers in economic down turns, and by creating new forms of labour organisation in which workers were not paid by wages set by employers at market rates but by sharing amongst all workers the fruits of their labours. The slogans which the socialists popularised were "le droit au travail" (the right to work, or the right to a job) and the "organisation of work" in worker controlled "social" or "national workshops."
Lamartine was a liberal in that he didn't believe the state should interfere in the "la liberté des transactions entre le capital et le salaire" (freedom of transactions between capital and labour) or in free trade, but he was an interventionist when it came to the state looking after the welfare of workers. He thought that "le plus essentiel et le plus beau de ses titres, le titre de Providence du peuple" (the most essential and most beautiful of (the state's) functions was that of the Providential (supporter) of the people) and that from time to time "doit agir avec sa tutelle active et bienfaisante en ce qui touche le travail et le salaire des masses" (it must use its active and charitable tutelage in matters which concern the labour and wages of the masses). He denounced the policy of laissez-faire very strongly as the "axiome brutal du système anglais, toutes les fois du moins que le laissez faire et laissez passer veut dire laissez souffrir et laissez mourir " (the brutal principle of the English system, (where) at all times it means nothing less than "let people suffer" and "let people die."). 308
The Economists, on the other hand, defended the idea of "le droit du travail" which is a distinction which turns on French grammar. They distinguished between two different types of "rights" and "liberties" which is clearer in the original French. They distinguished between "le droit de faire quelque chose" (the right to do something) and "le droit à quelque chose" (the right to have something). In the case of "travail" (work or labour) the socialists advocated "le droit au travail" (the right of a worker to a job, especially one guaranteed by the government) whereas the Economists advocated "le droit du travail" or "la liberté du travail" (the right or the freedom of working, or of anybody to engage in work of some kind). The key difference in French is between the use of a noun (le travail) and a verb (travailler). 309
The economists began to counter the socialists' critique in the mid-1840s with a series of works such as Michel Chevalier's long critique of Blanc in the Journal des Debats in August 1844 310 and then the large three volume work by Charles Dunoyer De la liberté du travail (March 1845). 311 What took them by surprise was Lamartine joining the socialists with his article in favour of "the right to work" which he published in his magazine Le Bien Public (The Public Good) in December 1844 on "The Right to Work and the Organisation of Labour" 312 just before the appearance of Dunoyer's book (completed in January 1845 and published probably in March).
Bastiat dons the "economists' hat" to formally reply to Lamartine on behalf of the Journal des Économistes , which is rather odd as he had only recently emerged from the obscurity of Les Landes and had published his first article in JDE only the previous October. 313 He had not yet gone to Paris to be welcomed by the Political Economy Society - that was to come in May 1845. Yet the task fell to Bastiat to take on Lamartine, which suggests how rapidly his star was rising among the ranks of the economists at this time. He provided a similar service in October 1846 with another letter to Lamartine, this time opposing his call for greater regulation of the grain trade during the shortages and high prices caused by the poor harvests in 1846-47. 314 Both of Lamartine's articles dismayed the economists, as is clear from Bastiat's comments in this article. It would not be going to far to say that they felt betrayed by someone they thought was their colleague and political ally in the struggle against both the Monarchy and the socialists. In fact, Bastiat in his second letter to Lamartine in October 1846 calls him "our favorite poet" but demotes him to the past tense as a result of his current views. Bastiat points out how liberal Lamartine was on other matters and how his support for the socialists on this issue contradicts his other positions on things like free trade and reducing the size of government by strictly limiting its power. He also points out that there are two distinct schools of political economy: the one supported by the economists in the Guillaumin network, the liberal or laissez-faire school which is based upon individual liberty and the natural laws which govern all economic activity. The other is the school of arbitrary or despotic government which is based upon coercion by the state and is supported by the socialists and other interventionists who believe that the natural laws of the economy can be ignored by those who wish to create new and "artificial" organisations within society to achieve their social goals. 315 Bastiat not only criticises Lamartine's views because he thinks they are wrong, but also because he thinks he has used his great moral authority as a poet and political reformer to mislead the younger generation who hang on his every word, perhaps as he himself had done when he first read Lamartine's poetry in the 1820s:
I am sorry to have to say this frankly, Sir, but I believe that you have done a disastrous thing and one likely to misdirect the first steps of a young generation full of confidence in the authority of your words, when, dispensing criticism and praise indiscriminately, you violently attacked the most conscientious and in a practical sense Christian school, that has ever come onto the scene of the moral sciences… 316
Another criticism of the socialists which was taken up by Lamartine was their accusation that the economists were "heartless" Malthusians in their contempt for the suffering of the poor. Bastiat himself had began as a strict Malthusian, 317 like the other economists, and we see his first forays in exploring the economic impact of population growth on the well-being of ordinary people in a memorandum he wrote while serving on the General Council of Les Landes on the shifting burden of the land tax on different economic groups earlier that year, 318 and then again in 1846 with another memorandum "On the Bordeaux to Bayonne Railway Line" (May, 1846) 319 and two articles in the JDE on "Thoughts on Share Cropping" (Feb., 1846) and "On Population" (Oct. 1846). 320 The criticisms of the socialists made Bastiat think more deeply about this problem during 1844-46 as these writings show, so that by the time the chapter on population appeared in the posthumous edition of Economic Harmonies (1851) he had radically rethought the problem of population growth. 321 His conclusion was that Malthus and the Malthusians had made several mistakes: they badly underestimated the productive power of a deregulated market economy and international free trade to supply the food needed by ordinary people at prices they could afford, or what he called, borrowing a phrase from Lamartine in fact, "la vie à bon marché" (life at affordable or low prices); they also underestimated the ability of ordinary people, as rational actors, to plan the timing and the size of their families; 322 they did not understand that the higher density of population made possible by urban living lowered the costs of making profitable trades with others and deepened the division of labour which increased productivity; and finally, he had an early notion of human capital which meant that individuals should be be seen as valuable resources in their own right who were able to provide "services" to others and not as a net drain on the economy. Thus this article is an indicator of his changing thoughts on this important topic.
It is also worth noting that in the course of his critique of Lamartine Bastiat refers to several theoretical issues, many for the first time in his writing, which were to become very important to him later on. This suggest that he had been thinking about them for some time and this letter was his first opportunity to bring his scattered thoughts into a more coherent whole. Or perhaps, it might even have been a way to show off, as it were, in front of an audience of other economists his deep knowledge of and innovative thinking about economic theory. These key concepts include the following:
- society as a mechanism "(un mécanique sociale) with its own internal "driving force" (moteur) which did not require an external "mechanic" to make it operate effectively and justly. Here is his first use of the expression which is discussed in more detail in "Natural and Artificial Organisatons" (Jan. 1848). 323
- the distinction between "la charité volontaire" (voluntary charity) and "la charité légale ou forcée" (coerced or government charity).
- a couple of very early uses of the idea of harmony, namely "l'harmonie du monde social" (the harmony of the social world) and the idea that a voluntary activity like charity is an "élément harmonique dans le jeu des lois sociales" (harmonious element in the interplay of social laws). According to Bastiat, a providentially guided "harmony" of interests existed in society in the absence of coercion which meant that there is no inherent reason why the diverse needs and interests of individuals, whether consumers or producers, should be in conflict with each if they have their property rights and liberty respected under the rule of law, and if they are free to trade voluntarily with one another (or not as the case may be). 324
- his first pairing of the concepts of "l'harmonie" (harmony) and its opposite "dissonance" (disharmony).
- related to this, is his first use of the idea of "les forces perturbatrices" (disturbing forces) which upset the harmony of the free market. He includes among them war, government regulations, privileges, subsidies, and tariffs. This idea would become very important in his treatise Economic Harmonies to which he planned to devote a chapter but which was never completed. 325
- his first use of the idea of the self-correcting mechanisms of the free market, or what he called "les forces réparatrices" (repairing or restorative forces) whereby the market attempts to restore equilibrium after it has been upset by "les forces perturbatrices" (disturbing forces).
- the first use of the term "organisation artificielle" (artificial organisation) which would become important in his later critique of socialism and would have, along with its opposite "Natural Organisation", a chapter devoted to it at the beginning of Economic Harmonies.
- an early use of the idea of the indefinite "perfectibility of man."
- the idea of labour and capital being "déplacé" (displaced or distorted) by government interventions in the economy thus causing harm until a new equilibrium can be established.
What is missing from this impressive list is his notion of exchange being the mutual exchange of "service pour service" (one service for another service). 326 He did however discuss it briefly in another piece written at the same time as this one, his unpublished review of Charles Dunoyer's book De la Liberté du travail (On the Freedom of Working) (March, 1845). 327 Thus we can conclude that most of Bastiat's key ideas were floating around in his head by early 1845 before he went to Paris to engage more fully with the main group of political economists.
Bastiat concludes with a very impassioned plea to Lamartine to model himself on Richard Cobden who in 1845 was in the final year of his campaign to repeal the protectionist Corn Laws in Britain (the first bill was passed by the House in January 1846 and came into effect in June that year). Bastiat thought the free trade movement in France would be unbeatable if it could harness Lamartine's great rhetorical skills to the wagon of free trade instead of giving his weight and moral authority to the champions of "a regulated society and big government." He explored these ideas about the strategies needed by a French free trade movement and the role to be played by charismatic speakers to mobilise public opinion at greater length in the introduction he wrote to his first published book, Cobden and the League , which appeared a few months after he wrote this essay on Lamartine. 328 It would turn out that the French free trade movement never could find "its Richard Cobden" although both Bastiat himself and Lamartine were regular speakers at the large public meetings organised by the Association during 1846 and 1847. 329
Text: Letter to LamartineMugron, Les Landes.
January 1845.
SIR,
After having made you the target of criticism on all sides, the prodigious talent with which nature has endowed you, a talent that enhances a reputation without blemish, has now marked you out as the hope of all the various schools of thought. Your half-concealed opinions left each school hoping to enlist you to its cause. Catholicism, neo-Christianity, the supporters of Liberty, and even the modern oddities that go under the names of Saint-Simonism, 330 Fourierism 331 or Communism counted on you and placed their hopes in you. There is that system which can be summarized by the words coerced concentration /bringing together , the other one is expressed by the words, free competition; there is that theory which seeks to impose an artificial organization on production, on human capacities and on capital, and the other theory that sees no better organization of society's powers than the one to which they naturally gravitate : in a word, every school wishes to have you as an aid and would accept you as its leader.
For there is none of these for which you would not have been the most powerful spokesman. What does an idea that carries within itself the element of triumph that is truth, need? To be known, understood and popularized, and for this, it needs striking forms of speech and brilliant formulae whose novel clarity will revive in every heart the innate feeling for what is true and just that a magnanimous Providence has planted there. This is why those who toil, men of vigilance and learning, would entrust to your word the work of years and centuries, scientific investigations or the corrections born of experiment, in a word, the entire intellectual corpus of their schools so that you might broadcast it to the world. By that happy combination of strength of thought and vividness of image, of which you alone have the secret, by the unparalleled gift granted solely to you, the ability to infuse logic with poetry and poetry with logic, you would have made truth shine out in the scholar's study and the artist's studio and, in drawing rooms and boudoirs, in palaces and thatched cottages. You would have carved a pathway for truth to university chairs and the political rostrum alike.
How many times have I too, Sir, turned my gaze toward you because of my sincere intellectual conviction and the unshakeable faith in my heart! How many times have I not examined the words that fell from your lips or the articles that flowed from your pen to see whether they did not at last unveil the secret of your views or unlock your shadowy and mysterious symbolism! For since I understood or at least sincerely considered that I understood the workings of social life, I said to myself, "This light is of no use as long as it is under a bushel, and it will be revealed only by the powerful voice of a man who is capable of blending the dialectic of the metaphysician, the experience of the Statesman, the eloquence of the tribune, the ardent charity of the Christian, and the delightful accents of the poet."
You have at last given your views. But alas! The expectations of the schools of economics have been dashed. You acknowledge only two of them and you declare that you belong to neither. Such is the rock on which genius founders. It disdains the well-trodden paths and the treasure of knowledge gathered over centuries. It seeks its treasure within itself and wishes to carve out its own path. 332
As you say, there are two schools of political economy. Allow me to describe them so that an assessment may be made of the bitter criticism that, through an inexplicable contradiction, you direct at the one whose principles you ultimately accept and the fulsome praise you give, through a no less inexplicable contradiction, to the one whose vain and subversive theories you reject.
The first of these schools proceeds in a scientific manner. It notes, examines, groups, and classifies the facts and phenomena, it seeks to find their relationships of cause and effect and, from all its observations it deduces the general and providential laws according to which men prosper or perish. It considers that the action of science, qua science, on the human race is limited to setting out and making known these laws , so that each person may know the reward attached to his compliance in their regard and the punishments that follow their violation. 333 It refers back to the human heart for the rest, in the full knowledge that it persistently aspires to the reward and inevitably avoids the punishments, and since this twin motivation, a desire for good things and a horror of bad ones, is the most powerful force for bringing people under the sway of social laws, this school rejects as a curse the intervention of arbitrary forces that tend to alter the just and natural distribution of pleasure and pain. This gives rise to the famous principle " Laissez faire, laissez passer ", 334 against which you show such indignation, and which is just a wretched circumlocution for the word freedom which you have inscribed on your banner as constituting the very principle of your doctrine.
The other school, or rather the other method, which has given rise to and will continue to give rise to countless sects, proceeds through imagination . In its eyes, society is not a subject for observation but matter on which experiments may be carried out. It is not a living body whose organs have to be examined but inert matter that legislators subject to artificial arrangement. This school does not assume that the social body is governed by providential laws; it asserts that it can impose on society laws of its own invention. Plato's Republic , Thomas More's Utopia , 335 Harrington's Oceana , 336 Fénélon's Salente 337 , the protectionist régime, Saint-Simonism, Fourierism, Owenism 338 and a thousand other strange concoctions 339 that have on occasion been set up to the great misfortune of the human race and almost always in dreamlike fashion, served up as if to frightened children: these are just a few of the countless manifestations of this school.
The analytical method should ineluctably lead to unity of doctrine, for there is no reason for the same facts not to appear in the same light to all observers. This is why, except for a few slight differences that revised observations are constantly causing to disappear, it has rallied to an identical faith such men as Smith, Ricardo, Malthus, Mill, Jefferson, Bentham, Senior, Cobden, Thompson, Huskisson, Peel, Desttut de Tracy, Say, Comte, Dunoyer, Droz 340 and a host of other illustrious men whose lives were spent not in constructing in their heads an imaginary society populated with imaginary people of their own invention, 341 but in studying men and things and the way they interact in order to recognize and formulate the laws to which God was pleased to subject society.
The method of fanciful invention was bound to lead to intellectual anarchy, because you can bet an infinite number to one that an infinite number of dreamers would not have the same dream. Thus we see that, in order to be at ease in their imaginary world, one has banished property, another inheritance, this one here the family and that one there freedom. Here we find some who take no account of the laws governing population, and there others who set aside the principle of human solidarity, for it was necessary to conjure up chimerical beings in order to achieve a chimerical society.
Thus, the first observes the natural order of things and its conclusion is freedom . 342 The second creates an artificial form of society and its point of departure is coercion . For this reason and for reasons of brevity, I will call the first the economist or liberal school and the other the arbitrary or despotic government school .
Let us see now what judgment you bring to bear on these two doctrines: 343
In political economy there are two schools, an English and materialistic school (this is the liberal school that you are describing in these lines) that treats people as inert quantities, that speaks in figures for fear that an emotion or a thought might slip into its theorizing, that reduces industrial society to a type of stony-faced arithmetic, a heartless mechanism in which humanity is just a silent partner and in which workers are just cogs to be worn down and dispensed with at the lowest price possible, in which everything ends up as a profit or loss at the bottom of a column of figures, with no consideration of the fact that these quantities are men, that these cogs are minds, and these figures have lives, morality, sweat, bodies, and souls, and make up millions of beings like us who have been created by God with the same destiny. This is the school that reigns in France since the import of English economic science. This is the one that has been written and spouted and has governed up to now, with a few major exceptions. This is the one which has forbidden alms and criminalised begging without providing for beggars, criticized the hospitals, condemned the hospices, made fun of charities, made an outlaw of poverty, cursed over-population, forbidden marriages, advised childlessness, shut the centers for abandoned children and which, subjecting everything mercilessly and heartlessly to competition, that very providence of selfishness, has said to the proletariat: 'Get to work.' 'But we cannot find work.' 'Well, then, die! If you cannot earn anything, you have no right to live; society is a well-organized business. …
There is another school that has arisen in France in the last few years from the sufferings of the proletariat, the selfishness of manufacturers, the hard-heartedness of capitalists, the upheaval of the present times, the memories of the Convention 344 , the fellow-feeling of philanthropy, and the anticipated dreams of an age of perfect idealism. This is the one that, prophesying the coming of the industrial Christ to the masses (Fourier), calls them to the religion of association, that substitutes the principle of association through work for all the other principles, instincts and sentiments that God has kneaded into human nature, that believes that it has found the means of organizing labor without turning upside down the free relationships between producers and consumers, of assaulting capital without eliminating it, of regulating wages and distributing them at will with the infallibility and infinite justice of God. This school, which counts among its masters and followers so many men of enlightenment and faith, carries two major treasures within it: a governing principle, association, and a virtue, the charitableness of the masses. However, it seems to push its principles to excess and to fantasize its virtue. Fourierism has thus far been the sublime exaggeration of hope. We do not belong to either of these schools. We believe them both to be in error. One lacks soul and the other lacks only moderation in its passion for good. The difference we see between them is the difference between cruelty and illusion, and to solve the problem of wages we take from one the light of calculation and the other the warmth of charity.
I will not stop to point out the vague and erroneous expressions and the bold assertions that pepper this passage in which it appears that your pen mastered you more than you mastered your pen. Where have you witnessed economists treating people like inert objects , when in truth they see the harmony of the social world precisely in the freedom of their action? 345 Where have you witnessed the predominance of this school in France when it does not have a single voice, at least one that is acknowledged, in the government or Parliament? What is this disdain for figures, calculations, or arithmetic as if the figures are used for anything other than to record results and as if good and harm can be assessed in any other way than through the results which are observed? What scientific value is it possible to find in your indignation against the hard-heartedness of capitalists, the selfishness of manufacturers as such, as though industrial services and capital, any more than wages, could escape the laws of supply and demand that govern them in order to subject themselves to the laws of sentiment and philanthropy?
However, I feel the need to protest with all my strength against the odious insinuations you rain on the heads of all these illustrious scholars, whose venerable names I listed above. No, posterity will not ratify your judgment. It will not agree with you that the abyss that separates cruelty and simple illusion , also divides Smith and Fourier as well as Say and Enfantin. 346 It will not agree that Fourier's only mistake was to push " a great principle to excess and to fantasize virtue ." It will not see in the promiscuity of the sexes a sublime exaggeration of hope . It will not believe that social science owes Fourierism the following three great innovations in belief : "a belief in the infinite progress of the human race, in the principle of association, and in the charitableness of the masses", because the perfectibility of man, a consequence of the principles regulating his intelligence, was recognized a long time before Fourier, because association is as ancient as the family, and because the charitableness of the masses, however you want to consider it, whether from the theoretical or practical point of view, in the case either of individuals or society, has been formally promulgated by Christianity and implemented everywhere, at least to some extent. But posterity will be astonished that you assign such an elevated place and shower so much fulsome praise on a school that at the same time you sully with these eloquent words: it is a monastery in which "a mother is merely a pregnant woman, a father a beggetter of children, and the child a product of the two sexes." 347
But what are you blaming economists for? Could it be for the sometimes arid forms with which they have clad their ideas? This is literary criticism. In this case you would have to acknowledge the services they have rendered to economic science and limit yourself to accusing them of being cold writers. 348 In this regard as well it might be answered that while the severe and accurate language of science has the disadvantage of not hastening its propagation enough, the warm and image-laden language of poets, when transported into the didactic field, has the much greater disadvantage of often misleading the reader after having misled the writer. It is not the form that you are attacking, however, it is the thought and even the intention.
As for the thought, how can it be accused? It may well be erroneous; it cannot be criticized since it can be summed up thus: " There is more harmony in the divine laws than in any human arrangements . " You are free to say like Alphonse 349 that "These laws would be better if I had been called upon to take part in God's counsels." But no, you do not use such impious language. You leave such blasphemy to Utopians. For your part, you take hold of the very doctrine with which you endeavor to sully its exponents and in your entire article, except for a few exceptional views that I will discuss shortly, the great principle of freedom dominates, which implies that you recognize the harmony of divine laws, since it would be puerile to espouse freedom not because it is the true condition for social order and happiness but through a platonic love of freedom itself, setting aside the results which by its very nature it produces.
As for the intention, what perversity can we detect in the deliberate intention of those who choose simply to say:
"The equilibrium of social forces is established spontaneously; do not touch it!"
To reach your conclusion as to the actual intentions of economists, one would have to prove three things:
- That the free play of social and providential forces is disastrous for the human race;
- That it is possible to paralyze their action by substituting arbitrary forces for them;
- That economists reject the latter, fully aware of their alleged superiority to the former.
In the absence of these three proofs, your attacks, if you intended them to include the intentions of the writers of whom I have been speaking, would neither be justified nor justifiable.
But I will never believe that you, whose honor and uprightness are beyond question, would wish to incriminate even the morality of illustrious scholars whose careers preceded yours, who have bequeathed you their doctrines, and whom the human race has absolved in advance through the veneration and respect with which it clothes their memory.
Besides, are there, in what you are pleased to call the English School, as though a science that limits itself to describing the facts and their sequence can be from one country rather than another, as though there could be Russian geometry, Dutch mechanics, Spanish anatomy, and French or English economics, are there, I ask, men in this school who, like the trade prohibitionists , have proclaimed their doctrines in order to mislead people's minds and take advantage of the common error so deliberately and knowingly disseminated? 350 No, you do not quote a single one. It is arguable that no philosophical sect has shown such dignity, moderation, and devotion to the public good and if you think about it you would understand that that is how it must be.
In the 18th century, when astronomy had not yet reached the stage it has now, a a kind of aberration in the movements of the planets was noted. It was noted that some moved closer to each other while others moved away from the center of movement, and the hasty conclusion was reached that the latter were steadily moving into the glacial depths of space while the former were going to be engulfed in the incandescent matter of the sun. Laplace 351 came along and subjected the alleged aberrations to calculation; he demonstrated that when the planets left their orbit, the force pulling them back increased because of this very distancing: "Through the total power of a mathematical formula," said Mr. Arago, 352 "the foundations of the physical world have been strengthened." 353 Do you think that the person who discovered and measured this beautiful harmony would willingly have agreed to misrepresent these admirable laws of gravity for personal interest?
Political economy also has its Laplaces. They have observed that, when social disturbances appear, there also exist providential forces that bring everything back into equilibrium. They have discovered that these restorative forces are proportional to the disturbing forces because the one gives rise to the other. In delighted admiration for this harmony in the moral world, they have conceived a passion for the divine work and they, more than other people, reject everything that might disrupt it. For this reason, as far as I know, there has never been an instance when the attraction of private interest has come to rival in their hearts this eternal object of their admiration and love. This surprised Bonaparte. He was little accustomed to resistance of this nature and honored them with the title Naive Fools because they refused to support his mission to rule in an arbitrary manner, considering it incompatible with the great social laws that they had discovered and proclaimed. 354 They bear this glorious title to this day and none of them can be seen to be active in government affairs because they would only do so if they were able to act according to their own principles.
I am sorry to have to say this frankly, Sir, but I believe that you have done a disastrous thing and one likely to misdirect the first steps of a young generation full of confidence in the authority of your words, when, dispensing criticism and praise indiscriminately, you violently attacked the most conscientious and in a practical sense Christian school, that has ever come onto the scene of the moral sciences, reserving your enthusiasm, sympathy and, pardon me for saying this, your "flirtatious" remarks for the other schools which are not, in your own words, anything other than a negation of freedom, order, property, family, love, domestic affections, and all the sentiments ingrained by God in human nature .
And what makes this unjust evaluation of men totally inexplicable is that, as I have said, you adopt the principles of the economists, free trade, and free competition, this godsend of selfishness .
There is no other way of organizing work, you say, "than freedom for it. There is no other way of distributing wages than through work itself being rewarded for what it does and achieving its own justice, something which your arbitrary systems will not allow. Free will with respect to work for the producer, for the consumer, for wages and workers, is as sacred as free will with respect to conscience in man. When you touch freedom of labor, you kill progress; when you touch freedom of conscience you kill morality. The best governments are those that do not touch them. 355
And elsewhere: "We know of no other possible organization of labour in a free country than the freedom that earns its own reward through competition , ability and morality." 356
It is not enough to say that these words are in line with the ideas of the economists; they embrace and summarize their entire doctrine. They imply that you have full knowledge and clarity of perspective on this great law of competition, 357 which carries within itself the general remedy for the inevitable harm that it may produce in particular cases.
And yet how can we believe that your view embraces all the facts and social forces that result from the principle of freedom when we see you rejecting the key notion of the responsibility of intelligent and free agents? 358
For when you speak of the two major schools, the one of freedom and the other of coercion , you say, "I am borrowing from one the enlightenment of its calculations and from the other the warmth of its charity." To speak accurately, you ought to say: "I am borrowing from one the principle of freedom and from the other that of irresponsibility ."
In fact, the result of the passages I have just quoted is that you have taken from the economists not just calculations but a guiding principle, namely, " Freedom is the best social organization ."
But this is on one condition alone, that the law of responsibility produces its full, total, and natural effect. If human law intervenes and distorts the consequences of actions so that they do not affect those for whom they were intended, not only is freedom no longer a good organization, but it also does not exist.
It is therefore a grave contradiction to say that you are borrowing freedom here and coercion there in order to fashion a monstrous or rather an impossible blend.
I will make myself better understood by going into some detail.
You criticise the liberal school for being cruel and right away you borrow from the arbitrary or despotic school "the warmth of its charity." That is the general approach, and here is its application.
You accuse the economists of forbidding marriage and counseling childlessness and opposing this, you want the State to adopt orphaned children or those who are too numerous .
You accuse the economists of forbidding and making fun of alms and opposing this, you want the State to intervene to help the masses in their poverty.
You accuse the economists of saying to the proletariat, " Work or die " and on the other hand you want society to proclaim the right to a job and the right to a living .
Let us examine these three antitheses, whose number I could have increased; this will be enough to determine whether it is possible to gather doctrines from opposing schools and achieve a sold alliance between them in this way.
I have no wish to burden the terrain of principles on which I am determined to stand with detailed discussion. However, I will make one preliminary remark. It was said a long time ago that the surest but certainly the least fair way of combating one's opponent is to attribute to him outrageous sentiments, false ideas, and words he has never said. I believe you are incapable of intentionally having recourse to such trick but, either because the words used have led to this effect or because of the demands of brevity, it is certain that you attribute to the economists words that were never theirs.
Never have they advised infertility 359 or forbidden marriage ; this criticism could have been more aptly made, and you in fact do make it, to Fourierism . While the economists have not condemned but rather merely deplored over -population, this very word " over " that you use justifies them.
What they have said on this serious subject is:
Man is a free being, who is responsible and intelligent. Since he is free, he uses his will to direct his actions; because he is responsible, he receives the reward or punishment for his actions, depending on whether they conform or not to the laws governing his being. Because he is intelligent his will, and consequently his actions, are constantly progressing, either in the light of his foresight or through the inevitable lessons of experience. It is a fact that people, like all living beings, are able to increase their numbers beyond their current means of subsistence. It is another fact that when the equilibrium is broken between the numbers of people and the resources that sustain life, there is malaise and suffering in society. Therefore, there is no alternative; plans have to be made to maintain the equilibrium or people have to suffer in order for it to be re-established. We conclude that it is desirable for the population as a whole not to grow too fast, and in order to do this that the individuals that make it up should not enter into marriage until they have the likelihood of being able to maintain a family. And as people are free, and as we do not recognize coercive or restrictive legislation in this regard, we call upon their reason, their feelings, and their common sense. The words we make them listen to are not in the slightest utopian or abstract. We tell them, with the wisdom of centuries and sense so common that is practically instinctive, that rashly or prematurely taking on a family that one does not yet have the means to bring up would be to bring unhappy people into the world and to make oneself unhappy. We add: If these individual rash actions become too widespread, society has more children than it can feed and it suffers , for the human race is not subject only to the law of responsibility , but also to that of solidarity , and this is the reason why economists are anxious to set out all the fateful consequences of a reckless increase in the human population, so that public opinion can bring its all-powerful action to bear on it, for they sincerely believe that in the face of this terrible phenomenon society faces nothing other than the alternative of foresight or suffering.
But you, Sir, you provide it with an expedient. You do not think that it has to plan ahead in order not to suffer and you do not want it to suffer for not having thought ahead. You say, " Let the State adopt children that are too numerous ."
This is certainly what will soon be decreed. But with what, if you please, will it bring them up? Doubtless with food, clothes, and products taken from the mass of the people in the form of taxes, for, as far as I know, the State has no resources of its own, none that is that do not stem from national production. 360 Thus the great rule of responsibility will be eluded. Those who, following their personal views perhaps, but in perfect accord with the public interest, in accordance with the rules of prudence, honesty, and reason, have refrained from, or postponed the moment of surrounding themselves with, a family, will be coerced into feeding the children of those who have given in to their brute instincts. But will the harm at least be cured? On the contrary, it will constantly get worse, for at the same time that no reliance can be placed on foresight, which will no longer have a rational dimension, the suffering itself, which continues to have an effect, will no longer act as a punishment, a brake, a lesson, or a stabilizing force. It will lose its attachment to morality, the latter now having nothing left that will explain or justify it. This is when people, without blaspheming, will be able to say to the author of all things: "What is the point of evil on earth, since it has no final purpose?"
The same remarks can be made about charity. First of all, economic science has never forbidden nor made fun of alms. Science does not make fun of or forbid anything; it observes, deduces, and demonstrates.
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 361 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. Poverty is deserved or undeserved, and only free and spontaneous charity can make this essential distinction. If poverty receives help, even in the case of a degraded soul who has caused his own downfall, that help will be distributed parsimoniously in exactly the measure required, so that the punishment is not too severe, and yet the help does not encourage abject and contemptible sentiments that in the general interest ought not to be encouraged by inappropriate kindnesses. For unmerited and hidden misfortune, charity reserves liberal gifts and the discretion, the shelter, and the consideration to which misfortune is entitled in the name of human dignity.
However, state charity that is coerced, organized, and decreed as a debt on the part of the donor and a positive credit on the part of the receiver, does not nor can it make a distinction like this. Allow me to invoke the authority of a writer too little known and too little consulted on these matters:
Charles Comte states that:
There are several types of vice, whose principal effect is to produce poverty for the person who has adopted them. An institution whose object is to shelter people of every kind from poverty, without distinguishing the causes that have produced it, thereby encourages all the vices that lead to poverty. The courts cannot fine those people guilty of laziness, intemperance, improvidence or other vices of this sort, but nature, which has ordained rules of work, temperance, moderation and careful management for the human race, has taken it upon itself to inflict on the guilty the punishments they deserve . To reduce these punishments to nothing by giving the right to be given help to those who deserve such punishment is to leave in place all the attractions of vice. What is more, it is to allow the harm such vice produces to affect those to whom vice is alien, as well as weakening or destroying the only punishments able to repress it. 362
In this way, governmental charity, aside from the fact that it violates the principles of freedom and property, once again overturns the laws of responsibility, and by establishing a sort of community of entitlements 363 between the prosperous and poor classes it removes from prosperity the character of reward and from poverty the character of punishment stamped on them by the nature of things.
You want the State to intervene to help the masses in their poverty. But with what? With capital. And where will it obtain this? From taxes; it will have a budget for the poor . Therefore, by withdrawing this capital from general circulation, it would merely give back to the masses in the form of alms what they would have received in the form of wages!
Finally, you proclaim the right of the proletariat to a job, to a wage, and to food. And who has ever contested to anyone the right to work and consequently to a fair level of remuneration? Can this right ever be denied in a free society? However, by confronting us with what is a terrible hypothetical case, you are saying, "What if society has insufficient work for all its members, and what if its capital is not enough to give an occupation to all?" In truth, does not this extreme supposition imply that the population has exceeded its means of subsistence? In this case, I can clearly see the procedures that freedom tends to use to re-establish equilibrium; I see earnings and profits decrease, that is to say, I see each person's share of the community's wealth decrease; I see the inducements to marriage weaken, births diminish, and perhaps mortality increase until the proper level has been re-established. I see that these are harms and sufferings, and I both see and deplore them. 364 But what I do not see is that society can avoid these harms by proclaiming a right to work [i.e. to a job] , by decreeing that the State will take from an inadequate capital stock the means of providing employment for those who lack it, for I consider this filling one glass by emptying another. It is to act like that simple man who, wishing to fill a cask, drew from underneath what he put in from above or like a doctor who, to give strength to a sick man, injected into his right arm the blood he had taken from the left.
In my view, in the extreme theoretical case in which we are obliged to reason, such expedients are not only ineffective, but essentially harmful. Not only does the State move capital from one place to another, it withholds part of the capital it gathers and undermines the activities of the capital it does not commandeer. What is more, the new distribution of wages is less fair than the one presided over by freedom, and unlike the latter it is not proportional to the just rights of ability and morality. Finally, far from decreasing social suffering, on the contrary it increases it. These expedients do nothing to re-establish the equilibrium that has been upset between the number of people and their means of existing. Very far from doing so, they increasingly tend to upset this equilibrium.
But if we think that society can be put into a situation in which all it has is a choice of harms, if we think that in this case freedom brings it the most effective and least painful remedies, be warned that we also believe that it acts above all as a means of prevention. Before restoring the equilibrium between people and the food supply, it acts to prevent this equilibrium from being disrupted, because it allows all the reasons for men to be moral, active, temperate and far-sighted to retain their influence. We do not deny that what follows the forgetting of the virtues is suffering, but wishing that this were not so is to want an ignorant and debased people to benefit to the same extent from well-being and happiness as a moral and enlightened one.
It is so true that freedom prevents the harm for which you seek a remedy in the right to a job that you yourself acknowledge that this right does not need to be applied to those industries that enjoy total freedom: "Let us set aside", you say, "shoemakers, tailors, blacksmiths, wheelwrights, coopers, locksmiths, masons, carpenters, joiners, etc. The fate of these people is not in the balance." 365 However the fate of factory workers would not be in the balance either if manufacturing had a natural life, always had its feet on firm ground, expanded only according to need, and did not rely on the artificial and variable prices resulting from protection , one of the fruits of the theory of arbitrary government.
You proclaim the right to a job , you raise it to a principle , but at the same time you show little faith in this principle. See within what narrow limits you in fact circumscribe its action. This right to work can be invoked only in rare instances, in extreme cases, only where life is at stake (propter vitam) 366 and on condition that its application will never create deadly competition from the State against the work of free industries and voluntarily agreed rates of pay.
Reduced to these terms, the measures you announce are within the domaine of state regulation 367 rather than social economy. 368 I consider that I can confirm, on behalf of the economists, that they have no serious objections to the intervention of the State in rare or extreme cases in which, without undermining free industries or changing the rates of voluntarily agreed wages it is possible to come to the aid, propter vitam , to save the lives of workers who are temporarily and abruptly displaced as a result of unexpected crises in production. 369 But, I ask you, to achieve these exceptional measures, was it necessary to rake over all the theories of the schools most in opposition to each other? Was it necessary to raise banner against banner, principle against principle, and trumpet into the ears of the masses those deceiving words: the right to a job or the right to a living ? I say to you in your own words: "These ideas are as resonant as this because all they contain is wind and tempest." 370
Sir, I do not think that Heaven has ever given men more precious gifts than those lavished on you. There is enough warmth in your soul and enough power in your genius for the century to be subject to your influence and, at the sound of your voice, take one more step along the path of civilization. But to do this, you ought not to take bits here and there from the schools that most oppose each other and from principles that cancel each other out. Your prodigious talent is a powerful lever but this lever is powerless if it does not have a principle as its fulcrum. In the past you stood up before the opposition with a sincere heart and eloquent voice. What result did you achieve? None, because you did not make any appeal to a principle . Oh! If only you were a strong supporter of freedom! If only you portrayed it bringing progress to the social world through the action of its two mutually sustaining laws, responsibility and solidarity! If only you rallied people's minds to this truth: "In political economy there is a great deal to be learnt and little to be done!" 371 People would then understand that freedom carries within itself the solution to all the major social problems that trouble our time and "that it provides justice for people that arbitrary governments do not provide." 372 How is it that you have found such fertile truths only to abandon them immediately afterwards? Do you not see that the rational and practical consequence of this doctrine is the reduction in the size of government ? 373 Take courage, then, and follow this shining path! Take no heed of the worthless popularity you are promised elsewhere. You cannot serve two masters. You cannot work to reduce the scope of power and demand that it leaves "both labour and conscience" alone, while on the other hand requiring it to "engage on a lavish scale in education, establish colonies, adopt children that are too numerous and intervene on behalf of the masses and their poverty." If you entrust these varied and sensitive tasks to it, you will make it grow inordinately. You will entrust it with a mission that is not its own. You will substitute its scheming for the economy of social laws. You will transform it into a "Providential agency that not only sees but foresees." You will enable it to impose and redistribute huge taxes. You will make it the object of all forms of ambition, hope, disappointment, and intrigue. You will elevate its executives inordinately and transform the nation into state employees; in a word you are on the path of an bastard, incomplete and illogical form of Fourierism.
These are not the doctrines that you ought to be promulgating in France. Reject their misleading attractions. Adhere to the severe but true principle, the only one that is true, Freedom. Allow your wide-ranging intellect to embrace its laws, its actions, its associated phenomena, the factors that disrupt it, and the restorative forces which it has within itself. 374 Inscribe the words " free society, small government " on your banner, 375 ideas that are deeply interrelated. This banner will perhaps be rejected by the parties, but the nation will embrace it rapturously. But eradicate from it the slightest trace of the motto, " coerced society, big government ". Exceptional measures, applicable in rare circumstances and extreme cases and whose use is in the end highly debatable cannot outweigh the value and authority of a principle for long in your mind. Such a principle is for all time, for everywhere, for all climates and every circumstance. Proclaim freedom, therefore: freedom to work, freedom to trade, and freedom to do business, 376 for this country and all others, for this and every age. If you do this, I dare to promise you if not popularity today at least popularity and the blessings of the centuries to come. A great man has taken on this role in England. 377 There is not a single day in the year nor hour in the day during which the great laws of the social mechanism 378 are not set out before the gaze of the masses. He has gathered around him a travelling university and a group of preachers for the 19 th century, 379 whose life-giving words penetrate every strata of society and are bringing to the surface a powerful, enlightened, peace-loving but indomitable public opinion which will preside shortly over the destiny of Great Britain. For do you know what is happening? More than fifty thousand English people 380 will be given electoral rights by the end of the month to balance the influence of the advocates of arbitrary government power and counteract the efforts of the prohibitionists, false philanthropists, and the aristocracy. Freedom! That is the principle that is going to reign on our doorstep and one man, Mr. Cobden, will have been the instrument of this great and peaceful revolution. Oh! If only you could have a destiny like this, one for which you are so worthy!
297 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. 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 and offered Bastiat a position in the government, which he declined.
298 See the glossary entry on "The Fortifications of Paris."
299 Gustave de Molinari, Biographie politique de M. A. de Lamartine. Extraits de la Revue générale biographique, politique et littéraire, publié sous la direction de M. E. Pascallet. Deuxième Edition (Paris: Lacombe, 1843).
300 For example, they shared the stage at a Free Trade meeting in Marseille on 24 August 1847 and Lamartine's speech was published as a separate pamphlet, Discours de M. de Lamartine, dans l'Assemblée marseillaise du Libre échange, le 24 août 1847 (Lyon: Léon Boitel, 1847).
301 See his recollections in "Political Manifestos of April 1849," in CW1, pp. 390-91. Also Dean Russell, Frédéric Bastiat , p. 82.
302 Letter 94 to Coudroy (Paris, 29 February, 1848), CW1, p. 144.
303 Pierre Joseph Proudhon (1809–65) was a political theorist whom many people consider to be the father of anarchism. He was elected to the Constituent Assembly in 1848 representing La Seine. He is best known for his book Qu'est-ce que la propriété? (What is Property?) (1841), the answer to which he thought was "property is theft." Proudhon and Bastiat engaged in a several month long debate on the morality of property, interest, and rent in late 1849. See, "Free Credit", below, pp. 000.
304 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. He was also an advocate of the "right to work" (the right to a job), an idea which Bastiat opposed.
305 Louis Blanc (1811-1882) was a journalist and historian who was active in the socialist movement. Blanc founded the journal Revue du progès 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 and promoted the National Workshops.
306 An extract of "Théorie du droit de propriété" can be found in Victor Considerant, Contre M. Arago: réclamation adressée à la Chambre des députés par les rédacteurs du feuilleton de la Phalange : suivi de la théorie du droit de propriété (Paris: Au bureau de la Phalange, 1840), pp. 49-64. It was republished in July 1848 at the height of the debate about right to work legislation which was taking place in the National Assembly: Victor Considerant, Droit de propriété et du droit au travail (Paris: Librairie phalanstérienne, 1848).
307 Louis Blanc, Organisation du travail. Association universelle. Ouvriers. - Chefs d'ateliers. - Hommes de lettres . (Paris: Administration de librairie, 1841. First edition 1839).
308 Lamartine, "Du droit au travail et de l'organisation du travail" in La Politique de Lamartine (1878), vol. 2, p. 151.
309 See the glossary on "The Right to Work."
310 Reprinted in Louis Blanc, Organisation du travail (5ème édition), revue, corrigée et augmentée d'une polémique entre M. Michel Chevalier et l'auteur, ainsi que d'un appendice indiquant ce qui pourrait être tenté dès à présent (Paris: au bureau de la Société de l'industrie fraternelle, 1847). "Réponses à diverses objections." Chevalier's article, pp. 121-35; and Blanc's response from 17 Feb. 1845, pp. 135-48. Chevalier quote from pp. 125-26. See also, Michel Chevalier, Lettres sur l'Organisation du travail, ou études sur les principales causes de la misère et sur les moyens proposées pour y remédier (Paris: Capelle, 1848) and Question des travailleurs : l'amélioration du sort des ouvriers, les salaires, l'organisation du travail (Paris: Hachette, 1848).
311 Dunoyer, Charles. 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.
312 Alphonse de Lamartine, "Du droit au travail et de l'organisation du travail," Le Bien Public , déc. 1844. Later published as a pamphlet: Du droit au travail et de l'organisation du travail (Mâcon: Chassipollet, 1845). See also, La Politique , vol. 2, XXIX, pp. 145-65.
313 T.19 [1844.10.15] "On the Influence of French and English Tariffs on the Future of the Two People" (De l'influence des tarifs français et anglais sur l'avenir des deux peuples), JDE , T. IX, Oct. 1844, pp. 244-71 [OC1, pp. 334-86] [CW6].
314 Lamartine, "De la crise des subsistances" (1 Oct. 1846), Le Bien public , which provoked Bastiat's reply T.60 [1846.10.15] "Second Letter to M. de Lamartine" (Seconde lettre à Monsieur de Lamartine), JDE , 15 October 1846, T. 15, No. 49, pp. 265-70. [OC1.13, pp. 452-60]. See below, pp. 000.
315 See Bastiat's article on "Natural and Artificial Organisations" (JDE, January 1848) where he explores this idea further, below pp. 000.
316 See below, p. 000.
317 See Glossary entries on "Malthus" and "Malthusianism and French Political Economy."
318 T.17 [1844.??] "On the Division of the Land Tax in the Department of Les Landes" (De la répartition de la contribution foncière dans le Département des Landes) [OC1, pp. 283-333] [See above, pp. 000.
319 T.66 [1846.05.19] "On the Railway between Bordeaux and Bayonne. A Letter addressed to a Commission of the Chamber of Deputies" (Du chemin de fer de Bordeaux à Bayonne. Lettre adressée à une commission de la Chambre des députés), Le Mémorial bordelais , 19 May 1846 [OC7.22, pp. 103-8] [CW1, p. 312-16]
320 T.47 [1846.02.15] "Thoughts on Sharecropping" (Considérations sur le métayage), JDE , T.13, no. 51, Feb. 1846, pp. 225-239. [Not in OC] [CW4, pp. 000]; and T.81 [1846.10.15] "On Population" (De la population), JDE , 15 Octobre 1846, T. XV, no. 59, pp. 217-234. A revised version of this article appeared as chap. 16 in the 2nd, posthumous edition of Economic Harmonies (1851), with explanatory notes by Fontenay. Not in the OC.
321 EH2, chap. 16, "On Population," CW5 (forthcoming).
322 Pope Pius IX put the DEP on the Index of Banned Books on 12 June 1856 for "religious reasons," presumably for the article on "Malthus" written by Joseph Garnier which advocated various forms of birth control. See, Molinari's comments on this, L'Économiste belge , Supplément to the edition of 20 November, 1856, p. 5; and the "Beacon for Freedom of Expression" database of banned books and the entry for the DEP <http://search.beaconforfreedom.org/search/censored_publications/publication.html?id=9709582>. Joseph Garnier, "Malthus," DEP, vol. 2, pp. 126-29.
323 See the glossary on "The Social Mechanism" and "Natural and Artificial Organisation," JDE, 15 January, 1848, below pp. 000.
324 See the glossary on "Harmony and Disharmony."
325 See the glossary on "Disturbing and Restorative Factors."
326 See the glossary entry on "Service for Service."
327 See below, pp. 000.
328 Bastiat, Cobden et la ligue, ou l'Agitation anglaise pour la liberté du commerce (Paris: Guillaumin, 1845). Introduction, pp. i-xcvi.
329 These speeches by Bastiat will be included in CW6.
330 Henri Saint-Simon (1760-1825) was an aristocrat and soldier who, after the French Revolution, became a writer and influential social reformer. he was an early theorist of the idea of "industrialism," that the old regime of war, privilege, and monopoly would gradually be replaced by peace and a new elite of creators, producers, and industrialists. The movement split into a socialist branch, the Saint-Simonian school led by Auguste Comte and Olinde Rodrigues, and a classical liberal school led by Charles Comte and Charles Dunoyer. The Saint-Simonians advocated rule by a technocratic elite, state-supported "industry," and the "organisation" of labour by bureaucratic planners.
331 Charles Fourier (1772-1837) was a socialist and founder of the phalansterian school, also known as "Fourierism", which 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.
332 This statement is somewhat ironic as this charge of going against the masters of economic thought (Malthus and Ricardo) would be leveled against Bastiat himself by his economist friends in response to several of his innovations in economic theory presented in several essays in the JDE and in the Economic Harmonies (1850), notably his theory of value, rent, and population growth.
333 In their theoretical work both Bastiat and Molinari made the importance of economic laws central to their understanding of economic theory, Bastiat in Economic Harmonies (1850) and Molinari in Les Soirées de la rue Saint-Lazare (Evening on Saint Lazarus Street) (1849) the subtitle of which was "Discussions on Economic Laws and the Defence of Property".
334 A contemporary of Bastiat, Joseph Garnier, in the entry for "laissez faire, laissez passer"in the DEP (1853) explained "laissez-faire" to mean "laissez travailler" (leave us free to work as we wish) and "laissez passer"to mean "laissez échanger" (leave us free to trade as we wish). See glossary on "Laissez-faire."
335 The English lawyer and social theorist Sir Thomas More (1478-1535) wrote the class 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.
336 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.
337 François Fénelon (1651-1715) was a French Roman Catholic archbishop, theologian, poet and writer. He was appointed the tutor to the King's family. Today is remembered as the author of The Adventures of Telemachus (1699) which was thinly veiled critique of the doctrine of the divine right of kings, for example when the hero Telemachus visits Idomeneus, King of Salente and asks him very pointed questions about the nature of good rulership.
338 Robert Owen (1771-1858) was a successful English manufacturer, philanthropist, and socialist theoretician. He made his fortune with a cotton mill in New Lanark in Manchester. The reforms he introduced in his factory became the model for creating "villages of cooperation," which culminated in the establishment of a model community, New Harmony, in Indiana, in 1824.
339 Bastiat provides a similar list of socialist utopian writers in the article "Economic Harmonies: I., II., and III. The Needs of Man" in JDE, 1 September, 1848. See below, pp. 000.
340 The following were political economists: Adam Smith, David Ricardo, Robert Malthus, James Mill, Jeremy Bentham, Nassau Senior, Desttut de Tracy, Jean-Baptiste Say, Charles Comte, Charles Dunoyer, Joseph Droz. The following were politicians who introduced liberal economic reforms: Thomas Jefferson, Richard Cobden, Thomas Peronnet Thompson, William Huskisson, and Robert Peel.
341 Bastiat called these men "mechanics" who wanted to build and run society like a machine. See "Natural and Artificial Organisation" (JDE, 15 January 1848), below, pp. 000.
342 ( Bastiat's Note .) In saying that people ought to enjoy the free exercise of their faculties, it of course remains a fact that I do not in the least intend to deny the government the right and duty of repressing the abuse that can result from this. On the contrary, economists consider that this is its principal and almost sole mission.
343 The long quote comes from La Politique de Lamartine , vol. 2, pp. 148-49; and then 149-50.
344 After the fall of the monarchy in August 1792 the Legislative Assembly called for an election based upon universal manhood suffrage to create a Constituent Assembly (also known as the National Convention) which would draw up a new constitution for the republic. It remained in power between September 1792 and October 1795. After the fall of Robespierre in July 1795 the Convention was replaced by a new constitutions and a new government called the Directory.
345 Bastiat uses the phrase "précisément l'harmonie du monde social dans la liberté de leur action" (the harmony of the social world precisely in the freedom of their action). This is his earliest uses of the term "harmony" used in this way.
346 Prosper Enfantin (1796-1864) was a banker and manager of the Paris-Lyon railroad who became interested in the ideas of Saint-Simon who believed that industrial society should be managed by an elite of scientists and engineers. Enfantin was regarded as one of Saint-Simonism's "high priests."
347 Lamartine, La politique , vol. 2, p. 159.
348 This criticism by Lamartine of the "coldness" of economics might have been one of the spurs to Bastiat writing his engaging, amusing, and clever "economic sophisms" over the coming year, beginning in April, shortly after this was written. These were collected and published in January 1846 as the first series of Economic Sophisms . He explicitly noted that he wanted to overcome the accusation made against political economy that it suffered from "de sécheresse et de prosaïsme" (dry and dull or prosaic) and that economists were "secs et froids" (dry and cold). See, ES2.2 "Two Moral Philosophies," ES2 2 in CW3, pp. 131-38. Quote on p. 135.
349 Alphonso the Wise (Alfonso X) (1221-1284) was king of Leon and Castile from 1252-1284 and was reputed to have said that if he had been present at the creation of the world he would have had a few words of advice for the Creator on how better to order the universe. During his reign he attempted to reorganize the Castillian sheep industry, raised money by debasing the currency, and imposed high tariffs in order to prevent the inevitable price rises which resulted. Bastiat liked this story about Alfonso so much that he referred to it several times in his work.
350 The purpose of what would later become Bastiat's Economic Sophisms was to refute the economic errors (sophisms) which were deliberately spread by the protectionists in order to deceive "the dupes", the ignorant and gullible general public.
351 Pierre-Simon, marquis de Laplace (1749-1827) was an astronomer and mathematician who was appointed Minister of the Interior under Napoleon in 1799 and a Peer in the Restoration. He contributed to the restructuring of the French high school system under Napoléon by ensuring that mathematics was a crucial part of the curriculum. His major work was the multi-volume Mécanique céleste (Celestial Mechanics) (1799-1805). He used his new mathematical models to explain the perturbations in the orbits of Saturn, Jupiter, and the moon and discovered that they were oscillations which repeated themselves over time within precise limits.
352 François Arago (1786-1853).
353 See Arago's biography of "Laplace" in Œvres complètes de François Arago, secrétaire perpétuel de l'Académie des sciences. Publiées d'après son ordre sous la direction de M. Jean Augustin Barral (Paris: Gide et J. Baudry, 1855), vol. 3, p. 478.
354 This could a reference to either the Idéologues, like Destutt de Tracy, or the Economists, like Jean-Baptiste Say. In Lucien Bonaparte's Memoirs he tells us that his brother Napoléon boasted that he invented the term "ideologue" to ridicule the liberal reformers around Destutt de Tracy who dared to tell him how to run the government. He also called them "metaphysicians" and "chercheurs d'idées" (idea hunters) and "les bavards" (chatter boxes). See, Théodore Iung, Lucien Bonaparte et ses mémoires: 1775 - 1840 d'après les papiers déposés aux archives étrangères et d'autre documents inédits . 3 vols. (Paris: Charpentier, 1882). vol. 2, p. 243. Napoléon's most extended rant against the economists can be found in one of the conversations recorded by Count de Las Cases in 23 June 1816 while Napoléon was incarcerated on Sainte-Hélène. He was quoted as saying that "The Emperor fought against the Economists whose principles could be true in principle (leur annoncé) but became harmful (vicieux) in their application." (p. 332). See, Mémorial de Sainte-Hélène, ou, Journal où se trouve consigné, jour par jour, ce qu'a dit et fait Napoléon durant dix-huit mois, par le comte de Las Cases (Paris: L'Auteur, tous les libraires de France et de l'etranger, 1823). vol. 4, pp. 331-38. In turn, Jean-Baptiste Say wrote a lengthy critique of Napoleon's economic ideas in "Erreurs où peuvent tomber les bons auteurs qui ne savent pas l'économie politique," Mélanges et correspondance d'économie politique: ouvrage posthume de J.-B. Say; publié par Charles Comte, son gendre (Paris: Chamerot, 1833), pp. 380-405.
355 La Politique de Lamartine , vol. 2, p. 164
356 La Politique de Lamartine , vol. 2, p. 165.
357 See his article "On Competition," JDE May 1846, below pp. 000.
358 Bastiat refers several times to humans as "un être actif" (an acting or active being) and to "l'action humaine" (human action). Here he refers to "des agents intelligents et libres" (fee and intelligent agents or actors). See the glossary on "Human Action."
359 Bastiat says "stérilité" which might be childlessness, or the use of contraception.
360 This is an idea which Bastiat took up again in his famous essay on "The State" which first appeared in his revolutionary street magazine Jacques Bonhomme in June 1848 and then in a revised and longer version in the upmarket Journal des Débats in Sept. 1848. See, T.212 [1848.06.11] "The State" (L'État), Jacques Bonhomme , no. 1, 11-15 June 1848, p. 2 [OC7.59, pp. 238-40] [CW2, pp. 105-6]; and T.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, pp. 93-104]
361 Bastiat uses the phrase "comme élément harmonique dans le jeu des lois sociales" which is only the second time he used the word "harmonique".
362 Charles Comte, Traité de Législation , 1826 ed, vol. 1, Livre II, Chap. XI. De l'action des lois de la morale, et des obstacles que cette action rencontre quelquefois dans celle des gouvernemens, dans des institutions publiques, ou dans des erreurs populaires," p. 507-8. Similar arguments were made by Herbert Spencer against compulsory or government charity (but not voluntary charity) as early as 1842 in "The Proper Sphere of Government". See, Herbert Spencer, The Man versus the State, with Six Essays on Government, Society and Freedom , ed. Eric Mack, introduction by Albert Jay Nock (Indianapolis: LibertyClassics, 1981). < /titles/330#lf0020_head_018 >.
363 Bastiat says "une communauté de droit" (a community of entitlements).
364 Bastiat is giving here the standard Malthusian response of the Economists of his day. He was later to repudiate much of this orthodoxy in an article and in Economic Harmonies much to the regret of his colleagues. See, Bastiat, "De la population" (On Population), JDE , Octobre 1846, below, pp. 000; and EH, Chap. 16 "Population" See also the glossary on "Malthusianism."
365 La Politique de Lamartine , vol. 2, p. 151.
366 "For the sake of living" - "propter vitam vivendi perdere causas" (to destroy the reasons for living for the sake of life) which comes from Juvenal, Satyricon VIII, verses 83–84.
367 Bastiat uses the older 18th century expression "la police" which meant state and bureaucratic regulation of the economy.
368 Here Bastiat uses the term "l'économie sociale" (social economy) which is one he often used in his writing. By this he meant something broader than the more limited sphere of "pure political economy" which encompassed the traditional economic matters of production, trade, and the buying and selling goods and services. "Social economy" included all aspects of human activity in the social realm, namely any human activity which was voluntary and involved groups of individuals coming together for social purposes. In other words, what we would today call sociology. In late 1847 Bastiat had an opportunity to give some lectures at the School of Law on social economy, or what he called in a letter to his friend Félix Coudroy the "Harmonie des lois sociales" (the Harmony of Social laws). These lectures were later to become part of his book Economic Harmonies . See, Letter 81. Paris, Aug. 1847. To Félix Coudroy (OC1, p. 78), CW1 , pp. ???
369 Bastiat's view of the proper and legitimate functions of the state was that it should do less than the standard "limited government" envisaged by Adam Smith and his followers, namely police, defence, courts, some public goods like roads, possibly some education, and the provision of money. Bastiat believed in "ultra-minimal government" since he believed that many roads, all education, and even money could be provided privately. He also thought the national standing army should be demobilised and replaced by local militias, and that only in grave emergencies should the government provide some temporary and limited relief to the poor during emergencies (such as crop failures). These minimal state activities would be funded by a 5% tariff on both imports and exports until they could be replaced by single flat income tax. All other taxes would be abolished. Although he did not go as far as his younger friend and colleague Gustave de Molinari did in wanting to see the private provision of "security," he was much more radical than most of his colleagues in the Political Economy Society. See the debates in the Society on "The Limit of the Functions of the State" which were held in October 1849, January and February 1850, below, pp. 000, pp. 000. and pp. 000.
370 La Politique de Lamartine , vol. 2, p. 164.
371 The same quotation was used by Bastiat on the title page of his first series of Economic Sophisms (1846). It comes from Bentham's Théorie des peines et des récompenses (1811) in a passage at the end of chapter XIV on "Abolition du taux fixe de l'intérêt de l'argent dans les entreprises commerciales". It seems to be an insertion by the editor (Bowring) from Bentham's Manual of Political Economy . The quotation makes sense when one realises that it concerns the proper functions of government and what politicians and regulators can learn from political economy. Here Bentham is arguing for a hands off approach, or a policy of laissez-faire: "Je terminerai ce précis comme je l'ai commencé, en répétant que l'économie politique doit être considérée comme une science plutôt que comme un art. Il y a beaucoup à apprendre , et peu à faire. Les abeilles font le miel par instinct; il suffit de leur laisser une ruche tranquille, des champs et des bois pour y amasser leur récolte; mais, parce qu'on a besoin d'une partie de leur miel, il faut étudier leur nature, il faut connaître l'économie de ce petit peuple, pour ne pas nuire à la reproduction de ses travaux." (I will end this precis as I began it, by repeating that political economy ought to be regarded as a science rather than an art. There is much to learn and little (for the government) to do. The bees make honey by instinct. It is sufficient to leave their hive in peace, and also the fields and woods for them to harvest their crop. However, because we need part of their honey it is necessary to understand the economy of these little creatures ("people") in order not to harm their productive labour.) The English language version is somewhat different. In the 1825 edition the editor paraphrases Bentham in a chapter dealing with "Bentham and Adam Smith" on political economy and much of it seems to have been taken from the Manual of Political Economy : "In conclusion, political economy is a science, rather than an art. There is much to be learned respecting it and little to be done. Is it inquired what ought governments to do, that wealth may be increased—the answer is, Very little, and nothing rather than too much. What ought to be done for the increase of population ?—Nothing. In the greater number of states, the best methods of augmenting population and wealth, would consist in abolishing those laws and regulations whereby it has been sought to increase them, provided such abolition were gradually and carefully accomplished. The art therefore is reduced within a small compass: security and freedom is all that industry requires. The request which agriculture, manufactures, and commerce presents to governments, is modest and reasonable as that which Diogenes made to Alexander: " Stand out of my sunshine." We have no need of favour, we require only a secure and open path." See, Oeuvres de Jeremy Bentham, vol. 2 (Bruxelles: L. Hauman, 1829), p. 246; and The Rationale of Reward (London: (London: John and H. L. Hunt, 1825), p. 229.
372 La Politique de Lamartine , vol. 2, p. 164.
373 Bastiat uses the term "la simplification of government" which we have translated as the reduction in size of government" which fits better the contrast he draws between the slogans " Société contrainte, gouvernement compliqué" (coerced society, big or complicated government) and " Société libre, gouvernement simple" (free society, small or simple government).
374 This is a another very early use of the terms disturbing and restorative factors. See the glossary on "Disturbing and restorative Factors."
375 Bastiat makes an issue of slogans and banners in this section so it is worth looking at the slogans he chose to put on the banners of the magazines he edited in the coming years. He was very taken with a phrase used by Lamartine in a speech he gave for the French Free Trade Association in Lyon in August 1847, "la vie à bon marché" (life at low prices). Bastiat made this one of the three slogans he used on the banner of the Association's journal Le Libre-Échange which was edited and largely written by Bastiat and which appeared between 29 Nov. 1846 to 16 April 1848. The others were "on ne doit payer d'impôt qu'à l'État" (one ought to pay taxes only to the state) and "les produits s'achètent avec les produits" (products are bought with other products). In the first magazine he and Molinari and others produced and handed out in the streets of Paris in February and March 1848, La Republique française , the slogans used were "Liberté, Égalité, Fraternité" (Liberty, Equality, Fraternity) and "Justice, Économie, Ordre" (Justice, Economie, and Order). His second revolutionary magazine, Jacques Bonhomme , appeared in June and July 1848 and had as its primary slogan Lamartine's "la vie à bon marché". See, Discours de M. de Lamartine, prononcé dans l'Assemblée marseillaise du libre échange, le 24 août, 1847 (Association pour la liberté des échanges. Lyon: L. Boitel, 1847), p. 6.
376 Bastiat uses term "liberté de transactions" which we have translated here as "freedom to do business."
377 Bastiat is referring to Richard Cobden, the leader of the Anti-Corn Law League, who was successful in getting the Corn Laws repealed in January 1846. Bastiat's first book was on him: Cobden et la ligue, ou l'Agitation anglaise pour la liberté du commerce (Paris: Guillaumin, 1845). See the glossary on "Cobden."
378 This is his first use of the term"la mécanique social" (the social mechanism). Later he preferred to use the very similar phrase "le mécanisme social" (the social mechanism) which he first used in the article "On Competition" (JDE May 1846). See below, pp. 000.
379 This is a reference to the innovative methods used by the Anti-Corn Law League in spreading free trade ideas in Britain. They employed itinerant lecturers to address large crowds in all the major towns, sold or gave away large numbers of leaflets and pamphlets, and sold merchandise. Bastiat spoke about these new techniques very enthusiastically in the introduction to his book and hoped to emulate them in France with a Free Trade Association with which Bastiat became very active in 1846-47.
380 One of the strategies of the Anti-Corn Law League was to encourage supporters to buy land in key boroughs in order to be allowed to vote, in the hope they might tip the election in their favour.
T.317 "Introduction and Post Script to Economic Sophisms" (March 1845, JDE)↩
[CW4 draft 16 June, 2017] SourceT.317 (1845.03) "Introduction and Postscript to Economic Sophisms," JDE , April 1845, T. 11, no. 41, pp. 1, 16. Dated Mugron March, 1845. Written only for JDE article. A new expanded Introduction and Conclusion were written for the book ES1 in November, 1845. Not in OC. Not in CW3.
Editor's IntroductionBastiat wrote this brief Introduction to the first three "economic sophisms" which were published in the Journal des Économistes in April 1845. They were the first of eleven published during 1845 which were later collected, along with eleven other pieces, into his second book Economic Sophisms (First Series) which was published in January 1846. 381 It was very tentative and even apologetic in nature and this requires some explanation given his later high reputation among the Parisian economists. 382
Bastiat came to the attention of the Paris-based political economists when he sent them an unsolicited article on French and English tariff policy at the end of July which he had been working on over the summer of 1844. 383 After a delay of several months (Molinari later revealed that the editor Hippolyte Dussard had ignored it and left it in the in-tray because Bastiat was an unknown person from the provinces with no letter of introduction) 384 it was eventually published in the October issue of the Journal des Économistes . He had also been translating material published by the Anti-Corn Law League and transcripts of their public speeches which the Guillaumin firm would publish in June 1845. 385 This book, Cobden and the League , contained a very long introduction written by Bastiat which was a combination of a history of the free trade movement in Britain and a work of strategy showing how their ideas and methods might be adapted to France. 386 In it he also presented a radical critique of the landed "oligarchy" (his term) which ruled Britain and which had obvious implications for the domination of French politics by the alliance of large landowners and manufacturers which emerged during the 1820s and who were able to maintain a high tariff wall around the French economy for the next several decades.
Bastiat's work caused quite a stir among the political economists who invited him to Paris to meet them and attend a dinner in his honour hosted by the Political Economy Society on 10 May, 1845. 387 In fact, he ended up staying in Paris for three months (May through July) before moving there permanently in March 1846 to work full-time for the national branch of the French Free Trade Association which he helped establish. In March 1845, before he arrived in Paris, he had begun work on a new project to popularise free market economic ideas and debunk protectionist ones, which would become his most famous book Economic Sophisms . The Journal des Économistes agreed to publish these clever and witty pieces under the title of "Economic Sophisms" beginning with three in the April issue, another two in the July issue, and another six in the October issue. 388 This short "Introduction" appeared at the beginning of the first collection in April and has never been reprinted since. Bastiat also tells us in a letter written at this time that he was not happy with the title "Economic Sophisms" and was looking for an alternative. 389 Clearly he did not find a better title and this is how they have come down to us today.
The Introduction is an interesting piece because it shows his hesitation and uncertainty about entering the fray as a "full member" of the economics fraternity which had gathered around the Guillaumin publishing firm since its founding in 1837. He almost apologizes for publishing in their august journal a series of lighter pieces aimed at a less well-informed readership, people who did not read the heavy theoretical tomes or the collections of economic data normally published by Guillaumin. He defends himself by saying that he wanted to reach a younger audience who had not yet been corrupted by protectionist prejudices, something he would mention in a letter to Richard Cobden on 5 July 1847 390 and again in his introduction "To the Youth of France" which preceded the first volume of his treatise on Economic Harmonies (January 1850). 391
Bastiat need not have worried about how he would be received by the Parisian economists as they began to shower him with accolades and job offers as soon as he arrived in May. His correspondence from Paris to his close friend Félix Coudroy back in Mugron during these three months reveal some interesting things. Firstly, that the economists had read all his articles and were willing to discuss economic matters with him as an equal. He expressed relief to Félix that in spite of their geographical and intellectual isolation in Mugron he had held his own in conversations with them. 392
Secondly, that his articles on "Economic Sophisms" and other economic topics were so highly regarded by the editors of the Journal des Économistes that they were given top billing in the issues in which they appeared, pushing the work by other more established economists down the table of contents. 393 This happened in April, June, July, and December 1845, and again in February, April, October, and December 1846. His articles on "Economic Sophisms" also proved popular with readers and there was a spike in subscriptions for the journal after they appeared in print. 394
Thirdly, that the economists were having negotiations with the government about setting up chairs in political economy in the government funded University and Colleges and that they had asked him, given his obvious writing skills, to write a proposal supporting this which they could submit to the government. A faction within the economists, the businessman Horace Say, the editor of the Journal des Économistes (1843-45) Hippolyte Dussard (who had originally ignored his essay on tariffs), the editor of the vast Collection des Principaux Économistes project Eugène Daire, 395 and the president of the Political Economy Society Charles Dunoyer were actively backing Bastiat for one of these Chairs should they become available. 396 In the meantime, there was also talk of getting Bastiat some money to give a course of lectures in one of the private colleges, something which did not happen until the fall of 1847 in the School of Law. 397 Not surprisingly the textbook he used for his lectures was the first edition of the Economic Sophisms .
Fourthly, that he was offered the position of editor of the main journal of the Paris economists, the Journal des Économistes , which had 500-600 subscribers at that time. This was a remarkable thing to offer someone who had just come to their attention ten months before and shows the very high regard they had for him as an economist and a writer. In a long letter to Félix 398 he lists all the positive aspects of such a position: it would enable him to have an impact on the Chamber of Deputies and other organs of the press when it came to economic matters; he would be able to put his own more radical and consistent free market stamp on the editorial policy of the journal which he thought was run by a group of "well-meaning men;" 399 since the journal's readership also included businessmen, financiers, and reform-minded bureaucrats in the customs service, he hoped he would eventually be seen as their "spokesperson" on free trade issues; and since the position would not take up all of his time he would still have time to research and publish his own material which would improve his chances of getting one of the new Chairs of political economy. 400 In spite of these positives things, he ultimately declined the offer for two reasons. Firstly, the salary of 100 louis (fr, 2,000) per annum was a "wretchedly low salary" 401 and secondly, he had his heart set on creating a French Free Trade Association modeled on Cobden's Anti-Corn Law League. This had been the purpose behind his book on Cobden and the League which was about to appear in print (June 1845), especially the Introduction in which he laid out a coherent strategy for doing just this. It was too soon in his view to give up that dream.
Fifthly, the sons of two of the biggest names in the French classical liberal movement of the early nineteenth century, Jean-Baptiste Say (1767-1832) and Charles Comte (1782-1837), approached Bastiat with offers to make use of or even look after their fathers' personal papers. 402 Both J.B. Say and Comte had profoundly influenced Bastiat's thinking and he mentions them many times in his writings. 403 Perhaps this is why Horace Say and Hippolyte Comte both felt they could trust such a sympathetic person like Bastiat, whose way of thinking about economics as part of a much broader liberal social theory, was very much like their fathers' and much less like the more orthodox political economists who made up the Political Economy Society.
And finally, to top off a remarkable first year in Paris, Bastiat was elected a "corresponding" (or junior) member of the 4th section (Économie politique et Statistique) of the Academy of Moral and Political Sciences on 24 January, 1846. 404 He was elected with 20 votes (out of a possible 21) by the other full members of the Academy after Dunoyer had promoted Bastiat's candidature by presenting copies of his two books which had appeared since his arrival in Paris: his book on Cobden and the League (June 1845) and the first series of the Economic Harmonies (January 1846). Bastiat was very proud of this position and included it as part of his credentials on the cover of the books and pamphlets he published subsequently.
So it is the light of this unexpected, rapid, and rather fulsome reception of Bastiat into the circle of the Parisian economists that we should read his touchingly tentative "Introduction" to what would become his most popular and well-known work of economics. Perhaps the reservations he expressed in March 1845 were unwarranted.
TextIf there are still some readers who are willing to pay serious and close attention to works of pure theory concerning the most important economic questions, I have to think that they are to be found particularly among the subscribers to this journal. It is they who have given me the courage, after much hesitation, to publish here a refutation of the main sophisms upon which the prohibitionist or protectionist régime is based. I don't have the foolish presumption to destroy in a few pages the entrenched prejudices which so many good works have scarcely been able weaken, but I hope to instill at least some doubt, especially among those young minds which have not yet become clogged with preconceived ideas. I offer them no ready made solutions but merely some key ideas which they will be able to take up in the future. Even if one cannot force the reader to reach a given end, it is still quite something to put them on the right path. …
P.S. The discussion which has just taken place in the Chamber of Deputies on the subject of the customs legislation 405 provides ample food for thought for this survey of economic sophisms . I ask your permission to continue it in a future article. 406
381 See, CW3, pp. 1-110.
382 He was still expressing considerable self-doubt about his abilities as an economist in the "Draft Preface to the Harmonies " (Fall, 1847) in CW1, pp. 316-20.
383 T.19 "On the Influence of French and English Tariffs on the Future of the Two People" (De l'influence des tarifs français et anglais sur l'avenir des deux peuples), JDE , T. IX, Oct. 1844, pp. 244-71 [OC1, pp. 334-86] [CW6].
384 G. de Molinari, "Nécrologie. Frédéric Bastiat, notice sur sa vie et ses écrits," JDE, T. 28, N° 118. 15 février 1851, pp. 180-96. Molinari said they had thought he was "a simple piece of quartz" from the depths of Les Landes not realising that he was in fact "this diamond," p. 184.
385 Bastiat, Cobden et la ligue, ou l'Agitation anglaise pour la liberté du commerce (Paris: Guillaumin, 1845). Bastiat's Introduction will appear in CW6 (forthcoming). An edited version of the Introduction was published in the JDE: T.28 (1845.06.15) "The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom" (Situation économique de la Grande-Bretagne. Réformes financières. Agitation pour la liberté commerciale), JDE , June 1845, T. XI, no. 43, pp. 233-265.
386 He uses the phrase "cette tactique d'agitation" (this tactic of demonstration or protest) in a letter to Horace Say: Letter 33. Letter to Horace Say, 24 November 1844, CW1, pp. 53-55. Quote on p.54.
387 He talks about this meeting in Letter 37. Letter to Félix Coudroy, Paris May, 1845, CW1, pp. 59-61. See the glossary entry on "The Political Economy Society."
388 The next installment of Economic Sophisms appeared in July ("Equalizing the Conditions of Production" and "Our Products are weighed down with Taxes") and October ("The Balance of Trade," "Petition by the Manufacturers of Candles," "Differential Duties," "An immense Discovery!!!," "Reciprocity," and "Nominal Prices". These 10 short pieces which first appeared in the Journal des Économistes , along with 11 others, were published at the end of the 1845 as the first series of Economic Sophisms published by Guillaumin. The second series would appear in January 1848.
389 Letter 41. Letter to Félix Coudroy (n.d.), CW1, pp. 66-67. The context tells us the time it must have been written.
390 Letter 80. Letter to Richard Cobden, Paris, 5 July 1847, CW1, pp. 130-31. He stated: "Being struck by the danger in the path along which the young were rushing headlong, I took the initiative of asking young people to listen to me. I gathered together students from the schools of law and medicine, i.e., the young men who, in a few years' time, will be governing the world, or France at least. They listened to me with goodwill and friendliness but, as you will readily understand, without understanding me very well. No matter; since the experiment has been started I will continue it to the end."
391 See, "To the Youth of France," in EH (FEE edition), pp. xxi-xxxvii. LF edition CW5 (forthcoming). He was still saying the same thing to Fontenay in July 1850: "Middle-aged men (around the Journal des Économistes ) 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." See Letter 180. Letter to M. de Fontenay, Les Eaux-Bonnes, 3 July 1850, CW1, pp. 255-56.
392 Letter 37, CW1, p. 59.
393 Letter 37, CW1, p. 59.
394 Letter 37, CW1, p. 63.
395 Eugène Daire (1798-1847) was of all things a tax collector who revived interest in the heritage of eighteenth- and early nineteenth-century free-market economics. He came to Paris in 1839, met Guillaumin, discovered the works of Jean-Baptiste Say, and began editing the fifteen-volume work, Collection des principaux économistes (1840-48). It included works on eighteenth-century finance, the physiocrats, Turgot, Adam Smith, Malthus, Jean-Baptiste Say, and Ricardo. He was a founding member of the Political Economy Society.
396 Letter 42. Letter to Félix Coudroy, Paris, 3 July 1845, CW1, pp. 67-69. Quote on p. 68.
397 Letter 42, CW1, p. 68.
398 Letter 40. Letter to Félix Coudroy,16 June 1845, CW1, pp. 65-66.
399 He describes them as "an accidental meeting of well-meaning men" in Letter 38. Letter to Félix Coudroy, Paris, 23 May, 1845, CW1, pp. 61-62. Quote on p. 61.
400 Bastiat was already beginning to think of writing a theoretical treatise of his own since the "Economic Sophisms" were proving to be popular with ordinary readers and he had gained the esteem and recognition of many of his colleagues. He planned to call it Social Harmonies. See, Editor's Introduction to "A Note on Economic and Social Harmonies" (June 1845), below, pp. 000.
401 Letter 40, CW1, p. 65.
402 Letter 42, CW1, pp. 69, and Letter 43, p. 71. See the glossary entry on "Charles Comte."
403 Bastiat described J.B. Say as "his intellectual father" and called Charles Comte's Traité de la propriété (1834) one of the few books he might take with him if he were marooned on a desert island. See Letter 33, CW1, p. 53; and T.143 "On Mignet's Eulogy of M. Charles Comte" (July 1847), below, pp. 000.
404 The Académie des sciences morales et politiques (the Academy of Moral and Political Sciences) is a French learned society and one of the five academies which comprise the Institute of France. The Academy was founded in 1795 as part of a restructuring of the pre-revolutionary Royal Academies. It was reconstituted by King Louis-Philippe in October 1832 with five sections. Bastiat was made a "corresponding" (or junior) member of the 4th section (Political and Statistical Economics) on 24 January, 1846. See the glossary on "The Academy of Moral and Political Sciences."
405 Can't find in Archives parlementaires ??? Missing vol. 76.
406 The next installment of Economic Sophisms appeared in July ("Equalizing the Conditions of Production" and "Our Products are weighed down with Taxes") and October ("The Balance of Trade," "Petition by the Manufacturers of Candles," "Differential Duties," "An immense Discovery!!!," "Reciprocity," and "Nominal Prices". These 10 short pieces which first appeared in the Journal des Économistes ,along with 11 others, were published at the end of the 1845 as the first series of Economic Sophisms published by Guillaumin. The second series would appear in January 1848.
T.20 "On the Book by M. Dunoyer. On The Liberty of Working" (March, 1845)↩
[CW4 draft 16 June, 2017] SourceT.20 (1845.03) "On the Book by M. Dunoyer. On The Liberty of Working " (Sur l'ouvrage de M. Dunoyer, De la Liberté du travail ). Unpublished draft, possibly written in May after Bastiat met Dunoyer for the first time at his welcome dinner and Dunoyer asked him to write an article on it for the Journal des débats . Bastiat never finished it. [OC1.10, pp. 428-33.] [CW4]
Editor's IntroductionCharles Dunoyer (1786-1862) and his colleague Charles Comte (1782–1837) 407 had a profound and lasting impact on Bastiat's thinking as he reveals in several letters. 408 Dunoyer's latest book De la liberté du travail (On the Liberty of Working) (1845) had been published in February 1845 and we know from a letter Bastiat wrote to Dunoyer on March 7, 1845 that he had received a copy of it in Mugron. 409 This undated draft may well have been written at this time. In his letter, Bastiat thanks Dunoyer for his kind words 410 about his own work as he had written two pieces for the Journal des Économistes in late 1844 and early 1845, and had a book on Cobden and the League about to be published by Guillaumin in June. 411 His essay criticising Lamartine's work on the same topic as Dunoyer's book would have caught Dunoyer's attention. The two men met for the first time at Bastiat's welcome dinner in Paris in May 1845 412 and in his letter to Félix Coudroy relating what happened at the dinner, Bastiat with some excitement tells him that Dunoyer had asked him to write an article on his book for the prestigious Journal des débats because he thought that Bastiat was "éminemment propre à faire apprécier son travail" (eminently qualified to evaluate his work). It is probably with this task in mind that Bastiat wrote this draft. However, Bastiat was still somewhat in awe of the Parisian political economists and was uncertain about his own talents as an economist and never finished the article. Dunoyer's book was however reviewed in the Journal des débats by the economist Michel Chevalier. 413
Charles Dunoyer and Charles Comte were two of the leading liberal social theorists of the Restoration and July Monarchy. Bastiat acknowledged their importance to his own intellectual development in this unpublished book review of Dunoyer's book and in his essay on Mignet's eulogy of Comte given to commemorate the tenth anniversary of his death in 1847. 414 After successfully collaborating on one of the key liberal journals of the Restoration period, Le Censeur (1814-15) and its sequel Le Censeur européen (1817-19), both men turned to writing detailed examinations of the social, legal, and economic institutions and ideas which made liberty possible. Comte focused on law and property in the Traité de législation (Treatise on Legislation) (1826) and the Traité de la propriété (Treatise on Property) (1834); 415 while Dunoyer focussed on the historical and economic evolution which society had gone through to get to its current state of emergent industrialism, in a series of books beginning in 1825 and culminating in De la liberté du travail (1845) which is the object of Bastiat's attention in this short review. 416
In the Preface written in January 1845 Dunoyer noted the long gestation period of his ideas, which went back even further than the 20 years quoted by Bastiat in his opening lines. Dunoyer says he began thinking about the deeper social and intellectual reasons behind the existence of authoritarian government even as he was fighting against its current manifestation in the restored Bourbon monarchy in 1815. He came to the conclusion that his and Comte's efforts to change the face of authoritarian government would not be successful unless the underlying reasons why people demanded or tolerated authoritarian governments had been addressed. This began a long and difficult research program lasting nearly 30 years in which he wanted to expand the domain of political economy away from an exclusive focus on the creation and distribution of wealth, which was its inheritance from Adam Smith and J.B. Say, into a new dimension of "social economy." 417
Dunoyer also wanted to shift attention away from an exclusive concern about the form of government, whether monarchical or republican, authoritarian or democratic, to a deeper sociological and intellectual understanding of why societies and economies took the forms they did. He believed that violence on a political or societal level could only be explained (and thus ultimately eliminated) only when it was understood why individuals engaged in violence on an inter-personal level. As he asks at one point: 418
Les excès reprochés au pouvoir, disais-je, sont le fait de la population, de la population considérée dans sa vie publique, dans son activité collective. Mais n'y a-t-il d'oppressions dans un pays que celles que la population y exerce politiquement? Les violences que se font les individus dans leurs rapports mutuels ne sont-elles pas des oppressions aussi, et des oppressions absolument de la même nature et tenant a la même cause, c'est-a-dire a l'imperfection de leurs facultés , au mauvais emploi qu'ils en font les uns à l'égard des autres et à l'état peu avancé de leur morale de relation? Il ne leur suffirait donc pas, pour être libres, de se bien conduire collectivement, politiquement? Il faudrait donc encore que, dans leurs rapports privés, ils sussent mieux régler l'emploi de leurs forces? [vol. 1, p. 3] | I would say that the much criticised excesses of power are done by the people, by the people viewed in their public life, in their collective activity. But are the acts of oppression in a country only those which the people exercise politically? Aren't the violent acts done by the people in their relations with each other also acts of oppression, acts which are of the exact same nature and which stem from the exact same cause, that is to say from the imperfect exercise of their abilities (faculties), the bad use that they make of one ability with respect to the others, and to the poorly developed state of their moral beliefs concerning their mutual relations? Therefore, it would not be sufficient for them, in order to become free, to conduct themselves well collectively and politically. Wouldn't it also be necessary that, in their private relationships with each other, they would have to know how to better control the use of their power (strength)? |
Dunoyer had a quite different theory of liberty than many of his fellow liberals like Bastiat in that he did not define liberty as the absence of coercion but the ability of individuals to use their powers to achieve the goals they have set themselves. The following statement must have unsettled Bastiat a little, as his view of liberty was very firmly grounded in the theory of natural rights: 419
Ce que j'appelle liberté, dans ce livre, c'est ce pouvoir que l'homme acquiert d'user de ses forces plus facilement à mesure qu'il s'affranchit des obstacles qui en gênaient originairement l'exercice. Je dis qu'il est d'autant plus libre qu'il est plus délivré des causes qui l'empêchaient de s'en servir, qu'il a plus éloigné de lui ces causes, qu'il a plus agrandi et désobstrué la sphère de son action. | What I call liberty in this book is the ability that man has acquired to use his powers more easily as he frees himself from the obstacles which ordinarily hinder him. I say that he is free to the extent that he has removed the causes of what was preventing him from making use of them (forces), to the extent that he has been able to keep these causes at bay, to the extent that he has increased his sphere of action and cleared away any obstacles within it. |
Perhaps as a result of his frustrations resulting from the failure of the liberals to develop a coherent and effective theory of limited government in the restoration period, Dunoyer had given up the attempt to derive liberty from first principles. He dismisses this as the work of "dogmatic philosophers who only speak about rights and duties." 420 He, on the other hand, wanted to focus instead on "how it happens that men are free, under what conditions can they be free, what combination of knowledge and sound moral habits make it possible for men to carry out private industry, how do they raise themselves up to the point where they can engage in political activity?"
This shift from a moral defence of liberty to a sociological and historical study of how free societies in fact emerged, or were on the cusp of emerging, was later regretted by Bastiat and Molinari when they came to debating socialists during the 1848 Revolution. Both noted that political economy needed to be defended on moral, scientific, and political grounds and by not doing so, writers like Dunoyer had opened up the liberals to damaging criticism from the left and the right. However, the extraordinary historical and sociological detail drawn upon by Dunoyer and the way he blended this with economic analysis, may have inspired Bastiat to plan the writing of his own History of Plunder which would follow the completion of his treatise on economics, the Economic Harmonies .
In a footnote Dunoyer recalls how the first part of his project was published as L'Industrie et la morale considérées dans leurs rapports avec la liberté in 1825 and an enlarged sequel as Nouveau traité d'économie sociale in 1830. Unfortunately, the latter volume did not receive the attention it deserved because the outbreak of revolution in July of that year distracted potential readers and a fire in the bookshop destroyed nearly all the copies except for a handful of review copies. The full and complete version did not see the light of day until early 1845. It quickly became one of the most important books in the arsenal of the political economy movement just as Bastiat was taking up residence in Paris.
It should be noted that in this essay Bastiat uses for the first time the term "harmonique" (harmony) which would become so central to his thinking later. He uses it while criticising socialists for not seeing that " a marvelous, harmonious, and progressive order (can) result from the to and fro of social groups and the free action and reaction of human interests." There is also his first use of another key concept, namely that exchange is the exchange of one service for another ("service pour service") in his statement that "from the economic point of view, society is an exchange of services that are paid for." Thus, in this essay and his "Letter to Lamartine" (January 1845) many of his original economic insights appear for the first time in print. 421
On the Book by M. Dunoyer, On The Liberty of Working"I had the idea for this book twenty years ago", says Mr. Dunoyer. 422 Certainly, during this twenty year period, there was not one year in which this major work might have been published for the people with more relevance; and I venture to believe that it is destined to bring science back to its proper path. A disastrous theoretical system seems to have taken a dangerous hold over people's minds. A figment of the imagination, welcomed by lazy minds and disseminated by fashion, encouraging praiseworthy but ill thought-out sentiments of philanthropy in some and attracting others by its misleading promise of prompt and easily-obtained enjoyment, this theory has taken hold like some epidemic. It is breathed in with the air and caught by contact with the world; even science no longer has the fortitude to resist it. Science bows before it, salutes it, smiles at it, flatters it and yet it knows that this system could not stand up for one minute to the severe and impartial examination of reason. This system is known as Socialism . It consists in rejecting any providential designs in the governance of the moral world; in supposing that a marvelous, harmonious, 423 and progressive order cannot result from the to and fro of social groups and the free action and reaction of human interests; and in dreaming up artificial forms of organization that need only the consent of the human race to come into force. Will we all become Moravian Brethren ? 424 Will we lock ourselves away in a phalanstery? 425 Will we abolish only heredity, or will we also rid ourselves of property and the family? We have not made up our minds on this and, for the moment, there is only one thing whose exclusion has been unanimously decided upon, and that is freedom.
Away with freedom!
Down with freedom! 426
Everyone agrees on this point. All that is left for the billion people that live on our planet is to make the choice, from the thousand plans that have seen the light of day, of the one to which they would prefer to be subjected unless, however, there is a better one among those that hatch each morning. It is true that this choice presents a few difficulties, for the Socialists are far from all having the same social projects , even though they have taken the same name. Here is Mr. Jobard 427 who thinks that the notion of property does not extend far enough. He wants to extend it to the most fleeting literary or artistic thoughts. Then we have Saint-Simon 428 , who does not accept even material property. Between them we have Mr. Blanc 429 , who duly recognizes property of the goods produced by work (except for the sharing of his invention), while castigating as impious and sacrilegious anyone who draws the slightest profit from a book, painting or musical score - happily submitting himself to current practice until his theory triumphs.
Amidst the countless births of these Social Plans , begot from the over-heated imaginations of our modern would-be Teachers of Nations , reason finds indescribable solace at feeling itself being brought back by Mr. Dunoyer's book to an examination of, yes, another Social Plan , but one created by Providence itself; at seeing the development of the fine harmonies it has inscribed in the heart of man, in his organization and in the laws of his intellectual and moral nature. People can say forever that there is no poetry in experimental science; this is not true, for it would be the same as saying that there is no poetry in the work of God.
Do people think that Cuvier's geological discoveries 430 do not lead us to admire the glimpse they permit us of the Creator's designs and most ingenious inventions, just because they were due to laborious and patient observation, or because they agreed with factual realities?
The obligatory point of departure of modern reformers 431 (whether they acknowledge this or not) is that society is deteriorating under the influence of natural laws and that these laws tend increasingly to introduce poverty and inequality in men; for this reason, with what mournful pictures do they not darken the initial pages of their books! To accept the principle of perfectibility would be to create in advance a blunt rebuttal of their claim to remake the world. If they acknowledged that in the laws of Responsibility and Solidarity there is a force that overwhelmingly tends to make men improve and become equal, why would they rise up against these laws, they who profess to aspire precisely to this result? Their task would be limited to studying them, discovering their harmony, making them known and pointing out and combating the obstacles they still encounter in the errors in men's minds, the vices in their hearts, popular prejudices, and the abuses of power and authority.
The best thing with which to confront the Socialists is therefore a simple description of these laws. This is what Mr. Dunoyer does. But after all, since people often differ over things only because they do not agree on the meaning of words, Mr. Dunoyer begins by defining what he understands by freedom . 432
Freedom is the power to act . Therefore each obstacle that is overcome, each restriction that is overthrown, each morsel of experience gained, each piece of learning that lights up the intellect, each virtue that increases confidence, friendship and strengthen the social bonds is one more freedom conquered in the world, for there is nothing in all these things that is not a power to act , a peaceful power and one that is beneficial and civilizing.
Mr. Dunoyer's first volume is devoted to solving the following question of fact: Has the world made progress under the sway of the law of freedom, or has it not? He then studies in turn the various social states through which it has been man's destiny to pass, the state of the nations that hunt, keep flocks, farm, or carry out industry and to which correspond the states of cannibalism, slavery, servitude, and monopoly. He shows the human race rising up toward well-being and morality as it becomes more free ; he proves that at each phase of its existence the harms that it has endured have been caused by the obstacles that it encountered in its ignorance, errors and vices. He identifies the principle that has enabled it to overcome them and, finally turning toward the future the torch that has shown him the past, he sees society making unceasing progress without having to be subjected to forms of organization that have recently been invented, on the sole condition that it wages unceasing combat against both the fetters that still encumber human production and the ignorance that obstructs men's minds and what remains of lack of foresight, injustice, and evil passions in their habits.
In this way, the author gives short shrift to the old sophism, unworthy of science and recently brought back from the most barbarous of ages, which consists in shoring up error by drawing on isolated and unfortunately only too numerous facts which serve to induce a regression of the human race. Faithful to his method, he works out the progress made, attributes it to its genuine sources and shows that, by developing these and destroying, rather than resurrecting obstacles, extending, and not restricting the principles of responsibility, strengthening, not weakening the resilience of solidarity, and by educating, improving, and liberating ourselves, we will move on toward fresh progress.
Once he has studied the human race through its various stages, Mr. Dunoyer considers it in the light of its various functions.
At this point, he needed to set out systematically the names of these functions. We have no hesitation in saying that those used by the author are more rational, more methodical, and above all more comprehensive than those traditionally used by economic science. 433
If you divide production either into agriculture, manufacturing and commerce or, like Mr. de Tracy, 434 you reduce it to two sectors, production that transforms and production that transports , it is clear that you are leaving outside the scope of economic science, a host of social functions, in particular all those that are carried out between people. From the economic point of view, society is an exchange of services 435 that are paid for and in this respect, lawyers, doctors, soldiers, magistrates, teachers, priests, and civil servants are just as much a part of economic science as traders and farmers. 436
We all work for one another, we all exchange services with each other, and economics is incomplete if it does not include all forms of service and all forms of work.
We therefore believe that political economy owes Mr. Dunoyer a debt for establishing a classification that, without exceeding its natural limits, has the merit of opening new horizons and new fields for research, especially those of an intellectual and moral order, and wresting it from the materialistic confinement in which greater minds do not care to languish for any length of time.
Therefore, when Mr. Dunoyer, after having sought to identify the social states that have been most favorable to the human race, examines the conditions under which each function develops with most power and freedom, one senses that a moral principle has come to assume its proper place in economic science. He shows that intellectual forces and individual virtue or virtuous relationships with others are no less essential to the success of our projects than the forces of industry. The choice of time and place, knowledge of the market, order, foresight, a mind that follows through, probity, and saving, all contribute as genuinely to the swift accumulation, fair distribution, and judicious consumption of wealth as capital, skill and human activity.
We would not be so bold as to say that in the huge tapestry traced by the author there have not crept in a few comments on detail that might be contested or still less that he has exhausted his boundless subject. However, his method is a good one, the limits to the science well established, and the dominant principles clearly defined. In this huge field there is room for many workers, and if we were to express our thoughts in full, we think this area of study is one where both those meticulous minds who have an unshakeable attachment to the imperatives of logic which are required in that part of political economy which is accessible to rigorous demonstrations, and those ardent spirits whose idolatry of beauty and goodness draws them instead to the realms of utopia and fantasy, will be able to come up against each other.
407 See the glossary entries on "Dunoyer" and "Comte."
408 We have evidence that Bastiat was reading Dunoyer as early as 1827 (Letter to Coudroy, 9 April 1827) where he refers to his theory of "industrialism" and that he was attempting to write to him on the eve of his coming to Paris in the second half of 1844, hoping that Horace Say might make the introduction on his behalf. He finally met Dunoyer at a dinner held in Paris to welcome Bastiat's arrival in May 1845 (Letter to Coudroy, May, 1845). This was the first of several dinners and meetings with the man whose work he so much admired.
409 Letter 34. "Letter to Charles Dunoyer (Mugron, 7 March 1845), CW1, pp.55-56.
410 There is no reference to Bastiat in the printed book but Bastiat may be referring to a hand written note Dunoyer may have included with the copy he sent Bastiat.
411 See, T.19 [1844.10.15] "On the Influence of French and English Tariffs on the Future of the Two People" (De l'influence des tarifs français et anglais sur l'avenir des deux peuples), JDE , T. IX, Oct. 1844, pp. 244-71 [OC1, pp. 334-86] [CW6]; and T.23 [1845.01.15] "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to Work (Un économiste à M. de Lamartine. A l'occasion de son écrit intitulé: Du Droit au travail), JDE , Feb. 1845, T. 10, no. 39, pp. 209-223 [OC1, pp. 406-28]
412 Letter 37. Paris, May 1845. To Félix Coudroy (OC1, pp. 50-52)
413 Michel Chevalier, "Variétés", Journal des débats , 21 February, 1845, p. 3.
414 See below, pp. 000.
415 Comte, Charles, Traité de législation, ou exposition des lois générales suivant lesquelles les peuples prospèrent, dépérissent ou restent stationnaire , 4 vols. (Paris: A. Sautelet et Cie, 1827). A second revised edition was published in 1835 by Chamerot, Ducollet of Paris in 4 vols. to coincide with the publication of its sequel, the Traité de la propriété . Comte, Charles, Traité de la propriété , 2 vols. (Paris: Chamerot, Ducollet, 1834).
416 As is often the case in this period, the lengthy subtitles to the works reveal much about the intention of the author: Dunoyer, Charles, L'Industrie et la morale considérées dans leurs rapports avec la liberté (Industry and Morality considered in the Relationship with Liberty) (Paris: A. Sautelet et Cie, 1825); Nouveau traité d'économie sociale, ou simple exposition des causes sous l'influence desquelles les hommes parviennent à user de leurs forces avec le plus de LIBERTÉ, c'est-à-dire avec le plus FACILITÉ et de PUISSANCE (A New Treatise on Social Economy: or a simple Account of the Causes under the Influence of which Mankind comes to use their Powers with the most Liberty, that is to say with the greatest Skill and Strength) (Paris: Sautelet et Mesnier, 1830), 2 vols.; and De la liberté du travail, ou simple exposé des conditions dans lesquelles les forces humaines s'exercent avec le plus de puissance (On the Liberty of Working, or a simple Account of the Conditions under which Mankind's Powers are exercised with the greatest Strength) (Paris: Guillaumin, 1845).
417 See the glossary entry on "Social Economy."
418 Dunoyer, De la liberté du travail , vol. 1, p. 3.
419 Dunoyer, De la liberté du travail , vol. 1, p. 25.
420 Dunoyer, De la liberté du travail , vol. 1, p. 17.
421 See the Editor's Introduction to his "Letter to Lamartine" above, pp. 000. Also the glossaries on "Harmony and Disharmony" and "Service for Service."
422 Dunoyer, De la liberté du travail , vol. 1, Preface, p. xv.
423 This is the first time Bastiat uses the term "harmonique" (harmonious) which would later become the lynch pin of his theoretical work. See the glossary entry on "Harmony and Disharmony."
424 The Moravian Brethren was a Christian sect founded by the followers of Jan Hus (1370-1415) who was a Czech priest and dean of the Prague faculty of theology. He was burned at the stake for heresy. During the 18th century the Moravians established settlements where communal living and simplicity of lifestyle based upon limited personal property was practiced.
425 A Phalanstery. was a self-sustaining community of the followers of the utopian socialist Charles Fourier. He envisaged that new communities of people would spring up in order to escape the injustices of free-market societies and industrialism. He called his new self-supporting communities "phalanxes," which would consist of about 1,600 people who would live in a specially designed building called a "phalanstère," or "phalanstery." See the glossary entries for "Fourier" and "Phalanstery."
426 "Fi de la liberté ! À bas la liberté !" is the refrain from a poem called "La Liberté. Première chanson faite à Sainte-Pélagie" (Janvier 1822) by the poet and political song writer Pierre-Jean de Béranger (1780–1857) when he was in prison for offending the censors. He mocks his jailers by listing their crimes against him and pretending to denounce liberty.In Béranger's Songs of the Empire, the Peace, and the Restoration , trans. Robert B. Brough (London: Addey and Co., 1854), pp. 109-11. Chansons de P.J. Béranger, précédées d'une notice sur l'auteur et d'un essai sur ses poésies par M. P. Tissot (Paris: Perrotin, 1829), Tome II. pp. 13-15. See the glossary on Béranger.
427 Marcellin Jobard (1792-1861) was a Belgian lithographer, photographer, and inventor. From 1841 to 1861 he was the director of the Royal Belgian Museum of Industry in Brussels. He was a prolific inventor (with 75 patents) and took up the cause of defending the property rights of inventors. He wrote dozens of pamphlets expressing his views in a very idiosyncratic manner.
428 See the glossary entry "Saint-Simon."
429 See the glossary entry on "Blanc."
430 George Cuvier (1769-1832) was a French naturalist who specialised in the areas of comparative anatomy and paleontology. In the field of geology he was an exponent of the theory of catastrophism in which period cataclysmic events led to the radical transformation of the earth's landscape and the mass extinction of animal species.
431 Bastiat no doubt had in mind some of the people discussed by Louis Reybaud, Études sur les réformateurs ou socialistes modernes: La société et le socialisme, les communistes, les chartistes, les utilitaires, les humanitaires (Paris: Guillaumin, 1843). 3 vols.
432 Dunoyer, De la liberté du travail , vol. 1, Livre 1. "Ce que l'auteur entend par le mot liberté," pp. 23-43.
433 Dunoyer's classification of economic activity was threefold: industries which were involved with transforming "things" (such as mining, transport, manufacturing, and agriculture), industries which were concerned with human well-being (such as medicine, culture, education, and moral development), and activities which were less "industrial" but still an integral part of what he called the "social economy" (such as voluntary associations, trade, and charity and other forms of gift giving). De la liberté du travail , vol. 1, pp. 15-16.
434 Destutt de Tracy, Traité d'économie politique (Paris: Bouguet et Lévi, 1823), Chap. II. "De la formation de nos richesses, ou de la production utile," p. 88. "Quand à la classe laborieuse et directement productive de toutes nos richesses, comme son action sur tous les êtres de la nature se réduit toujours à les changer de forme ou de lieu, elle se partage naturellement en deux: les manufacturiers (y compris les agriculteurs), qui fabriquent et façonnent; et les commerçans, qui transportent, car c'est là la véritable utilité de ces derniers: s'ils ne faisaient qu'acheter et revendre , sans transport et, sans détailler, sans rien faciliter , ils ne seraient que des parasites incommodes, des joueurs , des agioteurs. Nous parlerons bientôt des uns et des autres, et nous verrons promptement combien notre manière de considérer les choses répand de• lumières sur toute la marche de la société. Pour le moment, il est encore nécessaire d'expliquer un peu davantage en quoi consiste cette utilité, notre seule production, laquelle résulte de tout travail bien entendu, et de voir comment elle s'apprécie, et comment elle seule constitue la valeur de tout ce que nous appelons nos richesses."
435 The idea that exchange was in fact the exchange of "service pour service" (a service for a service) was one of Bastiat's key insights which he developed more fully in the Economic Harmonies . Here is his first use of this idea although expressed in a slightly different form, "La société, au point de vue économique, est un échange de services rémunérés". See the glossary entry on "Service for Service."
436 Bastiat defends the idea that people like doctors, lawyers, and teachers also do productive work creating what J.B. Say called "non-material goods" See Say's definition in Traité d'économie politique ou Simple exposition de la manière dont se forment, se distribuent et se consomment les richesses , (Paris: Rapilly, 1826), Volume 3, pp. 312-13: "Produit Immatériel. C'est toute espèce d'utilité qui n'est attachée à aucun corps matériel, et qui, par conséquent, est nécessairement consommée au même instant que produite. Les produits immatériels sont, comme les autres produits, le résultat d'une industrie, ou d'un capital, ou d'un fonds de terre, ou de tous les trois ensemble. L'utilité qu'on retire du service d'un médecin, d'un avocat, d'un fonctionnaire civil ou militaire, est un résultat de leur industrie; L'utilité qu'on retire d'une maison , ou d'un meuble durable, de l'argenterie, est un résultat du service d'un capital; L'utilité ou le plaisir qu'on retire d'une route ou d'un jardin d'agrément, sont le résultat du service d'un fonds de terre, accru du capital consacré à leur arrangement." Trans . ???
T.24 (1845.04.15) "Economic Sophisms: Abundance and Scarcity" (JDE, April 1845)↩
SourceT.24 (1845.04.15) "Abundance and Scarcity" (Abondance, disette), Journal des Économistes, April 1845, T. 11, no. 41, p. 1-8; also ES1.1 [OC4.1.1, pp. 5-14.] [CW3 - ES1.1]
TextI. Abundance and Scarcity [April 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Abondance, disette" (Abundance and Scarcity) [JDE, April 1845, T. 11, p. 1-8]
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 5-14.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
What is better for mankind and society, abundance or scarcity?
What, people will exclaim, is that a question to ask? Has it ever been stated or is it possible to assert that scarcity is the basis of man's well-being?
Yes, that has been claimed; yes, it has been asserted. It is asserted every day, and I have no fear in saying that the theory of scarcity is by far the more popular. It is the subject of conversation in the journals, books, and on the rostrum, and although this may appear extraordinary it is clear that political economy will have fulfilled its task and its practical mission when it has popularized and made irrefutable this very simple proposition: "Mankind's wealth lies in the abundance of things."
Do we not hear this everyday: "Foreigners are going to swamp us with their products"? We therefore fear abundance.
Has M. de Saint-Cricq15 not said: "Production is too high"? He therefore feared abundance.
Do workers not smash machines? They are therefore terrified of excess production or, in other words, abundance.
Has M. Bugeaud16 not pronounced these words: "Let bread become expensive and farmers will be rich!"? Well, bread can become expensive only if it becomes scarce; therefore M. Bugeaud was recommending scarcity.
Has not M. d'Argout17 used the very fact of the productive capacity of the sugar industry as an argument against it? Has he not said: "Beetroot has no future, and its cultivation could not be expanded, since if just a few hectares per department were allocated to it this would meet the entire consumption needs of France." Therefore, in his eyes, good lies in lack of production, or scarcity, and harm in fertility and abundance.
Do La Presse,18 Le Commerce,19 and the majority of daily newspapers not publish one or more articles each morning to demonstrate to the Chambers and the government that it would be sound policy to raise the price of everything by law through the operation of tariffs? Do the three powers of state20 not comply every day with this injunction from the regular press? Now tariffs raise the price of things only because they decrease the quantity offered in the marketplace! Therefore the papers, the Chambers, and the government put into practice the theory of scarcity, and I was right to say that this theory is by far the most popular one.
How has it come about that in the eyes of workers, political writers, and statesmen abundance is shown as something to be feared and scarcity as being advantageous. I propose to go back to the source of this illusion.
We note that men become rich to the extent that they earn a good return from their work, that is to say from what they sell at the highest price. They sell at the highest price in proportion to the rarity, that is to say the relative shortage, of the type of good their efforts produce. We conclude from this that, as far as they are concerned at least, scarcity makes them rich. When this reasoning is applied successively to all people who work, the theory of scarcity is thereby deduced. From this we move to its application, and in order to benefit all these people, high prices and the scarcity of all goods are provoked artificially by means of prohibition, restriction, the suppression of machines, and other similar means.
This is also true for abundance. We observe that when a product is plentiful it is sold at a low price and therefore producers earn less. If all producers are in this situation, they all become poor and it is therefore abundance that ruins society. And, since all beliefs attempt to become reality, in a great many countries, we see laws made by men combating the abundance of things.
This sophism, expressed as a general statement, would perhaps have little effect; but when it is applied to a particular order of facts, to such and such a branch of production, or to a given class of workers, it is extremely specious, and this can be explained. It is a syllogism that is not false but incomplete. Now, whatever truth there is in a syllogism is always and necessarily available to cognitive inspection. But the incomplete element is a negative phenomenon, a missing component which is very possible and even very easy not to take into account.
Man produces in order to consume. He is both producer and consumer. The reasoning that I have just set out considers him only from the first of these points of view. From the second, the opposite conclusion would have been reached. Could we not say in fact:
The consumer is all the richer when he buys everything cheaply. He buys things cheaply the more abundant they are; therefore abundance makes him rich. This reasoning, when extended to all consumers, would lead to the theory of abundance!
It is the way in which the concept of trade is imperfectly understood that produces these illusions. If we look to our own personal interest, we will recognize immediately that it has a twin nature. As sellers, our interest is in things being expensive and consequently that things should be scarce; as buyers, what counts is low prices or what comes to the same thing, that things should be abundant. We cannot therefore base a line of reasoning on one or other of these interests without having established which of the two coincides and is identified with the general and constant interest of the human race.
If man were a solitary animal,21 if he worked exclusively for himself, if he consumed the fruit of his labor directly, in a word, if he did not trade, the theory of scarcity would never have been able to infiltrate the world. It is only too obvious that abundance would be advantageous to him, from wherever it arose, either as the result of his industry or the ingenious tools or powerful machines that he had invented or through the fertility of the soil, the generosity of nature or even a mysterious invasion of products which the waves brought from elsewhere and washed up on the beach. Never would a solitary man, seeking to spur on his own work or to secure some support for it, envisage breaking instruments that spared him effort, or neutralizing the fertility of the soil or throwing back into the sea any of the advantageous goods it had brought him. He would easily understand that work is not an aim but a means, and that it would be absurd to reject the aim for fear of damaging the means. He would understand that if he devotes two hours a day to providing for his needs, any circumstance (machine, fertility, free gift, or anything else) that spares him one hour of this work, the result remaining the same, makes this hour available to him, and that he may devote it to increasing his well-being. In a word, he would understand that sparing people work is nothing other than progress.
But trade clouds our vision of such a simple truth. In a social state, with the division of labor it generates, the production and the consumption of an object are not combined in the same individual. Each person is led to consider his work no longer as a means but as an end. With regard to each object, trade creates two interests, that of the producer and that of the consumer, and these two interests are always in direct opposition to each other.
It is essential to analyze them and study their nature.
Let us take a producer, any producer; what is his immediate interest? It lies in these two things, 1. that the smallest possible number of people should devote themselves to the same work as him; 2. that the greatest possible number of people should seek the product of this work; political economy explains this more succinctly in these terms: supply should be very restricted and demand very high, or in yet other terms: that there should be limited competition with limitless markets.
What is the immediate interest of the consumer? That the supply of the product in question should be extensive and demand restrained.
Since these two interests are contradictory, one of them has of necessity to coincide with the social or general interest while the other runs counter to it.
But which should legislation favor as being the expression of public good, if indeed it has to favor one?
To know this, you need only examine what would happen if the secret desires of men were accomplished.
As producers, it must be agreed, each of us has antisocial desires. Are we vine growers? We would be little displeased if all the vines in the world froze, except for ours: that is the theory of scarcity. Are we the owners of foundries? We would want there to be no other iron on the market than what we brought to it, whatever the needs of the public might be, and with the deliberate intention that this public need, keenly felt and inadequately met, would result in our receiving a high price: that is also the theory of scarcity. Are we farm workers? We would say, with M. Bugeaud, "Let bread become expensive, that is to say, scarce and the farmers will get on with their business": this is the same theory of scarcity.
Are we doctors? We could not stop ourselves from seeing that certain physical improvements, such as the improvement in a country's health, the development of certain moral virtues such as moderation and temperance, the progress of enlightenment to the point that each person was able to take care of his own health, the discovery of certain simple drugs that were easy to use, would be so many mortal blows to our profession. Given that we are doctors, our secret desires are antisocial. I do not mean to say that doctors formulate such desires. I prefer to believe that they would joyfully welcome a universal panacea; but this sentiment reveals not the doctor but the man or Christian who, in self-denial, puts himself in the situation of the consumer. As one who exercises a profession and who draws his well-being from this profession, his consideration and even the means of existence of his family make it impossible for his desires, or if you prefer, his interests not to be antisocial.
Do we manufacture cotton cloth? We would like to sell it at a price most advantageous to us. We would readily agree that all rival factories should be prohibited and while we do not dare to express this wish publicly or pursue its total achievement with any chance of success, we nevertheless succeed to a certain extent through devious means, for example, by excluding foreign fabrics in order to reduce the quantity on offer, and thus produce, through the use of force, a scarcity of clothing to our advantage.
We could go through all forms of industry in this way and we would always find that producers as such have antisocial views. "Merchants," says Montaigne, "do good business only when young people are led astray; farm workers when wheat is expensive; architects when houses are ruined; and officers of justice when court cases and quarrels between men occur. The very honor and practice of ministers of religion are drawn from our death and vices. No doctor takes pleasure in the health even of his friends nor soldiers in peace in the town, and so on."22
It follows from this that if the secret wishes of each producer were realized the world would regress rapidly into barbarism. Sail would outlaw steam, oars would outlaw sail and would soon have to give up transport in favor of carts, carts would yield to mules, and mules to human carriers of bales. Wool would exclude cotton and cotton exclude wool and so on, until a scarcity of everything had made man himself disappear from the face of the earth.
Let us suppose for a moment that legislative power and public force were put at the disposal of the Mimerel Committee,23 and that each of the members making up this association had the right to require it to propose and sanction one little law: is it very difficult to guess to what codes of production the public would be subjected?
If we now consider the immediate interest of the consumer we will find that it is in perfect harmony with the general interest and with what the well-being of humanity demands. When a buyer enters the market, he wants to find it with an abundance of products. That the seasons are propitious to all harvests, that increasingly wonderful inventions bring a greater number of products and satisfactions within reach, that time and work are saved, that distance dissolves, that a spirit of peace and justice allows the burden of taxes to be reduced, and that barriers of all sorts fall: in all this the immediate interest of the consumer runs parallel with the public interest properly understood . He may elevate his secret desires to the level of illusion or absurdity without his desires ceasing to be humanitarian. He may want bed and board, hearth and home, education and the moral code, security and peace, and strength and health to be obtained effortlessly, without work or measure, like dust in the road, water in the stream, the air or the light that surrounds us, without the achievement of such desires being contrary to the good of society.
Perhaps people will say that if these desires were granted, the work of the producer would be increasingly restricted and would end by ceasing for lack of sustenance. Why though? Because, in this extreme supposition, all imaginable needs and all desires would be completely satisfied. Man, like the Almighty, would create everything by a single act of will. Would someone like to tell me, on such an assumption, what would there be to complain about in productive economic activity?
I imagined just now a legislative assembly made up of workers,24 of which each member would formulate into law his secret desire as a producer, and I said that the code that would emerge from this assembly would be systematic monopoly, the theory of scarcity put into practice.
In the same way, a Chamber in which each person consults only his immediate interest as a consumer would lead to the systematic establishment of freedom, the suppression of all restrictive measures, and the overturning of all artificial barriers, in a word, the realization of the theory of abundance.
From this it follows:
That to consult the immediate interest of production alone is to consult an antisocial interest;
That to make the immediate interest of consumption the exclusive criterion is to adopt the general interest.
May I be allowed to stress this point of view once more at the risk of repeating myself?
There is radical antagonism between sellers and buyers.25
Sellers want the object of the sale to be scarce, in short supply and at a high price;
Buyers want it to be abundant, available everywhere at a low price.
The laws, which ought at least to be neutral, take the side of sellers against buyers, of producers against consumers, of high prices against low prices,26 and of scarcity against abundance.
They act, if not intentionally at least in terms of their logic, according to this given assumption: A nation is rich when it lacks everything.
For they say: "It is the producer we should favor by ensuring him a proper market for his product. To do this, we have to raise its price. To raise its price, the supply has to be restricted and to restrict the supply is to create scarcity."And look: let me suppose that right now when these laws are in full force a detailed inventory is taken, not in value but in weight, measures, volumes, and quantities of all the objects existing in France that are likely to satisfy the needs and tastes of her inhabitants, such as wheat, meat, cloth, canvas fuel, colonial goods, etc.
Let me further suppose that on the following day all the barriers that prevent the introduction into France of foreign products are overturned.
Lastly, in order to assess the result of this reform, let me suppose that three months later, a new inventory is taken.
Is it not true that we would find in France more wheat, cattle, cloth, canvas, iron, coal, sugar, etc. on the second inventory than at the time of the first?
This is so true that our protective customs duties have no other aim than to prevent all of these things from reaching us, to restrict their supply and to prevent a decrease in their price and therefore their abundance.
Now, I ask you, are the people better fed under the empire of our laws because there is less bread, meat, and sugar in the country? Are they better clad because there is less yarn, canvas, and cloth? Are they better heated because there is less coal? Are they better assisted in their work because there is less iron and copper, fewer tools and machines?
But people will say: if foreigners swamp us with their products, they will carry off our money.
What does it matter? Men do not eat money; they do not clothe themselves with gold, nor heat themselves with silver. What does it matter if there is more or less money in the country, if there is more bread on the sideboard, more meat on the hook, more linen in the cupboards and more wood in the woodshed?27
I will continue to confront restrictive laws with this dilemma:
Either you agree that you cause scarcity or you do not agree.
If you agree, you are admitting by this very fact that you are doing the people as much harm as you can. If you do not agree, then you are denying that you have restricted supply and caused prices to rise, and consequently you are denying that you have favored producers.
You are either disastrous or ineffective. You cannot be useful.28
Endnotes15 Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854) was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, and then Minister of Trade and Colonies (1828-29). See the glossary entry on "Saint Cricq."
16 Bugeaud, Thomas, marquess de Piconnerie, duc d'Isly (1784-1849) had a distinguished military career under Napoleon fighting the partisans in Spain. After the 1830 Revolution he became a conservative deputy who supported a policy of protection for agriculture. In 1840 he was appointed the Governor of Algeria by Thiers. See the glossary entry on "Bugeaud."
17 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. See the glossary on "d'Argout."
18 La Presse was a widely circulated daily newspaper under the control of the politician and businessman Émile de Girardin (1806-81). See the glossary entry on "La Presse" and "French Newspapers" in Appendix 2 "The French State and Politics."
19 Le Commerce is possibly a reference to Le Constitutionnel which began in 1815 but had many name changes throughout its existence, including le Journal du Commerce from 1817. During the July Monarchy it sided with the policies of Thiers. See the glossary entries on "Le Commerce" and "French Newspapers."
20 The King, the Chamber of Peers, and the Chamber of Deputies. See the glossary entry on "The Chamber of Deputies."
21 Without mentioning him by name, Bastiat is referring here to the activities of Robinson Crusoe which he used several times in the Economic Sophisms and the Economic Harmonies as a thought experiment to explore the nature of economic action. See the glossary entry on "Crusoe Economics."
22 Montaigne, 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. Sometime in 1847 Bastiat wrote an introduction to a chapter on this very topic. He called this phrase the "classical example of a sophism, the root stock sophism from which comes multitudes of sophisms." Republished in this volume as ES3 15. Michel de Montaigne (1533-92) was one of the best-known and best-admired writers of the Renaissance. His Essays (first published in 1580) were a thoughtful meditation on human nature in the form of personal anecdotes infused with deep philosophical reflections. See the glossary entry on "Montaigne."
23 There are two protectionist bodies which are referred to as the "Mimerel Committee." Pierre Mimerel de Roubaix (1786-1872) was a textile manufacturer and politician from Roubaix who was a vigorous advocate of protectionism. In 1842 he founded a pro-tariff "Comité de l'industrie" (Committee of Industry) in his home town to lobby the government for protection and subsidies. This Committee, known as the Mimerel Committee, was expanded in 1846 into a national body called the "Association pour la défense du travail national" (Association for the Defense of National Employment) in order to better counter the growing interest in Bastiat's Free Trade Association which had also been established in that year. Mimerel and Antoine Odier (1766-1853) sat on the Association's Central Committee which was commonly referred to as the "Mimerel Committee" or the "Odier Committee." See the glossary entries on "Mimerel," "Odier," "Mimerel Committee," and the "Association for the Defense of National Employment."
24 In ES 2 IV. "The Lower Council of Labour" Bastiat satirizes the Superior Council of Commerce which was a body within the Ministry of Trade which served the interests of producers by inventing an "Inferior (or Lower) Council of Labour" which would serve the interests of "proper workers." They of course came to a very different conclusion concerning the merits of protectionism. See the glossary entry on the "Superior Council of Commerce."
25 (Paillottet's note) The author amended the terms of this proposition in a later work. See Economic Harmonies, chapter XI (OC, vol. 6, chap. 11, "Producteur, consommateur").
26 (Bastiat's note) In French we do not have a noun that expresses the opposite concept to expensiveness (cheapness [in English in the original]). It is rather remarkable that popular instinct expresses this concept by the following paraphrase: "marché avantageux, bon marché." (an advantageous market, a good market). Prohibitionists should change this locution. It implies an economic system that is quite contrary to theirs.
27 See ES1 XI. "Nominal Prices" for a more detailed discussion of this topic, below pp. ???
28 (Paillottet's note) The author has dealt with this subject in greater detail in chapter XI of the Economic Harmonies [see note 3, above] and also in another form in the article entitled Abundance written for the Dictionary of Political Economy, which we have included at the end of the fifth volume. [Bastiat's article "Abondance" appeared in the Dictionnaire de l'économie politique, vol. 1, pp. 2–4.]
T.25 (1845.04.15) "Economic Sophisms: Obstacle and Cause" (JDE, April 1845)↩
SourceT.25 (1845.04.15) "Obstacle and Cause" (Obstacle, cause), Journal des Économistes, April 1845, T. 11, no. 41, p. 8-10; also ES1.2. [OC4.1.2, pp. 15-18.] [CW3 - ES1.2]
TextII. Obstacle and Cause [April 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Obstacle, cause" (Obstacle and Cause] [JDE, April 1845, T. 11, p. 8-10].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 15-18.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
The obstacle taken for the cause—scarcity taken for abundance: this is the same sophism under another guise. It is a good thing to examine it from all sides.
Man originally lacks everything.
Between his destitution and the satisfaction of his needs there is a host of obstacles, which it is the purpose of work to overcome. It is an intriguing business trying to find how and why these same obstacles to his well-being have become in his eyes the cause of his well-being.
I need to transport myself a hundred leagues away. But between the points of departure and arrival there are mountains, rivers, marshes, impenetrable forests, evil doers, in a word, obstacles, and in order to overcome these obstacles I have to make a great deal of effort or, what comes to the same thing, others have to make a great deal of effort and have me pay the price for this. It is clear that in this respect I would have been in a better situation if these obstacles did not exist.
To go through life and travel along the long succession of days that separates the cradle from the tomb, man needs to assimilate a prodigious quantity of food, protect himself against the inclemency of the seasons, and preserve himself from or cure himself of a host of ills. Hunger, thirst, illness, heat, and cold are so many obstacles that lie along his way. In his solitary state, he will have to combat them all by means of hunting, fishing, growing crops, spinning, weaving, and building houses, and it is clear that it would be better for him if there were fewer of these obstacles, or even none at all. In society, he does not have to confront each of these obstacles personally; others do this for him, and in return he removes one of the obstacles surrounding his fellow men.
It is also clear that, taking things as a whole, it would be better for men as a group, that is for society, that the obstacles should be as insignificant and as few as possible.
However, if we examine social phenomena in detail, and the sentiments of men as they have been altered by trade, we soon see how they have managed to confuse needs with wealth and obstacles with causes.
The division of labor, a result of the ability to trade, has meant that each person, instead of combating on his own all the obstacles that surround him, combats only one, and this, not for himself but for the benefit of all his fellow men, who in turn render him the same service.
Now, the result of this is that this person sees the immediate cause of his wealth in the obstacle that it is his job to combat on other people's account. The greater, more serious, more keenly felt this obstacle is, the more his fellow men will be ready to pay him for removing it, that is to say, to remove on his behalf the obstacles that stand in his way.
A doctor, for example, does not occupy himself in baking his bread, manufacturing his instruments, weaving, or making his clothes. Others do this for him, and in return he does battle with the illnesses that afflict his patients. The more numerous, severe, and recurrent these illnesses are, the more willing or even obliged people are to work for his personal advantage. From his point of view, illness, that is to say, a general obstacle to people's well-being, is a cause of individual well-being. All producers reason in the same way with regard to things that concern them. Ship owners make their profit from the obstacle known as distance, farmers from that known as hunger, cloth manufacturers from that known as cold. Teachers live on ignorance, gem cutters on vanity, lawyers on greed, notaries on the possibility of dishonesty, just as doctors depend on the illnesses suffered by men. It is thus very true that each occupation has an immediate interest in the continuation or even the extension of the particular obstacle that is the object of its efforts.
Seeing this, theoreticians come along and develop a theory based on these individual sentiments. They say: "Need is wealth, work is wealth; obstacles to well-being are well-being. Increasing the number of obstacles is to give sustenance to production."
Next, statesmen come along. They have the coercive power of the state at their disposal, and what is more natural than for them to make use of it to develop and propagate obstacles, since this is also to develop and propagate wealth? For example, they say: "If we prevent iron from coming from those places in which it is plentiful, we will create an obstacle at home to our procuring it. This obstacle will be keenly felt and will make people ready to pay to be relieved of it. A certain number of our fellow citizens will devote themselves to combating it, and this obstacle will make their fortune. The greater it is, the scarcer the mineral or the more it is inaccessible, difficult to transport, and far from the centers of consumption, the more all this activity, with all its ramifications, will employ men. Let us keep out foreign iron, therefore; let us create the obstacle in order to create the work of combating it."
The same reasoning will lead to machines being forbidden.
People will say: "Here are men who need to store their wine. This is an obstacle; here are other men whose occupation is to remove it by manufacturing barrels. It is thus a good thing that this obstacle exists, since it supplies a part of national work and enriches a certain number of our fellow citizens. However, here comes an ingenious machine that fells oak trees, squares them and divides them into a host of staves, assembles these and transforms them into containers for wine. The obstacle has become much less and with it the wealth of coopers. Let us maintain both through a law. Let us forbid the machine."
In order to get to the bottom of this sophism you need only say to yourself that human work is not an aim but a means. It never remains unused. If it lacks one obstacle, it turns to another, and the human race is freed from two obstacles by the same amount of work that removed a single one. If ever the work of coopers became superfluous, they would turn to something else. "But with what" people will ask, "would it be paid?" Precisely with what it is paid right now, for when one quantity of labor becomes available following the removal of an obstacle, a corresponding quantity of money also becomes available. To say that human labor will be brought to an end for lack of employment you would have to prove that the human race will cease to encounter obstacles. If that happened, work would not only be impossible, it would be superfluous. We would have nothing left to do because we would be all powerful and we would just have to utter a fiat for all our needs and desires to be satisfied.29
Endnotes29 (Paillottet's note) See chapter XIV of the second series of Sophisms [see this volume, "Something Else," pp. 000—00] and chapters III and XI of the Economic Harmonies on the same subject (OC, vol. 6, chap. 3, "Des besoins de l'homme," and chap. 11, "Producteur, consommateur").
T.26 (1845.04.15) "Economic Sophisms: Effort and Result" (JDE, April 1845)↩
SourceT.26 (1845.04.15) "Effort and Result" (Effort, résultat), Journal des Économistes, April 1845, T. 11,no. 41, p. 10-16; also ES1.3. [OC4.1.3, pp. 19-27.] [CW3 - ES1.3]
TextIII. Effort and Result [April 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Effort, résultat" (Effort and Result) [JDE, April 1845, T. 11, p. 10-16].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 19-27.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
We have just seen that there are obstacles between our needs and their satisfaction. We manage to overcome them or to reduce them by using our various faculties. In a very general way, we may say that production is an effort followed by a result.
But against what is our well-being or wealth measured? Is it on the result of the effort? Is it on the effort itself? There is always a ratio between the effort employed and the result obtained. Does progress consist in the relative increase of the second or of the first term of this relationship?
Both of these theses have been advocated; in political economy, they divide the field of opinion.
According to the first thesis, wealth is the result of output. It increases in accordance with the increase in the ratio of the result to the effort. Absolute perfection, of which the exemplar is God, consists in the infinite distancing of two terms, in this instance: effort nil; result infinite.
The second thesis claims that it is the effort itself that constitutes and measures wealth. To progress is to increase the ratio of the effort to the result. Its ideal may be represented by the effort, at once eternal and sterile, of Sisyphus.30 31
Naturally, the first welcomes everything that tends to decrease the difficulties involved and increase the product: the powerful machines that add to human powers, the trade that enables better advantage to be drawn from the natural resources spread to a greater or lesser extent over the face of the earth, the intelligence that makes discoveries , the experience that verifies these discoveries, the competition that stimulates production, etc.
Logically, by the same token, the second willfully summons up everything whose effect is to increase the difficulties of production and decrease the output: privileges, monopolies, restrictions, prohibitions, the banning of machines, sterility, etc.
It is fair to note that the universal practice of men is always directed by the principle of the first doctrine. Nobody has ever seen and nobody will ever see anyone working, whether he be a farmer, manufacturer, trader, artisan, soldier, writer, or scholar, who does not devote the entire force of his intelligence to doing things better, faster, and more economically, in a word, to doing more with less.
The opposite doctrine is practiced by theoreticians, deputies, journalists, statesmen, and ministers, in a word men whose role in this world is to carry out experiments on society.
Again it should be noted that, with regard to things that concern them personally, they, like everybody else in the world, act on the principle of obtaining from work the greatest number of useful results possible.
You may think I am exaggerating, and that there are no real Sisyphists.
If you mean that, in practice, the principle is not pushed to the limit of its consequences, I would readily agree with you. Actually, this is always the case when people start from a false principle. It soon leads to results that are so absurd and harmful that that one is simply forced to abandon it. For this reason, very practical productive activity never accepts Sisyphism: punishment would follow errors too closely for them not to be revealed. However, with regard to speculative theories of industrial activity, such as those developed by theoreticians and statesmen, a false principle may be followed for a long time before people are made aware of its falsity by complicated consequences of which moreover they are ignorant, and when at last they are revealed, and action is taken in accordance with the opposing principle, people contradict themselves and seek justification in this incomparably absurd modern axiom: in political economy there is no absolute principle.32
Let us thus see whether the two opposing principles that I have just established do not hold sway in turn, one in actual production and the other in the legislation regulating production.
I have already recalled something M. Bugeaud33 has said; however, in M. Bugeaud there are two men, one a farmer and the other a legislator.
As a farmer, M. Bugeaud tends to devote all his efforts to this twin aim: to save on work and to obtain bread cheaply. When he prefers a good cart to a bad one, when he improves the quality of fertilizer, when in order to break up his soil he substitutes the action of the atmosphere for that of the harrow or the hoe as far as he can, when he calls to his assistance all the procedures in which science and experiment have shown their effectiveness, he has and can have one single goal: to reduce the ratio of the effort to the result. Actually, we have no other way of recognizing the skill of the farmer and the quality of the procedure other than measuring what they have saved in effort and added to the result. And since all the farmers around the world act according to this principle, it may be said that the entire human race aspires, doubtless to its advantage, to obtaining bread or any other product more cheaply and to reducing the effort required to have a given quantity available.
Once account has been taken of this incontrovertible tendency in human beings, it ought to be enough to show legislators the real principle of the matter, that is show them how they should be supporting productive economic activity (as far as it lies within their mission to support it), for it would be absurd to say that human laws ought to act in opposition to the laws of providence.
Nevertheless, the deputy, M. Bugeaud, has been heard to exclaim, "I do not understand the theory of low prices; I would prefer to see bread more expensive and work more plentiful." And as a result, the deputy for the Dordogne has voted for legislative measures whose effect has been to hamper trade precisely because it indirectly procures us what direct production can supply us only at a higher cost.
Well, it is very clear that M. Bugeaud's principle as a deputy is diametrically opposed to that of M. Bugeaud as a farmer. If he were consistent with himself, he would vote against any restriction in the Chamber or else he would carry on to his farm the principles he proclaims from the rostrum. He would then be seen to sow his wheat on the most infertile of his fields, since he would then succeed in working a great deal for little return. He would be seen to forbid the use of the plough, since cultivation using his nails would satisfy his double desire of making bread more expensive and work more plentiful.
The avowed aim and acknowledged effect of restriction is to increase work.
It also has the avowed aim and acknowledged effect of raising prices, which is nothing other than making products scarce. Thus, when taken to its limit, it is pure Sisyphism as we have defined it: infinite work, product nil.
Baron Charles Dupin34, said to be a leading light among the peers in economic science, accuses the railway of harming shipping, and it is clear that it is the nature of a more perfect means to restrict the use of a means that is comparatively rougher. However, the railway can harm shipping only by diverting transport to itself; it can do so only by carrying it out more cheaply, and it can carry it out more cheaply only by reducing the ratio of the effort used to the result obtained, since this is what constitutes the lower cost. When, therefore, Baron Dupin deplores this reduction of work for a given result, he is following the lines of the doctrine of Sisyphism. Logically, since he prefers ships to rail, he ought to prefer carts to ships, packhorses to carts, and backpacks to all other known means of transport, since this is the means that requires the greatest amount of work for the least result.
"Work constitutes the wealth of a people." said M. de Saint-Cricq, this minister of trade who imposed so many impediments to trade.35 It should not be believed that this was an elliptical proposition which meant: "The results of work constitute the wealth of a people." No, this economist genuinely meant to say that it is the intensity of labor that measures wealth, and proof of this is that, from one inference to another, one restriction to another, he led France and considered he was doing a good thing in this, to devote twice as much work to acquire the same amount of iron, for example. In England, iron then cost 8 fr.; in France it cost 16 fr. If we take a day's work to cost 1 fr. it is clear that France could, through trade, procure a quintal of iron for eight days taken from national work as a whole. Thanks to M. de Saint-Cricq's restrictive measures, France needed sixteen days of work to obtain a quintal36 of iron through direct production. Double labor for identical satisfaction, therefore double wealth; here again wealth is measured not by outcomes but by the intensity of the work. Is this not Sisyphism in all its glory?
And so that there is no possible misunderstanding, the minister is careful to take his idea further, and in the same way as he has just called the intensity of labor wealth, he is heard calling the abundance resulting from production, or things likely to satisfy our needs, poverty. "Everywhere", he says, "machines have taken the place of manpower; everywhere, there is an overabundance of production; everywhere the balance between the ability to produce and the means of consumption has been destroyed." We see that, according to M. de Saint-Cricq, if France was in a critical situation it was because it produced too much and its production was too intelligent and fruitful. We were too well fed, too well clothed, too well provided for in every way. Production was too fast and exceeded all our desires. An end had to be put to this scourge, and to this end we had to force ourselves, through restrictions, to work more to produce less.
I have also recalled the opinion of another minister of trade, M. d'Argout.37 It is worth our spending a little time on it. As he wished to deliver a terrible blow to sugar-beet , he said, "Growing sugar-beet is doubtless useful, but its usefulness is limited. It does not involve the gigantic developments that people were happy to forecast for it. To be convinced of this, you just have to note that this crop will of necessity be restricted to the limits of consumption. Double or triple current consumption in France if you want, you will always find that a very minimal portion of the land would be enough to meet the needs of this consumption. (This is certainly a strange complaint!). Do you want proof of this? How many hectares38 were planted with sugar-beet in 1828? There were 3,130, which is equivalent to 1/10540th of the cultivatable land. How many are there now that indigenous sugar39 has taken over one third of consumption? There are 16,700 hectares, or 1/1978th of the cultivatable land, or 45 square meters per commune. If we suppose that indigenous sugar had already taken over the entire consumption, we would have only 48,000 hectares planted with beetroot, or 1/680th of the cultivatable land."40 41
There are two things in this quotation: facts and doctrine. The facts tend to establish that little land, capital, and labor is needed to produce a great deal of sugar and that each commune in France would be abundantly provided with it if it devoted one hectare of its territory to its cultivation. The doctrine consists in seeing this situation as disastrous and seeing in the very power and fruitfulness of the new industry the limit of its usefulness.
I have no need to make myself the defender of sugar-beet or the judge of the strange facts put forward by M. d'Argout,42 but it is worth examining in detail the doctrine of a statesman to whom France entrusted for many years the fate of its agriculture and trade.
I said at the beginning that there was a variable ratio between productive effort and its result; that absolute imperfection consists in an infinite effort with no result: that absolute perfection consists in an unlimited result with no effort; and that perfectibility consists in a gradual reduction in the effort compared to the result.
But M. d'Argout informs us that death is where we believe we are glimpsing life and that the importance of a branch of production is a direct result of its impotence. What, for example, can we expect from sugar-beet? Do you not see that 48,000 hectares of land and a proportional amount of capital and manpower will be enough to provide all of France with sugar? Therefore it is an industry with limited usefulness, limited, of course, with regard to the input of labor it requires, the only way, according to the former minister, in which an industry can be useful. This usefulness would be much more limited still if, because of the fertility of the soil or the richness of the sugar-beet , we harvested from 14,000 hectares what we could obtain only from 48,000. Oh! If twenty or a hundred times more land, capital, or labor were needed to achieve the same result, fair enough, we might build a few hopes on this new industry and it would be worthy of the full protection of the state, since it would offer a vast opportunity for national work. But to produce a lot with a little! That would be a bad example, and it is right for the law to establish order in this regard.
But what is the truth with regard to sugar cannot be a falsehood with regard to bread. If, therefore, the usefulness of an industry is to be assessed, not by the satisfaction it can provide through a given quantity of work, but on the contrary through the development of the work it requires to meet a given amount of satisfaction; what we ought obviously to want is that each hectare of land should produce little wheat and each grain of wheat little food. In other words, our territory should be infertile, since then the mass of land, capital, and labor that we would need to mobilize to feed the population would be much more in comparison. It might even be said that the market open to human labor will be in direct proportion to this infertility. The desires of MM. Bugeaud, Saint-Cricq, Dupin, and d'Argout will be granted. Bread will be expensive, work plentiful, and France will be rich, rich as these men understand the term.
What we ought to want in addition is for human intelligence to grow weaker and die out, for as long as it exists, it will constantly seek to increase the ratio of the end to the means and the product to the labor. It is actually in that, and only in that, that it consists.
Thus, Sisyphism is the doctrine of all the men who have been responsible for our economic development. It would not be just to blame them for this. This principle directs the Ministers only because it holds sway in the Chambers; it holds sway in the Chambers only because it is sent there by the electorate and the electorate is imbued with it only because public opinion is saturated with it.
I think I should repeat here that I am not accusing men such as MM. Bugeaud, Saint-Cricq, Dupin, and d'Argout of being absolutely and in all circumstances, Sisyphists. They are certainly not that in their private transactions; each one of them certainly obtains by exchange what it would cost him more to obtain through direct production. However, I say that they are Sisyphists when they prevent the country from doing the same thing.43
Endnotes30 (Bastiat's note) For this reason we ask the reader to excuse us for using the name Sisyphism as an abbreviation for this thesis hereafter.
31 In Greek myth Sisyphus was the King of Corinth who was notorious for his mistreatment of travelers. He also angered Zeus by revealing details of his amorous exploits. For this he was punished by being forced to roll a large boulder up a hill every day only to have it roll down the hill every night.
32 This is a topic taken up again in Sophism no. XVIII "There are no absolute Principles," below, p. ???.
33 Bugeaud, Thomas, marquess de Piconnerie, duc d'Isly (1784-1849) had a distinguished military career under Napoleon fighting the partisans in Spain. After the 1830 Revolution he became a conservative deputy (Dordogne 1831-1848) who supported a policy of protection for agriculture. In 1840 he was appointed the Governor of Algeria by Thiers. See the glossary entry on "Bugeaud."
34 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."
35 Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854) was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, and then Minister of Trade and Colonies (1828-29). See the glossary entry on "Saint Cricq."
36 A quintal weighs 100 kilogrammes. See glossary entry on "French Weights and Measures".
37 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. See the glossary on "d'Argout."
38 A hectare is 10,000 square metres or approximately 2 acres. See the glossary entry on "French Weights and Measures."
39 Growing sugar-beet (or beetroot) for sugar as a substitute for imported cane sugar had been encouraged at the time of the continental blockade. Normally, cane sugar was imported from overseas or from the slave colonies
40 (Bastiat's note ) It is true to say that M. d'Argout put this strange statement in the mouths of opponents of sugar-beet. However, he adopted it formally and incidentally sanctioned it by the very law it served to justify.
41 The FEE edition translator Arthur Goddard notes (p. 25) that: "The centiare is 1/10,000 of the hectare, one square meter, or 1.196 square yards. The commune is the smallest administrative unit in France, averaging less than ten square miles. The error may be Argout's, Bastiat's, or the publisher's, but centiare here should read are (1/100 of a hectare): with about 35,000 communes in France, there would be about 0.45 hectare, or forty-five ares, per commune in sugar beets." See the glossary entry on "Weights and Measures."
42 (Bastiat's note) If we suppose that 48,000 to 50,000 hectares were enough to supply current consumption, we would need 150,000 for a tripling of consumption, which M. d'Argout accepts is possible. What is more, if sugar-beet were included in a six-year rotation of crops, it would occupy in turn 900,000 hectares or 1/38th of the cultivatable land.
43 (Paillottet's note) On the same subject, see chapter XVI of the second series of Sophisms [see this volume, "The Right Hand and the Left Hand," pp. 000–00] and chapter VI of the Economic Harmonies (OC, vol. 6, chap. 6, "Richesse").
T.27 (1845.06) "Introduction" to Cobden and the League (Guillaumin, 1845)↩
SourceT.27 (1845.06) Cobden et la ligue, ou l'Agitation anglaise pour la liberté du commerce (Paris: Guillaumin, 1845) (Cobden and the League, or the English Movement for Free Trade). FB's first book was reviewed in the July 1845 edition of JDE, T. 11, no. 44, p. 446 so it was probably published in June. It consists of a lengthy "Introduction" by Bastiat, which we include in the [CW6], and his lengthy summaries and translations of meetings, newspaper accounts, and other material produced by the Anti-Corn Law League (which we do not include). FB's "Introduction" to Cobden et la Ligue (1845), pp. i-xcvi. [OC3, pp. 1-80.] [CW6]
Text(insert HTML of file here)
T.28 (1845.06.15) "The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom" (JDE, June 1845)↩
SourceT.28 (1845.06.15) "The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom" (Situation économique de la Grande-Bretagne. Réformes financières. Agitation pour la liberté commerciale), Journal des Économistes, June 1845, T. XI, no. 43, pp. 233-265. This article is an extract from Bastiat's introduction to T.27 Cobden and the League, pp. vii ff. [DMH]
Text(Extract of T.27 - see above for details)
T.29 (1845.07.15) "Equalizing the Conditions of Production" (JDE, July 1845)↩
SourceT.29 (1845.07.15) "Equalizing the Conditions of Production" (Égaliser les conditions de production), Journal des Économistes, July 1845, T. 11, no. 44, p. 345-56; also ES1.4. [OC4.1.4, pp. 27-45.] [CW3 - ES1.4]
TextIV. Equalizing the Conditions of Production [July 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Égaliser les conditions de production" (Equalizing the Conditions of Production) [JDE, July 1845, T. 11, p. 345-56].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 27-45.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
It is said . . . but, so that I am not accused of putting sophisms into the mouths of protectionists, I will let one of their most vigorous athletes speak for himself.
"It has been thought that protection in our country ought to be simply a representation of the difference that exists between the cost price of a commodity that we produce and the cost price of a similar commodity produced by our neighbors. . . . A protective duty calculated on these bases ensures nothing more than free competition. Free competition exists only where conditions and charges are equal. In a horse race, the weight that each runner has to bear is weighed and the conditions are equalized; without this, they are no longer competitors. In matters of trade, if one of the sellers is able to deliver at lower cost, he ceases to be a competitor and becomes a monopolist. If you abolish this protection that represents the difference in cost, as soon as foreigners invade your market, they have acquired a monopoly in it".44
"Each person has to want, for himself as for the others, the production of the country to be protected against foreign competition, wherever this can supply products at a lower price."45
This argument recurs constantly in articles written by the protectionist school. I propose to examine it carefully, that is to say, I will be asking for the attention and even the patience of the reader. I will first deal with the inequalities that result from nature and then those that result from the differences in taxation.
Here, as elsewhere, we find the theoreticians of protection situated in the producers' camp, whereas we are taking up the cause of these unfortunate consumers whom they refuse to take into account. They compare the field of industry to the race track .46 However, the race track is simultaneously the means and the end. The public takes no interest in the competition outside the competition itself. When you start your horses with the sole aim of knowing which is the best runner, I can understand that you make the weights equal. But if your aim is to ensure that a major and urgent item of news reaches the post, could you with impunity create obstacles for the one that might offer you the best conditions of speed? This is, however, what you are doing to economic production. You are forgetting the result sought, which is well-being. You leave this out of the account, and even sacrifice it through completely begging the question.
But since we cannot bring our opponents round to our point of view, let us adopt theirs and examine the question from the point of view of production.
I will seek to establish:
1. That leveling the conditions of production is to attack the very basis of trade;
2. That it is not true that production in one country is stifled by competition from more favored countries;
3. That even if this were true, protectionist duties do not make production conditions equal;
4. That freedom levels these conditions as far as they can be leveled;
5. Lastly, that it is the countries that are least favored that gain the most from trade.
I. Leveling the conditions of production is not merely hampering a few transactions, it is attacking the very principle of trade, since it is based precisely on this diversity, or, if you prefer, on these inequalities of fertility, aptitude, climate, or temperature that you wish to wipe out. If the Guyenne sends wine to Brittany and Brittany wheat to the Guyenne, it is because these two provinces are situated in different conditions of production.47 Is there a different law for international trade? Once again, to hold against them the inequality of conditions that motivates and accounts for their actions is to attack their very raison d'être. If the protectionists had enough logic and power on their side, they would reduce men, like snails, to total isolation. Besides there is not one of their sophisms that, when subjected to the test of rigorous deduction, does not end in destruction and annihilation.
II. It is not true in fact that the inequality in conditions between two similar productive enterprises necessarily leads to the fall of the one that is the less well endowed. At the race track , if one runner wins the prize, the other loses it, but when two horses work to produce useful commodities, each produces to the extent of its strength, and because the stronger provides the more services it does not follow that the weaker provides none at all. Wheat is grown in all the départements of France, although there are huge differences of fertility between them and if, by chance, there is one that does not grow wheat, it is because it is not good, even for that department, to grow it. In the same way, a similar argument tells us that, under the regime of freedom, in spite of differences like these, wheat would be produced in all the kingdoms of Europe, and if there were one which had decided to abandon this crop it would be because, in its own interest, it had found a better use for its land, capital and labor. And why does the fertility of a département not paralyze farmers in neighboring départements that are less favored? Because economic phenomena have a flexibility, elasticity, and, so to speak, a capacity for leveling that appears to escape the grasp of the protectionist school totally. The latter accuses us of being prisoners of a system, but it is its own members who are rigid to the highest degree, if the spirit of such consists in building arguments based on a single fact rather than on a set of facts. In the example above, it is the difference in the value of the land that compensates for the difference in its fertility. Your field produces three times more than mine. Yes, but it has cost you ten times more and I can still compete with you. This is the question in a nutshell. And note that superiority in some respects brings about inferiority in others. It is precisely because your land is more fruitful that it is more expensive, in such a way that it is not accidental, but necessary for a balance to be established or to tend to become established. And can it be denied that freedom is the regime that favors this trend the most?
I have quoted one branch of agriculture but I could have quoted a branch of manufacturing just as well. There are tailors in Quimper,48 and that does not prevent there being tailors in Paris, even though rent, furnishings, workers, and food cost Paris tailors much more. But they also have a very different class of customers, and this is enough not only to restore the balance but also even to tilt it in their favor.
So when we talk about balancing the conditions of work, we have at least to examine whether freedom does not do what we are asking arbitrary rule to do.
This natural leveling out of economic phenomena is so important functionally and at the same time so worthy of our admiration for the providential wisdom that presides in the egalitarian governance of our society, that I ask your permission to dwell on it for a moment.
You protectionists say that such and such a people have the advantage of cheap coal, iron, machines, and capital over us; we cannot compete with them.
This statement will be examined from other points of view. For the present I am limiting myself to the question whether, when superiority and inferiority confront one another, they do not carry within themselves, in the latter case a natural tendency to rise and in the former to descend, such as to bring them back to a fair balance.
Here we have two countries, A and B. A has all sorts of advantages over B. You conclude from this that labor would be concentrated in A and that B is powerless to do anything. A, you say, sells a great deal more than it purchases, while B purchases much more than it sells. I might dispute this, but I align myself with your viewpoint.
In this hypothetical circumstance, the demand for labor is high in A and it soon becomes more expensive.
Iron, coal, land, food, and capital are in high demand in A and they soon become more expensive.
At the same time, labor, iron, coal, land, food, capital, and everything else are in very low demand in B and soon become much cheaper.
That is not all. As A still continues to sell and B continues to purchase, money passes from B to A. It is plentiful in A and scarce in B.
But where there is an abundance of money, this means that you need a great deal to buy anything else. Therefore, in A, to the high real prices which result from very active demand must be added the high nominal money prices due to the excess supply of precious metals.49
Scarcity of money means that little is needed for each purchase. Therefore in B, low nominal money prices combine with low real prices.
In these circumstances, production will have all sorts of reasons, reasons that are, if I may put it this way, raised to the fourth power, to leave A and establish itself in B.
Or, to stick to literal truth, let us say that production would not have waited up to now, that sudden moves are contrary to its nature and that, from the outset under a free regime, it would have gradually divided and distributed itself between A and B in accordance with the laws of supply and demand, that is to say, in accordance with the laws of justice and usefulness.
And when I say that, if it were possible for production to concentrate at a single point, an irresistible force for decentralization would arise within it for this very reason, I am not speaking hypothetically.
Listen to what a manufacturer had to say in the chamber of commerce in Manchester (I am omitting the figures he used to support his demonstration):
"In former times we exported fabrics, then this activity gave way to the export of yarn, which is the raw material of fabric, and then to the export of machines, which are the instruments of production for yarn, and later to the export of capital, with which we built our machines, and finally to the export of our workers and our industrial genius, which are the source of our capital. All these changes in production succeeded one another in moving to where they might be exercised to greatest advantage, where the cost of living was lowest and life easier, so that now we can see in Prussia, Austria, Saxony, Switzerland, and Italy huge factories established with English capital, operated using English workers and directed by English engineers."
You can see clearly that nature, or rather providence, which is more ingenious, wise, and farsighted than your narrow and rigid theory supposes, did not want this concentration of work, this monopoly of all the forms of superiority that you argue to be an absolute and irremediable fact, to continue. It made it possible, using means that are as simple as they are infallible, for there to be dispersion, dissemination, solidarity, and simultaneous progress, all things that your restrictive laws paralyze as far as they can, since, by isolating peoples, they tend to make their differences in living conditions much more entrenched, to prevent leveling out, obstruct intermingling, neutralize counterbalancing tendencies, and entrap nations in their respective superiority or inferiority.
III. In the third place, to say that through a protectionist duty the conditions of production are equalized is to use an inaccurate turn of phrase to put across an error. It is not true that an import duty brings the conditions of production into balance. After the imposition of an import duty these conditions remain what they were before. All that this duty balances at most are the conditions of sale. It will perhaps be said that I am paying with words, but I will throw this accusation back at my opponents. It is for them to prove that production and sale are synonymous, and unless they do so, I am entitled to blame them, if not for playing with words, at least for mixing them up.
Let me give an example to illustrate my idea.
Let me suppose that a few Parisian speculators have the bright idea of devoting their time to the production of oranges. They know that Portuguese oranges can be sold in Paris for 10 centimes, whereas they, in view of the conservatories and greenhouses they need because of the cold that often undermines their cultivation, cannot demand less than one franc in order to cover their costs . They demand that oranges from Portugal should be subject to a duty of 90 centimes. Through this duty, the conditions of production, as they say, will be balanced and the Chamber when giving way as usual to this line of reasoning, adds an import duty of 90 centimes for each foreign orange to the customs tariffs.
Well then, I say that the conditions of production have not changed in the slightest. The law has removed nothing from the heat of the sun in Lisbon nor the frequency or intensity of the frosts in Paris. Oranges will continue to mature naturally on the banks of the Tagus and artificially on the banks of the Seine, that is to say, that it will require much more human work in one country than in the other. What will be balanced are the conditions of sale: the Portuguese will have to sell us their oranges at 1 franc, including 90 centimes to pay the tax. Obviously, the tax will be paid by French consumers. And look at the oddity of the result. On each Portuguese orange consumed, our country will lose nothing, for the 90 centimes more that are paid by the consumer will go to the treasury. There will be displacement but no loss. However, on each French orange consumed, there will be 90 centimes or thereabouts of loss, since the purchaser will certainly lose this and the seller, also certainly, will not earn this since, according to the hypothesis itself, he will have earned only the cost price. I leave the protectionists to draw the right conclusion.
IV. If I have stressed this distinction between the conditions of production and the conditions of sale, one which the protectionists will doubtless find paradoxical, it is because it will lead me to afflict them once more with another paradox that is even stranger, which is this: Do you really want to balance the conditions of production? Then let trade be free.
Oh! people will say, that is too much at this time, and an abuse of intellectual games. Well then, if only through curiosity, I ask the protectionists to follow my line of argument to the bitter end. It will not take long. Let me go back to my example.
If you agree to suppose for a minute that the average, daily earnings of each Frenchman come to 1 franc, it will ineluctably follow that to produce one orange directly in France will require one day's work or its equivalent whereas to produce the exchange value of one Portuguese orange only one tenth of a day's work is needed, which means nothing other than that the sun does in Lisbon what work does in Paris. Well, is it not obvious that, if I can produce an orange or what amounts to the same thing, the means to buy one, with one tenth of a day's work, my position with regard to this production is subject to the same conditions as the Portuguese producer himself, except for the transport costs, which I must incur? It is therefore apparent that freedom balances the direct or indirect conditions of production, as far as they can be balanced, since it leaves only one remaining inevitable difference, that of transport.
I will add that freedom also balances the conditions of enjoyment, satisfaction, and consumption, which are never taken into account and which are nevertheless essential, since in the end consumption is the final aim of all our productive efforts. Through free trade we would enjoy the Portuguese sun just as Portugal herself does and the inhabitants of Le Havre, like those of London and under the same conditions, will have access to the advantages that nature has conferred on Newcastle with respect to its mineral resources .
V. Gentlemen of the protectionist persuasion, you think me full of paradox! Well, I want to go even further. I say, and I think this quite sincerely, that if two countries are placed in unequal conditions of production, it is the one of the two which is less favored by nature that has the more to gain from free trade. To prove this, I will have to digress a little from the form this article should take. I will nevertheless do this, first of all because this is the nub of the matter and also because it will give me the opportunity of setting out a law of economics of the greatest importance which, when correctly understood, seems to me to be destined to bring back into the fold of science all the sects that these days seek in the land of illusion the social harmony that they have been unable to discover in nature. I wish to speak about the law of consumption, for which the majority of economists may be blamed for having too long much neglected.
Consumption is the end, the final purpose of all economic phenomena, in which purpose consequently lies their final, definitive solution.
Nothing favorable or unfavorable can stop permanently at the producer's door. The advantages that nature and society have heaped on him, like the disadvantages that afflict him, slide over him,50 so to speak, and tend to be unconsciously absorbed by, mingled with, the community, understood from the point of view of consumption. We have here a law that is admirable alike in its cause and its effects, and the man who succeeds in describing it properly will have, I think, the right to say "I have not spent time on this earth without contributing something to society."
Any circumstance that encourages production is welcomed joyfully by the producer since its immediate effect is to put him in a position to provide even more services to the community and to demand greater remuneration from it . Any circumstance that hampers production is received with disappointment by the producer since its immediate effect is to limit his services and therefore his remuneration. It was necessary for the immediate gains and losses resulting from fortunate or unfortunate circumstances to be the lot of the producer, so that he would be irresistibly drawn to seeking the former and avoiding the latter.
In the same way, when a worker succeeds in improving his output, he receives the immediate benefit of this improvement. This was necessary for him to be motivated to working intelligently; it was proper because an effort crowned with success ought to bring its reward with it.
But I hold that these good and bad effects, although permanent in themselves, are not so for producers. If this were so, a principle of gradual and subsequently infinite inequality between men would have been introduced, and this is why these favorable and unfavorable events are soon absorbed into the general fortunes of the human race.
How does this work? I will give a few examples to help it to be understood.
Let us go back to the thirteenth century.51 The men who devoted themselves to the art of copying received for their services payment that was governed by the general level of profits. Among them, there happened to be one who sought and discovered the means to increase the copies of the same book rapidly. He invented printing.
In the first instance, one man became richer and many others grew poorer. At first glance, however marvelous the discovery was, people hesitated as to whether it was not more disastrous than useful. It seemed that it was introducing into the world, just as I said, an element of indefinite inequality. Gutenberg made money with his invention and extended his invention using this money, and did this ad infinitum until he had ruined all other copiers. As for the public, the consumers, they gained little, for Gutenberg took care to decrease the price for his books to no more than was necessary to undercut his rivals.
But the thought that put harmony into the movement of the heavenly bodies was also able to insert it into the internal mechanisms of society. We will see the economic advantages of the invention escape from one individual and become the common and eternal heritage of the masses.
In the event, the procedure ended up by becoming known. Gutenberg was no longer the only printer; others imitated him. Their profits were at first considerable. They were rewarded for being the first to go down the path of imitation, and this was still necessary in order to attract them and so that they could contribute to the great result we were approaching. They earned a great deal, but less than the inventor, since competition had begun to work. The price of books continued to decrease. The profits of the imitators decreased as the date of the invention receded, that is to say, as imitation became less meritorious. Soon the new industry reached its normal state, in other words, the pay given to printers was no longer exceptional and, as for scribes in former times, it was governed only by the general level of profitability. Thus production , as such, returned to what it had been at the beginning . The invention was, nevertheless, no less of a boon; the saving in time, work, and effort for a given result, for a determined number of items, was nonetheless achieved. But how does it manifest itself? Through the low price of books. And for whose benefit? For the benefit of consumers, society, and the human race. Printers, who now have no exceptional merit, no longer receive exceptional remuneration. As men and consumers, they are doubtless beneficiaries of the advantages that the invention has bestowed on the community. But that is all. As printers and as producers, they are once again subject to the common conditions governing all producers in the country. Society pays them for their work, and not for the usefulness of the invention. The invention itself has become part of the common heritage and free to the entire human race.
I admit that the wisdom and beauty of these laws have struck me with admiration and respect. I see Saint-Simonist doctrines52 in them: To each according to his capacity, to each capacity according to his work. I see communism in them, that is to say, the tendency for property to become the common heritage of men. But this is a Saint-Simonism and a communism governed by infinite farsightedness, and not in the slightest abandoned to the fragility, passions, and arbitrary rule of men.
What I have said about printing can be said about all the tools of work, from the hammer and nail to the locomotive and electric telegraph. Society benefits from everything through the abundance of the things it consumes, and benefits from these freely, for their effect is to reduce the price of objects; and the entire portion of the price that has been abolished and that represents fully the contribution of the invention in the production process obviously makes the product free to this extent. All that remains to be paid for is the human work, the work done now and this is paid for, regardless of the resulting benefit of the invention, at least where it has gone through the cycle I have just described and which it is destined to go through. I call a workman to my home; he arrives with a saw, I pay two francs for his day's work and he produces twenty-five planks. If the saw had not been invented, he would probably not have made a single plank and I would not have paid him any less for his day's work. The usefulness produced by the saw is therefore a free gift of nature to me; or rather it is a portion of the heritage I have received, in common with all my fellows, from the intelligence of our ancestors. I have two workers in my field. One holds the handles of a plough, the other the handle of a spade. The result of their work is very different but their day's pay is the same since pay is not subject to the usefulness produced but to the effort or the work required.
I call upon the reader's patience and beg him to believe that I have not lost sight of commercial freedom. Let him just remember the conclusion that I have reached: Remuneration is not in proportion to the useful contributions that the producer brings to the market but to his work.53
I have taken my examples from human inventions. Let us now talk about natural advantages.
All products incorporate a contribution from both nature and man. However the portion of usefulness contributed by nature is always free. Only that portion of usefulness resulting from human work is subject to exchange and consequently to remuneration. This doubtless varies a great deal because of the intensity of the work, the skill required, its promptness, its relevance, the need for it, the temporary absence of competition, etc. etc. But it is no less true in principle that the contribution of natural laws, which belong to everyone, does not enter into the price of the product.
We do not pay for the air we breathe, although it is so useful to us that we would not be able to live for two minutes without it. In spite of this, we do not pay for it because nature supplies it to us without any human intervention. If, however, we wish, for example, to separate out one of the gases that make it up to carry out an experiment, we have to make a certain effort or, if we have someone else make the effort, we will have to sacrifice to him an equivalent amount of effort that we have put into another product. In this way we see that there is an exchange in pain, effort, and work. It is not really for oxygen that I am paying, since it is available to me everywhere, but for the effort required to separate it out, work that I have been spared and which I need to compensate. Will I be told that other things, such as expenses, materials, or apparatus, need to be paid for? Once again, it is the work contained in these things that I am paying for. The price of the coal used represents the work that has needed to be done to extract and transport it.
We do not pay for sunlight since nature lavishes it on us. But we pay for the light obtained from gas, tallow, oil, or wax because this includes human work that requires remuneration. And note that the remuneration is so closely proportioned to the work done and not to its usefulness, that it may well happen that one of these sources of light, even though it is much brighter than the others, is nevertheless less expensive. For this to happen, all that is necessary is for the same quantity of human work to produce more.
When a water carrier comes to supply my house, if I paid him according to the absolute usefulness of the water, my entire fortune would not be enough. However I pay him according to the trouble he has taken. If he demanded more, others would take over, and in the end, if need be, I would take the trouble myself. Water is not really the subject of our bargain, but in reality the work involved in relation to the water. This point of view is so important and the consequences I am going to draw from it so illuminating, with regard to international free trade, that I feel I have to elucidate my ideas with other examples.
The quantity of nourishment contained in potatoes does not cost us very much because we obtain a great deal with very little work. We pay more for wheat because, in order to produce it, nature requires a great deal of human work. It is obvious that, if nature behaved in the same way for one as for the other, their prices would tend to level out. It is not possible for wheat producers to earn much more on a regular basis than potato producers. The law of competition prevents this.
If, by a happy miracle, the fertility of all arable land happened to increase, it would not be the farmer but the consumer who would reap the advantage of this phenomenon, because the result would be abundance and cheap prices. There would be less labor incorporated in each hectoliter of wheat54 and the farmer would be able to trade it only for less labor incorporated in another product. If, on the contrary, the fertility of the soil suddenly decreased, the contribution by nature to production would be less, the contribution of work more, and the product would be more expensive. I was therefore right to say that it is in consumption, in the human race, that all economic phenomena are resolved in the long run. As long as we have not followed their effects to this point, as long as we stop at the immediate effects, those that affect one man or one class of men, as producers, we are not being economists, any more than someone who, instead of monitoring the effects of a potion on the whole of the organism but limits himself to observing how it affects the palate or throat in order to judge it, is a doctor.55
Tropical regions are highly suited to the production of sugar and coffee. This means that nature carries out the majority of the task and leaves very little work to be done. Who then reaps the advantages of this generosity of nature? It is not at all these regions, since competition means that they receive payment only for their work; it is the human race, since the result of this generosity is called low prices, and they belong to everyone.
Here we have a temperate zone in which coal and iron ore are on the surface of the land and you have only to bend down to pick it up. In the first instance, the inhabitants benefit from this happy circumstance, I agree. But soon, competition will start and the price of coal and iron will decrease to the point where the gift of nature is free to everyone and human work alone is remunerated in accordance with the general level of profitability.
In this way, the generosity of nature, like the advances made in production processes, are or constantly tend to become the common and free heritage of consumers, the masses and the human race, in accordance with the law of competition. Therefore the countries that do not have these advantages have everything to gain from trading with those that do, because it is work which is exchanged, setting aside the natural utilities that work encompasses; and obviously the countries that are most favored have incorporated the most of these natural utilities in a given amount of production. Their products, since they represent less work, fetch lower prices; in other words they are cheaper, and if all the generosity of nature results in cheapness, obviously it is not the producing country but the consuming country that receives the benefit.
From this we see the immense absurdity of this consumer country if it rejects a product precisely because it is cheap; it is as though it were saying: "I do not want anything that nature provides. You are asking me for an effort worth two in order to give me a product that I can create only with work worth four; you can do this because in your country nature has accomplished half of the work. Well then! I for my part will reject it and I will wait until your climate has become more inclement and forces you to require work worth four from me, so that we may trade on an equal footing."
A is a favored country. B is a country ill treated by nature. I say that trade is beneficial to both of them and especially to B since the trade is not in utilities for utilities but in value for value. Well, A includes more utilities in the same value, since the utility of the product encompasses what nature has contributed to it as well as what work has contributed, whereas the value corresponds only to what work has contributed. Therefore, B strikes a bargain that is wholly to its advantage. In paying the producer in A simply for his work, it receives more natural utilities that it gives over and above the trade.56
Let us set out the general rule.
A trade is an exchange of values; since the value is reduced by competition to the work involved, trade is thus an exchange of equal work. What nature has provided to the products being traded is given from one to the other freely and over and above the trade, from which it strictly follows that trade with the countries most favored by nature are the most advantageous.
The theory whose lines and contours I have tried to trace in this article needs to be developed more fully. I have discussed it as it relates to my subject, commercial freedom. But perhaps an attentive reader will have perceived the fertile seed, the growth and spread of which will necessarily stifle protection, along with protectionism, Fourierism,57 Saint-Simonism,58 communism, and all the schools whose object is to exclude the law of COMPETITION from the governance of the world. Considered from the point of view of producers, competition doubtless upsets our individual and immediate interests, but if you consider it from the point of view of the general aim of all production, of universal well-being, in a word of consumption, you will find that competition accomplishes the same role in a moral world as equilibrium does in a material one. Competition is the foundation of genuine communism, true socialism, and the equality of well-being and conditions, so longed for these days, and if so many sincere political writers, so many reformers of good faith demand this equality from arbitrary government power , it is because they do not understand freedom.59
Endnotes44 (Bastiat's note) The Vicomte de Romanet. [Auguste, Vicomte de Romanet (n.d.), was a staunch protectionist who served on the Conseil général de l'agriculture, du commerce, et des manufactures. See the glossary entry on "Romanet."]
45 (Bastiat's note) Mathieu de Dombasle. [Joseph Alexandre Mathieu de Dombasle (1777-1843) was an agronomist who introduced the practice of triennial crop rotation (cereals, forage, vegetables) in France. He also wrote on the sugar-beet industry, De l'impôt sur le sucre indigène: Nouvelles considerations (1837). See the glossary entry on "Dombasle."]
46 It is not surprising that Romanet would compare economic competition to a horse race as he had a great interest in horse racing, having given a paper to the Academy of Sciences on this topic in June 1843. See the lengthy summary of the Mémoire which he gives in his pamphlet to promote his candidature to the Academy. Mémoire sur le principe de l'amélioration des races de chevaux, et sur la préférence qui doit être accordée, comme moyen d'encouragement, soit aux prix de course, soit aux primes locales, Suivant Le Sexe De L'animal. Lu à l'Académie des sciences le 19 juin 1843. Notice sur les travaux de M. le vte de Romanet. Membre du Conseil général de l'agriculture, du commerce et des manufactures, à l'appui de sa candidature à la place d'Académicien libre, vacante par le décès de M. le duc de Raguse (Paris: Bouchard-Huzard, 1852). See the glossary entry on "Romanet."
47 Guyenne was an old province in the south west of France, with Bordeaux as its capital city. It covered roughly the same territory as Bastiat's homeland, Les Landes. Brittany is a peninsula in the most north western part of France. See the glossary entry on "Les Landes" and the maps above, pp. ???
48 Quimper is a commune in Brittany in the north west of France. In 1846 the population was about 11,000 people. It was sometimes the butt of jokes because of its remoteness from Paris, its small size, and the fact that its inhabitants spoke the Breton language.
49 Throughout the nineteenth century, European currencies were based on the gold standard. See the glossary entry on "French Currency" and ES1 XI. "Nominal Prices" for more discussion of this.
50 Here Bastiat is grappling with the concept which in two years time he was to call the "ricochet effect" (or flow effect) to describe the interconnectedness of all economic activity and the need to be aware of immediate effects (the seen) and later indirect effects (the unseen). He uses the word "glisser" (to slide or slip) in this sentence. See a later occurrence of this in ES3 XV "A Little Manual for Consumers", below pp. ??? and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
51 Bastiat is mistaken. Johannes Gutenberg (1398–1468) invented printing using movable type in the 1440s, so it should read here the 15th not the 13th century.
52 Claude Henri de Rouvroy, count of Saint-Simon (1760-1825) was a writer and social reformer who founded one of the main schools of socialist thought during the Restoration which continued to be influential throughout the July Monarchy. He advocated rule by a new technocratic elite which would replace the old aristocracy and state-supported industry which would replace what he thought was the injustice and chaos of the free market. See the glossary entry on "Saint-Simon."
53 (Bastiat's note) It is true that work is not uniformly remunerated. It is more or less intense, dangerous, skillful, etc. Competition establishes a market price for each category, and I am talking here about the variable price for this kind of work.
54 One hectorlitre is 100 litres or about 22 U.S. gallons.
55 It should be noted that is was a severe throat condition (possibly cancer) which killed Bastiat at the end of 1850. As it was an extremely painful disease which hindered his work as a writer and politician Bastiat saw his doctor many times in the last years of his life to get some relief. Thus, he had some personal experience of what he is saying in this passage. See a brief discussion of Bastiat's fatal condition in "The Cause of Bastiat's Untimely Death" in "Anecdotes and Reflections" in the Collected Works, vol. 2, pp. 413-14.
56 Bastiat is referring here to David Ricardo's idea of international comparative advantage, which he proposed in his Principles of Political Economy and Taxation (1817). A French translation by Constancio appeared in 1818, with notes by Jean-Baptiste Say; it was republished with his Complete Works in 1847 with additional notes and translated material by Fonteyraud. See Oeuvres complètes de D. Ricardo. See also Boudreaux, "Comparative Advantage," Concise Encyclopedia of Economics, <https://www.econlib.org/library/Enc/ComparativeAdvantage.html> and the glossary entry on "Ricardo."
57 François-Marie Charles Fourier (1772-1837) was a socialist and founder of the phalansterian school or "Fourierism." This consisted of a utopian, communistic system for the reorganization of society in which individuals would live together as one family and hold property in common. See the glossary entries on "Fourier" and "Utopias."
58 Claude Henri de Rouvroy, count of Saint-Simon (1760-1825) was a writer and social reformer who founded one of the main schools of socialist thought during the Restoration which continued to be influential throughout the July Monarchy. He advocated rule by a new technocratic elite which would replace the old aristocracy and state-supported industry which would replace what he thought was the injustice and chaos of the free market. See the glossary entry on "Saint-Simon."
59 (Paillottet's note) The theory sketched out in this article is the one that was developed in the Economic Harmonies four years later. Remuneration exclusively limited to human work, the exemption from payment of natural agents, the gradual mastery of these agents for the benefit of the human race whose common heritage they thus become, the elevation of general well-being, and the tendency for conditions to become relatively level: these are all recognizable as being the essential elements of Bastiat's major works.
T.30 (1845.07.15) "Our Products are weighed down with Taxes" (JDE, July 1845)↩
SourceT.30 (1845.07.15) "Our Products are weighed down with Taxes" (Nos produits sont grevés de taxes), Journal des Économistes, July 1845, T. 11, no. 44, p. 356-60; also ES1.5. [OC4.1.5, pp. 46-52.] [CW3 - ES1.5]
TextV. Our Products are weighed down with Taxes [July 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Nos produits sont grevés de taxes" (Our Products are weighed down with Taxes) [JDE, July 1845, T. 11, p. 356-60].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 46-52.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
This is the same sophism. People demand that foreign products be taxed in order to neutralize the effects of the taxation that burdens our national products. This too, then, is about equalizing the conditions of production. The only observation we would want to make is that tax is an artificial obstacle with exactly the same result as a natural obstacle: it forces prices to rise. If this rise reaches the point at which a greater loss is incurred in creating the product itself than there is in bringing it in from outside and creating a counter value for it, let it happen.60 Private interest will be fully capable of choosing the lesser of two evils. I could therefore refer the reader back to the preceding argument, but the sophism that I have to combat here recurs so often in the complaints and appeals, I might almost say the pressing claims, of the protectionist school, that it is well worth discussing it separately.
If we want to discuss one of those special taxes to which certain products are subject, I will readily agree that it is reasonable to subject foreign products to these also. For example, it would be absurd to exempt foreign salt from tax, not that from an economic point of view France loses anything, on the contrary. Whatever we say about this, principles are constant, and France would gain, just as she will always gain from avoiding a natural or artificial obstacle. However, here the obstacle has been established with a fiscal aim. This aim has to be achieved, and if foreign salt were to be sold in our market free of duty the treasury would not recover its hundred million and would have to exact this amount from some other form of taxation. It would quite evidently be contradictory to put in the way of a specific policy an obstacle calculated to prevent it. It would have been better to address this other tax first of all and not tax French salt.61 These are the circumstances that I accept for inflicting a duty that is not protectionist but fiscal on a foreign product.
But to claim that a nation has to protect itself through tariffs against competition from a rival because it is subject to heavier taxes than a neighboring country, this is where the sophism lies, and this is what I intend to attack.
I have said several times that I intend only to set out a theory and go back, as far as I am able, to the sources of the protectionists' errors. If I were indulging in polemics, I would say to them "Why are you aiming tariffs principally against England and Belgium, the countries in the world that are most burdened with taxes? Am I not entitled to see in your argument only a pretext?" However, I am not one of those who believe that people are protectionist through interest and not through conviction. Protectionist doctrine is too popular not to be sincere. If the majority had faith in freedom, we would be free. Doubtless it is private interest that causes our tariffs to weigh down on us so heavily, but this is after it has acted on our convictions. "Will," said Pascal,62 "is one of the principal organs of belief."63 However, belief is no less real for having its roots in will and in the secret inspiration of egoism.
Let us return to the sophism derived from taxation.
The state can make good or bad use of taxes; it makes good use of them when it provides the public with services that are equivalent to the flow of revenue the public contributes to it. It makes bad use of them when it squanders these resources without giving anything in return.
In the first case, to say that taxes put the country that pays them in a less favorable position with regard to production than one that does not pay them is a sophism. We pay twenty million for law and the police,64 it is true, but we have law and the police, the security they provide us and the time they save us, and it is highly probable that production is neither easier nor more active in those nations, if they exist, where everyone carries out law and order for himself. We pay several hundred million for roads, bridges ports, and railways, I agree.65 But we have these railways, ports, and roads, and unless we claim that we are making a bad bargain in building them, nobody can say that they make us inferior to those peoples who, it is true, do not contribute to a budget for public works but do not have any public works either. And this explains why, while accusing taxes of being one of the causes of inferior industrial capacity, we aim our tariffs precisely against those nations that are the most taxed. It is because taxes, when used well, far from damaging them, have improved the conditions of production of these nations. So we always come to the same conclusion, that protectionist sophisms not only depart from the truth but are also contrary, are the direct opposite, to the truth.66
As for taxes that are unproductive, abolish them if you can. The strangest conceivable way of neutralizing their effects, however, is surely to add specific individual taxes to public ones. Spare us any such compensation! The state has taxed us too much, you say. Well then, all the more reason for our not taxing each other any further!
A protectionist duty is a tax aimed against a foreign product but which falls, and let us never forget this, on the national consumer. Now, the consumer is a taxpayer. And is it not ludicrous to say to him: "Since taxes are heavy, we are going to raise the prices of everything to you; since the state takes a part of your income, we are going to pay another part to the monopoly"?
But let us probe further a sophism so esteemed by our legislators, although it is rather extraordinary that it is precisely those who maintain unproductive taxes (the proposition I am drawing your attention to now) who are attributing our alleged industrial inferiority to them in order to make this good subsequently through other taxes and restrictions.
It appears obvious to me that, without changing its nature and effects, protection might have taken the form of a direct tax raised by the state and distributed through indemnity subsidies to privileged industries .
Let us assume that foreign iron can be sold in our market at 8 francs and no lower and French iron at 12 francs and not below this.
Under such circumstances, the state has two ways of ensuring that the national producer retains a dominant position in the market.
The first is to subject foreign iron to a duty of 5 francs. It is clear that foreign iron would be excluded since it could now be sold only at 13 francs, 8 francs being the cost price and 5 francs the tax, and that at this price it would be chased out of the market by French iron, which we have taken to cost 12 francs. In this case, the purchaser, the consumer, will have paid all the costs of this protection.
The state might also have imposed a tax of 5 francs on the public and given it as a subsidy to ironmasters. The protectionist effect would have been the same. Foreign iron would have been equally excluded, since our ironmaster would have sold at 7 francs which, with the subsidy of 5 francs, would give him his profitable price of 12 francs. However, faced with iron at 7 francs, foreigners would not be able to deliver theirs at 8.
I can see only one difference between these two systems: the principle is the same and the effect is the same, except that in one case protection is paid for by a few and in the other by all.
I admit frankly my preference for the second system. It seems to me more just, more economic, and more straightforward. More just because if society wants to give handouts to a few of its members, everyone has to contribute; more economic because it would save a great deal in collection costs and would cause a great many restrictions to disappear and finally, more straightforward since the public would see clearly how the operation worked and what they were being made to do.
If the protectionist system had taken this form, however, would it not be rather risible to hear it said, "We pay heavy taxes for the army, navy, law and order, public works, the university, the national debt, etc. and this exceeds a billion.67 For this reason, it would be a good thing if the state took another billion from us to ease the situation of these poor ironmasters, these poor shareholders of Anzin,68 these unfortunate owners of forests, and these cod fishermen who are so useful."
If you look closely, you will see that this is what the significance of the sophism I am combating is reduced to. Whatever you do, sirs, you can give money to some only by taking it from others. If you genuinely wish to drain taxpayers dry, go ahead, but at least do not mock them and say to them, "I am taking from you to compensate you for what I have already taken from you."
We would never reach the end of it if we wished to note everything that is false in this sophism. I will limit myself to three considerations.
You win acceptance for the fact that France is burdened with taxes in order to infer that such and such an industry ought to be protected. But we have to pay these taxes in spite of protection. If therefore an industry comes forward and says, "I contribute to the payment of taxes; this raises the cost price of my products and I demand that a protectionist duty should also raise the sales price," what else is it demanding than to discharge its tax onto the rest of the community? It claims to be recouping the increase in tax it has paid by raising the price of its products. So, as all taxes have always to be paid to the treasury, and as the masses have to bear this increase in price, they pay both their taxes and those of this industry. "But," you will say, "everyone is being protected." Firstly, this is impossible and, even if it were possible, where would the relief be? I am paying for you and you for me; but the tax still needs to be paid.
In this way, you are being fooled by an illusion. You want to pay taxes to have an army, a navy, a religion, a university, judges, roads, etc., and then you want to relieve of its share of taxes first one industry, then a second, and then a third, always by sharing the burden among the masses. But you are doing nothing other than creating interminable complications, with no other result than these complications themselves. Prove to me that the increase in price resulting from protection falls on foreigners, and I will be able to see something specious in your argument. But if it is true that the French public paid the tax before the law and that after the law it paid both the protection and the tax, then I really do not see what it gains by this.
I will even go much further; I say that the heavier our taxes are, the more we should be in a hurry to open our ports and frontiers to foreigners who are less taxed than us. Why? In order to pass on to them a greater part of our burden. Is it not an undeniable axiom in political economy that, in the long run, taxes fall on the consumer? The more our trading transactions are increased, the more foreign consumers will reimburse us the taxes included in the products we sell them, while we would have to make them in this respect, only a lesser restitution, since according to our hypothesis their products are less taxed than ours.
In sum, have you never asked whether these heavy taxes that you use in argument to justify the protectionist regime are not caused by this regime itself? I would like to be told what the great standing armies and the powerful navies would be used for if trade were free. . . . But this is a question for politicians,
And let us not confuse, by going too deeply,
Their business with ours.69 70
Endnotes60 "Laissez faire" in the original. See the glossary entry on "Laissez-faire."
61 The domestic tax on salt, or "gabelle" as it was known under the old regime was a much hated tax on an item essential for preserving food. It was abolished during the 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. 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. Bastiat's proposed cut to 10 centimes in January 1847 was the same level adopted by the new government in 1848. See E. de Parieu, "Sel", DEP, vol. 2, pp. 606-09. See the Appendix on "French Government Finances in 1848-49."
62 Blaise Pascal (1623-62) was a French mathematician and philosopher whose best-known work, Pensées, appeared only after his death. See the glossary on "Pascal."
63 "The will is one of the chief organs of belief, not that it forms belief, but that things are true or false according to the side on which we view them. The will which chooses one side rather than the other turns away the mind from considering the qualities of all that it does not like to see, thus the mind, moving in accord with the will, stays to look at the side it chooses, and so judges by what it sees." From "The Authenticity of Sacred Books," in Molinier, The Thoughts of Blaise Pascal, p. 128.
64 According to the Budget Papers for 1848 fr. 26.million was spent on courts and tribunals b y the ministry of justice. See the Appendix on "French Government Finances in 1848-49."
65 It is not clear where Bastiat gets these figures. According to the Budget Papers for 1848 the ordinary expenditure for the Ministry of Public Works was fr. 63.5 million and extraordinary expenditure was fr. 47.4 million and fr. 74.8 million on the railways for a total of fr. 185.7 million. Additional amounts were spent on public works in Algeria by the Ministry of War and on local public works by the départements. See the Appendix on "French Government Finances in 1848-49."
66 (Paillottet's note) See chapter XVII of the Harmonies (OC, vol. 6, chap. 17, "Services privés, services publics").
67 The French government annual expenditure in 1848 was fr. 1.446 billion and its receipts were fr. 1.391 billion, resulting in a deficit of fr. 55 million. See the Appendix on "French Government Finances in 1848-49."
68 The Compagnie des mines d'Anzin was a large coal-mining company in the north of France near the town of Anzin. It was founded in 1757 and nationalized by the French government in 1949. It was the setting for Émile Zola's novel Germinal (1885), where it was used as a symbol of French capitalism.
69 (Paillottet's note) See the pamphlet Peace and Freedom in vol. 5 (OC, vol. 5, "Paix et liberté ou le budget républicain"). [This quotation comes from the very end of Fontaine's fable "La Belette entrée dans un grenier" (The Weasel That Got Caught in the Storeroom), about a weasel that was able to squeeze through a small hole in order to get into a grain-storage room. Once inside it ate so much that it got bigger and couldn't get back out through the same hole in the wall. A rat, on seeing its predicament, says that, after 5 or 6 days of not eating, "you would have then a belly that is much less full. You were thin to get in, you'll have to be thin to get out. What I'm telling you now, you've well heard from others: but let us not confuse, by going too deeply, their business with yours." From La Fontaine, Fables de La Fontaine, Bk. 3, Fable 17, p. 121.]
70 Jean de La Fontaine (1621-1695) was a poet and writer of fables which have become famous for their surface simplicity which masks much deeper moral and political insights. See the glossary on "La Fontaine".
T.31 (1845.08.15) "On the Future of the Wine Trade between France and England" (JDE, Aug., 1845)↩
SourceT.31 (1845.08.15) "On the Future of the Wine Trade between France and England" (De l'avenir du commerce des vins entre la France et la Grande-Bretagne), Journal des Économistes, Aug. 1845, T. 12, no. 45, pp. 72-74. [OC1, pp. 387-92.] [CW6]
Text(insert HTML of file here)
T.32 (1845.10.15) "Economic Sophisms (cont.): VI. The Balance of Trade" (JDE, Oct., 1845)↩
SourceT.32 (1845.10.15) "Economic Sophisms (cont.): VI. The Balance of Trade" (Balance du commerce), Journal des Économistes, Oct. 1845, T. 12, no. 47, p. 201-04; also ES1.6. [OC4, pp. 52-57.] [CW3 - ES1.6]
TextVI. The Balance of Trade [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Balance du commerce" (The Balance of Trade) [JDE, October 1845, T. 12, p. 201-04].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 52-57.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
Our opponents have adopted a tactic which we cannot help feeling embarrassed about. Are we getting our views across? They accept them with the utmost respect. Are we attacking their fundamental approach? They abandon it with the best grace in the world. They ask for only one thing, that is that our views, which they hold to be true, should be relegated to books and that their approach, which they acknowledge to be faulty, should reign over the carrying out of business. Leave them the handling of tariffs and they will not dispute your having the domain of theory.
"Certainly", said M. Gaulthier de Rumilly71 recently, "none of us wants to resurrect the old theories on the balance of trade." Very well, but M. Gaulthier, it is not enough just to administer a slap in the face to error as you pass by; you must also desist from reasoning immediately afterward and for two hours at a time as though this error was the truth.
Talk to me about M. Lestiboudois.72 Here is someone who reasons consistently, a logician who can debate. There is nothing in his conclusions that is not in his premises: he asks nothing of practice that he cannot justify in theory. His basic ideas may be false, and that is indeed the dispute. But at least he has some basic ideas. He believes and proclaims loudly that if France pays ten to receive fifteen it is losing five, and he quite straightforwardly makes laws in this light.
"What is important," he says, "is that the figure for imports is constantly increasing and exceeds that for exports, that is to say, each year France purchases more foreign products and sells fewer products produced nationally. The figures are there to prove it. What do we see? In 1842, we see imports exceed exports by 200 million.73 These facts appear to me to prove with utter clarity that national work is not sufficiently protected, that we let foreign work take care of our needs and that competition from our rivals is beating our industry down. The law currently in force appears to sanction the fact that it is not true, contrary to what economists say, that when we buy we sell of necessity a corresponding portion of goods. It is obvious that we can buy things, not with our customary products, not with our income, not with the fruit of ongoing production but with our capital, with products that have been accumulated and saved and those used for making more, that is to say, we can spend and dissipate the profits of previous savings, that we can grow poorer and march toward our ruin and that we can consume the national capital in its entirety. This is exactly what we are doing. Each year, we give 200 million to foreigners."
Well then, here is a man with whom we can agree. His language contains no hypocrisy. The balance of trade is set out clearly. France imports 200 million more than it exports. Therefore, France is losing 200 million a year. And the remedy? To prevent imports. The conclusion is irreproachable.
It is therefore M. Lestiboudois whom we are going to attack, for how can we combat M. Gaulthier? If you say to him, "The balance of trade is a mistake," he will reply to you, "That is what I have put forward in my introductory remarks." If you exclaim "But the balance of trade is a truth", he will reply to you "that is what I have stated in my conclusions". The Economist School74 will doubtless criticize me for debating with M. Lestiboudois. Combating the balance of trade, I will be told, is like titling at windmills.
Take care, however, the balance of trade is neither as old, nor as sick, nor as dead as M. Gaulthier wishes to tell us, for the entire Chamber, including M. Gaulthier himself, aligned themselves with M. Lestiboudois's theory through their vote.
However, in order not to tire the reader, I will not go into this theory. I will content myself with subjecting it to the test of facts.
Our principles are constantly being accused of being correct only in theory. But tell me, sirs, do you believe that the account books of businessmen are correct in practice? It seems to me that, if there is anything in the world that has practical authority when it is a question of ascertaining profits and losses, it is commercial accounting. Apparently all the traders on earth have not agreed down the centuries to keep their books in such a fashion that profits are shown as losses and losses as profits. Truly, I would prefer to believe that M. Lestiboudois is a bad economist.
Well, when one of my friends, who is a trader, completed two operations with very contrasting results, I was curious to compare the accounts of the warehouse with those of the customs service, interpreted by M. Lestiboudois with the sanction of our six hundred legislators.
M. T. shipped from Le Havre to the United States a cargo of French goods, in the majority products known as Articles de Paris,75 for an amount of 200,000 fr. This was the figure declared to the customs. When it arrived in New Orleans, it was found that the cargo had incurred 10 percent of costs and paid 30 percent in duty, which made it worth 280,000 fr. It was sold at a profit of 20 percent, or 40,000 fr. and produced a total of 320,000 fr., which the consignee converted into cotton. These cotton goods further had to bear 10 percent costs for transport, insurance, commission, etc. so that, when it entered Le Havre, the new cargo was worth 352,000 fr. and this was the figure recorded in the registers of the customs. Lastly, M. T. made another 20 percent profit on this return shipment, or 70,400 fr.; in other words, the cotton goods were sold for 422,400 fr.
If M. Lestiboudois requires it, I will send him an excerpt from M. T's books. He will see there under the credits of the profit and loss account, that is to say as profits, two entries, one for 40,000, the other for 70,400 fr., and M. T. is totally convinced that in this respect his accounts are not misleading him.
However, what do the figures that the customs have recorded regarding this operation tell M. Lestiboudois? They tell him that France has exported 200,000 fr. and that it has imported 352,000 fr., from which the honorable deputy concludes, "that it has spent and dissipated the profits of previous savings, that it has impoverished itself, that it is marching toward ruin and that it has given 152,000 fr. of capital to foreigners."
A short time afterward, M. T. shipped another cargo of nationally produced goods worth 200,000 fr. But the unfortunate ship foundered on leaving the port and M. T. was left with no alternative but to record in his books two short entries as follows:
Various goods debited to X for 200,000 fr. for the purchase of various articles shipped by the boat N.
Profit and loss due to various goods 200,000 fr. for the total and final loss of the cargo.
In the meantime, the customs had recorded for its part 200,000 fr. on its export table, and since it will never have anything to record on the imports table, it follows that M. Lestiboudois and the Chamber will see in this shipwreck a clear, net profit of 200,000 fr. for France.
One more consequence has to be drawn from this, which is 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.
This is a joke, the protectionists will say. It is impossible for us to say such absurd things. However, you are saying them and what is more, you are doing them, you are imposing them in practice on your fellow citizens, at least as far as you are able.
The truth is that the balance of trade would have to be taken backward and national profit in foreign trade calculated through the excess of imports over exports. This excess, with costs deducted, is the genuine profit. But this theory, which is the correct one, leads directly to free trade. I hand this theory to you, sirs, like all the others that were the subject of the previous chapters. Exaggerate it as much as you like, it has nothing to fear from such a test. Assume, if that amuses you, that foreigners swamp us with all sorts of useful goods without asking us for anything; if our imports are infinite and our exports nil, I challenge you to prove to me that we would be the poorer for this.76
Endnotes71 Louis Gaulthier de Rumilly (1792-1884) was trained as a lawyer and served as a Deputy between 1830-34 and 1837-40. He was active in the Société d'encouragement pour l'industrie nationale (Society to Promote National Industry) and had a special interest in agriculture, railroads, and tariffs. See the glossary entry on "Rumilly" and "Society to promote National Industry."
72 Thémistocle Lestiboudois (1797–1876) 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. In 1847 he published the pro-tariff book Économie politique des nations. See the glossary on "Lestiboudois."
73 The figures for 1847 are similar. The estimated amount of total exports from France was fr. 1,271 million and the total amount of imports was fr. 1,343 million producing a trade imbalance of fr. 172 million (p. 23). See the article "Commerce extérieur de la France pour l'année 1847," in Annuaire de l'économie politique (1849), pp. 18-67.
74 The "Economists school" or "Les Économistes" 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."
75 "Articles de Paris" were high priced luxury goods produced in France and included leather goods, jewelry, fashion clothing, perfume, and other such goods.
76 (Paillottet's note) In March 1850, the author was once more obliged to combat the same sophism, which he meant to produce on the national rostrum. He altered the preceding demonstration by excluding from his calculations the cost of transport, etc. See "Balance of Trade" in vol. 5 (OC, vol. 5, "Balance du Commerce," p. 402).
T.33 (1845.10.15) "Economic Sophisms (cont.): VII. Petition by the Manufacturers of Candles, etc." (JDE, Oct., 1845)↩
SourceT.33 (1845.10.15) "Economic Sophisms (cont.): VII. Petition by the Manufacturers of Candles, etc." (Pétition des fabricants de chandelles, etc.), Journal des Économistes, Oct. 1845, T. 12,no. 47, p. 204-07; also ES1.7. [OC4, pp. 57-62.] [CW3 - ES1.7]
TextVII. Petition by the Manufacturers of Candles, etc. [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Pétition des fabricants de chandelles, etc." (Petition by the Manufacturers of Candles, etc.) [JDE, October 1845, T. 12, p. 204-07].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 57-62.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
By the manufacturers of tallow candles, wax candles, lamps, candlesticks, street lamps, snuffers, extinguishers and producers of tallow, oil, resin, alcohol, and in general everything that relates to lighting
To Honorable Members of the Chamber of Deputies
Sirs,
You are doing all right for yourselves. You are rejecting abstract theories; abundance and cheapness are of little account to you. You are concerned most of all with the fate of producers. You want them to be free from foreign competition, in a word, you want to keep the domestic market for domestic labor.
We come to offer you a wonderful opportunity to apply your . . . what will we call it? Your theory? No, nothing is more misleading than theory. Your doctrine? Your system? Your principles ? But you do not like doctrines, you have a horror of systems and as for principles , you declare that none exists in the economic life of society. We will therefore call it your practice, your practice with no theory and no principle.
We are suffering from the intolerable competition of a foreign rival whose situation with regard to the production of light, it appears, is so far superior to ours that it is flooding our national market at a price that is astonishingly low for, as soon as he comes on the scene, our sales cease, all consumers go to him, and a sector of French industry whose ramifications are countless is suddenly afflicted with total stagnation. This rival, which is none other than the sun, is waging such a bitter war against us that we suspect that it is instigated by perfidious Albion77 (good diplomacy in the current climate!), especially as it treats this proud island in a way which it denies us.78
We ask you to be good enough to pass a law which orders the closure of all windows, gables, shades, wind-breaks, shutters, curtains, skylights, fanlights, blinds, in a word, all openings, holes, slits, and cracks through which the light of the sun is accustomed to penetrate into houses to the disadvantage of the fine industries that we flatter ourselves that we have given to the country, which cannot now abandon us to such an unequal struggle without being guilty of ingratitude.
Deputies, please do not take our request for satire and do not reject it without at least listening to the reasons we have to support us.
Firstly, if you forbid as far as possible any access to natural light, if you thus create a need for artificial light, what industry in France, would not bit by bit be encouraged?
If more tallow is consumed, more cattle and sheep will be needed and consequently, we will see an increase in artificial meadows, meat, wool, leather and above all, fertilizer, the basis of all agricultural wealth.
If more oil is consumed, we will see an expansion in the cultivation of poppies, olive trees, and rapeseed. These rich and soil-exhausting plants will be just the thing to take advantage of the fertility that the rearing of animals will have contributed to our land.
Our moorlands will be covered with coniferous trees. Countless swarms of bees will gather from our mountains scented treasures which now evaporate uselessly like the flowers from which they emanate. There is thus no sector of agriculture that will not experience significant development.
The same is true for shipping. Thousands of ships will go to catch whales, and in a short time we will have a navy capable of upholding the honor of France and satisfying the patriotic susceptibility of us who petition you, the sellers of tallow candles, etc.
But what have we to say about Articles de Paris?79 You can already picture the gilt work, bronzes, and crystal in candlesticks, lamps, chandeliers, and candelabra shining in spacious stores compared with which today's shops are nothing but boutiques.
Even the poor resin tapper on top of his sand dune or the poor miner in the depths of his black shaft would see his earnings and well-being improved.
Think about it, sirs, and you will remain convinced that perhaps there is not one Frenchman, from the wealthy shareholder of Anzin to a humble match seller, whose fate would not be improved by the success of our request.
We anticipate your objections, sirs, but you cannot put forward a single one that you have not culled from the well-thumbed books of the supporters of free trade. We dare to challenge you to say one word against us that will not be turned instantly against yourselves and the principle that governs your entire policy.
Will you tell us that if we succeed in this protection France will gain nothing, since consumers will bear its costs?
Our reply to you is this:
You no longer have the right to invoke the interests of the consumer. When the latter was in conflict with the producers, you sacrificed him on every occasion. You did this to stimulate production and to increase its domain. For the same reason, you should do this once again.
You yourselves have forestalled the objection. When you were told: "Consumers have an interest in the free introduction of iron, coal, sesame, wheat, and cloth", you replied: "Yes, but producers have an interest in their exclusion." Well then, if consumers have an interest in the admission of natural light, producers have one in its prohibition.
"But," you also said, "producers and consumers are one and the same. If manufacturers gain from protection, they will cause agriculture to gain. If agriculture prospers, it will provide markets for factories." Well, then, if you grant us the monopoly of lighting during the day, first of all we will purchase a great deal of tallow, charcoal, oil, resin, wax alcohol, silver, iron, bronze, and crystal to fuel our industry and, what is more, once we and our countless suppliers have become rich, we will consume a great deal and spread affluence throughout the sectors of the nation's production.
Will you say that sunlight is a free gift and that to reject free gifts would be to reject wealth itself, even under the pretext of stimulating the means of acquiring it?
Just take note that you have a fatal flaw at the heart of your policy and that up to now you have always rejected foreign products because they come close to being free gifts and all the more so to the degree that they come closer to this. You had only a half reason to accede to the demands of other monopolists; to accede to our request, you have a complete reason and to reject us precisely on the basis that we are better founded would be to advance the equation + x + = -; in other words it would be to pile absurdity on absurdity.
Work and nature contribute in varying proportions to the production of a product, depending on the country and climate. The portion provided by nature is always free; it is the portion which labor contributes that establishes its value and is paid for.
If an orange from Lisbon is sold at half the price of an orange from Paris, it is because natural and consequently free heat gives to one what the other owes to artificial and consequently expensive heat.
Therefore when an orange reaches us from Portugal, it can be said that it is given to us half free and half paid for, or in other words, at half the price compared to the one from Paris.
Well, it is precisely its being half-free (excuse the expression) that you use as an argument to exclude it. You say, "How can domestic labor withstand the competition of foreign labor when domestic labor has to do everything and foreign labor only half of the task, with the sun accomplishing the rest?" But if this matter of things being half-free persuades you to reject competition how will things being totally free lead you to accept competition? Either you are not logicians or, in rejecting half-free products as harmful to our domestic economy, you have to reject totally free goods a fortiori and with twice as much zeal.
Once again, when a product, coal, iron, wheat, or cloth, comes to us from abroad and if we can acquire it with less work than if we made it ourselves, the difference is a free gift bestowed on us. This gift is more or less significant depending on whether the difference is greater or lesser. It ranges from one-quarter to half- or three-quarters of the value of the product if foreigners ask us only for three-quarters, half-, or one-quarter of the payment. It is as total as it can be when the donor asks nothing from us, like the sun for light. The question, which we set out formally, is to know whether you want for France the benefit of free consumption or the alleged advantages of expensive production. Make your choice, but be logical, for as long as you reject, as you do, foreign coal, iron, wheat, and cloth, the closer their price gets to zero, how inconsistent it would be to accept sunlight, whose cost is zero, throughout the day?
Endnotes77 "Perfidious Albion" (or faithless or deceitful England) was the disparaging name given to Britain by its French opponents. It probably dates from the 1790s, when the British monarchy subsidized the other monarchies of Europe in their struggle against the French Republic during the revolution. Bastiat makes fun of this name in a later Sophism by talking about "Perfidious Normandy." See ES2, XIII "Protection, or the Three Municipal Magistrates," below, pp. ???. See the glossary entry on "Perfidious Albion."
78 This is a dig by Bastiat at the famously bad British weather. By making it so often overcast in Britain the sun seems to be favoring the British artificial light industry in a way that it doesn't for the French industry which has to suffer economic hardship because there is more sunny weather (at least in the south of France). The average number of hours of sunshine per year in Britain (1971-2000) was 1,457.4. For France, Lille in the north east had 1,617 hours (1991-2010), Paris had 1,662 hours, Bordeaux (near where Bastiat lived) had 2,035 hours, and Marseille on the Mediterranean had 2,858. For Australia (1981-2010), Townsville in North Queensland had 3,139 hours, Sydney had 2,592, and Hobart in the south had 2,263 hours.
79 "Articles de Paris" were high priced luxury goods produced in France and included leather goods, jewelry, fashion clothing, perfume, and other such goods.
T.34 (1845.10.15) "Economic Sophisms (cont.): VIII. Differential Duties" (JDE, Oct., 1845)↩
SourceT.34 (1845.10.15) "Economic Sophisms (cont.): VIII. Differential Duties" (Droits différentiels), Journal des Économistes, Oct. 1845, T. 12, no. 47, p. 207-08; also ES1.8. [OC4, pp. 62-63.] [CW3 - ES1.8]
TextVIII. Differential Duties [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Droits différentiels" (Differential Duties) [JDE, October 1845, T. 12, p. 207-08].
- Published as book or pamphlet: 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 62-63.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
A poor farmer in the Gironde80 had lovingly cultivated a vine. After a lot of tiring work, he finally had the joy of producing a cask of wine, and he forgot that each drop of this precious nectar had cost his forehead one drop of sweat. "I will sell it," he told his wife, "and with the money I will buy some yarn with which you will make our daughter's trousseau." The honest farmer went to town and met a Belgian and an Englishman. The Belgian said to him, "Give me your cask of wine and in exchange I will give you fifteen reels of yarn." The Englishman said, "Give me your wine and I will give you twenty reels of yarn for we English spin more cheaply than the Belgians." However, a customs officer who happened to be there said, "My good man, trade with the Belgian if you like, but my job is to prevent you from trading with the Englishman." What!" said the farmer, "you want me to be content with fifteen reels of yarn from Brussels when I can have twenty from Manchester?" "Certainly, do you not see that France would be the loser if you received twenty reels instead of fifteen?" "I find it difficult to understand this," said the wine producer. "And I to explain it, went on the customs officer, "but this is a fact, for all the deputies, ministers, and journalists agree on this point, that the more a people receive in exchange for a given quantity of their products, the poorer they become." He had to conclude the bargain with the Belgian. The farmer's daughter had only three-quarters of her trousseau, and these honest people still ask themselves how it can be that you are ruined by receiving four instead of three and why you are richer with three dozen napkins than with four dozen.
Endnotes80 The "Gironde" is a département in the Aquitaine region in southwest France, immediately to the north of the département of Les Landes, on the Atlantic coast. The Gironde contains the port city of Bordeaux and is famous for its wines. See the glossary entry on "Gironde".
T.35 (1845.10.15) "Economic Sophisms (cont.): IX. An immense Discovery!!!" (JDE, Oct., 1845)↩
SourceT.35 (1845.10.15) "Economic Sophisms (cont.): IX. An immense Discovery!!!" (Immense découverte!!!), Journal des Économistes, Oct. 1845, T. 12, no. 47, p. 208-11; also ES1.9. [OC4, pp. 63-67.] [CW3 - ES1.9]
TextIX. An immense Discovery!!! [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Immense découverte!!!" (An immense Discovery!!!) [JDE, October 1845, T. 12, p. 208-11].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 63-67.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
At a time when all minds are occupied with searching for savings on various means of transport;
At a time when, in order to achieve these savings, we are leveling roads, canalizing rivers, improving steamships, and linking all our frontiers to Paris by an iron network, by traction systems that are atmospheric, hydraulic, pneumatic, electrical, etc.;81
Finally, at a time when I simply have to believe that everyone is enthusiastically and sincerely seeking the solution to the following problem:
"To ensure that the price of things at their place of consumption is as close as possible to their price at their place of production."
I would feel guilty toward my country, my century, and myself if I kept secret any longer the marvelous discovery I have just made.
For while the inventor's illusions may well be legendary, I am as certain as I can be that I have found an infallible means that ensures that products from around the world reach France and vice versa with a considerable reduction in their prices.
Infallible! This is just one of the advantages of my astonishing invention.
It requires neither a drawing, an estimate, nor preliminary studies, nor any engineers, machine operators, entrepreneurs, capital, shareholders, nor help from the government!
It offers no risk of shipwreck, explosion, shocks, fire, or derailment!
It can be put into practice in less than a day!
Lastly, and this will doubtless recommend it to the public, it will not cost the budget one centime, far from it. It will not increase the numbers of civil servants and the requirements of bureaucracy, far from it. It will not cost anyone his freedom, far from it.
It is not by chance that I have come about my discovery, it is through observation. I have to tell you now what led me to it.
This in fact was the question I had to solve:
"Why does something made in Brussels, for example, cost more when it reaches Paris?"
Well, it did not take me long to see that this is a result of the fact that there are several types of obstacles between Paris and Brussels. First of all, there is distance; we cannot cover this without a certain difficulty and loss of time, and we either have to subject ourselves to this or pay someone else to. Next come the rivers, the marshes, the lie of the land, and the mud; these are so many difficulties to be overcome. We do this by constructing roadways, building bridges, cutting roads, and reducing their resistance through the use of cobbles, iron bands, etc. But all this has a cost, and the object being carried must bear its share of these costs. There are also thieves on the roads, which necessitates a gendarmerie, a police force, etc.
Well, among these obstacles, there is one that we have set up ourselves, and at great expense, between Brussels and Paris. This is the men lying in ambush all along the frontier, armed to the teeth and responsible for placing difficulties in the way of the transport of goods from one country to the other. We call them customs officers. They act in exactly the same way as mud or ruts in the road. They delay, hinder, and contribute to the difference we have noted between the cost of production and the consumer price, a difference which it is our problem to decrease as far as possible.
And now we have solved the problem. Reduce tariffs .
You will have built the Northern railway line without it having cost you a penny. Furthermore, you will save heavy expenditure and you will begin to put capital in your pocket right from the first day.
Really, I ask myself how it was possible for enough strange ideas to have got into our heads that we were persuaded to pay many millions with a view to destroying the natural obstacles lying between France and foreign countries and at the same time to pay many other millions to substitute artificial obstacles for them which have exactly the same effect, so that the obstacles created counteract those destroyed, things go on as before and the result of the operation is double expenditure.
A Belgian product worth 20 fr. in Brussels fetches 30 when it reaches Paris, because of transport costs. A similar product of Parisian manufacture costs 40 fr. So what do we do about it?
First we put a duty of at least 10 fr. on the Belgian product in order to raise its cost price in Paris to 40 fr., and we pay a host of supervisors to ensure that it does not escape this duty, with the result that during the journey 10 fr. is charged for transport and 10 fr. for tax.
Having done this, we reason thus: transport from Brussels to Paris, which costs 10 fr., is very expensive. Let us spend two or three hundred million on railways, and we will reduce it by half.82 Obviously, all that we will have obtained is that the Belgian product will be sold in Paris for 35 fr., that is to say:
20 fr. its price in Brussels
10 duty
5 reduced transport by rail
35 fr. total, or the cost price in Paris
Well, would we not have achieved the same result by lowering the tarif to 5 fr.? We would then have:
20 fr. its price in Brussels
5 fr. reduced duty
10 fr. transport by ordinary road
35 fr. total, or the cost price in Paris
And this procedure would have saved us the 200 million that the railway costs, plus the cost of customs surveillance, since these are bound to decrease as the incentive to smuggle decreases.
But, people will say, the duty is necessary to protect Parisian industry. So be it, but then do not ruin the effect with your railway.
For if you persist in wanting the Belgian product to cost 40 fr. like the Parisian one, you will have to raise the duty to 15 fr. to have:
20 fr. its price in Brussels
15 protectionist duty
5 transport by rail
40 fr. total with prices equalized.
Then my question is, from this point of view, what is the use of the railway?
Frankly, is it not somewhat humiliating for the nineteenth century to prepare a spectacle of childishness such as this for future ages with such imperturbable seriousness? To be fooled by others is already not very pleasant, but to use the huge system of representation in order to fool yourself is to fool yourself twice over and in a matter of arithmetic, this is something to take down the pride of the century of enlightenment a peg or two.
Endnotes81 In 1842 the government decided to encourage the building of a national network. 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. See the glossary entry on "The French Railways."
82 Michel Chevalier estimates that the French government had spent over fr. 420 million on railway construction between 1841 and 1848. See Michel Chevalier, "Statistique des travaux publics sous le Gouvernement de Juillet," Annuaire de l'économie politiques pour 1849, pp. 209-37.
T.36 (1845.10.15) "Economic Sophisms (cont.): X. Reciprocity" (JDE, Oct., 1845)↩
SourceT.36 (1845.10.15) "Economic Sophisms (cont.): X. Reciprocity" (Réciprocité), Journal des Économistes, Oct. 1845, T. 12, no. 47, p. 211; also ES1.10. [OC4, pp. 67-70.] [CW3 - ES1.10]
TextX. Reciprocity [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Réciprocité" (Reciprocity) [JDE, October 1845, T. 12, p. 211].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 67-70.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
We have just seen that everything that makes transport expensive during a journey acts to encourage protection or, if you prefer, that protection acts to encourage everything that makes transport expensive.
It is therefore true to say that a tariff is a marsh, a rut or gap in the road, or a steep slope, in a word, an obstacle whose effect results in increasing the difference between the prices of consumption and production. Similarly, it is incontrovertible that marshes or bogs are genuine protective tariffs .
There are people (a few, it is true, but there are some) who are beginning to understand that obstacles are no less obstacles because they are artificial and that our well-being has more to gain from freedom than from protection, precisely for the same reason that makes a canal more favorable than a "sandy, steep and difficult track."83
But, they say, this freedom has to be mutual. If we reduced our barriers with Spain without Spain reducing hers with us, we would obviously be stupid. Let us therefore sign commercial treaties on the basis of an equitable reciprocity, let us make concessions in return for concessions, and let us make the sacrifice of buying in order to obtain the benefit of selling.
It pains me to tell people who reason thus that, whether they realize it or not, they are thinking along protectionist lines, the only difference being that they are slightly more inconsistent than pure protectionists, just as pure protectionists are more inconsistent than absolute prohibitionists.84
I will demonstrate this through the following fable:
Stulta and Puera85
Once upon a time there were, somewhere or other, two towns, Stulta and Puera. At great expense, they built a road between the two. When it was completed, Stulta said to itself, "Now Puera is flooding us with its products; we had better look into it." As a result, it created and paid a Corps of Obstructors,86 so called because their mission was to place obstacles in the path of convoys that arrived from Puera. Soon afterwards, Puera also had a Corps of Obstructors.
After several centuries had passed, and enlightenment had made considerable progress, such was the growth of Puera's awareness that it had grasped that these reciprocal obstacles must necessarily be mutually detrimental. It sent a diplomat to Stulta, who, though his words were couched in official terms, effectively said: "We built a road and now we are obstructing it. This is absurd. It would have been better for us to have left things in their original state. First of all, we would not have had to pay for the road, and secondly for the obstacles. In the name of Puera, I have come to suggest to you, not that we suddenly abandon the setting up of mutual obstacles between us, that would be to act in accordance with a principle and we despise principles as much as you do, but to reduce these obstacles a little, taking care to balance our respective sacrifices in this respect equitably." This was what the diplomat said. Stulta asked for time to consider this. It consulted in turn its manufacturers and its farmers. Finally, after a few years, it declared that the negotiations had broken down.
At this news, the inhabitants of Puera held a council. An old man (who had always been suspected of being secretly bribed by Stulta) stood up and said: "The obstacles created by Stulta damage our sales, and this is terrible. The ones we have created ourselves damage our purchases, and this is also terrible. We cannot do anything about the first situation but the second is in our power. Let us at least free ourselves of one since we cannot get rid of both. Let us abolish our Corps of Obstructors without demanding that Stulta does the same. One day, it will doubtless learn to do its sums better."
A second councilor, a practical man of action who had no theoretical principles and was imbued with the experience of his ancestors, replied: "Do not listen to this dreamer, this theoretician, this innovator, this utopian,87 this economist, this Stulta-lover.88 We would all be ruined if the obstacles on the road were not equal, in equitable balance between Stulta and Puera. There would be greater difficulty in going than in coming and in exporting than in importing. Compared with Stulta, we would be in the inferior position that Le Havre, Nantes, Bordeaux, Lisbon, London, Hamburg, and New Orleans are in compared with the towns situated at the sources of the Seine, the Loire, the Garonne, the Tagus, the Thames, the Elbe, and the Mississippi, for it is harder to go up rivers than to go down them." (A voice observed that towns at the mouths of rivers were more prosperous than those at their sources.) "That is not possible." (The same voice: But it is true.) "Well then, they have prospered contrary to the rules." Such conclusive reasoning shook the assembly. The speaker succeeded in convincing it by referring to national independence, national honor, national dignity, national production, the flood of products, tributes, and merciless competition; in short, he carried the day for maintaining the obstacles and, if you are interested in this, I can take you to certain countries in which you will see with your own eyes the Corps of Road Builders89 and the Corps of Obstructors working in total harmony [??? - travaillant de la meilleure intelligence du monde - working with the best intentions in the world, best information available to them], in accordance with a decree issued by the same legislative assembly and at the expense of the same taxpayers, the former to clear the road and the latter to obstruct it.
Endnotes83 Bastiat quotes the opening lines of a fable by La Fontaine "Le Coche et la mouche" (The Coach and the Fly): "Over a hilly, sandy, and difficult road, exposed on all sides to the sun, six strong horses were pulling a coach." [FEE trans.] From Fables de la Fontaine. Illustrées par J.J. Granville. Nouvelle édition. (Paris: H. Fournier ainé, 1838), Tome I, pp. 269-70. See the glossary entry on "Fontaine."
84 Bastiat distinguishes between a policy of "protectionism", which imposes tariffs or duties on the importation of foreign goods in order to "protect" domestic producers from foreign competition, and a policy of "prohibition", which prevents of prohibits the importation of any foreign goods in ordinary to prevent any competition from challenging the position of domestic producers. This should be distinguished from the modern policy of "prohibition", such as of alcohol or certain drugs, which makes it illegal for anyone, domestic or foreign, to produce, sell, or consume these products anywhere under threat of punishment by the State. See the glossary entry on "Bastiat's Policy on Tariffs."
85 The names of the towns "Stulta" and "Puera" are plays on the Latin words "stultus," for foolish, and "puer/puera," for young boy or girl; thus one might translate them as "Stupidville" and "Childishtown."
86 Bastiat uses the expression "corps d'Enrayeurs" (body or corps of Obstructors) which we have translated as "Corps" to give it the flavor of an official government or military body, as in the "Army Corps of Engineers" in the United Sates, or the "Corps des ingénieurs des Mines" (Corps of Mining Engineers) or the "Corps des ingénieurs des Ponts, des Eaux et des Forêts" (Corps of Engineers for Bridges, Waterways, and Forests) in France.
87 See the glossary entry on "Utopias."
88 Bastiat creates a neologism - "stultomane", meaning Stultophile (used in the FEE translation, p. 69) or Stulta-lover.
89 Bastiat uses the term "cantonnier" which refers to the workers who are employed by the local districts known as "Cantons" whose responsibility it was to maintain the roads which passed through their districts. The system of "cantonniers" was formalized by a decree issued by Napoleon on 16 December 1811 and after 1816 they became permanent employees of the state. As a useful contrast to Bastiat's "Corps of Obstructors" we have translated "cantonniers" as "Corps of Road Builders."
T.37 (1845.10.15) "Economic Sophisms (cont.): X. Nominal Prices" (JDE, Oct., 1845)↩
SourceT.37 (1845.10.15) "Economic Sophisms (cont.): X. Nominal Prices" (Prix absolus), Journal des Économistes, Oct. 1845, T. 12,no. 47, p. 213-15. This chapter was originally numbered XII in the JDE but became chapter XI in the book version of Economic Sophisms and incorporated chapter XI. "Stulta et Puera", from the JDE version p. 211-12; also ES1.11. [ OC4, pp. 70-74.] [CW3 - ES1.11]
TextXI. Nominal Prices [October 1845] (final draft)↩
Publishing history- Original title, place and date of publication: "Prix absolus" (Nominal Prices) [JDE, October 1845, T. 12, p. 213-15 (this chapter was originally numbered XII in the JDE but became chapter 11 in the book version of Economic Sophisms and incorporated chapter XI. "Stulta et Puera", from the JDE version p. 211-12)].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 70-74.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
Do you wish to assess the merits of freedom and protection? Do you wish to understand the effects of an economic phenomenon? Then look for its effects on the abundance or scarcity of things and not on whether prices rise or fall. Be careful of only thinking about nominal prices;90 this will lead you into an inextricable labyrinth.
After establishing that protection makes things more expensive, M. Mathieu de Dombasle91 adds:
"The increase in prices raises living expences and consequently the price of labor, (but) each person is compensated for the increase in their expenses by the increase in prices for the things they produce. Thus, if everybody pays more as a consumer, everybody also receives more as a producer."92
It is clear that this argument can be turned on its head, and we can say: "If everybody receives more as a producer, everybody pays more as a consumer."
Well, what does that prove? Nothing other than that protection moves wealth about uselessly and unjustly. This is just what plunder does.
Moreover, to accept that this vast apparatus results in simple mutual compensations, we have to agree with M. de Dombasle's word "consequently" and be sure that the price of labor rises in line with the price of protected products. This is a question of fact that I pass back to M. Moreau de Jonnès;93 let him please look into whether pay rates have moved upward in line with Anzin mining shares. For my part, I do not think so, because I believe that the price of labor, like all the others, is governed by the relationship between supply and demand. Now, I can quite see that restriction decreases the supply of coal and consequently increases its price, but I see rather less clearly that it increases the demand for labor to the extent of increasing rates of pay. I see this all the less clearly in that the quantity of labor demanded depends on the capital available. Protection may well cause capital to move and shift from one industry to another, but it cannot increase it by an obole.94
Besides, this highly interesting question will be examined elsewhere. I will return to nominal prices and say that there are no absurdities that cannot be made plausible by reasoning like M. de Dombasle's.
Imagine that an isolated nation that had a given quantity of cash took pleasure in burning half of what it produced each year, and I will take it on myself to prove, using M. de Dombasle's theory, that it will not be a whit the less rich.
In effect, following the fire, everything will double in price and inventories taken before and after the disaster will show exactly the same nominal value. But in this case, who will have lost? If Jean buys cloth at a higher price, he will also sell his wheat at a higher price, and if Pierre loses on his purchase of wheat, he will make good on the sale of his cloth. "Each person is compensated (I say) for the increase in the amount of their expenses by the increase in the price for the things they produce; and if everybody pays more as a consumer, everybody receives more as a producer. "
All this is a tissue of confusion rather than science. The truth expressed in its simplest form is this: whether men destroy cloth and wheat by fire or through use, the effect will be the same with respect to the price but not with respect to wealth, for it is precisely in the use of things that wealth or well-being consists.
In the same way, restriction, while decreasing the abundance of things, may increase their price so that, if you like, in purely monetary terms, each person may be just as rich. But in an inventory, does a record of three hectoliters of wheat at 20 francs or four hectoliters at 15 francs come to the same thing from the point of view of satisfying need because the result is still 60 francs?
And it is to this point of view of consumption that I will incessantly bring protectionists back, since this is the purpose of all our efforts and the solution to all problems.95 I will always say to them: "Is it not true that by hampering trade, by limiting the division of labor, and by forcing labor to grapple with the difficulties of location and temperature, restriction ultimately decreases the quantity produced by a given amount of effort?" And what does it matter that the lesser quantity produced under a protectionist regime has the same nominal value as a larger quantity produced under the regime of freedom? Man does not live by nominal values, but by real products, and the more he has of these products, at whatever price, the richer he is.
When writing the foregoing, I did not expect ever to meet an anti-economist who was sufficiently good as a logician to contend explicitly that the wealth of peoples depends on the monetary value of things irrespective of their abundance. But just look what I have found in the book by M. de Saint-Chamans (page 210): 96
"If 15 million francs worth of goods sold abroad is taken from normal production, estimated to be 50 million, the remaining 35 million worth can no longer meet normal demand and will increase in price and will reach a value of 50 million. Then the revenue of the country will be 15 million more. . . . There will therefore be an increase in wealth of 15 million for the country, exactly the amount of the cash which is imported."
Is that not ridiculous! If during the year a nation makes 50 million francs' worth of harvested products and goods, it just has to sell a quarter abroad to be a quarter richer! Therefore, if it sold half, it would increase its fortune by half, and if it trades for cash its last wisp of wool and last grain of wheat, it would raise its wealth to 100 million! Producing infinitely high prices through absolute scarcity is very strange way of becoming wealthier!
Anyway, do you want to assess the merits of the two doctrines? Subject them to the exaggeration test.
According to the doctrine of M. de Saint-Chamans, the French would be just as rich, that is to say, as well provided with everything with a thousandth part of their annual output, since it would be worth a thousand times more.
According to ours, the French would be infinitely rich if their annual output was infinitely abundant and consequently was of no value at all.97
Endnotes90 Bastiat uses several terms to describe what he is getting at in this article: "prix absolus" (nominal prices), "valeurs nominales" (nominal value), "en hausser le prix… numérairement parlant" (raising prices in purely monetary terms), and so on. He wants to make the point that there is a difference between real economic wealth and the accounting device (the money price) used to measure it.
91 Joseph Alexandre Mathieu de Dombasle (1777-1843) was an agronomist who introduced the practice of triennial crop rotation (cereals, forage, vegetables) in France. He also wrote on the sugar-beet industry, De l'impôt sur le sucre indigène: Nouvelles considerations (1837). See the glossary entry on "Dombasle."
92 Christophe Joseph Alexandre Mathieu de Dombasle, Oeuvres diverses: économie politique, instruction publique, haras et remontes (Paris: Bouchard-Huzard, 1843). "Études sur le commerce international dans les rapports avec la richesse des peuples," Chap. IV. "Le régime de protection blesse-t-il les intérêts des consommateurs?". Quote on pp. 49-50. See the glossary entry on "Dombasle."
93 Alexandre Moreau de Jonnès (1778–1870) was an economist and a statistician who was director of the statistical bureau in the ministry of trade (1834–42). See the glossary entry on "Moreau de Jonnès."
94 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). See the glossary entry on "French Currency."
95 (Paillotet's note) This thought often recurs in the author's writings. In his eyes it was of capital importance, and four days before his death it dictated the following recommendation to him "Tell de F. [Roger de Fontenay] to treat economic questions always from the point of view of the consumer, since the consumer's interest is at one with that of the human race." [Roger de Fontenay (1809-91) was a friend and intellectual ally of Bastiat's in their debates in the Political Economy Society on the nature of rent. Fontenay worked with Prosper Paillottet in editing the Ouevres complètes of Bastiat for which he wrote the Preface. See the glossary entry on "Fontenay."]
96 Bastiat quotes from Saint-Chamans's Du système d'impôt fondé sur les principes de l'économie politique, pp. 210-11. See the glossary entry on "Saint-Chamans."
97 (Paillottet's note) See chapter V of the second series of the Sophisms [see this volume, "High Prices, Low Prices," pp. 000—00] and chapter IV of the Economic Harmonies (OC, chap. 4, p. 93, "Échange").
T.38 (1845.11) Economic Sophisms. First Series (Guillaumin, 1846)↩
SourceT.38 (1845.11) (ES1) Sophismes économiques. Première série (Paris: Guillaumin, 1846) (Economic Sophisms. First Series): Comprising articles published in the Journal des économistes, April, July, Oct. 1845 and other material. Conclusion is dated "Mugron, 2 Nov., 1845". Published in Paris, by Guillaumin, in Jan. 1846. The following chapters were not published previously (see below for details). [OC4, pp. 1-126.] [CW3 - ES1]
- 1845.12 ES1 [Author's Introduction] [OC4.1.0, pp. 1-5]
- 1845.12 ES1.12 "La protection élève-t-elle le taux des salaires?" (Does Protection increase the Rate of Pay?) [n.d.] [OC4, pp. 74-79]
- 1845.12 ES1.13 "Théorie, Pratique" (Theory and Practice) [n.d.] [OC4, pp. 79-86]
- 1845.12 ES1.14 "Conflit de principes" (A Conflict of Principles) [n.d.] [OC4, pp. 86-90]
- 1845.12 ES1.15 "Encore la réciprocité" (More Reciprocity) [n.d.] [OC4, pp. 90-92]
- 1845.12 ES1.16 "Les fleuves obstrués plaidant pour les prohibitionistes" (Blocked Rivers pleading in favor of the Prohibitionists) [n.d.] [OC4, pp. 92-93]
- 1845.12 ES1.17 "Un chemin de fer négatif" (A Negative Railway] [n.d.] [OC4, pp. 93-94]
- 1845.12 ES1.18 "Il n'y a pas de principes absolus" (There are no Absolute Principles) [n.d.] [OC4, pp. 94-97]
- 1845.12 ES1.19 "Indépendance nationale" (National Independence) [n.d.] [OC4, pp. 97-99]
- 1845.12 ES1.20 "Travail humain, travail national" (Human Labor and Domestic Labor) [n.d.] [OC4, pp. 100-05]
- 1845.12 ES1 21 "Matières premières" (Raw Materials) [n.d.] [OC4, pp. 105-15]
- 1845.12 ES1 22 "Métaphores" (Metaphors) [n.d.] [OC4, pp. 115-19]
- 1845.11 ES1 "Conclusion" (Conclusion) [signed "Mugron, 2 Nov., 1845"] [OC4, pp. 119-26]
[Author's Introduction to Economic Sophisms] (final draft)↩
Publishing history- Original title, place and date of publication: [No title given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 1-5.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
In political economy there is a lot to learn and very little to do. (Bentham)5 6
In this small volume, I have sought to refute a few of the arguments against the deregulation of trade.
This is not a conflict that I am entering into against protectionists. It is a principle that I am attempting to instill into the minds of sincere men who hesitate because they doubt.
I am not one of those who say: "Protection is based on interests." I believe that it is based on error or, if you prefer, on half-truths. Too many people fear freedom for this apprehension not to be sincere.
This is setting my sights high, but I must admit that I would like this small work to become in some way a manual for men called upon to decide between the two principles. When you do not possess a long-standing familiarity with the doctrine of freedom, protectionist sophisms will constantly come to one's mind in one form or another. To release it from them, a long effort of analysis is required on each occasion, and not everyone has the time to carry out this task, least of all the legislators. This is why I have tried to do it all at once.
But, people will say, are the benefits of freedom so hidden that they are apparent only to professional economists?
Yes, we agree that our opponents in the debate have a clear advantage over us. They can set out a half-truth in a few words, and to show that it is a half-truth we need long and arid dissertations.
This is in the nature of things. Protection brings together in one single point all the good it does and distributes among the wider mass of people the harm it inflicts. One is visible to the naked eye, the other only to the mind's eye.7 — It is exactly the opposite for freedom.
This is so for almost all economic matters.
If you say: Here is a machine that has thrown thirty workers out into the street ;
Or else: Here is a spendthrift who will stimulate all forms of industry;
Or yet again: The conquest of Algiers8 has doubled Marseille's trade;
Or lastly: The budget assures the livelihood of one hundred thousand families.
You will be understood by everyone, and your statements are clear, simple, and true in themselves. You may deduce the following principles from them:
Machines are harmful;
Luxury, conquest, and heavy taxes are a blessing;
And your theory will have all the more success in that you will be able to support it with irrefutable facts.
We, on the other hand, cannot stick to one cause and its immediate effect. We know that this effect itself becomes a cause in its turn. To judge a measure, it is therefore necessary for us to follow it through a sequence of results up to its final effect. And, since we must give utterance to the key word, we are reduced to reasoning.
But right away here we are, assailed by these cries, "You are theorists, metaphysicians, ideologues,9 utopians,10 and in thrall to rigid principles," and all the prejudices of the public are turned against us.
What are we to do, therefore? Call for patience and good faith in the reader and, if we are capable of this, cast into our deductions such vivid clarity that the truth and falsehood stand out starkly in order for victory to be won either by restriction or freedom, once and for all.
I must make an essential observation at this point.
A few extracts from this small volume have appeared in the Journal des économistes.
In a criticism that was incidentally very benevolent, published by the Vicomte de Romanet11 (see the issues of Le Moniteur industriel dated 15 and 18 May 1845)12, he assumed that I was asking for customs dues to be abolished. M. de Romanet is mistaken. What I am asking for is the abolition of the protectionist regime. We do not refuse taxes to the government; what we would like, if possible, is to dissuade those being governed from taxing each other. Napoleon said: "Customs dues ought not to be a fiscal instrument, but a means of protecting industry."13 We plead the contrary and say: "Customs dues must not be an instrument of mutual plunder in the hands of workers, but it can be a fiscal instrument that is as good as any other." We are so far, or to involve only me in the conflict, I am so far from demanding the abolition of customs dues that I see in them a lifeline for our finances.14 I believe that they are likely to produce huge revenues for the Treasury, and if my idea is to be expressed in its entirety, at the snail's pace that sound economic doctrine takes to circulate, I am counting more on the needs of the Treasury than on the force of enlightened public opinion for trade reform to be accomplished.
But finally what are your conclusions, I am asked.
I have no need of conclusions. I am opposing sophisms, that is all.
But, people continue, it is not enough to destroy, you have to build. My view is that in the destruction of an error the truth is created.
After that, I have no hesitation in expressing my hope. I would like public opinion to be persuaded to ratify a customs law that lays down terms of approximately this order:
Objects of prime necessity shall pay an ad valorem duty of 5%
Objects of normal usefulness 10%
Luxury objects 15 or 20%
Furthermore, these distinctions are taken from an order of ideas that is totally foreign to political economy as such, and I am far from thinking that they are as useful and just as they are commonly supposed to be. However, that is another story.
Endnotes5 Jeremy Bentham (1748-1832) was the founder of the school of thought known as utilitarianism and influenced a group of political and economic reformers in the early 19th century known as the Philosophic Radicals. It is interesting that Bastiat chose two passages from Bentham's Théorie des peines et des récompenses (1811) as the opening for both the First and Second Series of the Economic Sophisms. See the glossary entry on "Bentham."
6 Some of Jeremy Bentham's writings appeared first in French as a result of the work of his colleague Étienne Dumont, who translated, edited, and published several of Bentham's works in Switzerland. The quotation above comes from Dumont's Théorie des peines et des recompenses, (1811), p. 270. It is also possible that Bentham was the inspiration behind Bastiat's choice of words for the title of this series of articles known as "Economic Sophisms." Bentham used Dumont to edit some of his unpublished manuscripts and to prepare them for publication in French. One of these texts was Traité des sophismes politiques, which appeared in 1816. An English version of the book appeared with the editorial assistance of the Benthamite Peregrine Bingham the Younger, the Handbook of Political Fallacies, which appeared in 1824. See the introduction to Bentham, Handbook of Political Fallacies; and Bentham, The Works of Jeremy Bentham, vol. 2, "The Book of Fallacies: From Unfinished Papers of Jeremy Bentham" (</title/1921/114047>). Bentham also wrote an attack on the idea of natural rights as expressed in the French "Declaration of the Rights of Man and of the Citizen" (1789) under the title of "Anarchical Fallacies" (written 1796 but not published until 1843) (/title/1921/114226). See also Waldron, Nonsense upon Stilts. Bentham's famous dismissal of natural rights as "nonsense upon stilts" can be found in this volume: "Natural rights is simple nonsense: natural and imprescriptible rights, rhetorical nonsense,—nonsense upon stilts" (/title/1921/114230/2345508).
7 (Paillottet's note) This glimpse gave rise later to the pamphlet entitled What Is Seen and What Is Not Seen, which is included in this volume [see this volume, pp. 000—00].
8 Algeria was invaded and conquered by France in 1830 and the occupied parts were annexed to France in 1834. According to the new constitution of the Second Republic (1848) it was 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 by the government. These policies were vigorously opposed by Bastiat. See the glossary entry on "Algeria."
9 The theory of "Idéologie" had a specific meaning in the early 19th century. It referred to the ideas of Étienne Condillac (1715-1780) who believed that all ideas were the result of sensations and a wrote a pioneering treatise on economics, Commerce and Government (1776). More especially the word refers to the work of Destutt de Tracy who coined the term "idéologie". He was part of a movement in the 1790s called the "Idéologues" and their belief in constitutional government and free markets incurred the wrath of Napoleon. Jefferson translated one of Tracy's volumes on Ideology into English, with the title Treatise of Political Economy (1817). See the glossary entries on "Condillac" and "Destutt de Tracy".
10 See the glossary entry on "Utopias."
11 Auguste, Vicomte de Romanet (n.d.), was a staunch protectionist who served on the Conseil général de l'agriculture, du commerce, et des manufactures. See the glossary entry on "Romanet."
12 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".
13 There are remarks about tariffs and protection for French industry scattered throughout the Mémoires of Napoleon. His most direct comments 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."
14 Free traders like Bastiat and Cobden distinguished between two kinds of tariffs - "fiscal tariffs," which were solely designed to raise revenue for the government (it should be noted that income taxes did not exist at this time), and "protectionist tariffs" which were designed to provide government favours to particular vested interest groups. In his essay "The Utopian" (written 17 January 1847 and published in ESII as no. XI) Bastiat says he would like to reduce tariffs to 5% across the board (for both imports and exports) in order to achieve the former goal. See the glossary entries on "Cobden," "Utopias," and "Bastiat's Policy on Tariffs."
XII. Does Protection increase the Rate of Pay? [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "La protection élève-t-elle le taux des salaires?" (Does Protection increase the Rate of Pay?) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 74-79.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
An atheist was railing against religion, against priests and against God. "If you continue", said one of the audience, himself not very orthodox, "you are going to re-convert me."
Thus, when we hear our beardless scribblers, romantic writers, reformers, rose-scented and musky writers of serials, gorged on ice cream and champagne, clutching in their portfolios shares of Ganneron, Nord and Mackenzie98 or having their tirades against the egoism and individualism of the century heaped with gold; when we hear them, as I say, railing against the harshness of our institutions, wailing about the wage-earners and the proletariat;99 when we see them raise to the heavens eyes that mourn the sight of the destitution of the working classes, destitution that they never visit save to conjure up lucrative pictures of it, we are tempted to say to them: "If you continue in this way, you will make me indifferent to the fate of the workers."
Oh, such affectation! This is the sickening disease of our time! Workers, if a serious man, a sincere philanthropist, reveals a picture of your distress or writes a book that makes an impression, a rabble of reformers immediately seizes this prey in its claws. It is turned one way and another, exploited, exaggerated and squeezed to the point of disgust and ridicule. All that you are thrown by way of a remedy are the high-sounding words, organization and association. You are flattered and fawned upon, and soon workers will be reduced by this to the situation of slaves: responsible men will be ashamed to take up their cause publicly, for how will they be able to introduce a few sensible ideas in the midst of such bland protestations?
But I refuse to adopt this cowardly indifference that is not justified by the affectation that triggers it!
Workers, your situation is strange! You are being robbed, as I will shortly be proving … No, I withdraw that word. Let us banish from our discourse all violent and perhaps misleading expressions seeing that plunder, clad in the sophisms that conceal it, is carried out, we are expected to believe, against the will of the plunderer and with the consent of those being plundered. But when all is said and done, you are being robbed of the just remuneration for your work and nobody is concerned with achieving justice for you. Oh! If all that was needed to console you were noisy calls for philanthropy, impotent charity and degrading alms and if high-sounding words like organization, communism and phalanstery100 were enough, you would have your fill. But nobody thinks of ensuring that justice, simple justice is rendered to you. And yet, would it not be just for you, when you have been paid your meager salary following a long and hard day's work, to be able to exchange it for as many forms of satisfaction as you can obtain voluntarily from any man anywhere in the world?
One day, perhaps, I too will speak to you about association and organization, and we will then see what you can expect from these illusions that have led you down the garden path.
In the meantime, let us see whether people are doing you an injustice when they pass laws which determine from whom you are permitted to buy the things you need, such as bread, meat, linen and cloth, and, as it were, at what artificial price you will have to pay for them.
Is it true that protection, which, it is admitted, makes you to pay a high price for everything and thus causes you harm, raises your rate of pay proportionally?
On what do rates of pay depend?
One of your people has said this forcefully: "When two workers pursue an employer, earnings decrease; when two employers pursue one worker, they rise."101
Allow me, in short, to use this statement, which is more scientific but may be less clear: "Rates of pay depend on the ratio of the supply of and the demand for labor."
Well, on what does the supply of labor depend?
On the number in the marketplace, and on this initial element, protection has no effect.
On what does the demand for labor depend?
On the national capital available. But has the law that says: "We will no longer receive such and such a product from abroad, we will manufacture it internally," increased this capital? Not in the slightest. The law has withdrawn the product from one area to place it in another but it has not increased the product by one obole. Therefore the law does not increase the demand for labor.
A factory is shown off with pride. Has it been established and maintained with capital from the moon? No, capital has had to be withdrawn either from agriculture, shipping or the wine producing industry. And this is why while there are more workers in our mineshafts and in the suburbs of our manufacturing towns since protectionist duties became law, there are fewer sailors in our ports and fewer workers and wine producers in our fields and hills.
I could continue on this theme for a long time. I prefer to try to make you understand my thought with this example.
A farmer had twenty arpents of land,102 which he developed, with a capital of 10,000 francs. He divided his domain into four parts and established the following rotation: 1st corn, 2nd wheat, 3rd clover, 4th rye. He and his family needed only a small part of the grain, meat and milk that the farm produced, and he sold the excess to purchase oil, flax, wine, etc. All of his capital was spent each year on wages and other payments owed to neighboring workers. This capital was returned through sales and even increased from one year to the next and our farmer, knowing full well that capital produces nothing unless it is put to use, made the working class benefit from these annual surpluses which he used for fencing, land clearance and improvements to his farm equipment and buildings. He even invested some savings with the banker in the neighboring town who did not leave the money idle in his coffers but lent it to ship-owners and entrepreneurs carrying out useful work, so that it continued to generate wages.
However, the farmer died, and his son, as soon as he had control of the inheritance, said: "It must be confessed that my father was a fool all his life. He purchased oil and thus paid tribute to Provence while our land could at a stretch grow olive trees. He bought wine, flax and oranges and paid tribute to Brittany, the Médoc and the islands of Hyères, while vines, jute and orange trees could, more or less, provide a small crop on our land.103 He paid tribute to millers and weavers while our domestic servants could well weave our linen and grind our wheat between two stones. He ruined himself, and in addition he had foreigners earning the wages that were so easy for him to spread around him."
Using this reasoning, our scatterbrain changed the rotation of the domain. He divided it into twenty small strips of land. On one he grew olive trees, on another mulberry trees, on a third flax, on a fourth vines, on a fifth wheat, etc. etc. He thus managed to provide his family with everything and become independent. He took nothing from general circulation and, it is true, paid nothing into it either. Was he any richer? No, for the land was not suitable for growing vines, the climate was not conducive to the prospering of olive trees, and in the end the family was less well provided with these things than at the time when his father obtained them through trade.
As for the workers, there was no more work for them than in the past. There were indeed five times as many strips to cultivate, but they were five times smaller. Oil was produced but less wheat, flax was no longer purchased but rye was no longer sold. Besides, the farmer could not pay more than his capital in salaries and his capital, far from increasing through the new distribution of land, decreased constantly. The majority of it was tied up in buildings and countless items of equipment that were essential for someone who wanted to do everything. As a result, the supply of labor remained the same but the means to pay these workers declined and there was of necessity a decrease in wages.
That is a picture of what happens in a nation that isolates itself through a prohibitionist regime. It increases the number of its industries, I know, but it decreases their size; it provides itself, so to say, with a rotation of industries104 that is more complicated but not more fruitful, far from it, since the same capital and workforce have to attack the job in the face of greater natural difficulties. Fixed capital absorbs a greater portion of working capital, that is to say a greater part of the funds intended for wages. What remains of the fund for wages may well be diversified but that does not increase the total amount. It is like the water in a lake that people thought they had made more abundant because, having been put into many reservoirs, it touches the ground on more spots and offers a greater surface to the sun. They do not understand that it is precisely for this reason that it is absorbed, evaporated and lost more quickly.
With a given amount of capital and labor, a quantity of output is created that decreases in proportion to the number of obstacles it encounters. There is no doubt that, where barriers to international trade in each country force this capital and labor to overcome greater difficulties of climate and temperature, the general result is that fewer products are created or, which comes to the same thing, fewer needs of people are satisfied. Well, workers, if there is a general decrease in the number of needs satisfied, how can your share increase? I ask you, would those who are rich, those who make the law, have arranged things so that not only would they suffer their fair share of the total reduction in the needs that can be satisfied, but that even their already reduced portion would decrease still further, they say, by everything that is to be added to yours? Is that possible? Is it credible? Oh! This generosity is suspect and you would be wise to reject it.105
Endnotes98 The FEE translator provides the following very informative note (p. 74): "Bastiat here refers by name to certain securities that enjoyed wide public confidence at the time: those of the Comptoir Ganneron, a bank in which, at the height of the speculation, almost four hundred million francs were invested; those of the fur-trading company founded by Sir Alexander MacKenzie and later amalgamated with the original Hudson's Bay Company; and those of the Northern Railway of France."
99 This is the first time before the February Revolution of 1848 that Bastiat used the socialist term "prolétaires" (proletarians) or "prolétariat" (the proletariat). The second occurred in ES3 XVIII. "Monita secreta" which was published on 20 February 1848 (the Revolution broke out on 23 February). Before this time he normally used the word "les ouvriers" (workers) so it seems the vocabulary of political debate was changing on the eve of the Revolution. After the Revolution he used the word proletarian or proletariat several times.
100 The "organization" of workers was urged by Louis Blanc in his influential pamphlet L'Organisation du travail (1839) as a way to overcome the "iniquities" of the system of wage labour and became a catch phrase of the socialist movement in the 1840s. The "Phalanstery" was a method of socialist organization advocated by Charles Fourier and his supporters in which people would live, own property, and work in common. See the glossary entries on "Blanc," "Fourier," and "Phalanstery." See also the discussion of "Association" and "Organization" as commonly used socialist slogans in the 1840s, in the "Note on the Translation."
101 This pithy and colorful formulation of how wages rise or fall according to demand is attributed to the English free trader and manufacturer Richard Cobden (1804-65) and was much quoted by French liberal economists. We have not been able to track down the original source. See the glossary entry on "Cobden".
102 An arpent is about the same size as an acre. See the glossary entry on "French Weights and Measures."
103 Provence is a region in southeastern France along the Mediterranean Sea. Médoc is a wine growing region in the Département of the Gironde north of the city of Bordeaux. The Hyères Islands are located in the Mediterranean close to Provence.
104 The word Bastiat uses in these passages is "sole" which is a small strip of land traditionally used for crop rotation (assolement de culture) in feudal agriculture. He coins another neologism here, namely "assolement industrial" (industrial rotation) suggesting that the protectionist regime creates a kind of "feudalization of industry."
105 (Paillottet's note) See chapter XIV of the Harmonies in Tome VI.
XIII. Theory and Practice [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Théorie, Pratique" (Theory and Practice) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 79-86.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
People accuse us, advocates of free trade, of being theoreticians and not taking sufficient account of practical aspects.
"What a terrible prejudice against M. Say,106" said M. Ferrier,107 "is this long line of distinguished administrators, this imposing line of writers, all of whom have seen things differently from him," a point M. Say does not hide from himself! Listen to him:
"It has been said, in support of old errors, that it is necessary to have some foundation for the ideas so generally adopted by every nation. Should we not be suspicious of observations and reasoning that overturn what has been taken to be constant up to now, what has been taken to be certain by so many leading figures to whom their enlightenment and intentions give credence? This argument, I admit, is worthy of making a profound impression and might cast doubt on the most incontrovertible points if we had not seen in turn the most erroneous opinions, now generally acknowledged to be such, accepted and professed by everyone for many centuries. It is not so long ago that every nation, from the coarsest to the most enlightened, and all men, from street porters to the most learned philosophers, recognized four elements. Nobody thought of disputing this doctrine, which is nevertheless false, to the extent that today there is no assistant biologist who would not be decried if he considered the earth, water, and fire as elements."
At which point, M. Ferrier makes the following observation:
"If M. Say thinks that he has answered the strong objection put forward, he is strangely mistaken. That men, who were nevertheless highly enlightened, have been wrong for several centuries on some point of natural history is understandable and proves nothing. Were water, air, earth and fire, whether elements of not, any the less useful to man? Errors like this are inconsequential; they do not lead to upheavals; they do not cast doubt into people's minds and above all do not harm any interests, and for this reason they might be allowed to last for thousands of years without mishap. The physical world therefore moves forward as though they did not exist. But can this be so for errors that attack the moral world? Can we conceive of an administrative system that is totally false and consequently harmful being followed for several centuries and in several nations with the general consent of all educated men? Could we explain how a system like this could be allied to the increasingly great prosperity of nations? M. Say admits that the argument he is combating is worthy of making a profound impression. Yes, certainly, and this impression remains, for M. Say has argued more in its favor than destroyed it."
Let us listen to M. de Saint-Chamans108:
"It was scarcely before the middle of the last century, the eighteenth century in which all subjects and every principle without exception were subject to discussion by writers, that these suppliers of speculative ideas, applied to everything without being applicable to anything, began to write on the subject of political economy. Before that, there was an unwritten system of political economy that was practiced by governments. Colbert,109 it was said, was its inventor, and it was the rule for all the states in Europe. The strangest thing about it is that it is still so, in spite of anathema and scorn and in spite of the discoveries of the modern school. This system, which our writers called the mercantile system, consisted in … obstructing, through prohibition or import duties, foreign products that might have ruined our factories by competing with them. . . . This system was declared by economist writers of all schools110 to be inept, absurd and likely to impoverish any country; it has been banished from all books, reduced to taking refuge in the practice of all peoples, and we cannot conceive that, with regard to the wealth of nations, governments have not drawn their counsel from scholars rather than from the long-standing experience of a system, etc. …. Above all we cannot conceive that the French government … is determined to resist the progress of enlightenment with regard to political economy and to retain the practice of old errors that all of our economist writers have pointed out … But this is dwelling too much on this mercantile system which has only facts in its favor and which is supported by no writer!"111
Hearing this, will some people not say that when economists call for each person to have the free disposal of his property, they have given birth, like the followers of Fourier, to a new social order, fanciful, strange, a sort of phalanstery that is unprecedented in the annals of the human race?112 It seems to me that if there is anything in all this that has been invented, contingent, it is not freedom, but protection; it is not the ability to trade but indeed the customs service, which is applied to upsetting artificially the natural order of income.
But it is not a question of comparing or judging the two systems. The question for the moment is to know which of the two is based on experience.
Thus, you monopolists claim that facts are on your side and that we have only theories to support us.
You even flatter yourselves that this long series of public acts, this old experience of Europe's that you invoke appeared imposing to M. Say, and I agree that he has not refuted you with his customary sagacity. For my part, I do not yield the domain of fact to you, for you have in your support only exceptional and restrained facts, while we have to oppose the universal facts, the free and voluntary acts of all men.
What are we saying and what do you say?
We say:
"It is better to purchase from others what it would cost more to produce ourselves."
You, on the other hand, say:
"It is better to make things ourselves even though it costs less to purchase them from others."
Well, sirs, leaving theory, demonstration, and reasoning, all things that appear to nauseate you, to one side, which of these two statements has the approval of universal practice on its side?
Just pay a visit to fields, workshops, factories, and stores, look upward, downward, and around you, scrutinize what is being done in your own households, observe your own everyday acts, and tell us what principle is governing all these laborers, workers, entrepreneurs, and merchants. Tell us what your personal practice is.
Do farmers make their own clothes? Do tailors produce the grain they consume? Does your housekeeper not stop making bread at home as soon as she finds it cheaper to purchase it from the baker? Do you mend your own boots instead of writing, in order not to pay tribute to the cobbler? Does the entire economy of society not rest on the separation of occupations, the division of labor, in a word, on exchange? And is trade anything other than this calculation that makes us all, whatever we are, cease direct production when indirect acquisition saves us both time and trouble?
You are thus not men of practice, since you cannot show us a single man anywhere in the world who acts in accordance with your principle.
But, you will say, we have never heard of our principle being used as a rule for individual relations. We fully understand that this would disrupt social links and force men to live like snails, each in his shell. We limit ourselves to claiming that it dominates de facto the relations established between groups in the human family.
As it happens, this assertion is also false. Families, communes, cantons, départements, and provinces are so many groups which all, without exception, reject in practice your principle and have never even given it a thought. All of these obtain by means of exchange what would cost them more to obtain by production. Every nation would do likewise if you did not prevent it by force.
It is therefore we who are the men of practice and experience, for in order to combat the prohibition that you have specially placed on some international trade, we base ourselves on the practice and experience of every individual and every group of individuals whose acts are voluntary and thus can be quoted as evidence. You, however, begin by constraining and preventing and then you seize upon acts that are forced or prohibited to claim: "You see, practice justifies us!"
You rise up against our theory and even against theory in general. But when you posit a principle that is antagonistic to ours, did you ever by chance imagine that you were not indulging in theory? No, no, cross that out of your papers. You are indulging in theory, just like us, but between yours and ours there is this difference:
Our theory consists only in observing universal facts, universal sentiments, universal calculations and procedures, and at the very most classifying them and coordinating them in order to understand them better.
It is so little opposed to practice that it is nothing other than practice explained. We watch the actions of men driven by the instinct of self-preservation and progress and what they do freely and voluntarily; it is exactly this that we call political economy or the economics of society. We constantly repeat that each man is in practice an excellent economist, producing or trading depending on whether there is more to gain from trading or producing. Each one through experience teaches himself this science, or rather science is merely this same experience scrupulously observed and methodically set out.
You, however, make theory in the disparaging meaning of the word. You imagine and invent procedures that are not sanctioned by the practice of any living man under the heavens and then you call coercion and prohibition to your assistance. You have indeed to resort to force since, as you want men to produce what it is more advantageous to purchase, you want them to abandon an advantage and you require them to act in accordance with a doctrine that implies a contradiction even on its own terms.
Thus, I challenge you to extend, even in theory, this doctrine that you admit would be absurd in individual relationships, to transactions between families, communes, départements, or provinces. On your own admission, it is applicable only to international relations.
And this is why you are reduced to repeating each day:
"Principles are never absolute. What is good in individuals, families, communes, and provinces is bad in nations. What is good on a small scale, that is to say, purchasing rather than producing when a purchase is more advantageous than production, is the very thing that is bad on a large scale; the political economy of individuals is not that of peoples," and more nonsense ejusdem farinae.113
And what is the reason for all this? Look closer. To prove to us that we the consumers are your property! That we belong to you, body and soul! That you have an exclusive right over our stomachs and limbs! That it is up to you to feed us and clothe us at a price set by you whatever your incompetence, rapacity or the inferiority of your situation!
No, you are not men of practice; you are men of abstraction . . . and of extortion.114
Endnotes106 Jean-Baptiste Say (1767-1832) was the leading French political economist in the first third of the nineteenth century. He had the first chair in political economy at the Collège de France. Say is best known for his Traité d'économie politique (1803) and the Cours complet d'économie politique pratique (1828-33). See the glossary on "J.B.Say."
107 (Bastiat's note) From page 5 of De l'administration commerciale opposée à l'économie politique. [Bastiat is quoting from pages v-viii of the second edition of Ferrier's Du gouvernement considéré dans ses rapports avec le commerce (1821). Ferrier in turn is quoting from Say's Traité d'économie politique, 3rd edition, p. lxvi, or 4th edition, p. lxvii. François Ferrier (1777-1861) was an advocate for protectionism and served as director general of the Customs Administration during the Empire and was a member of the Chamber of Peers during the July monarchy. See the glossary entry on "Ferrier."]
108 Auguste Saint-Chamans (1777-1860) 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."
109 Jean-Baptiste Colbert (1619-83) was the comptroller-general of finance under Louis XIV from 1665 to 1683. He epitomized the policy of state intervention in trade and industry known as "mercantilism." See the glossary entry on "Colbert."
110 (Bastiat's note) Could it not be said: "It is a terrible prejudice against MM. Ferrier and Saint-Chamans that economists of all schools, that is to say, every man who has studied the question, should have reached the same conclusion, that after all, freedom is better than constraint and that God's laws are wiser than Colbert's. [Bastiat is no doubt thinking of at least two schools of economic thought which advocated free trade and laissez-faire policies, the French Physiocrats (such as Quesnay and Turgot) and the Smithian School which followed the ideas of Adam Smith. See the glossary entries on "The Physiocrats," "Adam Smith," and "Laissez-faire."]
111 (Bastiat's note) From page 11 of Du système de l'impôt (The Tax System) by the vicomte de Saint-Chamans. [DMH - Bastiat is quoting from pp. 11-13 of chap. 2 of this work.]
112 François-Marie Charles Fourier (1772-1837) was a socialist and founder of the phalansterian school or "Fourierism." This consisted of a utopian, communistic system for the reorganization of society in which individuals would live together as one family and hold property in common. See the glossary entry on "Fourier."
113 A Latin phrase "ejusdem farinae" meaning literally "of the same flour", in other words, "cut from the same cloth."
114 (Paillottet's note) See chapter XV below (see this volume, "More Reciprocity," pp. 000—00).
XIV. A Conflict of Principles [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Conflit de principes" (A Conflict of Principles) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 86-90.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
There is something that confuses me, and it is this:
Sincere political writers studying the economy of societies from the sole point of view of the producer have reached the following two policies:
"Governments ought to make the consumers who are subject to their laws favour national industry."
"They ought to make foreign consumers subject to their laws in order to make them favour national industry."
The first of these policies is called Protectionism, the second is called opening up foreign markets.
Both of them are based on the fundamental idea known as the balance of trade:
"A people grows poorer when it imports and wealthier when it exports."
For if any purchase from abroad is tribute paid out and a loss, it is very simple to restrict and even prohibit imports.
And if any sale abroad is tribute received and a profit, it is only natural to create markets for yourself, even through force.
Protectionist systems, colonial systems: these are therefore just two aspects of the same theory. Preventing our fellow citizens from purchasing from foreigners and forcing foreigners to purchase from our fellow citizens are just two consequences of an identical principle.
Well, it is impossible not to recognize that, according to this doctrine, if it is true, general interest is based on monopoly, or internal plunder, and on conquest, or external plunder.
I enter one of the chalets clinging to the slopes of our Pyrénées.
The head of the household has received only a meager wage for his work. A glacial wind makes his scantily clad children shiver, the fire is out and the table empty. There is wool, wood, and corn the other side of the mountain but these goods are forbidden to the family of the poor journeyman, as the other side of the mountains is no longer France. Foreign pine will not cheer the chalet's fireplace, the shepherd's children will not learn the taste of Basque bread,115 and Navarre wool will not warm their frozen limbs. If this is what the general interest wants: fine! But let us agree that in this instance it is contrary to justice.
To command consumers by law, to force them to buy only in the national market, is to infringe on their freedom and to forbid them an activity, trade, that is in no way intrinsically immoral; in a word, it is to do them an injustice.
And yet it is necessary, people say, if we do not want national production to halt, if we do not want to deal a deathblow to public prosperity.
Writers of the protectionist school therefore reach the sorry conclusion that there is radical incompatibility between Justice and the Public Interest.
On the other hand, if every nation is interested in selling and not purchasing, a violent action and reaction will be the natural state of their mutual dealings, for each will seek to impose its products on everyone and everyone will endeavor to reject the products of everyone else.
A sale, in effect, implies a purchase, and since, according to this doctrine, selling is making a profit just as purchasing is making a loss, every international transaction implies the improvement of one nation and the deterioration of another.
On the one hand, however, men are inexorably drawn to whatever brings them a profit, while on the other they instinctively resist anything that harms them, which leads to the conclusion that every nation carries within itself a natural impulsion to expansion and a no less natural impulsion to resistance, both of which are equally harmful to everybody else, or in other words, antagonism and war are the natural condition of the human race.
Thus, the theory I am discussing can be summarized by these two axioms:
Public Interest is incompatible with Justice within the country.
Public Interest is incompatible with Peace abroad.
Well then! What astonishes and disconcerts me is that a political writer or a statesman, who has sincerely adopted an economic doctrine whose basic ideas are so violently contrary to other incontrovertible principles can have even one instant of calm and peace of mind.
For my part, I think that, if I had gone into science through this particular door, if I had not clearly perceived that Freedom, Public Interest, Justice and Peace are things that are not only compatible but closely linked with each other and, so to say, identical, I would endeavor to forget everything I had learnt and tell myself:
"How could God have wished men to achieve prosperity only through injustice and war? How could He have decreed that they should renounce war and injustice only by renouncing their well-being?
"Is the science that has led me to the horrible blasphemy implied by this alternative not misleading me with false flashes of insight, and do I dare to take it on myself to make it the basis for the legislation of a great nation? And when a long line of illustrious scholars has gathered more reassuring results from this same science, to which they have devoted their entire life, when they state that freedom and public interest can be reconciled with justice and peace; that all these great principles follow infinite parallel paths without conflicting with each other for all eternity; do they not have on their side the presumption that results from everything we know of the goodness and wisdom of God as shown in the sublime harmony of physical creation? Am I casually to believe, faced with such beliefs and on the part of so many imposing authorities, that this same God took pleasure in instilling antagonism and discord in the laws governing the moral world? No, no, before holding as certain that all social principles conflict with each other, crash into and neutralize each other, and are locked in an anarchical, eternal, and irremediable struggle; before imposing on my fellow citizens the impious system to which my reasoning has led me, I wish to review the entire chain and reassure myself that there is no point on the route at which I have gone astray."
If, after a sincere examination, redone twenty times, I continued to reach this frightful conclusion, that we have to choose between the Right and the Good,116 I would reject science in my discouragement, I would sink into willful ignorance, and above all I would decline any participation in the affairs of my country, leaving men of another stamp the burden and responsibility of such a painful choice.117
Endnotes115 Bastiat uses the term "la méture" which is a kind of corn bread and is a speciality of Les Landes region where Bastiat grew up. It can also be made with pieces of ham known as "la méture au jambon." Bastiat would have known well the Spanish provinces Biscay and Navarre on the other side of the border where he lived as he was fluent is Spanish and had once attempted to establish an insurance business in Spain. He may have witnessed personally the smuggling that took place across the border and might have known Béranger's poem "The Smugglers" about smuggling on the Franco-Spanish border. Pierre-Jean de Béranger (1780-1857) was a liberal poet and songwriter who rose to prominence during the Restoration period with his funny and clever criticisms of the monarchy and the church. He was sent to prison twice in the 1820s for offending the political authorities with his irreverent verses. Bastiat knew him and was known to have sung his drinking songs on occasion. See the glossary entry on "Béranger."
116 The phrase Bastiat uses is "le Bien et le Bon" which is difficult to translate. Given the context of what Bastiat is arguing, one might translate it as "the morally good and the materially good (or useful)."
117 (Paillottet's note) See chapters XVIII, XX at the end of this volume [see this volume, "There Are No Absolute Principles" and "Human Labor, Domestic Labor"], and the letter to M. Thiers titled "Protectionism and Communism" (OC, vol. 4, p. 504, "Protectionisme et communisme"). ["Protectionism and Communism" also appears in The Collected Works of Frédéric Bastiat, in the volume titled "The Law," "The State," and Other Political Writings, 1843–1850, pp. 000–00.]
XV. More Reciprocity [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Encore la réciprocité" (More Reciprocity) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 90-92.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
As M. de Saint-Cricq118 said: "Are we sure that foreigners will purchase as much from us as they sell to us?"
M. de Dombasle119 says: "What reason have we to believe that English producers will come to us rather than any other nation in the world in search of the products they may need and products whose value is equivalent to their exports to France?"
I am amazed that men who above all call themselves practical reason in a way divorced from all practicality!
In practice, is there one trading operation in a hundred, a thousand, or perhaps even ten thousand that is a direct exchange of one product for another? Since money first came into the world, has any farmer ever said to himself: "I want to buy shoes, hats, advice, and lessons only from a shoemaker, milliner, lawyer, or teacher who will buy wheat from me for exactly the equivalent value"? And why would nations impose this obstacle on themselves?
How are things really done?
Let us imagine a nation that has no foreign trade. One man has produced wheat. He sells it in the national market at the highest price he can obtain and receives in exchange . . . what? Écus,120 that is to say, money orders, goods which can be split up indefinitely, which will permit him to take from the national market the goods which he needs or wants at a time he judges suitable and up to the amount he has at hand.121 All said and done, at the end of the operation he will have withdrawn from the total the exact equivalent of what he has put into it and in value, his consumption will be exactly the same as his production.
If this nation's external trade is free it is no longer in the national flow of goods but in the general flow of goods that each person places his products and it is from that flow that he withdraws his consumption. He does not have to worry whether what he puts into this general circulation is bought by a fellow citizen or a foreigner, whether the money orders he receives come from a Frenchman or an Englishman, whether the objects for which he later trades these money payments, according to his needs, have been made on this or that side of the Rhine or the Pyrénées. What remains true is that there is for each individual an exact balance between what he puts in and what he takes out of the great common reservoir, and if this is true for each individual, it is also true for the nation as a whole.
The only difference between the two cases is that, in the second, each is facing a market that is wider for his sales and purchases and has consequently more opportunity to do well on both fronts.
The following objection is made: If everyone joins forces in order not to withdraw from the circulation the products of a given individual, he will not be able to withdraw anything in turn from the overall flow. This is the same for a nation.
Reply: If this nation cannot withdraw anything from the general circulation, it will not put anything into it either; it will work for its own account. It will be forced to submit to what you wish to impose on it at the outset, that is to say, isolation.
And that will be the ideal of the prohibitionist regime.
Is it not ludicrous that you are already inflicting this regime on the nation for fear that it will run the risk of reaching it one day without you?
Endnotes118 Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854) was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, and then Minister of Trade and Colonies (1828-29). See the glossary entry on "Saint Cricq."
119 Joseph Alexandre Mathieu de Dombasle (1777-1843) was an agronomist who introduced the practice of triennial crop rotation (cereals, forage, vegetables) in France. He also wrote on the sugar-beet industry, De l'impôt sur le sucre indigène: Nouvelles considerations (1837). See the glossary entry on "Dombasle."
120 See the glossary entry on "French Currency."
121 The technical commercial term Bastiat uses is "jusqu'à due concurrence" which can mean in commercial transactions "proportionally" or "up to the amount of."
XVI. Blocked Rivers pleading in favor of the Prohibitionists [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Les fleuves obstrués plaidant pour les prohibitionistes" (Blocked Rivers pleading in favor of the Prohibitionists) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 92-93.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
A few years ago I was in Madrid.122 I went to the cortès.123 They were discussing a treaty with Portugal on improving the bed of the Douro.124 A deputy stood up and said: "If the Douro is channeled, transport will cost less. Portuguese grain will be sold cheaper in Castile and will provide formidable competition for our national production. I reject the project unless the ministers undertake to raise customs duties so as to reestablish the balance." The assembly had no answer to this argument.
Three months later I was in Lisbon. The same question was put before the Senate. A noble hidalgo125 said: "Mr. President, the project is absurd. You are putting guards at huge expense on the banks of the Douro to prevent the invasion of grain from Castile into Portugal and, at the same time, you want, also at huge expense, to make this invasion easier. Let the Douro be passed to our sons in the same state as our fathers left it to us."
Later, when it was a question of improving the Garonne,126 I remembered the arguments of the Iberian speakers and said to myself: "If the deputies in Toulouse were as good economists as those from Palencia and the representatives of Bordeaux were as skilled logicians as those of Oporto,127 the Garonne would surely be left "to sleep to the pleasing sound of its tilting urn,"128 for the channeling of the Garonne would encourage the invasion of products from Toulouse to the detriment of Bordeaux and the flooding of products from Bordeaux to the detriment of Toulouse.
Endnotes122 Bastiat's family had business interests in Spain. In 1840 he travelled to Spain and Portugal with the intention of setting up an insurance business. This did not eventuate.
123 The Cortes Generales is the legislative body which rules Spain. Liberal deputies enacted a new more liberal constitution in 1812.
124 The Douro river flows across northern-central Spain and Portugal towards its mouth at Porto on the Atlantic coast. It flows through a major wine growing region.
125 A member of the lower nobility.
126 The Garonne river has its source in the Pyrénnées mountains on the border between Spain and France and flows northwards through the city of Toulouse before reaching Bordeaux on the coast.
127 Palencia is a Spanish city on a tributary of the Douro river; and Oporto is a Portuguese city at the mouth of the Douro.
128 Bastiat misquotes some lines from Nicolas Boileau-Despréaux's (1636-1711) poem celebrating the crossing of the Rhine River by the French army in 1672: "Au pied de mont Adule, entre mille roseaux / Le Rhin tranquille, et fier du progrès de ses eaux, / Appuyé d'une main sur son urne penchante, / Dormoit au bruit flatteur de son onde naissante: / Lorsqu'un cri tout à coup suivi de mille cris / Vient d'un calme si doux retirer ses esprits." [At the foot of Mount Adule, between a thousand reeds / The tranquil Rhine, proud of the progress of its waters, / Supported with one hand on its sloping urn, / Sleeps to the flattering sounds of its new wave, / When a cry, suddenly followed by a thousand cries / Comes from a calm so soft to take its spirits away.] From Épitre IV. "Au Roi," in Oeuvres de Boileau Despréaux, p. 136. Bastiat misquotes it as "Dormir au bruit flatteur de son urne penchante" conflating two adjacent lines of the poem. This could be a mistake or it could be deliberate. The word "urne" has another meaning, namely a ballot box in which votes were deposited. Since in the previous passage he was criticizing elected politicians for their contradictory policies in wanting to both improve the transportation of goods by river by digging canals and at the same time to hamper the transportation of goods by river by setting up customs barriers, he might be having a joke at their expense by re-writing this famous poem. It might now read "to sleep to the flattering sounds of its bent ballot box." See the glossary entry on "Boileau-Despréaux".
XVII A Negative Railway [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Un chemin de fer négatif" (A Negative Railway] [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 93-94.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
I have said that when, unfortunately, we took the point of view of the producers' interest, we could not fail to clash with the general interest,129 since producers, as such, demand only effort, needs, and obstacles.
I have found a remarkable example of this in a Bordeaux journal.
M. Simiot130 asks himself this question:
Should the Paris to Spain railway be offered to Bordeaux with a complete fracture in the line?131
He answered it in the positive with a host of reasons that it is not my place to examine but which include the following:
The railway between Paris and Bayonne should be completely broken in two132 at Bordeaux so that goods and passengers forced to stop in the town would contribute revenue to boatmen, packmen, commission agents, shippers, hoteliers, etc.
It is clear that this is once again a case of the interest of producers being put ahead of the interest of consumers.
But if Bordeaux can be allowed to profit from this break in the line, and if this is in keeping with the public interest, Angoulême, Poitiers, Tours, Orleans, and more, all intermediary points, Ruffec, Châtellerault, etc., etc., must also demand breaks in the line in the general interest, that is of course in the interest of national production, since the more breaks there are, the more consignments, commissions, and transshipping there will be all along the line. With this system, we will have created a railway made up of consecutive segments, a negative railway.
Whether the protectionists want this or not, it is no less certain that the principle of trade restriction is the same as the principle of breaks in the line: the sacrifice of the consumer to the producer and of the end to the means.
Endnotes129 In a letter of 19 May 1846 addressed to a commission of the Chamber of Deputies which was looking into the route that should be taken by a new railway from Bordeaux to Bayonne, Bastiat argues that any political decision on routes is bound to upset somebody: the shortest route is the cheapest to build, but a winding route will service the needs of more people. See "On the Bordeaux to Bayonne Railway Line" in CW, vol. 1, pp. 312-16.
130 Alexandre Étienne Simiot (1807-1879) was a member of the Municipal Council of the Gironde and one of the leading figures in local democratic politics. He wrote Gare du chemin de fer de Paris à Bordeaux (impr. de Durand, 1846). See the glossary entry on "Simiot."
131 Bastiat here uses the medical term "La solution de la continuité" which is used to describe, somewhat counterintuitively, a rupture, fracture, or complete break in a vessel or a bone, such as the skull. As one medical dictionary put it, the expression should really be "la dissolution de la continuité" (the rupturing or breaking of continuity). See the many references in Auguste-Théodore Vidal, Traité de pathologie externe et de médecine opératoire, 2e édition, 5 vols. (Paris: J.B. Baillière, 1846).
132 Bastiat uses the word "la lacune" (break or gap) here. It is in the medical sense noted above that one should understand Bastiat's use of the word "la lacune", not to mean a "stop" at a station to let passengers on or off, but the literal fracturing or breaking of the railway into two separate and discontinuous pieces which would require the transshipping of passengers and luggage from one railway to the next in order for them to continue their journey. This would sometimes occur at the border between states. Fifty years after Bastiat wrote these lines, Mark Twain related his experience in traveling by train from Sydney to Melbourne in his travel book Following the Equator (1898). At the border town of Albury passengers had to get up in the middle of cold winter's night to trans-ship themselves and their belongings from the narrow-gauge train in New South Wales to the broad-gauge train in Victoria. Twain described this as "the oddest thing, the strangest thing, the most baffling and unaccountable marvel that Australasia can show." He also interestingly, like Bastiat, saw the similarity to customs barriers and discussed the cost to the west coast of America of being forced to buy higher price east coast steel instead of cheaper foreign steel. See Appendix 5 "Mark Twain and the Australian Negative Railroad."
XVIII There are no Absolute Principles [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Il n'y a pas de principes absolus" (There are no Absolute Principles) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 94-97.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
You cannot be too surprised at the ease with which men resign themselves to ignoring what they need most to know, and you can be sure that they are determined to fall asleep in their ignorance once they have come to the point of proclaiming this axiom: There are no absolute principles.
You enter the legislative chamber. The question before the house is to ascertain whether the law will forbid or free up international trade.
A deputy stands up and says:
"If you allow this trade, foreigners will flood you with their products, the English with cloth, the Belgians with coal, the Spanish with wool, the Italians with silk, the Swiss with cattle, the Swedish with iron, and the Prussians with wheat, so that no industry will be possible in this country."
Another replies:
"If you forbid this trade, the various benefits that nature has showered on each geographical region will be nonexistent for you. You will not share in the mechanical skills of the English, the richness of the Belgian mines, the fertility of Polish soil, the fruitfulness of Swiss pastures, the cheapness of Spanish labor, or the heat of the Italian climate, and you will have to satisfy your demand with goods produced under awkward and difficult conditions instead of with goods obtained by trading with those who can produce things more easily."
It is certain that one of these deputies is wrong. But which one? It is nevertheless worth while taking the trouble to find out, as it is not just a matter of opinion. You are faced with two paths and you have to choose; and one inevitably leads to poverty.
To escape from this quandary, people say: There are no absolute principles.
This axiom, so fashionable today, in addition to nodding to laziness, is also suited to ambition.
If the theory of prohibition won, or else if the doctrine of freedom triumphed, a very small law would encompass our entire economic code. In the first case, it would say: All foreign trade is forbidden and in the second: All foreign trade is free, and many leading figures would lose their importance.
But if trade does not have its own proper nature, if it is not governed by any natural law, if it is capriciously useful or disastrous, if it does not find its stimulus in the good it does and its limit in the good it ceases to do, and if its effects cannot be appreciated by those who carry it out, in a word, if there are no absolute principles, oh! It would then be necessary to weigh, balance, and regulate transactions, to equalize the conditions of labor, and to set the level of profits; a colossal task, but one well suited to be given to those who enjoy high remuneration and wide influence.
On entering Paris, which I had come to visit, I said to myself: Here there are a million human beings who would all die in a few days if supplies of all sorts did not flood into this huge metropolis. The mind boggles when it tries to assess the huge variety of objects that have to enter through its gates tomorrow if the lives of its inhabitants are not to be snuffed out in convulsions of famine, uprisings, and pillage. And in the meantime everyone is asleep, without their peaceful slumber being troubled for an instant by the thought of such a frightful prospect. On the other hand, eighty departments133 have worked today without being in concert and without agreement to supply Paris. How does it happen that every day what is needed and no more or less is brought to this gigantic market? What is thus the ingenious and secret power that presides over the astonishing regularity of such complicated movements, a regularity in which everyone has such blind faith, although well-being and life depend on it? This power is an absolute principle, the principle of free commerce.134 We have faith in this intimate light that Providence has placed in the hearts of all men to whom it has entrusted the indefinite preservation and progress of our species, self-interest, for we must give it its name, that is so active, vigilant, and farsighted when it is free to act. Where would you be, you inhabitants of Paris, if a minister took it into his head to substitute the arrangements he had thought up, however superior they are thought to be, for this power? Or if he took it into his head to subject this stupendous mechanism to his supreme management, to gather together all these economic activities in his own hands, to decide by whom, how, or under what conditions each object has to be produced, transported, traded and consumed? Oh! Although there are a good many causes of suffering within your city, although destitution, despair, and perhaps starvation are causing more tears to flow than your ardent charity can stem, it is probable or, I dare to say, even certain, that the arbitrary intervention of the government would infinitely increase these sufferings and extend to you all the misfortunes that are only affecting a small number of your fellow citizens.
Well then! Why, when we have faith in a principle when it relates to domestic transactions, do we not have the same faith in this principle when it is applied to international transactions, which are certainly fewer in number and less difficult and complicated? And, if it is not necessary for the Prefecture of Paris to regulate our industries, balance our opportunities, profits, and losses, concern itself with the depletion of our money, and equalize the conditions governing our labor in domestic commerce, why is it necessary for the customs service to aspire to exercise protective action, which is beyond its fiscal mission, with regard to our foreign commerce?135
Endnotes133 In Bastiat's day there were 86 départements in France. See the glossary entry on "French Government Administrative Regions."
134 Bastiat uses a slightly different expression here. Instead of the usual "la liberté des échanges" (free trade) he uses "la liberté des transaction" which could mean "freedom of commerce".
135 (Paillottet's note) See the first letter to M. de Lamartine in volume 1 and chapter I of the Economic Harmonies in volume 6 (OC, vol. 1, p. 406, "Un Économiste à M. de Lamartine"; and vol. 6, p. 21, "Organisation naturelle, organisation artificielle").
XIX. National Independence [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Indépendance nationale" (National Independence) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 97-99.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
Among the arguments put forward in favor of protectionism, we should not forget the one based on national independence.
"What will we do in case of war", people say, "if we are subject to England's discretion with regard to iron and coal?"
Monopolists in England, for their part, unfailingly proclaim:
"What would become of Great Britain in time of war if she were dependent on France for her food?"
We tend to disregard one fact, which is that this type of dependence resulting from trade and commercial transactions is mutual. We cannot be dependent on foreigners without these foreigners being dependent on us. This is the very essence of society. Breaking off natural relationships does not make us independent, but isolated.
And note this well: we isolate ourselves because of an expectation of war, but the very act of isolating ourselves is the first step to war. It makes it easier, less of a burden and because of this, less unpopular. If nations are constant markets for each other, if their relationships cannot be broken off without inflicting on them the twin suffering of deprivation and over supply, they will no longer need the powerful navies that are ruining them and the massive armies now crushing them, the peace of the world will not be compromised by the caprices of M. Thiers136 or Lord Palmerston,137 and war will disappear for lack of incentive, resources, reasons, pretexts, and popular favor.138
I am fully aware that I will be blamed (for this is the current fashion) for resting fraternity between nations on self-interest, vile and prosaic interest. People would prefer fraternity to be rooted in charity and love, with even a little self-sacrifice, and in hurting men's material well-being, to possess the merit of generous sacrifice.
When will we ever be rid of this puerile moralism? When will we finally banish hypocrisy from science? When will we drop this sickening contradiction between our writings and our actions? We boo at, we shout down self-interest, that is to say what is useful and good (since to say that all nations are interested in a thing is to say that this thing is intrinsically good), as though self-interest was not a necessary, eternal and indestructible motive to which Providence has entrusted human progress! As if we were all angels of disinterestedness? As if the public was not beginning to see, and with disgust, that this affected language is blackening the very pages for which the public is expected to pay so dearly.?? Oh, such affectation! This is really the disease of this century.
What! Because well-being and peace are closely allied, because God was pleased to establish this fine harmony in the moral world, you do not want me to admire and adore his decrees and accept with gratitude laws that make justice a condition of happiness? You do not want peace unless it is to the detriment of well-being, and freedom weighs heavy on you because it does not impose sacrifice on you? And, if self-sacrifice has such attraction for you, what stops you including it in your private actions? Society would be grateful to you if you did, for at least someone would reap the benefit from it, but to wish to impose it on humanity on principle is the height of absurdity, for the self-sacrifice of all is the sacrifice of all and constitutes misfortune raised to the status of a theory.
But thank heaven we can write and read a great number of these ranting speeches without the world ceasing to obey its driving force, which is self-interest, like it or not.
After all, it is rather strange to see sentiments of the most sublime self-denial invoked in support of plunder itself. This is what this ostentatious disinterestedness leads to! These men, who are so poetically delicate that they do not want peace itself if it is based on men's vile self-interests, are putting their hands into other people's pockets, especially those who are poor, for what article of the tariff protects the poor? Yes, sirs, do whatever you like with what belongs to you, but likewise let us do what we want with the fruit from the sweat of our brows, to use it ourselves or to trade it. Make speeches on self-renunciation, for that is fine, but at the same time at least be honest.139
Endnotes136 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."
137 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. See the glossary entry on "Palmerston."
138 These two paragraphs are a nice summary of the views held by Richard Cobden and Bastiat regarding the link between free trade and peace. Cobden and Bastiat frequently corresponded on this topic (see CW, vol. 1 for details) and visited each other when they attended conferences organized by the Friends of Peace. See the glossary entries on "Richard Cobden," "Peace Congress (Paris August 1849," Appendix 6 "Bastiat's Speech on 'Disarmament and Taxes' (August 1849)," and Bastiat and the organized Peace Movement" in Appendix 1 "Further Aspects of Bastiat's Life and Thought."
139 (Paillottet's note) See the pamphlet entitled Justice and Fraternity in this volume (OC, vol. 4, p. 298, "Justice et fraternité"). Also see the introduction to Cobden and the English League followed by the Second Campaign of the League in volume 3. (OC, vol. 3, p. 1, "Introduction"; and p. 449, "Seconde campagne de la Ligue"). ["Justice and Fraternity" also appears in The Collected Works of Frédéric Bastiat, in the volume titled "The Law," "The State," and Other Political Writings, pp. 000–00.]
XX. Human Labor and Domestic Labor [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Travail humain, travail national" (Human Labor and Domestic Labor) [no date given] [1st published in book].
- Published as book or pamphlet: 1 ES1 st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 100-05.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
Smash the machines,140 reject foreign goods; these are two acts generated by the same doctrine.
We see men who clap when a great invention is revealed to the world and who nevertheless support protectionism. Such men are very inconsistent!
What is their objection to free trade? That it results in our having things made by foreigners who are more skillful or better situated than we, which otherwise we would produce ourselves. In a word, it is accused of damaging domestic labor.
By the same token, should these critics not be blaming machines for accomplishing through natural agents a production, which, without them, would fall to manual effort and consequently for damaging human labor?
Foreign workers who are better situated than French ones are veritable economic machines that crush the latter through their competition. Similarly, a machine that carries out an operation at a lower cost than a given number of hands is, with regard to this labor, a genuine foreign competitor that paralyzes them with its competition.
If therefore it is appropriate to protect domestic labor against competition from foreign labor, it is no less so to protect human labor against competition from mechanical labor.
So, if he has an ounce of logic in his brain, anyone who supports a protectionist regime should not stop at forbidding foreign products; he ought to forbid even more the products of the shuttle and the plough.
And this is why I much prefer the logic of those men who, speaking out against the invasion of goods from far distant lands, at least have the courage to speak out as well against over production due to the inventive power of the human mind.
One of these is M. de Saint-Chamans.141 "One of the strongest arguments," he says, "against free trade and the over use of machines, is that many workers are deprived of work either by foreign competition that closes factories down or by equipment that takes the place of men in the workshops." (On the Tax System, page 438.)142
M. de Saint-Chamans has accurately seen the analogy, let us go further, the identity existing between imports and machines. This is why he forbids them both; and truly, there is some pleasure in facing intrepid debaters, who, even when they are wrong, take their line of reasoning to its limit.
But look at the difficulty in store for them!
While it is a priori true that the domains of invention and labor can expand only at the expense of one another, it is in those countries in which there are the most machines, for example in Lancashire, that we ought to see the fewest workers. And if, on the contrary, we see in fact that machines and workers coexist to a greater degree in rich nations than in uncivilized ones, we have to conclude that these two forces are not mutually exclusive.
I cannot explain to myself how a thinking soul can have a moment's rest when faced with this dilemma:
Either the inventions of man do not damage his labor, as the general facts demonstrate, since there are more of both among the English and French than among the Hurons and Cherokees, and, in this case, I have gone wrong, although I do not know either where or how I have gone astray. I would be committing treason against humanity if I introduced my mistake into the legislation of my country.
Or the discoveries of the human mind reduce manual labor, as certain facts appear to indicate, since every day I see a machine being substituted for twenty or one hundred workers, in which case I am obliged to identify a flagrant, eternal, and incurable antithesis between man's intellectual and physical power, between his progress and his well-being. I cannot refrain from saying that the author of man was bound to give him the gift of either brain or brawn, either moral strength or brute force, and that in the event he has played a trick on him by conferring on him, simultaneously, mutually destructive powers.
This is a pressing difficulty. Well, do you know how to solve it? By this strange maxim:
In political economy, there are no absolute principles.
In common, intelligible parlance, this means:
"I do not know where truth or falsehood lies and am ignorant of what constitutes general good or evil. I do not let this trouble me. The immediate effect of each measure on my personal well-being is the sole law I agree to acknowledge."
There are no principles! This is as though you were saying: "There are no facts, for principles are only formulae that sum up an entire order of well-known facts."
Machines and imports certainly have effects. These effects are either good or bad. People can have differing opinions in this respect. But whichever one you adopt is formulated using one of these two principles: machines are good or machines are bad. Imports are advantageous or imports are harmful. But to say there are no principles is certainly the lowest degree of humiliation to which the human mind can descend, and I admit that I blush for my country when I hear such a monstrous heresy enunciated before the French Chambers with their assent, that is to say, before and with the assent of the elite of our fellow citizens, and all this to justify themselves for imposing on us laws in total ignorance.
But in the end, I will be told, destroy the sophism. Prove that machines do not damage human labor and that imports do not damage domestic labor.
In an essay of the present kind, such proofs could not be very detailed. My aim is rather to establish the difficulties than to solve them and to arouse reflection rather than to satisfy it. No convictions are ever firmly anchored in the human mind other than those that result from its own work. I will nevertheless endeavor to set it along this path.
What misleads the opponents of imports and machines is that they judge them by their immediate and transitory effects instead of going to their general and definitive consequences.143
The immediate effect of an ingenious machine is to render a certain amount of manual labor superfluous for a given result. However, its action does not in the slightest stop there. For the very reason that this given result is achieved with less effort, it is made available to the public at a lower price, and the sum of the savings thus realized by all purchasers enables them to satisfy other wants, that is to say, to encourage manual labor in general by precisely the amount saved by those manual laborers working in the recently improved industry. In short, the level of work has not decreased, although that of satisfaction has been increased.
Let us use an example to make this set of effects clearer.
Let us imagine that 10 million hats costing 15 francs are consumed in France. This provides the hat industry with a turnover of 150 million. A machine is invented that enables the hats to be sold at 10 francs. The turnover for this industry is reduced to 100 million assuming that consumption does not increase. However, the 50 million is not lost to human labor for all that. Having been saved by the purchasers of hats, it will be used to satisfy other needs and consequently to remunerate the entire industrial system by the same figure. With the 5 francs he has saved, Jean will buy a pair of shoes, Jacques a book, Jérôme an item of furniture, etc. The human labor, taken as a whole, will thus continue to be encouraged up to a level of 150 million; this sum will provide the same number of hats as before, plus all the other satisfactions corresponding to the 50 million that the machine will have saved. These satisfactions are the net product that France would have gained from the invention. This is a free gift, a tribute that man's genius has imposed on nature. We do not deny that, during the transformation, a certain mass of labor will have been displaced, but we cannot agree that it has been destroyed or even diminished.
This is also true for imports. Let us return to the hypothesis.
France manufactured 10 million hats at a cost price of 15 francs. Foreigners invaded our market, supplying us with hats at 10 francs. I say that domestic labor will not be decreased in the slightest.
For it will have to produce up to 100 million to pay for 10 million hats at 10 francs.
And then each purchaser will have 5 francs left that he has saved on each hat, or a total of 50 million that he will pay for other pleasures, that is to say, for other things produced by labor.
Therefore the total amount of labor will remain the same as it was and the additional pleasures, representing the 50 million saved on the hats, will be the net profit from the imports or from free trade.
And people must not try to terrify us with the picture of the suffering that, according to this reasoning, will accompany the displacement of labor.
For if protectionism had never occurred, labor would have rearranged itself in line with the laws of trade and no displacement would have taken place.144
If, on the other hand, protectionism has led to an artificial and unproductive structure of labor, it would be this, and not freedom, that is responsible for the inevitable displacement in the transition from bad to good.
Unless it is claimed that, because an abuse cannot be destroyed without upsetting those who benefit from it, its existence for just a moment ensures that it will last forever.
Endnotes140 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 another reference to smashing machines (Luddism) in ES3 XXII "Disastrous Illusions" below pp. ??? See the glossary entry on "Luddites."
141 Auguste Saint-Chamans (1777-1860) 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."
142 Bastiat is referring to Saint-Chamans's Du système d'impôt (1820).
143 Bastiat is here stating in a more round about way what later he would come to call the "seen" and the "unseen" which he was to develop more explicitly in a pamphlet in July 1850: What is Seen and What is not Seen, or Political Economy in One Lesson, below pp. ???.
144 (Paillottet's note) See chapter XIV of the second series of Sophisms [see this volumme, "Something Else," pp. 000–00] and chapter VI of the Economic Harmonies (OC, vol. 6, chap. 6, p. 185, "Richesse").
XXI. Raw Materials [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Matières premières" (Raw Materials) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 105-15.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
It is said: "The most profitable of all trades is the one in which manufactured goods are exchanged for raw materials. For the raw materials supply domestic labor."
And from this the following conclusion is drawn:
That the best customs law would be the one that did the most to facilitate the importation of raw materials and which would put the greatest number of obstacles in the path of goods which had undergone some level of manufacture.145
In political economy, there is no sophism so widespread as this one. It is the talk of not only the protectionist school but also and above all the allegedly liberal school, and this is a trying circumstance, for the worst thing for a good cause is not to be competently attacked but to be badly defended.
Commercial freedom will probably suffer the fate of all freedoms; it will be introduced into our laws only once it has gained possession of our minds. But if it is true that a reform has to be generally understood in order to be solidly established, it follows that nothing can delay it more than anything which misleads public opinion; and what is more likely to mislead it than articles that demand freedom by using the doctrines of monopoly to support them?
A few years ago, three large cities in France, Lyons, Bordeaux, and Le Havre, rose up against the protectionist regime.146 The country and the whole of Europe were moved at seeing what they took to be the flag of freedom being raised. Alas! It was still the flag of monopoly! A monopoly that was a little more sly and a lot more absurd than the one they seemed to want to overthrow. Thanks to the sophism which I will attempt to unveil, the petitioners did nothing more than reproduce the doctrine on the protection of domestic labor, while adding one more inconsistency to it.
What in fact is protectionism? Let us listen to M. de Saint-Cricq:147
"Labor constitutes the wealth of a people, since it alone creates the physical things that our needs call for, and universal prosperity consists in the abundance of such things." Such is the crux of the argument.
"But it is necessary for this abundance to be the product of the nation's activity. If it were the product of foreign activity, national output would come to a sudden stop." Here is the error. (See the preceding sophism.)148
"What therefore should an agricultural and manufacturing country do? Keep its market for the products of its own territory and industry." Here is the aim.
"And to do this, restrict through duties and prohibit if necessary the products of the territory and industry of other peoples." Here are the means.
Let us compare these arrangements with those of the petition from Bordeaux.
It divided goods into three classes.
"The first covers foodstuffs and raw materials that are devoid of any human labor. In principle, a wise economy would require this class to be exempt from taxes." Here, no labor, no protection.
"The second is made up of goods which have undergone some processing. This processing allows us to impose some duty on it." Here protection starts because, according to the petitioners, here begins domestic labor.
"The third covers finished goods which cannot be used in any way in domestic production; we consider these to be the most liable to taxes." Here labor, and protection with it, reach their peak.
As we can see, the petitioners claimed that foreign labor damages domestic labor. This is the error of the protectionist regime.
They demanded that the French market to be reserved for French labour; that is the aim of the protectionist regime.
They demanded that foreign labor be subject to restrictions and taxes. That is the means of the protectionist regime.
So what difference can we therefore discern between the petitioners from Bordeaux and the leader of the protectionist chorus?
Just one: the wider or narrower range of interpretation of the meaning of the word labor.
M. de Saint-Cricq extends it to everything. He therefore wants to protect everything.
"Labor constitutes the entire wealth of a nation," he says, "protecting agriculture, the entire agricultural sector, manufacturing, the entire manufacturing sector, this is the cry that will always echo around this Chamber."
The petitioners consider manufacturing alone as constituting labor; for this reason they accord only this sector the favor of protection.
"Raw materials are devoid of any human labor. In principle they should not be taxed. Manufactured goods can no longer be used for further productive activity in the domestic market; we consider them to be the most proper to be subject to taxes."
It is not a question here of examining whether protection for domestic labor is reasonable. M. de Saint-Cricq and the petitioners from Bordeaux agree on this point and we, as has been seen in previous chapters, differ from both in this respect.
The question is to know who is giving the proper meaning to the word labor, M. de Saint-Cricq or the petitioners from Bordeaux.
Well, on this terrain, it has to be said that M. de Saint-Cricq is right a thousand times, for the following is the dialogue that they might have with each other:
M. de Saint-Cricq: "You agree that domestic labor has to be protected. You agree that no foreign products can be introduced into our market without destroying an equal amount of our domestic production. The only thing is that you claim that there are a host of products that contain value, since they sell, and which are nevertheless devoid of any human labor. And you list, among other things, wheat, flour, meat, cattle, bacon, salt, iron, copper, lead, coal, wool, skins, seed, etc.
"If you prove to me that the value of these things is not due to labor, I will agree that they do not need to be protected.
"However, if I also demonstrate to you that there is as much labor involved in one hundred francs' worth of wool as in 100 francs' worth of cloth, you will have to admit that protection is due as much to the one as to the other.
"Now, why is this bag of wool worth 100 francs? Is it not because it is its cost price? And is its cost price anything other than what has to be paid in wages, earnings, and the costs of manpower, labor, and interest to all the laborers and capital providers who contributed to producing the object?"
The Petitioners: "It is true that you might be right with regard to wool. But is a sack of wheat, an ingot of iron, or a quintal of coal the product of labor? Is it not nature that has created them?"
M. de Saint-Cricq: "There is no doubt that nature has created the elements of all these things, but it is labor that has created their value. I myself was mistaken when I said that labor creates physical objects, and this flawed expression has led me into many other errors. It is not in man's power to create and to make something out of nothing, any more for manufacturers than for farmers; if by production we meant creation, all of our projects would be nonproductive and yours, as traders, more so than all the others, except perhaps for mine.
"A farmer, therefore, cannot claim to have created wheat, but he can claim to have created its value, by this I mean to have transformed into wheat, through his own labor and that of his servants, cow herders and harvesters, substances which did not resemble it in the slightest. In addition, what do the millers do who convert it into flour, or the bakers who bake it into bread?
"In order for men to be able to clothe themselves in woolen cloth, a host of operations is necessary. Before any human labor intervenes, the genuine raw materials of this product are air, water, heat, gaslight, and the salts that have to go to making it up. There are the raw materials that are genuinely devoid of any human labor, since they have no value and I do not envisage protecting them. However, an initial act of labor converts these substances into fodder, a second into wool, a third into yarn, a fourth into cloth, and a fifth into garments. Who would dare to say that everything in this operation is not labor, from the first cut of the plough that starts it to the last stitch that terminates it?
"And because, for greater speed and perfection in the accomplishment of the final operation, a garment, the labor is divided among several classes of industrious workers,149 do you want to establish, through arbitrary distinction, that the order of carrying out of this labor is the sole basis for their importance, so that the first does not even merit the appellation of labor and the last, labor par excellence, is the only one worthy of the favors of protection?"
The Petitioners: "Yes, we are beginning to see that wheat, is not, any more than wool, altogether devoid of any human labor, but at least the farmer has not, like the manufacturer, done everything himself or with the assistance of his laborers; nature has helped him and if there is labor, everything in wheat is not labor"
M. de Saint-Cricq: "But all its value is labor. I agree that nature has contributed to the physical forming of the grain. I even agree that this is exclusively its own work, but you must admit that I have forced it to do so through my labor, and when I sell you wheat, you have to note this clearly, I am not making you pay for the labor of nature but for mine.
"And, in your opinion, manufactured goods would not be the products of labor either. Are manufacturers not assisted by nature as well? Do they not use the weight of the atmosphere through their steam engines just as I use its humidity when plowing? Have they created the laws of gravity, the transmission of force or the nature of chemical bonding?"
The Petitioners: "Very well, we agree for wool, but coal is certainly the work and the sole work of nature. It is truly devoid of any human labor."
M. de Saint-Cricq: "Yes, nature has made coal but labor has created its value. Coal had no value for millions of years when it was buried and unknown one hundred feet underground. Men had to go to look for it: that is labor. It had to be taken to market: that is another form of labor and once again, the price you pay for it in the market is nothing other than payment for these jobs of extraction and transport."150
We can see that up to now M. de Saint-Cricq has won the argument; that the value of raw materials, like that of manufactured materials, represents the cost of production, that is to say, of the labor; that it is not possible to imagine an object that has value and that is devoid of any human labor; that the distinction made by the petitioners is futile in theory and that, as the basis of an unequal distribution of political favors it would be iniquitous in practice, since its result would be that one-third of French citizens who labor in factories would obtain the advantages of monopoly because they produce things through labor, while the other two-thirds, that is to say, the farming population, would be abandoned to face competition on the pretext that they produce things without laboring.
I am sure that people will insist and say that there is a greater advantage for a nation to import so-called raw materials, whether or not they are the product of labor, and export manufactured goods.
This is an opinion that is widely held.
"The more raw materials are abundant," says the petition from Bordeaux, "the more factories will increase in number and flourish vigorously."
"Raw materials", it says elsewhere, "leave a limitless scope for the work of the inhabitants of those countries into which they are imported."
"As raw materials," says the petition from Le Havre, "are the raw elements of labor, they have to be subjected to a different regime and imported immediately at the lowest customs rate."
This same petition wants protection for manufactured goods to be reduced not immediately, but after an undetermined period and not at the lowest rate, but at 20 percent.
"Among other articles whose low price and abundance are a necessity," says the petition from Lyons, "manufacturers include all raw materials."
All this is based on an illusion.
We have seen that all value represents labor. Now, it is very true that the process of manufacturing multiplies by ten or sometimes a hundred the value of a raw product, that is to say, it spreads out ten or a hundred times more income around the nation. This being so, the reasoning goes as follows: the production of a quintal151 of iron earns only 15 francs for all categories of contributors. The conversion of this quintal of iron into watch springs raises their various incomes to 10,000 francs and would you dare to say that it is not of more interest to the nation to ensure itself 10,000 francs' worth of labor than 15 francs' worth?
People forget that international trade does not function by weight or measure, any more than individual exchanges. You do not trade one quintal of iron for one quintal of watch springs, nor a pound of still greasy wool for a pound of cashmere wool, but a certain value of one of these things for an equal value of another. Well, to exchange equal value for equal value is to exchange equal labor for equal labor. It is therefore not true that a nation that gives 100 francs' worth of cloth or springs makes more than one that delivers 100 francs' worth of wool or iron.
In a country in which no law can be voted, no taxation imposed without the consent of those who are to be governed by this law or subjected to it, the public can be robbed only by being misled in the first place. Our ignorance is the raw material of any extortion that is exercised over us and we can be certain in advance that any sophism is the herald of plunder. Good people, when you see a sophism in a petition, put your hand over your pocket for it is certainly that which is being aimed at.
Shall we not therefore look at the secret thought that the ship owners of Bordeaux and Le Havre and the manufacturers of Lyons are hiding in this distinction between agricultural goods and manufactured goods?
"It is mainly in this first class (the one that includes raw materials, devoid of any human labor) that we find the principal maintenance of our merchant navy, say the petitioners of Bordeaux. In principle, a wise economy would require this class not to be taxed. . . . The second (goods which have undergone some processing) may be taxed. The third (goods which require no further modification) we consider to be the most taxable."
The petitioners from Le Havre say, "Considering that it is essential to reduce the tax on raw materials immediately to the lowest rate so that manufacturing industry may successively put to work the naval forces that provide it with its primary and essential means of the employment of its labor. . . ."
The manufacturers could not be any less polite to the ship owners. For this reason, the petition from Lyons requested the free entry of raw materials "to prove," as it said, "that the interests of manufacturing towns are not always in opposition to those of those on the coast."
No, but it has to be said that both, understood as the petitioners understand them, are totally opposed to the interests of the countryside, agriculture, and consumers.
This, sirs, is what you wanted to say! This is the aim of your subtle economic distinctions! You want the law to prevent finished goods from crossing the ocean in order for the much more expensive transport of raw and dirty materials, including a lot of waste, to provide more cargo for your merchant navy and put your shipping to greater use. This is what you call a wise economy.
What! Why do you not also ask for Russian pines to be shipped with their branches, bark, and roots? For Mexican gold in its mineral state and leather from Buenos Aires still attached to the bones of stinking carcasses?
Soon, I expect, railway shareholders, however small their majority in the Chambers, will pass a law forbidding the production in Cognac of the brandy drunk in Paris. Would not to decree by law the transport of ten casks of wine for one cask of brandy provide the essential income for their labor to manufacturers in Paris and at the same time set the powers of our locomotives into action?
For how long more will people close their eyes to such a simple truth?
The purpose of manufacturing, of shipping, and of labor is the general good, the public good. Creating industries that serve no purpose, encouraging superfluous transport and supporting unnecessary labor, not for the public good but at public expense, is to achieve a genuine contradiction in terms.152 It is not labor that is intrinsically desirable but consumption. Any labor that yields no output represents a loss. To pay sailors to carry useless refuse across the sea is as though they were being paid to make pebbles skim across the surface of the water.153 We therefore come to the conclusion that all economic sophisms, in spite of their infinite variety, have this in common: they confuse the means with the end and develop one at the expense of the other.154
Endnotes145 This was in fact the purpose of the revision of French tariff policy which took place in the first years of the French Revolution with the law of August 1791. Most prohibitions on imported goods were abolished, tariffs were abolished on the primary products used by French manufacturers and food stuffs for consumers, and tariffs on foreign manufactured were lowered to 20-25% by value. See the glossary entry on "French Tariff Policy."
146 This took place in 1834 and Bastiat commented on their Petition in a local newspaper. See "Réflexions sur les pétitions de Bordeaux, Le Havre, et Lyon concernant les Douanes"). ["Reflections on the Petitions from Bordeaux, Le Havre, and Lyons Relating to the Customs Service" in The Collected Works of Frédéric Bastiat, in the volume titled "The Law," "The State," and Other Political Writings, 1843–1850, pp. 1–9.
147 Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854) was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, and then Minister of Trade and Colonies (1828-29). See the glossary entry on "Saint Cricq."
148 (Note by Paillottet. See this volume, "Human Labor, Domestic Labor," pp. 000–00.)
149 Here Bastiat uses the term coined by Charles Dunoyer, "industrieux" in the phrase "plusieurs classes d'industrieux" which we have translated as "several classes of industrious workers". See the glossary entry on "Industry."
150 (Bastiat's note) I do not explicitly mention the part of the payment that relates to the entrepreneur, the capital provider, etc., for several reasons: 1. Because if you look closely, you will see that this is always payment for advances or labor done previously; 2. Because, under the general term of labor, I include not only the wages of the worker but legitimate payment for all cooperation in the work of production; 3. Lastly and above all, because the production of manufactured goods is, just like that of raw materials, subject to interest and payments other than those for manual labor, and that the objection, which is futile in itself, would apply to the most ingenious spinning factory as much or even more than to the crudest form of agriculture.
151 The term "quintal" comes from the Latin and is a unit of measurement with 100 units. In the Old Regime this meant a quintal was 100 "livres" (or pounds). After the metrification introduced by the French Revolution a quintal came to mean 100 kilograms.
152 The term Bastiat uses is "une pétition de principe" (or in Latin "petitio principii") which is a philosophical expression to describe a type of logical fallacy. It means a "contradiction in terms" or "begging the question."
153 The phrase Bastiat uses is "pour faire ricocher des cailloux sur la surface de l'eau" which is an interesting early use of the term "ricochet" which Bastiat was to develop more fully later. Here he is referring to wasted labour not the flow on effects caused by economic activity. See the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
154 (Paillottet's note) See the short article dated 1834 titled "Reflections on the Petitions from Bordeaux, Le Havre," etc. in the first volume (OC, vol. 1, p. 231, "Réflexions sur les pétitions de Bordeaux, Le Havre, et Lyon concernant les Douanes"). ["Reflections on the Petitions from Bordeaux, Le Havre, and Lyons Relating to the Customs Service" also appears in The Collected Works of Frédéric Bastiat, in the volume titled "The Law," "The State," and Other Political Writings, 1843–1850, pp. 000–00.]
XXII. Metaphors [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Métaphores" (Metaphors) [no date given] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 115-19.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
Sometimes sophisms expand and penetrate the entire fabric of a long and heavy theory. More often they contract, reduce in size, and become a principle, entirely hidden in one word.
God preserve us, Paul-Louis155 said, from cunning men and metaphors! And in fact, it would be difficult to say which of the two causes the most harm to our planet. It is the devil, you say; he puts in all of us, such as we are, the spirit of plunder in our hearts. Yes, but he leaves the repression of abuses completely up to the resistance of those that suffer from them. It is sophism that paralyses this resistance. The sword that malice places in the hands of attackers would be powerless if sophism did not shatter the shield on the arms of those under attack and Malebranche156 was right in inscribing the following sentence on the frontispiece of his book: Error is the cause of human misery.157
And look at what happens. Ambitious hypocrites have a sinister interest,158 for example, in sowing the seed of national hatred in the mind. This disastrous seed may develop and lead to general conflagration, cause civilization to stop, spill torrents of blood, and draw down the most terrible of all scourges on the country, invasion. In any case, before these events occur, these feelings of hatred diminish us in the eyes of other nations and reduce those people in France who have retained some vestige of a love of justice to blush for their country. These are certainly great evils, and in order for the public to be protected against the intrigues of those who want it to run the risk of such events, it would be enough for them to have a clear view of the matter. How does it happen that that this clear view is clouded? Through metaphor. The meaning of three or four words is altered, strained, and degraded and this says it all.
Take the word invasion itself.
A French ironmaster says: "May we be preserved from an invasion of iron from England." An English landlord exclaims: "Let us reject the invasion of wheat from France!" And they propose that the barriers between the two peoples be raised. Barriers constitute isolation, isolation leads to hatred, hatred to war and war to invasion. "What does it matter?" say the two sophists, "is it not better to be exposed to the risk of invasion than to accept certain invasion?" And the people believe them and the barriers remain.
And yet, what analogy is there between an exchange and an invasion? What similarity can be established between a warship which comes to vomit shells, fire, and devastation on our towns and a merchant ship that comes to offer us the opportunity of exchanging goods for other goods freely and voluntarily?
I would say the same for the word flood. This word normally has a negative meaning because the common characteristics of floods are to ravage fields and crops. If nevertheless they leave greater value on the land than they remove, as do the floods of the Nile, we ought to bless and deify them, following the example of the Egyptians. Well then, before railing against the floods of foreign goods, before erecting obstructive and costly obstacles in their path, do people ask themselves whether these are floods that ravage or those that fertilize? What would we think of Mehemet Ali159 if, instead of raising dams across the Nile at huge expense to extend the range of its floods, he spent his piastres digging a deeper bed for it so that Egypt would no longer be soiled by this foreign silt brought down from the Mountains of the Moon?160 We are showing precisely this degree of wisdom and reason when, with the support of millions, we wish to preserve our country . . . from what? From the benefits with which nature has endowed other climates.
Among the metaphors that conceal an entire and disastrous theory, there are none more commonly used than the one that uses the words tribute, tributary.
These words have become so commonplace that they have become synonyms of purchase and purchaser and the two sets of words are now used indiscriminately in place of one another.
However, there is as much distance between a tribute and a purchase as between a theft and an exchange, and I would as much like to hear it said that Cartouche161 had broken into my strong box and purchased a thousand écus, than to hear it said repeatedly to our deputies: "We have paid the tribute to Germany for a thousand horses that it has sold to us."
For what makes the action of Cartouche not a purchase is that he has not placed in my strong box, with my consent, an equivalent value to the one he has taken.
And what makes the payment of 500,000 francs that we have made to Germany not a tribute, is exactly because it has not received this money for no return but because it has delivered to us in exchange one thousand horses that we ourselves estimated were worth our 500,000 francs.
Should we therefore in all seriousness bring up such abuses of language again? Why not, since they are very seriously bandied about in both journals and books?
And let us not imagine that they slip out from a few writers whose ignorance extends to their use of language! For every one who refrains from this, I will quote you ten who indulge in it and who belong to the upper classes as well, such as Argout,162 Dupin,163 Villèle,164 and assorted peers, deputies, ministers, that is to say all men whose word is the law and whose most shocking sophisms are used as the basis for the country's administration.
A famous modern philosopher165 has added to the categories of Aristotle the sophism that consists in begging the question within a single word. He quotes several examples. He might have added the word tributary to his list. In effect, it is a question of knowing whether purchases made abroad are useful or harmful. They are harmful, you say. Why so? Because they make us tributaries of foreigners. This is certainly a word that begs the question under discussion.
How has this misleading trope slipped into the monopolists' rhetoric?
Écus leave the country to satisfy the rapacity of a victorious enemy. Other écus also leave the country to pay for goods. The analogy between the two cases is established, taking account only of the circumstance that causes their resemblance and disregarding the one by which they differ.
Nevertheless this circumstance, that is to say the non-reimbursement in the first case and the freely agreed reimbursement in the second, establishes between them a difference so great that it is actually not possible to classify them in the same category. To hand over 100 francs as a result of force to someone who has his hands around your neck or voluntarily to someone who is giving you the object of your desires are truly things that cannot be compared. It would be as true to say that throwing bread into the river is the same as eating it since the bread is in both cases destroyed. The fallacy of this reasoning, like that which is encompassed in the word tribute, would consist in establishing full similarity between two cases through their points of resemblance and disregarding what makes them differ.
Endnotes155 Paul-Louis Courier de Méré (1773-1825) was a French artillery officer, translator of Greek literature, and liberal and anti-clerical polemicist during the Restoration. In 1819-1820 he wrote a series of letters to the liberal journal Le Censeur européen (edited by Charles Comte and Charles Dunoyer) in which he chastised the liberals for not taking as much interest in the violation of the rights of ordinary peasants and farmers. See the glossary on Courier de Méré." Bastiat quotes from Courier's Pamphlet des pamphlets (1824), p. 8. The complete quote is: "God, I say to myself in a low voice, God, deliver us from the devil and figurative language! Doctors plan to kill me by wanting to cool [or refresh] my blood; the latter cripple me with the fear of writing with a poison pen; others let their fields lie fallow, and we have a shortage of wheat in the marketplace. Jesus, my Saviour, save us from metaphors." [Dieu, dis-je moi-même tout bas, Dieu, délivre-nous du malin et du langage figuré! Les médecins m'ont pensé tuer, voulant me rafraîchir le sang; celui-ci m'emprisonne de peur que je n'écrive du poison; d'autres laissent reposer leur champ, et nous manquons de blé au marché. Jésus, mon Sauveur, sauvez-nous de la métaphore."
156 Malebranche, Nicolas de (1638-1715). Malebranche was a Paris based theologian and Cartesian philosopher who wrote De la Recherche de la vérité (1674-75).
157 From Malebranche's "On the Senses," in Recherche de la Vérité, p. 1. "L'erreur est la cause de la misère des hommes; c'est le mauvais principe qui a produit le mal dans le monde; c'est elle qui a fait naître et qui entretient dans notre âme tous les maux qui nous affligent, et nous ne devons point espérer de bonheur solide et veritable qu'en travaillant sérieusement à l'éviter." (Error is the cause of mankind's miseries. It is wrong principles which have produced harm in the world. It has given birth and kept in our hearts all the harm which afflicts us. We ought not hope for solid and true happiness unless we seriously work to avoid it.)
158 The phrase "sinister interest" was often used by Jeremy Bentham to criticize the ruling elites who controlled British politics. Bastiat may well have been familiar with Bentham's theory of the ruling elites as he was familiar with his writings and used two quotations from Bentham as the opening quotes for both Series I and Series II of the Economic Sophisms. This is a typical example: "Under a government which has for its main object the sacrifice of the greatest happiness of the greatest number, to the sinister interest of the ruling one and the sub-ruling few, corruption and delusion to the greatest extent possible, are necessary to that object: waste, in so far as conducive to the increase of the corruption and delusion fund, a subordinate or co-ordinate object: war, were it only as a means and pretence for such waste, another object never out of view: that object, together with those others, invariably pursued, in so far as the contributions capable of being extracted from contributors, involuntary or voluntary, in the shape of taxes, or in the shape of loans, i. e. annuities paid by government by means of further taxes, can be obtained:—under such a government, by every penny paid into the Treasury, the means of diminishing the happiness of the greatest number receive increase;—by every penny which is prevented from taking that pernicious course, the diminution of that general happiness is so far prevented." From Principles of Judicial Procedure, With the Outlines of a Procedure Code, in The Works of Jeremy Bentham, published under the Superintendence of his Executor, John Bowring (Edinburgh: William Tait, 1838-1843). 11 vols. Vol. 2. CHAPTER XXIV.: SPECIAL JURIES. </title/1921/113753/2341232>.
159 Mehemet Ali (1769-1848) was an adventurer of Albanian origins who became pasha (or viceroy) of Egypt in 1804. He attempted to introduce many economic reforms inspired by European practices. See the glossary entry on "Ali".
160 The Nile River has two main tributaries, the White Nile and the Blue Nile. The White Nile has its origin in Lake Victoria in Uganda; the Blue Nile has its origin in Lake Tana in Ethiopia. Ancient geographers thought that the "Mountains of the Moon," located in east-central Africa, were the origins of the Nile River.
161 Cartouche, Louis Dominque (1693-1721). Cartouche was a notorious Parisian thief and outlaw who had the reputation of someone like Robin Hood for the English or Jesse James for the Americans.
162 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. See the glossary on "d'Argout."
163 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."
164 Jean-Baptiste, comte de Villèle (1773-1854) was the leader of the ultra-legitimists during the Restoration. He was minister of finance in 1821 and prime minister from 1822 until his resignation in 1828. He was instrumental in getting passed in 1825 an Indemnification Law for nobles who had been dispossessed during the Revolution, and a Law of Sacrilege for affronts to the Church.
165 Bastiat might have had in mind the work by the German philosopher Immanuel Kant (1724-1804) Fundamental Principles of the Metaphysics of Morals (1785) where there is a discussion of "petitio principii" (begging the question). See the text on the Online Library of Liberty </title/360/61777/641525>.
Conclusion (final draft)↩
Publishing history- Original title, place and date of publication: "Conclusion" (Conclusion) [dated "Mugron, 2 November, 1845"] [1st published in book].
- Published as book or pamphlet: ES1 1st French edition 1846.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 5th ed., pp. 119-26.
- Previous translation: 1st English ed. 1846, 1st American ed. 1848, FEE ed. 1964. See "Note on the Publishing History."
All the sophisms that I have combated up to now relate to a single matter, the protectionist system; even so, out of pity for the reader, I have left out some of the best:166 acquired rights, inconveniences, depletion of the currency, etc., etc.
But social economy is not limited to this narrow circle. Fourierist doctrine, Saint-Simonian doctrine,167 communism, mysticism, sentimentalism, bogus philanthropy, affected aspirations to illusionary equality and fraternity, questions relating to luxury, to wages, to machines, to the alleged tyranny of capital, to colonies, markets, conquests, population, association, emigration, taxes and loans: these have cluttered the field of science with a host of parasitic arguments, sophisms that call for the hoe and harrow of a diligent economist.
It is not that I do not acknowledge the flaw in this plan or rather the lack of a plan. To attack one by one so many incoherent sophisms that sometimes clash and most often are included in one another, is to condemn oneself to a disorganized and capricious struggle and to expose oneself to perpetual repetition.
How I would prefer to say quite simply what things are, without having to pay attention to a thousand aspects through which ignorance sees them! To present the laws according to which societies prosper or decline is virtually to destroy all sophisms at a stroke. When Laplace168 described what we are able to know of the movements of the heavenly bodies up to now, he dissipated without even mentioning them by name, all the astrological musings of the Egyptians, the Greeks, and the Hindus with greater surety than he could have done if he had refuted them directly in countless volumes. Truth is unitary; the book that provides an exposition of it is an imposing and durable edifice.
It defies greedy tyrants
bolder than the Pyramids
and more durable than brass.169
Error is multifarious and ephemeral by nature; the work that combats it does not carry within itself any principle signifying grandeur and longevity.
But if I have lacked the force and perhaps the opportunity170 to proceed in the same way as people such as Laplace and Say,171 I cannot help believing that the form I have adopted also has its modest uses.172 Above all, it seems to me to be well proportioned to the needs of the century and the fleeting moments it is able to devote to study.
A treatise doubtless has clear superiority but only on one condition, that it is to be read, reflected upon, and deepened. It addresses an elite audience only. Its mission is initially to set and then expand the circle of knowledge acquired.
The refutation of commonly held prejudices cannot have this elevated range. It aspires only to clear the way for the march of truth, to prepare men's minds, redirect the public moral sense, and destroy dangerous weapons in impure hands.
It is above all in social economy that this constant struggle and these constantly reborn battles with popular error have genuine practical use.
The sciences can be divided into two categories.
Strictly speaking, the first can be known only by scholars. These are the ones whose application occupies some specialists. Ordinary people receive the fruit of these in spite of their ignorance; although they do not know about mechanics and astronomy, they still enjoy the use of a watch, they are still transported by locomotives or steamboats given their faith in engineers or pilots. We walk in accordance with the laws of equilibrium without knowing them, just as M. Jourdain173 spoke prose without knowing it.
But there are also sciences that exercise on the public an influence only in proportion to the enlightenment of the public itself, which draw their entire effectiveness not from the accumulated knowledge in a few exceptional heads but from the knowledge disseminated among the general public. They include morals, hygiene, social economy and, in those countries in which men are their own masters, politics. It is of these sciences that Bentham might have said in particular: "What broadcasts them is more valuable than what advances them."174 What does it matter that a great man, a God even, has promulgated the moral law, as long as men, imbued with false notions, take virtues for vices and vices for virtues? What does it matter if Smith,175 Say,176 and according to M. de Saint-Chamans,177 the economists of all schools proclaim, with reference to commercial transactions that freedom is superior to coercion, if those who make the laws and for whom laws are made are convinced of the contrary?
These sciences, which have been appropriately named social, also have the particular characteristic that for the very reason that they are in common use, nobody admits to knowing nothing about them. Do we need to solve a question of chemistry or geometry? We do not pretend to be steeped in the science; we are not ashamed to call upon M. Thénard, we have no problem in opening Legendre or Bezout.178 However, in social sciences, we acknowledge scarcely any authorities. As each of us every day acts in accordance with good or bad morals, hygiene, economy, or reasonable or absurd politics, each of us feels able to find fault with, discuss, decide, and lay down the law on these matters. Are you ill? There is no old woman who will not tell you from the outset what the cause and remedy of your ailment is: "It is because your fluids are out of sort," she states, "you must be purged".179 But what are these fluids? And are there such things? This is something she does not trouble herself about. I involuntarily think of this dear old woman when I hear all the social ills being explained by these banal statements: It is the overabundance of products; it is the tyranny of capital; it is too many producers and other idiocies of which it cannot even be said verba et voces, praetereaque nihil,180 for they are just so many disastrous errors.
Two things result from what has gone before: 1. That the social sciences, more than the others, have to abound in sophisms because they are the ones in which everyone consults only his own judgment or instincts; 2. That it is in these sciences that sophism is particularly damaging because it misleads public opinion on a subject in which public opinion constitutes power and, is taken as law.
Two sorts of books are therefore needed for these sciences; those that expound them and those that propagate them, those that reveal the truth and those that combat error.
It seems to me that the inherent defect in the aesthetic form of this pamphlet, repetition, is what constitutes its principal usefulness.
In the subject I have discussed, each sophism doubtless has its own formula and range but all have a common root, which is the overlooking of men's interests as consumers. To show that this sophism is the originator of a thousand paths of error181 is to teach the general public to recognize it, understand it, and mistrust it in all circumstances.
After all, my intention is not exactly to lay the ground for deeply held convictions but to sow the seeds of doubt.
My hope is that when the reader puts the book down he will not exclaim, "I know"; please heaven, but that he might sincerely say , "I do not know!"
"I don't know, because I am beginning to fear that there might be something illusory in the alleged mild effects of scarcity." (Sophism I.)
"I am no longer so convinced of the supposed charms of obstacles to economic activity. (Sophism II.)
"The effort which produces no result seems no longer to me to be as desirable as the result which requires no effort. (Sophism III)
"It could well be that the secret of commerce, unlike that of combat (according to the definition given by the fencing instructor in Le Bourgeois gentilhomme182), does not consist in giving and not receiving. (Sophism VI.)
"I understand that a good increases in value to the degree that it has been worked upon; but in an exchange, do two goods of equal value cease to be of equal value because one comes from a plough and the other from a Jacquard loom?183 (Sophism XXI.)
"I admit that I am beginning to find it strange that mankind might be improved by fetters or enriched by taxes; and frankly I would be relieved of a great burden and I would feel pure joy if it could be demonstrated to me, as the author of the Sophisms assures me, that there is no contradiction between well being and justice, between peace and liberty, between the expansion of labor and the progress of knowledge. (Sophisms XIV and XX.)
"Thus, without claiming to be satisfied with his arguments, which I don't know if I should call reasons or paradoxes, I will explore further the works of the masters of economic science."
Let us end this monograph on sophistry with a final and important thought:
The world is not sufficiently aware of the influence that sophistry exercises on it.
If I have to say what I think, when the right of the strongest was dethroned, sophistry handed empire to the right of the most subtle, and it would be difficult to say which of these two tyrants has been the most disastrous for the human race.
Men have an immoderate love for pleasure, influence, esteem, and power, in a word, for wealth.
And at the same time, they are driven by an immense urge to procure these things for themselves at the expense of others.
But these others, who are the general public, have no less an urge to keep what they have acquired, provided that they can and they know how to.
Plunder, which plays such a major role in the affairs of the world, has thus only two things which promote it: force and fraud 184, and two things which limit it: courage and enlightenment.
Force used for plunder forms the bedrock upon which the annals of human history rest.Retracing its history would be to reproduce almost entirely the history of every nation: the Assyrians, the Babylonians, the Medes, the Persians, the Egyptians, the Greeks, the Romans, the Goths, the Francs, the Huns, the Turks, the Arabs, the Mongols, and the Tartars, not to mention the Spanish in America, the English in India, the French in Africa, the Russians in Asia, etc., etc.
But at least in civilized nations, the men who produce the wealth have become sufficiently numerous and strong to defend it. Is this to say that they are no longer dispossessed? Not at all; they are just as dispossessed as ever and, what is more, they mutually dispossess each other.
Only, the thing which promotes it has changed; it is no longer by force but by fraud that public wealth can be seized.
In order to steal from the public it it first necessary to deceive them. To deceive them it is necessary to persuade them that they are being robbed for their own good; it is to make them accept imaginary services and often worse in exchange for their possessions. This gives rise to sophistry. Theocratic sophistry, economic sophistry, political sophistry and financial sophistry. Therefore, ever since force has been held in check, sophistry has been not only a source of harm, it has been the very essence of harm. It must in its turn be held in check. And to do this the public must become cleverer than the clever, just as it has become stronger than the strong.
Good public, it is this last thought in mind that I am addressing this first essay to you, although the preface has been strangely transposed and the dedication is somewhat belated. 185 186
Mugron, 2 November 1845
END OF THE FIRST PART
Endnotes166 The phrase "J'en passe, et des meilleurs" (I pass over some of the best) comes from Victror Hugo's play Hernani, or l'Honneur Castillian (1830). It is spoken by the Spanish grandee Don Ruy Gomez as he points out boastfully to Don Carlos some portraits of his illustrious ancestors. "Hernani" in Oeuvres complètes de Victor Hugo. Drame. III (Paris: Eugène Renduel, 1836), p. 127, Act III, scene VI. See he glossary entry on "Hugo."
167 See the glossary entries on "Fourier" and "Saint-Simon."
168 Pierre Simon, marquis de Laplace (1749–1827) was a French astronomer, physicist, and mathematician who greatly extended the development of mathematical astronomy and statistics. See the glossary entry on "Laplace."
169 Bastiat quotes an imitation of an ode by Horace by the French poet Pierre-Antoine LeBrun. It is found in a polyglot edition of the works of Horace published in 1834 with the verses in the original Latin with translations and "imitations" in French, Italian, Spanish, and German. In Ode XXX Horace declares that his poetry will outlast the ravages of the elements and of political tyrants. LeBrun's version of the verse: "Grace à la Muse qui m'inspire, / Il est fini ce monument / Que jamais ne pourront détruire / Le fer ni le flot écumant. / Le ciel même, armé de la foudre, / Ne saurait le réduire en poudre: / /Les siècles l'essaieraient en vain.
Il brave ces tyrans avides, / Plus hardi que les pyramides / Et plus durable que l'airain." From "Imitations en vers français. Ode XXX – Livre III," in Oeuvres complètes d'Horace, p. 229.
170 (Paillottet's note) We pointed out at the end of chapter IV [see this volume, "Equalizing the Conditions of Production," pp. 000–00] that it contains the obvious seed of doctrines developed in the Economic Harmonies. Here, the author shows his intention to write this last work at the first available opportunity.
171 It is not surprising that Bastiat would mention Jean-Baptiste Say (1767-1832) in this context of key works which have exposed commonly held falsehoods. Like Adam Smith (1723-90) before him whose Wealth of Nations (1776) debunked the sophisms of mercantilism, Say's Treatise of Political Economy (1st edition 1803, 3rd greatly revised edition of 1817) debunked the economic sophisms which had emerged during the French Revolution and Napoleon's Empire. The latter had a profound influence on the economists of Bastiat's generation. See the glossary entries on "Adam Smith" and "J.B. Say."
172 See David Hart's Introduction on the changing "form" Bastiat adopted for his economic sophisms. Bastiat had proven himself to be an insightful and witty economic journalist but he was conflicted over what form and style was best to use in appealing to the broader public between 1846 and 1848 when the first two "Series" of the Economic Harmonies were published. He could write more serious even technical articles or he was equally capable of writing very clever and amusing satires. He was stung by a review of the 1st Series (published early 1846) which accused him of being too dry and dull in his form, so he increased the number of the more amusing and light-hearted pieces in the 2nd Series (early 1848 before the February Revolution). Then when the Revolution broke out he decided that matters had become so serious that it was now inappropriate for puns, jokes, and satire and that his critique of socialism and interventionism required much more blunt and hard-hitting language.
173 In Le Bourgeois gentilhomme (The Would-Be Gentleman) (1670) by J. B. P. Molière (1622–1673), Act II, scene VI, the Instructor of Philosophy is instructing M. Jourdain on how to behave like a gentleman. Jourdain wants to woo a woman of higher social status than he is and wants to be able to write her a letter. When asked by the Philosopher if he wants to write verse or prose M. Jourdain gets confused because he doesn't know the difference between the two. He is told told that everyday speech is a form of prose and Jourdain is astonished that for 40 years he had been speaking prose without knowing it. Oeuvres complètes de Molière, avec les notes de tous les commentateurs. Édition publiée par L. Aimé-Martin. Tome septième (Paris: Lefèvre, 1826), pp. 138-40. See the glossary entry on "Molière."
174 The quotation comes from Bentham, Théorie des peines et des recompenses, ed. É. Dumont, chap. 3, "De la diffusion des sciences," p. 249. See the glossary entry on Bentham."
175 Adam Smith (1723-1790) was a leading figure in the Scottish Enlightenment and one of the founders of modern economic thought with his work The Wealth of Nations (1776). An important French edition of the Wealth of Nations was published by Guillaumin with notes and commentary by leading French economists such as Blanqui, Garnier, Sismondi, and Say and appeared in 1843. See the glossary entry on "Smith."
176 Jean-Baptiste Say (1767-1832) was the leading French political economist in the first third of the nineteenth century. He had the first chair in political economy at the Collège de France. Say is best known for his Traité d'économie politique (1803) and the Cours complet d'économie politique pratique (1828-33). See the glossary on "J.B.Say."
177 Auguste Saint-Chamans (1777-1860) 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."
178 Louis Jacques Thénard (1777–1857) was a chemist who became a professor at the Collège de France in 1804, discovered hydrogen peroxide, and had a significant influence on the teaching of science in 19th century France; Adrien-Marie Legendre (1752-1833) was a mathematician who was elected to the Academy of Sciences in 1783 and is best known for his work on polynomials and the least squares method; Étienne Bezout (1730-1783) was a French mathematician who was elected to the Academy of Sciences in 1758 and is best known for his general theory of algebraic equations. See the glossary entries on "Thénard," "Legendre," and "Bezout."
179 One of Bastiat's cleverest sophisms ES2 IX "Theft by Subsidy" [below, pp. ???] includes a parody of Molière's parody about the primitive medical practices of the 17th century, including that of purging. In The Hypocondriac Molière creates a fictional oath of induction for new doctors in which they promise to "purge, bleed, stab" their patients to death. Bastiat does the same for tax collectors in which they pledge to "steal, plunder, filch" from all passers-by. See "Bastiat's Rhetoric of Liberty" in the Introduction, above, pp. ???
180 The Latin phrase "verba et voces, praetereaque nihil" (words and voices and nothing more) has been attributed to various authors such as Ovid and Quintilian but there is no firm evidence for their authorship. It is similiar to a line from Horace, Epistle I.i.34, which says "sunt verba et voces" (there are spells and sayings).
181 Here (circa November 1845) Bastiat argues that the "racine commune" (common root) for a thousand sophisms is to overlook men's interests as consumers." In 1847 when he wrote a brief draft of a chapter on Montaigne's essay "Le Profit d'un est dommage de l'autre" (One man's gain is another man's loss) he called this phrase the "classical example of a sophism, the root stock sophism from which comes multitudes of sophisms" (Sophisme type, sophisme souche, d'où sortent des multitudes de sophismes). See ES3 15 "One man's gain is another man's loss."
182 The "maître d'armes" (fencing instructor) instructs M. Jourdain in the two simple secrets for success in fencing: to give and not to receive thrusts of the sword and to deflect any thrust of the sword made at you away from the line of the body. See Le Bourgeois gentilhomme (The Would-Be Gentleman), Act II, Scene III. in Oeuvres complètes de Molière, avec les notes de tous les commentateurs. Édition publiée par L. Aimé-Martin. Tome septième (Paris: Lefèvre, 1826), p. 122. See the glossary entry on "Molière."
183 Joseph Marie Charles (Jacquard) (1752-1834) was a French weaver and inventor who was a pioneer in the development of the mechanical loom which revolutionized the production of woven cloth. His contribution in 1801, the Jacquard loom, built upon the work of others and depended upon the use of punched cards with holes which controlled the pattern woven into the cloth. It was one of the earliest examples of a programmable machine.
184 Bastiat uses the word "la ruse" (fraud or trickery) which is an important part of his theory of Plunder. See the glossary entry on "Plunder."
185 Here Bastiat seems to be suggesting that the Dedication he wrote for the volume (possibly what we have called "The Author's Introduction") was written last and in some haste, and that the Conclusion was meant to have been put at the beginning of the volume and thus should have been the Preface. These remarks suggest that the volume was edited and published in some haste at the end of 1845, perhaps without Bastiat's full editorial control.
186 (Paillottet's note) This thought, which ends the first series of the Sophisms, will be taken up again and developed by the author at the start of the second series. 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 (see in particular Property and Plunder and Plunder and Law) (OC, vol. 4, p. 394, "Propriété et spoliation"; and vol. 5, p. 1, "Spoliation et loi"), 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." ["Property and Plunder" and "Plunder and Law" also appear in The Collected Works of Frédéric Bastiat, in the volume titled "The Law," "The State," and Other Political Writings, 1843–1850, pp. 000–00 and pp. 000–00.]
T.39 (1845.12.15) "The English Free Trade League and the German League" (JDE, Dec., 1845)↩
SourceT.39 (1845.12.15) "The English Free Trade League and the German League" (La Ligue anglaise et la Ligue allemande. Réponse à la Presse), Journal des Économistes, Dec. 1845, T. 13, no. 49, pp. 83-85. [OC2.26, pp. 141-47.] [CW6]
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T.40 (1845.12.15) "A Question submitted to the General Councils of Agriculture, Manufactures, and Commerce" (JDE, Dec., 1845)↩
SourceT.40 (1845.12.15) "On the Questions submitted to the General Councils of Agriculture, Manufactures, and Commerce" (Sur les questions soumise aux conseils généraux de l'agriculture, des manufactures et du commerce), Journal des Économistes, Dec. 1845, T.13, no. 49, pp. 4-25. [OC1, pp. 392-405.] [CW6]
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Bastiat's Writings in 1846
T.41 (1846.??) "To M. de Larnac, Deputy of Les Landes, on Parliamentary Reform"↩
SourceT.41 (1846.??) "To M. de Larnac, Deputy of Les Landes, on Parliamentary Reform" (A M. de Larnac, député des Landes: De la réforme parlementaire). [OC1, pp. 480-506.] [CW1.2.2.3, p. 367-86.]
TextSir,
You have considered it appropriate to circulate a letter which I had the honor of sending you and your reply to it. I do not reproach you for this. No doubt you assumed that at the elections we would meet in opposing camps, and if my letter revealed to you a man who professed mistaken and dangerous opinions, you had the right to warn the general public. I allow that you took this decision with this sole preoccupation with the general interest in mind. Perhaps it would have been more fitting to choose between absolute silence and total publicity. You have preferred something that is neither of [368] these, pompous yet hard to pin down scandalmongering about a letter of which I have not kept a copy and whose terms, consequently, I cannot explain nor defend. So be it. I have not the slightest doubt about the accuracy of the copyist responsible for reproducing it and that is enough for me.
However, sir, is this enough to achieve your aim, which is doubtless to enlighten the beliefs of the electors? My letter relates to a particular fact, followed by a political doctrine. I have scarcely touched on this fact, and this is simply explained, since I was addressing someone who was aware of the full circumstances. I sketched the doctrine as one can do in letter form. This is not enough detail for the general public, and since you have involved them in this matter, allow me to address them in my turn.
I find it too distasteful to introduce actual names into this debate to underline particular facts. Only the need to defend myself personally could make me decide to do this and I hasten to come to the major political question which is the subject of your letter, the conflicts of interest of a legislative mandate with work in the civil service.
I make it clear at the outset, I am not actually asking for civil servants to be excluded from the House; they are citizens and should be able to enjoy the rights of citizenship, but they should be admitted to it only as citizens and not as civil servants. If they wish to serve the nation over which the law reigns, they cannot be the executors of the law. If they wish to represent the general public which pays the government, they cannot be the salaried agents of that government. I consider that their presence in the Chamber be subordinated to a measure which I will indicate later; and I unhesitatingly add that, in my eyes at least, there are many more disadvantages in admitting them to the Chamber unconditionally than to excluding them unremittingly.
“Your thesis is truly immense (you say); if I were dealing a priori with the question of conflicts of interest, I would begin by castigating this tendency to suspiciousness, one which appears very illiberal to me.”
But sir, what is the body of our laws if not a series of precautionary measures against the dangerous tendencies of the human heart? What is the constitution? What are all these checks and balances and the counterbalancing of powers if not a system of barriers to possible and even fatal encroachments in the absence of any restraint? What is religion itself, at least in one of its essential aspects, if not a source of grace intended by Providence to remedy native and therefore foreseen weakness in our nature? If you would remove from our symbols, charters, and law codes all that which has been [369] placed there by what you call suspicion and I call prudence, you would make the task of legislators very easy, but make the fate of men quite precarious. If you believe man to be infallible, burn the laws and charters. If you consider him to be fallible, in that case, when it is a matter of conflicts of interest or even a particular law, the question is not to know whether it is founded on suspicion but whether that suspicion is an impartial, reasonable, enlightened one, in other words on a prediction unfortunately justified by the indelible infirmity of men’s hearts.
This reproach made to suspicious tendencies has so often been directed against anyone who petitions for parliamentary reform that I feel obliged to repel it with some insistence. When we are very young and have just escaped from the atmosphere of Greece and Rome, where the university compels us to absorb our initial impressions, it is true that the love of liberty is too often mistaken in us with impatience in the face of any rules, of any government, and consequently with a puerile aversion to public office and civil servants. For my part, age and reflection have totally cured me of this aberration. I acknowledge that, except in instances of abuse, whether in public or private life, each person provides society with similar services. In one case, he satisfies the need for food and clothing, in another the need for order and security. I therefore do not take up arms against public office or suspect any civil servant individually. I have esteem for very many of them and I am a civil servant myself,24 although one of very modest rank. If others have pleaded the cause of conflicts of interest under the influence of a narrow and bitter jealousy or of an alarmist version of democracy, I can pursue the same goal without associating myself with these sentiments. Of course, without exceeding the boundaries of reasonable caution, it is permissible to take account of man’s passions or rather the nature of things.
However, sir, although public office and private industry have in common that both render similar services to society, it cannot be denied that they differ in one circumstance which it is essential to note. Each person is free to accept or refuse the services of private industry and receive them insofar as they suit him and to discuss their price. On the other hand, anything that concerns public office is regulated in advance by law and removed from our free will. It prescribes for us the quantity and quality we have to consume (pardon this rather too technical language) as well as the remuneration that [370] will be attached. For this reason, it would seem that it is up to those for whom and at whose expense this type of service is established to approve at least the law which determines its particular purpose, its scope, and the salaries involved. If the field of hairdressing were regulated by law, if we left to wig makers the job of making the law, it is likely (and I would not at all wish to ruffle the feelings of wig makers, nor to display a tendency to illiberal suspiciousness but simply to base my reasoning on the knowledge we have of the human heart), it is likely, I repeat, that we would soon be inordinately well groomed, indeed to the point of tyranny and the emptying of our purses. In the same way, when the electors have laws passed which regulate the provision of public safety and the salaries thereby entailed, or those of any other governmental product, by civil servants who earn their living from this work, it would seem to me to be indisputable that these electors run the risk of being administered and taxed beyond all reasonable measure.
Obsessed by the idea that we are prey to illiberal suspiciousness, you add: “In periods of intolerance, we would have said to candidates, ‘You must not be either a Protestant or a Jew’; these days, we say, ‘Do not be a civil servant.’ ”
In that case we would have been absurd, whereas now we are being rational. Jews, Protestants, and Catholics, regulated by the same laws and paying the same taxes, are voted for by us as equals. How can a religious creed be a motive justifying exclusion for anyone among us? However, with regard to those who apply the law and earn a living from taxation, the prohibition against voting for them is not at all arbitrary. Administrative authority itself acts in accordance with this principle and thus demonstrates that it is common sense. M. Lacave-Laplagne does not have the accounts audited by the accountants. It is not him personally, it is the very nature of these two orders of functions that causes conflicts of interest. Would you not find it laughable for the minister to base it on religious creed, the length of the nose, or the color of hair? The analogy you offer is of this nature.
“I think that you need very serious, patently clear, and proven reasons for asking that an exception should be made of someone. In general, this idea is bad and retrograde.”
Do you mean to satirize the Charter? It lays down that anyone who does not pay five hundred francs of taxes should be excluded on the simple conjecture that anyone who is not rich is not independent. Am I not aligning myself with its spirit when, since I have only one vote to allocate and am obliged to reject all the candidates except for one, I include among those I [371] reject one who perhaps has financial resources but who, since he has gained them from the minister, seems to me to be more dependent than if he had none?
“I am in favor of the progressive adage sunt favores ampliandi, sunt odia restringenda.”25
Sunt favores ampliandi! Ah, sir, I very much fear that under this dispensation there are too many people. Be that as it may, I ask whether deputation has been created for the deputies or for the general public? If it is for the general public, show me how they benefit by delegating civil servants. I can well see that this tends to expand the budget, but not without restricting the resources of taxpayers.
Sunt odia restringenda! Useless functions and expenditure, these are the odia that need to be restricted. Tell me how, therefore, we can expect this of those who carry out the first and gobble up the second?
In any case, there is one point on which we agree. This is on the extension of electoral rights.26 Unless you classify these among the odia restringenda, you have to include them in the number of the favores ampliandi, and your generous aphorism tells us that electoral reform can count on you.
“I have confidence in the workings of our institutions (in particular, I dare say, in the one which is the subject of this correspondence). I believe it to be conducive to the production of morality. This condition of society lies essentially in the electors; it is summed up in its representatives, it passes through the votes of majorities, etc.”
This is certainly a most touching picture, and I like this morality which rises from the base to the summit of the edifice. I could trace a less optimistic picture and show the political immorality that descends from the summit to the base. Which of the two would be more true to life? What! The disorderly placement of the voting and execution of laws and the voting and control of the budget in the same hands produces morality? Logically, I have difficulty understanding this. Evidentially, I have even greater difficulty.
You invoke the adage Quid leges sine moribus?27 I am doing nothing else. I have not called the law to account but the electors. I have uttered the hope [372] that they will get themselves represented by deputies whose interests are in harmony with and not in opposition to theirs. This is very much a matter of mores. The law does not forbid us to elect civil servants but it does not oblige us to do so either. I do not hide the fact that it would seem to me to be reasonable for it to contain a few precautions in this respect. In the meantime, let us take them ourselves: Quid leges sine moribus?
I said, “Whether right or wrong, it is a deep-seated idea of mine that deputies are the controllers of power.”
You jeered at the words whether right or wrong. So be it. I give way to you on this. Let us substitute this sentence: I may be mistaken, but I have the conviction that deputies are the controllers of power.
“What power?” you ask. Obviously executive power. You say: “I acknowledge only three powers: the king, the Chamber of Peers, and the Chamber of Deputies.”
If we return to abstract principles, I will be forced to differ in opinion from you, as I fundamentally acknowledge only one power: national power. All the others are delegated, and it is because executive power is delegated that the nation has the right to control it. And it is in order that this control is not derisory that the nation, in my humble opinion, would be wise not to place in the same hands both power and control. Assuredly it is free to do so. It is free to draw down on itself, as it does, various impediments and taxes. In this it seems to me unwise and even less wise to complain about the result. You think that I hold a serious grudge against the government; not at all, I admire it and find it very generous, when the general public is so obliging, to limit itself to a budget of 1.4 to 1.5 billion. For the last thirty years taxes have scarcely doubled. This is something to be surprised at and it should be acknowledged that the avidity of the taxman has remained well below the rashness of the taxpayers.
You find the following thought vague: “The mission of deputies is to delineate the arena in which power should be exercised.” “This arena,” you say, “is clearly delineated; it is the Charter.”
I have to say that, in the Charter, I do not know of a single clause which relates to the question. It must clearly be the case that we do not understand each other, so I will endeavor to explain my thoughts.
A nation may be more or less subject to government. In France and under the dispensation of the Charter, there are a multitude of services which may leave the scope of private industry and be entrusted to public authority and vice versa. In past times, spirited arguments were held to find out in which [373] of these two modes of activity the railway system would remain. Even more heated is the question concerning to which of these two education should belong. One day, perhaps, the same doubts will arise with regard to religions. There are countries, such as the United States, in which the state does not interfere and they are all the better for this. Elsewhere, in Russia or Turkey, for example, the contrary system has prevailed. In the British Isles, as soon as the conflict over freedom of trade is settled in favor of the latter, another conflict is in the offing in favor of the voluntary system in religious matters or the disestablishment of the established church. I mentioned freedom of trade; in our country, the government has made itself, through variations in tariffs, the regulator of industry. Sometimes it favors agriculture over manufacturing and sometimes manufacturing over agriculture, and it has even the singular pretension to make all the sectors of production prosper at the expense of each other. It is exclusively the government that operates the carrying of mail, the handling of snuff and tobacco, etc., etc.
There is therefore a division to be made between private activity and collective or governmental activity. On the one hand, many people are inclined to increase the attributions of the state indefinitely. The most eccentric visionaries, such as Fourier, come together on this point with the most practical of the men of state, such as M. Thiers. According to these powerful geniuses, the state must, under their supreme management, naturally, be the great administrator of justice, the great pontiff, the great teacher, the great engineer, the great industrialist, and the people’s great benefactor. On the other hand, many sound minds espouse the opposite view; there are even those who go so far as to want the government to be limited to its essential functions, which are to guarantee the security of people and property, to prevent and repress violence and disorder, to ensure for all the free exercise of their faculties and the proper reward for their efforts. It is already not without some danger, they say, that the nation entrusts to a hierarchically organized body the redoubtable responsibility for the police force. This is indeed necessary, but at least the nation should refrain from giving this body more jurisdiction over moral, intellectual, or economic life, if it does not wish to be reduced to the status of so much property or of a mere thing.
And it is for this reason that there is a Charter. And it is for this reason that in this Charter there is Article 15: “All tax laws must be first passed by the Chamber of Deputies.” For, note this well, every invasion by public authority into the field of private activity implies a tax. If the government claims that it will take over education, it will need paid teachers and therefore [374] a tax. If it aspires to subjecting our moral life to some religion or other, it will need clergy and therefore a tax. If it has to operate the railways and canals, it will need capital and therefore a tax. If it has to make conquests in Africa and Oceania, it will need armies, a navy, and therefore a tax. If it has to weight the profits of various industries through the action of tariffs, it will need a customs service and therefore a tax. If it is responsible for providing work and bread for all, it will need taxes and even more taxes.
However, for the very reason that, according to our national law, the nation is not the property of its government and that it is for the nation and not the government that religion, education, industry, the railways, etc., exist, it is up to the nation, not the government, to decide which services should be entrusted to or removed from government. Article 15 of the Charter gives the nation the means to do this. It just needs to refuse a tax to acquire liberty by this very action.
But if it abandons to the state and its agents, to executive power and its instruments, the task of establishing this great divide between the fields of collective and private industry, if in addition it delivers Article 15 of the Charter to it, is it not likely that the nation will shortly afterward be administered to death, that an indefinite number of functions will be created to substitute forced service for voluntary service in each sector and also the taxes to finance these functions? And is it possible to perceive any end to this series of encroachments and taxes which are mutually necessary, for, without wishing to attack individuals nor exaggerate man’s dangerous leanings, can we not state that it is in the nature of any constituted and organized body to try to expand and absorb all forms of influence, power, and wealth?
Well, sir, the meaning of the sentence you found vague is this: when the nation nominates deputies, part of the mission it gives them is to circumscribe the government’s sphere of action, to establish the limits which this action must not exceed and to remove from it any means of taking over the liberties the nation intends to retain, through a perspicacious use of Article 15 of the Charter. It will inevitably fail in this objective if it abandons this restrictive power to the very people in whom there resides the force for expansion that needs to be contained and restricted. May you, sir, not find the commentary less clear than the text.
Finally, there is in my letter another sentence which must lead me into lengthy explanation, since it appears to have shocked you particularly and it is this:
[375]“From the moment the deputies have the possibility of becoming ministers, it is a simple fact that those who are ambitious seek to carve themselves out a route to the minister’s position through systematic opposition.”
Here, sir, I am no longer blaming those who occupy office, but, on the contrary, those who seek it; not civil servants but clearly those who wish to supplant them. I hope that in your eyes this will be irrefutable proof that I am not imbued with any bitter jealousy of a particular individual or class.
Up to now, I have dealt with the question of the eligibility of civil servants to become deputies and, adopting the taxpayers’ point of view, I have tried to prove that they could scarcely (to use the expressions you quote with such insistence) hand over control to those being controlled without risking both their wealth and liberty.
The passage I have just quoted leads me to discuss the eligibility of deputies for public office and envisage the relationship of this wide-ranging question with government itself. In this way, the loop of the forms of conflicts of interest will come full circle.
Yes, sir, I regard the eligibility of deputies for public office, in particular in government, as essentially destructive of all effectiveness, stability, and consistency of governmental action. I do not think it possible to imagine a combination more adverse to the interests of the monarch and those who represent him or a pillow more lumpy for the king’s head or those of his ministers. Nothing in the world seems more likely to me to arouse the spirit of partisanship, fan the flames of factions, corrupt all the sources of information and publicity, distort the action of the tribune and press, mislead public opinion after having aroused it, hinder administration, foment national hatred, provoke external war, wear out and scorn those in government, discourage and corrupt those being governed, and, in a word, throw out of alignment all the springs of the representative system. As far as I am concerned, I know of no social plague that compares with this. Since this side of the question has never been discussed or even noticed by the partisans of parliamentary reform, as far as I know, since in all their draft laws, if Article 1 raises the principle of conflicts of interest, Article 2 swiftly creates exceptions in favor of governments and their ministries, embassies, and all of what are known as high political positions, I am obliged to develop my thoughts at some length.
Above all, I must reject your preemptively seeking to define my argument out of court. You state that my case contradicts the Charter. Not at all. The [376] Charter does not prohibit a conscientious deputy from refusing a portfolio or prudent electors from selecting candidates from those who renounce this illogical pluralism. If it is not farsighted, it does not prohibit us from being farsighted. That having been said, I continue:
One of the predecessors of the current prefect of the Landes did me the honor of paying me a visit. The elections were close and conversation turned naturally to conflicts of interest and in particular on deputies’ noneligibility for government office. Like you, the prefect was astonished that I dared to profess a doctrine which appeared to him, as to you, to be excessively rigid, impractical, etc.
I told him: “I think, sir, that you would do justice to the General Council of the Landes by acknowledging that you found a highly independent spirit there with no personal and systematic opposition. The measures you put forward are examined on their own merit. Each member votes for or against, depending on whether he considers them good or bad. Each person takes account of the general interest as he perceives it and perhaps local or personal interest, but there is no one who can be suspected of rejecting a useful proposal from you just because it comes from you.”
“Never,” said the prefect, “has the notion crossed my mind.”
“Well, let us imagine that a regulation in the following terms were to be introduced into the law governing these councils: ‘If a measure proposed by the prefect is rejected, he will be dismissed. The Council member who raised the opposition will be appointed as prefect and he will be able to distribute all the leading positions, such as general tax collection, the management of direct and indirect contributions, etc., in the département to his chance companions.’
“I ask you, is it not probable or even certain that such an article would completely change the spirit of the Council? Is it not certain that this Chamber, in which independence and impartiality currently reign, would be transformed into an arena of intrigue and faction? Is it not likely that ambition would be fueled in line with the sustenance offered it? And whatever good opinion you have of the virtue of Council members, do you think that they will avoid succumbing to this test? In any case, would it not be highly imprudent to attempt this dangerous experiment? Can we doubt that each of your proposals would become a battlefield of personal strife, that they would no longer be examined for their relevance to the public good but solely from the point of view of the opportunities they would create for the parties? [377] And now, you surely agree that there are newspapers in the département. It is clear that belligerent militants would not fail to attract them to their cause and their entire polemics would be infused with the passions engulfing the Council. And when election day arrives, corruption and intrigue, fanned by the flames of attack and defense, will know no limits.”
“I confess,” said the prefect to me, “that in such a state of affairs, I would not wish to retain my office, even for twenty-four hours.”
Well, sir, is not this fictional constitution of a general council which so frightened a prefect the genuine constitution of the Chamber? What difference is there? Just one. The arena is vaster, the theater higher, the battlefield wider, the feeding of passion more exciting, the prize for the combat more coveted, the questions used as the text or pretext for the combat more burning, more difficult, and therefore more apt to mislead the sentiments and judgment of the multitude. It is disorder organized on the same model but on a vaster scale.
Men have filled their minds with politics, that is to say, they have dreamed of grandeur, influence, wealth, and glory. Suddenly the winds of election blow them into the legislative enclosure, and what does the constitution of the country say to them? To one it says: “You are not rich. The minister needs to swell his ranks; all the positions are in his gift and none of them is forbidden to you by law. The decision is yours.” To a second it says: “You feel you have talent and daring. There is the ministerial bench. If you remove them, the place is yours. The decision is yours.” To a third: “Your soul is not up to this level of ambition but you promised your electors to oppose the government. However, there is still an avenue to the region of power open to you; here is a party leader, link your fortune to his.”
Then, invariably, this muddle of mutual accusations begins, these outrageous efforts to attract the power of transitory popularity to one’s side, this ostentatious display of unachievable principles when one is on the attack and abject concessions when one is on the defensive. These are just traps and countertraps, mines and countermines. You can see the most disparate elements forming alliances and the most natural alliances dissolving. People bargain, stipulate, sell, and buy. Here the party spirit enters into a coalition, there subterranean ministerial cunning causes another to fail. Any event that arises, even if it bears in its wake general conflagration, is always seized upon by the assailants if it offers ground on which the boarding ladders can rest. The public good or general interest is just words, pretexts, or means. The essential [378] point is to draw from a question the power which will help one party to overthrow the government and walk over the body. Ancona,28 Tahiti,29 Syria,30 Morocco,31 fortifications, or visiting rights are all good pretexts. All that is needed is the proper arrangements for putting them into practice. At this point we are drenched in the eternal stereotyped lamentations; internally, France is suffering, anxious, etc., etc.; externally, France is humiliated, scorned, etc., etc. Is this true, is it untrue? No notice is taken. Does this measure bring us into conflict with Europe? Does it oblige us to maintain five hundred thousand troops on constant alert? Will it stop the march of civilization? Will it create obstacles for future administrations? This is not what it is all about; just one thing is of interest, the fall and the triumph of two names.
And do not think that this sort of political perversity pervades only base souls in the Chamber, those hearts consumed by low ambition or the prosaic lovers of highly paid positions. No, it also and above all attacks elite souls, noble hearts, and powerful intellects. To quell and subdue them, it just has to awaken in the secret depths of their consciences, in place of the following trivial thought: You will achieve your dreams of wealth, another no less attractive: You will achieve your dreams of public good.
We have a remarkable example of this. There is not in France a man’s head on which as many accusations, verbal abuses, and flagrant insults have been heaped as on that of M. Guizot. If the language used by the parties contained bloodier epithets than turncoat, traitor, or apostate, they would not have been spared him. However, there is one reproach that I have never [379] heard formulated or even insinuated against him, that of having used parliamentary success to boost his personal wealth. I acknowledge that he pushes probity to the point of self-sacrifice. I accept that he will never seek personal triumph other than the better to ensure the triumph of his principles. This is, moreover, a form of ambition that he has formally admitted.
So, we have seen this austere philosopher and man of principle in opposition. What did he do there? Everything that might suggest a thirst for power. For example, he displayed democratic views that are not his own, he adopted a mantle of fierce patriotism of which he does not approve, he caused embarrassment to his country’s government, he contrived obstacles to the most important negotiations, he fomented coalitions, and he formed leagues with any individuals, even enemies of the throne, provided that they were enemies of some minister. Being out of office, he opposed matters he would have supported within office. He supported the direction of the batteries of Ancona against M. Molé, just as M. Thiers directs the batteries of Morocco against him. In short, he conjured up a ministerial crisis with all his determination and might and deliberately created for his own future government the difficulties that result from such precedents. That is what he did, and why? Because in the Charter there is an Article 46, a tempting serpent which told him:
“You will be equal to the gods; achieve power, by whatever route, and you will be the savior of the country!” And so the deputy, beguiled, made speeches, set out doctrines, and carried out acts which his conscience condemned, but he said to himself: “This is necessary to reach office; once I have reached it, I will adopt once more my genuine philosophy and true principles.”
Is there any need for further examples? My God, the history of the war for portfolios is the entire history of parliament.
I am not attacking anyone in particular; I am attacking the institution. If the prospect of power is offered to deputies, it is impossible for the Chamber to be other than a battlefield.
Let us see what is happening in England. In 1840 the government was on the point of bringing about free trade. However, there was one man in the opposition, imbued with the doctrines of Smith,32 a man who couldn’t sleep at the thought of Canning’s and Huskisson’s glory, who wished at all costs to be the instrument of this vast revolution. It was going to be accomplished [380] without him. What did he do? He declared himself the protector of protection. He aroused every shred of ignorance, prejudice, and egoism in the country. He rallied the terrified aristocracy and aroused the popular classes who were so easy to mislead. He combated his own principles in Parliament and on the hustings. He ousted the reforming government. He came to office with the express mission of closing the ports of Great Britain to foreign goods. As a result, a deluge of ills, unprecedented in the annals of history and which the Whigs had hoped to avert, swamped England. Production stopped; inactivity desolated both town and country, escorted by its two faithful satellites, crime and illness. Everyone with intellect or heart rose up against this frightful oppression and Mr. Peel, in betrayal of his party and the majority, came to Parliament to admit: “I made a mistake, I was wrong, I renounce protection and give my country free trade.” No, he was not mistaken. He was as much of an economist in 1840 as he was in 1846. But he wanted glory and for that he delayed the triumph of truth, through countless calamities, for six years.
There are therefore very few deputies whom the prospect of positions and portfolios does not cause to swerve from the line of rectitude in which their constituents hope to see them walk. It would not be so bad if the harm did not go beyond the walls of the Palais Bourbon! But, as you know, sir, the two armies who dispute power carry their battlefield outside. The warlike masses are everywhere; only the leaders are in the Chamber and it is from there that they issue orders. They are fully aware that, to reach the center of the fort, they have to conquer the outer works, the newspapers, popularity, public opinion, and electoral majorities. It is thus fatal for all these forces, to the extent that they enroll under the banner of one of the line commanders, to become imbued and permeated with the same insincerity. Journalism, from one end of France to the other, no longer discusses the measures; it pleads their cause and not from the point of view of whether they contain good or evil points in themselves but from the sole viewpoint of the help they can temporarily provide to one or the other leader. It is well known that there are few eminent journalists whose future will not be affected by the outcome of this portfolio war. What policy is the prime minister pursuing in Texas,33 Lebanon, Tahiti, Morocco, or Madagascar? It does not matter. [381] The progovernment press has a single motto, È sempre bene;34 while the opposition press espouses what the old woman in the satire had written on her petticoat for us to see: Argumentabor.35
It would need a more experienced pen than mine to recount all the harm done in France by the partisan press, who (mark my words, this is the core of my thesis) disseminate their views solely to serve a particular deputy who wants to become a minister. You have access to the king, sir, I don’t like to involve him in these discussions. However, I am able to say, since this is the opinion held by Europe, that he has contributed to maintaining world peace. But perhaps you have witnessed what sweat in the form of moral exertions is needed to wrench out of him this success worthy of the acclaim of nations. What is the reason for all this sweat, these problems, this resistance to such a noble task? Because at a given moment, peace was not supported by public opinion. And why was it not supported? Because it did not suit certain newspapers. And why did it not suit certain newspapers? Because it was unwelcome to a particular deputy. And why finally was it unwelcome to this deputy? Because peace was the policy of the ministers, and therefore war was necessarily that of those deputies who wished to become ministers. Indubitably, this is the root of the evil.
Shall I make mention of Ancona, the fortifications of Paris, Algiers, the events in 1840, visiting rights, tariffs, anglophobia, and so many other questions in which journalism led public opinion astray, not because it was itself led astray but because this was part of a coldly premeditated plan whose success was of importance to a particular ministerial alliance?
I prefer to quote here the admissions that were themselves proclaimed by journalism in the most widely distributed of its outlets, La Presse (17 November 1845).
“M. Petetin describes the press as he sees it, as he prefers to dream it. In all good faith does he believe that, when Le Constitutionnel, Le Siècle, etc., attack M. Guizot, when in turn Le Journal des débats confronts M. Thiers, these broadsheets are campaigning uniquely on philosophical grounds, for truth as provoked by the interior needs of conscience? To define the press in these terms is to paint it as one imagines it, not as it really is. It does not cost us anything to state this, since while we are journalists, we are less so by vocation than by circumstance. Every day we see newspapers in the service of [382] human passion, rival ambition, ministerial alliances, parliamentary intrigue, and political calculations of every hue, the most violently opposed and the least noble, and we see them closely involved in this. However, we rarely see them in the service of ideas, and when by chance a newspaper happens to espouse an idea, this is never on its own merits, it is always as a ministerial instrument with which to defend or attack. He who is penning these lines is speaking from experience. Every time he has attempted to draw journalism out of the rut of party politics and introduce it to the field of ideas and reforms, to the path of wholesome applications of economic science to public administration, he found himself alone and had to acknowledge that outside the narrow circle traced by the assembled letters of four or five names, there was no possibility of discussion. There was no policy. What good does it do to deny this evil? Does it stop it existing? When newspapers do not ally themselves with special interests, they ally themselves with passions and when these are themselves examined closely, in the majority of cases these passions are merely selfish interests. This is the truth of the matter.”
What, sir, are you not scandalized, not appalled by this terrible admission? Or do you still have some doubt as to the cause of a situation so fraught with humiliation and peril? It is not I who am speaking. It is not a misanthropist, a republican, or a seditionist. It is the press itself that has unveiled its secret and is telling you to what depths this institution whose morality inspires such confidence in you has reduced it. The place where laws are supposed to be debated has been transformed into a battlefield. The destiny of the country, war and peace, justice and iniquity, order and anarchy count for nothing, absolutely nothing in themselves; they are instruments of combat that are taken up and put down according to one’s own imperatives. What does it matter that at each turn of this impious struggle upheaval is experienced throughout the country? It has scarcely returned to calm when the armies change position and the combat is once more engaged with even more fervor.
Finally, do I have to demonstrate the existence of partisan spirit, this insidious worm, this devouring cancer which draws its life and strength from the eligibility of deputies for executive power, within the electoral college? I am not speaking here of opinions, passions, and political errors. I am not even speaking of the faintheartedness or venality of certain consciences; it is beyond the power of the law to make men perfect. I am targeting only the passions and vices which directly result from the cause I am discussing, which is linked to the portfolio war engaged in within the Chambers [383] and waged over the entire range of the newspapers. Is it really so difficult to calculate its effect on the electoral body? And when, day after day, the tribune and press make a point of preventing anything but false glimmers, false judgments, false quotations, and false assertions reaching the public, is it possible to have any confidence in the verdict pronounced by the grand national jury thus misled, circumvented, and impassioned? What is it called upon to judge? Its own interests. Never does anyone speak of these to it, for ministerial battle is waged at Ancona, Tahiti, in Syria, wherever the public is not to be found. And what does it know of what is going on in these far-off regions? Only what it is told by orators and writers who, on their own admission, do not utter a single word either orally or in writing that is not inspired by the intense desire for personal success.
And then, suppose I wished to raise the veil that covers not only the errors but the turpitudes of the electoral urn! Why does the elector ensure that his vote is so valued, require it to be sought, and consider it as a valuable object of commerce? Because he knows that this vote contains the fortune of the fortunate candidate who is soliciting it. Why, for his part, is the candidate so flexible, so crawling, so generous with his promises, and so little concerned with any shred of dignity? Because he has ulterior motives, because the position of deputy is a stepping-stone for him, because the constitution of the country enables him to see in the distance, should he succeed, intoxicating prospects, positions, honors, wealth, power, and this golden cloak which hides all shame and absolves all base acts.
So, where are we now with all this? Where are the electors now? How many of them dare to remain and show themselves to be honest? How many will honestly deposit a ballot in the urn which faithfully expresses their political beliefs? Oh! They would be afraid of being seen as idiots and dupes. They are careful to trumpet loudly the bargain they have made of their vote and they will be seen to deposit their own ignominy at the door of the church rather than to cast doubt on their deplorable cunning. If there are still a few virtues that have survived this major shipwreck, these are negative virtues. They believe nothing, hope for nothing, and keep themselves from being contaminated, in the words of some poet or another:
- A calm indifference
- is the surest of virtues.36
They let things happen, that is all. In the meantime, ministers, deputies, and candidates sink under the burden of promises and undertakings. And what is the result? This. The government and the Chamber change roles. “Do you wish to let me dispose of all jobs?” say the deputies. “Do you wish to let me decide on the laws and the budget?” reply the ministers. And each abandons the office for which he is responsible for one which does not concern him. I ask you, is this representative government?
But it does not stop there. There are other things in France than ministers, deputies, candidates, journalists, and electors. There is the general public, thirty million men who are being accustomed to being counted for nothing. They do not see this, you may say, and proof of this is their indifference. Ah, do not become confident in this seeming blindness. While they do not see the cause of the evil, they see its effects, the budget constantly increasing, their rights and titles trampled underfoot, and all favors becoming the price of electoral bargains from which they are excluded. Please God that they learn to link their suffering to its true cause, for irritation is growing in their hearts. They are seeking the means of enfranchising themselves and woe to the country if they make a mistake. They are seeking, and universal suffrage is taking hold of all minds. They are seeking, and communism is spreading like wildfire. They are seeking, and while you are drawing a veil over the hideous wound, who can count the errors, the theories, or illusions in which they think they have found a remedy for their ills and a brake against your injustices?
In this way, everyone is suffering from a state of affairs so profoundly illogical and vicious. However, if the full extent of the evil is appreciated somewhere, it must be at the summit of the social scale. I cannot believe that such statesmen as M. Guizot, M. Thiers, or M. Molé can be in contact with all these turpitudes for so long without having learned to recognize them and calculate their terrifying consequences. It is not possible for them to have been in turn in the ranks, facing systematic opposition, assailed by personal rivalry, and forced to struggle against artificial obstacles placed in their way by the urge to topple them, without saying to themselves that things would be different, administrative authority would be more steady, and the task of government much lighter if deputies could not become ministers.
Oh! If ministers were to deputies what prefects are to general councillors, if the law eliminated in the Chamber those prospects which foment ambition, I consider that a calm and fruitful destiny would be open to all the elements of the social body. The depositories of power might well still [385] encounter errors and passions but never these subversive alliances for which any means are permitted and whose only aspiration is to overthrow one cabinet after another with the support of a fallacious and transitory unpopularity. Deputies could not have interests other than those of their constituents. Electors would not be made to prostitute their votes to selfish views. The press, freed from any links with leaders of parties which would no longer exist, would fulfill its proper role of enlightening public opinion and providing it with a mouthpiece. The people, wisely administered with consistency and economy, and who are happy or who cannot hold the authorities responsible for their sufferings, would not let themselves be beguiled with the most dangerous utopias. Finally the king, whose thoughts would no longer be a mystery to anyone, would hear during his lifetime the judgment that history reserves for him.
I am not unaware, sir, of the objections that may be made to parliamentary reform. There are disadvantages to it. But, my goodness, everything has its disadvantages. The press, civil liberty juries, and the monarchy have theirs. The question is never to see whether a reformed institution has disadvantages, but whether that institution without reform does not have even greater ones. And what calamities might emanate from a Chamber of taxpayers that are not equal to those which are disseminated over the country by a Chamber of ambitious deputies who are fighting each other for the possession of power?
It is said that such a Chamber would be too democratic, driven by passions that are too popular. It would represent the nation. Is it in the nation’s interest to be badly administered, invaded by foreigners, such that justice is not rendered?
The strongest objection, unceasingly repeated, is that the Chamber would lack enlightenment and experience.
There is a lot to say on this subject, However, if the exclusion of civil servants gives rise to dangers, if it appears to violate the rights of honorable men who are also citizens, if it circumscribes the liberty of electors, would it not be possible, while opening the gates of the Palais Bourbon to the agents of government, to circumscribe their presence with precautions dictated by the most elementary prudence?
You are not expecting me to formulate a draft law at this point. However, I consider that public good sense would approve a measure drafted in terms of this sort:
“All French citizens, without distinction of profession, are eligible (except [386] for exceptional cases in which a high official position would imply direct influence on voting, such as that of prefect, etc.).
“All deputies would receive suitable, uniform remuneration.
“Elected civil servants would resign their functions for the period of their mandate. They would not receive payment. They may neither be dismissed nor promoted. In a word, their life in the administration would be totally suspended and start again only once their legislative mission has expired.
“No deputy may be called upon to fill a public position.”
Finally, far from admitting, as Messrs. Gauguier, Rumilly, Thiers, and others have done, that exceptions would be made on the principle of conflict of interest in favor of ministries, embassies, and all those functions known as political positions, it is exactly those that I wish to exclude, mercilessly and in the first place, since it is clear to me that it is the aspiring ambassadors and ministers who upset the world. Without wishing in the least to offend the leaders of parliamentary reform who put forward exceptions like these, I dare to say that they do not perceive or wish to perceive the millionth part of the evils that result from the eligibility of deputies for public office, that their so-called reform does not reform anything, and that it is just an underhand measure, one that is limited, with no social purchase, dictated by a narrow sentiment of base and unjust jealousy.
But, you say, what about Article 46 of the Charter? I have no answer to this. Is the Charter made for us or are we made for the Charter? Is the Charter the final expression of human wisdom? Is it a sacred Koran descended from heaven, whose effects may not be examined however disastrous they may be? Should we say: Let the country perish rather than change a comma in the Charter? If this is so, I have nothing to say, other than: Electors! The Charter does not forbid your using your vote for deplorable purposes, but it does not order you to do so either. Quid leges sine moribus?37
In ending this all too long letter, I should reply to what you tell me of your personal position. I will refrain from doing so. You consider that the reform, if it takes place, cannot affect you since you do not depend on responsible power but in fact on irresponsible power. Good for you! The legislature has decided that this position does not lead to legal incapacity. It is up to the electors to decide whether this does not constitute the clearest imaginable form of moral incapacity.
On 28 March 1831, Bastiat was appointed a justice of the peace of Mugron County.
“Favors ought to be extended; disagreeable things ought to be restricted.”
Reference to a proposed electoral reform intended to widen the electorate by lowering the required level of tax payment and admitting candidates exercising certain professions previously restricted.
“What are laws without customs?”
In order to stop disturbances in the papal states, Pope Gregory XVI called upon Austria for assistance. On 28 June 1832, Austrian troops entered Bologna, Italy. For reasons of diplomatic balance, a French garrison was sent to the seaport of Ancona, about 120 miles southeast of Bologna. The garrison remained in Ancona until 1838.
In 1842 Tahiti was a French protectorate. Following incidents with English ships, Admiral Dupetit-Thouars transformed it into a territory of “direct sovereignty.” This created tension between London and Paris. The latter disavowed the admiral on 24 February 1844.
France supported Mehmet Ali, pasha of Egypt, over Syria, part of the Ottoman Empire. England and Russia supported the sultan.
A brief conflict arose between France and Morocco in 1844 because Morocco refused to sign the Treaty of Tangiers, allowing cruisers of the signatory states to control merchant ships in order to ascertain the absence of 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 policing of the seas.
Adam Smith.
In 1844 the U.S. Congress accepted the entrance of Texas into the Union. The French and English governments had advised the Texas governor against it.
“It is always good.”
“I shall prove it.”
Source unknown.
See note 27, p. 371.
T.42 Economic Sophisms. Series I. Conclusion is dated "Mugron, 2 Nov., 1845". Published in Paris, by Guillaumin, in Jan. 1846.↩
SourceT.42 (1846.01) Sophismes économiques. Première série (Paris: Guillaumin, 1846) (Economic Sophisms. First Series) Published in Jan. 1846 from material written and published in 1845 (see above). [OC4, pp. 1-126.] [CW3 - ES1]
Text(insert HTML of file here)
T.43 (1846.01.15) "Theft by Subsidy" (JDE, Jan. 1846)↩
SourceT.43 (1846.01.15) "Theft by Subsidy" (Le vol à la prime), Journal des Économistes, Jan. 1846, T. XIII, no. 50, pp. 115-120; also ES2.9. [OC4, pp. 189-98.] [CW3 - ES2.9]
IX. Theft by Subsidy291 [January 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "Le vol à la prime" (Theft by Subsidy) [Journal des Économistes, January 1846, T. XIII, pp. 115-120].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 189-98.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
People find my small volume of Sophisms too theoretical, scientific and metaphysical. So be it. Let us try a mundane, banal and, if necessary, brutal style. Since I am convinced that the general public are easily taken in as far as protection is concerned, I wanted to prove it to them. They prefer to be shouted at. So let us shout:
Midas, King Midas has ass's ears!292
An explosion of plain speaking often has more effect than the politest circumlocutions. Do you remember Oronte and the difficulty that the Misanthropist293, as misanthropic as he is, has in convincing him of his folly?
Alceste: We risk playing the wrong character.
Oronte: Are you trying to tell me by that that I am wrong in wanting …
Alceste: I am not saying that, but …
Oronte: Do I write badly?
Alceste: I am not saying that, but in the end …
Oronte: But can I not know what there is in my sonnet …?
Alceste: Frankly it is fit to be flushed away.
Frankly, my good people, you are being robbed. That is plain speaking but at least it is clear.
The words, theft, to steal and thief seem to many people to be in bad taste.294 Echoing the words of Harpagon to Elise295, I ask them: Is it the word or the thing that makes you afraid?
"Whosoever has fraudulently taken something that does not belong to him is guilty of theft." (Penal Code, Article 379).
To steal: To take something furtively or by force (The Dictionary of the Academy).
Thief: A person who exacts more than is due to him. (Ditto)296
Well, is not a monopolist who, through a law he has drafted, obliges me to pay him 20 fr. for something I can buy elsewhere for 15, fraudulently taking away 5 fr. that belongs to me?
Is he not taking it furtively or by force?
Is he not exacting more than is due to him?
He withdraws, takes or exacts, people will say, but not furtively or by force, which is what characterizes theft.
When our tax forms show a charge of 5 fr. for the subsidy that is withdrawn, taken or exacted by the monopolist, what can be more furtive, since so few of us suspect it? And for those who are not taken in by it, what can be more forced, since at the first refusal we have the bailiffs at our heels?
Anyway let monopolists rest assured. Theft by subsidy or tariff does not violate the law, although it transgresses equity as much as highway robbery does; this type of theft, on the contrary is carried out by law. This makes it worse but does not lead to the magistrate's court.
Besides, whether we like it or not, we are all robbers and robbed in this connection. It is useless for the author of this volume to cry thief when he makes a purchase, the same could be shouted at him when he sells297; if he differs considerably from his fellow countrymen, it is only in this respect: he knows that he loses more than he gains in this game, and they do not know this; if they did, the game would cease in a very short time.
What is more, I do not boast that I am the first to give this situation its real name. More than sixty years ago, Smith said:298
"When businessmen get together, we can expect a conspiracy to be woven against the pockets of the general public."
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publick, or in some contrivance to raise prices."299 Should we be surprised at this, since the general public pays no attention to it?
Well then, an assembly of businessmen officially has discussions under the authority of the General Councils.300 What goes on there and what is decided upon?
Here is a highly abridged version of the minutes of a meeting.
A SHIP OWNER: Our fleet is on the ropes (aggressive interruption). This is not surprising because I cannot build without iron. I can certainly find it at 10 fr. on the world market but, according to the law, French ironmasters force me to pay them 15 fr.; therefore 5 fr. is being taken from me. I demand the freedom to buy wherever I like.
AN IRONMASTER: On the world market, I can find transport at 20 fr. By law, ship owners demand 30 for this; they are therefore taking 10 fr. from me. They are looting me, so I loot them, and everything is just fine.
A STATESMAN: The ship ship-owner's conclusion is very rash. Oh! Let us cultivate the touching unity which gives us our strength; if we remove one iota of the theory of protectionism, the entire theory will go by the board.
THE SHIP OWNER: But protection has failed us; I repeat that the fleet is on the ropes.
A SAILOR: Well then! Let us raise a surtax and let ship owners who take 30 from the public for freight take 40.
A MINISTER: The government will push the excellent device of the surtax to the limit, but I am afraid that it will not be enough.301.
A CIVIL SERVANT: You are all worrying about nothing. Does our salvation lie only in tariffs, and are you forgetting taxation? If consumers are generous, taxpayers are no less so. Let us burden them with taxes, and let ship owners be satisfied. I propose a subsidy of 5 fr. to be taken from public taxes to be handed over to builders for each quintal of iron they use.
Mixed cries: Hear! Hear! A farmer: Let me have a subsidy of 3 fr. per hectoliter of wheat! A weaver: Let me have a subsidy of 2 fr. per meter of cloth! etc. etc.
THE CHAIRMAN: This is what has been agreed. Our meeting has given birth to the system of subsidies and this will be its eternal gory. What industry will be able to make a loss in the future, since we have two very simple means of changing losses into profits: Tariffs and subsidies? The meeting is at an end."
Some supernatural vision must have shown me in a dream the next apparition of the subsidy (who knows even whether I had not put the thought into the mind of Mr. Dupin302) when I wrote the following words a few months ago:
"It seems obvious to me that protection, without changing either its nature and effects, might have taken the form of a direct tax levied by the State and distributed as indemnity subsidies to privileged industries."
And, after comparing protectionist duties with subsidies:
"I admit frankly my preference for the latter system. It seems to me to be more just, more economic and fairer. More just because if society wants to give handouts to a few of its members, everyone has to contribute; more economic because it would save a great deal of collection costs and would cause a great many obstructions to disappear and finally, fairer since the public would see clearly how the operation worked and what they were being made to do."303
Since the opportunity has so kindly been offered to us, let us examine theft by subsidy. What can be said of it applies just as well to theft by tariffs, and while theft by tariffs is slightly better disguised, direct filching304 will help us understand indirect filching. The mind moves forward in this way from the simple to the compound.
What then! Is there no type of theft that is simpler still? Oh, yes, there is highway robbery: all it needs is to be legalized, monopolized or, as we say nowadays, organized.305
Well, this is what I have read in a traveler's account306:
"When we arrived in the kingdom of A, all branches of production claimed to be in difficulty. Agriculture wailed, manufacturing complained, commerce grumbled, shipping groused and the government did not know whom to listen to. First of all, it thought of levying heavy taxes on all those who were discontented and handing out the product of these taxes to them after taking its share: that would have been a lottery, just as in our beloved Spain. There are a thousand of you, the State will take one piastre from each of you; it then subtly pilfers 250 piastres and distributes 750 in lots that vary in size between the players. Forgetting that he has given a whole piastre, the upright Hidalgo who receives three-quarters of a piastre, cannot contain his joy and runs off to spend his fifteen reals in the bar. This would have been similar to what is happening in France. Be that as it may, as barbarous as this country was, the government did not think that its inhabitants were stupid enough to accept such strange forms of protection, so it thought up the following scheme.
The country was criss-crossed with roads. The government measured them accurately and said to the farmers: "Everything that you can steal from passers-by between these two posts is yours; let it serve as a subsidy , protection and motivation for you." It then assigned to each manufacturer and ship owner a section of road to exploit in accordance with this formula:
Dono tibi et concedo 307 [I give to you and I grant]
Virtutem et puissantiam [virtue and power]
Volandi [to steal]
Pillandi [to plunder]
Derobandi [to filch]
Filoutandi [to swindle]
Et escroquandi [to defraud]
Impune per totam istam [At will, along this whole]
Viam [road] 308
"Well, it so happened that the natives of the kingdom of A. are now so familiar with this regime and so accustomed to take account only of what they steal and not of what is stolen from them, so essentially inclined to regarding pillage only from the point of view of the pillager, that they see the tally of all individual thefts as profits to the nation and refuse to abandon a system of protection outside of which, they say, there is no form of production capable of surviving."
Are you astounded? It is not possible, you say, that an entire nation should agree to see what the inhabitants steal from one another as an increase in wealth.
Why not? We are certainly convinced of this in France, and every day we organize and perfect here the mutual theft that goes under the name of subsidies and protective tariffs.
Even so, let us not exaggerate. Let us agree that viewed from the angle of the method of collection and taking account of the collateral circumstances, the system in the kingdom of A. might be worse than ours, but let us also say that as far as the principles and necessary effects are concerned, there is not an atom of difference between all these types of theft that are legally organized to provide additional profit to producers.
Note that if highway robbery has several disadvantages as to its execution, it also has advantages that are absent from theft by tariffs.
For example: with highway robbery, an equitable share can be given to all the producers. This is not so for customs duties. These by their very nature are powerless to protect certain sectors of society, such as artisans, merchants, men of letters, lawyers, soldiers, odd-job men, etc. etc.
It is true that theft by subsidy also provides opportunities for an infinite number of subdivisions, and from this angle it is no less perfect than highway robbery. On the other hand, however, it often leads to such strange, idiotic results that the native inhabitants of the kingdom of A. might very justifiably laugh at them.
What the person robbed loses in highway robbery is gained by the robber. At least the object stolen remains in the country. However, under the sway of theft by subsidy, what is taken from the French is often given to the Chinese, the Hottentots, the Kaffirs or the Algonquins, in the following way:
A piece of cloth is worth one hundred francs in Bordeaux. It is impossible to sell it below this price without making a loss. It is impossible to sell it for more because competition between merchants prevents this. In these circumstances, if a Frenchman comes forward to obtain this cloth, he has to pay one hundred francs or do without it. But if an Englishman comes along, then the government intervenes and says to the seller: "Sell your cloth and I will see that you are given twenty francs by the taxpayers. The merchant, who does not want nor is able to obtain more than one hundred francs for his cloth, hands it over to the Englishman for 80 francs. This sum, added to the 20 francs, produced from the theft by subsidy, makes his price exactly. It is exactly as though taxpayers had given 20 francs to the Englishman on condition that he buys French cloth at a discount of 20 francs, at 20 francs below production cost and 20 francs below what it costs us ourselves. Therefore, theft by subsidy has this particular characteristic, that those robbed are in the country that tolerates it and the robbers are spread out over the surface of the globe.
It is truly miraculous that the following proposition continues to be held as proven: Anything that an individual steals from the whole is a general profit. Perpetual motion, the philosopher's stone or the squaring of the circle have fallen into oblivion, but the theory of Advancement through theft is still in fashion. However, a priori, we might have thought that of all forms of childishness, this is the least viable.
There are some who tell us: "Are you then in favor of laissez passer?309 Economists of the outdated school of Smith and Say? Do you therefore not want work to be organized?"310 Well, Sirs, organize work as much as you like. We, for our part, will see that you do not organize theft.
A greater number repeat: "Subsidies and tariffs have all been used excessively. They have to be used without being abused. Wise freedom combined with a moderate form of protection is what is being claimed by serious and practical men.311 Let us beware of absolute principles.312
According to the Spanish traveler, this is precisely what was being said in the kingdom of A. "Highway robbery", said the wise men, " is neither good not bad; it all depends on the circumstances. It is just a question of weighting things correctly and paying us, the civil servants, for the work involved in this moderation. Perhaps too much latitude has been given to pillage and perhaps not enough. Let us look at, examine and weigh in the balance the accounts of each worker. To those who do not earn enough, we will give an extra length of road to exploit. To those who earn too much, we will reduce the hours, days or months of pillage."
Those who said these things acquired a great reputation for moderation, prudence and wisdom. They never failed to attain the highest positions in the State.
As for those who said: "Let us repress all injustices as well as the lesser forms of injustice. Let us not tolerate theft, half-theft or quarter-theft", these were taken for ideologues, boring dreamers always repeating the same thing. The people, in any case, find their reasoning too easy to understand. How can you believe what is so simple?
Endnotes291 (Paillottet's note) Taken from the issue of Le Journal des Economistes dated January 1846.
292 This might also be translated as "The Emperor has no clothes!" King Midas was ruler of the Greek kingdom of region Phrygia (in modern day Turkey) sometime on the 8th century BC. According to legend, after he had been granted the power to turn anything he touched into gold, he became disillusioned 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.
293 This is a scene, in highly truncated form, from Molière's play The Misanthrope (1666), Act I Scene II. Alceste is a misanthrope who is trying to tell Oronte, a foolish nobleman, that his verse is poorly written and worthless. After many attempts at avoiding the answer with circumlocutions Alceste finally says that "Franchement, il est bon à metre au cabinet" (frankly, it is only good to be thrown into the toilet). 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. 4 (Paris: Librairie des bibliophiles, 1882), p. 86. See the glossary entry on "Molière."
294 Bastiat uses a variety of words in his attempt to speak plainly and brutally in this chapter. Here is a list with our preferred translation for each: "dépouiller"(to dispossess), "spolier" (to plunder), "voler" (to steal), "piller" (to loot or pillage), "filouter" (filching); and variants such as "le vol de grand chemin" (highway robbery). See "Plain Speaking" in the "Note on the Translation" for details.
295 From Molière's play L'Avare (The Miser) (1668). The miserly moneylender, Harpagon, asks his daughter, Elise, who wishes to get away from the family by marrying Valère, whether she fears the fact of marriage or the word "marriage". She is more concerned about her father not taking into account their love for each other but only financial concerns. 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. 6 (Paris: Librairie des bibliophiles, 1892), Act I, Scene IV, p. 23. See the glossary entry on "Molière."
296 Bastiat provides an accurate but somewhat truncated definition from the 6th edition of 1835 of the Dictionnaire de l'Académie française. The full definition of "to steal" is "Prendre furtivement ou par force la chose d'autrui, pour se l'approprier" (to take furtively or by force something belonging to another in order to appropriate it for oneself); and of "thief", definition 1 "Celui, celle qui a volé, ou qui vole habituellement" (someone who has stolen or who steals habitually) (not quoted by Bastiat), or definition 2 "Celui qui exige plus qu'il ne devrait demander" (someone who demands more than he ought to demand). See Dictionnaire de l'Académie française (Paris: Didot frères, 1835. 6e édition). Online at The ARTFL Project. Dictionnaires d'autrefois. <https://portail.atilf.fr/dictionnaires/onelook.htm>.
297 (Bastiat's note) Since he owns some land, which provides him with a living, he belongs to the class of the protected. This circumstance should disarm critics. It shows that, where he uses harsh expressions, it is against the thing itself and not against people's intentions. [DMH - letter in vol. 1 where FB expresses doubt about justice of his family's land holdings???] [Letter to Paillottet, 11 october, 1850, OC vol. 1, p. 280.]
298 Adam Smith (1723-1790) was a leading figure in the Scottish Enlightenment and one of the founders of modern economic thought with his work The Wealth of Nations (1776). An important French edition of the Wealth of Nations was published by Guillaumin with notes and commentary by leading French economists such as Blanqui, Garnier, Sismondi, and Say and appeared in 1843. See the glossary entry on "Smith."
299 This is a colourful but not accurate translation by Bastiat of Smith's well-known comment about what people in the same business do when they get together: "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publick, or in some contrivance to raise prices." It comes from Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. I ed. R. H. Campbell and A. S. Skinner, vol. II of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1981). I.x.c., Part II: Inequalities occasioned by the Policy of Europe. </title/220/217407/2313110>. However, Smith on a couple of occasions did refer to governments taking money out of the pockets of taxpayers as the following quotation shows: "Those modes of taxation, by stamp–duties and by duties upon registration, are of very modern invention. In the course of little more than a century, however, stamp–duties have, in Europe, become almost universal, and duties upon registration extremely common. There is no art which one government sooner learns of another than that of draining money from the pockets of the people." From Wealth of Nations, V. ii. h, Appendix to articles i and ii: Taxes upon the Capital Value of Lands, Houses, and Stock. </title/200/217522/2316719>. This might be another example of Bastiat quoting from memory and conflating two different passages by Smith.
300 The General Councils for Commerce (1802), Manufacturing (1810), and Agriculture (1819) were set up within the Ministry of the Interior to bring together commercial, manufacturing, and agricultural elites to advise the government and to comment on legislation. Their membership came from either members of the chambers of commerce and industry or by appointment by the minister concerned. See the glossary entry on "General Councils."
301 (Bastiat's note) Here is the text: "I will again quote the customs laws dated 9th and 11th June last, whose object is in the main to encourage long-distance shipping by increasing the surtaxes attached to foreign flags on several articles. Our customs laws, as you know, are generally aimed at this object and gradually, the surtax of 10 francs, established by the law dated 28th April 1816 and often inadequate, is disappearing to give way to … more effective protection, which is in closer harmony with the relatively high cost of our shipping." This word disappearing is priceless. (The opening speech of Mr. Cunin-Gridaine, in the meeting on 15th December 1845). [DMH - We have not been able to find the source of this reference.] Laurent Cunin-Gridaine (1778-1859) was a very successful textile manufacturer who was Minister for Trade from 1840 to 1848 and a strong supporter of protection for the textile industry. See the glossary entry on "Cunin-Gridaine."
302 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."
303 (Bastiat's note) Chapter V of the first series of Economic Sophisms, pages 49 and 50.
304 Here Bastiat uses more of a slang word, "le filoutage" from the verb "filouter" (to filch, swipe, or rob). We translate it here as "filching".
305 Bastiat is referring to one of the commonly used socialist slogans of the mid-1840s, namely "organization" (the organization of labor advocated by Blanc) and "association" (cooperative living and working arrangements advocated by Fourier). See the glossary entry on "Association and Organization."
306 This is invented by Bastiat in order to display one of his cleverest parodies which is a parody of Molière's parody of 17th century doctors. See the glossary entry on "Molière."
307 This pseudo latin is partly made from French words. We provide a translation in brackets.
308 Bastiat is making a parody of Molière's parody of the granting of a degree of doctor of medicine in the last play he wrote Le malade imaginaire (The Imaginary Invalid, or the Hypocondriac) (1673). Molière had a very low opinion of the practice of 17th century medicine with its purges and use of leeches. The play ends with an elaborate dance of doctors and apothecaries (and would be doctors) in which a new doctor is inducted into the fraternity. Most of the dialog is in Latin, including the swearing in of the new doctor (Bachelierus) by Praeses who says: "Ego, cum isto boneto / Venerabili et doctor, / Don tibi et concedo / Virtutem et puissanciam / Medicandi, / Purgandi, / Seignandi, / Perçandi, / Taillandi, / Coupandi, / Et occidendi / Impune per total terram." This might be loosely translated as (thanks to Arthur Goddard's excellent translation in the FEE edition, p. 194): "I give and grant you / Power and authority to / Practice medicine, / Purge, / Bleed, / Stab, / Hack, / Slash, / and Kill / With impunity / Throughout the whole world." 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. See the glossary entry on "Molière."
309 This is the second half of the Physiocrats' policy advice to the government, "laissez-faire, laissez-passer" (let us be free to do what we will and to be free to go wherever we will) See the glossary entries on the "Physiocrats," "Laissez-faire," "Adam Smith," and "Jean-Baptiste Say."
310 The rallying cry of many socialists in the 1840s was that workers and factories be "organized" by the state and not be left to the uncertainties of the free market. See the glossary entry on "Association and Organization."
311 See also ES3 XI "The Specialists" below, pp. ???
312 See also ES1 XVIII "The are no Absolute Details" above, pp. ???
T.44 (1846.02.08) "Plan for an Anti-Protectionist League" (MB, Feb. 1846)↩
SourceT.44 (1846.02.08) "Plan for an Anti-Protectionist League" (Projet de ligue anti-protectionniste), Mémorial bordelais, 8 Feb. 1846. [OC7.6, pp. 30-33.] [CW6]
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T.45 (1846.02.09) "Plan for an Anti-Protectionist League. Second Article" (MB, Feb. 1846)↩
SourceT.45 (1846.02.09) "Plan for an Anti-Protectionist League. Second Article" (Projet de ligue anti-protectionniste. 2e article), Mémorial bordelais, 9 Feb. 1846. [OC7.7, pp. 34-38.] [CW6]
Text(insert HTML of file here)
T.46 (1846.02.10) "Plan for an Anti-Protectionist League. Third Article" (MB, Feb. 1846)↩
Sourceabc
TextT.46 (1846.02.10) "Plan for an Anti-Protectionist League. Third Article" (Projet de ligue anti-protectionniste. 3e article), Mémorial bordelais, 10 Feb. 1846. [OC7.8, pp. 38-42.] [CW6]
T.47 "Thoughts on Sharecropping" (15 Feb. 1846, JDE)↩
[CW4 draft 16 June, 2017] SourceT.47 (1846.02.15) "Thoughts on Sharecropping" (Considérations sur le métayage), JDE , T.13, no. 51, Feb. 1846, pp. 225-239. This article was not included in Paillottet's OC. [CW4]
Editor's IntroductionAfter Bastiat's first article "On the Influence of French and English Tariffs" appeared in the JDE in October 1844 he wrote many more for that journal before the Revolution of February 1848 broke out, and in the process changing the direction of his life. They consisted of several kinds of material, shorter, more popular pieces which would appear in the collection Economic Sophisms , short reports on various aspects of his free trade activity including summaries of his speeches, a few book reviews, as well as 7 more substantial articles on economic matters written primarily during 1845 and 1846 before he devoted himself almost entirely to his work with the French Free Trade Association and its magazine Le Libre-Échange . Two of them, "On Competition" and "On Population," would be substantially revised and rewritten and would appear in his treatise Economic Harmonies (1850, 1851). 437 These articles were the following:
- "The Economic Situation of Great Britain: Financial Reforms and Agitation for Commercial Freedom", JDE , (June 1845) (a shortened version of his Introduction to his book Cobden and the League , which will appear in CW6 (forthcoming)
- "On the Future of the Wine Trade between France and England", JDE , (Aug. 1845) (CW6 forthcoming)
- "On the Questions submitted to the General Councils of Agriculture, Manufactures, and Commerce", JDE , (Dec. 1845) (CW6 forthcoming)
- "Thoughts on Share Cropping", JDE , (Feb. 1846)
- "On Competition", JDE , (May 1846) (below, pp. 000)
- "On Population", JDE , (Oct. 1846) (below, pp. 000)
- "On the Impact of the Protectionist Regime on Agriculture", JDE , (Dec. 1846) (CW6 forthcoming)
- "Organisation and Liberty", JDE , (Jan. 1847) (CW6 forthcoming)
The essay on share-cropping came in the middle of this period. In it, Bastiat reflects on his activities as a landowner and farmer, his thoughts on the future of agriculture, how he unsuccessfully tried to reform the work practices of his métayeurs (sharecroppers), his preference for share-cropping over tenant farming, and an early version of his thoughts on issues which he would take up later in a different form, namely Malthusian population theory, the inherent conflict (or harmony) between labour and capital, and the nature of productive and unproductive labour, in particular landowners who rent their land to others. These latter reflections show how much his thinking would change over the coming 2 or 3 years.
There are several passages in this article which are autobiographical in nature. It is not clear exactly how much of his land he worked himself and how much was worked by sharecroppers but it seems he might have had 120-150 sharecroppers and their families working his land which totaled about 250 hectares in size altogether. In his paper "On the Bordeaux to Bayonne Railway Line" (19 May 1846) 438 he notes that "in former times" sharecropper farms were about 2-3 hectares in size and the vines they grew were enough to feed a family as well as other workers in the area. He says this comfortable existence was destroyed by protectionism during the Napoleonic period and the Restoration when wine exports to other parts of Europe were curtailed, as well as increases in indirect taxation on wine sold within France. He states that small farms were no longer economically viable and there were mergers to create farms 5-6 hectares in size which were viable, thus displacing some families. He also describes some of the hardships they faced:
In the village in which I live, thirty sharecropper houses have been demolished, according to the land register, and more than one hundred and fifty in the district whose legal interests have been entrusted to me, 439 and, mark this well, this means as many families that have been plunged into complete destruction. Their fate is to suffer, decline, and disappear. 440
Towards the end of the essay Bastiat's shows himself to have been rather paternalistic towards his sharecroppers. It says he took great care in choosing whom he would allow to work on his land (they had to both be good farmers as well as fit into the voluntary community of sharecroppers that he was fostering), that he would advise them about when was the right time to marry and to have children (which reveals his Malthusian concern about overpopulation of workers in the countryside), and he would take care to invite them all to communal meals on festivities like New Year's Day when his table might be "surrounded by one hundred and twenty heads of farming enterprises."
Concerning land use and ownership, in the first half of the 19th century over half the population of France worked on the land in some capacity. Small-scale famers who owned their own land were known as "laboureurs" or "cultivateurs" and were the most prosperous; larger landowners, especially in the north rented their land out to farmers who were called "fermiers" and the system it gave rise to as "fermage" (land rents); the poorest farmers were concentrated in the south where sharecropping predominated. "Métayers" (sharecroppers) did not own or rent their land but were entitled to a one half share in the final product. The land owner provided the capital, such as land, seed, cattle, and ploughs. The poorest of those who worked the land were the day labourers ("journaliers") who hired out their labour on a daily or seasonal basis. Mounier estimated in 1846 that 43 million hectares of land was under cultivation in France at that time which was divided as follows: 8.47 million hectares by renters (20% of the total area), 14.5m by sharecroppers (34%), and 20m by owners (46% area). 441
A significant problem for French farmers in the 19th century was the retention of farm size which would have enabled them to remain economically viable. The change in inheritance laws during the Revolution was designed to end the old regime practice of primogeniture (passing the entire estate to the eldest son) but it over-reacted by requiring an equal division among all the children, even if the farmer wanted to leave his land to one of his children in order to continue the family business. This gradually led to the problem of "morcellement" or the division of the land into smaller and smaller plots which hampered the growth of more productive agriculture. Bastiat's solution to this problem was to encourage the spread of sharecropping using a new system of agriculture which he called "alternating cultivation" (more details below). His younger friend and colleague Gustave de Molinari thought the solution to this problem was to encourage the formation of large-scale agricultural businesses ("la manufacture agricole" - an agricultural factory) which would be more efficient than small family owned farms, just like large industrial factories were more efficient than the small workshops of artisans (le petit atelier). 442 Molinari argues that industry of all kinds became more productive by replacing the small artisan workshop with large-scale factory production, and that the same thing would happen to agriculture.
Concerning agricultural practices, during the Middle Ages the three-field system of rotation was commonly used in Europe with a winter planting of rye or wheat, followed by a spring planting of oats or barley, and a third period in which the land was left fallow. This was replaced with a more productive four-field system in the 16th century where a soil replenishing crop like legumes was substituted for the fallow period, thus boosting total output. By carefully choosing the types of crops planted the farmer could support both agriculture and livestock on the land with a cash crop, a fodder crop, a grazing crop, and then a crop to replenish the soil. Bastiat's scheme of "alternating cultivation" was a more complex and flexible variation of the four field system of rotation which he thought was better because it would use a greater selection of crops which would allow for more regional and climatic variation, the choice of crops could be made with more regard to current market prices, and by using modern double entry book-keeping the farmer would become more entrepreneurial and scientific in their management of the farm business. The previous year Bastiat would have read Charles Dunoyer's thoughts on the advantages of alternating cultivation over the older triennial rotation system in Liberté du travail (1845), in which he discusses the benefits of this kind of farming for the more profit conscious "l'entrepreneur de culture" (the entrepreneur in the farming business). 443
It was in order to encourage the acquisition of these scientific and accounting skills that two years earlier Bastiat had written a proposal to a local religious Foundation asking for their support in founding a school for the sons of sharecroppers. 444 He had come to realise over the previous 20 years that changing the behaviour of the adult sharecroppers was impossible and that he had to train the younger generation in the possibilities of new agricultural techniques. This document shows that he had been thinking about a "revolution in farming" for some time and believed that his estate was "one of the most suited to major crop rotation in the country." 445 His idea was to use his estate as an experiment to show how the transition from small-scale to large-scale farming, based upon a more scientific system of multi-crop rotation, using modern bookkeeping techniques to manage the shifting economic demand for crops and their different costs of production and rates of return. He was appealing to a religious foundation for assistance in starting a school for potential future share-croppers to work on these new farms he was planning to establish. His hope was the younger generation of farmers, if he could entice them away from traditional farming practices, might make "this major farming and social revolution in our region" possible in the span of 50 years. This proposal led to nothing as far as we can tell.
There were also moral and political reasons why Bastiat preferred the system of share-cropping over other practices like tenant farming and agricultural wage labour. Somewhat out of character with his later thinking about the "harmonious" relationships which existed between economic groups in a free market, here Bastiat thinks that there tenant farmer creates "excessive" competition which is harmful to both the individual farmers concerned and the communities in which they live, by driving rates of return to the bare minimum. In the case of agricultural wage labour he thought this would inevitably result in the creation of an agricultural "proletariat" who would be inclined to violent revolution. This leads him to the conclusion that tenant farming and wage labour should be "excluded" from farm areas (how this would be achieved he does not say), even though he admits that tenant farming produces greater output as the statistics from Flanders clearly show.
Sharecropping was to be preferred in his view because it was a more cooperative economic endeavour, a voluntary association between "capital" (the private landowner) and "labour" (the sharecropping farmer and his family) which produced a "fairer" distribution of output, even though it might be less than that of the tenant farmers. 446 This kind of free market "association" was a direct reply to the socialists' demand, voiced by Victor Considerant and Louis Blanc, that new forms of socialist association, such as social or national workshops backed by state coercion and compulsion, should be introduced. This was a view shared by one of the leading agronomists of the period, Adrien de Gasparin (1783-1862), who wrote the following year after Bastiat penned this essay about the political benefits of the métayage system:
In the principle of the sharing of output between the worker and the capitalist there is the hidden virtue which can be marvellously adapted to the weaknesses of human nature, which puts an end to jealousy and greed, and which seems to be particularly suited to the current situation. In a farming district with sharecroppers (métaires) one doesn't see this blind hatred towards property which animates the spirits of those who are engaged in renting their farms (fermage). By facing the same risks together, sharing the same fear of floods, enjoying the same benefits, weeping at the same losses, they build up a co-fraternity which prevents negative passions from taking hold. In my Memoir I consider sharecropping to be the natural transition from slavery or serfdom to a system of free agricultural production ... 447
Bastiat's "Thought on Sharecropping" also enables Bastiat to explore some ideas which he would take up later in greater detail, namely Malthusian population theory, the inherent conflict (or harmony) between labour and capital, and the nature of productive and unproductive labour, especially in the form of land rent. In this early effort, we see Bastiat taking positions which he would revise or even reject in his treatise Economic Harmonies . For example, he present arguments about the "idle landowner" which seems to contradict other statements Bastiat would make about the productiveness of all voluntary economic activity where there are mutually beneficial exchanges of "service for service." The landowner, to the extent that he makes available land, capital, seeds, etc., would also be productive in this sense. In his debate with Proudhon 448 and other socialists in 1849 Bastiat was to argue vigorously that rent paid for land and interest paid for loans were both justified and productive. Either he changed his mind between February 1846 (when this was written) and then, or he has some other understanding about what "idle landowners" were. 449 There is a hint of the latter in his remark that "landowners ... often have never seen the land that finances their opulent life at court" (below). This suggests Bastiat was referring to aristocratic landowners (propriétaires) and not farmers as such, but it is not very clear. He also believes that "there is an incurable antagonism between the three classes that tend the soil" (landowners, tenant farmers, and illiterate day laborers) which seems to contradict Bastiat's later notion that there is a "harmony of interests" between all consumers and producers when there is an absence of violence and political privilege. And finally, he seems to be a more orthodox Malthusian here than he would later become. He defends Malthus from the criticism of Proudhon, for example, but agrees that the pessimistic conclusions one could draw from his theory of the inevitable squeeze on living standards brought about by overpopulation are essentially correct - "The fact is that over-population has always and will always be the greatest scourge of the human race, because it involves all the others." In his later writings on population ("On Population", Journal des Économistes , (Oct. 1846) and Chap. 16 "On Population" Economic Harmonies (2nd ed. 1851) he would challenge this pessimism on the grounds that human beings were not like unthinking "plants" and could rationally plan their lives so as not to be determined by "the means of subsistence" (the bare minimum needed to survive), and that when left free to function as they wanted to, free markets would be able to indefinitely increase "the means of existence" (the standard of living) and thus break free from the Malthusian population trap for good.
It would seem that when he wrote this essay Bastiat was a supporter of free trade but not yet the advocate of radical, across the board laissez-faire policies he was to become later. It is likely that Bastiat became more radical as he worked full-time for the free trade movement, as he increasingly became active in opposing socialism during the Revolution, and as he rethought his ideas as he worked on his treatise on economic theory.
TextIn putting before the general public a plan for an agricultural establishment which could conceivably become a model for good sharecroppers, I have to admit that, like all designers of projects, I feel toward mine a sort of paternal tenderness. I think that few institutions of this kind would go together as well with the circumstances of our Département (of Les Landes) and hold promise of so many fertile seeds of well-being, education, and moral principles at so little cost.
I have previously criticized sharecropping , 450 but I am now convinced that, while my comments were fair, they were inadequate. I had seen the good that it prevented but not the good that it does or might do. Since my aim is to improve it and to eliminate its disadvantages, allow me to make a few general remarks about this method of (voluntary) association which brings together labor and capital , considerations which will oblige me to tackle some of the most important problems in social economy. 451
That set of activities through which the human race provides for its subsistence, has undergone major revolutions. First of all, people confined themselves to hunting wild animals. Later, by domesticating certain species, they were able to make use of and profit from the grasses that grew spontaneously. Much later, they subjected the land to the plough and, from the earliest times to the present day, appeared to settle on the form of farming known as the three field system of crop rotation . Finally, farming has now entered its fourth phase, that of alternating cultivation .
We can easily imagine the immense progress that each of these stages has enabled the human race to make. Huge stretches of territory were needed to provide hunting tribes with a meager existence. Pastoral tribes were able to increase in number and wealth, comparatively speaking. Similar progress must have followed the conversion of pasture into cultivated fields. 452 Finally, there is no doubt that alternating cultivation is preparing the human race for further progress which will raise it as far above its present state as the system of three year crop rotation raised it above pastoral life, or as herding raised it above its primitive existence.
When we consider how far each of these systems carries within itself the germ of the succeeding system, we are surprised at the time required for the human race to move from one to the other. Between hunting game for food consumed as it was caught and raising the tamest species of animals in one's own vicinity in order to obtain as needed their milk, meat, wool, or leather, seems to be just a step, and this step still seems to be insuperable to the American tribes. People may think that the transition between raising animals around a tent using certain naturally occurring grasses and encouraging these to grow by cultivating them, is easy, and yet it has, never been tried by the nomadic tribes of Tartary or Arabia. The key thing is that the three year system probably coincided with the first experiments in farming. In the event, people had first of all to sow wheat for themselves and oats for their stock on land that had been cleared, and when it did not take long for them to realize that successive harvests encouraged the proliferation of parasitic plants, leaving land fallow must not have taken long to be introduced and thereby complete the system of crop rotation. One might think that in terms of difficulty anyway, from this to the achievement of the same goal through the successive planting of different varieties of crops, there was just a small step to be taken and yet this progression appears to be beyond the powers of the most enlightened of nations, those whose civilization was the most advanced, in spite of the efforts of scholars and the encouragement given by those in power. 453
Be this as it may, this latest revolution is taking place, although slowly, before our eyes. In order to ascertain the part that sharecropping can play in this, it is important that we compare three year crop rotation with alternating cultivation .
In three year crop rotation , each domain is divided into two halves, one devoted to permanent pasture and meadow for stock and the other subject to the plough. Sully's epigram "pasturing and plowing and are the two nourishing breasts of the State" 454 refers to this fundamental division, an epigram in which a vague premonition of alternating cultivation has so awkwardly been seen.
Cultivated land is itself divided into three parts or three fields alternately devoted to the production of two types of cereal with one year fallow, or more accurately, one year of land clearance and preparation.
It is currently fashionable to denigrate this ancient system as being the sorry product of ignorance. Clever minds have judged it very differently;
"I do not think I will be suspected", said Mr. de Dombasle, 455 "of being too zealous an advocate of this system of farming. However, I find it impossible to deny that it appears to be perfectly suited to the circumstances of the time in which it was conceived, a time in which farming operated only on the basis of a few plants taken from the family of cereals. If you consider the extreme simplicity of this system, the harmony that existed between all the parties involved, the equal share it offered at all times of the year, the work it necessitated, and the facility with which it applied to all types of soil situated in a wide variety of climates, you will probably consider that it would have been impossible at that time to conceive a more comprehensive solution to the following problem: to find the most convenient system of farming to produce the items that were the most essential to consumption for a poor nation with little civilization and a population that, although small, was already too large to ensure its food supply with a pastoral system, a system that required the least labor and would be the easiest to implement by people lacking in education and developed finance.
Such in all probability were the givens of the problem in the circumstances that prevailed in the nations of Europe in the Middle Ages and also for a long time afterwards. Considered in this light, the three year rotation system with a fallow period and common grazing land was genuinely an admirable concept, in spite of its serious but inevitable faults." 456
The most striking characteristic of the three year system is its lack of flexibility . It is the same today as it has always been, and because of this it is eminently suited to sharecropping , because it is based upon a wealth of observations and experience which go back to the dawn of time, and which generations have passed down in the name of routine . (Routine, from rota , a wheel, which once it is turned continues to turn by itself.)
But however venerable this ancient form of farming that our fathers have passed down to us, we should not hide the fact that it has served its purpose and come to the end of its useful life. With its narrow limits and its homogeneity, it is powerless to supply modern industry with the abundance and variety of raw materials that are increasingly needed. It is even incapable of ensuring the food supply of a large population, because it excludes a great number of animal and vegetable products, and the variety of products is the best solution we have to the problem of the inconsistency of the seasons.
For this reason, I repeat, a farming revolution is now in the throes of preparation, that is to say, it is being formed in the social body, like all revolutions, at the time when it has become necessary. This revolution is the advent of alternating cultivation . 457
In the same way as lack of flexibility and homogeneity are characteristics of the three year system, flexibility and variety are the distinctive traits of alternating cultivation.
In this system, pasture, the commons, and even permanent meadows. The entire area of traditional land, each divided into a wide variety of fields, is subject to the plough. The infinite diversity of social needs revealed by the market price for food products determines the production of each of the fields that are included in the rotation system, and the head farmer has the function of maintaining within this apparent confusion the order laid down by the rules of crop rotation, the uninterrupted succession of plants that fertilize the soil and those that exhaust it, plants appropriate for animal feed and those for human consumption, with the appropriate insertion of plants that clean and prepare the soil without our resorting to fallow land, in short, never losing sight of the fact that all these crops have to be combined, so that at the end of each rotation cycle the soil is kept at least in the same condition, or preferably maintained with improved value and fertility.
This is the system of alternation. I have no need to point out here how much it encourages mankind's development and well-being through the abundance and variety of its products.
One thing that strikes me is the state of inferiority that threatens the regions that are the last to adopt the system of alternation. It is in the nature of this system not only to deliver to consumers a wide variety of food products, meat, vegetables, root vegetables, or milk products but even to provide cereals themselves at an overall price lower than the one that three year crop rotation can produce. This appears paradoxical, since the ancient system devotes two-thirds of the cultivatable land to this type of production while the new system devotes half at the most.
However, it should be noted that, in alternating cultivation, the estate which is ploughed is increased by the land that three year crop rotation gives over to permanent meadowland and pasture for stock, so that in the end, cereals do not lose any planting area.
On the other hand, in the three year system, the rent relating to the third of the estate that is uncultivated and the considerable costs of land lying fallow increase the debits in the accounts for the two following harvests, which means that it is possible for it to withstand competition from the alternating system only because this latter system is still limited to a tiny number of cantons in France.
In a word, it is doubtful whether the former system will maintain the level of fertility of the soil that the latter increases constantly.
Farming statistics published recently at the order of the administrative authorities 458 shed light on these facts with the irresistible eloquence of figures. Let us compare three departments here, one in French Flanders, the cradle of alternating cultivation, the second in Touraine, 459 where the three year system has reached the pinnacle of perfection, and finally in our own region.
Department of the Nord | Department of the Indre-et-Loire | Department of Les Landes | |
Population per ten thousand square meters | 18,074 | 4,971 | 3,114 |
Production per hectare | |||
Wheat | 20.74 hect. | 12.27 | 8.62 |
Rye | 18.41 | 15.19 | 8.23 |
Oats | 39.93 | 10.08 | 0.30 |
Potatoes | 169.20 | 101 | 27.79 |
Dry vegetables | 22.64 | 10.01 | 11.99 |
Flax | 579.1 kilog. | 423 | 140 |
Natural meadowland/grass land | 35.57 quint./met | 27 | 17 |
Artificial meadowland | 43.95 | 24 | 18 |
Number of animals | |||
Cattle | 226,338 | 92,529 | 62,228 |
Sheep | 210,834 | 237,793 | 463,628 |
Horses | 79,177 | 27,852 | 23,035 |
What is more significant than figures like these?
Let us present them in another form to make the results more telling. We will establish the real state of affairs using the Department of Les Landes as the unit of comparison.
Landes | Indre-et-Loire | Nord | |
Population | 1 | 1.59 | 5.80 |
Value of stock | 1 | 1.30 | 6.44 |
W heat per hectare | 1 | 1.41 | 2.50 |
Oats | 1 | 1.22 | 4.85 |
Artificial meadowland | 1 | 1.30 | 3.30 |
Flax | 1 | 2.40 | 5.16 |
Potatoes | 1 | 3.29 | 6.81 |
Thus, in the Department of the Nord, production is triple what it is in Les Landes for the two plants that are combined both in alternating and in three year cultivation, like wheat and oats. It is five-fold , in the case of plants such as clover, flax, and potatoes, plants which are unable to find a proper place in the three year system. The result of the two systems is shown in a population in the Nord that is more than five times larger than that of Les Landes and which consumes more than six times the value of butchered meat.
It is true that the class of farmers are not alone in benefiting from the surplus of production that is due to their intelligent production. As production costs decrease in relation to output, we see the rate of farm rent and consequently the price of land increasing, so that in the end it is the landowner who reaps the benefit of the superiority of Flemish farmers. This is what restores the balance between the two forms of cultivation. Without this type of moderation, it would be impossible for three-year cultivation to compete with its rival. However the power that exists in this gradual increase in the value of land in attracting to the Nord capital waiting to be invested can be readily understood.
Alternating cultivation is no less powerful in attracting capital that is not seeking capital gains but investment for revenue purposes. Through the abundance and variety of the raw materials it supplies to industry, as well as the increased consumption made possible by densely populated and wealthy regions, it offers manufacturers infinitely greater opportunities than those to be found in regions which are thinly populated, economically deprived, and limited to the production of cereals.
Thus, alternating cultivation attracts everything, population, consumption, capital, education, and industry.
But is not sharecropping an insurmountable obstacle for those countries in which this method of operation has been adopted who now wish to enter the realm of modern agriculture?
As we have already said, sharecropping goes together perfectly with the three year crop rotation system because both of them are inherently inflexible . Action that is always identical does not require a progressive agency. Doubtless a three year farming system implies a great deal of knowledge, but since its procedures are uniform, this knowledge has been readily set and condensed, so to speak, into a series of proverbial rules transmitted, especially by example, from time immemorial to the present day. A sharecropper with no education or general ideas always knows enough to do as his forebears have done, and the mass of observation that grows from century to century even allows for some advance in execution when a system that is on the whole inflexible is followed.
By contrast, the essential characteristic of alternating agriculture is flexibility, or at least diversity. Here the division into fields may vary from period to period in line with consumer needs and has to vary from canton to canton in line with the requirements of the soil. It is then his own experience and not that of his ancestors that a farmer has to consult for the rules governing his decisions.
When you assume that the alternating system based on a simple division of fields was also able, like grazing, or three year crop rotation, to become a new form of routine handed down from father to son to future generations through the sole channel of experience and custom, it is still a fact that the initial example of this cannot be provided by sharecroppers. It was not the slaves who shepherded the herds of the nomadic Tartar tribes to pasture who would have introduced them to three year crop rotation, and no more would sharecroppers, steeped in ancient experience, be the ones to take farming forward into a new phase.
Sharecroppers lack three characteristics to enable them to become the instruments of a revolution like this: knowledge, power, and will .
Alternating cultivation requires more knowledge than three year crop rotation. It involves a greater number of plant varieties, for each of which knowledge of how to prepare the soil, how to sow, grow, harvest, and store them is required. The same holds for the production of fertilizer. Animal husbandry also plays a greater part and has to involve more advanced breeds. Finally, the art of making use of animal products develops on a larger scale. Where do you think sharecroppers can gain such knowledge? In books? They cannot read and do not even speak the language the books are written in. From example? They have no other example to follow than three year crop rotation. Through their relationship with their landowners? They instinctively know that while landowners are superior to them from the point of view of scientific knowledge, they nevertheless know less than sharecroppers do from the practical point of view. Without knowing how to make this distinction, they understand and sense that scientific knowledge is not enough in practical terms.
Even if sharecroppers knew how to change their method of farming, they could not . The exploitation of an estate in line with new procedures requires a considerable increase in capital: the acquisition of more advanced agricultural machinery, a greater stock of seed, an increase in the number of draught animals, and the enlargement and improved distribution of barns and stables. Who will supply this additional capital? Whether it is the landowner or the sharecropper, this change in the ratio of their contributions to the common task is bound to bring about a corresponding change in their agreement in order to ensure a new and equitable relationship. Such accounting is all the more essential in that, without it, the cost prices of a host of products, in particular, animal products, such as meat, milk butter, cheese, wool, etc., which are nevertheless an essential and important sector of income in alternating cultivation, are impossible to estimate. In any event, bookkeeping is beyond the capabilities of all sharecroppers and the majority of landowners.
Finally, that the sharecropper does not have an ever-growing will to innovate is something in no need of proving. We often hear agronomists, and especially the more enthusiastic ones (the so-called agronomaniacs ) 460 bewailing the disinclination and the force of inertia that they encounter in their sharecroppers with regard to their projects for improvement. What is not noted enough is the usefulness, I might even say the necessity, for such resistance. The attachment to old customs that nature has so deeply built into the hearts of this class is the sole guarantee we have against reckless innovation. Without it, changes that are accepted as soon as they are conceived would inevitably undermine the very source of food supplies. And is it not fortunate that will is lacking where, as we have shown, knowledge and power are also lacking?
These are the reasons that have led me to oppose sharecropping in the past, and what I have said above shows that I still consider it incompatible, at least in the way it is organized currently, with the introduction of advanced farming in the country.
Should it then be concluded that it is a matter of urgency that tenant farming replace it? This, it must be said, would be a hasty deduction. First of all, a country does not change its system of organization and its customs as easily as we replace a worn-out garment with a new one. In the majority of Départements, nothing has been set up to accommodate tenant farming, as regards its most advantageous aspects. The class of enterprising and enlightened men who would have, as tenant-farmers, to run the farms, does not exist in our country and the division of the land into very small holdings is not likely to attract them. The day laborers, the people who make up the basic category of agricultural labor, are not increasing in number and it is doubtful, to say the least, that their arrival in the countryside is to be desired. Finally, the practice of landowners receiving their rent in kind has created attitudes that cannot be changed without upsetting all the relationships that, properly speaking, make up the social life of a country.
So, while it might be proved that, from the farming point of view, tenant farming is better than sharecropping, it would be truly utopian to put it forward to the country as being an essential step in achieving alternating cultivation .
But if sharecropping, which is more inflexible by nature than tenant farming, is inferior to it from the technical point of view, if this inferiority becomes even more marked in these critical times in which profound change, we might even say a major revolution in farming methods, calls for the intervention of knowledge and capital, the question has also to be asked whether this inferiority also exists in other aspects, in particular in the social aspect, which is by far the more important. Sharecropping and tenant farming interact in quite different ways with the laws of population and those governing the distribution of wealth. If we concede that tenant farming creates more products, it remains to be seen whether it distributes them as fairly between all those who have contributed to them and whether it puts as powerful a brake on a disruptive increase in population, which all economists and statesmen consider to be the greatest scourge that can afflict the human race since, just in itself, it implies all the others.
It is with distaste that I raise these serious questions. Nevertheless, interest in them is so pressing, in particular for our South of France, that I am obliged to ask for a moment of your attention. Besides, how could I advocate the establishment of a school for sharecroppers after showing this form of organization in its most unfavorable light if I did not also discuss its good, useful, and beneficial aspects with regard to the populations in whose heart it has been so powerful a presence.
The income from production is shared between three sectors of people in farming regions: landowners, tenant farmers and farm laborers.
The proportions of this sharing out are clearly far from being perpetual . In proportion as an intelligently run operation succeeds in improving the soil and increasing production, landowners take advantage of the competition between farmers by raising the rent for the land each time a lease is renewed, so that the farmers benefit from the increase in wealth only temporarily, between one renewal of the lease to the next. In the end, the results of progress come to be realized only in the pockets of the idle landowner, the person who has contributed nothing to it. The situation of the tenant farmer is at a standstill, if it does not actually deteriorate, under excessive competition. 461 Doubtless it will be said that there is also competition between the holdings to be let to tenant farmers, but it is obvious that the number of these is limited, whereas the number of men capable of heading up a farm is bound to increase constantly with the growth of education and capital formation.
This inequality in the distribution of all the products resulting from successive improvements to the soil and advances in farming methods is more disadvantageous still to manual laborers.
Competition by a natural process reduces wages to the level required to support a worker. This is as true for farming as it is for manufacturing. If a well-run spinning mill succeeds in producing better results, it does not follow at all that the wages of the laborers will increase. If the improvement takes place in isolation, it benefits the entrepreneur. If it is common to all spinning mills, it benefits the consumer. As for wages, they do not change. The entrepreneur in fact does not set them in accordance with his profits but in line with the rate at which competition provides him with hands, and if the country offers them to him at one franc a day, then no matter how much his profits increase, this will not persuade him to give two francs out of the goodness of his heart.
Things happen in exactly the same way in farming regions. There is even an additional reason for the situation of manual laborers not improving along with improved farming methods. This reason is that, since all of the surplus wealth produced goes to the landowner, the tenant farmer is not in a better situation even though the farm is more productive. Saving on the costs of production is an essential imperative for him that never slackens, and the first and most important economy, as well as the most obvious, is to reduce the labor force as far as possible and to pay the cost of the labor that cannot be saved upon only at the lowest rate the competition between day laborers allows him to reach.
For wages to increase, therefore, one of two things is needed. 462 The first is that the manpower demanded should increase progressively with output or that the population of laborers should be limited so as to limit the supply of labor, thus raising its price.
But from either point of view we see that this class is put into the most unfavorable situation. In the case of the demand for labor, this tends to decrease rather than increase with the progress in farming methods, for this progress consists precisely in having work done by machines. And, as for supply , there can be no doubt that it tends constantly to increase, for it is in the nature of wage-labor that it gives rise to lack of foresight and encourages a destabilizing increase in population. This is what modern social science has both understood perfectly and shown. In all eras this fact has been vaguely felt, hence the forceful expression, the proletariat , which was applied to the class which lives off wages, long before the laws of population were subjected to the scrutiny of science.
Thus, while accepting that tenant farming was a system of farming more favorable than sharecropping to advancing agriculture and increasing wealth, one cannot deny that with regard to the distribution of products, it contains the greatest of all disadvantages. Far from calling on all classes of labourers to share products equitably, far from enabling them all to share in the benefits of farming progress so that the increase in wealth is nothing other that an increase in well-being that is fairly distributed, on the contrary, it ends up merely by enriching the wealthy and impoverishing the poor, constantly increasing the gap between these two extremes in the social scale, and thus creating that incommensurable distance that separates extreme opulence and extreme poverty.
It is not just well-being that is distributed so unequally under the law of tenant farming, but also education and influence, even though these are not the result of wealth.
A idle landowner who is totally ignorant of farming methods distances himself from the land that provides him with a living, and often has not even visited it. He lives in large towns at the center of civilization and political affairs. 463
The tenant farmer, in truth, has to cultivate his mind and keep abreast of progress in farming. All the expertise is concentrated in him. However, you should note that the positive results of his education, confiscated periodically by the landowner, leave the tenant farmer in the same situation at each renewal of his lease. He is thus enclosed in a circle he cannot break out of, and both his ideas and influence cannot extend beyond his trade .
As for the day laborer, forever reduced to a wage that allows him to live, he is little concerned with the farming methods of which he is a mindless cog. It is even to be doubted whether the sort of subtle education that comes to him externally can be held to be beneficial, since this does not arise from his position, is not likely to improve him, and perhaps will serve only to make him appreciate the horror of it all.
Actually, the whole sector is bound to be affected by the constant absence of landowners and their families in the farming areas. Freed from any personal participation in farming work, they have weakened the links attaching them to the soil as far as they can and they disappear without a backward glance to consume their incomes far away. A quarter, or perhaps a third of the products are thus lost to the region that has produced them, and the vacuum caused by this constant absenteeism is all the more irreparable because it cannot be filled in the long run by the work carried out by tenant farmers and day laborers, since, as we have seen, this work serves only to increase the part played by absenteeism .
For this reason, travelers who go through the rich or rather the fertile regions subject to tenant farming have trouble reconciling the beauty of the crops in the fields and the wealth of products with the poverty of the region: deserted chateaux, farms whose progress is seemingly barred by some inexorable law, and a jumble of hovels in which the race of day laborers swarm. There is an incurable antagonism between the three classes that tend the soil; 464 landowners who often have never seen the land that finances their opulent life at court, tenant farmers who deplore the sight of their rich harvests, a certain sign of the increase in charges that hangs over their heads, and illiterate day laborers without interest in the success of their work, without foresight, and without hope in a future which, for them, holds no seed of improvement. Such is the real situation to which these regions have been reduced by tenant farming, a system very much over extolled because it is too often considered solely from the point of view of production and the interest of the landowner.
At first sight, it appears that there is a slight difference and nothing more between tenant farming and sharecropping . To rent the land the former pays a fixed rental, while the latter hands over a charge in proportion to the products in kind. It is nevertheless certain that from these slight differences two totally separate social orders arise.
Farm leases are essentially temporal. They are renewed every twenty-one, eighteen, or sometimes nine years, and even, as in Ireland, every year. 465 If the tenant farmer becomes rich and succeeds in his business , the farm lease periodically drags him back to his initial situation.
Sharecropping leases 466 are essentially perpetual in nature, or at least their duration depends totally on the activity, the spirit of order, and probity of the sharecropper in question. Provided that he works the land well and faithfully carries out the conditions of his contract, there is no reason he should be thrown out and under no circumstances are his charges increased. There is thus a place for hope in the sharecropper's heart. He will benefit from all of his efforts and each drop of sweat that falls from his brow will be rewarded. He will be able to show off his fields with pride and confidence to his landowner and has no fear that the success of his crops will arouse the latter's greed .
Sharecropping has divided cultivatable land into portions that one family is capable of farming. In sharecropping regions, there are thus no day laborers or proletarians. Whoever puts his hand to the plough has a stake in the result. Moral qualities and intellectual advancement are not useless or perhaps disastrous baggage for anyone. Doing work with greater wisdom and perseverance does not just improve the lot of this kind of farmer in the short run and increase his landowner's fortune in the long run, but it also permanently improves the farmer's own situation and that of his family.
In sharecropping, the distribution of wealth obviously takes place more equitably. The family that supplies the capital and the one that supplies the labor share the result in proportions that, once they have been set, are immutable. Depending on the difficulties of the labor, its share is half, two-thirds, three-fifths, and often three-quarters. This is the real association 467 of capital and labor that has so long been sought by the utopians of our century. Once the share due to labor has been agreed, the farmer just has to act, increase his output, and improve his situation, and his reward will be assured indefinitely.
From the point of view of the population, the sharecropping regions appear to be in a very favorable situation.
There has been a great outcry against the doctrines of Malthus recently. 468 It might be supposed that this famous economist had imposed on the human race the laws that he has merely recorded. You might as well criticize Newton for having set out the laws of gravity, since it is by virtue of these laws that we are hurt by falling bodies or by our own falls.
The fact is that over-population has always and will always be the greatest scourge of the human race, because it involves all the others.
Another equally well-known fact is that a tendency to increase in a disorganized fashion is mainly seen in the class of people that live on wages. The foresight required to postpone marriage has little influence on these people because the damage caused by excessive competition is perceived by them only dimly, and at a future time ostensibly not much to be feared.
It is thus most favorable for a region to be organized so as to exclude wage labor . 469 In sharecropping regions, marriages are arranged principally in accordance with farming needs; they are more frequent when, for some reason, there are vacancies that hamper work and become rarer when these vacancies are filled. Here, the relationship between the extent of the estate and the number of hands, a state of affairs that is easy to observe, operates very much like foresight and does so in a more certain manner. For this reason let us see whether, if nothing occurs to create job opportunities for an excess in population, it remains stationary. Our southern Départements are proof of this.
Is this the same in tenant-farming countries? England and Ireland are there to provide us with an answer. We do not know what is growing faster on the other side of the Channel: production, population, or pauperism . Well, at first glance it seems contradictory for this triple development to occur simultaneously. A growing population can obviously be explained by a gradual increase in production and vice versa, but this increase in poverty is a phenomenon that appears to contradict the two others, for on one hand how can a surplus in products not lead to the well-being of producers, and on the other how does poverty not restrict the population? These apparent anomalies are explained by wage-labor , which factories and farming vie with one another to develop in the British Isles. Wage labour dictates that products are distributed unequally, thus explaining the simultaneous increase in wealth and poverty. It neutralizes consideration of the future with regard to marriage, thus explaining the simultaneous development of the population and pauperism.
Is this result consistent with philanthropy? Is a badly organised expansion of that part of the population which lives precariously on wage-labor, a human resource constantly changing and thrown off balance for a plethora of reasons; such as increasingly vigorous competition in the supply of labor, a steady drop in the value of wages to the point where workers, as in Ireland, are reduced to living on a few potatoes stolen from pigs' troughs, 470 the end point of the human race?
Fortunate then are the regions within which the largest and most general of all industries, the one that occupies the vast majority of workers, is based on an organization that excludes wage labor . Let us refrain from meddling with sharecropping, this association of labour and capital, which closes the door against two of the most terrible scourges of the human race: over-population and pauperism.
From a moral point of view, sharecropping offers certain further incontestable advantages. The common interest it establishes between landowners and sharecroppers, the force that impels them toward an identical goal along parallel pathways, prevents and forestalls feelings of mistrust and envy, the dull but bitter resentment that gnaws away at wage earning working class , exploding from time to time into riots, "Rebecca-ism," 471 or incendiary action, divers symptoms of the same suffering. In regions in which sharecropping predominates, doubtless there are a variety of degrees of wealth, but there is also common opportunities and prospects. Sharecroppers win or lose for the same reasons that enrich or impoverish their master. Each side has an interest in getting on well, joining forces to overcome bad days by helping each other, and devoting the surplus in good years to making improvements. Everyday relationships are established that are almost those of a family connection between the families of landowners and those of sharecroppers. Masters like to find out about the situation of their farmers; they intervene with advice in marriage projects, and accelerate or slow them down depending on the requirements of work or, what amounts to the same thing, social interest. 472 They take account of good reputation when a new worker, who wants to head up a new farm, is introduced into their estate, thus giving a better opportunity of growth and enlargement to those families with the best reputation. When sharecroppers come to offer their landowners the harvest chicken or Easter eggs, their meeting is cordial and affectionate. They have no reason to suspect each other of sinister ulterior motives and sharecroppers are able to indulge in praising the fine harvest and the fertility of the soil without having to fear either enflaming their master's greed or giving him the dreadful idea of changing the clauses of their contract. I have seen a landowner invite his sharecroppers on New Year's Day, in accordance with an ancient custom, and see his table surrounded by one hundred and twenty heads of farming enterprises. 473
I have not traveled, 474 I have not been able to compare tenant farming countries with sharecropping ones, but I think that reason is enough to show that they must offer very different prospects. In the first category, there are a few dilapidated chateaux that absenteeism has left silent and empty with farms situated at a great distance and in which education and prosperity cannot break the iron barrier imposed by the tenant farming system; villages inhabited solely by laborers, in which doubtless misery, filth, a lack of care for the future and the lack of a culture of work are the sad lot of the proletariat. This is not the cold physiognomy that sharecropping imprints on our landscapes. The division of the territory into small estates increases the number of houses, gardens, stands of trees, pastures, fields, vineyards, and woods, and makes the entire landscape attractive through its variety.
The conclusion drawn from all this is that tenant farming favors production more while sharecropping favors the distribution of wealth. One appears superior from the purely agricultural point of view while the other appears to have incontestable advantages from the social one. So if it were possible to extend a proper, sound form of education among the sharecropping class, if sharecropping could be equipped to overcome the barrier separating the three year crop rotation and alternating cultivation, I have no doubt that we would soon see regions in which this form of organization has prevailed come to equal tenant farming ones in the technical sense without exhibiting comparable signs of the triple scourge of absenteeism by landowners, of an inevitable stationary state as regards tenant farmers, and of country labourers being destined to becoming members of the proletariat .
437 See below, pp. 000 and pp. 000.
438 "On the Bordeaux to Bayonne Railway Line" (19 May 1846), CW1, pp. 312-15.
439 It is not clear what he means by this but it could refer to his appointment as a local Justice of the Peace in 1831.
440 "On the Bordeaux to Bayonne Railway Line," CW1, p. 315.
441 See, M. L. Mounier, De l'agriculture en France d'après les documents officiels , 2 vols. (Paris: Guillaumin, 1846), vol. 1, Chap. X "Des divers modes de l'exploitation du sol," p. 265.
442 See Molinari, Les Soirées (1849), "The Fourth Evening" (forthcoming).
443 Charles Dunoyer, Liberté du travail (1845), vol. 2, Book VIII, chap. V "De la liberté de l'industrie agricole," p. 412-13.
444 "Proposition for the Creation of a School for Sons of Sharecroppers" CW1, pp. 334-40. This paper was presented in 1844 to the Chamber of Agriculture of Les Landes.
445 "Proposition for the Creation of a School for Sons of Sharecroppers" CW1, p. 334.
446 This was a complete reversal of his previous view in the "Third Article" of "The Canal beside the Adour" (June 1837), see below, pp. 000.
447 Adrien de Gasparin, Guide des Propriétaires de biens soumis au métayage (Paris: Dusacq, 1847), pp. iii-iv.
448 See his debate with Proudhon in "Free Credit" (Nov. 1949-March 1850) below, pp. 000.
449 Another possibility is that this is an article Bastiat had written several years before when his thinking was less developed and was only now (February 1846) getting around to publishing.
450 See, "6. Proposition for the Creation of a School for Sons of Sharecroppers" CW1, pp. 334-40. This paper was presented in 1844 to the Chamber of Agriculture of Les Landes.
451 See the glossary entry on "Social Economy."
452 The standard account for the Economists of the original and just acquisition of private property in land out of a state of communal tribal ownership is provided by Charles Comte in Traité de la Propriété (1834). Comte believes it was a near universal phenomenon that communally owned land eventually was transformed into private ownership as soon as an individual was able through the self denial of immediate consumption to save enough to survive long enough to engage in the more protracted process of cultivating a plot of land until the harvest. This resulted in dramatically higher output than hunting and gathering or other communal activities. See, Charles Comte, Traité de la Propriété (1834), vol. 1, chap. X "De la conversion du territoire national en propriétés privées," pp. 139-61.
453 In the 18th century France had several important Agricultural Societies which promoted these ideas and they were supported by the Physiocrats who believed that agriculture was the most productive productive economic activity. Similar societies also existed in the 19th century such as Société royale et centrale d'agriculture (The Royal and Central Agricultural Society) in which the politician and agronomist Adrien de Gasparin (1783-1862) was very active. See glossary on "Gasparin."
454 Bastiat gets the quote from the duc de Sully slightly wrong: it should be "que le labourage et pasturage estoient les deux mamelles dont la France estoit alimentée" (that plowing and pasturing are the two breasts from which France is fed). It comes from the Oeconomies royales, ou memoires du Sully (1598) (1837 edition), Chap. XVI, p. 195.
455 Joseph Alexandre Mathieu de Dombasle (1777-1843) was a pioneer agronomist who helped establish the French sugar-beet industry. He began a model farm in 1822, a factory to produce agricultural tools (1823), and a school of agriculture (1824). Inspired by British agriculture, he introduced the practice of triennial crop rotation (cereals, forage, vegetables), which Bastiat tried in vain to introduce in his own sharecropping farms.
456 C.-J.-A. Mathieu de Dombasle, Annales agricoles de Roville: ou, Mélanges d'agriculture, d'économie rurale, et de législation agricole (Paris: Chez Madame Huzard, 1824), pp. 2-3.
457 Bastiat would have read Charles Dunoyer's thoughts on the advantages of alternating cultivation over the older triennial rotation system in Liberté du travail (1845), vol. 2, Book VIII, chap. V "De la liberté de l'industrie agricole," p. 412-13, in which he discusses the benefits of this kind of farming for the more profit conscious "l'entrepreneur de culture" (the entrepreneur in the farming business). This was an idea taken up in more detail by Molinari in Les Soirées , no. IV where he argued that the days of the small family run farm were numbered and they would be replaced by the consolidation of land into large-scale agri-businesses run for profit.
458 It is not clear where Bastiat gets his economic data from, but it is most likely from Statistique de la France, publiée par France Ministère de l'Intérieur, de l'Agriculture et du Commerce. Tomes IIIe et IVe de la Statistique agricole du Royaume. (Paris: Imprimerie Royale, 1841). Other works he might have consulted include: J.-H. Schnitzler, Statistique générale méthodique et complète de la France comparée aux autres grandes puissances de l'Europe (Paris: H. Lebrun, 1846), vol. 3, pp. 82-83; Alexandre Moreau de Jonnès, Statistique de l'agriculture de la France comprenant: la statistique des céréales, de la vigne, des cultures diverses, des paturages, des bois et forêts, et des animaux domestiques, avec leur production actuelle, comparée à celle des temps anciens et des principaux pays de l'Europe (Paris: Guillaumin et cie, 1848); or from some of the other statistical volumes listed in the bibliography of H. Passy, "Agriculture," DEP , vol. 1, pp. 31-49.
459 Touraine was the name of an old province of France which had Tours as its capital. It was largely replaced by the modern Département of Inde-et-Loire.
460 "Agronomaniacs," or enthusiasts in favour of agricultural reform, were not unique to Bastiat's time. Steven Kaplan has an account of the heyday for "agromania" during the 1750s when the Physiocratic school was beginning to emerge. The solution to the problem of French agriculture was seen in the creation of agricultural societies organised by the government and by local notables who would publish and disseminate tracts, pamphlets, manuals and catechisms with useful information on how to improve agricultural output. Kaplan states that by the 1760s a government report on agricultural societies counted 18 societies in 21 generalities with 2,000 active members. These agricultural improvement societies evolved by the 1760s into what Kaplan calls "a liberty lobby" which made the leap from purely agricultural improvements to political and economic improvements which would make the latter possible. In the same tradition as the Physiocrats, Bastiat was doing his best to do likewise with the farmers and tenants of his home region. Voltaire in his typical amusing manner made fun of these efforts in the article on "Wheat" in the Philosophical Dictionary (1764): "if a labourer planted as much weight in grain as we have of volumes on this product, he would aspire to the most ample harvest." See Steven L. Kaplan, Bread, Politics, and Political Economy in the Reign of Louis XV (The Hague: Martinus Nijhoff, 1976), 2 vols, vol. 1, pp. 119-20. Voltaire quote p. 119.
461 Again, here Bastiat seems to have a very different view about the effects competition has on the well-being of tenant farmers and wages earners than the more optimistic and positive views he would express in Economic Harmonies . See, Chap. 10 "Competition" (also below, pp. 000) and chap. 14 "Wages".
462 Interestingly, Bastiat does not admit a third possibility for an increase in wages, that of increased productivity.
463 This might be said of Bastiat himself in his last few years which were spent on the road working for the French Free Trade Association or in Paris.
464 This contradicts Bastiat's later notion of a "harmony of interests" between all consumers and producers when there is an absence of violence and political privilege.
465 The worst example of impoverishment caused by renting land which was too small to be viable was seen in Ireland. It was described vividly by Gustave de Beaumont, the travelling companion of Alexis de Tocqueville, who published an analysis of the poverty in Ireland and blamed the rapacious Irish aristocracy, calling for its abolition: Gustave de Beaumont, L'Irlande sociale, politique et religieuse (Paris: C. Gosselin, 1839). 2 vols.
466 Here Bastiat uses the phrase " Le bail à colonie" for sharecropping leases and for sharecropper " colon partiaire".
467 This is a reply to socialists like Fourier and Blanc who argued that what workers needed was a new form of "association" in their work arrangements where there would be no wages paid by owners of factories or workshops but where workers would work cooperatively and share the proceeds among themselves. Sometimes he would use the word in lowercase,"association," to distinguish his understanding of voluntary association from the socialist notion of compulsory, state enforced "Association" (beginning with a capital A) in these new kinds of workshops.
468 See the glossary entries on "Malthus" and "Malthusianism."
469 Another hostile remark about wage labour which is absent from Economic Harmonies .
470 The Great Irish Famine of 1845-1852 was caused by a disease which affected the potato crop (potato blight) and resulted in the deaths of 1 to 1.5 million people from famine and the emigration of a further million people out of a population of around 7 million. In addition to the failure of the potato crop there were other serious problems which were of concern, including the situation of tenant farmers unable to pay their rents, the continued export of food from Ireland during the famine, and restrictions on the free import of food from elsewhere in Europe. The latter issue was taken up by members of the Anti-Corn Law League in England when campaigning for the abolition of tariff restrictions on grain, which they achieved in 1846.
471 The Rebecca Riots took place in Wales between 1839 and 1843 in protest against the tolls which were charged local farmers to use public roads. Toll Trusts had been set up by the government to manage the roads and to levy tolls on users. When tolls were increased at a time of poor harvests some male farmers dressed up as women in order to hide their identity while they destroyed the toll gates. They took their name from a biblical verse about Rebecca in Genesis 24:60 "And they blessed Rebekah and said unto her, Thou art our sister, be thou the mother of thousands of millions, and let thy seed possess the gate of those which hate them." The JDE reported on the Rebecca Riots in late 1843. The editor H. Dussard commented that it was a reaction to changes made to communal property rights which infuriated the farmers. Léon Faucher also had an extended account of the riots in a chapter on Wales in Études sur l'Angleterre (Guillaumin, 1845). See, H. Dussard, Chronique, Paris 17 septembre, JDE, T. 16, août à novembre 1843, p. 214; and Léon Faucher, Études sur l'Angleterre , (Paris: Guillaumin, 1845), Tome II, II. Carmarthen, pp. 215-43.
472 This passage may well be autobiographical where Bastiat draws upon his own experience in dealing with sharecroppers on his estate.
473 Sismondi also recognised this aspect of sharecropping when the same family is supported on the estate. But he is also aware of the excessive growth of population which can result from the good intentions of the land owner who is always inclined to offer his land to the second son who, wanting to marry, will be happy to accept a cut in the terms of the sharecropping arrangements as has happened to the farmers in the river regions of Genoa, in the republic of Lucca and some of the provinces of Naples, to one third of the crop instead of one half. See, Simonde de Sismondi, Nouveaux principes d'économie politique, ou De la richesse dans ses rapports avec la population (Paris: Delaunay, 1827), vol.1, Book III, Chap. V "De l'exploitation par métayers, ou à moitié fruits," pp. 189-203.
474 At this stage of his life Bastiat had travelled extensively only in Spain and Portugal where his family had business dealings. He made his first trip to England in 1845 to meet Richard Cobden and to do research for his book on Cobden and the Anti-Corn Law League which was published in July 1845.
T.48 (1846.02.18) "The Free Trade Association in Bordeaux" (MB, Feb. 1846)↩
SourceT.48 (1846.02.18) "The Free Trade Association in Bordeaux" (Association pour la liberté des échanges à Bordeaux), Mémorial bordelais, 18 Feb. 1846. [OC7.9, pp. 43-46.] [CW6]
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T.49 (1846.02.19) "Letter to the Editor of the Journal de Lille, mouth-piece of the northern interests" (MB, Feb. 1846)↩
SourceT.49 (1846.02.19) "Letter to the Editor of the Journal de Lille, mouth-piece of the northern interests" (À M. le rédacteur du Journal de Lille, organe des intérêts du nord), Mémorial bordelais, 19 Feb. 1846. [OC7.10, p. 47??.] [CW6]
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T.50 (1846.02.23) "First Speech given in Bordeaux"↩
SourceT.50 (1846.02.23) "First Speech given in Bordeaux" (Premier discours, à Bordeaux). Found among FB's papers. [OC2.42, pp. 229-38.] [CW6]
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T.51 "The Theory of Profit" (26 Feb. 1846, Mem. bord. )↩
[CW4 draft 16 June, 2017] SourceT.51 (1846.02.26) "The Theory of Profit" (Théorie du bénéfice), Mémorial bordelais, 26 February 1846. [OC7.11, p. 50-53.] [CW4] 475
Editor's IntroductionAfter the success of the English Anti-Corn Law League 476 in getting the protectionist Corn Laws repealed in 1846 (the first reading of the Bill passed in January and the final reading passed in June) the French free traders formed their own Free Trade Association in the port city of Bordeaux in 23 February 1846 and then in Paris with the founding of a national organisation on 1 July 1846. 477 Bastiat was made the secretary of the Advisory Board and then editor of their weekly journal Le Libre-Échange which began in November 1846 and lasted until it was closed on 16 April 1848 after 72 issues . 478 Bastiat gave his first public speech on behalf of free trade in Bordeaux on 23 February 1846 three days before this article appeared in a local paper and he quotes from that speech here. 479
The protectionists countered this move by forming their own national organisation the "Association pour la défense du travail national" (Association for the Defense of National Employment) in October 1846 to defend the interests of the protected industrialists and manufacturers. 480 It was led by Antoine Odier (1766-1853) 481 and Pierre Mimerel de Roubaix (1786-1872) 482 who merged several regional protectionist associations together in order to better organise themselves against the newly formed national French Free Trade Association. The protectionist association's journal was Le Moniteur industrial to which Bastiat refers several times during this article. 483 The Association lobbied successfully between March and July 1847 to defeat a major reform of French tariff policy which was being considered by the Chamber of Deputies.
The format of this article follows that of many of Bastiat's "economic sophisms" where he uses a dialogue between two characters with opposing points of view - here the sceptical Mayor of Bordeaux and an iron industry lobbyist who argues for taxes on iron goods imported into the city so his iron making business can enjoy guaranteed profits. The argument is that firms will not invest in starting businesses which employ French or Bordelais citizens unless they are protected from "foreign" competition and are guaranteed a return on their investment by the government. The Industrialist tries to persuade the sceptical Mayor to use the city tolls (the "octroi"), 484 which are normally used to collect taxes levied on food and other goods brought into a town to pay for public works such as streets and lighting, as a form of local "tariff" protection. This is a line of argument which Bastiat was to use again 485 in "The Mayor of Énios" (6 Feb. 1848) but with the roles reversed: the Mayor of a small town, Énios, is the one who goes to the region's Intendant to get permission to use the octroi taxes in this way. He believes that if tariffs are good for France as a whole, since they are supposed to promote national industry, why wouldn't they also be good for his town as well, in order to promote his town's local industry? The Intendant denies the Mayor permission but is forced into the amusing position of defending free trade within France but not externally - which of course was Bastiat's point in writing the story.
We also see here an early example of Bastiat's decision to avoid euphemisms and use what he called "harsh" or "brutal" language to describe the policy of protectionism. In an article he published in the Journal des Économiste s the month before, "Theft by Subsidy", 486 he responded to criticism of his First Series of Economic Sophisms which had just appeared in print that they were "too theoretical, scientific, and metaphysical." His response was to make sure that his future writings could not be accused of this again, which he did by peppering their pages with an "explosion of plain speaking." By this he meant that he would use very blunt, direct, even "brutal" language, such as "theft", "pillage," "plunder," and "parasitism," when describing the activities undertaken by the State which were accepted by most people as perfectly normal and "legal." So, in many of the essays written in 1846 and 1847 which were to end up in Second Series of the Economic Sophisms Bastiat wanted to make it perfectly clear what he thought the state was doing by regulating and taxing French citizens and to call these activities by their "real name," namely theft and plunder. Is this essay on "The Theory of Profit" he uses the word "pillage" repeatedly as part of this revised rhetorical tactic. It is also an indicator of what he was thinking concerning his planned "History of Plunder" in which he regarded the State as engaging in widespread "organised and legal plunder and pillage" of its citizens and taxpayers.
TextAs I was leaving the meeting hall on Monday, 487 a man came up to me and said: I listened to you carefully and you said the following, "At the end of the day, you have to know on what side truth lies. If we are wrong, let protection be taken to its limit. If we are right, let us demand freedom, etc. etc." - Well, Sir, that presumes that freedom and trade restrictions are incompatible.
"I think that this follows from the meaning of the words."
"So you have not read Le Moniteur Industriel ? It shows clearly that freedom, protection, and prohibition can be accommodated very well together according to the theory of profit ."
"What is this theory, then?"
"It is this, in short. Man wants to consume. In order to consume, he has to produce. In order to produce, he has to work, and in order to work he has to have the likelihood of making a profit , or better still, a guaranteed one."
"Very good, and what is the conclusion?"
"The conclusion is very simple; listen to Le Moniteur ! 'What measures should a nation adopt in order to produce a particular good at the highest level of production and by the shortest route possible, in order to have the maximum amount of consumption and well-being? Obviously it has to guarantee the profits for anyone who undertakes such an industry as this. It has to guarantee the profits of the producers.' "
"And how is this to be done?"
"Listen to Le Moniteur again: 'To develop production as far as possible sometimes calls for trade prohibitions, sometimes for tariff protection, and sometimes for free trade.' So you see that Le Moniteur Industriel is no more in favor of prohibition than it is for protection or for freedom."
"In other words, all industries have to gain one way or another. One that naturally yields a profit has to have liberty and competition, and one that naturally produces a loss, has the right to convert this loss into a profit through organized pillage. 488 We could say quite a lot about that. But you remind me of an event that I witnessed recently. Allow me to tell you about it."
"Go on."
"I was with the Mayor when an industry lobbyist came along and this is the conversation I overheard:
The Industrialist: "Mr. Mayor, I have discovered a reddish earth in my garden which appeared to contain iron, and I intend to set up a blast furnace in my home in the center of the town."
The Mayor : "You will ruin yourself."
The Industrialist : "Not at all, I am sure of making money out of it."
The Mayor : "How?"
The Industrialist : "Simply by making a profit."
The Mayor : "Where will the profit lie if you are forced to sell iron at the market rate of say, 12 or 15 francs, that perhaps will cost you 100 or even perhaps 1,000 francs to produce."
The Industrialist : "This is the reason I have come to see you. Give me the power to hold your town's people to ransom, not only until my losses are covered but well beyond that, and you will guarantee a profit for my industry."
The Mayor : "My authority does not extend that far."
The Industrialist : "I beg your pardon, Mr. Mayor, but do you not have a city toll?"
The Mayor : "Yes, and incidentally, I would like to base the town's income on another means of raising revenue."
The Industrialist : " Well then! Put the city toll to work for me; don't allow a single batch of iron to cross the toll booth. The people of Bordeaux will certainly be forced to buy my iron and at my price. "
The Mayor : "All the other producers will object."
The Industrialist : "Give them all the same legal favours.
The Mayor : "Very well. The outcome will be that, just as you will sell very little iron, we will also have very little bread, clothing, or anything else. It will be a regime of the least quantity ."
The Industrialist "What does it matter, if we all make a profit by pillaging each other legally and in an orderly manner?"
The Mayor : "Sir, your plan is a fine one, but the people of Bordeaux will not submit to it.
The Industrialist : "Why not? The French will submit willingly to it. I am asking from the city toll only what others are asking from the Customs Service."
The Mayor : "Well then! If the Customs Service is so obliging, go and talk to it and stop bothering me. The city toll is responsible for raising a tax and not for providing profits for manufacturers."
The Industrialist : "Mr. Mayor, just one more word. Suppose that my request had been successful twenty years ago; you would now have a blast furnace in the town center which would provide a living for at least thirty workers."
The Mayor : "Yes, and Bordeaux would perhaps be reduced to two thousand inhabitants." 489
The Industrialist : "You do understand that, if my proposal had come about, and you repealed the city toll, my thirty workers would now be without a job."
The Mayor : "And Bordeaux would be moving towards becoming once more what it is, a splendid city of one hundred thousand inhabitants."
The Industrialist, going away: ""What it is to deal with a theorist! 490 Not to understand the theory of profit ! But I will go and find the Head of the Customs Service, and my cause may not yet be lost."
475 The Mémorial bordelais was published between March 1814 and October 1862. It was a daily newspaper published in the city of Bordeaux which covered political, commercial, maritime, and literary matters of interest to the inhabitants of the department of the Gironde. Bastiat was a frequent contributor during 1846 writing a total of 20 articles between February and October.
476 See the glossary on the "Anti-Corn Law League."
477 See the glossary entry on "Association pour la liberté des échanges (The French Free Trade Association)."
478 See the glossary entry on "Le Libre-Échange."
479 His speeches for the free trade movement will appear in CW6 (forthcoming).
480 See the glossary entry on "Association pour la défense du travail national" (Association for the Defense of National Employment).
481 Antoine Odier (1766-1853) was a Swiss-born banker and textile manufacturer. He was a deputy (1827-37) and eventually a peer of France (1837). Odier was also president of the Chamber of Commerce of Paris and a leading member of the protectionist Association for the Defense of National Employment. Since he was a member of its Central Committee the organization was sometimes referred to as "the Odier Committee" for short.
482 Auguste Pierre Mimerel de Roubaix (1786-1872) was a textile manufacturer and politician from Roubaix who was a vigorous advocate of protectionism. In 1842 he founded a pro-tariff "Comité de l'industrie" (Committee of Industry) in his home town to lobby the government for protection and subsidies against a proposed Franco-Belgian trade treaty which was under discussion; and 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).
483 Le Moniteur industriel (founded in 1839) became 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. It was the intellectual stronghold of the protectionists and became one of Bastiat's bêtes noires.
484 See the glossary entry on "Octroi."
485 Bastiat played with this reductio ad absurdum argument in a number of his economic sophisms such as "La protection ou les trois Échevins" (Protection, or the Three Municipal Magistrates) [late 1847] [ES2.13] [OC4.2.13, pp. 229-41] in CW3, pp. 214-26, and "Le maire d'Énios" (The Mayor of Énios]) [ LE , 6 February 1848] [OC2.63, pp. 418-29] in CW3, ES3 18 pp. 355-65.
486 T.43 (1846.01.15) "Theft by Subsidy" (Le vol à la prime), JDE , Jan. 1846, T. XIII, no. 50, pp. 115-120; also ES2.9 [OC4, pp. 189-98] CW3, ES2 9, pp. 170-79.
487 The quote that follows comes from Bastiat's first public speech for the Free Trade Association . given in Bordeaux on 23 February, 1846:"Premier discours, à Bordeaux" (First Speech given in Bordeaux), 23 Février 1846. [OC2.42, p. 229-38] [CW6].
488 Bastiat uses the phrase "le pillage organisé" (organised pillage).
489 The population of Bordeaux in 1846 was about 125,000.
490 See Bastiat's critique of the sophism used by protectionists that although free trade might be fine in theory, it was not in practice, ES1 13 "Theory and Practice" (late 1845), CW3, pp. 69-75.
T.52 (1846.03.08) "To the Editor of the Époque" (MB, March 1846)↩
SourceT.52 (1846.03.08) "To the Editor of the Époque" (Au rédacteur de l'Époque), Mémorial bordelais, 8 March 1846. [OC7.12, 53??.] [CW6]
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T.53 (1846.03.12) "Free Trade in Action" (MB, March 1846)↩
SourceT.53 (1846.03.12) "Free Trade in Action" (Le libre-échange en action), Mémorial bordelais, 12 March 1846. [OC7.13, p. 58??] [CW6]
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T.54 (1846.04.01) "What is Commerce?" (CF, Apr. 1846)↩
SourceT.54 (1846.04.01) "What is Commerce?" (Qu'est-ce que le commerce?), Le Courrier français, 1 Apr. 1846. [OC7.14, p. 63??] [CW6]
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T.55 (1846.04.06) "To the Minister of Agriculture and Commerce" (MB, Apr. 1846)↩
SourceT.55 (1846.04.06) "To the Minister of Agriculture and Commerce" (À M. le ministre de l'agriculture et du commerce), Mémorial bordelais, 6 Apr. 1846. [OC7.15, p. 66??] [CW6]
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T.56 (1846.04.11) "To the Editor of the Courrier français" (CF, Apr. 1846)↩
SourceT.56 (1846.04.11) "To the Editor of the Courrier français" (À monsieur le rédacteur du Courrier Français), Le Courrier français, 11 Apr. 1846. [OC7.16, p. 71??] [CW6]
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T.57 (1846.04.15) "To La Tribune and La Presse on the Question of the Treaty with Belgium" (JDE, Apr. 1846)↩
SourceT.57 (1846.04.15) "To La Tribune and La Presse on the Question of the Treaty with Belgium" (La Tribune et la Presse; à propos du traité belge), Journal des Économistes, T. XIV, Apr. 1846, no. 53, pp. 1-9. [OC2.16, p. 81??] [CW6]
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T.58 & T.49 "Two Articles on Postal Reform II" (April 1846, Mem. bord .)↩
[CW4 draft 16 June, 2017] SourceT. 58 (1846.04.23) "Postal Reform" (Réforme postale), Mémorial bordelais , 23 Apr. 1846. [OC7.17, pp. 78-83.] [CW4]
T.49 (1846.04.30) "Postal Reform. 2nd article" (Réforme postale. 2e article), Mémorial bordelais , 30 Apr. 1846. [OC7.18, pp. 83-91.] [CW4]
Editor's IntroductionFor information about Bastiat's interest in postal reform, see the Editor's Introduction to "Two Articles on Postal Reform I", 3 & 6 Aug. 1844, Sentinelle des Pyrénées (above).
First Article (23 April 1846, Mem. bord .) (T2, FN)What has become of France's energy, her audacity and initiative, which so struck the rest of the world with admiration? Have we all shrunk to the size of Lilliputians? Has the intrepid giant turned into a timid and wavering dwarf? Is our national pride content for people to say of us: "they were once the premier swordsmen in the world?" Have we decided to turn our backs on the great glory of bravely marching down the path of reforms based solidly upon truth and justice?
We might be tempted to believe this on reading the inadequate program published by the Commission of the Chamber, emphatically entitled: Postal Reform . 491
The State has seized control of the transport and delivery of letters. I do not intend to dispute its taking over this sensitive service, on the grounds of the individual's right to engage in various activities, since the State carries it out with everyone's consent.
However doesn't it follow from the fact that since, for reasons of order and security, the State has decided to deprive its citizens of the ability to send each other messages as they please, it should not ask them to pay anything over and above the service provided?
Let us take the roads. They are used in the circulation of people and goods and such a high value has been attached to them that, after devoting huge sums to constructing them, the State hands them over at no cost for citizens to use.
Can it really be maintained that the circulation of ideas, the exchange of feelings, the transmission of news and relations between father and son, brother and sister, mother and daughter, are less valuable in our eyes?
Yet not only does the State get paid for the service of delivering letters, but it also subjects this delivery to an unequal and exorbitant tax.
I accept that the Treasury needs revenue. However, it will also be agreed that relationships between parents and their children, the outpourings of friendships, or the anxieties in families ought to be the last things to be the subject of taxation .
How very odd! As a result of a double inconsistency, a fiscal character is given to the Post Office but not to the Customs Service, 492 with the result that both are diverted from their rational objective.
A citizen certainly has the right to say to the State: "You cannot, without infringing my dearest-held rights, rob me of the ability to send in any way I choose a letter on which perhaps my fortune, my life, my honor, or my peace of mind depends. All that you can in justice do is to persuade me to turn to you voluntarily , by offering me the means of correspondence that are fastest, safest, and most economical."
If the principle were laid down (I ask for your indulgence for this very unparliamentary expression) that the State should not profit from the delivery of letters, the solution to all the problems raised by postal reform would be found with the greatest ease, for I have heard only one objection to a lower and uniform rate: the Treasury would lose so many millions of francs (to lose, in administrative language, is to fail to earn).
Genuine recovery of the costs incurred and a uniform charge for delivery, 493 these are the two subjects to which I will try to call the reader's attention.
But above all, I consider that I have to pay my full respects to the postal authorities. It is said that in England, it is in the Post Office that resistance to reform is organized. In France, on the contrary, reform seems to have arisen within the postal bureaucracy itself, if it is true that the first publication in which this subject has been discussed has to be attributed to a senior civil servant in the Rue Jean-Jacques Rousseau. 494 Never have I read a work that is freer of fiscal and bureaucratic attitudes, more imbued with ideas that are elevated, generous, or philanthropic and in which from each page emanates a love of progress and the public good.
Genuine recovery of the costs incurred. — If I am to be faithful to the principle that I laid down above, I have to ascertain first of all what the charge or rather the cost of each letter ought to be.
In 1844, 108 million letters were in circulation and, with a reduced charge, it would be impossible for this not to exceed 200 million.
Expences increased to fr. 30,000,000
From which should be deducted:
Packet ships to the Levant 495 fr. 5,200,000
Revenue from seats on mail coaches fr. 2,300,000
Transfers of money fr. 1,100,000
Payments from continental offices fr. 400,000
Revenue from journals fr. 2,000,000
Total: fr. 11,000,000
Remainder attributable to letters fr. 19,000,000
Furthermore, the administrative costs have to be charged rigorously in the ratio of one third of the additional services.
It remains true that 200 million letters at 10 centimes, produce 20 million, more than cover their cost.
We should note that at this price, letters would still pay a tax of 5 centimes, or 100 percent, since they would defray the cost of transporting government letters that equal their weight for free.
In view of this latter consideration, I say openly that if we did not live in an age in which we appear to fear the good when it appears to us in a slightly absolute form and to be quite relaxed about the dose of pain which would make it acceptable to us, I would say that a simple letter should cost only 5 centimes, 496 and certainly the advantages of the reform would then be so total that we should perhaps not have any hesitation. But let us make it 10 centimes, half to pay for the cost and half to pay for the tax.
The first advantage of this reasonable pricing, I hardly need to say, would be the quite proper satisfaction given to the most refined and worthy of people's needs concerning the moral order.
The second, to increase the number of transactions and business dealings far in excess of what would be necessary to make up, through other channels, for the loss of the current net revenue from the Post Office to the Treasury.
The third, to bring the sending of letters within the reach of all. The Chamber's Commission sets the cost of letters to soldiers at 10 centimes. 497 It is forgetting one thing, which is that, out of 34 million inhabitants, there are 8 million who are also soldiers, the soldiers of industry, 498 who once they have met the basic necessities of life, have not a sou left in their pockets.
Finally, a fourth and invaluable advantage would be to return to each French citizen the right to deliver letters and not to to create arbitrarily an entire category of artificial crimes.
I am surprised that people are not struck by the serious harm that there always is in legally defining actions that are innocent in themselves and often praiseworthy as misdemeanors and crimes. And in this case, see what a series of absurd and immoral actions you are forced to engage in when you base the Post Office on the principle of raising revenue.
The duty paid on letters is fiscal and is therefore bound to exceed by far the cost of the service provide d; therefore individuals will be encouraged to compete with the State; therefore the State will deprive them of an innocent and sometimes invaluable freedom; and therefore the State will have to impose a criminal penalty.
And what a penalty! Is it possible to read Article 7 of the Commission's draft legislation without feeling overwhelming disgust? 499 An act of simple kindness punished as though it were a heinous crime! Carrying a letter liable to a fine that may reach 6,000 francs! How many crimes are there against property or even against persons which carry penalties like this?
With a charge of 10 centimes, or better, one of 5 centimes, you have no need to create crimes. The list of these is long enough already. You are able to give everyone his freedom back. People will not take the trouble of looking for unreliable opportunities to send mail when the ones they have available to them are the most economic, convenient, direct, certain, and rapid.
Since I have mentioned punishments, I want to emphasise something in the Commission's draft which I am certain will outrage public feelings.
A person is engaged in delivering a letter. In itself, this act is not a criminal act. It is not the nature of things but the law, and the law alone, which has made it so. This person can be punished by a 6,000 franc fine and what is more, by another piece of legal fiction, the punishment may fall upon a third party who is not even aware of the fact (under article 8). 500
A civil servant uses his counter-signature improperly. This is also fraud, and what is worse, fraud of the worst possible kind, as it is premeditated, calculated, and intentional. What is more, there is falsification committed by a public official in public records. There is abuse of confidence and violation of an oath of office. The fine for this is 25 francs! What should I say about article 10: 501 the authorities may come to an agreement or compromise concerning any offense against these regulations both before and following a verdict, etc. ? Statements like this carry their own commentary.
So, transactions made difficult, feelings upset, family ties loosened, business dealings hampered, freedom restricted, grossly unequal charges, fictional crimes, and arbitrary punishment: these are the inevitable consequences of the principle of revenue raising introduced into the law on postal services.
For this reason recourse has to be made to this other principle, that the Post Office ought to provide the service for which it is intended and at the lowest price possible, that is to say, one that covers its costs.
It remains for me to discuss the uniform charge for delivery, together with the means of covering the Treasury's deficit. This will be the subject of another article.
Second Article (30 April 1846, Mem. bord.)The uniform charge of delivery for letters has so many incontestable and obvious advantages that you have to close your eyes deliberately in order not to see them.
The following objection is raised: "A uniform charge is contrary to the very principle you have stated, that of simply paying for the service received, because it is fair to pay more in proportion to the extra cost involved.
Apparent equality would be none other than actual inequality."
However, do not we all, in everyday life, write letters to destinations that are sometimes distant and sometimes quite close? Equality is based on this notion, and nothing stops an average being taken of all the distances a letter may be considered to have covered. 502
Wherever, in similar cases, a uniform charge is established for the delivery of journals or money, the correct formula must have been found, since nobody objects to it.
What is more, there comes a point at which, in practice everything has to come to a halt, even the strictest justice, and this is when such microscopic differences, such infinitely tiny and minute divisions are reached, that putting them into practice is a burden for everyone. Does the Commission's system claim to achieve mathematical equality? Are letters delivered at eight o'clock charged at a higher price than those delivered at nine? Is it governed by the ratio existing between one recipient who lives at a distance of 39 kilometers and another at 40?
Therefore when we speak of equality, what must be understood is an equality that is possible and practicable and which, for example, does not require change to be given for a centime.
And this is precisely what would happen with a system of graduated charges if account were taken of the minutely scaled, unreal conception of fairness it hides behind.
For it has been proved that the cost of transport, the cost that affects letters in different ways, alters the cost from one zone to another by a mere ½ centime. 503
But since it is in the name of equality and equity that the Commission has decided in favor of a graduated charge, let us examine its system from this point of view.
First of all, it is based on the principle that the Post Office ought to be a fiscal instrument and that, while the State exhausts its revenues in facilitating the circulation of goods, it ought to create a source of revenue for itself from the circulation of sentiment, affection, and ideas.
It follows from this that there are three elements in the delivery of a letter:
1. A tax.
2. The recovery of costs common to all letters.
3. The covering of costs that vary with distance.
It is clear that, with regard to the first two elements, the charge for all letters should be uniform and that a graduated payment can arise equitably, only in the case of the third.
It is therefore necessary to determine its size.
The general costs common to all letters, administration, inspection, monitoring, etc. come to 12 million, which we can reduce to 10 since part of these costs is absorbed by services outside the subject with which we are dealing, such as the transport of fifty thousand travelers, the transport of money, packet ships, etc. 504
Transport costs come to 17,800,000 francs, which can also be reduced to 10 million, as we have seen in the previous article, if those not related to mail are deducted, as they should be.
These costs have to be spread over:
875,000 kilograms of letters amounting to 116 million ordinary letters
1,000,000 kilograms of newspapers and printed matter, 133 million letters
1,000,000 kilograms of business documents, 133 million letters
Total 382 million letters
Or in round numbers 400 million ordinary letters.
So we have 10 million francs of fixed costs spread over 400 million letters, which gives for each 2½ centimes
10 million francs of graduated costs add to the cost price an average of 2½ centimes
Total 5 centimes
Finally, as the average cost of a letter today is 42½ centimes, it follows that the proportion of each of the three elements in this cost is as follows:
Fixed costs 2½ centimes
Graduated costs 2½
Tax 37½
Total 42 ½ centimes
If, as the partisans of the radical reform demand, the purely fiscal element is eliminated, delivery would be set at 5 centimes, the cost price. In this case, the State would have to subsidize the delivery of official correspondence.
Or, if 10 centimes were adopted, letters from individuals would still pay a tax sufficient to cover the cost of the public service.
In either case, a uniform charge is obligatory since the transport costs, the only ones that could possibly justify a graduated charge, average only ½ centime. The result is that the shortest distance costs 1¼ centimes and the longest 5 centimes.
The rate based on this principle should therefore be as follows:
Fixed costs | Graduated costs | Total or rate charged | |
Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 |
2 ½ 2 ½ 2 ½ 2 ½ 2 ½ |
1 ¼ 1 6/8 2 ½ 3 ¾ 5 |
3 ¾ 4 3/8 5 6 ¼ 7 ½ |
This rate is obviously unrealizable. It would be no less so if a fiscal charge were added, since it would have to be immutable, for example, 20 centimes. And in this case, we would have the monstrous rate of:
Zone 1: 23 ½ centimes;
Zone 2: 24 3/8 centimes;
Zone 3: 25 centimes, etc.
Well, what has the Commission done, in the name of equality? It has made the tax unequal, and its rate when broken down gives the following results:
General costs | Graduated costs | Tax | Total charge proposed | |
Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 |
2 ½ 2 ½ 2 ½ 2 ½ 2 ½ |
1 ¼ 1 3/8 2 ½ 5 ¼ 5 |
6 ¼ 15 5/8 25 33 ¾ 42 ½ |
10 20 30 40 50 |
Was I not right to say that the Commission's system established a tax that was as unequal as it was exorbitant, since for some people it was twice and for others ten times the cost of the service provided?
Thus serious equality exists only in uniformity. However, a uniform charge implies a nominal charge and, so to speak, one that is reduced to a practical minimum.
Twenty centimes has been bandied about. But at this rate a category of letters at 10 centimes would be needed (those that circulate within the radius of a post office), hence the requirement of sorting, assessing duty, and consequently the impossibility of ever achieving a system based upon compulsory stamping.
I have just uttered the word compulsory stamping. 505 It is possible only with a charge of 10 centimes, or better still 5 centimes, and the advantages of this are so obvious that it ought to be a matter of surprise if the objection of the loss to the Treasury prevailed, as though the Treasury were not the general public.
Let us calculate what the current work of the Post Office is and what it would be after the reform as proposed to us by the Commission. One hundred letters are posted. Each of them, in terms of distance, may come into eleven zones and, with regard to weight, nine classes, which raises the number of combinations to ninety-nine for each letter. Here we have the Post Master, consulting his table and his scales in turn for each letter, required to check 9,900 possible alternatives in a few minutes. After this, he notes the weight on one corner and the charge in the center of the address. 506
Is postage needed? He will take the money and give change, note the address in I do not know how many registers, wrap the letter in a form that states, for the third or fourth time, the name of the recipient, the place of departure, the place of arrival, the weight, the charge, and the number.
Then comes delivery. There are other interminable accounting procedures between the Post Master and the postman, the postman and the recipient, and a continuous series of inspections and more paperwork upon paperwork.
What should I say with regard to the work resulting from rejections, overcharging and undercharging, and general accounting; this masterpiece of complication, intended to ensure the compliance of postal workers at all levels,? Is this really necessary?
Is it not odd that millions are spent to save one hour by speeding up mail delivered by coaches and yet more millions are spent to have the distributors of mail waste this hour?
With compulsory stamping, all this slowness, complication, and paperwork, all these rejections, the overpayments and underpayments found, the sorting, the charges, the accounting that takes a prodigious amount of material and finance will all suddenly disappear in a trice. The Post Office and registration will sell envelopes and stamps at 5 or 10 centimes and that will be the end of it.
The objection will be made that it would be arbitrary to deprive senders of the ability to send a letter that is not stamped.
They will not be prevented from doing this. Let us remember that, under these arrangements, they are entitled to send their letters in any way they like, and therefore they cannot complain if the Post Office is determined to remain in control of the means in order to make the service as rapid and economical as possible.
Let us be frank. From a moral point of view, and the point of view of civilization, business, and personal sentiment as regards convenience, simplicity, and the speed of the service, in a word, in the interest of justice and true equality, there can be no possible objection to a uniform and moderate charge.
The loss of revenue! That is the sole and unique obstacle.
The loss of revenue! That is why a huge and unequal tax strikes at the communication of ideas, the transmission of news, anxieties of the heart, and the torment of absence! That is why our Law Codes are swollen with fictional crimes and real punishments. That is why the time gained with the speed of the mail coaches is lost in the delivery of letters. That is why the service is overloaded with intractable complications! That is why it is subject to a system of accounts based on 40 million divided into amounts of 40 centimes, each of which gives rise to at least a dozen book keeping entries! 507
But in the end, what is the amount of this loss?
Let us take it to be 20 million francs.
People will doubtless agree that this sum, left in the hands of taxpayers, would be used to buy sugar, tobacco, and salt and that this would reduce the loss to the Treasury.
They will also agree that the frequency and ease of communications, by increasing business, will have a favorable effect on all the sources of public revenue.
Moreover, the number of letters cannot fail to increase from year to year.
Finally, once the service is simplified to a such a degree, it will certainly enable considerable savings to be made.
Once all these savings have been taken into account, let us suppose there is still a loss of 10 million francs.
The question is to know whether you can use 10 million more usefully, and I am bold enough to challenge you to show me in the budget, as huge as it is, 508 an item of expenditure that is better understood.
Seriously then, at a time when you are spending 1 billion to facilitate the circulation of people and goods, are you really hesitant to sacrifice 10 million to facilitate the circulation of ideas!
Will you not ask yourself whether it is wise to overlook revenue of 10 million when it is a question of giving the general public so many inestimable advantages?
For if the number of letters merely doubles, who would be able to put a figure on the value of the business carried out, the human longings satisfied, or the anxiety dispelled by this increase in correspondence?
And is it a negligible matter to remove from your law codes illusionary crimes, arbitrary punishments, and the immoral manoeuverings between administrative caprice and the decrees of the courts?
Is it a negligible matter to hand over to a poor laborer the letter from his son for which he has waited so long, without snatching from him the profit from fifteen hours of heavy work, almost all of it for tax?
Is it a negligible matter to refrain from reducing a destitute widow to leaving the letter that will tell her whether her daughter is still alive at the post office for two weeks, so as to scrape together the 24 sous demanded (of which 22 are pure tax)?
This very day, I read in Le Moniteur that the figure for public revenue was increasing each quarter.
Why is it then that the time is never right for the most urgent reforms not to be postponed or spoiled by this eternal consideration: the loss of revenue?
Above all, do you absolutely need 10 million francs? You have one easy way of raising this sum. Return to the true nature of things by doing these two things. At the same time as you remove the fiscal nature of the postal tax, restore it to the Customs Service. Merely reduce duties on iron, coal, cattle and flax by one quarter.
The Treasury and the general public will benefit from this. Each of these reforms will facilitate the other; you will have paid homage to two principles of eternal justice and your future electoral manifestos will at least be based on something more substantial than "order with freedom" and "peace with honor", those commonplace sentiments which, if they make no commitment to anything, will not mislead anyone either.
491 Possibly the following: Projet de réforme postale, par un directeur comptable des postes. 23 février 1846 (Impr. de Robin, (s. d.)).The Report was presented to the Chamber by Adolphe Vuitry on 13 April 1846: No. 115. Chambre des Députés. Session 1846. Rapport fait Au nom de la Commission chargée d'examiner le projet relatif à la taxe des lettres, par M. Vuitry, Député de l'Yonne. Séance du 13 avril 1846 , pp. 317-67. In Procés-verbaux des séances de la chambre des députés. Session 1846. Tome V. Du 7 au 14 avril 1846. Annexes Nos. 107 à 132 . (Paris: A. Henry, 1846).
492 Bastiat distinguished between "fiscal tariffs" on imported goods at a low rate of 5% in order to raise revenue for the state, and "protective tariffs" higher than that which were designed to shield domestic producers from foreign competition.
493 The model for reformers like Bastiat was the English "Uniform Penny Post" which was first introduced in 1839 as a uniform 4 penny stamp for all letters and then cut to a penny stamp in 1842.
494 The central postal administration was located in the Rue Jean-Jacques Rousseau in Paris. The book Bastiat is referring to might be A. Piron, Du service des postes et de la taxation des lettres au moyen d'un timbre (Paris: H. Fournier, 1838). Piron was Deputy Director of the Postal Service.
495 Mail to the Levant was transported on ships carrying passengers and freight between Marseilles and the ports of the Middle East.
496 Bastiat was quite consistent in his demand that the rate for letters be reduced to 5 centimes, which he continued to advocate in 1848 when the measure come up for a vote in the Chamber. Nevertheless, he was also willing to compromise and accept a cut to only 10 centimes in order to get some cut in the rates passed by the legislature and to help balance the Budget.
497 This was a subsidy for men serving in the French army and navy who were often posted far from their homes. ( pun deliberate!!)
498 At this time the size of the French Army was about 400,000 men who were able to enjoy subsidised mail service. Bastiat is saying that ordinary French workers, "les soldats de l'industrie" (the soldiers who work in all productive activities), should also enjoy lower costs for sending letters.
499 Article 7 stated that mail delivery is the monopoly of the government, Rapport fait Au nom de la Commission chargée d'examiner le projet relatif à la taxe des lettres , p. 365.
500 According to Article 8 owners of trains or carriages can be held legally liable for the private actions of their employees. See, Rapport fait Au nom de la Commission chargée d'examiner le projet relatif à la taxe des lettres , p. 365.
501 Rapport fait Au nom de la Commission chargée d'examiner le projet relatif à la taxe des lettres , p. 365.
502 ( Bastiat's note. ) If you receive 4 letters at 30 centimes, 4 letters at 20 centimes and 2 letters at 1 franc in the space of one year, is this not as though you had paid a fixed rate of 40 centimes for each letter, which is the average for the current system?
503 See, Michel-Charles Chégaray, Rapport fait au nom de la Commission chargée d'examiner la proposition de M. de Saint-Priest, relative aux tarifs de la poste aux lettres (July 1844), p. 17.
504 All the figures here come from Chégaray's Rapport , pp. 10 ff.
505 This was the "modern" idea that a letter could not be delivered without a prepaid stamp attached to the envelope.
506 Bastiat mocks this complicated system for determining the charge for sending letters in "Le sel, la poste et la douane" (Salt, the Mail, and the Customs Service), JDE , May 1846, T. XIV, pp. 142-152. This article later appeared in ES2 12, CW3, pp. 198-214.
507 In 1848 the French government received a total of 51.7 million francs in revenue from the various activities of the Post Office, including 46.5 million francs from tax on letters.
508 According to the Budget figures for 1848 the French government spent a total of 1.446 billion francs and received 1.391 billion francs in revenue, which produced a deficit of 54.9 million francs.
T.60 (1846.05.02) "Commercial Liberty" (MB, May 1846)↩
SourceT.60 (1846.05.02 "Commercial Liberty" (La liberté commerciale), Mémorial bordelais, 2 May 1846. [OC7.19, 91??] [CW6]
Text(insert HTML of file here)
T.61 (1846.05.02) "First Letter to the Editor of the Journal des débats" (JDD, May 1846)↩
SourceT.61 (1846.05.02 "First Letter to the Editor of the Journal des débats" (Lettre au rédacteur du Journal des Débats. Première lettre), Journal des Débats, 2 May 1846. [OC7.20, p. 96??] [CW6]
Text(insert HTML of file here)
T.62 (1846.05.10) "Declaration of Principles of the Free Trade Association"↩
SourceT.62 (1846.05.10) "Declaration of Principles of the Free Trade Association" (Déclaration de principes (Association pour la liberté des échanges)) 10 May, 1846; reprinted in LE 25 Apr. 1847, no. 22, p. 169; along with the Association's new programme.[ OC2.1, pp. 1-4.] [CW6]
Text(insert HTML of file here)
T.63 (1846.05.14) "Second Letter to the Editor of the Journal des débats" (MB, May 1846)↩
SourceT.63 (1846.05.14 "Second Letter to the Editor of the Journal des débats" (Lettre au rédacteur du Journal des Débats. Seconde lettre), Mémorial bordelais, 14 May 1846. [OC7.21, p. 99??] [CW6]
Text(insert HTML of file here)
T.64 "On Competition" (JDE, May 1846)↩
[CW4 draft 16 June, 2017] SourceT.281 (1846.??) "Competition" (Concurrence), 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 (Paris: Au bureau de l'Encyclopédie du dix-neuvième siècle, Impr. Beaulé, Lacour, Renoud et Maulde, 1846). Tome huitième, pp. 389-400. Probably early 1846. Republished as "On Competition" in JDE, May, 1846. See T. 64. Not in OC. Revised for EH, 1st ed. chap. 10.
T.64 (1846.05.15) "On Competition" (De la concurrence), JDE , May 1846, T. XIV, no. 54, pp. 106-22; also EH chap. 10. 2nd half very similar, 1st half quite different. A note states that this article was written for l'Encyclopédie du dix-neuvième siècle (no date given). [DMH] [CW4]??
Editor's IntroductionWe know that Bastiat had ambitious plans to write a treatise on economic and social theory before he came to Paris. 509 These plans firmed up at the beginning of 1846 when he began to get some recognition from his colleagues and peers with the successful publication of his second book, Economic Sophisms , in January 1846, and his appointment to the Academy of of Moral and Political Sciences on 24 January. Although he became increasingly busy setting up a Free Trade Association, first with a regional one in Bordeaux in February and then a national one in Paris in May, he also found time to begin publishing articles which would eventually be turned into chapters in the treatise Economic Harmonies (Jan. 1850). In 1846 he published two articles, one "On Competition" in the first half of the year (which would become the final chapter 10 in the first edition), and a second "On Population" in the second half of the year (which he would substantially rewrite and which would become chapter 16 in the expanded second edition which was published by his friends in July 1851 after his death).
Both articles were written for an Encyclopedia edited by Ange de Saint-Priest 510 before they were revised slightly and republished in the JDE also in 1846 (May and October). They were then revised again, this time more substantially, probably over the summer of 1849, as Bastiat was working hard getting the manuscript of volume 1 of the Economic Harmonies ready for printing in December 1849. It should be noted that this is another example of Bastiat attempting to popularize economic ideas for a broader audience. Both articles were written while he was also writing what were to become his "economic sophisms."
Bastiat would not return to working on his book until late 1847, no doubt because for much of 1846 and 1847 he was working full-time for the FFTA especially after the launch of its journal Le Libre-Échange in November 1846 which he edited and largely wrote. He would complete three more chapters during 1848 which he published in the JDE, two of which were explicitly called "Economic Harmonies: "Natural and Artificial Organisation" (Jan., 1848) which would become chapter 1; "Economic Harmonies: I, II, and III. The Needs of Man" (Sept., 1848) and "Economic Harmonies IV" (Dec. 1848) which would become chapter 2 "Needs, Effort, and Satisfaction" and chapter 3 "The Needs of Man". 511
After getting distracted again by his political and journalistic duties in early 1849 he was persuaded by his friends and supporters Hortense and Casimir Cheuvreux to use an exclusive lodge in some woods outside Paris (possibly with their financial assistance) over the summer so he could work undisturbed on the project. An early biographer of Bastiat, Ronce, believes that he was able to complete the rest of volume 1 (6 chapters on Exchange, Value, Wealth, Capital, Property and Community, Landed Property) because it was already largely written "in his head" many years before. 512 After writing an impassioned plea "to the youth of France" as an introduction and a rather apologetic conclusion, the book was finally published in late December. 513 He must have secretly known at this time that he would not live to see the work completed as his health was rapidly failing.
We are including this essay here because it was substantially revised for the book and the changes he made are interesting to show how his thinking was evolving during this period. It should also be noted that this is the first part of the book he ever wrote and it appeared as the final chapter in volume 1.
Things to note in this essay include the following.
It was written to counter the growing socialist criticism of competition that it is very destructive and harmful to the interests of workers and that it should be replaced by not-for-profit, worker-run "organisations" and "associations." Bastiat countered by arguing that competition creates a "genuine community" among people and not an "artificial" and "forced" one which the socialists wanted to impose on society. He called competition a "beneficent force" since producers are forced to compete with each other to supply more useful things to consumers at lower cost, thus saving them labour, effort, and discomfort. Furthermore, the accumulation of capital, especially in form of tools, reduces the amount of hard physical labour workers have to do and replaces it with more "intelligent", educated, and productive labour which eventually results in higher wages for workers.
Bastiat provides here for the the first time the story about what things an ordinary worker has in his home or workshop which come from around the world as a result of international trade and open markets. Here he visits a member of the "industrial class" and describes what he sees. Elsewhere, he talks about a "village carpenter" and all the things others, both domestic and foreign, have provided him with to make his life easier and more comfortable. 514
He points out that every person is both a producer and a consumer at the same time, and that the forces of competition are at work in both areas. As a consumer, the worker benefits from the competition between producers to create more things and sell them at the lowest possible prices. As a producer or seller of labour, the worker is also competing with other workers to sell their labour. Any calculation of a person's total welfare has to include the positives and negatives on both sides of the competitive process. Bastiat thought the balance was definitely in the workers' favour.
One of the important additions he would make for the EH1 version of this article was a new section on what he called "les causes perturbatrices" (disturbing factors) 515 which prevent the natural harmony of the market and competition from creating as much wealth as it might in their absence. In this article here, Bastiat points out that " in modern societies, competition is far from fulfilling its natural role; our laws hinder it at least as much as they favor it" and mentions in particular "conquest, monopolies, trade restrictions, privileged positions, high government posts and influence, the trafficking in administrative deals, and loans from public funds" as examples of things which prevent the beneficent effects of competition being felt. He does not yet use the term "disturbing factors," although he had referred to it a few times since his first use in his "Letter to Lamartine" (JDE, Feb. 1845), 516 probably as he had not yet fully incorporated it into his thinking.
In the new introduction he wrote for the EH1 version he argues that the socialists falsely accuse competition of causing the harms which he believes results from these disturbing factors:
While the Socialists see Competition as the cause of all harm, it is in the violations it (competition) receives that one has to look for the disturbing factor which (harms) all the good.
In the four new pages of material he inserted he observes that:
I will now set out general laws that I believe to be harmonious, and I am confident that the reader also will begin to guess at the existence of these laws, that they act in favor of the community and consequently of equality. However, I have not denied that the action of these laws has been profoundly disrupted by disturbing factors. Therefore, if we now find some shocking example of inequality, how can we judge it without being conversant with both the regular laws of social order and the disturbing factors which distort these laws?
Bastiat's use of the term "ceteris paribus" (or "all other things being equal") 517 was not common among political economists of his period. John Stuart Mill used it as early as 1836 in "On the Definition and Method of Political Economy" and in A System of Logic (1843) but there is no evidence that Bastiat was aware of his work. 518 He first used it in a paper he wrote in 1834 on "Reflections on the Petitions from Bordeaux, Le Havre, and Lyons Relating to the Customs Service" (April 1834), 519 and began using it in earnest in 1846 and thereafter. Thus, it appears that Bastiat was an independent early adopter of the phrase and it reveals the depth and growing sophistication of his thinking about economic problems and their solution.
There is also here an early reference to a concept which Bastiat will develop much further in the article "Natural and Artificial Organisation" (January 1848) and an unfinished chapter in EH2 Chapter 22 "Le moteur social", namely "le mécanisme social" (the social mechanism) By this Bastiat meant that society was a "mechanism" (le mécanisme social) or what we might today call a "process," which had moving parts, like a watch or a clock, which consisted of "les rouages" (cogs and wheels), "les ressorts" (springs), and "les mobiles" (the movement, or driving or motive force). Bastiat described the social mechanism as "a prodigiously ingenious mechanism (which) is the subject of study of political economy." Here he mentions it but does not go into much detail except to assert that competition was the driving force of this social mechanism. 520
One of Bastiat's innovations in economic theory was to stress the importance of consumptions as "the end" or purpose of economic activity and that production was "the means" to attain that end, thus turning classical economic theory on its head. We can see several references to this new way of thinking in this essay, particularly in the passage where he states unequivocally that "the real focus of economic science" were "the laws of consumption, and what promotes it, equalizes it, and makes int moral" 521 and chastises the classical economist Pellegrino Rossi for ignoring it.
Related to this stress on consumption was Bastiat's view about the importance of leisure which increasing prosperity made possible. He will return to this question later in 1849 in two important publications, his pamphlet on Capital and Rent (Feb. 1849) and in "Letter No. 4: F. Bastiat to P. J. Proudhon" (26 November 1849) in his debate with Proudhon on Free Credit . 522 In Capital and Rent where he says:
And here we can glimpse one of the finest harmonies in the social world. I am referring to Leisure, 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. 523
And in a virtual hymn to the befits of leisure made possible by the accumulated wealth and general prosperity made possible by the free market, he states:
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. 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. 524
There are several significant differences between the two versions of the essay which should be noted. The revised chapter in EH1 is 50% longer (12,000 vs. 8,000 words) than the JDE article. The original Introduction of 21 paragraphs (2,100 words) was replaced in the EH version with a new introduction of 4,000 words in which Bastiat more directly replied to the socialists' criticism, which had been amplified by the February Revolution, that competition was "anarchic" and harmed the interests of the workers. A short new section of 648 words was added with a more detailed discussion of how many people laboured to produce simple everyday objects in order to show that all labour is "cooperative labour." And finally, he added a new section of 1,895 words on the justice of the monetary return to capital, the mutually dependent relationship between the two classes of capitalists and workers, the effect of competition on wages, and the idea that there was a "centrifugal" as well as a "centripetal" force at work in competition. Socialists focussed on the centrifugal force which acted to pull things apart and ignored the centripetal force which drew things together. Bastiat believed both forces needed to be taken into account in order to understand the true impact which competition had on society.
TextI am going to discuss 525 the effects of one of the laws to which Providence has entrusted the progress of human society, a law which has as its purpose to equalise well-being and material circumstances among the members of the great family of mankind; to bring to the realm of the community the enjoyment of goods which nature seems to have reserved for certain countries, and the conquests of which (nature) have led to the hard work of each century to increase the wealth of the generations which follow; a law rich with social harmonies, 526 huge in its general impact, but often harsh in its operation; a law misunderstood in our time, and which, more than any other, attests to the unmeasurable superiority of the designs of God over the vain and powerless associations of men.
What is this fatal power against which we have struggled in vain ever since the carefree days of our youth began to pass us by? which leaves us no time to learn what is indispensable to know? which flings us onto the tumultuous byways of the world, and which, as it frustrates our desires for the things we hope for, never stops shouting at us: "March! March! He who does not run over other people will get run over"?
My goodness! The response which rises up is immense and unanimous from all corners of the globe, from the palace and the humble cottage, from the largest farms and the sharecroppers, from the construction site and the workshop, from the department store and the corner shop, from the office and the study, from the bank and the office, from the great hall of the stock exchange and the antechambers of government : It is Competition ! Competition !
But what is this beneficent force which achieves this surprising miracle of which my eyes are the witness? I am admitted into the home of one of these men from the industrial class 527 who is annoyed by competition, and what do I see? I see that he consumes in one day what he couldn't manage to produce during the entire span of his life, even if 10,000 lives came to be added to his end-to-end. And when I try to calculate how much time, effort, capital, tools, and vehicles are needed so that his office gets the simple furnishings that I find there; so that these carpets, armchairs, curtains, porcelain china, bronze statues, and crystal ware came to be gathered in this narrow space; 528 when I consider that what is there is only one one thousandth part of what my host has obtained from the general market place of the world; 529 that nevertheless he has stolen nothing from anybody, nor robbed anything from anyone; that he has really produced the value of of these innumerable things without busying his hands with anything else but using a pen, a needle, a shuttle, or a plane; when I come to think of this apparently huge disproportion I have just mentioned between the production and consumption of an individual, that this surprising miracle is becoming a reality, to some degree or another, for the benefit of all mankind scattered across the surface of the globe, how extraordinary, how contradictory even, that this could come to be; then I am struck with astonishment at the beauty, majesty, and the power of this social mechanism which has competition as its driving force, 530 and leaving for others the ambition of inventing a more ingenious organisation , 531 I will limit mine to studying, understanding, and admiring it, and I hope, if I can, to describe what has come ready made out of the hands of eternal wisdom.
Therefore, because man has two very distinct relationships with labor, because he is in turn a producer of useful things which he does not consume, and a consumer of useful things which he does not produce, relative to him competition must be seen from two different perspectives.
From the first point of view, from the individualistic point of view, the private, inveterate, and eternal thought of all workers is the solution of this problem: " To make sure that the useful things which I bring to society are as sought after and as rare as possible. " And this is why the producer, as producer, reacts against his competitors, disapproves of them, attempts to destroy them as much as he able to, and calls to his aid the use of force, fraud, the law, sophisms, 532 tariffs, monopoly, trade protection, and restrictions.
But the social problem is this: " To make sure that, for any given work which an individual brings to the general market, they get from it a sum of useful things which tends constantly to INCREASE and be MADE MORE EQUAL ." We will see that this is the task of competition .
To begin we have to establish the fact that the utility which every object contains has been put there by the cooperation of two forces, nature and labour .
Wheat owes its utility in part to the bounty of nature, air, light, warmth, and to the nutrients which nature has made available to us. On the other hand, it needed to be worked on, sown, harrowed, and harvested. When it comes to turning this wheat into flour, nature supplies the force of gravitation which is put to work with the falling water, the hardness of the mill stone, and man contributes to the final result by supervising and regulating the action of these forces, by directing them to a given end. — This is how it is for all industry.
Of these two forces which cooperate in the production of useful things, one of them, that of nature, is free ; the other, that of labour, is alone the subject of exchange, payment, and value .
However valuable a service provided by nature might be, if the hand or genius of man is not part of it, it is free, it is devoid of value in the economic sense of the word. Human industry has never produced and never will produce anything as useful, necessary, and indispensable to us as water, air, warmth, light, and yet we enjoy them for free when our bodies receive them immediately from nature, without the intervention of any effort. But, in order to have water it is necessary to go looking for it at a great distance, it is an effort which one has to undertake oneself or pay for. 533 If we wish to separate the air we breathe into its component parts, for example hydrogen gas to fill a balloon, there is work to carry out; and here is the reason why hydrogen gas, which is only part of the air has a value , while breathable air, which is the whole, does not.
Were we to review all the objects we buy and sell we would always find that they have a composite utility: one part has been supplied by nature and that is free , the other part has been supplied by labour and that is the object of exchange, for the very simple reason that in order to enjoy a useful thing which has cost some effort to obtain, one has to undertake the effort oneself or pay back in one form or another the person who undertook the effort for you.
The desire which all men feel to improve their condition leads him to increase as much as he can the cooperation of nature in the production of utility. It is here that the field is wide open to human genius. 534 Water, wind, heat, light, gravitation, electricity, all the laws of the physical world are increasingly used to make their contribution. From this it follows that from one generation to the next a given quantity of human labour can, so to speak, serve as a vehicle for a much greater sum of the services of nature and this shows us that there is nothing about the social problem which is insoluble or contradictory, which I stated earlier in these terms: "To make sure that human consumption increases more rapidly than his labour."
Not only is progress, thus defined, possible, but it is necessary, it is inevitable, and it is a providential consequence of the perfectibility of our faculties; and we will see well-being spread rapidly among the human species, if, by another law which we will not concern ourselves with here, 535 it does not increase in number at the same rate as it capacity for production.
I needed to briefly discuss these general ideas here in order to show the social action of competition in all its power and in all its harmonies.
What is exchanged, what forms the basis of our transactions, I have said, is labour, is discomfort, is effort, such that one could, in more common language, define political economy as the theory of the services which men provide each other, like "I owe you one!" or in tit-for-tat fashion. 536
But labour is not a homogeneous quality, an absolute quantity which can be weighed or numbered, which can be measured by a chronometer or a dynamometer. 537 There is only labour which is more or less preferred in the social context in which it is carried out; more or less clever, difficult, dangerous, risky, or even enjoyable. Besides, one must not lose sight of the fact that it is only given up 538 voluntarily, that each person remains the judge of the pain which he demands in return for the pain which one gives up, as well as the circumstances which can determine whether it is demanding or easy. Thus there is no reason to be surprised that there might be a great inequality in payment for labour and, ultimately in the well-being of human beings.
Lets us now examine the principle circumstances which influence this inequality and how it tends to disappear under the action of competition.
One of the most obvious is the possibility of seizing control of one of the natural resources which I mentioned earlier. These resources are not distributed equally across the globe. In one place the soil is more fertile; in another place the heat of the sun is more intense; in such and such a place there are large deposits of coal; yet in another there are rivers full of fish.
Without competition , those who are within reach of these natural advantages would only allow other people to share in them by making them pay an excessive and permanent amount; with the result that we would pay the producer not only for his effort but for the gifts of nature. A man who lives in the tropics could say to a European, "Thanks to my hot sun, I can get a bail of cotton with an effort equal to ten, while you could do it only with an effort equal to 100 . Now, for you to sell this cotton, it is not my effort which is the measure of my demands, but yours. God did not give a climate with high temperature to you but to me. So, here is my cotton, give me in exchange for it something on which you have expended an effort equal to a hundred or there about. If not, grow the cotton yourself." But competition does not permit these intolerable kinds of markets to exist. It doesn't allow a man to be paid for an effort which he did not make, for labour which he has not done, and it tends to make common and free for all men these natural goods which appear to be the exclusive privilege of a few.
Men in the tropics have not been able to impose their claim to measure the value of their wages by the amount of my effort and not by that of their own. If their efforts are too highly paid it will not fail to encourage rivals to enter the market. Competition has entered the picture; cotton has been offered at a discount to the point where the European pays, with an effort equal to ten, what the Indian produces with an effort equal to 10. Now, when things have reached this point, when I am prepared to give for a bail of cotton only an effort equal to one tenth of that which I would have taken to produce it in France, then will I demand it, and isn't there then an exchange of labour for labour, and, as far as I am concerned as a European consumer, don't I get into the bargain , the cooperation of the tropical climate? Thus, thanks to competition , I have become, and all men have become, just like the Indians and the Americans, that is to say, participants in the generosity of nature as far as the production of cotton is concerned, and are able to get it for free . It is the same for all products imaginable. 539
There is a country, England, which has numerous coal mines. Obviously this is a considerable local advantage, especially if we assume, as I will, to keep the argument simple, that there is no coal on the continent. As long as it is not traded, the advantage to the English is to have a greater abundance of fuel than other nations, which they can get without much effort and without taking too much of their valuable time. As soon as trade appears, on the assumption that there is no competition, the exclusive possession of the mines makes it possible for them to ask for high prices and to set a high price on their efforts. As we can neither make these efforts ourselves nor go elsewhere, we will have to put up with this. English labor as applied to this type of activity will be very well paid; in other words coal will be expensive, and nature's bounty may be thought of as having been conferred on one nation rather than on the human race.
This state of affairs, however, cannot last. There is a great natural and social law which opposes it, namely competition. For the very reason that this type of work is very well paid in England, it will be much sought-after, for people are always looking for high earnings. The number of miners will increase both through addition and through the birth of children. They will offer themselves at a discount and will be content with constantly declining pay until it reaches the normal rate, the level paid generally in the country for all similar work. This means that the price of English coal will decrease in France and that a given quantity of French labor will obtain an increasingly large quantity of English coal, or rather of the English labor that is bound up in the coal. In the end, it means, and this is what I ask you to note, that the gift that nature appears to have given to England has in reality been given to the entire human race. Coal from Newcastle is generously given free of charge to all men. This does not constitute either a paradox or an exaggeration: it is generously given to them freely, like the water from a stream, on the sole condition that people take the trouble to go in search of it or that those who take this trouble on our behalf are compensated for this. When we buy coal, it is not the coal that we are paying for but the labor required to extract it and transport it. We limit ourselves to returning an equal quantity of labor that we have attached to our wine or silk. It is so true that the generosity of nature has been extended to France that the work we return is no greater than the work we would have needed to do if the deposit of coal had been in France. Competition has brought about equality between the two nations with regard to coal, except for the inevitable and slight difference that arises from distance and transport. 540
I have cited two examples. My aim was to elucidate my thoughts. But lets us not lose sight of the fact that since the law of competition applies to all the gifts that nature has unequally distributed across the globe, it is necessary to consider it as the principle of a just and natural process of equalisation; it is necessary to admire it, praise it, as the most obvious expression of the impartial concern God has for all his creatures.
I regret that space does not permit me to draw out the consequence of this theory which I have just introduced. I will limit myself to drawing your attention to one. If it is true, as it appears to me to be unquestionable, that the diverse peoples around the globe are led by competition to exchange among themselves only the labour and effort which is becoming more and more equalized or evened out; and to mutually give each other, into the bargain , the services of nature that each one of them has closest within reach; then how blind and absurd they must be when they reject by means of legislation products which embody an enormous quantity of free utility ?
Another circumstance that puts certain individuals in an exceptionally favorable situation with regard to their payment is the exclusive knowledge of the processes by which it is possible to seize control of natural resources . What we call an invention is an advance made by human genius. We have to see how these fine and peaceful conquests, which at the outset are a source of wealth for those who make them, soon become, under the influence of competition, the common and free heritage of all mankind.
The forces of nature really do belong to everybody. Gravity, for example, is a common property; it surrounds us, penetrates us, and dominates us. However, if there is just one way of making it contribute to a useful and planned result, and one man knows this way, this man is able to set a high price on his efforts or refuse to make them except for a very considerable payment. His claims in this regard will have no other limit than the point at which he demands from consumers a sacrifice that is greater than that imposed on them by the old process. For example, he may have succeeded in eliminating nine-tenths of the labor required to produce a product X . But X currently has a price that is determined by the effort required for its production using the standard method. The inventor sells X at the market price; in other words, he is paid ten times as much for his effort as his rivals are paid for theirs. This is the initial phase of invention.
Let us note first of all that this does not violate justice. It is just that the person who reveals a useful process to the world should be rewarded for this: To each according to his ability . 541
Let us also note that up to now the human race, apart from the inventor, has made only a potential gain, one in prospect so to speak, since, in order to acquire product X it is obliged to make the same sacrifices as it made in the past.
Nevertheless, the invention enters its second phase, that of imitation . It is in the nature of excessive rewards to arouse envy. The new process becomes widespread, the price of X keeps decreasing and payment for it decreases also, especially as the imitation becomes distant from the time of the invention, that is to say, as it becomes easier, less risky, and because of this, less attractive. Indeed, there is nothing in this that cannot be allowed by the most ingenious and impartial legislation. 542
Finally the invention reaches its third phase, its definitive period, that of its universal diffusion , common availability, and freedom from cost . It comes full circle when competition has brought payment to producers of X back to the general and normal rate for all similar production. At this point the nine-tenths of the efforts saved by the invention in these circumstances are a victory for the benefit of the entire human race. The utility of X is the same but the nine-tenths have been added to it by gravity, which in the past was common to all in principle and which has become common to all in this particular application. This is so true that all the consumers on the planet are allowed to purchase X for the sacrifice of one-tenth of the effort it cost in the past. The surplus has been totally eliminated by the new process.
If you are willing to consider that there is not one human invention that has not gone through this cycle, that X in this instance is an algebraic sign representing wheat, clothing, books, or ships whose production has caused an incalculable mass of effort to be eliminated by the plough, the loom, the printing press, and sails, and that this observation applies to the humblest of tools just as it does to the most complicated mechanism, to nails, wedges and levers, just as to steam engines and the electric telegraph, 543 I hope that you will understand how the following major problem is solved in the context of the human race: A huge quantity of useful things or things which can be enjoyed, that is forever growing and ever more equally distributed, comes along to reward each given quantity of human labor .
I have shown that competition serves to move both the forces of nature and the processes by which these are harnessed into the domain of common availability, and freedom from cost . All that I still have to do is to make clear that it fulfills the same function with regard to the tools we use to set these forces in motion.
It is not enough for there to be forces in nature such as heat, light, gravity, and electricity. It is not enough for the mind to conceive the means of making use of these; you also need tools to transform mere intellectual conceptions into a physical reality and supplies to keep alive the people while they are undertaking the work.
There is a third factor that favors an individual or a class of people with regard to remuneration, and that is to possess capital . He who holds the tool that is essential to the workers, the materials on which the labor is to be done, and the means of existence 544 that are to be consumed during the production, can determine his rate of remuneration. This principle is certainly fair, for capital is merely effort made previously, which has not yet been rewarded. The capitalist is doubtless in a good position to impose his will, but we should note that, even without competition, there is a limit that his demands can never exceed. This limit is the point at which his remuneration would absorb all the advantages of the service he is providing. In this case, it is not right to talk, as often happens, about the tyranny of capital , since even in the most extreme cases its presence can never be more damaging than its absence to the situation of the worker. All that capitalists can do, like the people in the tropics who have an intensity of heat that nature has denied to others or the inventor who holds the secret to an industrial process that is unknown to his fellow-men, is to say to them: "If you wish to make use of my efforts, this is my price; if you find it too high, do as you have done in the past and do without it."
However, competition intervenes among the capitalists. Tools, materials, and provisions succeed in creating useful things only if they are used. Therefore there is a fight 545 among the capitalists to find a use for their capital. The extent to which this fight forces them to reduce their extreme demands, whose limits I have just set out, thus resulting in a reduction of the price, is therefore a net profit, a gratuitous gain for consumers and therefore for the human race!
In this instance, it is clear that something which is free of cost can never be absolute; since all capital represents past efforts made, it always contains with it the principle that a payment will be made. 546
We have seen that there is an upper limit beyond which one would no longer borrow. This limit is where there is " zero service " for the borrower. Furthermore, there is a limit, well short of which one would not make loans, and this limit is where there is " zero payment" for the lender. Competition between borrowers pushes the remuneration of capital to the upper limit; competition between lenders pulls it back towards the lower limit. It fluctuates between these two points, rising when it is just and necessary when capital is scarce, dropping when it is abundant.
This subject is immense and I cannot deal with it here. 547 I will limit my remarks by stating a fact which nullifies many of the assertions which are fashionable at the moment, that civilisation tends to lower the return on capital - one pays 20% in Brazil, 10% in Algeria, 8% in Spain, 6% in Italy, 5% in Germany, 4% in France, 3% in England, and even lower in Holland. Now, everything that the passage of time does to wipe out the price of capital is a loss for the capitalists, but it is not a loss for the human race. It is a force which, like the forces of nature , like more efficient industrial processes , results in greater abundance , in equalisation , and thus raises the general level of the human race. 548
It remains for me to study the competition which occurs between labor itself, a subject which is much larger than than what I have just sketched out. It would require a whole book to follow the future of capital in all its metamorphoses, and it would require ten books perhaps to correct all the errors which the "sentimentalist" schools of thought 549 have spread during the past few years concerning the fate of the workers. The requirements of the present work in which I am publishing this sketch force me to limit myself to a few simple outlines. 550
A host of circumstances contributes to making the remuneration for labor unequal (here I am referring only to labor that is free and subject to competition). If you examine it closely, you see that this alleged inequality is almost always just and necessary, and is in fact nothing other than genuine equality.
All other things being equal, 551 moreover, there is more profit in dangerous projects than in ones that are not, in trades that require long apprenticeships, and outlays that are unproductive for long periods of time, which assumes the long-term exercise within the family of certain virtues, than in trades where physical strength is all that is needed, or in occupations that require development of the mind and give rise to refined tastes than in those that just require manual labor. Is all this not just? Well, competition of necessity establishes these distinctions; society does not need a Fourier 552 or a father-figure like Enfantin 553 to decide this.
Among these circumstances, the one that has the most general effect is inequality of education. Here, as elsewhere, we see competition exercising its twin effect of leveling classes and raising the level of society.
If you think of society as being composed of two superimposed strata, 554 in one of which the principle of the mind is foremost and in the other brute force; and if you examine the natural relationship between these two social strata, you can clearly see a force of attraction in the first and a force of aspiration in the second which contribute to their merging. The very inequality of profit generates an inextinguishable desire in the lower stratum to reach the region of well-being and leisure, and this desire is supported by the influence of the enlightenment that illuminates the upper classes. The methods of teaching are improved, the price of books is decreasing, education is acquired in less time and at less cost, science, monopolized by one class and even one caste 555 and obfuscated by a language that is dead or embedded in hieroglyphic script, 556 is now written and printed in the common tongue and penetrates, so to speak, the atmosphere and is breathed in like air.
But that is not all. At the same time as a more universal and egalitarian form of education is drawing the two social strata together, weighty economic phenomena linked to the great law of competition are accelerating their fusion. Progress in engineering is constantly reducing the part played by manual labor. The division of labor that simplifies and isolates each productive operation, makes trades originally manageable only by a few, open to all. There is more: a group of tasks that originally assumed a wide range of knowledge has, through the mere passage of centuries, become routine in the area of activity of the least educated classes; this is what has happened to farming. Agricultural processes, which in antiquity gained those who revealed them to the world the highest of honors, are now the heritage and almost completely dominated by the commonest of men, to such an extent that this very important area of human activity is, so to speak, entirely removed from the well-educated classes.
From what has gone before, one may draw a false conclusion and say: "We can clearly see that competition decreases pay in all countries, in all kinds of careers, in all ranks, and levels them downwards , but in this case it is the wages for manual labor that will become the type and standard for all wages."
I will not have been understood if people do not see that c ompetition , which works to reduce all excessive pay to an average that is increasingly uniform, is bound to raise this average. I agree that this upsets people in their capacity as producers, but this is in order to improve the general situation of the human race in the only form reasonably able to improve it, that of well-being, prosperity, leisure, and intellectual and moral advancement, in a word, from the point of view of consumption .
Will it be said that in the event the human race has not made the progress that this theory appears to imply?
My first response is that, in modern societies, competition is far from fulfilling its natural role; our laws hinder it at least as much as they favor it, 557 and when the question is put as to whether the inequality of the situation of individuals is due to its presence or absence, we have only to see which men are at the top of the pile and can dazzle us with the glamour of their scandalous wealth, to be convinced that inequality, in so far as it is artificial and unjust, is based upon conquest, monopolies, trade restrictions, privileged positions, high government posts and influence, the trafficking in administrative deals, and loans from public funds; all things that have no connection with competition.
Subsequently, I believe that people fail to realize the genuine progress that the human race has made since the very recent period when the partial emancipation of labour began to take place. It has been said, and rightly so, that a great deal of philosophizing was needed to identify the facts that are constantly being witnessed. What a respectable and hard-working family of the working class consumes does not surprise us, because habit has accustomed us to this strange phenomenon. If, however, we were to compare the well-being this family has achieved with the situation that would be its lot under a social order in which competition was excluded, if statisticians, armed with accurate instruments, were able to measure as though with a dynamometer the relationship between the work of this family and the composition of its consumption at two different periods, we would recognize that freedom, as restricted as it still is, has achieved something extraordinary for this family, something whose very duration makes it pass unnoticed. The amount of human effort needed to produce a given result has been drastically cut and is truly incalculable. 558 For a native inhabitant of Canada who needed an object which weighed a quintal (100 kg) located 300 leagues away he would have to go looking for it, perhaps at a cost to him of 6 months of hard work. Today an artisan from the Bayonne region 559 who sends to Paris an object of equal weight pays 4 francs, or the equivalent of a day's wages. Thus 179/180 of the effort needed by the Canadian native has been wiped out. This portion of the effort is no longer undertaken by anybody, and nobody has to be paid for it; it is the amount taken care of by the forces of nature, the strength of animals, industrial processes, and tools, the use of which have become common and free of charge . As a result of competition, a single day of work is enough to cover the cost of the transportation, for the present effort which is required as well as for the previous efforts embodied in the mechanical tools or animals (which we term capital ) which contribute to the end result. There is not a single one of our consumption goods to which the same remarks do not apply.
Finally, that ever-increasing flow of useful things which work generates and which is in turn distributed by competition through all the veins of the social body, is not wholly defined by well-being. Most of it is absorbed in the flood of ever more numerous generations. It results in an increase in population in accordance with laws that are closely connected with the subject under discussion and which will be set out in another article. 560
Let us stop awhile and cast a rapid glance over the ground we have just covered.
Man has needs that have no limit. He develops desires that are insatiable. To meet them he has materials and forces which are supplied to him by nature, capabilities, and tools, and all the things that labor produces. Labor is the resource that has been the most equally shared out among all; each person instinctively and inevitably seeks to join to it as much of the forces of nature, as much innate or acquired capability, and as much capital as possible, so that the result of all this co-operation is as many useful things produced as possible, or what amounts to the same, as much satisfaction achieved as possible. Thus the ever-increasing contribution made by the forces of nature, the indefinite development of knowledge, and the gradual increase in capital produce this phenomenon, strange at first sight, that a given quantity of labor supplies an ever-increasing sum of useful things and that each person may, without depriving anyone else, achieve a mass of consumption out of all proportion to what his own efforts could produce.
But this phenomenon, the result of the divine harmony that Providence has spread throughout the mechanism of society, would have turned against society itself by planting in it the seed of endless inequality, if it were not combined with another kind of harmony no less admirable, namely competition, which is one of the branches of the great law of human solidarity .
Indeed, if it were possible for an individual, a family, a classe, or a nation that found themselves within reach of certain natural advantages, which had made an important industrial discovery, or acquired the tools of production through saving, to be cut off permanently from the law of of competition, if such a thing were possible, I repeat, it is clear that this individual, this family, or nation would be in permanent possession of a monopoly of extraordinary remuneration at the expense of the human race. Where would we be if the inhabitants of the equatorial regions, freed from any competition with each other, were able, in exchange for their sugar, coffee, cotton, or spices, to demand from us, not repayment in the form of an effort equal to theirs, but an effort equal to that which we would have had to take ourselves to produce these things in our harsh climate? What incalculable distance would separate the diverse situations of people if the race of Cadmus 561 were the only one that knew how to read, if nobody was allowed to use a plow unless he could prove that he descended directly from Triptolemus, 562 if the descendents of Gutenberg 563 were the only ones allowed to print, the sons of Arkwright 564 to use a spinning jenny, or the nephews of Watt 565 to get the chimney of a locomotive smoking!
However, Providence did not will this to be so. It placed within the social machine a spring, such that nothing is more astonishing than its power, except perhaps its simplicity. Through the operation of this spring, any productive force, any superiority of industrial process in short any advantage not due to his own labor , slips through the fingers 566 of the producer, stops there in the form of exceptional reward just long enough to arouse his enthusiasm and after a while goes on to enlarge the communal and free heritage of the human race before finally issuing an ever-growing quantity of individual satisfaction constantly being shared more equally. This spring is c ompetition . We have seen its economic effects; all that remains for us to do is to cast a rapid glance over a few of its political and moral consequences. I will limit myself to indicating the most important of these.
Some superficial minds have accused competition of introducing antagonism among men. This is true and inevitable as long as men are considered only in their capacity as producers; if you take the point of view of consumption, you will see that competition itself draws individuals, families, classes, nations, and races together through the bonds of universal brotherhood.
Since goods that at first sight appear to be the privilege of the few become, through an admirable decree of divine beneficence, a heritage common to all; since the natural advantages of location, fertility, temperature, mineral wealth, and even industrial aptitude, seem just to slip through the hands of the producers, given the competition which they enter into with each other, and turn exclusively to the advantage of consumers, it follows that there is no country that does not have a stake in the progress of all the others. Every progress achieved in the East is wealth in prospect for the West. If fuel is discovered in the South, the people of the North are warmed. Great Britain can make all the progress she likes with her spinning mills; her capitalists will not reap the benefit, for the interest on their money does not increase. The benefit does not go to her workers since their earnings remain the same, but in the long run it is Russia, France, Spain - in a word the human race - which gets the same satisfactions with less effort or, which amounts to the same thing, greater satisfaction for the same effort.
I have spoken only of benefits, but I could have said as much about the harms, that afflict certain nations or regions. The very nature of competition is to make general that which was once particular. It acts precisely on the principle of insurance . If a plague ravages farmland, it is those who eat bread who suffer. If an unjust tax is levied on French vines, it results in expensive wine for drinkers the world over; thus benefits and harms of the long-lasting kind just slip through the hands of individuals, classes, and nations. Their providential destiny is to affect the entire human race in the long run and improve or worsen its situation. This being so, to envy a particular nation for the fertility of its soil, the beauty of its ports or rivers, or the warmth of its sun is to fail to recognize the advantages in which we are all destined to have our share. It is to reject the abundance 567 offered to us and to miss the toil we have been spared. This being so, national jealousies are not just perverse sentiments, they are sentiments that are absurd into the bargain. To harm others is to harm yourself. To place obstacles in the path of others, 568 whether these are customs tariffs, foreign alliances, or wars, is to obstruct your own path. Consequently, harmful passions are punished, just as generous ones are rewarded. The inevitable sanction of accurate, distributive justice appeals to one's self-interest, enlightens public opinion, and in the end proclaims and secures the upholding by people of the eternally true maxim: The useful is only one aspect of the just, liberty is the most beautiful of the social harmonies, 569 and justice is the best policy.
Christianity introduced the great principle of human brotherhood to the world. It spoke to the heart, the emotions, and the instincts that were noble. Political economy seeks to have the same principle prevail in cold reasoning and, by showing the link between cause and effect, reconciles the calculations of the most attentive self-interest with the inspiration of the most sublime morality in one reassuring agreement.
A second consequence of this doctrine is that society is a genuine community . Messrs. Owen 570 and Pierre Leroux 571 may save themselves the trouble of looking for a solution to the great problem of c ommunism ; it has already been found. It results not from their despotic schemes but from the organization that God has given to man and society. Natural forces, more efficient industrial processes, and tools of production, all these are common to man or are tending to become so. This is true for everything, except for the trouble people incur , and the labor and individual effort put in. Between men there is only one and there can be only one inequality , one that the most dyed in the wool communists acknowledge, and that is the inequality that results from the inequality of effort. These are the efforts exchanged between people for a freely negotiated price. All the utility that nature, the genius of past centuries, and human foresight have imparted to the products being exchanged is therefore available into the bargain. Reciprocal payment relates only to their respective efforts, either present effort in the form of labor or preparatory effort in the shape of capital. (This) is therefore a community in the strictest sense of the word, unless you wish to claim that each person's share in the satisfaction has to be equal, while the share of effort exerted is not. This would indeed be the most unjust and monstrous of inequalities and, I would add, the most disastrous, for it would not kill competition but merely cause its action to be inverted. People would still fight, but they would fight 572 to excel in laziness, lack of intelligence, and lack of foresight.
Finally, the doctrine that we have developed, so simple and, we are convinced, so true, forces the emergence of the great principle of human perfectibility out of the domain of oratory and into that of rigorous proof. From this internal motive, which never rests in a person's breast and which leads that person to improve his or her situation, is born the advance of technology, an advance that is nothing other than the gradual cooperation of forces, which by their very nature are unconcerned with any remuneration. Competition gives rise to the granting to the community those benefits which were originally acquired by individuals. The intensity of the effort required for any given result is constantly reduced for the benefit of the human race, which sees its range of satisfactions and leisure increase from one generation to another and the level of its physical, intellectual, and moral progress advance, and through this arrangement, so worthy of our study and eternal admiration, we clearly see the human race rising up out of its degradation.
I hope my words will not be misunderstood. I am not saying that all brotherhood, all community, and all human perfectibility are contained in competition itself. What I am saying is that it is linked and allied to these three great social social concepts, that it is part of them, that it makes them manifest, and that it is one of the most powerful agents of their sublime realization.
I have concentrated on describing the general and consequently beneficial effects of competition, for it would be sacrilege to suppose that any great law of nature could produce effects that were both harmful and permanent, but I am far from denying that its action can be accompanied by a great deal of hardship and suffering. I even consider that the theory that has just been set out, explains both these sufferings and the inevitable complaints they generate. Since the work of competition is to level out , of necessity it is bound to upset anyone who raises his proud head above this level. We can understand that each producer strives to retain the exclusive use of a resource , an industrial process, or a tool of production for as long as possible in order to keep the highest price for his work. Well, since the purpose as well as the result of competition is precisely to remove this exclusive use from individuals in order to make it common property, it is inevitable that men, insofar as they are producers, will unite in a chorus of curses against c ompetition . 573 They can become reconciled to it, only by appreciating their relationship to consumption, by thinking of themselves not as members of a clique or a privileged corporation, but as individual men.
It has to be said that political economy has not done enough to dispel this disastrous illusion, 574 which is the source of so much hatred and resentment, and so many disasters and wars. It has worn itself out, given its very unscientific orientation, analyzing the phenomena of production; even its nomenclature, as convenient as it is, is not in harmony with its subject-matter. Farming, manufacturing, or commerce are perhaps excellent headings when it is a question of describing the processes involved in these technical arts, but such description, though of vital significance in technology, is scarcely relevant in social economy, 575 and I would actually say that it is essentially dangerous in this context. When people have been classified as farmers, manufacturers, and merchants, what can you talk to them about, other than their class interests, those special interests that conflict with competition and oppose the general good? It is not for farmers that farming exists, for manufacturers that there are factories, or for merchants that exchanges take place, but in order for people to have access to the greatest possible number of products of all kinds. The laws of consumption , and what promotes it, equalizes it, and makes it moral: that is the true social and humanitarian interest; that is the real focus of economic science; that is on what it should focus its sharpest thinking. For this is where the bond between classes, nations, and races is - the principle and the explanation of human brotherhood. It is therefore with regret that we see economists devoting their powerful minds and dispensing a prodigious wealth of wisdom, in pursuit of the anatomy of production, relegating to appendices at the ends of their books a few brief commonplaces on the phenomena of consumption. What is that I am saying? Not long ago, we saw a justifiably famous professor 576 suppressing this part of economic science totally and devoting himself to the means without ever mentioning the ends , and banishing from his lectures anything relating to the consumption of wealth as belonging, so he said, to the realm of moral philosophy and not to political economy. Should we be surprised that the general public are more struck by the disadvantages of competition than its advantages, since the disadvantages affect it from the particular point of view of production , about which they are constantly being informed, and the advantages from the general point of view of consumption, about which they are never told anything?
What is more, and I repeat and do not deny it, I clearly recognize and deplore as much as others do, the pain that competition inflicts on people, but is this a reason to close one's eyes to the good it does? This good, which I believe competition to be, is indestructible like all the great laws of nature. And how consoling it is to note this fact! If competition could die, it would doubtless have succumbed to the universal resistance of all the men who have ever contributed to the creation of a product since the dawn of time, and especially to the national call to arms which all the modern reformers have promoted. But although they have been crazy enough, they have not been strong enough to do this.
And what progressive principle has there been in the world whose beneficial action has not been mixed up with a great deal of pain and misery, especially at the beginning? The great urban centers created by human beings have encouraged the flourishing of thought, but they often shield private life from the corrective of public opinion and act as a shelter to debauchery and crime. Wealth allied with leisure generates the life of the mind, but it also generates ostentation and arrogance in the great, and resentment and envy in the lowly. Printing shines enlightenment and truth on all the social stratas of society, but it also conveys painful doubt and subversive error. Political freedom has unleashed enough storms and revolutions around the planet, it has modified the simple and naïve habits of primitive nations profoundly enough for serious minds to have asked themselves the question as to whether they did not prefer peace in the shadow of despotism. And Christianity itself has scattered the great seed of love and charity on land soaked with the blood of martyrs.
How has it become part of the plans of infinite goodness and justice that the good fortune of one region or century is bought by the suffering of another region or century? What divine thought is hidden under this great and indisputable law of solidarity of which c ompetition is just one of its mysterious aspects? Human science does not know this. What it does know is that good is constantly expanding and evil constantly shrinking. From the very beginning of the social order, an order created out of conquest, where there were only masters and slaves and in which inequality of condition was extreme, competition was not able to do its work of drawing men of different ranks, fortunes, or minds closer together, without inflicting some individual hardship, the intensity of which constantly lessens as the work progresses, much like the vibrations of sound and the swings of a pendulum gradually diminish over time. To the suffering that is still inflicted, the human race learns daily to apply two powerful remedies, foresight , the fruit of experience and enlightenment, and association , which is organized foresight . 577
509 See the Editor's Introduction to T.284 "A Note on Economic and Social Harmonies" (June 1845), above pp. 000.
510 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 (Paris: Au bureau de l'Encyclopédie du dix-neuvième siècle, Impr. Beaulé, Lacour, Renoud et Maulde, 1846).
511 See below, pp. 000, pp. 000, and pp. 000.
512 Ronce, Frédéric Bastiat. Sa vie, son oeuvre (1905), pp. 227-28.
513 See, Letter 157 to Cobden, Paris, 31 December, 1849, CW1, p. 226.
514 See, "Natural and Artificial Organization" (Jan. 1848), below, pp. 000.
515 See the glossary on "Disturbing and Restorative Factors."
516 See above, pp. 000.
517 See the glossary entry "Ceteris paribus."
518 Alexander Reutlinger, Gerhard Schurz, and Andreas Hüttemann "Ceteris Paribus Laws," Stanford Encyclopedia of Philosophy Archive (Spring 2014 Edition) <https://plato.stanford.edu/archives/spr2014/entries/ceteris-paribus>.
519 "Reflections on the Petitions from Bordeaux, Le Havre, and Lyons Relating to the Customs Service" (April 1834) [OC1.2, p. 231] [CW2] CW2, pp. 1-9.
520 See the Editor's Introduction to "Natural and Artificial Organisation" (below, pp.000) and the glossary on "The Social Mechanism."
521 Below, pp. 000.
522 See below, pp. 000 and pp. 000.
523 Capital and Rent , below, pp. 000.
524 Letter No. 4: F. Bastiat to P. J. Proudhon (26 November 1849) in Free Credit , below, pp. 000.
525 The original Introduction of 21 paragraphs (2,100 words) was replaced in the EH version with a new introduction of 4,000 words in which Bastiat more directly replied to the socialists' criticism that competition was "anarchic" and harmed the interests of the workers.
526 On Bastiat's plans to write a multi-volume work on "economic" as well as "social" harmonies, see the Editor's Introduction to T.284 "A Note on Economic and Social Harmonies" (June 1845) above, pp. 000.
527 Bastiat uses the term "la classe industrieuse."
528 Marvelling at the bounty of goods imported from all over the world was a common rhetorical device/argument used by free traders at this time. It was made very popular by an orator of the Anti-Corn Law League, William J. Fox (1786-1864) who gave a speech at Covent Garden Theatre on 25 January 1844 in which he highlighted how the English, even the anti-free trade landowners, were already heavily dependent on goods made by foreigners, even before free trade had become government policy in 1846. Bastiat quoted from this speech at length in his book Cobden and the League (1845) and highlighted it by italicizing the names of the countries from which all the products came from. Bastiat also had another version of this story, very similar to Leonard Read's "I, Pencil" (1958), which appeared in the article ""Natural and Artificial Organisation" JDE, January 1848 and was also part of Economic Harmonies . Bastiat's story was about a "village carpenter" so we might call it "I, Carpenter." See below, pp. 000.
529 Bastiat had several terms like "le marché général du monde" (the general market place of the world) which he used to describe the global marketplace in which trading now took place. These terms also included "le grand marché" (the great market place), "un vaste bazar" (a huge bazaar), "ce bazar d'échange" (this trading bazaar). See for example, "On Population" (October 1846) (below, pp. 000); his Second Speech in Paris for the Free Trade Association (26 Sept. 1846) in CW6 (forthcoming); and "The Mutuality of Services" (c. 1849), below, pp. 000.
530 See the glossary on "The Social Mechanism."
531 Bastiat is mocking the socialists' penchant for inventing ever more elaborate new ways of "organizing" society along socialist lines. Under the influence of Charles Fourier, Louis Blanc, and Proudhon during the 1840s the words "organization" and "association" became slogans used by the socialists to oppose the advocates of free trade and free markets. For these socialists, "L'Organisation" meant the organisation of labor and industry by the state for the benefit of the workers; and "l'Association" meant cooperative living and working arrangements as opposed to private property, exchange on the free market, and the family. See in particular Louis Blanc's influential pamphlet L'Organisation du travail (The Organization of Labor) (1839) which was reprinted many times during the 1840s. See also the glossary entry on "Association and Organization."
532 Bastiat's first publishing success, Economic Sophisms (1846), was a collection of short articles which debunked common "sophistical" arguments used to justify protective tariffs, trade restrictions, and state subsidies to favored industries. They have been republished in CW3.
533 Bastiat realized of course that a glass of water offered to a customer living in the Pyrénées Mountains had less value than a glass of water offered for sale in the Sahara desert, because of its rarity, difficulty of procuring it, and the type of service it provided. See his discussion in T.234 Capital and Rent (1849), below, pp. 000.
534 The word "génie" (genius) is used in the Encyclopedia article but was changed to "l'esprit" (spirit) in the JDE article.
535 He is referring to Malthus' law of population growth which he discusses in the companion article on "Population" which also appeared in the Encyclopedia . See below, pp. 000.
536 See the glossary on "Service for Service."
537 Here Bastiat is attacking the notion that a produced good "contained" or "embodied" a certain, quantifiable amount of the worker's labour which gave it a certain value. This "labor theory of value" was part of the classical tradition of Adam Smith and David Ricardo, and was taken up by Karl Marx and other socialists in the 1830s and 1840s.
538 Bastiat uses the word "s'aliéner" (to alienate or surrender). We have not translated it as "alienate" because of its connection with the Marxist idea of "alienating one's labour", a meaning which Bastiat did not intend here.
539 Here ends the introduction to the Encyclopedia and JDE articles. The chapter as it appeared in Economic Harmonies had a very different introduction of 3,854 words. This will be included in our edition of Economic Harmonies in CW5 (forthcoming). The following two paragraphs dealing with English coal appeared in all versions.
540 In the chapter in EH the following two paragraphs were replaced with a larger section of 629 words. Here he discusses the same issue from the perspective of everyday, domestically produced goods like cloth or bread and the impact international free trade would have on them.
541 Bastiat reverses the socialist slogan "de chacun selon ses facultés, à chacun selon ses besoins" (from each according to their abilities, to each according to their needs) which was popularised by Louis Blanc in the 1840s and taken up by Karl Marx in 1875, by rephrasing it as "à chacun selon sa capacité" (to each according to their ability). See Louis Blanc, Historie de la Révolution française , Tome premier (Paris: Langlois et Leclerc, 1847), p. 533; and Plus de girondins (Paris: Charles Joubert, 1851), p. 106.
542 Bastiat is referring here to legislation concerning copyright and patents. The economists were deeply divided on the question, with some being "absolutists" in defending the right of authors and inventors to a perpetual property right in their creations, such as Molinari, Laboulaye, Frédéric Passy, Modeste, and Paillottet; while others such as Wolowski, Renouard, de Lavergne, Foucher, and Dupuit, believed that it should be a limited right of short duration, that it was a "license" for first use but not an absolute and eternal property right. Bastiat was somewhere between the two groups. Hippolyte Castille began a journal devoted to the issue of intellectual property rights in August 1847, Le Travail intellectuel (Intellectual Labor). Bastiat was listed as one of the magazine's "collaborators." See the Editor's Introduction to T.151 "A Letter (to Hippolyte Castille) (on intellectual property)" (9 Sept. 1847) below, pp. 000.
543 France had a well developed system of optical telegraphy, the Chappe telegraph, which had emerged in the late 18th century for the use of the French government and military. The American Samuel Morse invented the electric telegraph in 1832 thus making all previous optical systems redundant. The first electric telegraph in France sent messages from Paris to Rouen in 1845 but was still reserved for the exclusive use of the government. In March 1851 the use of the electric telegraph was opened up to the public for the first time. Also in that year the first submarine cable was laid between England and France.
544 Bastiat uses the phrase "les moyens d'existence" (the means of existence) which FEE and Stirling translate as "the means of subsistance." The terms pose a problem for translators as Bastiat came to believe there was a significant difference between the two. He distinguished between the Malthusian notion of "les moyens de subsistance" (the means of subsistance), which is the bare minimum needed for physical survival, and "les moyens d'existence" (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. See the Editor's Introduction to "Population" below, pp. 000 for more details.
545 Bastiat uses here the word "lutte" (fight or struggle) to describe the behavior of the capitalists. He changes the word for some reason to "émulation" (rivalry or competition) in the JDE article and in the chapter in EH. Possibly it sounded too "socialist."
546 The following three paragraphs were extensively rewritten in EH.
547 See the pamphlet Capital (mid-1849), below, pp. 000; his long debate with Proudhon on Free Credit (October 1849 to March 1850), below, pp. 000; and Chapter VII "Capital" in EH..
548 After this paragraph Bastiat added in EH a new 4 page section (some 1,871 words) where he discusses how workers are also consumers who benefit from competition, how exchanges are the mutual exchange of services for both parties involved, that he doesn't deny the hardships faced by some workers but he argues that the operation of the market is normally harmonious unless it is upset by "des causes perturbatrices" (disturbing factors) such as economic crises and the activities of "plunderers," that members of the working class are both buyers and sellers of services and that they benefit enormously from the competition among sellers of the goods they need to survive. He concludes that one needs to assess both the benefits and hardships caused by competition to see on balance whether the workers are better off or not. He thinks they will be better off.
549 Bastiat refers here to the "sentimentalist schools of thought" which he cuts from the EH version, where he talks merely of "sentimentalist rhetoric" about the "the social question" as it was often referred to at the time. By "sentimentalist school" he probably has in mind, in addition to the strong critique of the condition of the workers by socialists such as Friedrich Engels' The Condition of the Working Class in England (1844), authors like Simonde de Sismondi and Christian political economists like Villeneuve-Bargemont. See, Jean-Charles-Léonard Simonde de Sismondi, Nouveaux principes d'économie politique, ou de la richesse dans ses rapports avec la population (Paris: Delaunay, 1819) and Alban Villeneuve-Bargemont, Economie politique chrétienne ou Recherches sur la nature et les causes du paupérisme en France et en Europe et sur les moyens de le soulager et de le prévenir (Paris: Paulin, 1834).
550 Bastiat is referring to the restrictions placed upon him to write articles for the popular Encyclopedia in which he published this essay on "Competition" and "Population" in the first half of 1846.
551 Bastiat uses the phrase "toutes choses égales d'ailleurs" which we have translated as "all other things being equal." The FEE translator replaces this with the Latin phrase "ceteris paribus" which Bastiat did not use here. He did use both phrases elsewhere in his writing a total of 17 times, as early as May 1846 in T.61 "First Letter to the Editor of the Journal des débats , 2 May, 1846, in CW6 (forthcoming). He seems to be an early user of this important economic phrase. See the glossary on "Ceteris paribus."
552 See the glossary entry on "Fourier."
553 Prosper Enfantin (1796-1864) was influenced by the ideas of Saint-Simon and, with Olinde Rodrigues et Bazard, founded the utopian socialist school of the Saint-Simonians, which advocated a form of socialism in which industrial society would be managed by an elite of scientists and engineers. In the Economic Harmonies version of this chapter Bastiat changes the pairing from Fourier and Enfantin to Fourier and Louis Blanc, most likely because of the prominent role Blanc had assumed in the socialist movement after the Revolution of February 1848.
554 Bastiat uses the term "couches" (bed, layer, strata) which he had only begun using in this sense in 1844 with "les dernières couches sociales" (the lowest social strata) in "The Division of the Land Tax" (above pp. 000); in Feb. 1845 with "toutes les couches de la société" (all the strata in society) in "Letter from an Economist to M. de Lamartine" (JDE) (above, pp. 000; and with "des dernières couches sociales" ((the lowest social strata) in the Introduction to his book Cobden and the League (published July 1845). He then used in frequently in the two articles he wrote for the Encyclopédie - 5 in the "on Competition" article and 6 in the "On Population" article.
555 Bastiat did not often use the word "caste" as his preferred terminology was the pairing of "la classe spoliatrice" (the plundering class) and "la classe spoliée" (the plundered class), or sometimes "la classe électorale" (the electoral or voting class). Outside of direct references to the Indian caste system, he only used the term "caste" five times in expressions such as "des castes héréditaires" (the hereditary castes), "les castes guerrières et dominatrices" (the warrior and dominating or ruling castes), or as here, a reference to the Catholic clergy who controlled so much of French education and the widespread teaching of Latin and Greek.
556 As a youth, Bastiat attended an experimental school which taught modern languages and music instead of Latin and Greek. He was very hostile to classical education throughout his entire life, seeing in it the perpetuation of illiberal ideas of the disdain for work, a warrior ethic, and the moral values of ancient slave owners.
557 Bastiat would say more about these "disturbing factors" in the EH version of this article.
558 The following section on the standard of living of native Canadians was cut in the Economic Harmonies version and replaced with a new section of 155 words.
559 Bastiat was born in Bayonne in 1801 and lived in its vicinity for 44 years before moving to Paris..
560 ( Bastiat's note. ) "I must tell you about an article on 'Population' which will follow this one on "Competition" and which is the indispensable complement to it." Editor's Note : Bastiat wrote two articles for an Encyclopedia in 1846, one on "Competition and the other on "Population" which he later also published in JDE.
561 Cadmus was the mythical founder and first King of Thebes. Herodotus believed that Cadmus introduced knowledge of the alphabet to the Greeks.
562 According to Greek mythology Triptolemus was taught the art of agriculture by Demeter, and he in turn passed on this knowledge to the Greeks.
563 Johannes Gutenberg (1398-1468) pioneered the use of movable type for printing books in 1439 in the German city of Mainz.
564 Richard Arkwright (1732–1792) was an English inventor who invented several machines which could spin and card raw cotton into thread.
565 James Watt (1736-1819) was a Scottish inventor and engineer who built the Watt steam engine in 1781.
566 This is an example of an expression Bastiat liked to use, "glisser" (to slip or slide), which he was to use in his theory of the "ricochet or flow on effect" beginning in 1847. This was a technical term Bastiat originally adopted to help explain how the negative consequences of government intervention "flowed on" to other sectors of the economy. He later extended it to explain how other changes could also have a kind of "multiplier effect" but in a positive direction, as here. He also liked to use other hydraulic terms to explain how information was transmitted throughout an economy. See the "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect" in CW3, pp. 457-61.
567 Bastiat would write an entire article on "Abundance" which would be published in the DEP after his death. See below, pp. 000.
568 Bastiat wrote several economic sophisms on how obstacles were placed in the path of consumers. See for example, ES1 2 "Obstacle and Cause" April 1845), ES1 16 "Blocked Rivers" (c. 1845), ES1 17 "A Negative Railway" (c. 1845); ES2 3 "Two Axes" (c. 1847), ES2 16 "The Right Hand and the Left Hand" (Dec. 1846).
569 See the Editor's Introduction to T.284 "A Note on Economic and Social Harmonies" (June 1845) on Bastiat's use of the term "social harmonies," above pp. 000.
570 In the EH version Bastiat changed the pairing to Owen and Cabet. See the glossary entry "Owen."
571 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.
572 Bastiat uses the word "lutter" (to fight) here and in the EH version.
573 Adam Smith astutely noticed that "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith, edited with an Introduction, Notes, Marginal Summary and an Enlarged Index by Edwin Cannan (London: Methuen, 1904). Vol. 1. Part II.: Inequalities occasioned by the Policy of Europe, p. 130.
574 See also Bastiat's essay T.204 "Disastrous Illusions" (JDE, March 1848) in CW3, pp. 000.
575 See the glossary entry on "Social Economy."
576 Bastiat probably has in mind Pellegrino Rossi (1787-1848) who was a member of the PES and taught political economy at the Collège de France. In the Introduction to his Course d'économie politique (1840) he dismisses the study of the "consumption of wealth" as "(a branch of economics) which is contained in the other two (production and distribution of wealth). What one calls productive consumption is nothing more than the employment of capital; consumption that one might call "unproductive," namely taxation, is contained directly in the distribution of wealth. The rest belongs to one's well-being (hygiène) and moral theory (la morale)." Pellegrino Rossi, Course d'économie politique. Année 1836-1837 (Bruxelles: Société typographique belge, 1840), p. 6. See the glossary on "Rossi."
577 Bastiat uses here two key concepts popular with socialists, organization and association, and turns them on their heads for rhetorical effect.
T.65 (1846.05.15) "Salt, the Mail, and the Customs Service" (JDE, May 1846)↩
SourceT.65 (1846.05.15) "Salt, the Mail, and the Customs Service" (Le sel, la poste et la douane), Journal des Économistes, May 1846, T. XIV, no. 54, pp. 142-152; also ES2.12. [OC4, pp. 213-29.] [CW3 - ES2.12]
XII. Salt, the Mail, and the Customs Service376 [May 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "Le sel, la poste et la douane" (Salt, the Mail, and the Customs Service) [Journal des Économistes, May 1846, T. XIV, pp. 142-152].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 213-29.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
1846
A few days ago, 377 people expected to see the machine of representative government give birth to a totally new product, one that its cog wheels had not yet managed to churn out: the relief of taxpayers.
Everyone was paying attention: the experiment was as interesting as it was new. No one had any doubts as to the capacity of this machine to suck up resources. From this point of view, the machine works admirably, whatever the time, the place, the season or the circumstance.
By contrast, with regard to reforms that tend to simplify, equalize and relieve charges on the public, nobody yet knows what it is capable of doing.
People said, "Wait and see: this is the right time. It is the work of the fourth session378, a time when popularity is worth courting. 1842 brought us the railway, 1846 is going to bring us a reduction of the tax on salt and postal services; 1850 promises us a reorganization of customs duties and indirect taxes.379 The fourth session is the jubilee year of the taxpayer.
Everyone was therefore full of hope, and everything appeared to favor the experiment. Le Moniteur380 had announced that from one quarter to the next the sources of revenue were constantly increasing, and what better use could we make of these unexpected inflows than to allow villagers an extra grain of salt for their warm water or one more letter from the battlefield on which their sons were risking their lives?
But what happened? Like those two sugary substances which, it is said, mutually prevent each other from crystallizing, or like the two dogs whose fight was so bitter that only two tails remained, the two reforms devoured each other. All that is left for us are the tails, that is to say, a host of draft laws, dissertations on the arguments, reports, statistics and appendices in which we have the consolation of seeing our sufferings philanthropically appreciated and homeopathically calculated. As for the reforms themselves, they have not crystallized, nothing has emerged from the crucible and the experiment has failed.
Soon the chemists will come before the jury to explain this misfortune and they will say,
First chemist: "I had put forward a postal reform but the Chamber wished to reduce the salt tax and I had to withdraw it."
Second chemist: "I had voted for the reduction of the salt tax but the government put forward postal reform and the vote came to nothing."
And the jury, finding the reasons excellent, will start the tests on the same data again and refer the work back to the same chemists.
This proves to us that, in spite of the source, there may be something reasonable in the custom that has been introduced in the last half-century on the other side of the Channel and which consists from the public's point of view, in pursuing only one reform at a time.381 This is a long and boring business but it leads to something.
We have a dozen reforms in hand; they are crowding one another like the souls of the departed at the gate of oblivion and not one of them gets through.
Ohimè! che lasso!
Una a la volta, per carità.382
This is what Jacques Bonhomme said in a conversation with John Bull on postal reform.383 It is worth quoting.
JACQUES BONHOMME AND JOHN BULL
JACQUES BONHOMME: Oh! Who will deliver me from this hurricane of reforms! My head is bursting. I believe that more are being invented every day: university reforms, financial reforms, health reforms and parliamentary reforms, electoral reforms, commercial reforms and social reforms and here we now have postal reform!
JOHN BULL: The latter is easy to do and so useful, as we have found over here, that I dare to recommend it to you384.
JACQUES: It is nevertheless said that it has gone badly in England and that it has cost your Exchequer ten million pounds.
JOHN: Which have generated one hundred million for the public.
JACQUES: Is this really certain?
JOHN: Look at all the signs of public satisfaction. See the nation, Peel385 and Russell386 at their head, giving Mr. Rowland Hill substantial tokens of gratitude in the British fashion. See the ordinary people putting their letters into circulation only after they have made their feelings known in writing, in the form of seals bearing the motto: To postal reform, a grateful people. The leaders of the League declare in full parliamentary session that, without postal reform, they would have needed thirty years to accomplish their great enterprise to set the food of the poor free. The officers of the Board of Trade declare that it is unfortunate that English currency does not allow a more radical reduction still in the cost of posting letters. What more proof do you want?
JACQUES: Yes, but the Treasury?
JOHN: Are the Treasury and the general public not in the same boat?
JACQUES: Not exactly. And incidentally, is it really certain that our postal system needs to be reformed?
JOHN: That is what it needs. Let us see for a moment how things are done. What happens to letters that are posted?
JACQUES: Oh! The mechanism is admirably simple: the manager opens the box at a certain time and takes out, let us say, one hundred letters.
JOHN: And then?
JACQUES: He then inspects them one by one. With a geographical table under his gaze and a set of scales in his hand, he tries to find the category to which each one belongs from the twin consideration of distance and weight. There are only eleven zones and the same number of categories of weight.
JOHN: That makes a good 121 combinations for each letter.
JACQUES: Yes, and you have to double this number since a letter may or may not be subject to the rural service charge387.
JOHN: You therefore have to look up 24,200 possibilities for the hundred letters. What does the manager do next?
JACQUES: He writes the weight on a corner and the tax right in the middle of the address under the drawing of a hieroglyph agreed upon by the administrative department.
JOHN: And then?
JACQUES: He stamps and divides the letters into ten packets depending on the post offices to which the letters have to be sent. He adds up the total of the tax for the ten packets.
JOHN: And then?
JACQUES: Then he writes the ten amounts lengthwise in a register and crosswise in another.
JOHN: And then?
JACQUES: Then he writes a letter to each of the ten post masters to inform them of the accounting item that concerns them.
JOHN: What if the letters are prepaid?
JACQUES: Oh! Then I admit that the service becomes a little complicated. The letter has to be received, weighed and measured. As before, it has to be paid for and change given. A suitable stamp has to be selected from the thirty available. On the letter has to be written clearly its order number, weight and tax. The full address has to be transcribed in one register then another and then a third, and then onto a separate slip. The letter is then wrapped in the slip and sent, properly tied up with string, to the post master, and each of these steps has to be noted in a dozen columns selected from the fifty that line the record books.
JOHN: And all that for 40 centimes!
JACQUES: Yes, on average.
JOHN: I can see that in effect the sending is quite simple. Let us see what happens on arrival.
JACQUES: The post master opens the mail bag.
JOHN: And then?
JACQUES: He reads the ten notices from his respective post masters.
JOHN: And then?
JACQUES: He compares the total shown for each notice with the total that results from each of the ten packets of letters.
JOHN: And then?
JACQUES: He totals the totals and knows what overall amount he will make the postmen responsible for.
JOHN: And then?
JACQUES: After this, with a table of distances and a set of scales in his hand, he checks and corrects the tax on each letter.
JOHN: And then?
JACQUES: He enters from register to register, from column to column, depending on countless factors, the excess payments and the underpayments he has found.
JOHN: And then?
JACQUES: He writes to the ten post masters to point out the errors of 10 or 20 centimes.
JOHN: And then?
JACQUES: He reorganizes all the letters received to give them to the postmen.
JOHN: And then?
JACQUES: He totals the taxes for which the postmen are responsible.
JOHN: And then?
JACQUES: The postman checks and they discuss the meaning of the hieroglyphs. The postman pays the amount in advance and leaves.
JOHN: Go on.388
JACQUES: The postman goes to the recipient. He knocks on the door and a servant comes. There are six letters for this address. The taxes are added, separately at first and then together. A total of 2 fr. 70 c. is calculated.
JOHN: Go on.
JACQUES: The servant goes to find his master who checks the hieroglyphs. He misreads the 3s for 2s and the 9s for 4s, he is not sure about the weight and distances; in short, he has the postman brought up and while waiting tries to decipher the signatory of the letters, thinking that it would be wise to refuse to accept them.
JOHN: Go on.
JACQUES: The postman arrives and pleads the cause of the postal service. They discuss, examine, weigh, measure and in the end the recipient accepts five letters and refuses one.
JOHN: Go on.
JACQUES: Now it is just a matter of the payment. The servant goes to the grocer to obtain change. Finally, after twenty minutes the postman is free and runs off to start the same ritual again at each door.
JOHN: Go on.
JACQUES: He returns to the office. He counts and recounts with the post master. He hands over the letters that have been refused and is paid back his advance payments. He reports the objections of the recipients with regard to the weights and distances.
JOHN: Go on.
JACQUES: The manager looks for the registers, record books, and special slips in order to account for the letters refused.
JOHN: Go on, if you please.
JACQUES: Goodness me, I am not a post master. We now come to the accounts for the tenths, twentieths and ends of the months, to the means thought up not only to establish but also to check such a detailed accounting system, one that covers 50 million francs resulting from the average taxes of 43 centimes and 116 million letters, each of which may belong to 242 categories.389
JOHN: This is a very complicated simple system. It is clear that the man who has solved this problem must have had a hundred times more talent than your Mr. Piron390 or our Rowland Hill.
JACQUES: Now you, who seem to be laughing at our system, explain yours.
JOHN: In England, the government sells envelopes and postal wrappers at one penny apiece in all the places it considers to be useful.
JACQUES: And then?
JOHN: You write your letter, fold it into four, put it into one of the envelopes and drop it off or send it to the post office.
JACQUES: And then?
JOHN: Then, that is all. There are no weights, no distances, no excesses payments nor underpayments, no refusals, no slips, no registers, no record books, no columns, no accounts, no checks, no change to be given and received, no hieroglyphs, no discussions and interpretations, no urging to accept, etc. etc.
JACQUES: That really sounds simple. But is it not too simple? A child would understand it. Reforms like this stifle the genius of great administrators. For my part, I prefer the French way. What is more, your uniform tax has the worst of all faults; it is unjust.
JOHN: Why?
JACQUES: Because it is unjust to make people pay the same for a letter delivered to a neighboring address as for one delivered a hundred leagues away.
JOHN: In any case, you will agree that the injustice is contained within the confines of one penny.
JACQUES: What does that matter? It is still an injustice.
JOHN: It can never extend to more than a halfpenny, since the other half covers fixed costs that apply to all letters whatever their distance.
JACQUES: Whether it is a penny or a halfpenny, there is still a principle of injustice.
JOHN: In the end this injustice which, at the very most, cannot exceed a halfpenny in a particular instance, is averaged out for each citizen over all his correspondence, since everyone writes letters that are sometimes to distant addresses and sometimes local.
JACQUES: I still maintain my position. The injustice is reduced to infinity if you like; it is imperceptible, infinitesimal and minute, but it is still there.
JOHN: Does the State make you pay more for a gram of tobacco that you buy in the Rue de Clichy than for the gram you receive at the Quai d'Orsay?391
JACQUES: What is the connection between the two objects of comparison?
JOHN: It is that in either case, there have been transport costs. Mathematically, it would be fair for each dose of tobacco to be more expensive in the Rue de Clichy than the Quai d'Orsay by some millionth of a centime.
JACQUES: That is true, you should want only what is possible.
JOHN: You should add that your postal system is only apparently just. Two houses are next to one another but one is outside and the other inside the area. The first will pay 10 centimes more than the second, exactly the same as the entire delivery of the letter costs in England. You can see that, in spite of appearances, there is injustice in your system on a much larger scale.
JACQUES: That appears to be very true. My objection is not worth much, but there is still a loss of revenue.
At this point, I stopped listening to the two conversationalists. It appears, however, that Jacques Bonhomme was totally convinced for, a few days later when Mr. de Vuitry's report had appeared,392 he wrote the following letter to the honorable legislator:
J. BONHOMME TO MR. DE VUITRY, DEPUTY, REPORTING CHAIRMAN OF THE COMMITTEE RESPONSIBLE FOR EXAMINING THE DRAFT LAW ON POSTAL TAXES393
Sir,
Although I am fully aware of the extreme disfavor that is created around anyone who sets himself up as an advocate of an absolute theory, I believe that I should not abandon the cause of a single tax that is reduced to the simple reimbursement of the service rendered.
In addressing you, I am surely doing you a good turn. On the one hand, a hothead, a closet reformer who talks about overturning an entire system at one fell swoop with no transition, a dreamer who perhaps has never set eyes on the mountain of laws, orders, tables, appendices and statistics that accompany your report, in a word, a theoretician and on the other, a lawmaker who is serious, prudent and moderate, who has weighed and compared, who keeps various interests happy, who rejects all systems or, what amounts to the same, constructs one from elements he has garnered from all the others; the outcome of the struggle could not be in any doubt.
Nevertheless, for as long as the question is pending, strongly held ideas have the right to be presented. I know that mine is sufficiently clear-cut to bring a mocking smile to the lips of readers. All that I dare to expect from them is that they produce this smile, if it is produced, as much as they like, after and not before having listened to my reasons.
For I too, in the end can invoke experience. A great nation has tested this. What is its verdict? It cannot be denied that the British handle these matters adroitly, and their judgment carries some weight.
Well then, there is not a single voice in England that does not bless postal reform. I have evidence of this in the open subscription in favor of Mr. Rowland Hill; I have evidence of this, from what John Bull has told me, in the novel way in which the people express their gratitude; I have evidence of this in the admission so often repeated by the League394: "Never would we have developed the public opinion that is now overturning the protectionist system without the penny post." I have evidence of this in something I have read in a work written by an official pen:
"The tax on letters has to be set not with a fiscal aim but with the sole object of covering expenditure."
To which Mr. Mac-Gregor395 adds:
"It is true that since the tax has been reduced to our smallest coin, it is not possible to lower it further, although it provides revenue. However this revenue, which is constantly increasing, should be devoted to improving the service and developing our steam packets on every sea."396
This leads me to examine the commission's fundamental thought, which on the contrary is that the tax on letters should be a source of revenue for the State.
This thought dominates your entire report, and I must admit that, under the sway of this preoccupation, you could not reach a conclusion that was either grand or comprehensive; it would be fortunate, indeed, if, by wanting to reconcile every system, you did not combine all their disadvantages.
The first question that presents itself is therefore this: Is correspondence between individuals a good subject for taxes?
I will not go back to abstract principles. I will not point out that, as society exists only because of the communication of ideas, the aim of every government ought to be to encourage and not hinder such communication.
I will examine the existing facts.
The total length of royal, departmental and local roads is one million kilometers. Assuming that each has cost 100,000 francs, this makes a capital of 100 billion spent by the State to encourage the movement of goods and people.
Well, I ask you, if one of your honorable colleagues put forward to the Chamber a draft law that said:
"From 1st January 1847, the State will collect from all travelers a tax that is calculated, not only to cover the expenditure on the roads but also to generate four or five times the amount of this expenditure for its coffers …"
Would you not find this proposal antisocial and monstrous?
How is it that this concept of profit, what am I saying, of simple remuneration, has never occurred to anyone when it is a matter of the circulation of goods, and yet it appears so natural to you when it is a question of the circulation of ideas?
I dare to say that it is a matter of habit. If it were a question of creating the postal service, it would certainly seem monstrous to base it on the principle of raising revenue.
And please note that in this instance oppression is more clearly visible.
When the State opens a road, it does not force anyone to use it. (Doubtless it would do so if the use of the road were taxed). But since the existence of the royal post, nobody can any longer write using another avenue, even if it were to his mother.
Therefore, in principle, the tax on letters should be remunerative only, and for this reason, uniform.
If this concept is used as a starting point, how can we fail to marvel at the facility, the beauty and simplicity of the reform?
Here it is in its entirety and, subject to editing, formulated as a draft law:
"Article 1. From 1st 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."
This is very simple, I admit, much too simple, and I am expecting a host of objections.
While we can assume, however, that this system has disadvantages, this is not the question; we need to know whether yours does not have still more serious ones.
And in good faith, can it in any way (except for revenue) bear comparison for an instant?
Let us examine them both. Let us compare them from the points of views of ease, convenience, speed, simplicity, orderliness, economy, justice, equality, increased volume, customer satisfaction, intellectual and moral development, andd its civilizing effect and then say, with our hands on our hearts, that it is possible to hesitate for a second.
I will take care not to expand on each of these considerations. I have given you the headings of a dozen chapters and leave the rest blank, convinced that there is nobody better placed than you to fill them in.
But since there is just one objection, revenue, I do have to say a word about this.
You have drawn up a table from which it is apparent that a single tax, even at 20 centimes, would constitute for the Treasury a loss of 22 million.
At 10 centimes, the loss would be 28 million and at 5 centimes, 33 million, extrapolations so terrifying that you do not even formulate them.
But allow me to say that the figures in your report cavort with a little too much abandon. In all of your tables and calculations you imply the following words: all other things being equal. You assume the same costs with a simple administrative structure as with a complex one, the same number of letters with an average tax of 43 as with the single tax of 20 centimes. You limit yourself to this rule of three: 87 million letters at 42 ½ centimes have produced so much. Half as many have yielded such and such. Therefore at 20 centimes, they will produce so and so; accepting nevertheless some differences where these run counter to the reform.
To evaluate the real loss to the Treasury, we first need to know what would be saved by the service; next, to what extent the volume of correspondence would increase. Let us take into account just this latter information, since we may assume that the savings achieved on expenditure would come down to the fact that the current staff would be confronted with a service on a larger scale.
Doubtless it is impossible to set a figure for the increase in circulation of letters, but in this type of question, a reasonable analogy has always been accepted.
You yourself say that in England a reduction of 7/8 in the tax has led to an increase of 360 percent in correspondence.
Over here, a reduction of the tax, which is currently at an average of 43 centimes, to 5 centimes would also be a reduction of 7/8. It is therefore possible to expect the same result, that is to say, 417 million letters instead of 116 million.397
But let us base our calculations on 300 million.
Is it an exaggeration to agree that with a tax that is half as much, we would reach 8 letters per inhabitant, where the English have reached 13?
Well, 300 million letters at 5 centimes give 15 mill.
100 million journals and printed matter at 5 centimes 5
Travelers on the mail-coaches 4
Shipments of money 4
Total receipts 28 million
Current expenditure (which might be reduced) is 31 million
To be deducted, expenditure on steam-packets 5
Outstanding on mail bags, travelers and money shipments 26
Net result 2
Currently, the net result is 19
Loss, or rather a reduction in profit 17 million
Now I ask if the State, which makes a positive sacrifice of 800 million per year to facilitate the circulation of people free of charge, ought not to make a negative sacrifice of 17 million for failing to make money on the circulation of ideas?
But in the end, I know that the tax authorities are people of habit and just as they easily adopt the habit of seeing revenue increase, by the same token they are habitually uneasy to see revenue decrease by a obole. It appears that they are provided with those admirable valves that, in our bodies, allow blood to flow in one direction but prevent it from retracing its flow. So be it. The tax man398 is a bit old for us to be able to change its behavior. Let us not hope, therefore, to persuade it not to act. But what would its staff say if I, Jacques Bonhomme, showed them a means that was simple, easy, convenient and essentially practical for doing considerable good to the country without it costing them a centime!
The post pays the Treasury gross 50 million
Salt 70
Customs duties 160
Total for these three services 280 million
Well then! Set the tax on letters at a uniform rate of 5 centimes.
Decrease the tax on salt to 10 francs per quintal, as voted for by the Chamber.
Give me the authority to modify the rate of tariff duties so that I WILL BE FORMALLY PROHIBITED FROM RAISING ANY DUTY, BUT THAT I WILL BE FREE TO DECREASE THEM AS I SEE FIT.
And I, Jacques Bonhomme, guarantee you not 280 but 300 million. Two hundred bankers in France will be my guarantors. As my premium, I ask only for anything in excess of 300 million that these three taxes produce.
Now, do I need to list the advantages of my proposal?
1. The people will receive all the benefits of the cheapness in the price of a product of vital necessity, salt.
2. Fathers will be able to write to their sons and mothers to their daughters. The affections, feelings and outpourings of love and friendship will not, as they are today, be buried in the depths of people's hearts by the hand of the tax man.
3. The carriage of letters from one friend to another will no longer be recorded in our records as though it were a criminal action.
4. Trade will blossom again with freedom; our merchant navy will rise from its humiliation.
- The tax man will initially gain twenty million and subsequently, all the savings made by each citizen on salt, letters and objects on which duties have been decreased, will pour into the other steams of taxation.
If my proposal is not accepted, what should I deduce from this? Provided that the company of bankers that I represent offers sufficient guarantees, on what pretext will my offer be rejected? It is impossible to invoke the balancing of budgets. The budget will certainly be unbalanced but in the sense that revenue will exceed expenditure. This is not a question of theory, of a system, a statistic, a probability or a conjecture; it is an offer, like that from a company that is asking for the concession for a railway. The tax men tell me what they take from the postal services, salt and customs duties. I offer to give them more. The objection cannot therefore come from them. I offer to decrease the tariff on salt, postal services and customs services and undertake not to raise them; the objection cannot therefore come from taxpayers. Where then does it come from? The monopolists? It remains to be seen whether their voice is to stifle that of the State and that of the people in France. To be reassured in this connection, would you be so good as to forward my proposal to the Council of Ministers.
Jacques Bonhomme.
P.S. This is the text of my offer:
"I, Jacques Bonhomme, representing a company of bankers and capitalists who are ready to give any form of guarantee and deposit all the sureties necessary;
Having learnt that the State draws only 280 million from the Customs Service, the Postal Service and from salt by means of the duties as currently set,
I offer to give them 300 million of gross product for these three services,
Even though it will decrease the tax on salt from 30 francs to 10 francs;
Even though it will decrease the tax on letters from an average of 42 ½ centimes to a single and uniform tax of 5 to 10 centimes;
On the sole condition that I will be permitted, not to raise (this I will formally be prohibited from doing) but to lower customs duties as far as I choose.
Jacques Bonhomme."
"You are crazy," I said to Jacques Bonhomme, who sent me his letter, "you have never known how to do things by halves. The other day you were shouting about the hurricane of reforms and here you are, asking for three, making one the condition for the two others. You will be ruined." "Do not worry," he answered, "I have done all my calculations. Please God, let them agree! But they will never do so." On this we left each other with our heads bursting, his with figures and mine with thoughts which I will spare the reader.
Endnotes376 (Paillottet's note) Taken from the issue of Le Journal des Economistes dated May 1846.
377 This article was published in May 1846 at a time when the success of the passage of the abolition of the protectionist Corn Laws in England was very close to being achieved (the abolition was announced by Peel in January, the House passed the legislation in May and the House of Lords agreed in June 1846). Bastiat held out great hope that the Chamber of Deputies would reduce French tariffs following the success of the Anti-Corn Law League in England. When the issue came up for debate in 1847 the free traders lost and when the country was engulfed in Revolution in early 1848 the issue of free trade took second place to the problem of fighting socialism in which Bastiat was very active as a Deputy during 1848-1850. See the glossary entry on "Anti-Corn Law League," "The Corn Laws," and "French Tariff Policy" in Appendix 3 "Economic Policy and Taxation."
378 In the July Monarchy Deputies were elected for a maximum of 5 years before a new election had to be called. Most of the governments did not see out their full term as they were frequently dissolved early by King Louis Philippe because of some irreconcilable conflict or the loss of a majority. The "fourth session" would have been the last session before a new election had to be held, had the governments gone for their full term, and it was the period of campaigning for re-election with all the promises to the voters which this entails. See the glossary entry on "The Chamber of Deputies."
379 The fifth legislature of the July Monarchy was elected in two stages in March and July 1839 but was dissolved early by Louis Philippe on 16 June 1842. The sixth legislature was elected on 9 July 1842 but was dissolved in July 1846. The seventh legislature was elected on 1 August 1846 and came to end when the regime was overthrown in the Revolution of February 1848. An election was held on 23 and 24 April 1848 to appoint a new Constituent Assembly of the Second Republic, to which Bastiat was elected to represent Les Landes. Another election was held on 13 May 1849 to appoint the first National Assembly of the Republic, to which Bastiat was also elected. See the glossary entry on "Chamber of Deputies."
380 The official newspaper of government during the July Monarchy in which laws, decrees, and parliamentary debates were published. Not to be confused with Le Moniteur industriel which 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".
381 The reforms across the Channel to which Bastiat refers include the First Reform Act of 1832 which expanded the franchise to include some members of the middle class, the reform of the Post Office in 1839 led by Sir Rowland Hill, Sir Robert Peel's reduction of the tariffs on hundreds of items after 1842, and of course the repeal of the Corn Laws in 1846. See the glossary entries on "Rowland Hill," "Sir Robert Peel," and "The Anti-Corn Law League."
382 "Oh dear! What a pace! / One at a time, for pity's sake." They come from the "Largo al factotum" aria in the first act of Gioachino Rossini's opera The Barber of Seville (1816), where Figaro sings "Ahimè, che furia! / Ahimè chef olla! Uno alla volta per carità! Ehì, Figaro! Son qua. / Figaro qua, Figaro là, / Figaro su, Figaro guì" (Ah, what a frenzy! Ah, what a crowd! One at a time, please!. Hey, Figaro! I'm here. Figaro here. Figaro there, Figaro up, Figaro down"). The libretto was by Cesare Sterbini based upon the play by Beaumarchais from 1775.
383 "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. In England at this time the phrase used to refer to the average Englishman was "John Bull." See the glossary entry on "Jacques Bonhomme [person]."
384 In 1839 the Uniform Four Penny Post reform was introduced in England. 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 to then the price had depended on the distance carried and was paid by the recipient. A similar law was adopted by France in 1848. As a token of thanks the British public raised through subscription £13,360 which was presented to Hill in 1846. See the glossary entry on "Rowland Hill."
385 Sir Robert Peel (1788-1850) was the British Prime Minister in 1841 and introduced a series of economic reforms (he cut the rate of tariff on hundreds of items after 1842) which led to the abolition of the protectionist Corn Laws in May 1846. See the glossary entries on "Peel," "Anti-Corn Law League," and "The Corn Laws."
386 Lord John Russell (1792–1878) was a Member of Parliament, leader of the Whigs, and several times a minister. He served as prime minister from 1846 to 1852 and from 1865 to 1866.
387 Letters sent to a village without a post office had to pay a surcharge of 10 centimes.
388 Bastiat use the English phrase "go on" in the original.
389 In 1847 125 million letters were sent at an average cost of 43 centimes. 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. See C.S. "Postes, DEP, vol. 2, pp. 421-24, and the Appendix on "French Government Finances in 1848-49."
390 Alexis Piron (1689-1773) was a poet and dramatist who became famous for his witty epigrams. He was elected to the French Academy in 1753 but Louis XV refused to ratify his election because of some scandalous verse Piron had written as a young man. Piron however had the last laugh as he had written his own epitaph which says: "Here lies Piron / who was nothing, / not even an Academician."
391 The sale of tobacco in France was a state monopoly. It contributed fr. 120 million to government receipts in 1848 (8.6% of a total of fr. 1.4 billion). See Appendix 4 "French Government Finances 1848-1849."
392 Adolphe Vuitry (1813-1885) was a lawyer, economist and politician. He was the undersecretary of state for finance in 1851 in the Ministry of Léon Faucher. In 1863 he was appointed governor of the Bank of France.
393 Bastiat uses throughout the term "la taxe des lettres" which would normally be translated as "postal rate" but both Bastiat and the French government in its annual budget regarded it as a tax which raised revenue rather than a charge for a service.
394 The Anti-Corn Law League which took advantage of the penny post to spread their newspapers and leaflets opposing tariffs.
395 John MacGregor (1797-1857) was a statistician, historian, diplomat, and supporter of free trade. He was appointed one of the Secretaries of the British Board of Trade in 1840. During the 1840s he published very detailed reports on tariffs in various European countries. See the glossary entry on "McGregor."
396 We have not been able to find this quotation from MacGregor. The closest we could find is the opening two paragraphs of Chapter 6 "Post Office" of The Commercial and Financial Legislation of Europe and America (1841), p. 264 where he states: "We have, long before the change was made in the post-office charges, been of the opinion that, as the government should never possess a monopoly of trade, the post-office charges should be regulated, not with a view to revenue, but to the purposes of covering all the expenses required to convey letters and intelligence with security and rapidity. The tax imposed on the public by the late post-office reform is so very moderate, that while it still yields a considerable revenue, which we believe confidently will increase, no one can desire any alteration in the rate of postage."
397 In 1847 the number of letters sent through the 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%. See C.S. "Postes, DEP, vol. 2, pp. 421-24, and the Appendix on "French Government Finances in 1848-49."
398 Bastiat uses a colloquial term "le fisc" to describe the taxation department (or IRS) or Treasury. We have translated it as "the tax man."
T.66 (1846.05.19) "On the Railway between Bordeaux and Bayonne. A Letter addressed to a Commission of the Chamber of Deputies" (MB, May 1846)↩
SourceT.66 (1846.05.19) "On the Railway between Bordeaux and Bayonne. A Letter addressed to a Commission of the Chamber of Deputies" (Du chemin de fer de Bordeaux à Bayonne. Lettre adressée à une commission de la Chambre des députés), Mémorial bordelais, 19 May 1846. [OC7.22, pp. 103-8.] [CW1.2.1.4, p. 312-16.]
Editor's IntroductionLetter addressed to a commission of the Chamber of Deputies
TextIt is pointless both for those favoring the direct route and those the winding one to lay any claim to virtue. Each side has only one serious argument. The first says, “Our line is shorter by twenty-nine kilometers.” The second replies, “Ours services four times as many people.” Or, aggressively, one party claims: “Your winding route makes transport more expensive for each end” while the other retorts, “Your direct route goes through uninhabited countryside and sacrifices all the interests of the region.”
When the issue is put this way, we understand how very important it is for the supporters of the direct route to prove first that the uninhabited countryside is not as uninhabited as people suppose and secondly that the valleys are neither as rich nor as populous as is claimed.
This is the line of argument to which the commission of inquiry of the Basses Pyrénées had recourse, and in the candid account of his thinking by the minister of public works, it was reproduced in the following terms:
“It should be noted that, in the districts of the greater Landes, the population has constantly increased by an average of 50 percent in the last forty years, while in the valleys, it has remained stationary and has even decreased in a few locations.”
I have reason to believe that the factual matter quoted was drawn from a memorandum I published on the distribution of taxes in the département [313] of the Landes, one which probably, nay, inevitably, will be put before you. I should therefore be allowed to protest against the strange use people are trying to make of it. I do not presume to plead for or against either of the two rival routes, but I do claim the right to object to the way in which those who would keep the railway out of our valleys have recourse to any and all arguments, even the ones about their suffering.
Anyone who has been involved with the vast subject of population knows that it increases normally much faster in regions that are underpopulated than in those in which it has already become dense. To say that this is a reason to give preference to the former with regard to the railway is like saying that the railway is more useful in Russia than in England and in the Landes than in Normandy.
The argument then generalizes a local fact. It is not true that the population is decreasing in the valleys of the Garonne, the Midouze, and the Adour. It is growing slowly there, it is true, precisely because it is very dense.
What is true, and what I do not withdraw, is that in a small region known as the Chalosse, situated on the left bank of the Adour, and in particular in four or five wine-growing districts in this province, the number of deaths in the last twenty years has regularly exceeded the number of births.
This is a deplorable perturbation, a phenomenon unique to this century, one which is manifested nowhere else, not even in Turkey. To know what we should infer from it, it is not sufficient merely to identify it factually; we have to relate it to its cause.
The population has decreased, say the commissioners of inquiry. This sentence is easily said. Oh! They do not realize the magnitude of what they are implying! They were not present during the painful labor through which a revolution like this was achieved! They do not realize all the moral and physical suffering that it involves. I will tell them. It is a sad story, but one that is full of edification.
The Chalosse is one of the most fertile regions in France.
In former times, wines were produced and shipped down the Adour. Some of the wine was consumed around Bayonne; the rest was exported to northern Europe. This export trade occupied the activity and capital of ten or twelve very well-regarded houses in Bayonne, the names of which one of your colleagues, M. Chégaray, can quote if need be.
At that time, the wines sustained their value well. Prosperity was extensive in the region as was the population. The number of sharecropping farms [314] was naturally restricted and the farms did not cover more than two or three hectares. Each of these small vineyards, worked like a garden, supplied a family with an assured means of existence. Owners’ and sharecroppers’ incomes provided a livelihood for a populous class of artisans, and you can imagine how dense the population became under these economic arrangements.
However, things have changed a great deal!
The commercial policy that prevailed between the nations closed off the external markets of the Chalosse. Exports were, I say, not just reduced but destroyed, indeed completely annihilated.
On the other hand, the system of indirect taxation considerably restricted its internal markets. By freeing the wine produced on his property from consumption tax in favor of the owner, this system altered the division of labor in wine production. It acted as would a law which stated, “Bread shall be subject to a tax, except for that made by individuals in their household.” Obviously, such an arrangement would tend to destroy bakeries.
Finally, the Adour is gradually ceasing to be navigable. Authentic documents show that ships used to go upriver to Aire. Elderly inhabitants of the region have seen them go as far as Grenade and I myself have seen them load at Saint-Sever. Now they stop at Mugron, and in view of the difficulties they have in getting there it is easy to see that shortly they will not go further than the confluence of the Midouze.
I do not have to discuss the causes for all this. They exist, it is clear. What effects have they had?
First of all, they reduce the income of the owners. Secondly, they make the portion of the sharecropper inadequate to provide a living for him and his family. It was therefore necessary for the owner to take a considerable slice out of what was left of his income to provide the sharecropper with what was strictly necessary to keep him alive. One of them had to be ruined. In vain did he combat the attractions of luxury with which the century surrounded him on all sides. In vain did he impose on himself the hardest sacrifices, the most detailed parsimony. He could not escape the bitter suffering that accompanied his inevitable degradation.
The sharecropper was no longer a sharecropper; his payment in kind served only to diminish his debt, and he became a day laborer, given a daily ration of corn in lieu of cash payment.
In other words, it was acknowledged that the acreage of farms, which was adequate in other circumstances, was now too restricted, and at this moment [315] a remarkable revolution is taking place in the agricultural constitution of the region.
Since wine no longer had any markets, two hectares of vines could no longer constitute a working farm. There is a clear tendency to organize property on other bases. Out of two sharecropping farms with vineyards, one is made that encloses a fair proportion of arable land. It can be seen that, under the effect of the causes described, two or three hectares can no longer provide a living for a family of sharecroppers; five or six are needed. Mergers are also being made here, but these mergers change people’s economic conditions.
In the village in which I live, thirty sharecropper houses have been demolished, according to the land register, and more than one hundred and fifty in the district whose legal interests have been entrusted to me, and, mark this well, this means as many families that have been plunged into complete destruction. Their fate is to suffer, decline, and disappear.
Yes, the population has decreased in one part of the Chalosse and if this admission had to be leveled against the region, I would also add that, although this decrease in population is evidence of our distress, it is far from expressing its full measure. If you traveled through my unfortunate homeland, you would see how much men can suffer without dying and understand that one life less on your cold statistics is a symptom of incalculable torture.
And now our sufferings are being used as evidence against us! And in order to refuse us markets mention is being made of suffering that has been inflicted on us by the lack of markets! Once again, I am not voicing an opinion on the route of the railway. I know that the interests of the Chalosse will weigh very little in the balance. But, although I do not expect it to be an argument in favor of the route through the valleys, I do not want it to be used as an argument against, because such an argument is as false as it is cruel. Is it not, in fact, pitiless cruelty to say to us, “You have beautiful sunshine, fertile soil, cool valleys, hill slopes on which the work of your fathers spreads prosperity and happiness? Thanks to these gifts of nature and art, your population was as dense as that in our richest provinces. You lost all your markets suddenly, and distress followed prosperity, and tears, songs of joy. Now, while we have at our disposal an immense outlet, we do not yet know whether we will allocate it to uninhabited areas or put it within your reach. Your sufferings have made our decision for us. They clearly exist; the government itself has noted them in the following laconic phrases: this is [316] nothing, just a falling population. There is no reply to this, and we have now firmly decided to redirect the route through the greater Landes. By casting all your towns into ruin, this decision will accelerate the depopulation that so saddens you, but is not the opportunity of peopling the uninhabited areas worth the certainty of decreasing the population in the valleys?”
Oh! Sirs, give the railway the route which in your wisdom you consider to be in the best general interest, but if you deny it to our valley, do not say in your considerations, as you are committed to doing, that it is its misfortunes and its misfortunes alone that have determined your decision.
T.288 "A Light-Hearted Look at Free Trade" (mid or late 1846)↩
[CW4 draft 16 June, 2017] SourceT.288 (1846.06.??) "A Light-Hearted Look at Free Trade" (Libre-échange Gai) (mid or late 1846). Unpublished pieces found in his papers. It is in three parts:
- 1. "One has to see it to believe it" (Il faut le voir pour le croire), pp. 297-99;
- 2. "The World turned upside down again" (Encore le monde renversé), pp. 299-300;
- 3. "A Simple Dialog (between a Protectionist and a Free Trader)" (Simple dialogue), p. 301.
In Ronce, Appendix V, pp. 297-301. [CW4]
Editor's IntroductionThese short pieces were not published in Bastiat's Collected Works (1862-64) but appeared in an Appendix to Ronce's book (1905). They are not dated but were most likely written during 1845 when he was experimenting with different ways to make economics appealing and understandable to ordinary people. He published several such pieces in the JDE beginning in May with "Economic Sophisms: I Abundance and Scarcity" which was followed by 10 more during the rest of the year. They were published, along with an additional 11 pieces, in January 1846 in the first collection of Economic Sophisms . 613 The short pieces published here did not make the cut. Part of the reason might be that he was unsure about how "gai" (light-hearted) he thought they should be. After he was criticised in a review of ES1 for being too serious he made a concerted effort for the next collection to be both more light-hearted and hard-hitting in its "harsh language."
We can see here good examples of the style of writing Bastiat would use in his many of his sophisms. In "The World turned upside down again" we see a dialog between two unnamed individuals concerning the contradictory positions taken towards government subsidies by certain newspapers, which is the format he would use on many other occasions. 614 In "A Simple Dialog between a Protectionist and a Free Trader" we see another conversation between two stock characters, a "Free-Trader" and a "Protectionist." In later sophisms Bastiat would often use the character Jacques Bonhomme, 615 a kind of French everyman, as the voice of free trade and scepticism about government intervention in the economy.
Text 1. "One has to see it to believe it"Newspapers which present themselves as the sole defenders of liberty, as the fierce voice of democracy, but which nevertheless support with all their might legal privileges and monopolies. You have to see it to believe it!
A public which closes its eyes to this astonishing inconsistency and does not look for the hidden cause of this. You have to see it to believe it!
A man obtains a concession to open a mine. Every penny which he puts into it costs him sacks of gold because he himself helps to make the laws which bans the import of foreign coal. 616 Meanwhile, the people shiver from the cold. Someone comes along and says to the people "The law is bad." The concession holder of the mine exclaims that "the law is excellent." The shivering people repeat this "The law is excellent." You have to see it to believe it!
I know of a product which is produced in only one factory in France. The factory owner sets whatever price he wants for his goods and becomes a millionaire because he managed to prohibit similar products entering from abroad. I wanted to tell the workers that this measure, besides being unjust, harmed them. But the millionaire factory owner goes out among his workers everyday telling them that "You see that man over there? He is a utopian and a troublemaker who wants to ruin you." 617 And the workers repeat as if in a chorus, "He is a troublemaker and wants to ruin us." The law is kept on the books and the man with 1 million, seeing that before long he will soon be the man with two million, laughs under his hat. You have to see it to believe it!
Someone says to a Minister before the entire Chamber: "You have embezzled funds. You have engaged in the buying and selling of public functions. You are the embodiment of immorality ." The Minister rises to his feet and replies: "I am delighted to see that the Chamber is outraged at my immorality. That is good, very good. Fellow Deputies I am pleased with you. Wipe out immorality. If you go down this excellent path I will support you. This is how we create a good government." You have to see it to believe it!
The Journal des Débats standing for liberty and Le National standing for privilege. 618 You have to see it to believe it!
The press says: "Workers, you don't eat enough meat. Doubtless this is because you don't know what is good for you and that is the fault of the government which ought to teach you this." The workers reply: "We know we should eat meat but the government prevents its importation. That is why we are so thin." The press replies: "You are deluding yourselves. If you are not eating more meat it is because of sheer ignorance. As for letting more meat enter the country, you should oppose this with all your might. And so the workers do what the press advises them to do. You have to see it to believe it!
There are some writers 619 who have acquired considerable renown and broad influence who repeat every day, in the style of the Book of the Apocalypse, that what our country lacks is "property without property" and "liberty without liberty." It is surprising how this discovery is making them a fortune. You have to see it to believe it!
Other writers become popular by calling for the abolition of all taxes and the increasing of all kinds of government spending. Free us, they say to the Ministers, of the tax on salt, that on sending letters, the octroi tax, and customs duties, etc. 620 Increase spending on the army, the building of ships and the navy, the fortifications around our towns, 621 exert the supremacy which belongs to France over all of Europe, give charity to all the unfortunate people, give work and bread to everyone, bring up their children for free. This is called the genius of the organiser. 622 You have to see it to believe it!
2. "The World turned upside down again" (Encore le monde renversé), pp. 299-300; (T1)Some time ago a question was posed in this way:
Does the law give a subsidy to those who sell meat by making others pay a higher price for it, which is paid by those who eat it?
Le me paint you a picture of the deep surprise felt by a young naval officer who, returning from a long voyage, learns that the Journal des Débats was against and Le National was in favour of the subsidy.
Today another question comes to mind:
Would the farm worker from the South or the textile worker from the North pay a tax to increase the profits of the dancers at the Opéra? 623
A serious-minded magistrate and a popular newspaper have given us their opinion.
— Ah! No doubt the popular newspaper rejected this ridiculous injustice and the serious-minded magistrate defended it?
— Not at all! It is the exact opposite.
— What the hell! That is too much. Either the performers at the Opéra have some talent or they do not. If they have any, their profits would be quite honest ones, and one knows all about those who make 100,000 francs in income and flaunt the most scandalous luxury. If they do not have any talent why should they be subsidised to such an extent by the peasant and the textile worker who will never see them? Isn't it quite natural for those who go to the Opéra to cover there costs?
— That is what the magistrate said.
— So why did Le National support the subsidy?
— Perhaps because the magistrate criticised it?
— There must be some other reason. Give me your thoughts.
— When one is a popular newspaper one has to chase after popularity. Now, there are two infallible means of achieving this? The first is to push up one's expences; the other is to fight against raising the price of the paper.
— But that is contradictory.
— That doesn't matter! The world is made up of two classes: 624 those who can live off abuses and those who pay for them. By pushing up their expences they win over the former; by fighting against increasing their revenue one wins over the latter.
3. "A Simple Dialog between a Protectionist and a Free Trader"A Protectionist: What do you do when someone treads on you your foot?
A Free Trader: I cry out.
Protectionist: You Englishman! And what if no one hears you?
Free Trader: I scream even louder.
Protectionist: So very English! So very English! Oh come on! What if no one comes to help you?
Free Trader: I would look for other people who were in a similar situation, see if they understood what was happening, and get them to cry out with me.
Protectionist: You Anglophile! 625 And what if they don't understand?
Free Trader: I would make it my task to make them understand.
Protectionist: You Anglo-maniac! And how would you do this?
Free Trader: I would talk, I would write, I would invite those who had a good turn of phrase and a sharp pen to speak and write.
Protectionist: Just like John Bull! God damn it! 626 I no longer recognise who you are. You are no longer French.
Free Trader: However, it seems to me that what I am doing is the most natural thing there is, and I don't see that I could do otherwise.
Protectionist: No doubt, but the English do just that.
Free Trader: Well now, Monsieur, and what do you do when you are hungry?
Protectionist: I eat.
Free Trader: You Englishman! You copycat! And what do you do when are thirsty?
Protectionist: I drink.
Free Trader: You Englishman! That is pure Cobden! 627 And what do you do when your nose is blocked up?
Protectionist: I blow it.
Free Trader: What a mimic! Such a parody! What a lot of monkey business!
613 In CW3, pp. 1-110.
614 Of the 75 "economic sophisms" he wrote, 14 or 19% were in dialog form. See the Editor's Introduction to CW3, pp. xlix-lxxxii for a discussion of his writing style.
615 See the glossary entry on "Jacques Bonhomme (Person)."
616 Only the wealthiest 240,000 taxpayers in France were allowed to vote under the July Monarchy. Bastiat called them "la classe électorale" (the voting class). See the glossary on "The Chamber of Deputies and the Electoral Class."
617 Bastiat pursues this idea further early the following year in T.102 (1847.01.17) "The Utopian" (L'utopiste), LE , 17 Jan. 1847, no. 8, pp. 63-64; which becomes ES2 11. He is clearly the "utopian politician" who is given power by the king to introduce any liberal reforms he likes, which provides us with a very good idea of what Bastiat's own view of what the powers of the state should be. He begins to do so but pulls back in the end because he realizes he does not have the support of the people and does not wish to impose liberty upon them from above. See, CW3, pp. 187-98.
618 The Le Journal des débats supported the liberal-minded Doctrinaire group around Guizot during the July Monarchy. Bastiat would write several important pieces for it such as "Property and Plunder" (July 1848) and "The State" (Sept. 1848). However, it supported protectionism. Le National was an important liberal and increasingly republican newspaper during the July Monarchy. It was founded by Adolphe Thiers, François-Auguste Mignet, and Armand Carrel. It played an important role in the outbreak of the February Revolution of 1848 and many of its friends and supporters got positions in the new government.
619 Bastiat probably has in mind socialist writers such as Louis Blanc or Proudhon whose critiques of property were becoming increasingly influential during the 1840s and would play an important role during the 1848 Revolution. They wanted to replace the liberal notion of property and individual liberty with a socialist version which Bastiat thought was contradictory.
620 These were all taxes Bastiat very much opposed and spent a considerable amount of his time before and during the 1848 Revolution trying to abolish. As Vice-President of the Chamber's Finance Committee during the Second Republic he was caught in the dilemma of trying to balance the budget as these taxes were being reduced at the same time as government expenditure was increasing on things like the National Workshops unemployment relief program.
621 This is a reference to the massive public works initiated by Thiers in 1841 and which were completed in 1844 to build the "fortifications of Paris" which were a massive military wall around the city with an accompanying outer ring of forts. The political economists opposed it on the grounds of its considerable cost and the fact it was yet another barrier around the city, in addition to the octroi toll gates, which hindered the free movement of goods and people. See the glossary entries on "The Fortifications of Paris" and "Octroi."
622 See Bastiat's essay "The State" in which he describes the state as "the great fiction whereby everybody tries to live at the expence of everybody else,"CW2, pp. 93-104, quote on p. 97; and his disparaging reference to "la grande organisateur" (the great organizer) in ES3 24. "Disastrous Illusions" (March 1848), in CW3, pp. 384-99, quote, p. 384.
623 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. Bastiat argued that the state should not subsidize theatres and the arts in Chapter IV "Theatres and the Fine Arts" in WSWNS, CW3, pp. 000. See also, "Documents extraits de l'enquête sur les théâtres," JDE July 1850, T. XXVI, pp. 409-12.
624 Bastiat's theory of class was still evolving when this piece was written. By the end of 1847 when he had finished works on ES2 (published in Jan. 1848) he argued that there were two classes, "la classes spoliatrice" (the plundering class) and "la classe spoliée" (the plundered class. See the opening two chapters of ES2 in CW3, "The Physiology of Plunder" and "Two Moral Philosophies, " pp. 113-39. See the glossary on "Bastiat's Theory of Plunder."
625 Bastiat made fun of the French habit of swinging wildly between love for the English and fear of the English in "Anglomania, Anglophobia" (c. 1847) in CW3, ES3 14, pp. 327-41.
626 The Protectionist uses the English phrases "John Bull" and "God damn."
627 Richard Cobden was a Manchester manufacturer who co-founded the free trade Anti-Corn Law League with John Bright in 1838. Bastiat began corresponding with him in November 1844 and developed a close friendship with him as he help found a French Free Trade Association in early 1846.
T.67 (1846.06.14) "To the Members of the Free Trade Association" (MB, June 1846)↩
SourceT.67 (1846.06.14) "To the Members of the Free Trade Association" (Aux membres de l'Association pour la liberté des échanges), Mémorial bordelais, 14 June 1846. [OC7.23, pp. 108-13.] [CW6]
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T.68 " On the Redistribution of Wealth by M. Vidal" (15 June 1846, JDE)↩
[CW4 draft 16 June, 2017] SourceT.68 (1846.06.15) " On the Redistribution of Wealth by M. Vidal" ( De la répartition des richesses. Par M. Vidal), JDE , June 1846, T. 14, No. 55, pp. 243-49. [OC1.12, pp. 440-51.] [CW4]
Editor's IntroductionFrançois Vidal (1812-1872) was a lawyer, writer, and politician who was active in socialist circles during the 1840s. He was particularly interested in political economy and wrote for several socialist magazines such as Victor Considerant's La démocratie pacifique and Pierre Leroux's La Revue indépendante . In the early months of the February Revolution he was the Secretary of the Luxembourg Commission which introduced the state funded unemployment program known as the National Workshops. 578 His book De la répartition des richesses, ou De la justice distributive en économie sociale (On the Redistribution of Wealth, or Distributive Justice in Social Economy) (1846) 579 was published at a time when the political economists began to counter the socialist critique of their views in a more methodical fashion.
Socialists had began their critique of free market economic thought in earnest in the late 1830s with the appearance of several works such as Louis Blanc's L'Organisation du travail (The Organisation of Work) (1839); 580 Victor Considerant's Théorie du droit de propriété (Theory of the Right of Property) (1839); 581 and Proudhon's Qu'est-ce que la propriété? (What is Property?) (1840). 582 These books sparked a debate which continued throughout the 1840s reaching a climax in the months immediately following the Revolution in February 1848 when many policies advocated by these socialist were put into practice. Louis Blanc advocated new co-operative ways of "organising" labour in "social workshops" which existed outside of privately owned factories and workshops where workers were paid wages. As head of the National Workshops program after the Revolution he was able to put these ideas into practice between February and June 1848. Victor Considerant advocated the universal "droit au travail"(right to a job) which would be guaranteed by the State. Socialists and their supporters in the Chamber tried hard to get a clause guaranteeing this right inserted into the new constitution of the Second Republic which was being debated over the summer of 1848 but was ultimately defeated. 583 Proudhon challenged the very idea of property itself and the justice of charging interest on loans and attempted to get the Chamber to support the creation of a People's Bank which would provide zero or low interest rate loans to workers. These socialist experiments came to a bloody end in June 1848 following the riots sparked by the closure of the National Workshops. Socialist activists were arrested in their hundreds, their magazines and political clubs were shut down by the police, and the country was placed under marital law under General Cavaignac.
The political economists began their response to the socialist challenge with Michel Chevalier's long critique of Louis Blanc in the Journal des Débats in August 1844. 584 This was followed by a very long three volume work De la Liberté du travail (On the Freedom of Working) (1845) by the doyen of the economists Charles Dunoyer (the permanent president of the Political Economy Society), 585 of which Bastiat wrote a brief review (see above, pp. 000); and Bastiat himself entered the fray with a series of articles and letters over the next two years: his letter to Lamartine on the right to work (Jan. 1845), his brief review of Dunoyer's book (March 1845), his review of Vidal's book (June 1846), his second letter to Lamartine (Oct. 1846), his essay "On Communism" (June 1847), and his reply to Considerant (Dec. 1847). 586 This first phase of criticism of socialist ideas was followed by a second anti-socialist campaign initiated by the Guillaumin publishing firm in mid-1848 in which Bastiat played a very important role with his series of 12 "Petits Pamphlets" which appeared until shortly before his death. 587
Of particular note in this review are Bastiat's thoughts on the following topics. First, his clear statement of his views about the distinction between "artificial" organisations and associations which are based upon coercion and state compulsion and which the socialists often modeled on the military; and "natural" ones which were based upon non-violent and cooperative agreements between individuals. This was a topic Bastiat would return to in his treatise Economic Harmonies (1850) in the very first chapter "Natural and Artificial Organisation." 588 Secondly, his rejection of the socialists's accusation that the political economists were "fatalists" because they accepted the idea that the world, including the world of economics, was governed by natural laws such as the law of supply and demand and their impact on prices. Bastiat's colleague Gustave de Molinari was to write an entire book on this matter, "Discussions of Economic Laws and the Right to Property", in 1849 as part of the Guillaumin anti-socialist campaign. 589 And thirdly, his critique of the idea of organising labour in state funded or controlled "workshops." This would occupy much of Bastiat's time in the first half of 1848 when he served as Vice-President of the National Assembly's Finance Committee from which he lobbied hard to shut down the National Workshops run by Louis Blanc and François Vidal.
TextThis book has been published under sorry auspices. Its appearance in the world has revived in the depths of literary caverns - "how hatred deepens in the hearts of our great journals" - an echo of insults more intended to sadden than annoy those to whom they are addressed and which heaps damaging prejudice, not only on the journalists but also the authors who have inspired them.
By a strange coincidence, on the very day on which I read in La Démocratie Pacifique 590 the following words of abuse which had been heaped on the heads of our most illustrious economists: ignorant and arrogant men, cursed heretics, idiots, impious beings, fatalists, plagiarists, puppets, traitors , etc. etc., I chanced to see a gallery of handwritten letters in which the greatest men of our century and the greatest friends of the human race, such as Jefferson, Madison, Bentham, Bernadotte, Chateaubriand, Benjamin Constant, 591 and even Saint-Simon 592 were seen to come forward to pay the most sincere and spontaneous homage to the science and philanthropy of J. B. Say. 593
But let us not seek a painful solidarity between Mr. Vidal and his incriminating critic who, I hope, will blush one day at his injustice and his heated remarks.
I think that it is evidence of overweening pride, when one is dealing with matters of any kind of science, to start by saying: "My predecessors knew nothing and saw nothing. In vain did men like Smith, Malthus, or Say devote their lives and powerful abilities to the study of a subject; they never achieved any understanding of it. As for me, here I am, I am just twenty years old and I have engaged in real science."
Would more confidence not be inspired in the general public if one said: "Science is of its very nature progressive. My predecessors have taken it forward, and with the help of their work I hope to advance it still further. They were obliged to delve into fundamental ideas and analyze the notions of labor, utility, value, capital, production , etc. but I do not think that they have studied sufficiently the phenomenon of the distribution of wealth. I come after them and, taking advantage of the knowledge they have passed on to us, taking up the baton of economic science where they left it, I am trying to take it one step further." 594
However, for Mr. Vidal to be able to say something like this, he would have needed to conform to the method used by his predecessors, observing the way things happen and are linked together. He rejects this method. According to him, limiting science in this way makes it merely an object of pure curiosity. He considers that his mission is to give advice, to teach, and perhaps even to impose rules of conduct. "A fine brand of science", he cries, "which can be summed up by a single negative statement: do nothing !" 595
Mr. Vidal is mistaken. Science never imposes on anyone a duty of inertia or, as we would say nowadays, immobility. It shines on all paths, both those that lead to good and those that lead to evil, and considers that its task is limited to this, since the propensity to action does not lie within it but in men. If the natural inclination of man propels him toward what is harmful, shining light on the consequences of such habits is certain to encourage this sorry direction. However, if man is inclined toward good, it is enough for science to show this, and unnecessary for it to invoke coercion or even duty in order to induce him to follow this path.
What separates us totally from the so-called Socialist, Fourierist, Communist or Saint-Simonian, etc. schools is exactly this. They situate the source of action in the observer while we leave it where it is, in the subject being observed, man.
What is strange is that they accuse us of seeing only figures and abstract quantities in man. "They should cease making an abstraction of man in a science whose aim is the happiness of man," says Mr. Vidal. 596
But it is you who make an abstraction of man and what he possesses in the way of intelligence, morality, life, initiative, and perfectibility, for in your view what is humanity if not an inert matter or clay that scholars under the cloak of being reformers and organizers can and ought to knead at will?
Political economy, as its very name implies, acknowledges that man is a feeling and thinking being and that he possesses the faculties of comparison, judgment, and decision making, that foresight warns him, experience corrects him, and that he carries within himself the idea of progress.
This is why political economy limits itself to describing phenomena, their causes and their effects, in the certain knowledge that men will be capable of choosing.
This is why, like the person who installs signposts at the start of each road, it is content to say: "This is where this one leads; that is where the other leads."
But as for you, all you see in men is matter for experiment, machines that produce and consume, and although, admittedly, in all fairness, you do want wealth to be shared equitably among them, you allocate this function to yourself, convinced that you can step in to do what Providence has not.
"In order to invent a machine, " says Mr. Vidal, "is it enough for an engineer to gather facts and then leave natural forces to act? Absolutely not; he would have to find the means of harnessing these forces and inventing his machine …" 597
"In the same way, in economics …, a particular mode of production and consumption or an economic system can be invented ." 598
Elsewhere he compares society to a regiment:
"Should we then leave each person free to carry out manoeuvres as he will, allow each officer or each soldier to carry out and follow his own little plan of campaign? etc." 599
And also, to an orchestra:
"Like the musicians of a disciplined orchestra, each of us has a useful and essential role …; but for there to be accord and unity, all the performers have to obey the vision of the composer and the direction of the conductor." 600
But when an engineer has cogwheels and springs in his hand, he is holding inert matter and his intervention is essential. Are men then just cogwheels and springs in the hands of a Socialist?
By contrast, although these soldiers whom you give as an example are men, qua soldiers they are no longer men but merely machines. The source of action is no longer with them. Subject, as the very arresting term has it, to passive obedience, they are no longer autonomous; they turn right or left at the slightest signal. Not surprisingly, one has to to draw the lucky straw to avoid being a soldier. 601 Believe me, the human race will not easily let itself be reduced to the passive role to which you assign it.
As to the other case, I happily agree that your musicians will achieve accord and harmony if the conductor imposes his direction.
For goodness sake, though, this is just not true in economics. Who can say that in every case infallible despotism would be the best solution?
But where is this orchestra conductor of society who is able to have his claim to infallibility and his right to power acknowledged?
In his absence, I prefer to leave the musicians to organize themselves by themselves, for, as you say, they are too intelligent not to understand that without this, harmony would be impossible!
You can thus clearly see that we are beginning to understand one another and that you have been led, like us and whether you like it or not, to leave the source of action where God has placed it, within the human race and not in the person studying it.
When we explain phenomena, their causes and their consequences, when we are content to show how a particular harmful act inevitably leads to a particular disastrous consequence; when for example, we say that laziness leads to poverty, over-population to a reduction in and a poor sharing of economic well-being, you cry that we are fatalists .
Let us understand one another. Yes, we are fatalists, in the way physicists are when they say, "If a stone is unsupported, it is bound to fall."
We are fatalists the way doctors are when they say, "If you over-eat, you are bound to have indigestion."
But is the acknowledgement of inexorable laws really fatalism? After all, did we make these laws, as you accuse us of doing when you criticise economists for all the ills of society, irrespectively of the bad habits, preconceived ideas, errors, and vices by means of which this society has drawn these harms upon itself?
True fatalism , I think, is at the root of all of the intellectual systems you employ, in that, however opposed they may be to each other, they agree only in this: the degree of happiness or unhappiness in men, insofar as this is independent of their vices and virtues and something over which, consequently, they have no control, depends solely on an arbitrary invention, on an imaginary organisation, which happens to have been conceived by Mr. Vidal, in the year of grace 1846.
It is very true that in 1845 Mr. Blanc imagined another quite different system. 602 Fortunately, however, the three billion men who cover the earth did not accept it, otherwise they would no longer be in time to try Mr. Vidal's.
What would have happened if the human race had bowed to the model invented by Fourier, which offered a 24 percent return to capital 603 instead of the 5 percent that the new invention guarantees? 604
To gain an idea of the spirit of despotism that is at the root of all these dreams one has only to notice how many formulae come pouring out as in the following examples:
"Production will have to be in proportion to the means of consumption."
"Work will have to be powerfully organized."
"All activities, minds, etc. will have to be called upon."
"Products will have to be distributed in accordance with justice."
"Each worker will have to be raised to the rank of a shareholder."
"He will have to be provided with the means of satisfying his needs, etc."
"A balance will have to be established between production, consumption, and the population."
" It is possible to contrive a proper industrial mechanism."
" It is possible to invent a particular mode of production and consumption."
"Above all, effective solidarity has to be established."
All of this is easily said. But when Socialists are asked: Who, then, will do all these things? If the human race is so passive, who, then, will breathe into it the breath of life? Each of them answers: Me.
We have to be fair to Mr. Vidal. He does not say Me ; he says: The government, the authorities .
However, this is just displacing the difficulty, for if all men are springs, soldiers, and inert matter, if every notion of order and organization emanates from one authority, what are the signs by which we can recognize it?
This is a major problem, and Mr. Vidal needed to take the trouble to solve it.
This is what he has to say:
We assume a priori that a normal government has been properly constituted. We leave to each person right to include under this name any system of government an individual prefers, wants, conceives of, or dreams about. Government, in whatever form , is in our view the source of protection, social support, and representative order for all and in the interests of all, etc. 605
If you assume a priori a normal and infallible government, we agree. Only show me its guarantee of infallibility and I will be ready to let myself be organized.
But if, because of the problem of finding this paragon of government, you recognize any form of authority, one that each person prefers, wants, conceives of, or dreams about , I very much fear that we will have as many forms of authority as there are men, which will take us right back to our starting point.
Here, Mr. Vidal has recourse to the major resource of Socialism, organization . It is just a question of organizing the government.
A bad government, he says, may abuse its use of power, that is true. But a good government, far from hindering true freedom in any way, may encourage its development …; it is therefore not a question of reducing or abolishing the government, but of giving it a proper organization . 606
That is all very good. But who will organize the government? Society, doubtless. But this will not do, since it is the government that ought to be organizing society. I see it now; Mr. Vidal, or any other Socialist who prefers, wants, conceives of, or dreams about it, will organize the government that will organize society. So it still remains to be seen how the first organizer will be organized.
In Mr. Vidal's book, there is a chapter that attracts the reader because of its alluring title: Practical conclusion . 607 We have wanted to see the Socialists formulate a conclusion for so long! At last!, I said to myself, the new social invention will be unveiled to us in full detail, together with the means of execution that enable the structure to be operated.
Unfortunately, basing himself on the premise that we are not in a fit state to understand this, Mr. Vidal tells us nothing.
Current society is a hovel, which we stubbornly refuse to abandon . He really does have the plan for new buildings in his pocket, but what is the use of showing them to us since we will not hear a word of it and we persist in keeping this tumbledown house, this worm-eaten structure? There is therefore no restoration work possible right now. The most that can be done is to install buttresses outside it and cover the cracks with plaster .
Our stubbornness thus deprives us of the advantage of knowing about the new social structure imagined by Mr. Vidal. All that he will let us see are a few props and a bit of plaster which he is quite willing to apply to postpone the collapse of the old building.
Having defined the problem thus, Mr. Vidal returns to his favorite formulae:
In every corner of the kingdom, in every department, we must organise the following:
Workshops in which every man of goodwill is always able to find work with which to earn his living, in which any unemployed worker who has been ousted by mechanization can use his hands; workshops that do not compete with existing workshops, for if this were so the numbers of poor people created on the one hand would be equivalent to the numbers assisted on the other.
Permanent workshops, which will be sheltered from unemployment and off-seasons and commercial crises as well as crises in production and politics.
Workshops in which the introduction of an advanced machine will benefit the workers, with no possibility of causing them harm …
Workshops in which a constant balance can be established between production and the needs of consumption, workshops to which the surplus population in towns can be diverted.
Workshops in which workers will find well-being, independence and security, a permanent job, and decent pay that is always assured. 608
We certainly give Mr. Vidal credit for his good intentions, and we would like to see his philanthropic views realized. 609 Like him, we would like there to be no man on earth who is not always assured of work, well-being, security, and independence and who would not be sheltered from commercial crises, crises in production and politics and even climatic ones, just as we would like there to be a perfect balance between production, consumption, and the population.
But instead of thinking, as Mr. Vidal does, that there is an abstract being called the State that has the means of bringing these fine dreams to fruition, instead of having individual happiness derived exclusively from an organization invented by a journalist and imposed externally on workers, we believe that it depends above all on the habits and virtues of the workers themselves. If some are industrious and others lazy, if among them there are some who are spendthrifts, others thrifty, and yet others who are miserly, some who live an ordered life and others who are profligate, if some marry at sixteen years of age and are responsible for families at an age when others are starting out in life, we cannot see what form of organization can prevent inequality from creeping into your community.
If there are some people who venture into risky enterprises, people who borrow without knowing how they will repay the loan, and others who lend without knowing how they will be repaid, if, for example, the community is seized with a passion for war which makes it hostile to the human race, we do not see how your organization will shelter it from commercial and political crises.
You can repeat ad nauseam that we are fatalists because we believe that harm itself has a purpose, namely to check the vice that has produced them; yes, we have to admit, we believe in the existence of these harms. We do not only believe in them, we see them, and in both the physical and moral sense we have no other alternative to offer the human race than to avoid them through foresight or to endure them though suffering.
Unless, therefore, you make your organizer responsible for having enough prudence for everyone, and enough order, economy, activity, education, and virtue for everyone too, you will have to allow us to continue to believe that the human race can be happy only to the extent that it possesses within itself these causes of happiness.
And certainly, if you allow me to assume the existence of just one vice in the community whose outline you sketch, if we suppose that it is afflicted with laziness, or profligacy, or ostentation, or ambition, or an overweening temperament, according to your reasoning you will understand that this community will soon suffer the fate common to all, it not lying in the power of the most ingenious organization to prevent the effect from following the cause.
Thus the social orders that each of you conceive on a daily basis assume perfection, firstly in the minds of their inventors and then in humanity itself, that same inert matter with which your fertile imagination is playing.
Well, Sir, if you grant us the assumption of human perfection as well, you may be sure that we economists will produce social plans just as attractive as yours.
Socialists criticise us for rejecting association . For our part, we ask them: What form of association are you talking about? Is it a voluntary association or is it a coerced or compulsory association .
If it is voluntary association, how can we be criticised for rejecting it, we who believe that society is one large association and that it is for this reason that it is called society ?
Do people merely want to talk about a few special arrangements that workers in the same industry might want to make among themselves? Good Heavens! We do not oppose any arrangement like this, whether it be a simple society or a business, an association of silent partners, a limited company, a company with shareholders, or even a phalanstery. 610 People may associate as they think fit; who is stopping you? We know full well that there are conventions that are more or less conducive to the progress of the human race and the proper distribution of wealth. For example, have we ever said for farming that farm rents and sharecropping, by the very fact that they exist, have the same effects on all classes of farmers? 611 However, we consider that science has fulfilled its role when it has set out these effects since, once again, we believe that the principle of action and the aspiration for something better exists not in science but in the human race.
You, on the other hand, who see the human race as merely pliable wax in the hands of an organizer, are proposing a coerced association, a form of association that takes away from every individual, except for one, any form of morality and any initiative, that is to say it is the most absolute despotism that has ever existed, not only in the annals of history but also in the imagination of mankind.
I will not end without granting Mr. Vidal the justice due to him. Although he has espoused the theories of the Socialists , he has not borrowed their style. His book is written in French and even good French. There is an occasional neologism but it is not excessive. Mr. Vidal spares us Fourierist vocabulary, with its arpeggios and central dramatic figures, its friendships in flattened fifths, and love stories in diminished thirds. 612 While he views science from an angle different from that of his predecessors, at least he takes it seriously, and does not despise his readers to the point of wanting to impose it on them using verses from the Apocalypse. This is a good sign, and if ever he publishes a second edition of his book I have no doubt that he will take out, if not what is mistaken in the section on theory, at least what is exaggerated or even unjust in the section he devotes to criticism.
578 See the glossary entries on "Vidal" and "The National Workshops."
579 François Vidal, De la répartition des richesses, ou De la justice distributive en économie sociale; ouvrage contenant: l'examen critique des théories exposées soit par les économistes, soit par les socialistes (On the Redistribution of Wealth, or Distributive Justice in Social Economy; a Work containing a critical Examination of Theories espoused by both Economists and Socialists) (Paris: Capelle, 1846).
580 Louis Blanc, Organisation du travail. Association universelle. Ouvriers. - Chefs d'ateliers. - Hommes de lettres. (Paris: Administration de librairie, 1841. First edition 1839).
581 Victor Considerant, Contre M. Arago: réclamation adressée à la Chambre des députés par les rédacteurs du feuilleton de la Phalange : suivi de la théorie du droit de propriété (Paris: Au bureau de la Phalange, 1840).
582 Proudhon, Qu'est-ce que la propriété? ou Recherches sur le principe du Droit et du Gouvernement. Premier mémoire (Paris: J.-F. Brocard, 1840).
583 Bastiat's thoughts on this can be found in his "Letter to Garnier on the Right to a Job" (October 1848), below, pp. 000.
584 This was reprinted in Louis Blanc, Organisation du travail (5ème édition), revue, corrigée et augmentée d'une polémique entre M. Michel Chevalier et l'auteur, ainsi que d'un appendice indiquant ce qui pourrait être tenté dès à présent (Paris: au bureau de la Société de l'industrie fraternelle, 1847). "Réponses à diverses objections." Chevalier's article, pp. 121-35; and Blanc's response from 17 Feb. 1845, pp. 135-48.
585 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). See the glossary entry on "Dunoyer."
586 See, T.23 (1845.01.15) "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to Work" (Un économiste à M. de Lamartine. A l'occasion de son écrit intitulé: Du Droit au travail), JDE , Feb. 1845, T. 10, no. 39, pp. 209-223 [OC1.9, pp. 406-28] [CW4]; T.20 (1845.?? March) "On the Book by M. Dunoyer. On The Liberty of Working" (Sur l'ouvrage de M. Dunoyer, De la Liberté du travail). Unpublished draft, possibly written in March when Dunoyer's book was published. [OC1.10, pp. 428-33] [CW4]; T.80 (1846.10.15) "Second Letter to M. de Lamartine" (Seconde lettre à Monsieur de Lamartine), JDE , Oct. 1846, T. 15, No. 59, pp. 265-70. [OC1.13, pp. 452-60] [CW4]; T.140 (1847.06.27) "On Communism" (Du Communisme), LE , 27 June 1847, no. 31, pp. 244-45. [OC2.22, pp. 116-24] [CW6]; T.165 (1847.12.26) "A Letter from Mr. Considérant and a Reply" (Lettre de M. Considérant et réponse) [OC2.25, pp. 134-41] [CW6]
587 See the glossary entry on "Bastiat's Anti-Socialist Pamphlets."
588 An earlier version of this appeared as an article in JDE Jan. 1848 which appears in this volume, see below pp. 000.
589 Molinari, Gustave de, Les Soirées de la rue Saint-Lazare; entretiens sur les lois économiques et défense de la propriété (Paris: Guillaumin, 1849).
590 La Démocratique pacifique (1843-1851) was the most successful of the journals which supported the socialist ideas of Charles Fourier. It was edited by Victor Considérant (1808-1893) whose wife subsidized its running costs. See the glossary entries on "Fourier," " La Démocratie pacifique ."
591 Bastiat lists the American presidents Thomas Jefferson and James Madison; the English legal philosopher and political economist Jeremy Bentham, the French marshal of the Army under Napoléon and future King of Sweden Jean-Baptiste Bernadotte, the French conservative author Chateaubriand, the French liberal political theorist Benjamin Constant and the French socialist Saint-Simon.
592 See the glossary entry on "Saint-Simon."
593 Jean-Baptiste Say (1767-1832) was the leading French political economist in the first third of the nineteenth century. His main work was the Treatise of Political Economy (1803).
594 Bastiat in these passages is unwittingly predicting what in fact would happen to him at the hands of some of his colleagues in the SEP in 1849 and 1850. His original work on rent, value theory, and population growth challenged the orthodoxy of his colleagues who believed that a self-taught economist from the provinces had little to say which would improve upon the work of Adam Smith, David Ricardo, and Thomas Malthus. See in particularly Molinari's obituary of Bastiat in the February issue of the JDE, T. 28 Jan-Avril, 1851, pp. 180-196.
595 Vidal is referring to the Economists' preferred policy of "laissez-faire." See, Vidal, De la répartition des richesses, p. 38.
596 Vidal, De la répartition des richesses, p. 37.
597 Vidal, De la répartition des richesses, p. 52.
598 Vidal, De la répartition des richesses, p. 52.
599 Vidal, De la répartition des richesses, p. 47.
600 Vidal, De la répartition des richesses, p. 48.
601 Bastiat was a strong opponent of conscription which was the main way the French Army got the 80,000 new men it needed each year to maintain the size of the army at 400,000 men (with 7 year enlistments). Recruiting was done by a combination of voluntary enlistment, conscription (with men selected by by drawing lots), and substitutions (where someone about to be conscripted could pay a third party to serve in his place). See the glossary on "The French Army and Conscription."
602 See the glossary entry on "Blanc" and "National Workshops."
603 An example of Fourier's efforts to elaborately plan acceptable interest rates for various transactions can be found in La fausse industrie morcelée (1835), pp. 88 ff. An example of the neologisms invented by Fourier for his social theory can be found on p. 393 where he discusses his "serial" or "stepped" method of arranging his material 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).
604 Vidal, De la répartition des richesses, p. 165.
605 Vidal, De la répartition des richesses, p. 42.
606 Vidal, De la répartition des richesses, p. 43.
607 Vidal, De la répartition des richesses, Troisième partie. "De la répartition selon les socialistes. Chap. VII "Conclusion pratique," pp. 468-91.
608 Vidal, De la répartition des richesses, pp. 473-4.
609 The National Workshops were established in late February 1848 immediately after the collapse of the July Monarchy and the declaration of a Provisional Government under Lamartine. They were set by Louis Blanc in the Luxembourg Palace."
610 A "Phalanstery" was a self-sustaining community of the followers of the utopian socialist Charles Fourier. He envisaged that new communities of people would spring up in order to escape the injustices of free-market societies and industrialism. See the glossary on "Phalanstery".
611 See Bastiat's essay "Thoughts on Sharecropping" (Feb. 1846) above, pp. 000.
612 Here Bastiat is mocking Fourier's jargon in Traité de l'association domestique-agricole (1823) where he used musical concepts such as scales and notes to describe how many different aspects of the world were rationally organised, such as the movement of the planets, the relationship between the different human races, and how these same principles could be used to organise a typical worker's every working day schedule. See, Oeuvres complètes de Ch. Fourier. Tome II.: Théorie de l'unité universelle. 2e éd. 4 tomes. (Paris: La Société pour la propagation et la réalisation de la théorie de Fourier, E. Duverger, printer, 1841-1843).
T.69 (1846.06.30) "To M. Tanneguy-Duchâtel, Minister for the Interior" (MB, June 1846)↩
SourceT.69 (1846.06.30 "To M. Tanneguy-Duchâtel, Minister for the Interior" (À M. Tanneguy-Duchâtel, ministre de l'intérieur), Mémorial bordelais, 30 June 1846. [OC7.24, pp. 114-18.] [CW6]
Text(insert HTML of file here)
T.70 (1846.07.01) "The Logic of the Moniteur industriel" (MB, July 1846)↩
SourceT.70 (1846.07.01 "The Logic of the Moniteur industriel" (La logique du Moniteur industriel), Mémorial bordelais, 1 July 1846. [OC7.25, p. 119??] [CW6]
Text(insert HTML of file here)
T.71 (1846.07.01) "To the Electors of the District of Saint-Sever"↩
SourceT.71 (1846.07.01) "To the Electors of the District of Saint-Sever" (Aux électeurs de l'arrondissement de Saint-Sever (Mugron, 1 July, 1846)). Mugron, 1 July, 1846. [OC1, p. 461.] [CW1.2.2.2, p. 352-67.]
TextEncouraged by a few of you to stand at the forthcoming elections, and wishing to ascertain the degree of collaboration on which I could rely, I have spoken to a number of electors. Alas! one finds me too progressive, another not enough; my anti-academic opinions are rejected by one, my aversion to the Algerian enterprise by another, my economic convictions by a third, my views on parliamentary reform by yet another, etc.
This proves that the best policy for a candidate is to hide his opinions, or, for even greater security, not to have any, and to confine himself to the hackneyed platform: “I’m for freedom without licentiousness, order without tyranny, peace without shame, and economizing without endangering any service.”
Since I have not the slightest intention of deceiving your trust, I shall continue sincerely to make my ideas known to you, even if this should further alienate many votes from me. I beg you to excuse me if the need to pour forth convictions that weigh upon me drives me to overstep the limits that are customarily set to political manifestos.
I have met with many conservatives, I have conversed with many members of the opposition, and I think I can positively assert that neither of those two great parties that divide parliament is satisfied with itself.
They wage battles in parliament with soft balls.14
The conservatives have the official majority; they reign, they govern. But they feel in a confused way that they are leading the country, and themselves, to ruin. They have the majority, but, in the depths of their conscience, the manifest fraud of the polls raises a protest that bothers them. They reign, but they can see that, under their reign, the budget increases year by year, that the present is deep in debt and the future already tied up, that the first emergency will find us without resources, and they are well aware that financial [353] difficulties have always been the occasion for revolutionary outbursts. They govern, but they cannot deny that they govern people through their evil passions, and that political corruption is making its way into all the arteries of the electorate. They wonder what the consequences of such a serious state of affairs will be, and what is to become of a nation where immorality has pride of place and where faith in the political system is an object of mockery and contempt. They worry on seeing the constitutional regime perverted in its very essence, to the point where the executive power and the legislative assembly have publicly exchanged their responsibilities, with the ministers surrendering to the members of parliament the job of appointing people to all posts and the members of parliament relinquishing their share of legislative power to the ministers. As a result, they see civil servants overcome with deep discouragement, when favor and electoral submissiveness alone entitle you to promotion and when the longest and most devoted services are held of no account whatsoever. Yes, the future of France troubles the conservatives; and how many among them would not go over to the opposition, if only they could find there some guarantees for that peace at home and abroad of which they are so fond?
On the other hand, as a party, can the opposition rely on the strength of the ground on which it has placed itself? What does it demand? What does it want? What is the mainspring of its action? What is its program? Nobody knows. Its natural role would be to watch over the sacred deposit of the three great conquests of civilization: peace, freedom, justice. And it breathes out nothing but war, domination, and Napoleonic ideas. It is neglecting freedom of work and of trade along with freedom of thought and of education. And, in its conquering zeal, with regard to Africa and the South Seas,15 there has never been any instance of the word justice passing its lips. It is aware that it is working for the ambitious and not for the public, that the multitude will gain nothing from the success of its scheming. We once saw an opposition party with only fifteen members supported by the enthusiastic assent of a great people. But today the opposition has not rooted itself in the sympathies of the people; it feels cut off from that source of strength and life, and, apart from the zeal with which personal designs fire its leaders, it is pale, confused, discouraged, and most of its sincere members would go over [354] to the conservative party were they not loath to associate themselves with the perverse course the latter has given to affairs of state.
A strange sight indeed! How is it that whether in the center or at either extreme in the House, decent souls feel ill at ease? Could it not be that the conquest of ministerial offices, which is the more or less acknowledged aim of the battle they are engaged in, interests only a few individuals and remains a matter of complete indifference to the masses? Could it not be that they lack a rallying principle? Maybe it would be sufficient to toss into the heart of that Assembly one simple, true, clear, fertile, practical idea to see what one seeks there in vain suddenly emerge: a party exclusively representing, in all its scope and entirety, the interests of the governed, of the taxpayers.
I see that fertile idea in the creed of certain renowned political writers whose words have unfortunately gone unheeded.16 I will try to sum it up before you.
There are things that can be done only by collective force or established authority, and others that should be left to private activity.
The fundamental problem in political science is to know what pertains to each of these two modes of action.
Public administration and private activity both have our good in view. But their services differ in that we suffer the former under compulsion and accept the latter of our own free will, whence it follows that it is reasonable to entrust the former only with what the latter is absolutely unable to carry out.
For my part, I believe that, when the powers that be have guaranteed to each and every one the free use and the product of his or her faculties, repressed any possible misuse, maintained order, secured national independence, and carried out certain tasks in the public interest which are beyond the power of the individual, then they have fulfilled just about all their duty.
Beyond this sphere, religion, education, association, work, exchanges, everything belongs to the field of private activity, under the eye of public authority, whose role should be one only of vigilance and of repression of disorder.
[355]If that great and fundamental boundary were thus established, then authority would be strong, and it would be appreciated, because it would make felt a tutelary action only.
It would be inexpensive, because it would be confined within the narrowest limits.
It would be liberal, for, on the one condition that he or she did not encroach on the freedom of others, each citizen would fully and completely enjoy the free exercise of his or her physical, mental, and moral faculties.
I might add that, once the power of perfectibility that is within society had been freed from all regulating constraint, society would then be in the best possible position to develop its riches, its education, and its morality.
But, even if there were agreement on the limits of public authority, it is no easy matter to force it and maintain it within those limits.
Government power, a vast, organized, and living body, naturally tends to grow. It feels cramped within its supervisory mission. Now, its growth is hardly possible without a succession of encroachments upon the field of individual rights. The expansion of government power means usurping some form of private activity, transgressing the boundary that I set earlier between what is and what is not its essential function. Government power departs from its mission when, for instance, it imposes a particular form of worship on our consciences, a particular method of teaching on our minds, a particular finality for our work or for our capital, or an invasive drive on our international relationships, etc.
Gentlemen, I would bring it to your attention that government becomes all the more costly as it becomes oppressive. For it can commit no encroachments otherwise than through salaried agents. Thus each of its intrusions implies creating some new administration, instituting some fresh tax, so that our freedom and our purse inevitably share a common destiny.
Consequently, if the public understands and wishes to defend its true interests, it will halt authority as soon as the latter tries to go beyond its sphere of activity; and for that purpose the public has an infallible means, which is to deny authority the resources with which it could carry out its encroachments.
Once these principles are laid down, the role of the opposition, and I would even say that of parliament as a whole, is simple and clearly defined.
It does not consist in hindering the government in its essential activity, in denying it the means of administering justice, of repressing crime, of paving roads, of repelling foreign aggression.
[356]It does not consist in discrediting or debasing the government in the public eye, in depriving it of the strength it needs.
It does not consist in making government go from hand to hand by changing ministries, and less still, by changing dynasties.17
It does not even consist in ranting childishly against the government’s tendency to intrude; for that tendency is inevitable, incurable, and would manifest itself just as much under a president as under a king, in a republic as in a monarchy.
It consists solely in keeping the government within its limits; in preserving the sphere of freedom and of private activity as completely and extensively as possible.
So if you were to ask me: “What will you do as a member of parliament?” I would reply: “Why, what you yourselves would do as taxpayers and subjects.”
I would say to those in power: “Do you lack the means to maintain order within and independence without? Well, here is money, here are men; for order and independence are to the advantage of the public and not of the government.
“But if you think you have the right to impose on us a religious cult, a philosophical theory, an educational system, a farming method, a commercial trend, a military conquest, then there will be neither money nor men for you; for in that case we would have to pay, not to be served but to be serfs, not to preserve our freedom but to lose it.”
This doctrine can be summed up in the following simple words: Let everything be done for the majority of citizens, both great and humble. In their interest, let there be good public management of what can unfortunately not be carried out otherwise. In their interest also, let there be complete and utter freedom in everything else, under the supervision of established authority.
One thing will strike you, gentlemen, as it strikes me, and it is this: for a member of parliament to be able to express himself in this way, he must be part of that public for whom the administration is designed and by whom it is paid.
[357]It must be acknowledged that it is entirely up to the public to decide how, to what extent, and at what cost it means to have things managed; otherwise representative government would be nothing but a deception and the sovereignty of the people a meaningless expression. Now, having recognized the tendency of any government to grow indefinitely, when it questions you through the polls on the subject of its own limits, if you leave it to the government itself to reply, by entrusting its own civil servants with drawing up the answer, then you might as well put your wealth and your freedom at its disposal. To expect a government to draw from within itself the strength to resist its natural expansion is to expect from a falling stone the energy to halt its fall.
If the election regulations were to stipulate: “The taxpayers will have themselves represented by civil servants,” you would find that absurd, and you would understand that there would no longer be any limit to the expansion of the powers that be, apart from riot, or to increase in the budget, apart from bankruptcy; but are the results any different when electors voluntarily make up for such a regulation?
At this point, gentlemen, I must tackle the serious question of parliamentary conflicts of interest.18 I will not say much about it, reserving the right to address myself at greater length to M. Larnac. But I cannot entirely pass over it in silence, since he has thought fit to circulate among you a letter of which I have not kept a copy, and which, not being intended for publication, only touched on that vast subject.
According to the way that letter has been interpreted, it appears that I would demand that all civil servants be banned from parliament.
I do not know whether such an absolute meaning is perceptible in my letter. In that case, my expression must have gone beyond my thought. I have never considered that the Assembly in which laws are drawn up could do without magistrates, or that it could deal constructively with maritime problems in the absence of seamen, with military problems in the absence of soldiers, or with financial problems in the absence of financiers.
What I said and what I uphold is this: as long as the law has not settled the position of civil servants in parliament, as long as their interests as civil servants are not, so to speak, effaced by their interests as taxpayers, the best we electors can do is not to appoint any; and, I must admit, I would rather [358] there were not a single one of them in the House than see them there as a majority, without cautionary measures having been taken, as the good sense of the public requires, in order to protect them and to protect us from the influence that hope and fear must exercise over their votes.
This has been construed as petty jealousy, as mistrust verging on hatred toward civil servants. It is nothing of the sort. I know many civil servants, nearly all my friends belong to that category (for who doesn’t nowadays?), as I do myself; and in my essays on economics, I maintained, contrary to the opinion of my master, M. Say,19 that their services are productive just as private services are. But it is nonetheless true that they differ in that we take of the latter only what we want, and at an agreed price, whereas the former are imposed on us as well as the payment attached to them. Or, if it is claimed that public services and their payment are voluntarily approved by us, because they are formulated by our representatives, it must be acknowledged that our approval stems only from that very formulation. It is therefore not up to civil servants to see to the formulation. It is no more up to them to decide on the extent of the service and the price to be paid than it is up to my wine supplier to decide on the amount of wine I should take and the sum I should spend on it. It is not of civil servants that I am wary, it is of the human heart; and I can respect those who make a living out of collecting taxes, while considering that they are hardly qualified to vote them, just as M. Larnac probably respects judges, while considering their duties as incompatible with those of the National Guard.
My views on parliamentary reform have also been presented as tainted with excessive radicalism. And yet I had taken care to point out that, in my opinion, reform is even more necessary for the stability of the government than for the preservation of our liberties. As I said then, the most dangerous men in the House are not the civil servants, but those who aim at becoming civil servants. The latter are driven to waging, against whatever cabinet may be in power, an incessant, troublesome, seditious war, which is of no [359] use whatsoever to the country; they make use of events, distort questions, lead public opinion astray, hinder public affairs, disturb the peace, for they have only one aim in mind: to overthrow the ministers in order to take their places. To deny the truth of this, you would have to have never set eyes on the historical records of Great Britain, you would have to deliberately reject the teachings of our constitutional history as a whole.
This brings me back to the fundamental idea underlying my address, for, as you can see, the concept of opposition may take on two very different aspects.
The opposition, such as it is now, the inevitable result of deputies being admitted to power, is reduced to the disorderly struggle of ambitions. It violently attacks individuals, but only weakly attacks corrupt practices; that is natural, since corrupt practices make up the greater part of that which it is striving to control. It does not contemplate limiting the sphere of administrative action; rather, it seeks only to eliminate a few cogs from the vast machine it longs to control. Besides, we have seen it at work. Its present leader was once prime minister; the present prime minister was once its leader. It has governed under either banner. What have we gained from it all? Throughout these developments, has the upward trend of the budget ever been suspended even for a minute?
Opposition, as I see it, is the organized vigilance of the public. It is calm and impartial, but as permanent as the reaction of a spring under the hand that holds it down. So that the balance may not be upset, must not the force of resistance of the governed be equal to the force of expansion of those that govern? This opposition has nothing against the men in office: it has only to replace them, it will even help them within the sphere of their legitimate duties, but it will mercilessly confine them within that sphere.
You might think that this natural form of opposition, which has nothing dangerous or subversive about it, which attacks the government neither in those who hold office, nor in its fundamental principle, nor in its useful action, but only in its exaggeration, is less distasteful to the ministers than seditious opposition. Don’t you believe it! It is precisely this form of opposition that they fear most of all; they hate it, they deride it in order to bring it to naught, they prevent it from emerging within their constituencies, because they can see plainly that it gets to the bottom of things and pursues evil to its very roots. The other kind of opposition, personal opposition, is less to be dreaded. Between those men who fight over ministerial portfolios, however bitter the struggle, there is always a tacit agreement, under which the vast [360] edifice of government must be left intact. “Overthrow me if you can,” says the minister, “I will overthrow you in your turn; only, let us take care that the stake remains on the table, in the shape of a budget of fifteen hundred million francs.” But if one day a member of parliament, speaking in the name of taxpayers and as a taxpayer himself, rises from his seat in the House to say to present or prospective ministers: “Gentlemen, fight among yourselves over power, all I seek to do is restrain it; wrangle over how to manipulate the budget, all I wish to do is reduce it,” ah! be sure that those raging fighters, apparently so bitterly opposed, will very soon pull together to stifle the voice of that faithful representative. They will call him a utopian, a theoretician, a dangerous reformer, a man with a fixed idea, of no practical value; they will heap scorn upon him; they will turn the venal press against him. But if taxpayers let him down, sooner or later they will find out that they have let themselves down.
I have spoken my mind, gentlemen; I have laid it before you plainly and frankly, while regretting not being able to corroborate my opinion with all the arguments that might have carried your convictions.
I hope to have said enough, however, for you to be able to appreciate the course I would follow if I were your representative, and it is hardly necessary to add that, with regard to the government and the ambitious in opposition, I would first make a point of placing myself in that position of independence which alone affords any guarantee, and which one must impose on oneself, since the law has made no provision in that respect.
Having laid down the principle which should, as I see it, govern the whole career of your parliamentary representatives, allow me to say a few words about the main subjects to which it seems to me this principle should be applied.
You may have heard that I have devoted some energy to the cause of free trade, and it is easy to see that my efforts are consistent with the fundamental idea that I have just set forth concerning the natural limits of government authority. As I see it, anyone who has created a product should have the option of exchanging it, as well as of using it himself. Exchange is therefore an integral part of the right of property. Now, we have not instituted and we do not pay government in order to deprive us of that right, but on the contrary in order to guarantee us that right in its entirety. None of the government’s encroachments has had more disastrous consequences than its encroachment on the exercise of our faculties and on our freedom to dispose of their products.
[361]First of all, this would-be protective regime, when closely examined, is based on the most flagrant plunder. Two years ago, when measures were taken to restrain the entry of oil-producing seeds, it was indeed possible to increase the profits on certain crops, since the price of oil immediately went up by a few pence a pound. But it is perfectly obvious that those excess profits were not a gain for the nation as a whole, since they were taken gratuitously and artfully from the pockets of other citizens, of all those who grow neither rapeseed nor olive trees. Thus, there was no creation, but simply an unjust transfer, of riches. To say that in so doing you supported one branch of agriculture is saying nothing at all as regards general welfare, because you gave it only the sap that you took from other branches. And what crazy industry might not be made lucrative at such a cost? Suppose a shoemaker takes it into his head to cut shoes out of boots, however unsound an operation; just give him a preferential license, and it will become an excellent one. If growing rapeseed is in itself a sound activity, there is no need to give any supplementary profit to those who practice it. If it is unsound, the extra income does not make it sound. It simply shifts the loss onto the public.
Plunder, as a rule, transfers wealth but does not destroy it. Protectionism transfers wealth and furthermore destroys it, and this is how: as oil-producing seeds from the north no longer enter France, there is no longer any way of producing here the wherewithal to pay for it, for example, a certain quantity of wine. Now, if, regarding oil, the profits of the producers and the losses of the consumers balance, the sufferings of the vine growers are an unjustified and unalleviated evil.
Many of you no doubt are not quite clear in your minds as to the effects of a protectionist regime. Allow me to make a remark.
Let us suppose that this regime were not forced on us by law, but directly by the will of the monopolists. Let us suppose that the law left us entirely free to purchase iron from the Belgians or the Swedes, but that the ironmasters had servants enough to prevent the iron from passing our frontiers and to force us thereby to purchase from them and at their price. Would we not complain loudly of oppression and injustice? The injustice would indeed be more obvious; but as for the economic effects, it cannot be said that they would be any different. After all, are we any the fatter because those gentlemen have been clever enough to have carried out by customs officers, and at our expense, that policing of the frontier that we would not tolerate were it carried out at their own expense?
The protectionist system bears witness to the following truth: a government [362] that goes beyond its normal assignments draws from its transgressions power only that is dangerous, even for itself. When the state becomes the distributor and regulator of profits, all sectors of industry tug at it this way and that in order to tear from it a shred of monopoly. Have you ever seen free home trade put a cabinet in the predicament in which regulated foreign trade put Sir Robert Peel? And if we consider our own country, is it not a strong government indeed that we see trembling before M. Darblay? So, as you can see, by restraining the government you consolidate rather than endanger it.
Free trade, freedom of communication between peoples, putting the varied products of the world within everyone’s reach, enabling ideas to penetrate along with the products into those regions still darkened by ignorance, the state freed from the contrary claims of the workers, peace between nations founded on intertwining interests—all this is undoubtedly a great and noble cause. I am happy to believe that this cause, which is eminently Christian and social, is at the same time that of our unhappy region, at present languishing and perishing under the pressure of commercial restrictions.
Education is also bound up with the same fundamental question that precedes all others in politics: Is it part of the state’s duties? Or does it belong to the sphere of private activity? You can guess what my answer will be. The government is not set up in order to bring our minds into subjection or to absorb the rights of the family. To be sure, gentlemen, if it pleases you to hand over to it your noblest prerogatives, if you want to have theories, systems, methods, principles, textbooks, and teachers forced on you by the government, that is up to you; but do not expect me to sign, in your name, such a shameful abdication of your rights. Besides, you must not shut your eyes to the consequences. Leibnitz used to say: “I have always thought that whoever was master of education, would be master of mankind.” Maybe that is why the head of our state education is known as Grand Master. The monopoly of teaching cannot reasonably be entrusted to any but an authority recognized as infallible. Otherwise, there is an unlimited risk that error be uniformly taught to the people as a whole. “We have made a republic,” Robespierre would say; “it now remains for us to make republicans of everyone.” Bonaparte wanted to make soldiers of everyone, Frayssinous wanted only religious devotees, M. Cousin would turn people into philosophers, Fourier would have only “harmonians,” and I suppose I would want economists. Unity is a wonderful thing, but only on condition that you are in the right, which again amounts to saying that academic monopoly is compatible only [363] with infallibility. So let us leave education free. It will perfect itself through trial and error, example, rivalry, imitation, and emulation. Unity is not at the starting point of the efforts made by the human mind; it is the result of the natural gravitation of free intellects toward the center of all attraction: truth.
That does not mean to say that the powers that be should withdraw in complete indifference. As I have already said, their mission is to supervise the use and repress the misuse of all our faculties. I accept that they should accomplish this mission to the fullest extent, and with even greater vigilance regarding education than in any other field; that the state should lay down conditions concerning qualifications and character references; that it should repress immoral teaching; that it should watch over the health of the pupils. I accept all that, while yet remaining convinced that its solicitude, however scrupulous, can offer only the very slightest guarantee compared with that instilled by nature in the hearts of fathers and in the interest of teachers.
I must make myself clear on one vast subject, more especially as my views probably differ from those of many of you: I am referring to Algeria. I have no hesitation in saying that, unless it be in order to secure independent frontiers, you will never find me, in this case or in any other, on the conqueror’s side.20
To me it is a proven fact, and I venture to say a scientifically proven fact, that the colonial system is the most disastrous illusion ever to have led nations astray. I make no exception for the English, in spite of the specious nature of the well-known argument post hoc, ergo propter hoc.21
Do you know how much Algeria is costing you? From one-third to two-fifths of your four direct taxes, including the extra cents. Whoever among you pays three hundred francs in taxes sends one hundred francs annually to evaporate into the clouds over the Atlas mountains or to sink into the sands of the Sahara.
We are told that the money is an advance and that, a few centuries from now, we shall recover it a hundredfold. But who says so? The very quartermaster [364] general’s department that swindles us out of our money. Listen here, gentlemen, when it comes to cash, there is but one useful piece of advice: let each man watch his purse . . . and those to whom he entrusts the purse strings.
We are further told: “The money spent helps to support many people.” Yes, indeed, Kabyle spies, Moorish moneylenders, Maltese settlers, and Arab sheikhs. If it were used to cut the “Grandes-Landes” canal,22 to excavate the bed of the Adour River and the port of Bayonne, it would help to support many people around us, too, and moreover it would provide the country with an enormous capacity for production.
I have spoken of money; I should first have spoken about men. Every year, ten thousand of our young fellow citizens, the pick of our population, go to their deaths on those consuming shores, and to no useful purpose so far, other than to extend, at our expense, the field of the administrative services, who are naturally all in favor of it. In answer to that, there is the alleged advantage of ridding the country of its surplus. A horrible pretext, which goes against all human feeling and which hasn’t even the merit of being materially true, for, even supposing the population to be overabundant, to take from it, with each man, two or three times the capital which could have supported him here, is far from being any relief to those who remain behind.
But I must be fair. In spite of its liking for anything that increases the size of its administration, it seems that at the outset the government shrank from that abyss of bloodshed, injustice, and distress. The nation chose to go ahead; it will long suffer the consequences.
What carried the country away, besides the mirage of a great empire, of a new civilization, etc., was a strong reaction of national feeling against the offensive claims of the British oligarchy. England’s veiled opposition to our designs was enough to persuade us to go ahead with them. I appreciate that feeling, and I would rather see it go astray than die out. But, on the other hand, is there not a danger that it should place us under the very domination that we hate? Give me two men, the one submissive and the other contrary, and I will lead them both on a leash. If I want them to walk, I will say to [365] one: “Walk!” and to the other: “Don’t walk!” and both of them will do as I wish. If our sense of dignity were to take that form, then all perfidious Albion would have to do, in order to make us do the most stupid things, would be to appear to oppose them. Just suppose, and it is certainly very allowable to do so, that England sees in Algeria the ball and chain that tie us down, the abyss which could swallow up our power; then would that country have only to frown, take on a haughty and angry air, in order to make us pursue a dangerous and insane policy? Let us avoid that pitfall; let us judge by ourselves and for ourselves; let no one lay down the law to us either directly or in a roundabout way. The problem of Algiers is unfortunately not isolated. We are bound by precedents; the past has committed the future, and there are precedents that must be taken into account. Let us, however, remain master of decisions to come; let us weigh the advantages and drawbacks; and let us not disdain to add a measure of justice to the balance, albeit toward the Kabyles. If we do not begrudge the money, if glory is not to be haggled over, let us at least attach some importance to the grief of families, the sufferings of our fellow countrymen, the fate of those who fall, and the disastrous habits of those who survive.
There is another subject that deserves all the attention of your representative. I am referring to indirect taxation. In this case the distinction between what is and what is not within the competence of the state does not apply. It is obviously up to the state to collect taxes. However, it may be said that it is the inordinate expansion of its power that makes the state have recourse to the most hateful tax inventions. When a nation, the victim of its own excessive timidity, dares do nothing by itself and is forever begging for state intervention, then it must resign itself to being mercilessly ransomed; for the state can do nothing without finance, and when it has drained the ordinary sources of revenue dry, it has no alternative but to turn to the strangest and most oppressive forms of extortion. Thus we have indirect taxation on alcohol. The suppression of these taxes therefore depends on the answer to the eternal question that I never tire of asking: Does the French nation want to be forever in tutelage and to call on its government to intervene in every matter? In that case, it should no longer complain about being overburdened and can even expect to see things get worse.
But, even supposing that the tax on alcohol could not be abolished (which I am far from conceding), it seems clear to me that it could be largely modified, and that it would be easy to cut out its most distasteful elements. All [366] that would be necessary would be to induce the owners of vineyards to give up certain exaggerated ideas on the extent of their right of property and the inviolability of their domicile.23
Allow me, gentlemen, to end with a few personal observations. You must excuse me for doing so. For I, personally, have no active and devoted canvasser at a salary of three thousand francs plus four thousand francs in office expenses to busy himself with promoting my candidacy from one side of the constituency to the other, and from one end of the year to the other.
Some people say: “M. Bastiat is a revolutionary.” Others: “M. Bastiat has thrown in his lot with the government.”
What precedes answers that dual assertion.
There are those who say: “M. Bastiat may be a very decent fellow, but his opinions have changed.”
As for me, when I consider how I have persisted in defending a principle that is making no progress in France, I sometimes wonder if I am not a maniac possessed with a fixed idea.
To enable you to judge whether I have changed, let me set before you an extract from the declaration of policy that I published in 1832, when a kind word from General Lamarque attracted the attention of a few voters in my favor.
“In my view, the institutions that we have already obtained and those that we can obtain by lawful means are sufficient, if we make enlightened use of them, to raise our country to a high degree of freedom, greatness, and prosperity.
“The right to vote taxes, in giving citizens the power to extend or restrain the action of the government as they please, isn’t that management by the public of public affairs? What might we not achieve by making judicious use of that right?
“Do we consider that ambition for office is the source of many contentions, intrigues, and factions? It rests with us alone to deprive that fatal passion of its sustenance, by reducing the profits and the number of salaried public offices.”
. . . . . . .
[367]“Do we feel that industry is shackled, the administration overcentralized, education hampered by academic monopoly? There is nothing to prevent us from holding back the money that facilitates those shackles, that centralization, those monopolies.
“As you can see, gentlemen, I shall never expect the welfare of my country to result from any violent change in either the forms or the holders of power; but rather from our good faith in supporting the government in the useful exercise of its essential powers and from our firm determination to restrict it to those limits. The government has to be firm facing enemies from within and from without, for its mission is to keep the peace at home and abroad. But it must leave to private activity everything that is within the latter’s competence. Order and freedom depend on those conditions.”
Are those not the same principles, the same feelings, the same fundamental way of thinking, the same solutions for particular problems, the same means of reform? People may not share my opinions; but it cannot be said that they have varied, and I venture to add: they are invariable. It is too coherent a system to admit of any alterations. It will collapse or it will triumph as a whole.
My dear fellow countrymen, please forgive the length and the unusual form of this letter. If you grant me your votes, I shall be deeply honored. If you grant them to another, I shall serve my country in some less eminent sphere, better suited to my abilities.
The black and white balls the deputies would drop into an urn for voting.
Bastiat has in mind Algeria and Tahiti.
Bastiat is probably alluding to the works of Adam Smith, Jean-Baptiste Say, Charles Comte, and Charles Dunoyer, whose writings on economics and social theory had a profound impact on his thought, especially Comte and Dunoyer’s theory of industrialism.
Bastiat is referring to the opposition of many members of parliament to the government of the prince de Polignac, prime minister in 1829 (under Charles X). This opposition led to the fall of the Bourbon dynasty and to the accession of the Orléans dynasty with Louis-Philippe, which ruled from 1830 to 1848.
Here Bastiat is referring to the problem of the conflict of interest that occurs when a civil servant continues to work for the government and sits in parliament as well.
Jean-Baptiste Say took the more radical position that all coercive government activities were “unproductive.” Only voluntary exchanges could be called truly “productive.” According to Say, all government activities were “ulcerous” and thus harmful to the free market and civil society. This view was taken up and further developed by Charles Comte (who married Say’s daughter) and Charles Dunoyer, two theorists who considerably influenced Bastiat’s intellectual development. However, on this issue, the magistrate Bastiat broke with his teachers. Gustave de Molinari (1819-1912) continued the Say-Comte-Dunoyer tradition, thus placing Bastiat in the middle ground on this matter.
The French invaded Algeria in 1830, and their rule lasted until Algeria achieved independence in 1962, after eight years of civil and guerrilla war. Bastiat, like Cobden with regard to British colonialism, opposed the French conquest and colonization of Algeria. However, the conservative liberal Alexis de Tocqueville was a convinced defender of France’s mission civilatrice in Algeria.
“After that, therefore because of that.”
The idea of a canal linking the Garonne and Adour rivers dated back to 1808 and was designed to serve and bring fresh life to the vast forest region of the Landes. Bastiat was in favor of the project. The final layout was drawn up in 1832, but the project was never carried out owing to dissension within the département of the Landes.
Bastiat, always a staunch defender of property rights, was attempting to convince the wine growers to accept a politically achievable compromise to reduce the number and complexity of taxes while maintaining some government controls.
T.72 (1846.07.03) "Letter to Roger Dampierre"↩
SourceT.72 (1846.07.03) "Letter to Roger Dampierre" (Lettre à M. Dampierre). [OC7.72, pp. 300-3.] [CW1.2.3.5, p. 412-14.]
TextLike you, I regret not having been at home when you did me the honor of coming to see me and I regret it all the more since I received your kind letter dated 30th June. I cannot thank you enough for all the nice things you say; my only fear is that the efforts I have been able to devote to what I considered to be the good of the country have been highly exaggerated. I will limit myself to answering what you say with regard to the forthcoming elections and I will do so with the frankness I owe to the sincere tone with which your letter is imbued.
I have decided to issue my declaration of principles as soon as the Chamber is dissolved and abandon the rest to the electors whom this concerns. I have to say to you that, as I do not solicit their votes for myself, I cannot commit them to the alliance of which you speak. As for my personal conduct, I hope that you will find the reason for it in the brochure I am sending you with this letter.7 Allow me to add a few explanations here. An alliance between your opinion and mine is a serious thing that I cannot agree to or reject without setting out for you, perhaps somewhat at length, the reasons that govern my decision.
You are a legitimist, sir, you say so frankly in your declaration of principles; and consequently I am more distant from you than from true conservatives.
Thus, if we had at the forthcoming elections a conservative candidate in opinion but who is independent by position, such as MM Basquiat, Poydenot,8 etc., etc., I could not entertain for a moment the thought that, should my party fail, I would join yours. The prospect of determining a ministerial crisis would not cause me to decide and I would prefer to see an opinion with which I differ only subtly triumph, than that from which I differ because of my principles.
I must admit to you, furthermore, that these alliances of extreme parties appear to me to be trickery artificially arranged by ambitious people for their own benefit. I situate myself exclusively at the standpoint of the taxpayer, the person being administered, and the general public and I wonder what they [413] have to gain from alliances whose sole aim is to pass power from one hand to another. Allowing the success of an alliance between the two schools of opinion, to what can it lead? Obviously, they agree only for a moment by glossing over the points on which they differ and abandoning themselves to the only desire common to them: to overthrow the cabinet. But what happens next? When M. Thiers or anyone else is at the helm, what will he do with a minority of the left which will have been a majority only for a moment with the help of the legitimists, help which will henceforward be refused to them? I can see from here a new alliance forming between the right and M. Guizot. At the end of all this, I can see confusion, ministerial crises, administrative trouble, and satisfied ambition, but I do not see any benefit for the public.
For this reason, sir, I do not hesitate to say to you that I could not under any circumstances join you if it was genuinely a conservative opinion that would be presented at the forthcoming elections.
But this is not so. I see in a secretary under orders the representative not of a political opinion but of an individual thought and of this very thought to which electoral law should serve as a barrier. A candidature like this would remove us from a representative regime; it is more than a deviation from it, it casts derision on it, and it seems that by putting it forward, the government has resolved to see just how far the simplemindedness of the electoral body9 will go. Without having any personal objection to M. Larnac, I have such a serious one against his position that I will not vote for him, whatever happens, and, what is more, if necessary, I will vote for his opponent, even if he is a legitimist.
Whatever the secret thought of the partisans of the senior branch of royalty may be, I fear it less than the intentions of the present government as witnessed in the support it gives to such a candidature. I hate revolutions, but they take a variety of forms and I consider as a revolution of the worst kind this systematic invasion of national representation by the agents of government and, what is worse, of irresponsible government. If therefore I am faced with the cruel alternative of choosing between a secretary under orders and a legitimist, my mind is made up: I would choose the legitimist. If the ulterior [414] motives attributed to this party are in any way the case, I deplore this, but I do not fear it, for I am convinced that the principle of national sovereignty has enough life in France to triumph once more over its adversaries. But with a Chamber peopled with the creatures of government, the country, its wealth and liberty, are defenseless and there is in this a germ of revolution that is more dangerous than that which your party can contemplate.
To sum up, sir, as a candidate I will limit myself to issuing a declaration of principles and attending public meetings if I am invited to them. As an elector, I will first vote for a man of the left; failing that, for an independent conservative; and failing that again, for a frank and loyal legitimist, such as you, rather than for a secretary under the orders of the duc de Nemours.
See “To the Electors of the District of Saint-Sever,” p. 352.
Local personalities.
(Paillottet’s note) It is easy to infer from this passage and several others that Bastiat made two judgments on what is known today as official candidatures. 1. He would have seen in it scorn for the representative regime. 2. This scorn would have appeared to him more sad than new.
T.73 1846.08.19) "A Toast offered at the banquet in Honor of Richard Cobden by the Free Traders of Paris" (CF, Aug. 1846)↩
SourceT.73 (1846.08.19) "A Toast offered at the banquet in Honor of Richard Cobden by the Free Traders of Paris" (Toast porté au banquet offert à Cobden par les libre-échangistes de Paris), Le Courrier français, 19 Aug. 1846. [OC7.26, pp. 122-24.] [CW6]
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T.74 (1846.08.22) "To the Editors of La Presse (1) (CF, Aug. 1846)↩
SourceT.74 (1846.08.22 "To the Editors of La Presse (1)" (Aux rédacteurs de la Presse (1)), Le Courrier français, 22 Aug. 1846. [OC7.32, pp. 143-47.] [CW6]
Text(insert HTML of file here)
T.75 (1846.08.24) "The Corn Laws and Workers' Wages" (CF, Aug. 1846)↩
SourceT.75 (1846.08.24) "The Corn Laws and Workers' Wages" (La loi des céréales et le salaire des ouvriers), Le Courrier français, 24 Aug. 1846. [OC7.27, pp. 125-28.] [CW6]
Text(insert HTML of file here)
T.76 (1846.08.29) "Letter to the Moniteur industriel" (CF, Aug. 1846)↩
SourceT.76 (1846.08.29 "Letter to the Moniteur industriel" (Lettre au Moniteur Industriel), Le Courrier français, 29 Aug. 1846. [OC7.28, pp. 128-30.] [CW6]
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T.77 (1846.09.02) "To the Editors of La Presse (2) (CF, Sept. 1846)↩
SourceT.77 (1846.09.02 "To the Editors of La Presse (2)" (Aux rédacteurs de la Presse), Le Courrier français, 2 Sept. 1846. [OC7.33, pp. 148-52.] [CW6]
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T.78 (1846.09.18) "To Artisans and Workers" (CF, Sept. 1846)↩
SourceT.78 (1846.09.18) "To Artisans and Workers" (Aux artisans et aux ouvriers), Le Courrier français, 18 Sept. 1846; also ES2.6. [OC4, pp. 173-82.] [CW3 - ES2.6]
VI. To Artisans and Workers264 [18 September 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "Aux artisans et aux ouvriers" (To Artisans and Workers) [Le Courrier français, 18 September 1846].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 173-82.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
Several journals have tried to lower my standing in your eyes. Would you like to read my defense?
I am a trusting soul. When a man writes or says something, I believe that his words reflect his thoughts.
Even so, however much I read and reread the journals to which I am replying I seem to find in them some sorry tendencies.
What was it all about? To find out what you prefer, trade restriction or freedom.
I believe it is freedom. They believe it is trade restriction. Let each prove his case.
Is it necessary to insinuate that we are the agents of England, of the Midi265 or of the Government?
Note how easy, if these are the grounds of debate, recrimination would be for us.
We are, they say, the agents of the English, because some of us have used the words meeting and free trader!
But do they not themselves use the words drawback and budget?266
We imitate Cobden267 and English democracy!
But don't they parody Bentinck268 and the British aristocracy?
We borrow the doctrine of freedom from perfidious Albion!269
And they, do they not borrow from her the quibbles of protection?
We follow the impulses of Bordeaux and the Midi!
And they, do they not serve the greed of Lille and the North?
We favor the secret designs of the government, which wants to distract attention from its policy!
And they, do they not favor the views of the Civil List270 which gains more than anyone in the world from protectionism?
You can thus see clearly that, if we did not scorn this campaign to denigrate others, we would not lack the weapons to engage in it.
But that is not the question.
The question, and I will not lose sight of it, is this:
What is better for the working classes, to be free or not to be free to purchase from abroad?
Workers, you are being told: "If you are free to purchase things from abroad that you are now making yourselves, you will no longer be making them. You will have no work, no pay and no bread. Your freedom is therefore being restricted for your own good."
This objection comes under multiple forms. For example, it is said: "If we dress in English cloth, if we make our ploughs with English iron, if we slice our bread with English knives, if we wipe our hands on English napkins, what will become of French workers and national production?"
Workers, tell me, if a man stood in the port of Boulogne and said to each Englishman who came ashore: "If you will give me these English boots, I will give you this French hat?" Or "If you will let me have this English horse, I will give you this French Tilbury271?" Or "Will you trade this machine from Birmingham for this clock from Paris?" Or again "Does it suit you to trade this coal from Newcastle for this Champagne?" I ask you, assuming that our man exerted some judgment in his proposals, can we say that our national output, taken overall, would be affected?
Would it be more affected if there were twenty people offering services like this in Boulogne instead of one, if one million trades were being made instead of four and if traders and cash were brought in to facilitate them and increase their number infinitely?
Well, whether one country buys wholesale from another in order to sell retail or retail to sell wholesale, if the affair is followed right to its end, it will always be found that commerce is just a series of barter exchanges, products for products and services for services. Therefore, if one barter exchange does not damage national production since it implies an equal amount of national work given for the foreign work received, one hundred thousand million exchanges would not damage it to any greater extent.
But, you will say, where is the profit? The profit lies in making the best use of the resources of each country so that the same amount of work provides more satisfaction and well-being everywhere.
Some people use a strange tactic with you. They begin by agreeing that the free system is better than the prohibitive system, doubtless so as not to have to defend themselves on this subject.
Then they observe that in the transition from one system to the other there will be some displacement of labor.
Next, they will dwell on the suffering that this displacement will bring in its wake, according to them. They exaggerate it and magnify it and make it the prime subject in the matter; they present this suffering as the sole and final result of the reform and strive thus to win you over to the flag of monopoly.
Moreover, this is a tactic that has been used for all sorts of abuse, and one thing that I must acknowledge quite straightforwardly is that it always embarrasses those in favor of reform, even those reforms most useful to the people. You will soon understand why.
When an abuse exists, everything is organized around it.
Some people's lives depend on it, others depend on these lives and still others depend on these latter ones, making a huge edifice.
If you try to lay a hand on it, everyone cries out and, note this well, those who shout loudest always appear at first sight to be right, as it is easier to show the disadvantages that accompany reform than the advantages that follow it.
Those in favor of the abuse quote specific facts; they name individuals and their suppliers and workers who will be upset, while the poor devil of a reformer can refer only to the general good which is due to spread gradually through the masses. This is far from having the same effect.
So, does the question of abolishing slavery arise? "You unfortunate people," the black people are told, "who will feed you in the future? The foreman distributes lashes with his whip but he also distributes manioc."
And the slaves miss their chains and ask themselves, "Where will I obtain manioc?"
They do not see that it is not the foreman who feeds them but their own work, which also feeds the foreman.
When the monasteries were reformed in Spain,272 the mendicants were told: "Where will you find soup and robes? The Prior is your Providence. Is it not very convenient to call upon him?"
And the mendicants said, "It is true. If the Prior goes away, we clearly see what we will be losing but not what will take his place."
They were not mindful that although monasteries distributed alms they also lived on alms, to the extent that the people had to donate more than they received.
Workers, in just the same way, monopoly places imperceptible taxes on all of your shoulders and then, with the product of these taxes, it gives you work.
And your false friends tell you, "If there were no monopoly, who would give you work?"
To which you answer, "That is true, very true. The work provided to us by the monopolists is certain. The promises of freedom are uncertain."
For you do not see that money is being squeezed out of you in the first instance and that subsequently you are being given back part of this money in return for your work.
You ask who will give you work? You will give each other work, for heaven's sake! With the money that will no longer be taken from you, the shoemaker will dress better and will give work to the tailor. The tailor will replace his shoes more often and give work to the shoemaker. And so on for all of the trades.
It is said that with freedom there will be fewer workers in the mines and spinning mills.
I do not think so. But if that happened, of necessity there would be more people working freely at home or out in the sun.
For if the mines and spinning mills are supported only, as people say, with the help of the taxes imposed for their benefit on everyone, once these taxes are abolished, everyone will be better off and it is the prosperity of all that provides work for each person.
Forgive me if I linger awhile on this argument. I would so much like to see you on the side of freedom!
In France, the capital invested in industry produces, I suppose, 5 percent profit. But here is Mondor273 who has invested 100,000 fr. in a factory, which is losing 5 percent. The difference between loss and gain is 10,000 fr. What do people do? They spread among you very subtly a small tax of 10,000 fr., which they give to Mondor. You do not notice it because it is skillfully disguised. It is not the tax collector who comes to ask you for your share of the tax, but you pay it to Mondor, the ironmaster, each time you buy your axes, trowels and planes. You are then told: "If you do not pay this tax, Mondor will not provide any work and his workers, Jean and Jacques will be unemployed". Heavens above! If you were given back the tax, would you not put yourselves to work and even start your own buisnesses?
"And then, be reassured. When he no longer has this nice cushion of a higher price through taxes, Mondor will think up ways of converting his loss into profit and Jean and Jacques will not be dismissed. Then there will be a profit for all".
Perhaps you will dwell on this and say: "We understand that after the reform there will generally be more work than before, but in the meantime, Jean and Jacques will be on the street."
To which I reply:
1. When work only shifts in order to increase, anyone who is ready and willing to work does not remain on the street for very long;
2. Nothing prevents the State from having a small reserve fund to cover any unemployment during the transition, although, for my part, I do not think it will happen;
3. Lastly, if in order to get out of the rut and achieve conditions that are better for everyone and above all more just, it is absolutely essential to face up to a few difficult moments and workers are ready for this, or I am mistaken in them. Please God, may entrepreneurs be able to do the same!
What then! Just because you are workers, are you not intelligent or morally upright? It seems that your alleged friends are forgetting this. Is it not surprising that they discuss a question like this in front of you, talking about wages and interests without once mentioning the word justice? They know, however, that protection is unjust. Why then do they lack the courage to warn you of this and say: "Workers, an iniquity is widespread in the country, but it benefits you and must be given support." Why? Because they know that your answer will be "No".
But it is not true that this iniquity benefits you. Let me have a few moments more of your attention, and see for yourselves.
What are we protecting in France? Things that are made by major entrepreneurs in huge factories; iron, coal, woolen cloth and fabric, and you are being told that this is not in the interest of the entrepreneurs but in yours, and in order to ensure that you have work.
However, each time that products made with foreign labor come into our market in a form that can cause you damage but which is useful to the major entrepreneurs, are they not allowed to enter?
Are there not thirty thousand Germans in Paris making suits and shoes?274 Why are they allowed to set up shop next to you, when cloth is being rejected? Because cloth is made in huge factories that belong to manufacturers who are also lawmakers. But suits are made at home by outworkers. These people do not want any competition for their changing wool into cloth because it is their trade, but they are all too willing to accept competition for the converting of cloth into suits because it is yours.
When the railways were built, English rails were rejected but English workers were brought in. Why? It is very simple; because English rails compete with the major factories and English labor competes only with yours.
We for our part do not ask for the expulsion of German tailors and English diggers. What we ask for is that cloth and rails be allowed to come in. We ask for justice for all and equality for all before the law!
It is laughable that they tell us that Customs restrictions have your benefit in mind. Tailors, shoemakers, carpenters, joiners, masons, blacksmiths, merchants, grocers, watchmakers, butchers, bakers, upholsterers and milliners, I challenge you to quote me one single instance where restriction benefits you, and whenever you want I will quote you four which cause you harm.
And, at the end of the day, see how credible is this self-sacrifice that your journals attribute to monopolists.
I believe that we can call the natural level of wages the one which is naturally established under the regime of freedom. When, therefore, you are told that trade restriction benefits you, it is as though you were being told that it adds a supplement to your natural wages. Well, an extra-natural supplement to wages has to come from somewhere; it does not fall from the moon, and it has to be taken from those who pay it.
You are thus led to the conclusion that, according to your alleged friends, protectionism was created and brought into the world so that capitalists could be sacrificed to the workers.
Tell me, is this likely?
Where then is your seat in the Chamber of Peers? When did you take your seat in the Palais Bourbon?275 Who has consulted you? Where did you get the idea of setting up protectionism?
I hear you reply: "It is not we who established it. Alas! We are neither peers, deputies nor Councilors of State. The capitalists were the ones who set it up".
God in Heaven! They were very well disposed that day! What! The capitalists drew up the law and established the prohibitionist regime just so that you, the workers, might gain profit at their expense?
But here is something that is stranger still.
How is it that your alleged friends, who now talk to you about the goodness, generosity and self-denial of the capitalists, constantly plead with you not to take advantage of your political rights? From their point of view, what use could you make of them? The capitalists have the monopoly of legislation,276 that is true. Thanks to this monopoly, it is also true that they have allocated to themselves the monopoly of iron, cloth, canvas, coal, wood and meat. But now your alleged friends claim that by acting in this way, the capitalists have robbed themselves without being obliged to do so in order to enrich you without your having any right to this! Certainly, if you were electors and deputies you could not do a better job; you would not even do as well.
If the industrial organization that governs us is established in your interest, it is therefore deceitful to claim political rights for you, for these democrats of a new type will never extricate themselves from this dilemma: the law, drawn up by the bourgeoisie, gives you more or gives you less than your natural earnings. If it gives you less, they deceive you by asking you to support it. If it gives you more, they are still deceiving you by encouraging you to claim political rights, while the bourgeoisie are making sacrifices for you which you, in your honesty, would never dare to vote for.
Workers, please God that this article will not have the effect of sowing in your hearts the seeds of resentment against the wealthy classes! If interests that are badly understood or sincerely alarmed still support monopoly, let us not forget that it is rooted in the errors that are common to both capitalists and workers. Far from whipping them up against one another, let us work to bring them together. And what do we need to do to achieve this? If it is true that natural social tendencies contribute to abolishing inequality between men, all that is needed is to leave these tendencies to act, to remove the artificial obstructions that delay their effect and leave the relationships between the various classes to establish themselves on the principle of JUSTICE which, in my mind at least, is combined with the principle of FREEDOM.277
Endnotes264 (Paillottet's note) This chapter is taken from the issue of Le Courrier français dated 18th September 1846, whose columns were opened to the author to repel the attacks from L'Atelier. It was only two months later that the journal, Le Libre-Echange appeared. . [L'Atelier, was a respected monthly, written exclusively by workers, published from December 1840 to July 1850. In September 1846 it had been very critical of Cobden, the League, and the Free Trade Association founded by Bastiat in Bordeaux. See the glossary entry on "L'Atelier."]
265 Le Midi is the name given to the south of France. Like the U.S. at this time, France was divided into an agricultural, trade dependent south (which was sympathetic to free trade) and an industrial north which was inclined to protectionism. Advocates of free trade like Bastiat were often accused of being agents of "Perfidious Albion" which was pursuing a free trade policy after the repeal of the Corn Laws in 1846. See the glossary entry "Perfidious Albion."
266 The words "meeting," "free-trader," "drawback," and "budget" were all in English in the original text.
267 Richard Cobden (1804-65) was a successful textile manufacturer, Member of Parliament, and leader of the free trade Anti-Corn Law League. Cobden and Bastiat struck up a very friendly correspondence on the ideas and strategy of the free trade and peace movements in Britain and France which is reproduced in the Collected Works, vol. 1. See the glossary entry on "Cobden."
268 Lord George Bentinck (1802-1848) was a conservative Member of Parliament who with Benjamin Disraeli led the opposition in the House of Commons against Richard Cobden's and Sir Robert Peel's attempts to repeal the Corn Laws in 1846. See the glossary entry on "Bentinck."
269 "Perfidious Albion" (or faithless or deceitful England) was the disparaging name given to Britain by its French opponents. It probably dates from the 1790s, when the British monarchy subsidized the other monarchies of Europe in their struggle against the French Republic during the revolution. Bastiat makes fun of this name in a later Sophism by talking about "Perfidious Normandy." See the glossary entry on "Perfidious Albion." See ES2, XIII "Protection, or the Three Municipal Magistrates," below, pp. ???.
270 The Civil List was an annual grant made by the State to the monarch for the maintenance and upkeep of his estates and property. In 1791 Louis XVI received fr. 25 million; in the Restoration Louis XVIII received fr. 34 million and Charles X fr. 32 million. Louis Philippe, the new July Monarch after the 1830 Revolution, was granted fr. 12 million per year for himself and fr. 1 million for the Prince, by the law of 2 March 1832. According to the budget of 1848 (the last before the February Revolution of 1848 overthrew the monarchy) fr. 13.3 million was set aside for the Civil List. See Annuaire de l'économie politique, (1848), p. 29. See the Appendix on "French Government Finances in 1848-49."
271 A tilbury is a open, two-wheeled carriage which was designed and built by the London coach builders Tilbury in the early 19th century.
272 The dissolution of monasteries in Spain had a complex history in the 19th century. The Constitution of 1812 suppressed religious organizations and confiscated their property. The restored King Ferdinand re-established them in 1814, but the Cortes in 1820 suppressed them once again with the exception of a handful which continued to provide shelter to the sick and old. The French restored Ferdinand III to the crown in 1823 who promptly overturned the Cortes' law. In 1835 and 1836 there was yet another dissolution of the monasteries and their property was confiscated or sold off. This was similar to the treatment of religious institutions during the early years of the French Revolution.
273 Mondor is one of the many names Bastiat uses in his constructed dialogues, See the glossary entry "Mondor."
274 As Bastiat notes, there were many Germans living and working in Paris to take advantage of the economic size of the market (Paris with about 1 million inhabitants was one of the largest cities in Europe at the time) and the relatively greater freedoms (such as freedom of speech) compared to many German cities which cracked down on the radical press. Ironically, just before Bastiat moved to Paris the socialist Karl Marx moved there from Cologne to start a new radical newspaper. He lived in Paris between 1843 and 1845 where he met Friedrich Engels.
275 The Palais Bourbon 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. See "The Chamber of Deputies and Elections" in Appendix 2 "The French State and Politics."
276 After 1839 there were 460 members of the Chamber of Deputies who were elected for a term of 5 years. Suffrage was limited to those who paid an annual tax of fr. 200 and were over the age of 25; and only those who paid fr. 500 in tax and were over the age of 30 could stand for election. The taxes which determined eligibility were direct taxes on land, poll taxes, and the taxes on residence, doors, windows, and businesses. By the end of the Restoration (1830) only 89,000 tax payers were eligible to vote. Under the July Monarchy this number rose to 166,000 and by 1846 this had risen again to 241,000. In the late 1840s France had a population of about 36 million people. 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). See the glossary entry on "The Chamber of Deputies."
277 (Paillottet's note) See the sharp polemic against various journals in volume 2. [DMH - Vol. 2 Le Libre-Échange of the OC contained articles from the weekly journal which Bastiat edited for the Free Trade Association. Many of them were polemics he engaged in against pro-protectionist journals such as Le Moniteur industriel, le Journal des Débats, Le Constitutionnel, La Presse, Le Commerce, L'Esprit public, le National. The more free trade press included journals such as le Courrier français, le Siècle, la Patrie, l'Époque, la Réforme, la Démocratie pacifique, l'Atelier (see p. 92 for Bastiat's list). See "French Newspapers" in Appendix 2 "The French State ad Politics."
T.79 (1846.09.26) "Second Speech given in the Montesquieu Hall in Paris" (JDE, Oct. 1846)↩
SourceT.79 (1846.09.26) "Second Speech given in the Montesquieu Hall in Paris" (Deuxième discours, à Paris), Journal des Économistes, Oct. 1846, T. 15, No. 59, pp. 288-92. [OC2.43, pp. 238-46.] [CW6]
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T.80 "Second Letter to M. de Lamartine (on price controls on food)" (Oct. 1846, JDE)↩
[CW4 draft 16 June, 2017] SourceT.80 (1846.10.15) "Second Letter to M. de Lamartine (on price controls on food)" (Seconde lettre à Monsieur de Lamartine), JDE , Oct. 1846, T. 15, No. 59, pp. 265-70. [OC1.13, pp. 452-60.] [CW4]
Editor's IntroductionAlthough the liberal-minded monarchist politician Alphonse Lamartine 628 supported free trade and economic deregulation most of the time and even lent his assistance to the French Free Trade Association by giving speeches on their behalf at public meetings, 629 he had his lapses from economic orthodoxy as this angry and frustrated letter from Bastiat shows. See also Bastiat's "First Letter to Lamartine" (Jan. 1845) (above, pp. 000) for another lapse concerning the right to a job which upset Bastiat considerably.
Here Bastiat objects to Lamartine's call for a suspension of free trade in order to alleviate the suffering caused by the high prices and shortages which resulted from the crop failures of 1846 and which extended into 1847. The problem had begun with the potato blight in Ireland in 1845 which led to crop failures and food shortages. Poor weather in Europe led to similar crises on the continent in 1846. These crop failures caused considerable hardship and a rise in food prices in 1847 across Europe. Some historians believe this was a contributing factor to the outbreak of revolution in 1848. The average price of wheat in France was 18 fr. 93 c. per hectolitre in 1845; which rose to 23 fr. 84 c. in 1846. Prices were even higher in the last half of 1846 and the first half of 1847 when the shortage was most acutely felt. In December 1846 it rose to 28 fr. 41 c; and reached a maximum of 37 fr. 98 c. in May 1847. Lamartine wrote an essay for his magazine on "The Food Crisis" in Oct. 1846 630 as the crisis was reaching its height and called for the government to introduce price controls (which Bastiat refers to as the "Maximum" in a reference to the disastrous prices controls introduced during the Terror).
The response of Richard Cobden and the free traders in England to the Irish famine was to call for deregulation and international free trade so that surpluses from other parts of Britain and Europe, such as Odessa in Russia, could be brought in to feed the Irish. The plight of the hungry Irish was an important part of free trade propaganda in England which led to the repeal of the Corn Laws between January and June 1846. The situation in France was complicated by the fact that the country was divided into regional zones which were required by the government to have their own government funded grain storage centres and bans or limits on exporting grain to other parts of France depending upon prices and supplies. Thus, France had a double problem of restrictions on both internal and external movement of grain in times of shortages.
The result of Lamartine siding with the large grain growers and the protectionists in late 1846 was his "demotion" by Bastiat from the pantheon of semi-official poet to the liberal movement:
You fulfill this sublime mission entirely and this, Lamartine, is why you were our favorite poet. And now, will we be condemned to being the witnesses of your downfall, to seeing you descend in your lifetime from the height of your glory and to doubting whether those delicious emotions with which you calmed our youth were anything other than misleading illusions? (emphasis added)
The layout and style of this essays, with a quotation from Lamartine on the left and a reply by Bastiat on the right, much like a "free trade catechism," follows that of one of the leading spokesmen for the Anti-Corn Law League, Thomas Perronet Thompson, who used it in several of much reprinted pamphlets. 631
TextSir,
I have just read the article which originally appeared in the Bien Public in Mâcon and has now been republished in all the Paris journals. It would be impossible to express to you how much of what I have read has surprised and saddened me.
It is, then, only too true! No one on earth has the privilege of intellectual universality. There are even mutually excluding abilities and it appears that the arid domain of political economy is all the more forbidden to you because you possess to the highest degree the enchanting and supreme art "Of thinking in images as well as naturally."
Why have you disdained this art, or rather this divine gift? Ah! No matter what you say, you had received the most noble and holy mission of genius in this world. What has become of the period in which, with minds that were cold and methodical and natures still weighed down by the burden of materialism, we tore ourselves with delight from this positive world to follow your flight in the misty and poetic regions of idealism? You revealed to us then thoughts, doubts, desires, and hopes that slumbered within our hearts, like the echoes that slumber in the grottoes of our Pyrenees as long as the voices of our shepherds do not awaken them. Who will now reveal other horizons and other skies to us, adored places in which Love, Prayer and Harmony live? 632 How many times, when you gave me glimpses of these misty domains, did I not cry: "No, this world does not embrace everything; science does not reveal everything. The infinite exists beyond them and imagination also has its torch!"
Oh! How great is the power of the poet! I do not mean a mere "versifier" who tolerates whatever license or tyranny he may come across. But that perception of what is Beautiful and Sublime in nature, that strong emotion that is awoken in the soul when they are seen, this gift of clothing them in a language that is melodious in order for commonplace souls to be included, that is Poetry. And as it rises, it breaks free from any element of selfishness or perversity, for it could never share the sad infirmities here below without losing the sentiment of what is true, lovable, and great, that is to say, without ceasing to be Poetry. As long as the divine light shines on his brow, his aspiration will be to purify, make more spiritual, illuminate, and elevate. Thus, a true poet, whether or not he is aware of this, is the friend of the human race par excellence, the defender of its rights, its privileges, and progress. 633 What am I saying? No one carries it more than he along the path of progress. Is it not he in fact who, by constantly presenting ideal perfection to us, makes us love it, pours into our hearts an aspiration to Beauty and thus raises the pitch of our souls until it feels in union with the eternal models with which it composes its celestial harmony?
You fulfill this sublime mission entirely and this, Lamartine, is why you were our favorite poet. And now, will we be condemned to being the witnesses of your downfall, to seeing you descend in your lifetime from the height of your glory and to doubting whether those delicious emotions with which you calmed our youth were anything other than misleading illusions?
Just look what you are up to. Because you seek to emulate the kingdom of science, you have abdicated your own kingdom, the kingdom of poetry. You wanted to base your way of thinking on your imagination and your analysis on numerical figures. Where has this got you? To resurrecting the economic empiricism of imperial Rome, to exhuming theories that have been condemned by experience a hundred times over, and been thought buried forever in the depths of oblivion. At the point of giving way, yield, when, if I may use a common expression, it is natural to clutch at any supports, even the monopoly land interest did not attempt, through its mouthpieces, Bentinck 634 and Buckingham 635 , to ask for salvation or a temporary respite on the basis of these worm-eaten theories; and so the world will be astonished that it is you, the great poet of the century who has disinterred them from who knows where in order to set them out once more, clad in magnificent language, to the accompaniment of public ridicule.
Your muse has definitely become an economist; it was not terrified by this strange transformation. For one moment I thought that your whim was going to succeed; it was when you said: "Leave capital, industries and wages to achieve a level of justice for themselves by way of freedom that our arbitrary and despotic laws could never achieve for them."
I think that no thought as true as this, in such a precise form, could have been uttered by anyone who had not traced out the long sequence of effects of arbitrary and despotic government and freedom alike. And I said to my serious colleagues: A miracle! A triumph! The great poet is on our side!
Alas! I see now that you owed this passing light of truth to your powerful and generous instincts and I am tempted to ask you:
(Whether) when you wrote that charming whate'er they say, Did you yourself fully understand its power? 636
For here, with a stroke of the pen, you have today turned upside down your economic doctrines of last year.
Here in some detail is what you are replacing it with this year.
[NOTE TO LAURA: I can't put footnotes in tables, so I have marked it accordingly]
"The question of cereals is one of the most sensitive, we would say, one of the most insoluble ones that can face economists." |
The question of cereals insoluble ! In this case, we should spend no more time on it than we do on squaring the circle . This word therefore should not be taken literally and you wished to speak of "An unsolved problem but not an insoluble one." [see FN] Note that from the outset you have denied yourself the right to reason. |
FN: "An unsolved problem but not an insoluble one." 637
"Through its mass and weight, it escapes the hands of science." | Yes, if 200 and 200 do not make 400 as surely as 2 and 2 make 4; yes, if by its mass and weight one hundredweight escapes the laws of gravity more than one pound does. |
"Theory can obviously do nothing. This is a question of experimentation ." |
Is there incompatibility between theory and practice, then? I thought that theory was merely experience set out methodically. [FN] Note that this is already the second time that you have denied yourself the right to reason. |
FN: "incompatibility between theory and practice" 638
"Total freedom to trade is a general truth with regard to products, commerce, and trade." | This is a fine maxim. Do you take it from theory or experience? |
" Laissez faire, laissez passer has become a proverb with writers." | According to the preceding sentence, you appear to take this proverb for the truth. According to the following sentence, you appear to take this proverb for a falsehood. |
"But when it is a question of applying this alleged truth to imports, exports , and the grain trade, it is instantly clear that, while it is not a lie , it is at least a supreme danger, and the theory gives way to practice, since wheat is the lifeblood of the people, and you do not play with life. Lives come first; that is the irrefutable truth. Theories come after the life's necessities, that is common sense." |
Here in effect is a general truth that is no longer anything more than alleged truth. In a short time, it will become a lie . If gravity is a general truth , it is important to respect it at all times, but especially when it is a question of life. I would not have been surprised if you had not acknowledged freedom as a general truth in commerce, but once you had recognized this, your deduction ought, in my view, to have been formulated as follows: "When it is a question of the import or export of something superfluous, we might yield to the application of general truth . However, with regard to wheat there should be no hesitation, for wheat is the lifeblood of the people. Well, we do not play with life; life comes first; that is the irrefutable truth. Government experiments should come after life's necessities, that is common sense." |
"Well, why does the TRUTH of free trade, free exports, and free imports cause fear and trembling in economists? For example, relating to France, here it is:" | Either freedom is the best way of ensuring abundance and the proper distribution of products (it is only on this condition that it is a general truth ), and in this case it should be applied to everything, and a fortiori to wheat, or there are more certain ways of achieving this work, in which case it is not a general truth , either for toys or for wheat. |
"First of all, since wheat is the lifeblood of an entire nation and a passion for life is the most legitimate and fearful passion in people, the slightest fault of commerce, the slightest error in calculation in the imports and exports of wheat, the slightest serious anxiety in the population with regard to life will produce a level of unrest and shortages to which no humane and wise legislator would wish to expose his country." | Since wheat is the lifeblood, and since the slightest error in calculation in the import or export of wheat can produce shortages; since no wise and humane legislator can take the responsibility of exposing his country to it, commerce should then be left free, since, besides, freedom is a general truth , that is to say, the least risky means of ensuring abundance and proper distribution. Is it not clear that an error in calculation, whose consequences can be so fearful, is infinitely more probable in a minister who is not directly involved and has many other concerns than in one hundred thousand traders who spend their lives doing these calculations on whose accuracy their own existence depends? |
"Next, as wheat is the largest agricultural product, totaling revenue of two or three billion in the production of the country, if the free import of foreign wheat was able to compete with French wheat without limit at all times and at a price in a ratio to ours of ten to thirty , France would instantly stop producing wheat that nobody would want to buy at that price and three billion of national revenue and ten million farmers would be wiped out simultaneously. What would happen to income? What would happen to taxes? What would become of landowners? What would become of those who work the land? We tremble to think. It would be the suicide of French landowning and the population. This remedy that is being put before us is thus not a remedy but murder." |
If what you say about free imports is true for wheat, it has to be true to some extent for anything else, for, Sir, traders do indeed import wheat when they are allowed to, from places where it is cheaper than in France; they do not have the habit of acting differently with regard to other products nor buy them expensively in order to sell them cheaply. For this reason, the free import of iron would be suicide for our forges and the workers they employ. Free imports of fabrics would be suicide for our factories and the populations that they employ. In a word, freedom would result in universal carnage or, as you put it, the murder of every French citizen. In this case, I do not clearly see the reason for your calling it a general truth . To insert some harmony between your premises and your conclusions, you should have begun by establishing that freedom is the general lie in commerce . However, in this case, you would not have had a foot in each camp, a precaution that many people take just now, but one that is unworthy of you. I take the liberty of saying to you that this cowardly tactic has run its course. Let the person who is unfamiliar with the laws of trade either examine them or hold his tongue, but don't let him think that he can obtain the twin advantage of being thought of as a great mind and pleasing everyone by saying to one person: "You are in favor , which makes you a good logician" and to another: "you are against , which makes you a good practical man". Too many people see the inconsistency and denounce it. As for refuting your sad picture of freedom in agriculture, you yourself have done so in the following paragraph. |
"Finally, as wheat is one of the most bulky products, it would be physically impossible commercially to import and distribute throughout the empire all the wheat required for consumption in France. Calculations made in 1816, a year of shortage that was much more alarming than the present one, proves this sad truth through figures: if by an impossible coincidence all the merchant shipping in Europe was devoted to importing wheat for France, it could have imported enough for only fifteen to seventeen days' consumption. Tell me something about unlimited freedom of commerce after that!" |
Be afraid of unlimited freedom after that, say I in turn! Come and tell us then that foreigners will sell their wheat into our market for a trivial amount, for almost nothing or perhaps for nothing at all! Come and paint us a picture of every French citizen dying of hunger with folded arms, leaving their cattle to ruminate, their ploughs to rust, their capital idle, and their land unworked while relying on foreign wheat that it is physically impossible to import! Oh! Let us thank heaven that among our 34 million fellow-citizens someone has been found who has foreseen this, that this should precisely have been a statesman and that he has been able to anticipate all of our deaths by setting this happy Maximum price [ insert FN] that has never been known in Switzerland and that has just been abolished in England. |
FN: Maximum price. 639
But perhaps it would be improper to continue this discussion step by step. Sometimes I ask myself how it can be possible for two minds to reach such opposing solutions to the same question. Is it self-interest that blinds me? Certainly not. I do not have other means of existence than one piece of land and this land produces only cereals. 640 If foreign cereals were allowed to enter, I do not think my land would lose its value and do not fear that my hands would remain idle. No, I do not fear this would happen even if the foreign wheat is sold, as you claim, for a price in a ratio to ours of ten to thirty , as you say, or even if it were given away for NOTHING, for in that extreme hypothesis, what the people spend today on bread they would spend on meat, butter, vegetables, yarn, wool, and other farming products. My land would no more be valueless because each person had free bread to fill his stomach than it is valueless now because each person has free air to fill his lungs.
And after all, what right have we, the landowners, over the stomachs of those who are not? Is their hunger made for our wheat or our wheat made for their hunger? Let us not turn the world upside down. Living is the aim, cultivating the land is just a means to this end; it is up to us to subordinate the convenience of our production to the lives of our fellow-citizens and not on the contrary to let ourselves subject their lives to our properly or improperly considered convenience. I find it very comforting that the doctrine of freedom reveals to me only harmony among these various interests and, with your soul, you must be very unhappy, since you see in them just an unavoidable dissonance. 641 As a landowner, you now invoke the generosity of the owners of land. You should in truth be calling on their sense of justice ! You have written a page on charity that I, like everyone else, admires. But I would admire it a great deal more if I did not see it end with the bitter conclusion that "wheat is life; let the law maintain a Maximum price level for it that gives value to our land!" 642 And whose hand has written these lines? The same that was raised in the Chamber in favor of the Maximum and which will then open to receive from the poor the pennies which have been unjustly taken from them. Believe you me, understood this way, charity loses a great deal of its luster. When people demand that foreign wheat should be kept out so that theirs can be sold at a better price, it is no use their speaking of charity, 643 it is no use their carrying this word before them like a banner, they have no right to popularity or at least popularity worth anything. No, they have no right to this, even when they declaim before an anxious population banal indictments of the murderous doctrines of the friends of freedom, of the faults and crimes of the government and the Chambers and of the greed of speculators and the selfishness of commerce . Before broadcasting such dangerous and, I dare to say, unjust popular prejudices, they should at least not come and say: "Let the law increase the people's hunger by a few degrees by keeping out foreign wheat, so that we, the landowner-legislators, can gain a better margin for our wheat."
God forbid, Sir, that I call into question the purity of your intentions. It shines forth from all of your writings. Reading your words, I see clearly that you love the people. It is you, I believe, who were the first to use the expression: "la vie à bon marché" (life at low prices), words that might be the title of our Free Trade association, 644 for life at low prices, is life that is easier, sweeter, and less fraught with tiredness and anguish, more dignified, more intellectual, and more moral. Life at low prices is the result that trade, and above all free trade, tends to produce. On this question, a considerable number of monopolists have tried to mislead the people, which is easy, for any obstacle to progress 645 which happens to employ a sizeable part of the national labor force can readily serve to turn the feelings of the masses against progress, in whatever form it occurs, whether the case be Freedom, Inventions, or Savings. You, Sir, who know how to talk to the people, to whom they listen and whom they love, please help us to dissuade them. But do not be surprised that zeal against monopoly carries us away when what we have to fear is that it has found a champion of your caliber.
I am, Sir, your devoted servant,
628 See the glossary on "Lamartine."
629 One of speeches was published as a separate pamphlet by the French FreeTrade Association. See, Discours de M. de Lamartine, prononcé dans l'Assemblée marseillaise du libre échange, le 24 août, 1847 (Association pour la liberté des échanges. Lyon: L. Boitel, 1847).
630 Lamartine, "De la crise des subsistances" (1 Oct. 1846), Le Bien public ; republished in La france parlementaire (1834-1851). Oeuvres oratoires et écrits politiques par Alphonse de Lamartine. Précédés d'une étude sur la vie et les oeuvres de Lamartine par Louis Ulbach. Troisième série: 1847-1851. Tome cinquième (Paris: Librairie Internationale, 1865), pp. 1-10.
631 Thomas Perronet Thompson (1783-1869) was a soldier, politician, polymath writer, and pamphleteer and agitator for the Anti-Corn Law League. He was active in urging Catholic emancipation, the repeal of the Corn Laws, and the abolition of slavery. He used the catechism format in Catechism on the Corn Laws; With a List of Fallacies and the Answers (1st ed. 1827, 18th edition 1834) and Corn-law Fallacies, with the Answers (1839).
632 Here Bastiat may have in mind another book of poems by Lamartine he probably read in his youth called Harmonies poétiques et religieuses (1830) which may have contributed to Bastiat's thinking about the harmony of the market created by Providence.
633 Bastiat may have in mind the poems "Bonaparte" and "La Liberté, ou une nuit à Rome" in Nouvelles méditations poëtiques (1823).
634 Lord George Bentinck (1802-1848) was the leader of the conservative group in Parliament where he and Benjamin Disraeli led the opposition in the House of Commons against Richard Cobden's and Sir Robert Peel's attempts to repeal the Corn Laws in 1846.
635 Richard Grenville, 2nd Duke of Buckingham and Chandos (1797-1861) was a wealthy landowner in Buckinghamshire and member of the conservative group in Parliament. The Duke was often the butt of the jokes of the Free Traders in the House because of his uncompromising opposition to free trade and unwillingness to compromise.
636 From Moliere, Les Femmes savantes (1672), Acte III, scène II, where Philaminte says to Trissotin:
"Mais quand vous avez fait ce charmant quoi qu'on die, | Avez-vous compris, vous, toute son énergie? | Songiez-vous bien vous-même à tout ce qu'il nous dit? | Et pensiez-vous alors y mettre tant d'esprit?" in Oeuvres complètes de Molière avec les variantes (Paris: L. de Bure, 1834), p. 635. Translation: "But when you wrote that charming whate'er they say, Did you yourself fully understand its power? Did you even consider all that it says to us? And did you intend then to put so much wit into it?"
637 Possibly taken from Henri Grégoire, De la littérature des nègres, ou Recherches sur leurs facultés morales et leur littérature; suivies de Notices sur la vie et les ouvrages des Nègres qui se sont distingués dans les Sciences, les Lettres et les Arts (Paris: Maradan, 1808) with the obvious reference to the problem of abolishing slavery. Bastiat may have been citing from memory and got it slightly wrong: "Un problème non résolu, jusqu'à présent, mais non pas insoluble" (a problem which up until today has not been solved, but which is not insoluble), p. 150.
638 See Bastiat's critique of the sophism used by protectionists that although free trade might be fine in theory, it was not in practice, ES1 13 "Theory and Practice" (late 1845), CW3, pp. 69-75. There he was attacking the ideas of the arch-protectionist Auguste Saint-Chamans (1777-1860) who had been a deputy (1824-27) and a Councillor of State.
639 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.
640 Bastiat owned land in south west France in the département of Les Landes which he inherited from his grandfather and rented out to sharecroppers. He owned about 250 hectares (617 acres) of land and earned enough from this to pay sufficient taxes to be eligible to vote and even to stand for office, which placed him in the top 5% of income earners in France.
641 At this time Bastiat was still working out his theory of harmony and its opposite disharmony.
He used two words to describe the opposite of harmony, namely "la dissonance" (dissonance) and "la discordance" (disharmony), and we have tried to preserve Bastiat's distinction between the two. In this passage Bastiat for the time pairs the two concepts of "harmony" and its opposite "dissonance." His next pairing would be in the Introduction to EH1,"To the Youth of France," after which he used it repeatedly. The first pairing of the words "harmony" and "discordance" (disharmony) was in a speech he gave for the FFTA in Marseilles in August 1847 (Sixth Speech given in Marseilles), in CW6 (forthcoming). See the glossary on "Harmony and Disharmony."
642 Lamartine,"De la crise des subsistances," p. 3.
643 Elsewhere, Bastiat makes the distinction between "legal" or state coerced charity and "voluntary" charity. See "First Letter to Lamartine", above, pp. 000.
644 "La vie à bon marché" would in fact become one of the mottos on the Association's weekly journal Le Libre-Échange when it began publication the following month. It was edited and largely written by Bastiat between 29 November 1846 and 16 April 1848. The motto was also used on the masthead of his and Molinari's radical newspaper, Jacques Bonhomme , which they handed out on the streets of Paris in June and July 1848. It is not clear when Lamartine first used this phrase.
645 In several Economic Sophisms Bastiat compares protectionism to other obstacles which impede economic progress, such as blocking up rivers (ES1 16 and ES2 7), breaking railway journeys (ES1 17), using blunt axes (ES2 3), and forcing people to use their left hand to work (ES2 16). See CW3.
T.81 "On Population" (JDE, 15 Oct. 1846)↩
[CW4 draft 16 June, 2017] SourceT.282 (1846.06.??) "Population", 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), vol. XX, pp. 110-120. Probably mid-1846. Republished as "On Population" in JDE, Oct. 1846. See T.81. [Not in the OC. DMH] [CW4]
T.81 (1846.10.15) "On Population" (De la population), JDE , 15 Oct., 1846, T. XV, no. 59, pp. 217-234. A revised version of this article appeared as chap. 16 in the 2nd, posthumous edition of Economic Harmonies (1851), with explanatory notes by Fontenay. Not in the OC. [CW4]
Editor's IntroductionSix chapters of what would become Bastiat's book Economic Harmonies were published in other locations between early 1846 and July 1851 when the expanded posthumous second edition was published. These were "On Competition" (Encyc. & JDE, May 1846),"On Population" (Encyc. & JDE, 15 Oct. 1846), "Natural and Artificial Organisation" (JDE, 15 Jan., 1848),"Economic Harmonies: I, II, and III. The Needs of Man" (1 Sept., 1848, JDE), "Economic Harmonies IV" (JDE, 15 Dec. 1848), and "Producers and Consumers" (JDE, 15 June 1851). The most heavily rewritten and revised early chapter was "On Population" which first appeared as an encyclopedia article in early 1846, as a slightly revised article in JDE (Oct. 1846), as a extensively rewritten chapter in the 2nd posthumous edition of EH (July 1851) along with a lengthy Note by Fontenay, and finally the same chapter as written by Bastiat (with one large paragraph cut) but with most of Fontenay's Note cut for volume 6 of the Oeuvres complètes which was published in 1855. We have indicated in the notes below where changes were made and in what version they appeared using the following abbreviations: "E version" (Encyclopedia version), "JDE version" (article in the JDE), and "EH2 version" (the second edition of EH).
To begin with the differences between the E version and the JDE version, there were ten minor corrections and new insertions of words in the JDE version, two longer insertions of new material dealing with the Bureau of Longitudes and the spiritualist and materialist schools of thought, and one new footnote on J.B. Say's theory of the means of existence. The most significant addition was a new ending for the JDE version of 900 words dealing with social harmonies, foresight and planning, sharecropping, the means of existence, philanthropy, progress, and the perfectibility of man.
The differences between the JDE and the EH2 versions were much more significant. There were several minor cuts; a new paragraph in which Bastiat criticised Malthus for underestimating the power of progress to alleviate the economic condition of mankind; and a couple of sentences on J.B. Say's theory of the "means of existence" were inserted; and a couple of sentences were cut which dealt with the right of workers to take advantage of circumstances which might improve the value of their services. However the major change was a new 2,000 word introduction which replaced the first couple of pages of the JDE version. About half of this new introduction was devoted to a defence of Malthus against his critics (Godwin, Sismondi, Leroux) who accused him of being too pessimistic and uncaring about the poor. Bastiat argued that Malthus was largely correct in theory but made the mistake of underestimating the capacity of the free market and human initiative to improve mankind's condition and the ability of people to have some control over the size of their families. Malthus also did not discuss how the actions of other human beings made other people worse off, namely by means of "plunder." Drawing upon what he had written on plunder in the first two chapters of ES2 (published January 1848) Bastiat added here the following very important paragraph to the EH2 version:
I believe that there are several (causes of poverty). One is plunder , or if you prefer, injustice . Economists have mentioned this only incidentally and in so far as it implies some error or erroneous scientific notion. When setting out general laws, they considered that they did not have to take notice of the effect of these laws when they do not work or when they are violated. However, plunder has played and still plays too great a role in the world for us, even as economists, to feel free to disregard it. It is not just a question of casual theft, larceny and isolated crime. War, slavery, theocratic deception, privilege, monopoly, trade restrictions, tax abuses, are all the most obvious examples of plunder. It is easy to understand the influence that such wide-ranging disturbing forces must have had and still have on the inequality of situations by their very presence or the deep-rooted traces they leave. Later, we will endeavor to measure their huge effect.
Bastiat had been developing this idea of "disturbing forces or factors" 646 which upset the harmony and wealth creating function of the free market since early 1845 when he first broached it in his "Letter from an Economist to M. de Lamartine" (JDE, Feb. 1845). 647 In this essay he also contrasted it with its opposite, "les forces réparatrices" (restorative forces or factors), by which the free market attempted to repair itself and return to equilibrium after having been disturbed by various interventions. He planned to have an entire chapter in Economic Harmonies devoted to this topic but did not complete it before he died. 648
One can only speculate on why Bastiat made so many changes and revisions to this essay (more than any other). His more optimistic view about the ability of markets to produce sufficient food and of people to plan the size of their own families put him at loggerheads with the more orthodox political economists, some of whom like Joseph Garnier and Gustave de Molinari were ardent Malthusians. Perhaps Bastiat was trying to answer their objections in his later versions of the essay. He also seems to be thinking more about J.B. Say's idea of a flexible and ever-upwardly expandable "means of existence" (or "standard of living" as we would say today) and how this might be used to answer some of Malthus' concerns. The other side of the coin, was his new idea of "disturbing factors" which prevented many people from producing and keeping what wealth they had acquired out of the hands of various "plunderers", whether "legal" or "extra-legal." The combination of unfettered wealth creation and protection of property rights Bastiat thought would go a long way towards solving the "population problem."
Some of the other topics Bastiat deals with in this essay include the following.
- There is a difference between the "means of subsistence" (bare survival) which is biologically determined and the "means of subsistance" (the standard of living) which depends on the level of economic development and the amount of capital in any given society.
- There is a difference between the "theoretical" or "potential" growth of a population, which was applicable to plants or animals which are unable to plan for the future, and the "actual" or "historical" growth of human populations.
- Human will and foresight play an important role in influencing how the "law of population limits" applies to human populations.
- He is optimistic about human perfectibility and the possibilities for almost unlimited progress in the future.
- He introduces his theory of exchange as the exchange of "service for service" and contrasts this with Say's narrower theory that one exchanges "products for products." 649
- He discusses the nature of labour and the utility it produces and examines the impact competition will have on workers' wages in different "social strata."
Other places where Bastiat discussed Malthus and the problem of population growth:
- T.17 "On the Allocation of the Land Tax in the Department of Les Landes" (July, 1844) - a discussion of the impact of the land tax on population levels and the standard of living in Les Landes.
- T.23 "Letter from an Economist to M. de Lamartine" (JDE, Feb. 1845) - criticises Lamartine for accusing the economists for being heartless Malthusians.
- T.47"Thoughts on Share Cropping" (JDE, Feb. 1846) where he argues that sharecroppers who have the economic incentive to do so, show that individuals can rationally plan the size of their families.
- T.66 "On the Railway between Bordeaux and Bayonne" (19 May, 1846) where he talks about population fluctuations and tax burdens.
- T.68 "On the Redistribution of Wealth by M. Vidal" (JDE, June 1846) where he argues that men are rational creatures who plan their lives and prosper.
- T.282 "On Population" (Encyc. 1846)
- T.81 "On Population" (JDE, October 1846)
- T.166 ES1 "Physiology of Plunder" (Jan. 1848) where he develops a Malthusian law which governs the maximum size to which the state can grow before popular resistance grows to resist it.
- T.244 "Speech on the Tax on Wines and Spirits" (12 December 1849) where he develops a Malthusian law which governs the number of civil servants and state employees.
- T.249 First edition of EH (Jan. 1850)
- "To the Youth of France" where he wants to replace Malthus's "false law" with a new law: "All other things being equal, the increasing density of population is equal to an increasing capacity to produce."
- Chap. 4 Exchange where he claims he has found the solution to the population problem in the "perfecting of the commercial and exchange mechanisms"; and that increasing population density and concentration of people in cities increases the division of labour and the opportunities for mutually beneficial trade.
- Chap. 7 "Capital" where he argues that the value of all things increases along with increases in population density.
- Chap. 9 "Landed Property" where, according to his "law of prices," as population pressure increases the price of food, more food will be produced.
- T.260 Second edition EH:
- Chap. 16 "On Population" where the productive power of economies will increase as population grows.
- Chap. 18 "Disturbing Factors" where, once these disturbing factors are removed, significant barriers to wealth creation will also be removed which will allow more people to prosper.
The law which governs mankind relative to their numbers has been formulated in these terms:
Populations tend to adjust themselves to the level of the means of subsistence.
It is difficult to explain why the honour or responsibility for creating this expression has been attributed to Malthus. I don't know of a single author who concerned themselves with this material writing before the English economist who did not express the same thought in other or even in identical terms. For example, M. Say substituted the words "the means of existence" (les moyens d'existence) for the words "the means of subsistence" (les moyens de subsistance) 650 based upon his work examining how much food was sufficient for a family to survive , according to the country in which they lived, the social rank to which they belonged, the customs they had adopted, and the various needs the satisfaction of which was important for the maintenance of their lives. 651 The majority of economists have adopted M. Say's expression. But these formulas, one must say, and M. Say would agree, need so many explanations and commentaries of a rigorous and absolute kind and are so contrary to the facts, that their scientific usefulness is at the very least quite debatable. The size of a population is determined by the production of food according to Malthus; by production in general following M. Say, and by income after Sismondi. 652 But, if this is indeed the case, is is hard to see how mankind could ever make any progress if it weren't for the number of its people. As production or revenue increases for a nation or a class, if the number of people who make up this class or nation increase exactly in the same proportion, then the condition of human beings is unchangeable. Ten times more production in the 19th century compared to the 5th century; ten times more income in an industrious nation than in a primitive people; this implies a ten-fold increase in population for the century or the country which has become civilised, but this excludes any notion of individual improvement or progress. This is certainly not what the economists intended to say but it is the logical consequence of their formulas. They are thus more or less incomplete. What is important is to explain the laws of population growth and if it is then possible to summarise them in a brief phrase it would certainly be a happy moment for the advancement and spread of economic science. But if, because of the number and changing nature of the data we find that these laws resist being encapsulated in a formula with the logical rigor which science demands, we would have to give up this attempt and accept the inconvenience of having to use an inevitable wordiness instead of a deceptive concision to explain the problem.
The first fact to determine is the physiological power of the human race to multiply. It is clear that this is the upper limit in all cases beyond which any real growth of a population cannot go. Here we would like to be very clear and not encourage the accusations which, in our view, have been so inappropriately leveled against Malthus. This line of reasoning has been attributed to him: "Population increases in geometric progression; food production increases in arithmetic progression; therefore poverty, sickness, and death have to intervene in order to re-establish equilibrium." Malthus never made this foolish assumption: that people multiply in a geometric progression. He examined from a physiological perspective what the natural power of reproduction was for the human race, how much time it took for a given population to double in size on the assumption that the satisfaction of all its needs did not meet with any obstacle , 653 and concluded that this was a period of 25 years. 654 He came to this conclusion because direct observation of a people which most closely approximated his hypothesis (although still very far away geographically) had shown him. This was the example of the American people. Once he had found this period, and as it was always a matter of the theoretical power of growth, he said that a population tended to increase in a geometric progression. This, most certainly, is a veritable truism , since, according to the assumptions of the author , where the satisfaction of needs were completely assured in advance, there was no reason to believe that 2 thousand, 100 thousand, 1 million couples would not multiply in the same proportion as one thousand. In fact, this will not happen. Why? Because people, according to Malthus' hypothesis, are not like this; because their needs are not satisfied as soon as they appear; because it is necessary to create food so that these new generations imagined in theory can survive, 655 or, if you will, to create the means of existence so that they might live. Well, food cannot be doubled everywhere every 25 years. In fact, this is why populations do not double every 25 years. But what stands in the way of this power of nature, this theoretical force, this abstract principle of population growth? What makes a population, in all countries, instead of following the possible growth of this natural power, only and always follow the growth in food supplies? Obviously, it is because in reality fewer people are born and more people die than in this hypothesis. It is because people abstain from having children when they foresee that their needs will not be indefinitely and immediately be satisfied; or by not foreseeing this, they die. Since births and deaths are the only factors which can change the number of human beings, Malthus' division of checks to population into preventive and repressive ones must be complete.
That is Malthus' theory. I would like to observe here that this economist was wrong to adopt as the limit of human fertility this period of 25 years which was observed in the United States. By doing this he believed he could avoid any criticism of exaggerating and being too theoretical. How, he might say to himself, could anyone dare claim that I give too much latitude to what is theoretically possible if I base my conclusions on what is real ? Thus by mixing the real and the theoretical, by measuring the law of population growth (which was an abstraction which came from the law of population limits) by a period of time based upon facts which came from an historical example where these two laws operated together, he did not take care to avoid being misunderstood, which is what happened. He was mocked for his geometric and arithmetic progressions; he was criticised for taking the United States as being typical of the rest of the world. In a word, people used the confusion which arose from his use of two distinct laws in order to challenge him by pitting one law against the other.
But let it be well understood that when we examine what the power of reproduction means for the human race, we put aside for the moment all obstacles, physical or moral, which arise from the lack of space or food, and it is necessary to begin by recognising what the upper limit to the reproduction 656 of the species is, which human organisation makes theoretically possible. The first question we ask is therefore the following: given the age of puberty and the length of time a woman is fertile, what kind of progression could the reproduction of life follow, if it was not necessary to sustain it? With the human race, as with all other living creatures, this power is such that it is truly unnecessary to determine it exactly. It is sufficient to say that it exceeds by a huge amount all the examples of rapid population growth which one has observed in the past or which might be shown to exist in the future. In the case of wheat, assuming there are 5 stalks per seed and 20 grains per stalk, a single seed has the theoretical power to produce 10 billion in 5 years. For dogs, by reasoning from these two assumptions - that there are 4 pups per litter and 6 fertile years per bitch - that one pair would give birth over 12 years to 8 million offspring. For humans, setting the age of puberty at 16 and the length of child-bearing years at 30, each couple could give birth to 8 children. It is not necessary to reduce this number by half because of infant mortality, since we are reasoning, by hypothesis, that the needs of all kinds are satisfied as soon as they appear, a fact which greatly restricts the empire of death. Even so, these premises give us the following progression with a period of 17 years:
2 — 4 — 8 — 16 — 64 —256 —512, etc. 657
Thus we have more than 50 million people in 2 centuries.
What if we want to set puberty at 16 years and reduce to 6 the number of children that each couple can raise? One would have the following progression with a period of 21 years:
2 — 6 — 18 — 54 — 162 — 486 — 1,458, etc. 658
If one does the calculations according to the method used by Euler 659 the period for doubling will be every 12 and a half years, there will 8 periods in a century, and the growth during this period of time will be in the ratio of 512:2.
It is not useful to pursue this research any further. It is sufficient to recognise that in in our species, as in all others, the power of nature to multiply is greater than actual reproduction. Besides, it implies that there is a contradiction, that the actual exceeds the theoretical, and this is all that we wanted to establish.
In no historical period, in no country, have we seen the number of people increase with this frightening speed. According to Genesis , the Hebrews entering Egypt numbered seventy couples; in the Book of Numbers, two centuries later, we find that the census taken by Moses listed six hundred thousand men twenty-one years of age and over; hence, a total population of at least two million. 660 We may thus reckon that the population had doubled every fourteen years. 661 The statistical tables of the Bureau des Longitudes 662 are scarcely qualified to check biblical facts. Can we say that six hundred thousand fighting men implies a population greater than two million, and conclude from that a doubling period which is less than that calculated by Euler? We are entitled to cast doubt on Moses' census or Euler's calculations, but it certainly cannot be claimed that the Hebrews multiplied in numbers faster than it is possible to multiply. That is all that we ask.
After this example, which appears to be the one in which actual fertility most nearly approximated theoretical fertility, we have that of the United States. Here we know that, over the past three centuries, the doubling of the population takes place in less than twenty-five years. According to the research of M. Moreau de Jonnès, 663 who took as a starting point the growth of population which is taking place in our own time, the same phenomenon of doubling would take 43 years in Russia and England, 76 in Germany, 100 in Holland, 106 in Spain, 135 in Italy, 138 in France, 227 in Switzerland, 238 in Portugal, and 555 in Turkey. Thus there is a force which limits, restricts, and suspends to some degree the action of the physiological power which we have noted, and that this force is no doubt complex since it sets limits, which vary according to time and place, and are thus quite different to a power which had been considered to be uniform. The components of this force, the general factors which prevent all living creatures from reaching the law of doubling in their reproduction (a law which is a theoretical one for them), is also a law (if it is possible to recognise them and put them into a formula). I call it the law of population limits 664 and it is clear that the growth of the population in each country, in each class, is the result of the combined action of these two laws. But what does the law of population limits consist of? I think that one can say in a very general way that the reproduction of life is held back or prevented by the difficulty of sustaining life. It is important to deepen our understanding of this idea. It would be true to say that it constitutes the most important part of our subject.
Organisms that are alive but have no feeling, are entirely passive in this conflict between the two forces. For plants it is true in the most exact sense, that in each species numbers are limited by the means of subsistence. While there is a profusion of seeds, the resources of space and the fertility of the soil are finite. Seeds come to harm and destroy one another; they may fail to mature and if in the end they succeed, only in the numbers the soil can feed. Animals have feelings, but in general they appear to be without foresight; they reproduce, swarm, and breed rapidly, without a thought for their posterity. Only death, premature death, can limit their increase in numbers and maintain the balance between their numbers and their means of existence. 665 Mr. de Lamennais, when addressing the people in his inimitable style, said: 666
"There is a place for all on this earth, and God has made it sufficiently fertile to provide abundantly for the needs of all," And later: "The Author of the universe has not put man in a worse situation than that of the animals; are all not invited to the rich banquet of nature? Is a single one of them excluded?" And again: "Plants in the fields close to one another extend their roots in the soil that nourishes them all and all grow peacefully; none absorbs the sap of another.
It is possible to see this as merely fallacious oratory, which becomes the premises for dangerous conclusions, and to regret that such admirable eloquence should be devoted to popularizing the most disastrous errors. It is certainly not true that no plant steals the sap of another and that all extend their roots in the soil without hurting each other. Billions of plant seeds fall on the earth each year, start to sprout, and die, stifled by stronger and more vigorous plants. It is not true that all the animals that are born are invited to the banquet of nature and that none is excluded. 667 Among the wild species, animals prey on one another, and in the case of domesticated species man eliminates a considerable number. Indeed, nothing is more apt to show the existence of and relationship between these two principles, that of the growth of population and that of the limitation of population. Why are there in France so many bulls and sheep in spite of the massacres they suffer? Why are there so few bears and wolves, although fewer are killed and they organize their lives in ways consistent with their numbers increasing very substantially? It is because man provides food for the first group and removes it from the second. He uses the law of population limits with respect to them in such a way as to leave greater or lesser latitude to the law of fertility. Thus, for plants as for animals, the limiting force appears to show itself in one single form only, destruction . But man is endowed with reason and foresight, and this new element modifies and even changes the way this force acts with regard to him.
Doubtless, as a being equipped with physical organs and, to put it plainly, as an animal, he too is subject to the law of population limits by way of destruction. It is no longer possible for the number of people to exceed the means of existence: 668 that would mean that there would be more people than could exist, which implies a contradiction. Therefore, if reason and foresight have become dulled in man, he is vegetating and becoming brutish and this being so, while it is inevitable that he will increase in numbers given the great physiological law that dominates every species, it is equally inevitable that he should be destroyed by virtue of the law of population limits, of whose action he remains in this instance unaware. But if he is prudent, this second 669 law comes within the bounds of his will; he modifies it and directs it. Its nature changes; it is no longer a blind force, but one that is intelligent. It is no longer just a law of nature, but in addition a social law. Man is the point at which these two forces, matter and mind blend and merge; he does not belong exclusively to either. Therefore, for the human race, the law of population limits reveals itself through two influences and maintains the population at the required level through the twin action of foresight and destruction. These two effects do not have a uniform intensity. On the contrary, one expands as the other shrinks. There is one result that has to be achieved, population limits, and this is achieved more or less by repression or prevention , depending on whether man becomes more brutish or more thoughtful, depending on whether he is more physical or intellectual, and depending on whether he adopts more of a vegetative or moral way of living. The law is more or less external to him or within him, but it has to be somewhere.
We do not fully appreciate here in France how large a role foresight played in Malthus' thinking since the translator of Malthus greatly limited it by using this vague and quite inadequate expression "contrainte morale" (moral restraint), 670 which he further restricted by the definition he has given it; he says: "It is the virtue that consists in not marrying when you do not have the means to support a family and always to live in a chaste manner." 671 The obstacles that an intelligent human society places in the path of a possible increase in its numbers takes on many more forms than that of moral constraint as thus defined. And, for example, what is this revered ignorance of childhood, probably the sole form of ignorance that it would be a criminal act to dissipate, that everyone respects and over which a fearful mother watches as over a treasure? What is the modesty that succeeds ignorance, the mysterious weapon of young girls, which enchants and intimidates lovers and prolongs and embellishes the period of innocent love? Are the veils thus cast initially over ignorance and truth and the magic obstacles subsequently placed between truth and happiness not wonderful things, which would be absurd in any other context? What is the power of opinion that imposes laws that are so severe on the relationships of persons of different sex, stains the slightest infringement of these laws and pursues weakness, the person who yields to it, and those who are its sad offspring from generation to generation? What is this honor that is so fragile and this rigid reserve, so widely admired even by those who are emancipated from it, and what are the institutions, the problematic proprieties, and these precautions of all kinds, if not the action of the law of population limits as manifested in an order that is intelligent, moral, preventive, and consequently exclusively human? If these barriers are overthrown, and the human species takes no notice of convention, fortune, the future, public opinion, or customs, with regard to the union of the sexes, and returns to the condition of plant or animal species, is there any doubt that, for the human as for the plant and animal species, the power of reproduction would become so strong as to require the rapid intervention of the law of population limits , revealed this time in the physical world, one that is brutal, repressive , that is to say by the ministry of poverty, disease, and death? Is it possible to deny that, in the absence of any foresight or morality, there is enough attraction in the idea of the coming-together of the sexes to produce one, in our species as in all the others, from the outset of puberty? If we set the latter at sixteen years and if the civil records prove that people do not marry before the age of twenty-four in a given country, there are thus eight years subtracted by the moral and preventive aspect of the law of population limits from the workings of the law of population growth, and if you add to this figure what has to be attributed to absolute celibacy, you will be convinced that the intelligent human race has not been treated by the Creator like the brutal animal world, and that it is within its power to transform repressive limits into preventive limits. 672 It is rather strange that the spiritualist and materialist schools 673 should, so to speak, have changed roles on this major question. The spiritualist outlook, thundering against foresight, endeavors to have the brutish principle predominate, while the materialist view, exalting the moral aspect of man, exhorts the empire of reason over passions and appetites.
There is in all this a genuine misunderstanding. If the father of a family consults the most orthodox of priests over the management of his family, 674 he will certainly in specific instances receive advice that totally conforms to ideas that science has elevated into principles and that this same priest rejects as such. 675
"Hide your daughter", the old priest will say, "save her as far as you can from worldly attractions. Cultivate as far as you can and as you would a precious flower, the blessed ignorance, and the heavenly modesty which are both her charm and defense. Wait until an honorable and presentable suitor comes forward but nevertheless work to ensure her a reasonable fate. Remember that marriage in poverty brings a great deal of suffering and even greater dangers. Keep in mind the old proverbs that encompass the wisdom of nations and that warn us that prosperity is the surest guarantee of union and peace. Why be in a hurry? Do you want your daughter at the age of twenty-five to have a family that she is unable to raise and instruct in accordance with your social rank and position? Do you want her husband, incapable of overcoming the inadequacy of his wages, to succumb initially to financial distress, then fall into despair, and perhaps finally into misconduct? The project occupying your mind is the most serious of all those to which you can give your attention. Weigh it up, let it mellow, and avoid all haste, etc."
Suppose the father, imitating the style of Mr. de Lamennais, replies: "In the beginning, God gave this commandment to all men: Increase and multiply, fill the earth and subjugate it." And you, you tell a girl: "Renounce the family, the chaste attractions of marriage, and the holy joys of maternity, abstain and live alone; what would you have to increase other than your woes?" Do you think that the old priest would have anything to say against this line of reasoning?
God, he would say, has not ordered people to increase in number thoughtlessly and without measure, nor to couple like beasts with no thought for the future. He has not given his favorite creature reason in order to forbid him its use in the most solemn of circumstances. He has certainly ordered man to increase, but in order to do this he has to live, and in order to live he has to have the means. Therefore, in the order to increase in number is implied the order to provide the means of existence for the younger generations. Religion has not placed virginity in the category of crimes; far from it, it has made a virtue of virginity, honored, sanctified, and glorified it. It is therefore not to be believed that God's commandment is being violated because it is being prepared for prudently with a view to the good, the happiness, and the dignity of the family. Well, this line of reasoning and other similar ones dictated by experience, which we hear repeated daily around the world, which regulate the conduct of all moral and enlightened families, are they anything other than the application in individual cases of a general doctrine? Or rather, what is this doctrine, if not the generalization of a line of reasoning that recurs in all individual instances? 676 The partisan of the spiritualist tendency, who rejects in principle the intervention of preventive limitation, is like a physicist who says to people: "Act in all encounters as though weight existed but do not accept weight in theory."
We are going to see from this reason alone, 677 that man is a rational and moral creature, endowed with the faculty of judging the future by what happened in the past, and in changing his own destiny, that the law of population limits , which has only one component for other living creatures, namely the repressive check, has for mankind a second component, namely the preventive check, which is destined to reduce, neutralize, and absorb the first. Up until now, we have not departed from the Malthusian theory, but there is an attribute of the human race to which I think the majority of writers have not given the attention warranted by its importance, one which plays a huge role in the phenomena relating to population, one which solves several of the problems raised by this great question, and which regenerates in the souls of philanthropists a serenity and confidence that a deficient science seemed to have banished. This attribute, which is included, moreover, in the notions of reason and foresight, is perfectibility . Man is perfectible, he is capable of improvement or becoming worse. If it is called for, he may remain stationary. He is also capable, however, of ascending or descending the numberless steps of civilization. This is true for individuals, families, nations, or races. 678
It is said that the population tends to adjust to the level of the means of existence, 679 but are these means something which is fixed, absolute, and uniform? 680 Certainly not: as man becomes more civilized, the circle of his needs expands and this can even be said of simple subsistence . Considered from the point of view of a perfectible being, the means of existence , which have to be understood to include the satisfaction of physical, intellectual, and moral needs, have as many gradations as there are in civilization itself, that is to say that they are infinite. Doubtless there is a lower limit: to assuage hunger and protect yourself from a certain degree of cold is a condition of life, and we can glimpse this limit in the condition of the primitive peoples of America and the poor in Europe. I do not know, however, of an upper limit: there is none. Once natural needs have been met, they give rise to others, artificial at first, 681 if you like, but which habit makes second nature in turn, and these are followed by others and still more, without assignable limits. 682
Thus at each step that man takes along the path of civilization his needs encompass a circle that is ever-wider, and the means of existence , that meeting point of the two great laws of population growth and population limits, shift position in order to rise. This is because man, while as much subject to regression as to perfection, rejects the former and aspires to the latter. His efforts tend to keep him at the social rank he has achieved and advance him further, while habit , which we have so aptly called second nature, operating in the same way as the valves in our arteries, 683 erects obstacles to any retrograde step. It is therefore very easy for the intelligent and moral action that he exerts on his own reproduction to feel the effects of, be steeped in, and be inspired by these efforts, and combine them with these progressive habits.
The consequences of mankind being constituted in this way are legion: we will limit ourselves to mentioning just a few. First of all, we fully agree with the economists that population and the means of existence balance each other, but since the second of these terms is infinitely changeable and varies with the degree of civilization and with habits, we cannot accept, when it comes to comparing nations and classes, that population is proportional to production , as J. B. Say says, 684 or to income as Mr. de Sismondi claims. 685 Next, with each higher level of culture requiring more foresight, moral and preventive checks ought to neutralize the effect of brutal and repressive ones, at each stage of improvement which is achieved in society as a whole or in some of its parts. From this it follows that any social progress contains the seed of fresh progress, vires acquirit eundo, 686 since well-being and foresight build upon each other in an indefinite upward succession. In the same way, when, for whatever reason, the human race follows a downward path, ill-feeling and lack of foresight are cause and effect reciprocally and the downward spiral would have no end if society were not in possession of this curative force, vis medicatrix, 687 that Providence has placed in all living things. Indeed, we should note that at each period of decline, the effect of population limits in its destructive mode becomes both more painful and easier to discern. First of all, it is just a question of a deterioration and a worsening of conditions; this is followed by poverty, famine, disruption, war, and death, all sorry but unerring methods of teaching. 688
We would like to be able to pause here to show how far the theory explains the facts and how far in turn the facts justify the theory. When, for a nation or a class, the means of existence have dropped to the threshold at which they become confused with the means of mere subsistence, as in China, Ireland, and the lowest classes in all countries, the slightest variations in population or food supplies result in death, and the facts in this respect confirm scientific inference. Famine has not been seen in Europe for many years, 689 and the elimination of this scourge has been attributed to a host of causes. There are probably several, but the most general cause is that, because of social progress, the means of existence have risen high above the means of subsistence. When years of scarcity occur, a great many forms of satisfaction may be sacrificed before we have to cut back on food itself. This is not true in China and Ireland: when people have nothing in the world other than a little rice or potatoes, what will they use to buy other foods if this rice and these potatoes are no longer there?
Finally, there is a third consequence of human perfectibility, which we have to point out here because it contradicts the distressing aspects of Malthus's doctrine. We have attributed the following formula to this economist: "Population tends to adjust to the level of the means of subsistence." We ought to have said that he went far beyond this and that his true formula, the one from which he drew such distressing conclusions is this: "Population tends to exceed the means of subsistence." 690 If Malthus, by saying this, had simply wanted to propose that the human power to propagate life is greater than the power to sustain it, there would be no grounds for our objection possible. But this is not what his thinking is: he claims that, taking into consideration absolute fertility on the one hand and on the other the limitation of population shown by its two modes, repressive and preventive, the result is still a tendency of the population to exceed the means of staying alive. This is true for all living things except the human race. Man is intelligent, and is able to make unlimited use of the preventive limits to population. He is perfectible, he aspires to perfection, and he repudiates the idea of going backwards; progress is his normal condition and progress implies an increasingly enlightened use of preventive limits to population: therefore the means of existence increase faster than the population . Not only does this result derive from the principle of perfectibility but it is also confirmed by the facts , since the circle of satisfactions expands everywhere. If it were true, as Malthus says, that for each increase in the means of existence there will be a greater increase in the size of the population, then the poverty of our race would be doomed to increase, and civilization would be found at the beginning of time and barbarism at its end. The contrary has occurred, and therefore the law of population limits has had sufficient power to keep the flood of increasing numbers of people below the increase in the number of products.
All this shows us how vast and difficult the question of population is. Doubtless, it is regrettable that an accurate formula has not been given for it, and naturally I regret even more that I cannot give it myself. But can it not be seen how far the subject rebels against the narrow limits of a dogmatic axiom? And is it not totally pointless to wish to express the ratios of essentially variable data by an inflexible equation? Let us recall these data.
1. The law of population growth . The absolute, theoretical, and physiological power which exists in the human race to propagate itself, leaving aside the difficulty of maintaining it. This first given, the only one susceptible to a degree of precision, is the only one for which accuracy is likely to be unnecessary, for what does it matter where the upper limit of population growth is in theory if it can never be achieved in the actual situation of man, which is to maintain life by the sweat of his brow?
2. There is therefore a limit to the law of population growth. What is this limit? The means of existence, it is said. But what are the means of existence? They are a collection of satisfactions which are difficult to define. They vary and consequently move the limit being sought, depending on the place, time, race, social rank, customs, public opinion, and habits.
3. Finally, in what does the force that restrains the population within this movable limit consist? It is broken down into two parts with regard to man: the part that represses and the part that prevents. Well, the effect of the first, which in itself is not accessible to any form of rigorous assessment is, in addition, totally subordinated to the effect of the second, which depends on the level of civilization that exists, the force of habit, the inclinations of religious and political institutions, the organization of property, of labor and the family, etc. etc. It is therefore not possible to establish an equation between the law of population growth and the law of population limits that enables us to deduce the actual figure for the population. In algebra, a and b represent given quantities that are numbered and measured and whose proportions can be set, but the means of existence, the moral empire of the will, and the inexorable effect of mortality are three sets of data relating to the problem of population, data that are inherently flexible and which, in addition, take on something of the astonishing flexibility of the subject they regulate, namely man, that being, according to Montaigne, who is so marvelously changeable and diverse. 691 It is therefore not surprising that, by wishing to give this equation an accuracy it does not possess, economists have divided minds more than they have united them, for there is not one of the terms of their formulae that does not lay itself open to a host of objections based on reason and fact.
Let us now enter the field of application; application, apart from helping to elucidate doctrine, is the true fruit of the tree of knowledge. Here we are obliged to sketch out in broad strokes the theory which we have put forward under the term "Competition," a subject which has a close connection to what we are saying here. 692
As we have said, labor is the sole object of exchange. In order to acquire a useful thing (unless nature has given it to us free of charge), effort is required to produce it or to compensate someone for the trouble they have taken on our behalf. Man creates absolutely nothing: he organizes, arranges, and moves things about for a purpose. He does none of these things without effort, and the result of the trouble he takes is his property. If he hands it over to somebody, he has the right to restitution in the form of a service judged to be comparable in value, following free negotiation. Such is the basis of value, remuneration, and exchange, a basis no less true for being simple. In what we refer to as products , are various amounts of natural utility and various amounts of artificial utility , 693 only the latter involves the use of labor and it alone is the subject of human transactions. Without contradicting in any way J. B. Say's famous and fruitful formula: "Products are exchanged for other products," 694 I see as more strictly scientific the following one: " Labor is exchanged for other labor ", or better still, " Services are exchanged for other services ". 695
By this it should not be understood that labor is exchanged for other labor on the basis of duration or intensity, or that the person who hands over one hour of effort or the one whose effort sends the needle of a dynamometer 696 to 100 degrees is always able to demand that a similar effort is made in his favor. Duration and intensity are two elements that influence the evaluation of work, 697 but they are not the only ones: there is work that is more or less repellent, dangerous, difficult, intelligent, farsighted, and even successful. Where free and voluntary transactions prevail, where property is totally assured, each person is master of his own efforts and consequently master of the right not to hand anything over unless it is at his price. There is a limit to what he will agree to do, the point at which it is more advantageous for him to keep his labor rather than exchange it, and also a limit to his claims, the point at which it is to the benefit of the other contracting party to refuse the barter. Workers seek, 698 and it is their right to do so, to take advantage of any circumstances which might increase the value of their efforts; one calls to his aid a natural resource; another an ingenious industrial process, or a tool which he has had the foresight to acquire. The truly harmonious 699 task of competition, that egalitarian force against which people rise up in our time in such a casual manner, is to prevent anyone having a monopoly of these circumstances and to keep within the bounds of justice all excessive claims.
In society there are as many social strata, 700 if I may put it this way, as there are grades in rates of pay. The least well paid of all types of work is the one that is closest to physical and mindless labor. This is an arrangement of providence which is simultaneously just, useful, and inevitable. The ordinary manual laborer rapidly reaches this limit of his claims of which I have just spoken, since there is nobody who cannot carry out the mechanical type of work he offers, and he himself is pushed by the limit of what he will agree to do because he is incapable of taking on the intelligent effort which this demands. Duration and intensity , which are properties of a material nature, are really the only determinants of pay for this type of physical labor and this is why he is generally paid by the day . All the progress made by industry is encapsulated in this: the replacement of a certain sum of artificial utility in each product that consequently has to be paid for, by the same amount of natural utility that is free of charge for this reason. It follows from this that if there is one class in society that has the most interest in free competition, it is above all the working class. What would be its fate if the forces of nature, industrial processes, and the tools of production were not constantly obliged by competition to give the results of their cooperation to everyone free of charge ? It is not the simple day laborer who knows how to take advantage of heat, gravity, and elasticity, or who invents the processes and owns the tools through which these forces are harnessed. When these discoveries are first made, the work of inventors, people of the highest intelligence, is very highly paid; in other words, it is the equivalent of a vast amount of brute, physical labor, or to put it another way, its product is expensive . But competition intervenes, the product decreases in price, the cooperation of the services of nature no longer benefits the producer but the consumer, and the labor that uses these services comes closer in terms of pay to the work whose pay is calculated by its duration. In this way, the common fund of free wealth increases constantly. Products of all sorts tend over time to become more and more like our supply of water, air, and light, which are offered to us free of charge. Therefore the level of the human race is drawn upward and becomes more equal and therefore, if we leave aside the law of population, the lowest class in society is the one whose improvement is the fastest. However, we did say this is so if we leave aside the law of population, which brings us back to our subject.
Let us imagine a basin in which a channel that is growing ever wider brings in water that is ever more abundant. If you take account only of this fact, the level must rise constantly, but if the walls of the basin are mobile and can move backward and forward, it is clear that the height of the water will depend on the way this new situation works in conjunction with the first. The water level will decrease, however rapidly the volume of the water filling the basin increases, if the capacity of the basin increases faster still; it will rise if the perimeter of the reservoir expands proportionally only very slowly, even more if it remains static and, above all, if it gets smaller.
This is the image of the social stratum whose lot we are seeking to ascertain, a group, it has to be said, which constitutes the majority of the human race. Its remuneration, facilitating the purchase of the objects required to satisfy its needs, and to maintain life, is the water entering through the expandable channel. The mobility of the walls of the basin represents the movement of population. As we have shown in our article on "Competition", 701 it is certain that the means of existence reach this population in an ever growing progression; but it is also certain that their numbers can be enlarged by following an even faster progression. In this class, therefore, life will be more or less happy and more or less decent depending on whether the moral, intelligent, and preventive functions of the law of population limits will circumscribe to a greater or lesser degree the absolute principle of population growth. There is a limit to the increase in numbers of the working class, and that is when the growing funds for their pay become nevertheless insufficient to keep them alive. There is no improvement possible for them in this situation, because of the two elements that constitute this improvement, one, namely wealth, is constantly growing, while the other, population, is subject to their will.
All that we have just said about the lowest social stratum, the one that does the heaviest physical work, also applies to all the other social strata lying one above the other, and classified among themselves in inverse order, so to speak, to their respective coarseness and unskilled character. Taking each class by itself, all are subject to the same general laws. In all there is conflict between the physiological power of population growth and the moral power of limiting that growth. The only thing that differs from one class to the next is the point at which these two forces meet, that is the total number of people which their income will support and the habits and customs which limit this number. This limit between the two laws is what we call the means of existence.
But if we consider the various social strata, not in isolation but in their mutual relationships, I think that we can glimpse the influence of two forces pulling in opposite directions and this is certainly where the explanation of the actual situation of the human race lies. We have established how all economic phenomena, and in particular the law of competition, tend to lead to the equality of conditions; that does not seem theoretically deniable. Since no natural advantage, no ingenious industrial process, and none of the tools by which these processes are implemented, can permanently be limited to producers as producers; since , by an unstoppable gift of Providence, the results tend to become part of the common, free, and consequently equal heritage of all people, it is clear that the poorest class is the one that gains the greatest relative benefit from the admirable operation of the laws of social economy. 702 Just as poor people are as liberally treated as the rich with regard to the air we breathe, so they likewise become equal to the rich with regard to that part of the price of things that progress is constantly eliminating. There is therefore in the depths of the human race a prodigious tendency toward equality . I am not speaking here of a tendency at the level of aspiration but of one that is achieved. Nevertheless, equality is not achieved, or else it is achieved so slowly that when you compare a society over a period two centuries you scarcely notice its progress. It is actually so hard to discern that many fine minds deny it, although certainly mistakenly. What is the cause of this delay in merging the classes at a level that is common and constantly rising?
I do not think that we need to seek it anywhere else than in the varying degrees of the foresight present in each social stratum with regard to population. The law of population limits, as we have said, is at the disposal of men with regard to its moral and preventive aspects. Man, as we have also said, is perfectible, and as he advances he uses this law more intelligently. It is therefore natural that as they become more enlightened, these classes know how to subject themselves to more effective efforts and impose on themselves sacrifices that are better understood, in order to maintain their respective population at the level of the means of existence suited to them.
If statistics were sufficiently advanced, they would probably convert this theoretical reasoning into certainty by showing that marriages occur later in the higher levels than in the lower levels of society. Well, if this is so, it is easy to understand why, in the great market 703 to which all the classes bring their respective services and in which labor of a variety of kinds is exchanged, manual labor is in most abundant supply compared to intellectual labor, which explains the persistence of this inequality of situations that so many powerful causes of a different nature unceasingly tend to erase. 704
The theory that we have just set out briefly leads to the practical result that the best forms of philanthropy and the best social institutions are those that, when they operate in line with the Providential plan as revealed to us by the social harmonies, 705 that is to say, equality in progress, 706 spread knowledge, reason, morality, and foresight throughout all of the social strata of humanity, especially the lowest.
We mention institutions because in fact foresight results as much from the requirements of one's situation as from purely intellectual reflection. There is a particular organization of property, or to put it better, a particular way of using property, which encourages more than anything else what economists call knowledge of the market, 707 and consequently planning for the future? It seems certain for example that sharecropping is much more efficient than tenant farming 708 as a preventive check to excessive increases in population among the lower classes. A family of sharecroppers is much more capable than a family of day laborers of seeing the disadvantages of early marriage and uncontrolled increases in their numbers.
We also mention the forms of philanthropy. Indeed, alms may do some good at a specific time and place, but they can have only a very restricted influence on the well-being of the working class as a whole, if in fact they are not disastrous, for they do not develop, and perhaps even paralyze, the virtue that is most likely to improve the condition of this class, which is foresight . Disseminating sound ideas, and above all, habits marked by the spirit of a certain dignity, is the greatest and longest lasting good that can be done for the lower classes.
We cannot repeat too often that the means of existence are not a fixed quantity; they depend on customs, public opinion, and habits . 709 On all the rungs of the social ladder the same repugnance is felt at dropping down from the social position to which one is accustomed, as others may feel about being on the lowest rung of all. Perhaps this suffering may even be greater in the aristocrat whose noble offspring become lost among the bourgeoisie, than in the bourgeois whose sons become day-laborers, or in the day-labourers whose children are reduced to begging. The habit of enjoying a certain standard of living and having some dignity in life is thus the strongest incentive to the practice of foresight, and if ever the working class raises itself up in order to enjoy certain pleasures, it will not wish to fall back down and have to relinquish them. 710 In opposition to the actions of the upper classes to force it to do this, the working class will soon resort to an infallible remedy, namely the law of preventive limitation. It will then have to be given a wage which is in harmony with its new habits, without which it will cease increasing in numbers. This is why I regard as one of the finest demonstrations of philanthropy the decision that appears to have been taken in England by a great many landowners and owners of factories to tear down mud and thatch cottages and replace them with brick-built houses, which are clean, spacious, well-lit, well ventilated, and properly furnished. If this measure were to be generally followed, it would raise the level of the working class, convert into genuine needs what is currently a relative luxury, and would raise this limit which we call the means of existence and consequently the rate of pay at its lower level. Why not? The lowest class in civilized nations is at a level well above that of the lowest class in primitive societies. It has raised itself up; why should it not continue to do so?
However we should be under no illusions; progress is necessarily extremely slow, because it has to be general to some degree. We might imagine it happening rapidly in one part of the world if nations had no influence on one another, but this is not so. There is a great law of solidarity that governs the human race, both with regard to progress and to decline. If, for example, in England the situation of the workers improved considerably as a result of a general increase in wages, French industry would have more opportunity of getting the better of its rival and, through its expansion, would slow the movement toward progress that had arisen on the other side of the Channel. It seems that Providence has not wanted one nation to raise itself over others beyond a certain limit. Thus, both in the larger picture and in the detail of human society, we always find that admirable and inflexible forces tend in the end to confer individual or collective benefits on the masses and to harness all instances of temporary superiority and bring them back to a shared level that, like the ocean at high tide, is constantly spreading out evenly and constantly rising.
To conclude, if we assume as given that perfectibility is the distinctive characteristic of man, and that the effects of competition and the law of population limits are also known, the fate of the human race solely from the point of view of its destiny on earth, seems to us to be able to be summarized in this way. There will be : 1. an improvement of all social strata simultaneously, or of the general level of the human race; 2. a constant convergence of all social levels and the successive elimination of the distance separating the classes up to a limit established by absolute justice; 3. the relative reduction in terms of the numbers of the lowest and highest social strata and an expansion of the middle strata. People will say that these laws are bound to bring about absolute equality. No more than the eternal convergence of a straight line and an asymptote is bound to lead to their intersecting. 711
646 See the glossary entry on "Disturbing Factors."
647 See the Editor's Introduction above, pp. 000 for details. Also, T.23 (1845.01.15) "Letter from an Economist to M. de Lamartine. On the occasion of his article entitled: The Right to Work " (Un économiste à M. de Lamartine. A l'occasion de son écrit intitulé: Du Droit au travail ), JDE , February 1845, T. 10, no. 39, pp. 209-223. [OC1.9, pp. 406-28] [CW4].
648 His sketches were included as Chapter XVIII "Disturbing factors" in EH2.
649 See the glossary entry on "Service for Service."
650 Although Bastiat says he thinks Say's terminology is the preferred one he is not consistent in his use of these terms at this early stage in his thinking about population. He is more consistent in the EH version and we have indicated in this JDE version where we think Bastiat gets muddled. Say did not have a lot to say about Malthus' theory of population in the early editions of the Traité . He said much more about it in his Cours complet which was published in 1828-29, especially in vol. 4, Part VI, Chap. II "Des moyens d'existence des hommes," pp. 320-335.
651 Say, Cours complet , vol. 2, 1840 Guillaumin edition, Part V, Chap. X "Des profits de la classe ouvrière en particulier," p. 48.
652 As early as July 1844 in the conclusion to his Report T.17 "On the Allocation of the Land Tax in the Department of Les Landes" Bastiat quotes these authors and summarizes their views along the same lines. See, J.B. Say, "Des moyens d'existence des hommes" in Cours complet d'économie politique (1840 edition), vol. 2, part VI, chap. II, p. 128; and Sismondi, "Second essai. Du revenu social," in Études sur l'économie politique (1837), vol. 1, p. 128. See above, pp. 000.
653 Malthus's terminology was "preventive check" and "positive check" which was translated by Prevot in the early French editions of his works as "l'obstacle privatif" and "l'obstacle destructif." In a note to the 1845 Guillaumin edition the economist Joseph Garnier noted his unhappiness with these translations, believing that "l'obstacle préventif" and "l'obstacle répressif" were better. In this essay, Bastiat uses the terms preferred by Garnier. We have retained Malthus' original terms "preventive check" and "positive check" here, but have translated "l'obstacle" as "obstacle" or "check" according to the context. See, Malthus, Essai (1845), p. 12.
654 Bastiat is technically correct as Malthus states "In this supposition no limits whatever are placed to the produce of the earth," but he finishes the sentence with "yet still the power of population being in every period so much superior, the increase of the human species can only be kept down to the level of the means of subsistence by the constant operation of the strong law of necessity, acting as a check upon the greater power." See, An Essay on the Principle of Population (5th edition, 1817), vol. 1, Book I, Chap. 1 "Statement of the Subject. Ratios of the Increase of Population and Food," pp. 15-16.
655 The following phrase was not in the E version but inserted into the JDE version.
656 The phrase "de la propagation" (to the reproduction) was added to the JDE version.
657 In the E version he gave the following longer progression 2 — 4 — 16 — 64 —256 —1,024— 4,096 — 16,384, etc.
658 Again, Bastiat used a longer progression in the E version: 1 — 3 —6 — 18 — 54 — 162 — 486- 1,358, etc. And in both cases he got the final figure wrong.
659 Leonhard Euler (1707-1783) was a Swiss mathematician, physicist, and astronomer who made important contributions to the theory of calculus and number theory. Bastiat might well have used his textbook on algebra when he was a schoolboy. Léonard Euler, Elémens d'algèbre, traduits de l'allemand. Nouvelle édition, révue et augmenté de notes, par J.G. Garnier (Paris: Courcier-Maire, 1807).
660 Numbers 1:44 where the number given was 603,550.
661 The following sentences were added to the JDE version and kept in the EH version.
662 Bastiat cites the "Bureau des Longitudes" which was an astronomical institute. He must have had in mind another statistical organisation of the French government which handled census and population data.
663 Bastiat does not say where he gets this information. Moreau de Jonnès wrote a great deal about agricultural and population statistics, including data about periods of doubling but we could not find the same figures Bastiat uses here. See "Recherches statistiques sur l'accroissement de la population," Revue encyclopédique (1832), p. 4; "Population de la France comparée à celle des autres états de l'Europe", JDE , 1842; Éléments de statistique (1847), pp. 225-27, 311-12, 317, 336. Interestingly, Jonnès criticises Malthus's theory of the doubling of population as "purely hypothetical" and that it applied better to primitive societies than to more advanced ones, in a manner which is very similar to Bastiat's. See, Éléments de statistique , pp. 227-28.
664 Bastiat called it "la loi de limitation" (the law of limitation) which is the expression used in the FEE and Stirling translations of this essay which appeared in EH. We have made it more specific by translating it as "the law of population limits".
665 This is another instance where Bastiat got his terminology mixed up. According to his theory he should have used the term "means of subsistence" not "means of existence." This shows he was still trying to get his theory straight.
666 Félicité de Lamennais (1782-1854) was a Catholic priest, deputy, and journalist. These quotations were taken from Lamennais' Le Livre du peuple (1837) republished in Oeuvres complètes de F. De Lamennais: revues et mises en ordre par l'auteur (Bruxelles: Hauman & Company, 1839). Vol. 2, pp. 631, 636, 642.
667 Bastiat no doubt has in mind the infamous passage from Malthus' Principle of Population which so incensed his critics but only appeared in the 2nd revised edition of 1803. It was removed in later editions. The passage comes from Book IV, Chapter VI "Effects of the Knowledge of the Principal Cause of Poverty On Civil Liberty": "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." Thomas Robert Malthus, An essay on the principle of population: or, a view of its past and present effects on human happiness (London: J. Johnson, 1803), p. 531.
668 Given his previous distinction between "means of subsistance" and "means of existence" to be consistent Bastiat should have used the expression "means of subsistance" here. He continues to use "moyens d'existence" in EH2 for some reason.
669 The word "second" is added in the JDE version.
670 Malthus used the expression "moral restraint" which Prevot translated as "contrainte morale". The English term implies that the "restraint" comes from an act of will within the individual. The French term is ambiguous as "contrainte" has this meaning as well but also can mean "coercion" or the use of force which comes from outside the individual by another person. On the problem of translating the English expression "moral restraint" see the Translators' note in the Guillaumin edition 1845, pp. 13-14.
671 This is not Malthus' own expression but a close paraphrase by the original French translators the Prevot brothers. Malthus used the phrase "the only line of conduct approved by nature, reason and religion, (is) abstinence from marriage till we can support our children, and chastity till that period arrives." Malthus, Essay , 6th edition (London: John Murray, 1826), vol. 2, p. 305.
672 The following sentence was not in the E version but was inserted into the JDE version.
673 By "spiritualist school" Bastiat might have in might Catholic thinkers like Lamennais who opposed "family planning."
674 The phrase "over the management of his family" was not in the E version but was inserted into the JDE version.
675 The phrase "and that this same priest rejects as such" was not in the E version but was inserted into the JDE version.
676 The following sentence was not in the E version but added to the JDE version.
677 This sentence was cut from the EH version.
678 In the EH version Bastiat inserts here an important paragraph in which he criticises Malthus: "It is because he did not take sufficient account of the full power of this principle of progress that Malthus was led to the distressing consequences which have caused general aversion. Since he saw preventive checks only as some kind of asceticism, which, it has to be said, gains little acceptance, he could not ascribe a great deal of force to it. Therefore, in his view, in general it had to be the repressive check that plays the key role, in other words, vice, poverty, war, crime, etc. In my view, this is an error. We will see that the action of the limiting force on population growth offers mankind not just the practice of chastity, an act of self-denial, but also and especially a condition of well-being, an instinctive impulse which protects them and their families from decline."
679 Again Bastiat to be consistent with his previous use of the terms should have used the expression "means of subsistance" here and not "means of existence." He corrects this in EH.
680 In EH Bastiat adds the following important sentences to the paragraph: "I will note that for this expression, the means of subsistence , that was universally accepted in the past, J. B. Say has substituted another that is much more accurate, the means of existence . At first sight, it appears that subsistence is the only thing involved in the question. That is not so, man does not live by bread alone , and a study of the facts clearly shows that the population ceases to grow or decreases when all of the means of existence, including clothing, housing, and the other things that climate or even habit have made necessary, disappear." Thus, Bastiat had decided on this usage by late 1849 but he was still grappling with it here, somewhat inconsistently at times.
681 Bastiat liked to contrast "natural" and "artificial" (mostly "artificiel" and less often "factice"), as in natural vs. artificial organisation, social orders, monopolies, utility, solidarity, interests, and so on. By "natural" he meant something that was a result of human nature, the operation of natural laws, and voluntarily undertaken. By "artificial" he meant something that went against human nature, and was created by some individuals and imposed on others by force. Here he uses the word "factice" (artificial, man-made) in the sense, not of being imposed by violence but in the sense of an additional need being created after one's basic, life-sustaining needs have been satisfied. In the FEE translation the word "man-made" is used.
682 Good quote on unlimited wants/needs of man. Use above???
683 The phrase "operating in the same way as the valves in our arteries" was not in the E version but was added to the JDE version .
684 The following footnote by Bastiat was not in E but added to JDE version: "It is fair to say that J. B. Say noted that the means of existence were a variable quantity, from which it follows that his formula, as he himself states, has no scientific rigor." In the EH version the section "from which it follows that his formula, as he himself states, has no scientific rigor." was deleted.
685 See above, pp. 000.
686 "It gathers strength as it goes" from Virgil, The Aeneid , IV, 175). Williams' translation: "In movement she grows mighty" from Vergil, Aeneid . Theodore C. Williams. trans. Boston. Houghton Mifflin Co. 1910. Dryden: "ev'ry moment brings New vigor."
687 "Vis medicatrix naturae", "the healing power of nature." Bastiat uses here the expression "la force curative" (the curative or healing force) which is very similar to his notion of "les forces réparatrices" (repairing or restorative forces) which uses elsewhere. See the glossary entry on "Disturbing and Restorative Forces."
688 The phrase "all sorry but unerring methods of teaching" was not in the E version but added to the JDE version.
689 When Bastiat wrote this in 1846 the famine in Ireland was underway and lasted until 1852. Here he may not be including Ireland as technically part of Europe. A crop failure would occur in France between 1846-47 but it did not lead to famine, although the rapidly increasing price of bread brought considerable hardship to many.
690 Malthus published responses to his critics with a pamphlet Additions to the Fourth and Former Editions of An Essay (1817) which he also included as an Appendix in the 6th edition of 1826. In it he explicitly addressed the idea put forward by Weyland and Grahame that there was a "natural tendency" for populations to exceed the means of subsistence. Malthus described this idea as an "absurdity, inconsistency, and unfounded assertion" (p. 477) but admitted that he may have mislead his critics. As he noted, "It is probable, that having found the bow bent too much one way, I was induced to bend it too much the other, in order to make it straight" (p. 497). In what might seem a too subtle distinction he continued to claim that there was a difference between a population "exceeding" its means of subsistence and a population growing faster than its means of subsistence which immediately brought into play the two different kinds of "checks" which brought the size of the population back into equilibrium with the means of subsistence.
691 "Certes c'est un subiect merveilleusement vain, divers et ondoyant, que l'homme : il est malaysé d'y fonder iugement constant et uniforme" (Without a doubt, there is (no) subject (more) marvellously useless/pointless, varied/diverse, and changeable than man; it is difficult to form a consistent/unchanging and uniform/unchanging judgement about him.) in Essais de Michel de Montaigne. Nouvelle édition. Tome premier. (Paris: Lebigre frères, 1833), Book I, Chap. 1, "Par divers moyens on arrive à pareille fin," p. 4.
692 This sentence was cut from the EH version. It referred to the companion article which appeared with this one on Population in the Encyclopédie and then in the JDE. See the article of "Competition," above, pp. 000.
693 In the FEE translation of EH the term "artificial utility" is translated as "man-made utility.". Bastiat used the pairing of "natural" versus "artificial" which he uses here as well as with his distinction between"natural needs" (besoins naturels) and "artificial needs" (besoins factices). We have preserved that pairing here as well. See footnote above, pp. 000.
694 This is what later became known as "Say's Law." In the first edition of the Traité (1803) Say spoke of "pay(er) des produits avec des produits" (paying for products with products), (vol. 1, pp. 153-54); in the 4th edition of 1819 he talks not just of products but more generally of "des services productifs" (productive services) which "nous pouvons les échanger contre d'autres produits" (which we can exchange for other products) so that "les échanges que nous faisons de deux produits, ne sont en effet que l'échange des services productifs dont ces deux produits sont le résultat" (the exchanges we make with two products are in effect only the exchange of productive services of which the two products are the result) (vol. 2, p. 7.).
695 The idea that exchange could be understood as the "mutual exchange of services" (or one service for another) became central to Bastiat's understanding of the market as this essay was being written. See the glossary entry "Service for Service."
696 A dynamometer is a tool for measuring force, torque, or power exerted by an engine, motor, or other rotating device.
697 The phrase Bastiat uses here, "l'appréciation du travail" (the evaluation of labor), is important in showing how he was moving away from the classical notion of value and towards the subjectivist notion of the Austrian school. What makes labor valuable is not something intrinsic to the act of labouring but how it is subjectively perceived or appreciated by the consumer.
698 This and the next sentence were in both E and JDE versions but were cut in the EH.
699 See the glossary entry on "Harmony and Disharmony."
700 Bastiat uses the word "couches" (bed, layer) which can mean a bed (literally for sleeping on) or a bed or layer of sediment in rock formations. We have translated it as "social strata" which was also used in the FEE translation.
701 See above, pp. 000.
702 See the glossary entry on "Social Economy."
703 Bastiat uses the phrase "le grand marché" (the great market, or the great market place of society (as FEE translated it)) only in this essay and in a letter to Paulton in July 1845. See, [CW1.45] [OC7] 45. Paris, 29 juillet 1845. A M. Paulton. Elsewhere he uses a similar expression "un vaste bazaar" (the world as a huge bazaar) in his Second Speech in Paris for the Free Trade Association (26 Sept. 1846) in CW6 (forthcoming), and "ce bazar d'échange" (this trading bazaar) in an unpublished sketch he wrote in 1849. See above, T.316 "The Mutuality of Services" (c. 1849). Used by Thiers as well??
704 This is where the E version ends. What follows was a new ending of 894 words which was added to the JDE version and was also used in the EH.
705 See glossary entry on "Harmony and Disharmony."
706 Bastiat uses the phrase "l'égalité dans le progrès" which might also be translated as "equal progress for all".
707 Here Bastiat introduces a phrase with very strong Austrian overtones, namely "la connaissance du marché" (knowledge of the market) and how it can lead to "la prévoyance", which we have before this example translated as "foresight" but which might be better translated here as "planning for the future."
708 In the EH version Bastiat inserted here the following footnote: "which requires the use of the day laborer class." See also his other writings on "sharecropping" such as T.47 (1846.02.15) "Thoughts on Sharecropping" (Considérations sur le métayage), JDE , T.13, no. 51, Feb. 1846, pp. 225-239. Above, pp. 000.
709 Good quote on Means of Existence not fixed quantity. ???
710 The following clause was added here in the EH version: "even if it has to resort to the infallible course of preventive limitation in order to maintain its position and retain the wages which are in harmony with its new habits." This sentence replaced the following two sentences which were cut from the EH version.
711 Here the text ended in the JDE version with Frédéric Bastiat's name attached beneath it suggesting that he thought it was complete. In the EH version (2nd edition of 1851) it ended with a line of dots to indicate that the editors thought it was not finished. What followed was a lengthy note by one of the editors, Roger Fontenay, which was 10.5 pages long which attempted to explain Bastiat's theory of population in more detail. In the first edition of Bastiat's Oeuvres complètes (1855), vol. 6, this was removed leaving only a page of an extract the editors had found among Bastiat's papers. We provide a translation of this extract below, pp. 000.
T.82 (1846.10.15) "The minutes from a meeting of the Association pour la Liberté des échanges" (JDE, Oct. 1846)↩
SourceT.82 (1846.10.15) "The minutes from a meeting of the Association pour la Liberté des échanges" (Deuxième réunion à Paris (le 29 septembre 1846)). Transcription of Bastiat's remarks, JDE 15 Oct. 1846, T. XV, pp. 288-292. [DMH] [??]
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T.83 (1846.10.22) "To the Merchants of Le Havre (1)" (MB, Oct. 1846)↩
SourceT.83 (1846.10.22) "To the Merchants of Le Havre (1)" (Aux négociants du Havre (1)), Mémorial bordelais, 22 Oct. 1846. [OC7.29, pp. 131-34.] [CW6]
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T.84 (1846.10.23) "To the Merchants of Le Havre (2)" (MB, Oct. 1846)↩
SourceT.84 (1846.10.23) "To the Merchants of Le Havre (2)" (Aux négociants du Havre (2)), Mémorial bordelais, 23 Oct. 1846. [OC7.30, pp. 134-38.] [CW6]
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T.85 (1846.10.25) "To the Merchants of Le Havre (3)" (MB, Oct. 1846)↩
SourceT.85 (1846.10.25) "To the Merchants of Le Havre (3)" (Aux négociants du Havre (3)), Mémorial bordelais, 25 Oct. 1846 OC7.31, pp. 138-43 [CW6]
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T.86 (1846.11.10) "To the Editors of Le National (1)" (CF, Nov. 1846)↩
SourceT.86 (1846.11.10) "To the Editors of Le National (1)" (Aux rédacteurs du National (1)), Le Courrier français, 10 Nov. 1846. [OC7.34, pp. 152-59.] [CW6]
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T.87 (1846.11.11) "To the Editors of Le National (2)" (CF, Nov. 1846)↩
SourceT.87 (1846.11.11) "To the Editors of Le National (2)" (Aux rédacteurs du National (2)), Le Courrier français, 11 Nov. 1846. [OC7.35, pp. 159-66.] [CW6]
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T.88 (1846.12.06) "Post Hoc, Ergo Propter Hoc" (LE, Dec. 1846)↩
SourceT.88 (1846.12.06) "Post Hoc, Ergo Propter Hoc" (Post hoc, ergo propter hoc), Le Libre-Échange, 6 Dec. 1846, no. 2, p. 11; also ES2.8. [OC4, pp. 187-89.] [CW3 - ES2.8]
VIII. Post Hoc, Ergo Propter Hoc 285 286 [6 December 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "Post hoc, ergo propter hoc" (Post Hoc, Ergo Propter Hoc) [Le Libre-Échange, 6 December 1846].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 187-89.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
The most common and most erroneous lines of reasoning.
Genuine suffering is appearing in England.
This fact follows two others:
1. The reform of tariffs;287
2. The loss of two successive harvests.288
To which of these last two circumstances should the first be attributed?
Protectionists do not fail to cry: "It is this cursed freedom that is doing all the harm. It promised us milk and honey; we welcomed it, and see how the factories are closing and the people are suffering: Cum hoc, ergo propter hoc.289
Commercial freedom distributes the fruit provided by Providence for the work of man in the most uniform and equitable way possible. If this fruit is removed in part by a plague, it no less governs the proper distribution of what remains. People are doubtless less well provided for, but should freedom be blamed for this or the plague?
Freedom acts on the same principle as insurance. When an accident happens, it distributes over a great number of people, over many years damage that, without insurance, would fall on one nation and one time. Well, has anyone ever thought of saying that fire has ceased to be a plague since the advent of insurance?
In 1842, 1843 and 1844, taxes began to be reduced in England.290 At the same time, harvests there were plentiful, and we came to think that these two circumstances contributed to the unheard of prosperity observed in this country during this period.
In 1845 there was a bad harvest; in 1846, it was worse still.
The price of food increased; the people spent their savings to feed themselves and restricted their other expenditure. Clothing was in less demand, the factories less busy and pay showed a tendency to decrease. Happily, in this same year, as restrictive barriers had once again been lowered, an enormous mass of foodstuffs was able to come on the English market. Without this circumstance, it is almost certain that a terrible revolution would have spilt blood in Great Britain.
And yet people come forward to accuse freedom of the disasters that it prevents and puts right, at least in part!
A poor leper lived in solitude. Whatever he touched, nobody else wanted to touch. Reduced to meeting his own needs, he led a miserable existence in this world. A great doctor cured him. Here now, we have our hermit in full possession of freedom to trade. What fine prospects opened out before him! He delighted in calculating the fine share that, thanks to his relationships with other men, he would be able to earn through his strong arms. He then broke both of them. Alas! His fate was even more terrible. The journalists in this country who witnessed his misery, said: "See what the freedom to trade has done to him! Truly, he was less to be pitied when he lived alone". "What!", exclaimed the doctor, "Do you not take any account of his two broken arms? Have they had no part to play in his sad fate? His misfortune is to have lost his arms, and not to have been cured of leprosy. He would be much more to be pitied if he were armless and a leper to crown it all."
Post hoc, ergo propter hoc: be suspicious of this sophism.
Endnotes285 (Paillottet's note) Taken from the issue of Le Libre-Echange dated 6th December 1846
286 The Latin phrase "post hoc, ergo propter hoc" (after this, therefore because of this) is a kind of logical fallacy relating to causation, by asserting that because some event A happened after event B, then event B caused event A to happen.
287 Richard Cobden and other free trade reformers in the Anti-Corn League were successful in June 1846 in getting the British Parliament to repeal the protectionist Corn laws. This repeal was to take effect gradually over a period of 3 years. See the glossary entries on "Cobden" and "Anti-Corn Law League," and "The Corn Laws."
288 This a reference to the failure of the potato crop in Ireland, known as the Great Irish Famine of 1845-1852. This was caused by a disease which affected the potato crop (potato blight) and resulted in the deaths of 1 to 1.5 million people from famine and the emigration of a further million people out of a population of around 7 million. In addition to the failure of the potato crop there were other serious problems which were of concern, including the situation of tenant farmers unable to pay their rents, the continued export of food from Ireland during the famine, and restrictions on the free import of food from elsewhere in Europe. The latter issue was taken up by members of the Anti-Corn Law League in England when campaigning for the abolition of tariff restrictions on grain, which they achieved in 1846.
289 The Latin phrase "cum hoc, ergo propter hoc" (with this, therefore because of this) is a kind of logical fallacy relating to causation, by asserting that because some event A happened at the same time as event B, then event B caused event A to happen.
290 Sir Robert Peel (1788-1850) was the British Prime Minister in 1841 and introduced a series of economic reforms (he cut the rate of tariff on hundreds of items after 1842) which led to the abolition of the protectionist Corn Laws in May 1846. See the glossary entries on "Peel" and "Anti-Corn Law League," and "The Corn Laws."
T.89 (1846.12.13) "On General Principles" (LE, Dec. 1846)↩
SourceT.89 (1846.12.13) "On General Principles" (Sur les généralités), Le Libre-Échange, 13 Dec. 1846, no. 3, pp. 18-19. [OC2.4, pp. 12-15.] [CW6]
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T.90 (1846.12.13) "The Right Hand and the Left Hand" (LE, Dec. 1846)↩
SourceT.90 (1846.12.13) "The Right Hand and the Left Hand" (La main droite et la main gauche), Le Libre-Échange, 13 Dec. 1846, no. 3, p. 24; also ES2.16. [OC4, pp. 258-65.] [CW3 - ES2.16]
XVI. The Right Hand and the Left Hand441 [13 December 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "La main droite et la main gauche" (The Right Hand and the Left Hand) [Le Libre-Échange, 13 December 1846].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 258-65.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
(A report to the King)
Sire,
When we see these men from Le Libre-Échange442 boldly spreading their doctrine and claiming that the right to buy and sell is included in the right to property (a piece of insolence that Mr. Billault443 has pointed out in true advocate style), we may be allowed to feel serious anxiety over the fate of our nation's production, for what will French citizens do with their hands and minds when they are free?
The government that you have honored with your confidence has had to devote its attention to a situation rendered serious in precisely this way, and in its wisdom seek a form of protection that may be substituted for the one which appears compromised. It suggests that YOU FORBID YOUR FAITHFUL SUBJECTS TO USE THEIR RIGHT HAND.
Sire, do not insult us by thinking that we have lightly adopted a measure that, at first sight, may seem strange. A detailed study of protectionism has revealed to us the syllogism on which the whole thing is based:
The more you work, the richer you are;
The more difficulties you have to overcome, the more you work;
Therefore, the more difficulties you have to overcome, the richer you are.
What is protection in fact, if not the ingenious application of this formal reasoning so closely woven that it will stand up to the subtlety of Mr. Billault himself?
Let us personify the country. Let us consider it a collective being with thirty million mouths, and as a natural consequence, sixty million arms. Here it is, having made a clock that it hopes to barter in Belgium for ten quintal of iron. However, we say to it: "Make the iron yourself." "I cannot", it replies, "that will take me too long; I would not make five quintal in the time I take to make a clock." "Utopian!"444 we reply, "It is for that very reason that we forbid you to make a clock and order you to make iron. Do you not see that we are creating work for you?"
Sire, it will not have escaped your sagacity that this is absolutely as though we were saying to the country: "Work with your left hand and not with your right."
Creating obstacles in order to give labor the opportunity of increasing, that is the principle of restriction that is dying. It is also the principle of restriction that is about to be born. Sire, making regulations like this is not to innovate, it is to continue down the same path.
As for the effectiveness of the measure, this cannot be denied. It is difficult, much more difficult than you think to do with your left hand what you are accustomed to doing with your right. You would be convinced of this, Sire, if you deigned to try out our system on an act familiar to you such as, for example, that of shuffling cards.445 We can therefore pride ourselves on creating an unlimited vista for work.
When workers of all sorts are reduced to using their left hands, let us imagine, Sire, the immense number that would be needed to meet current consumption, taking it to be constant, which is what we always do when we compare opposing systems of production with each other. Such a prodigious demand for labor cannot fail to cause a considerable rise in pay, and poverty would disappear from the country as if by magic.
Sire, your fatherly heart would rejoice to think that the benefits of the decree would extend also to this interesting part of the great family whose fate elicits your total solicitude. What is the destiny of women in France? The sex that is the more fearless and more strengthened by hard work, drives them heartlessly from all forms of career.
In former times they had the resources of the lottery offices to turn to. These have been closed down through a pitiless philanthropy and on what pretext? "To save the money of the poor", this philanthropy said. Alas! Has the poor man ever obtained such pleasant and innocent enjoyment from a coin as those which Fortune's mysterious urn held for him? Cut off as he was from all the pleasures of life, when he placed a day's pay on a clear line of four numbers446 once a fortnight, how many hours of delicious enjoyment did he not bring into the bosom of his family! Hope was ever present in the domestic hearth. The attic was filled with fancies: wives promised themselves that they would outshine their neighbors with their dresses, sons saw themselves as drum-majors and daughters imagined themselves walking down the aisle to the altar on the arms of their fiancés.
There is indeed something to be said about having a beautiful dream!447
Oh! The lottery! It was the poetry of the poor and we have let it escape!
With the lottery gone,448 what means have we to provide for those in our care? Tobacco449 and the post.450
We will deal with tobacco all in good time; it is making progress, thanks to Heaven and the fine habits that many august exemplars have cleverly been able to inculcate into our elegant young people.
But the post! We will say nothing about it, as it will be the subject of a special report.
Therefore, apart from tobacco, what will be left to your subjects? Nothing but embroidery, knitting and sewing, sorry resources that a barbaric science, the science of machinery, is increasingly restricting.
But as soon as your decree has appeared, as soon as right hands have been cut off or tied, everything will change visibly. Twenty or thirty times more embroiderers, laundresses and ironers, linen maids, dressmakers and shirt makers will not be enough to meet demand (honni soit qui mal y pense)451 in the kingdom; always assuming that demand is constant, in accordance with our method of reasoning.
It is true that this supposition may be contested by cold theoreticians, since dresses will be more expensive, as will shirts. They say the same about the iron that France extracts from its mines, compared to the grapes it could harvest from our hillsides. This argument is thus no more acceptable against left-handedness452 than against protection, for this very expensiveness is the result and the expression of the additional effort and work that is exactly the basis on which, in both cases, we claim to found the prosperity of the working class.
Yes, we paint for ourselves a touching picture of the prosperity of the dressmaking industry. What animation! What activity! What a life! Each dress will occupy a hundred fingers instead of ten. No young girl will remain idle, and we have no need, Sire, to point out to your perspicacity the moral consequences of this great revolution. Not only will there be more girls occupied, but each of them will earn more, since they will be unable to meet demand and, if competition rises still further, it will not be between the seamstresses who make the dresses but between the fine ladies who wear them.
You see, Sire, our proposal is not just in line with the economic traditions of the government, it is also essentially moral and democratic.
To appreciate its effects, let us assume that it has been achieved, let us be carried in thought into the future; let us imagine the system once it has been in action for twenty years. Idleness has been banished from the country. Prosperity and concord, contentment and morality have become imbued, along with work, in every family. There is no more destitution, no more prostitution. As left hands are very gauche to work with, there will be an over-abundance of work and pay will be satisfactory. Everything has been arranged on this basis; consequently, workers in workshops have increased in number. Is it not true, Sire, that if suddenly Utopians came to demand freedom for the right hand, they would spread panic throughout the country? Is it not true that this so-called reform would throw everybody into confusion? Our system is therefore good, since it cannot be overturned without causing pain.
And yet we have the sorry premonition that one day an association will be formed (such is the perversity of the human race!) called the association for the freedom of right hands.453
We can almost hear the free right-handers speak in these terms in the Montesquieu Hall454 already:
"People, you think you are richer because the use of one hand has been taken from you and you see only the additional work that you have received. But take a look at the high prices that have resulted and the forced reduction of all forms of consumption. This measure has not made capital, the source of wages, more abundant. The water that flows from this great reservoir is directed to other channels; its volume has not increased and the final result is, for the nation as a whole, a loss of well-being that is equal to all the extra output that the millions of right hands can produce compared to an equal number of left hands. Let us unite, therefore, and at the cost of some inevitable inconvenience, let us conquer the right to work with both hands."
Fortunately, Sire, an association for the defense of work with the left hand455 will be formed and the Sinistrists will have no trouble in annihilating all these generalities and idealisms, suppositions and abstractions, dreams and utopias. All they will have to do is to exhume the 1846 issues of Le Moniteur industriel; in these they will find ready-made arguments against free trade which will pulverize freedom for right hands so magnificently that all they will need to do is to substitute one word for the other.
"The Paris League for Free Trade had no doubt that the workers would support it. However, workers are no longer men who can be led by the nose. Their eyes have been opened and they are more fully conversant with political economy than our qualified professors … Free trade, they replied, will take away our work and work is our real, great and sovereign property; with work, with a great deal of work, the price of goods is never out of reach. But without work, even if bread cost only one sou per pound, workers are forced to die of hunger. Well your doctrines, instead of increasing the current total of work in France, will decrease it, that is to say you will reduce us to destitution." (Issue dated 13th October 1846).
"When there are too many goods on sale, their price does in fact goes down, but as wages fall when goods lose their value, the result is that instead of being in a position to buy them, we can no longer buy anything. It is therefore when goods are at their lowest price that workers are most unfortunate." (Gauthier de Rumilly, Le Moniteur industriel dated 17th November.)456
It would be no bad thing if the Sinistrists included a few threats in their fine theories. This is a sample:
"What? You want to substitute work using right hands for that using left hands and thus force down, if not totally annihilate wages, the sole resource of almost the entire nation?
And this at a time when poor harvests457 are already imposing painful sacrifices on workers, making them anxious for their future, more likely to listen to bad advice and ready to abandon the sensible behavior they have been following up to now."
We are confident, Sire, that through this learned reasoning, the left hand will emerge victorious in any conflict that arises.
Perhaps a further association will be formed with the aim of finding out whether the right and left hands are both wrong and if there is not between them a third hand which will reconcile everything.
Having painted the Sinistrists as being won over by the apparent liberality of a principle whose accuracy has not been verified by experience and the Dextrists458 as being encamped on their acquired positions, will that association not say:
"And can it be denied that there is a third road to take in the center of the conflict! And is it not obvious that workers have to defend themselves, both against those who want to change nothing in the current situation because it is to their advantage and those who dream of overturning the economy and have not calculated either the extent of the change or the range of its effects!" (The issue of National459 dated 16th October).
However, we would not wish to hide from Your Majesty, Sire, that there is a vulnerable side to our project. We might be told: "In twenty years' time, all the left hands will be as skilled as right hands are now, and you will no longer be able to count on gaucherie (left-handedness) to increase national employment."
Our answer to this is that, according to learned doctors, the left hand side of the human body has a natural weakness, which is entirely reassuring for the future of work.
And after all, if you agree to sign the decree, Sire, a great principle will have won the day: All wealth comes from the intensity of work. It will be easy for us to extend it and vary its applications. For example, we will decree that only work using feet will be allowed. This is no more impossible (since it has been seen) than extracting iron from the silt of the Seine. Men have even been seen to write with their backs. You see, Sire, that we do not lack the means of increasing national employment. Should the cause become hopeless, we are left with the unlimited resource of amputation.
Finally, Sire, if this report were not intended for publication, we would call your attention to the great influence that all systems similar to the one we are submitting to you are capable of giving the men in power. But this is a subject that we are keeping for discussion in private.
Endnotes441 (Paillottet's note) Taken from the issue of Le Libre-Echange dated 13th December 1846.
442 Le Libre-Échange was the weekly journal of the Association pour la liberté des échanges. It began in 1846 and closed in 1848 as a result of the revolution. There were 72 issues most of which were edited by Bastiat. See the glossary entry "Le Libre-Échange."
443 Auguste Adolphe Marie Billaut (1805-1863) was a lawyer, an economist and a member of the Chamber of Deputies. He was anticlerical and a Saint-Simonian and voted with the republican left in the Chamber after the 1848 revolution. See the glossary entry on "Billaut."
444 See the glossary entry on "Utopias."
445 This may be a dig at King Louis Philippe's reputation for being a card playing bon vivant.
446 Known as the "Quaterne sec", it was a lottery ticket that had one chance in 75,000 to pay off.
447 Jean-François Collin d'Harleville (1755-1806) was a French dramatist and poet. The lines Bastiat quote come from his play Les Châteaux en Espagne (1789). M. D'Orlange is the caretaker of M. D'Orfeuil's castle in Spain and dreams he is now a Sultan. The owner's valet Victor wakes D'Orlange up and he reflects upon the escape provided by dreams: "Ah well, at least everyone is happy when they are dreaming. There is something indeed to be said about having beautiful dreams. It is a useful respite from our actual grief. We have need of them, we are surrounded by woes which in the end would overwhelm us, without this happy madness which flows through our veins. Gratifying illusion! Sweet oblivion from our troubles!" Oeuvres de Collin-Harleville, contenant son theater et ses poesies fugitives, avec une notice sur sa vie et ses ouvrages (Paris: Delongchamps, 1828), vol. 1, p. 337.
448 Lotteries were banned in France in January 1836. They were used during the old regime as a means of raising money to build and repair churches and religious communities and even as a way for the state to pay off the national debt. Lotteries were banned during the Revolution (November 1793), re-legalised in 1797, but finally abolished beginning in 1832 with a phasing out period of four years. See Edgar Duval, "Loteries," DEP, vol. 2, pp. 106-7.
449 The sale of tobacco in France was a state monopoly. It contributed fr. 120 million to government receipts in 1848 (8.6% of a total of fr. 1.4 billion). See Appendix 4 "French Government Finances 1848-1849."
450 Bastiat probably has in mind the fact that the high cost of sending letters in France (another state monopoly used to raise money) made it more difficult for families to keep in contact with each other. See the discussion and the many footnotes in ES2 XII. "Salt, the Mail, and the Customs Service" above p.. ???
451 "Honni soit qui mal y pense" (shame on him who thinks ill of it) is the motto of the English chivalric Order of the Garter coined by King Edward III.
452 Bastiat uses the word "gaucherie" in this passage, thus making a pun on the French word for left ("gauche") and for clumsiness ("gaucherie") to make his point.
453 Bastiat is drawing a number of witty verbal parallels here between "La liberté des mains droites" (freedom for right hands) and "la liberté des échanges" (free trade); the "association pour la liberté des main droites" (the free right hand association) and the "association pour la liberté des échanges (association for free trade); and "les libres-dextéristes" (free right-handers) and "les libre-échangistes" (free traders). All that is missing from his list is a journal to promote the cause: Le Libre-Dextérisme (Free Right-Handedness) and Le Libre-Échange (Free Trade). Bastiat was of course an arch free trader and one of the founders of the Free Trade Association, and the editor of the journal Le Libre-Échange. See the glossary entries on "The Free Trade Association" and "Le Libre-Échange."
454 The first public meeting of the Free Trade Association was held in Montesquieu Hall on August 28, 1846.
455 Bastiat continues his parallels by comparing the "association pour la défense du travail par la main gauche" (association for the defense of work with the left hand) with the protectionist "association pour la défense du travail national" (association for the defense of national employment) which was founded by the textile manufacturer Pierre Mimerel and which published the journal Le Moniteur industriel. This association will of course promote the interests of the "Sinistristes" (Sinistrists, or supporters of left hand labor). Bastiat uses the word "sinistre" here which is another pun, this time on the French word for left ("senestre") which comes from the Latin "sinister" (left). The pairing for this is the word "Dextérists" (Dextrists, or supporters of right hand labor), from the Latin "dexter" (on the right), which he uses later in the article. See the glossary entries on "Mimerel," "Le Moniteur industriel," and "Association for the Defense of National Employment."
456 Louis Gaulthier de Rumilly (1792-1884) was trained as a lawyer and served as a Deputy between 1830-34 and 1837-40. He was active in the "Société d'encouragement pour l'industrie nationale" (Society to Promote National Industry) and had a special interest in agriculture, railroads, and tariffs. See the glossary entry on "Rumilly" and "Society to promote National Industry."
457 Crop failures in 1846-1847 caused considerable hardship and a rise in food prices in 1847 across Europe. Some historians believe this was a contributing factor to the outbreak of revolution in 1848. The average price of wheat in France was 18 fr. 93 c. per hectolitre in 1845; which rose to 23 fr. 84 c. in 1846 (which had a poor harvest). Prices were even higher in the last half of 1846 and the first half of 1847 when the shortage was most accutely felt. In December 1846 it rose to 28 fr. 41 c; and reached a maximum of 37 fr. 98 c. in May 1847. The average price for the period 1832-1846 had been 19 fr. 5 c. per hectolitre. The lowest average price reached between 1800 and 1846 was 14 fr. 72 c. in 1834. See AEPS, pour 1848 (Paris: Guillaumin, 1848), pp. 179-80. See the glossary entry on "The Irish Famine and the Failure of French Harvests 1846-47."
458 Right handers. See note above.
459 "The National" was a liberal paper founded in 1830 by Adolphe Thiers to fight the ultra-reactionary politics of the duc de Polignac. Le National played a decisive role during the "three glorious days" (July 26-29, 1830) and contributed to the success of Louis-Philippe. See the glossary entries on "Thiers" and "Le National," and "French Newspapers" in Appendix 2 "The French State and Politics."
T.91 (1846.12.15) "On the Impact of the Protectionist Regime on Agriculture" (JDE, Dec. 1846)↩
SourceT.91 (1846.12.15) "On the Impact of the Protectionist Regime on Agriculture" (De l'influence du régime protecteur sur l'agriculture), Journal des Économistes, Décembre 1846, T. XVI, no. 61, pp. 6-15. [OC2.7, pp. 25-39.] [CW6]
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T.92 (1846.12.20) "Free Trade" (LE, Dec. 1846)↩
SourceT.92 (1846.12.20) "Free Trade" (Le Libre-Échange), Le Libre-Échange, 20 Dec. 1846, no. 4, p. 25. [OC2.2, pp. 4-7.] [CW6]
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T.93 (1846.12.27) "What does Invasion amount to?" (LE, Dec. 1846)↩
SourceT.93 (1846.12.27) "What does Invasion amount to?" (A quoi se réduit l'invasion), Le Libre-Échange, 27 Dec. 1846, no. 5, p. 38. [OC2.11, pp. 58-63.] [CW6]
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T.94 (1846.12.27) "Recipes for Protectionism" (LE, Dec. 1846)↩
SourceT.94 (1846.12.27) "Recipes for Protectionism" (Recettes protectionnistes), Le Libre-Échange, 27 Dec. 1846, no. 5, p. 40. [OC2.53, pp. 358-63.] [CW3 - ES3.1]
I. Recipes for Protectionism [27 December 1846] (final draft)↩
Publishing history- Original title, place and date of publication: "Recettes protectionnistes" (Recipies for Protectionism) [27 December 1846, 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. 358-63.
- Previous translation: [none]
27 December 1846
Since we published a report to the King on the great advantage we might draw from the general paralysis of right hands468 as a means of encouraging work, it appears that a great many minds are looking for new recipes for protectionism. One of our subscribers has sent us a letter on this subject, which he intends to send to the Council of Ministers. We think it contains views that are worthy of attracting the attention of Statesmen, and we therefore make haste to reproduce it.
Dear Ministers,
At a time when Customs protection appears to be compromised, a grateful nation sees with confidence that you are concerned with resuscitating it in another form. This opens a wide field to the imagination. Your system of gaucherie (left-handedness)469 has good points, but I do not consider that it is radical enough, and I am taking the liberty of suggesting to you means that are more heroic but still based on this fundamental axiom: the intensity of work, notwithstanding its results, constitutes wealth.
What is this about? Supplying new sustenance for human activity. That is what it is lacking, and to achieve this we need to clear out the current means of satisfaction and create a great demand for products.
I originally thought that we might base a great deal of hope on fire, without neglecting war or pestilence. To start fires at the four corners of Paris470 with a good west wind would certainly ensure the population the two major benefits that the protectionist regime has in view: work and high prices or rather, work by means of high prices. Do you not see what an immense impetus the burning of Paris would give to national industry? Is there a single person who would not have enough work to last him twenty years? How many houses would there be to rebuild, items of furniture to restore, tools, instruments, fabrics, books and pictures to replace! I can see from here the work that will move step by step and increase by itself like an avalanche, for a worker who is busy will give work to others and these employ yet others. It is not you who will come forward to defend consumers, for you know only too well that the producer and consumer are one and the same. What holds up production? Obviously existing products. Destroy them and production will take on a new lease of life. What constitutes our wealth? Our needs, since without needs there is no wealth, without disease, no doctors, without wars, no soldiers, without court cases, no lawyers and judges. If windows did not break, glaziers would be gloomy;471 if houses did not crumble, if furniture was indestructible, how many trades would be held up! To destroy is to make it necessary for you to replace. To increase the number of needs is to increase wealth. Therefore spread fire, famine, war, pestilence, vice and ignorance, and you will see all occupations flourish, for all will have a vast field of activity. Do you not say to yourselves that the scarcity and high price of iron make the fortune of ironmasters? Do you not prevent Frenchmen from buying iron cheaply? In doing this, are you not causing the interests of production to outweigh those of consumers? Are you not creating, so to speak, disease in order to give work to doctors? Be consistent, then. Either it is consumer interest that guides you, and therefore you allow iron to enter, or it is the interest of producers, and in this case you set Paris on fire. Either you believe that wealth consists in having more while working less, and therefore you allow iron to enter, or you think that it consists in having less with more work, and in this case, you burn Paris; for to say as some do: "We do not want absolute principles",472 is to say: "We want neither truth nor error, but a combination of the two: error when it is convenient and truth when it suits us."
However, Ministers, although this system of protection is in theory in perfect harmony with a prohibitionist regime, it may well be rejected by public opinion, which has not yet been sufficiently prepared and enlightened by experience and the findings of Le Moniteur industriel.473 You will consider it prudent to delay execution to better times. As you know, there is over-production and a surfeit of goods everywhere, the capacity to consume falls short of the capacity to produce, and markets are too restricted, etc. etc. All this tells us that fire will soon be regarded as an effective remedy for a great many evils.
In the meantime, I have invented a new method of protection that I think has a great potential for success.
It consists simply in substituting direct for indirect encouragement.
Double all taxes; that would create a surplus of revenue of 1,400 to 1,500 million.474 You should then share out these funds as subsidies to all the sectors of national production in order to support them, assist them and enable them to resist foreign competition.
This is what will happen.
Let us suppose that French iron can be sold only at 350 francs a ton. Belgian iron is offered at 300 francs. You quickly take 55 francs from the subsidy fund and give them to our ironmaster. He then supplies his iron at 295 francs. Belgian iron is kept out, which is what we want. French iron covers its costs at 350 francs, which is also what we want.
Is foreign wheat impertinent enough to be on offer at 17 francs where domestic wheat requires 18 francs to be profitable? You immediately give 1 franc 50 centimes for each hectoliter of our wheat, which is then sold at 16 francs 50 centimes and sees off its competitor. You take the same action for woolen cloth, canvas, coal, cattle, etc. etc. In this way, national production will be protected, foreign competition driven away, a remunerative price assured, flooding of the market prevented and all will be well.
"Well, good heavens! That is exactly what we are doing," you will tell me. "Between your plan and our practice there is not an atom of difference. It is the same principle, with the same result. It is just the procedure that is slightly different. The burden of protection that you place on the shoulders of taxpayers, we place on those of consumers which, in the end, comes to the same thing. We pass the subsidy from the general public directly to the sector protected. You, on the other hand, make it reach the sector protected from the general public via the Treasury, which is a superfluous step, and the only difference between your invention and ours."
Just a moment, Ministers, I agree that I am suggesting nothing new. My system and yours are identical. It is still the work done by everyone that subsidizes the work of each person, a pure illusion, or the work of a few, which is brazen injustice.475
But let me show you the positive side of my procedure. Your indirect protection protects only a small number of industries effectively. I am offering you the means of protecting them all. Each one would have its share of the spoils. Farmers, manufacturers, traders, lawyers, doctors, civil servants, authors, artists, artisans and workers all put their obole into the protection moneybox; is it not only fair that all should take something out of it?
No doubt that would be fair, but in practice … I see what you mean. You are going to say to me: "How can we double or triple taxes? How can we snatch 150 million from the postal services, 300 million from salt or a billion from land taxes?"476
"There is nothing simpler. First of all, through tariffs : you already take them from the general public, and you will understand that my procedure will cause you no embarrassment, apart from a few book keeping entries, for all of this will take place on paper.
In effect, according to our public law, each person contributes to taxes in proportion to his wealth.
According to the principles of justice, the State owes everyone equal protection.
The result of this is that my system, with regard to the Minister of Finances, will be reduced to opening an account for each citizen that will invariably be made up of two articles, as follows:
N. owes the Subsidy Fund 100 francs for his share of taxes.
N. is owed 90 francs by the Subsidy Fund for his share of protection."
"But that is the same as if we did nothing at all!"
"That is very true. And you would equally do nothing through the Customs if you were able to use it to protect everyone equally."
"Then let us concentrate on merely protecting a few."
"You could do this very well using my procedure. All you have to do is to designate in advance the classes that will be excluded when the funds from the tontine477 are shared out, so that the others will get a larger share."
"That would be terribly unjust."
"You are doing this right now."
"At least we do not notice it."
"Nor does the general public. That is why they go along with it."
"What ought we to do?"
"Protect everyone or no one."
Endnotes468 (Paillottet's note) See vol. IV, p. 258. <TBK> [DMH - See ES2 XVI. "The Right Hand and the Left Hand" above, pp. ???]
469 See above in ES2 XVI. "The Right Hand and the Left Hand" p. ???. In this Sophism Bastiat tells us that the King forbids his subjects from using their right hands in order to increase wealth by increasing the amount of labor which must be exerted in order to do anything. This provides Bastiat with many opportunities for playing with words, such as the "Dextrists" who support the right to work with one's right hand vs. the "Sinistrists" who support only the use of the left hand, as well as the obvious pun on the word "gaucherie" as "gauche" is French for "left."
470 See previous footnote in WSWNS "The Broken Window" on the protectionist Saint-Chamans's argument that the Great Fire of London in 1666 destroyed one million pounds worth of capital stock which permitted rebuilding and thus was a net gain for the English nation.
471 See the chapter on "The Broken Window" in WSWNS for Bastiat's classic discussion of this point.
472 See ES1 XVIII "There are No Absolute Principles" p. ???? for another discussion of this topic.
473 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".
474 In 1848 the state received a total of fr. 1.391 billion in revenue from taxes and charges which was made up of fr. 420 million from direct taxes (land, personal, door & window, licences), fr. 308 million from indirect taxes (mainly from the tax on alcohol, tobacco, and sugar), fr. 263 million from registrations and stamp duty, fr. 202 million from customs and the salt monopoly, fr. 51 million from the post office, plus other sources. See Appendix 4 "French Government Finances 1848-1849."
475 This article was written in December 1846 and prefigures Bastiat's 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).
476 According to the Budget of 1848 the tax on letters and other charges raised fr. 51.5 million; customs duties on salt raised fr. 38.2 million and the domestic consumption tax on salt raised fr. 13.3 million (for a total from salt of fr. 51.5 million; and direct taxes levied on land raised fr. 279.5 million. See Appendix 4 "French Government Finances 1848-1849."
477 A tontine is a voluntary investment or insurance scheme where a group of individuals contribute a certain amount to a group fund from which they receive an annual payment. Upon the death of one of the contributors their contribution is shared among the survivors. The fund is wound up upon the death of the second last person, with the last survivor receiving the full amount left in the fund. Tontines were used in the 17th and 18th centuries by the French and other governments to manage state debt before the invention of the financing of modern public debt which arose during the Napoleonic wars by the British government. See A. Legoyt, "Tontines," DEP, vol. 2, pp. 742-48.
Bastiat's Writings in 1847
T.95 (1847.??) "A Little Manual for Consumers, in other words for Everyone"↩
SourceT.95 (1847.??) "A Little Manual for Consumers, in other words for Everyone" (Le petit manuel du consommateur ou de tout le monde). An unpublished draft. [OC2.61, pp. 409-15.] [CW3 - ES 3.17]
XVII. A Little Manual for Consumers, in other words for Everyone669 [1847] (final draft)↩
Publishing history- Original title, place and date of publication: [an unpublished outline from 1847].
- 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. 409-15.
- Previous translation: [none]
Consume – Consumer – Consumption; these are ugly words that represent people as so many barflies, constantly with a coffee cup or a wine glass in front of them.
But political economy is obliged to use them. (I am referring to the three words, not the wine glass.) It does not dare to invent others, as it has found these ready-made.
Let us nevertheless set out what they mean. The aim of work, both cerebral and manual, is to satisfy one of our needs or desires. There are therefore two terms in economic evolution: effort and reward. Reward is the product of effort. It takes effort to produce; enjoying the reward is to consume.
We can therefore consume an intellectual work in the same way as one produced manually: a drama, a book, a lesson, a picture, a statue or a sermon in the same way as wheat, furniture or clothes, visually, aurally, through the mind or through the emotions in the same way as through the mouth and the stomach. This being so, I have to agree that the word consume is very narrow, very commonplace, very unsuitable and very strange. However, I do not know any other ones, and all that I can do is to repeat what I mean by the term, namely to enjoy the reward achieved by work.670
There is no metric, barometric or dynamometric scale that can give a standard measurement of effort and reward, nor will there be until the means have been found to size up distaste and to weigh a desire.
Each person is in it for himself. Since the reward and burden of effort concern me, it is up to me to compare them and see whether the one is worth the other. In this respect, coercion would be all the more absurd since there are no two men on earth who will form the same assessment in every case.671
Exchange does not alter the nature of things. The general rule is that it is up to the person who wants the reward to put in the effort. If he wants the reward of other people's efforts, in return he has to offer the reward of his own effort. When this happens, he compares the strength of his desire with the trouble he would have undertaken to satisfy it and says: "Who wants to go to this trouble on my behalf? I will do the same for him."
And, as each person is the sole judge of the desire he feels and the effort demanded of him,the essential character of these transactions is that they are free.
When freedom is bannished, you may be sure that one of the contracting parties is either put to too much trouble or receives too small a reward.
What is more, the action of coercing his fellow man is itself an effort, and resistance to this action is another effort, both of which are entirely lost to the human race.
We must not lose sight of the fact that there is no uniform and immutable conformity between an effort and its reward. The effort required to obtain wheat is less great in Sicily than on the summit of Mont Blanc. The effort required to obtain sugar is less great in the tropics than in Kamchatka. The best distribution of effort in the places in which it is most helped by nature and the perfectibility of the human mind tend to reduce constantly the ratio between effort and reward.
Since the effort is the means, the burdensome part of the operation, and the reward is its aim, end and fruit, and since, on the other hand, there is no invariable ratio between these two things, it is clear that, in order to know whether a nation is wealthy, it is not the effort that should be looked at, but the result. The degree of effort does not tell us anything. The extent to which needs and desires are satisfied tells us all.672 This is what economists understand by these words that have been so strangely commented on: "The self-interest of the consumer, or rather consumption, is the general interest." The progress of the satisfactions a nation enjoys, is obviously the progress of this nation itself. This is not necessarily true of the progress of its efforts.
This is not a pointless observation, for there are eras and countries in which the increase in the duration and intensity of effort has been taken as the touchstone of progress. And what has been the result? Laws have been applied to reducing the relationship between reward and effort so that, propelled by the intensity of desire and the call of human need, men might constantly increase their efforts.
If an angel or infallible being were sent to govern the earth, he might be able to tell each person how he should act so as to ensure that all effort would be followed by the greatest possible reward. As this has not happened, this task must be entrusted to LIBERTY.
We have already said that freedom is total justice. What is more, it strongly tends to achieve the result sought: to obtain the greatest possible reward from every effort or, in order not to lose sight of our special subject, the greatest level of consumption possible.
In fact, under a free regime, each person is not only encouraged but also bound to achieve the best outcome from his efforts, his abilities, his capital and the natural advantages that are available to him.
He is bound to do this by competition. If I decided to extract iron from the ore found in Montmartre, I would need a great deal of effort to do this for a very meager reward. If I wanted this iron for myself, I would soon see that I would obtain more through trade by orienting my work in a different direction. And if I wanted to trade my iron, I would see even more quickly that, although it had cost me a great deal of effort, people would be willing to offer me only very little effort in return.
What drives us all to reduce the ratio of effort to result is our personal interest. But, and this is a strange and wonderful thing, there is in the free play of the social mechanism something which, in this respect, causes us to proceed from disappointment to disappointment and upsets our calculations to the benefit of the human race.
This means that it is strictly true to say that others benefit more than we do from our own progress. Fortunately the benefit we draw from other people's progress unfailingly compensates for this.
This warrants a brief explanation.
Take situations however you please, from the top or the bottom, but follow them attentively and you will always recognize the following:
The advantages that benefit producers and the disadvantages that hinder them only wash over 673 them without being able to be stopped. In the long run these are translated into advantages or disadvantages for consumers, the general public. They can be summed up as an increase or decrease in general enjoyment. I do not want to expand on this here, that will come later perhaps. Let us proceed through the use of examples.
I am a joiner and make planks using an axe. People pay me 4 francs per plank, as it takes me one day to make one. As I want to improve my situation, I seek a way of making them faster and am fortunate enough to invent the saw. Here I am, making 20 planks a day and earning 80 francs. Very good, but this high profit attracts attention. Everyone wants a saw, and soon no one will pay me more than 4 francs for making 20 planks. Consumers save 19/20ths of their expenditure while the only advantage remaining to me, as to them, is to obtain planks with less trouble when I need them.674
Another example in the opposite direction.
A huge tax is imposed on wine and paid at harvest time. This is an advance required from producers, which producers endeavor to recoup from consumers. The struggle will be long and the suffering shared for a long time. The wine-producer will perhaps be reduced to grubbing up his vines. The value of his land will decrease. One day he will sell it at a loss, and then the new purchaser, who has included the tax in his calculations, will have no reason to complain. I do not deny all the damage inflicted on producers any more than the temporary benefits they enjoy in the previous example. However, I say that in the long run the tax becomes part of the production costs and consumers will have to pay them all, the tax along with the rest. A century or perhaps two centuries later, the wine-producing industry will be based on this; people will have grubbed up vines, sold land, and suffered in vineyards and in the end, consumers will bear the tax.675
It must be said in passing that this proves that if we are asked which tax is the least burdensome, we would have to reply: "The oldest, the one that has given the disadvantages and inconveniences the time to run through their disastrous cycle.
The logic of what we have been saying is that, in the long run, consumers reap all of the benefits of good legislation just as they suffer the disadvantages of bad; in other words, good laws lead to an increase and bad laws to a decrease in the benefits enjoyed by the public. This is why consumers, the general public, must keep their eyes open and minds alert, and why I am addressing myself to them.
Unfortunately, consumers are hopelessly good-humored and this is why. Since misfortunes reach them only at the end of the process and one after the other, they have to be very provident. Producers, on the other hand, receive the first shock; they are always on the lookout.
Man, as a producer, is burdened with the onerous part of economic development, namely the effort. It is as a consumer that he is rewarded.
It has been said that producers and consumers are one and the same.
If a product is considered on its own, it is certainly not true that producers and consumers are one and the same, and we can often see one exploiting the other.
If we generalize, the axiom is perfectly accurate and this explains the immense disappointment which is felt after any injustice or any attack on liberty; producers, by wishing to hold consumers to ransom, hold themselves to ransom as well.
There are those who believe that there is compensation. No, there is no compensation; first of all because no law is capable of allocating to each person an equal share of injustice, and also because when injustice occurs there is always a loss of benefits which can be enjoyed, especially when this injustice consists, as in a restrictive regime, in displacing labor and capital and reducing the general compensation on the pretext of increasing overall production.
To sum up, if you have two laws or two systems to compare, if you consult the interest of producers you may go down the wrong path; if you consult the interest of consumers, you cannot do this. It is not always a good thing to increase effort as a whole but never a bad thing to increase the total amount of satisfaction…
Endnotes669 (An unpublished outline) 1847. [DMH - This article has no date but was probably written sometime in 1847.]
670 (Paillottet's note) See chapter II of vol V.
671 This is another example of Bastiat grappling with the idea of subjective value theory which was later to be an important part of the Austrian school of economics. The breakthrough came in the 1870s with the near simultaneous publication of works by Carl Menger (1840–1921) Principles of Economics (1871), Stanley Jevons (1835–1882) The Theory of Political Economy (1871), and Léon Walras (1834–1910) Elements of Pure Economics (1874), which collectively was known as "the Marginal Revolution."
672 (Paillottet's note) See chapter VI in Vol. V.
673 Here Bastiat is grappling with the concept which had been thinking about for the past two years , namely the "ricochet effect" (or flow effect) which he used to describe the interconnectedness of all economic activity and the need to be aware of immediate effects (the seen) and later indirect effects (the unseen). He uses the word "glisser" (to slide or slip) in this sentence. See the previous occurrence of this in ES1 IV. "Equalizing the Conditions of Production" (July 1845), above, pp. ??? and the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
674 (Paillottet's note) <TBK> See pages 36 to 45 in Tome IV.
675 (Paillottet's note) <TBK> See pages 468 to 475 in Tome V.
T.96 (1847.??) "Making a Mountain out of a Mole Hill"↩
SourceT.96 (1847.??) "Making a Mountain out of a Mole Hill" (Midi à quatorze heures). An unpublished outline from 1847. [OC2, pp. 400-09.] [CW3 - ES3.16]
XVI. Making a Mountain out of a Mole Hill658 659 [c. 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Midi à quatorze heures" (Making a Mountain out of a Mole Hill) [an unpublished outline from 1847]
- 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. 400-09.
- Previous translation: [none]
People have made political economy into a science fraught with subtleties and mystery. Nothing in it happens naturally. It is despised and ridiculed as soon as it dares to give a simple answer to a simple phenomenon.
"Portugal is poor," people say, "what is the reason for this?"
"Because the Portuguese are dull, lazy, improvident and badly governed", says political economy.
"No!" comes the reply, "it is trade that is doing all the damage. It is the Treaty of Methuen660, the invasion of woolen cloth from England at low prices, a scarcity of money, etc."
And people continue: "The English work hard, and yet there are a great many poor people in their country; how can this be?"
"Because what they earn through work is taken from them through taxes," political economy replies naïvely. "It is distributed to colonels, commodores, governors and diplomats. In far-off places acquisition is being made of territory that is expensive to obtain and even more so to retain. Well, what is earned once cannot be spent twice, and what the English put into satisfying their love of glory cannot be devoted to their genuine needs."
"What a sorry and prosaic explanation!" comes the cry. "It is the colonies that make England rich!"
"You were just saying that it was poor, in spite of working hard."
"English workers are poor, but England is wealthy."
"That is what it is; work produces and politics destroys. That is why work has no reward."
"But it is politics that generates work, by supplying that work with colonies as tributaries."
"On the contrary, colonies are founded at the expense of work, and it is because they are used for this purpose that they are not used to feed, clothe, educate and improve the moral code of workers."
"But here is a nation that works hard and has no colonies. According to you, it should grow wealthy."
"That is probable."
"Well then! It is not. Now extricate yourself from that!"
"Let us see," says political economy, "perhaps this nation is reckless and wasteful. Perhaps it has a mania for turning all its revenue into festivities, games, dances, shows, brilliant costumes, luxury objects, fortifications or military parades."
"What heresy! When in fact luxury enriches nations … However, this nation is suffering. How does it not even manage to have enough bread?"
Probably because the harvest has failed."661
"That is true. But have men not the right to live? Besides, can they not bring in food from abroad?"
"Perhaps this nation has passed laws forbidding this."
"That is also true. But is this not a good thing, to stimulate the production of food within the country?"
"When there is no food in the country, the choice has to be made, either to do without or to bring it in."
"Is this all you have to teach us? Are you not able to suggest to the State a better solution to the problem?"...
So, people always want to provide complicated explanations to the simplest problems and consider themselves learned only if they try to make a mountain out of a mole hill.
As economic facts act and react on one another, in turn becoming cause and effect, it must be agreed that they present an undeniable complication. However, with reference to the general laws that govern these facts, they are admirable in their simplicity to the extent that they sometimes embarrass the person who takes on the task of setting them out, since the public's reaction is such that it is as suspicious of what is simple as it is tired of what is not. If you show them that the sources of wealth are work, order, thrift, freedom and security, and that laziness, dissipation, rash enterprises, wars or attacks on property bring nations to ruin, they shrug their shoulders and say: "Is that all! Is that the economics of societies?... The most modest housewife organizes herself in accordance with these principles. It is impossible for such trivialities to be at the basis of a science, and I will seek an answer elsewhere. Let us discuss Fourier.
People are trying to find out what he meant after he has spoken;662
But in his pivots, aromas and scales, in his passions in major or minor key, in his flights of fancy, postfaces, cisfaces and transfaces, there is something that at least resembles a scientific structure."663
In many respects, however, collective needs, work, and prudence, resemble individual needs, work, and prudence.
Therefore, if an economic question should stump us, let us go and look at Robinson Crusoe664 on his island and we will find the answer to it.
Do we need to compare freedom with restriction?
To establish what constitutes labor and what capital?
To ascertain whether one is oppressing the other?
To assess the effects of machinery?
To decide between luxury and thrift?
To judge whether it is better to export than to import?
Whether production may be over-abundant and consumption deficient?
Let us run off to the island to see the poor shipwrecked sailor. Let us see him in action. Let us examine the motives, the purpose, and the consequences of his actions. We will not learn everything there, in particular not those things that relate to the distribution of wealth in a society of many people, but we will glimpse the basic facts. We will observe general laws in their simplest form of action, and political economy is there in essence.
Let us apply this method to just a few problems.
"Sir, is it not machinery that is killing off work? Machines are taking the place of people; they are the reason there is an over-abundance of production and why humanity is reduced to being no longer able to consume what is being produced".
"Sir, allow me to invite you to accompany me to the Island of Despair. Here is Robinson Crusoe who is laboring to produce food for himself. He hunts and fishes all day long. He has not a minute to repair his clothes and build himself a cabin. But what is he doing now? He is gathering together bits of string and making a net, which he stretches, across a river. The fish catch themselves and Robinson Crusoe now has to devote just a few hours a day to obtaining his food. Now, he will be able to deal with his clothes and house himself".
"What conclusion do you draw from this?"
"That a machine does not kill off work but makes it available, which is a totally different thing, for work killed off, as when a man's arm is cut off, is a loss, whereas work made available, as though we are being given a third arm, is a benefit."
"And is this true in a society?"
"Without doubt, if you accept that the needs of society are indefinite, like those of one man."
"And if they were not indefinite?"
"In this case the profit would be translated into leisure."
"But you cannot deny that in a social state a new machine leaves people without work."
"Some people, temporarily, I agree, but I disagree with regard to employment as a whole. What produces the illusion is this: people fail to see that a machine cannot make a certain amount of work available without making a corresponding quantity of pay equally available."
"How is this?"
"Let us suppose that Robinson Crusoe, instead of being alone, lives in society and sells fish instead of eating it. If, having invented the fishing net, he continues to sell fish at the same price, everyone except him will have to do the same amount of work to obtain it as before. If he sells fish cheaper, all his customers will achieve a saving, which will be used to stimulate and remunerate some other work.665"
"You have just mentioned savings. Would you dare say that the luxury of the wealthy does not enrich merchants and workers?"
"Let us return to Robinson Crusoe's island to form an accurate idea of luxury. Here we are; what do you see?"
"I see that Robinson Crusoe has become a Sybarite.666 He no longer eats to satisfy his hunger; he likes variety in his meals, stimulates his appetite artificially and, what is more, he takes care to change the line and color of his clothes every day."
"He creates work for himself this way. Is he genuinely richer?"
"No, because while he makes clothes and stirs his pots his weapons are rusting and his cabin is falling down."
"A general rule that is very simple and much overlooked is this: each piece of work gives one result and not two. The work wasted in contenting yourself with puerile fantasies cannot satisfy more genuine needs, which are of a higher order."
"Is this also true in a society?"
"Absolutely. For a nation, work required by a taste for fashion and entertainment cannot be devoted to its railways or education."
"If the tastes of this nation turned toward study and travel, what would become of its tailors and actors?"
"Teachers and engineers."
"With what would society pay more teachers and engineers?"
"With the money it did not pay to actors and dressmakers."
"Are you insinuating that in a social state people should exclude any form of entertainment and all forms of art and clothe themselves simply instead of adorning themselves?"
"That is not my idea. I say that work that is used for one purpose is taken from another, and that it is up to the common sense of the people like that of Robinson Crusoe, to choose. Only you need to be fully aware that luxury does not add anything to work; it just displaces it."
"Would we also be able to study the Treaty of Methuen on the Island of Despair?"
"Why not? Let us take a walk there… Do you see, Robinson Crusoe is busy making clothes to protect himself from the rain and cold. He is regretting the time he has to spend on this as he also needs to eat and his garden takes up all his time. But here is a canoe that has come to the island. The stranger that disembarks shows Robinson Crusoe some warm clothes, offers to trade them to him for a few vegetables and offers to continue this exchange in the future. Robinson Crusoe first looks to see whether the stranger is armed. Seeing that he has neither arrows nor a tomahawk, he says to himself: "After all, he cannot lay claim to anything that I do not agree to; let us have a look." He examines the clothes, calculates the number of hours he would spend making them himself and compares this with the number of hours he would have to add to his gardening work to satisfy the stranger. If he finds that the trade, while leaving him just as well fed and clothed, makes a few extra hours of his time available, he will accept, knowing full well that these hours saved are a net gain, whether he devotes them to work or leisure. If, on the other hand, he thinks that the bargain is not advantageous, he will refuse it. What need is there in this case for an external force to forbid it to him? He is able to refuse it himself.
Returning to the Treaty of Methuen, I say: The Portuguese nation takes woolen cloth from the English in return for wine only because, through this procedure, a given quantity of work in the end gives it more wine and more woolen cloth. After all, it trades because it wants to trade. This decision did not need a treaty. Actually, it should be noted that a treaty, in the form of a trade treaty, can only result in the destruction of conflicting agreements. So much so, that if the treaty were to stipulate that trade be free, it would be stipulating nothing at all. It should limit itself to letting the parties specify their own terms. The Treaty of Methuen does not say that the Portuguese will be forced to give wine for woolen cloth; it says that the Portuguese will take woolen cloth in exchange for wine, if they wish."
"Ah! Ah! Ah! Do you not know?"
"Not yet."
"I have been alone to the Island of Despair. Robinson Crusoe is ruined."
"Are you quite sure?"
"He is ruined, I tell you."
"Since when?"
"Since he started giving vegetables in exchange for clothes."
"And why does he continue to do so?"
"Do you not know the arrangement he made in the past with the neighboring islander?"
"This arrangement allowed him to take clothes in exchange for vegetables, but did not force him to do so."
"Doubtless, but this rascal of an islander has so many skins available to him and is so skilled at preparing and sewing them, in a word, he is giving so many clothes for so few vegetables that Robinson cannot resist the temptation. He is very unfortunate that there is no state over him to control his conduct."
"What could the State do in this instance?"
"Forbid the trade."
"In this case, Robinson Crusoe would make his clothes as before. What is stopping him, if it is to his advantage?"
"He tried, but he cannot make them as fast as he produces the vegetables asked of him in return. And this is why he continues to trade. Actually, in the absence of a State, which doesn't need to reason with him and which conducts itself by means of orders, could we not send an issue of Le Moniteur industriel667 to poor Robinson Crusoe in order to open his eyes?"
"But, according to what you are telling me, he must be much richer than he was before."
"Can you not understand that the islander is offering him an ever-increasing quantity of clothes in return for a quantity of vegetables that remains the same?"
"That is the very reason why the bargain is becoming better and better for Robinson Crusoe."
"He is ruined, I tell you. That is a fact. You surely will not take issue with the facts?"
"No, but against the cause you are assigning to him. Let us go together to the island. But what do I see! Why have you hidden this fact from me?"
"Which one?"
"See how Robinson Crusoe has changed! He has become lazy, indolent and disorganized. Instead of using the time that his bargain has made available to him, he is wasting both this time and more. His vegetable garden is overgrown; he is now producing neither clothes nor vegetables; he is wasting or destroying what he once made. If he is ruined what other explanation are you seeking?"
"Yes, but what about Portugal?"
"Is Portugal lazy?"
"It is, I cannot disagree with that."
"Is it disorganized?"
"To a degree that cannot be contested."
"Does it make war on itself? Does it harbor factions, sinecures or abuses?"
"Factions are tearing it apart, sinecures are thick on the ground and it is the very home of abuses."
"Therefore the reason for its misery is the same as for Robinson Crusoe."
"That is too simple. I cannot be satisfied with that. Le Moniteur industriel sees things in a quite different light. It is not among those who would explain poverty by quoting disorder and laziness. I would suggest therefore that you take the trouble to study economic science if you want to gain a proper understanding!"668
Endnotes658 (An unpublished outline) 1847. [DMH - This article has no date but was probably written sometime in 1847.]
659 [The French title is "Midi à quatorze heures" which is part of a French expression "Chercher midi à quatorze heures" (looking for midday at 2 o'clock) which means to look for complicated explanations when reality is simpler. The nearest English expression we could find was "to make a mountain out of a mole hill."]
660 The treaty of Methuen (named after one of the negotiators John Methuen) was a commercial treaty between England and Portugal signed in 1703 during the War of Spanish Succession (1701-1714). It allowed for the free entry of English textiles into Portugal and was thus wrongly accused of having caused a decline in the Portuguese economy. In return, Portuguese wine ("port") was subject to lower tariffs than French wine thus creating a new market for Portuguese port in England.
661 Bastiat might have in mind the Great Famine in Ireland, also known as the Irish Potato Famine, which took place between 1845-1852 as a result of the spread of a potato blight which ruined the crop. About one million Irish died and another million were forced to emigrate. The famine gave impetus to the Anti-Corn Law League's efforts to dismantle British trade barriers which kept cheaper imported food from reaching Ireland. There were also crop failures in France in 1846-47 which led to price rises and hardship for many people. See the glossary entry on "The Irish Famine and the Failures of French harvests 1846-47."
662 This line is spoken by Chrysale and comes from Molière's play Les Femmes savantes (The Learned Ladies) (1672). See Théatre 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. 70. See the glossary entry on "Molière."
663 Bastiat is making fun of the complex definitions used by Fourier in his social theory. For example, he categorizes the passions into three kinds, the Cabalist, the Papillonne (Butterfly), and the Composite. See Le Nouveau monde industriel et sociétaire ou invention du procédé d'industrie attrayante et naturelle, distribuée en séries passionnées (Paris: Bossange père, 1829), p. 283. He also lists Fourier's tendency to over categorize things like a preface (which goes before the main text), the postface (which goes after), the cisface (which is on this side), and the transface (which goes on the other side). See the glossary entry on "Fourier."
664 Bastiat is referring here to the activities of Robinson Crusoe which he used several times in the Economic Sophisms and the Economic Harmonies as a thought experiment to explore the nature of economic action. See the glossary entry on "Crusoe Economics."
665 (Paillottet's note) <TBK> See page 368 of chapter VIII of What is seen and what is not seen in Tome V.
666 Sybaris was an ancient Greek city in southern Italy which was renowned in the 6th century BC for its wealth and the luxurious living of its inhabitants.
667 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 October 1846. See the glossary entries on "Le Moniteur industriel," "Mimerel," and "Association for the Defense of National Employment".
668 <TBK> See number 39 above on page 219.
T.97 (1847.??) "Anglomania, Anglophobia"↩
SourceT.97 (1847.??) "Anglomania, Anglophobia" (Anglomanie, Anglophobie). A sketch from 1847. [OC7.74, pp. 309-27.] [CW1.2.1.5, pp. 320-34.] Also in [CW3 - ES3.14]
Editor's Note (to version in CW1)According to Paillottet, this outline dates from 1847. Bastiat had wished to make a chapter out of it for the second
series of Economic Sophisms, published at the end of the year.
These two sentiments stand face to face and it is hardly possible in this country to judge England impartially without being accused by anglomaniacs of anglophobia and by anglophobics of anglomania. It appears that public opinion, which in France goes beyond what was an ancient Spartan [321] law,5 condemns us to moral death if we do not rush headlong into one of these two extremes.
However, these two sentiments exist and are already of long standing. They therefore exist justifiably, for, in the world of sympathy and antipathy, as in the material world, there is no cause without an effect.
It is easy to verify that these two sentiments coexist. The great conflict between democracy and aristocracy, between common law and privilege, is continuing, both implicitly and openly, with more or less enthusiasm, with more or less opportunity, worldwide. However, nowhere, not even in France, does it resound as much as in England.
As I say, not even in France. Here, in fact, privilege as a social principle, was extinct before our revolution. In any case, it received its coup de grace on the night of 4 August.6 The equal sharing of property constantly undermines the existence of any leisured class. Idleness is an accident, the transitory lot of a few individuals, and whatever we may think of our political organization, it is always the case that democracy is the basis of our social order. Probably, the human heart does not change; those who achieve legislative power seek hard to create a small administrative fiefdom for themselves, whether electoral or economic, but nothing in all that takes root. From one session to another, the slightest hint of an amendment can overturn the whole fragile edifice, remove a whole raft of political appointments, eliminate protectionist measures, or change the electoral districts.
If we cast an eye on other great nations, such as Austria and Russia, we will see a very different situation. There, privilege based on brute force reigns with absolute authority. We can scarcely distinguish the dull murmur of democracy laboring away underground, like a seed that swells and grows far from all human sight.
In England, on the other hand, the two powers are full of force and vigor. I will say nothing of the monarchy, a kind of idol on which the two opposing factions have agreed to impose a sort of neutrality. But let us consider a little how the elements of force with which the aristocracy and democracy do battle are constituted and what the quality of their arms is.
The aristocracy has on its side legislative power. It alone can enter the [322] House of Lords7 and it has taken over the House of Commons, without one’s being able to say when and how it can be dislodged from it.
It has on its side the established church—all of whose positions have been taken over by the younger sons of great families—an institution unreservedly English or Anglican, as its name indicates, and unreservedly a political force, having the monarch as its head.
It has on its side the hereditary ownership of land and entails, which prevent the breaking up of estates. Through this, it is assured that its power, concentrated in a small number of hands, will never be dispersed and will never lose its characteristics.
Through its legislative power, it controls taxes, and its efforts naturally tend to transfer the fiscal burden onto the people while retaining the profit from them.
We thus see it commanding the army and the navy, that is to say, still wielding brute force. And the manner in which recruitment to these bodies is carried out guarantees that it will never transfer its support to the popular cause. We may further note that in military discipline there is something that is both energetic and degrading, which aspires to efface in the soul of the army any urge to share common human feelings.
By means of the wealth and material power of the country, the English aristocracy has been able successively to conquer all parts of the globe it considered to be useful for its security and policy. In doing this, it has been wonderfully supported by popular prejudice, national pride, and the economic sophism which attaches so many crazy hopes to the colonial system.
In a word, the entire British diplomatic corps is concentrated in the hands of the aristocracy, and as there are always sympathetic links between all the privileged groups and all the aristocratic classes around the world, since they are all based on the same social principles and what threatens one threatens the others, the result is that all the elements of the vast power I have just described are in perpetual opposition to the development of democracy, not only in England but all over the world.
This explains the War of Independence in the United States and the even more relentless war against the French Revolution,8 a war carried out using [323] not only steel but also and above all gold, used either to bribe alliances or spent to lead our democracy into excesses, social disorder, and civil war.
There is no need to go into further detail, to show the interest the English aristocracy might have had in stifling, at the same time as the very idea of democracy, any accompanying hints of forceful action, power, or wealth, anywhere. There is no need for a historical exposition of the action it carried out with regard to peoples in this respect, a policy which became known as the alternating balance of power, to show that anglophobia is not a sentiment that is totally blind and that it has, as I explained at the beginning, its own raison d’être.
As for anglomania, if it can be explained as stemming from a puerile sentiment, from the sort of fascination constantly exercised on superficial minds by the spectacle of wealth, power, energy, perseverance, and success, this is not what concerns me. I wish to speak about the serious reasons for sympathy which England is able rightly to generate in other countries.
I have just listed the powerful props of the English oligarchy, the ownership of land, the House of Lords, the House of Commons, taxes, the church, the army, the navy, the colonies, and diplomacy.
The forces of democracy possess nothing so clear and firm of purpose.
Democracy has on its side the power of the spoken word, the press, associations, work, the economy itself, increasing wealth, public opinion, a good cause, and truth.
I think that the progress of democracy is manifest. Look at the major breaches it has made in the walls of the opposing camp.
The English oligarchy, as I have said, had ownership of the land. It still has. But what it no longer has is a privilege grafted on this privilege, the Corn Laws.9
It had the House of Commons. It still has, but democracy has entered Parliament through the breach of the Reform Bill,10 a breach which is constantly widening.
It had the established church. It still has, but it is shorn of its exclusive [324] ascendancy by the increase in number and popularity of dissident churches11 and the Catholic Emancipation Bill.
It had control of taxation. It still has taxes at its disposal but, since 1815, all ministers, whether Whigs or Tories, have been constrained to go from reform to reform, and at the first financial difficulty, the provisional income tax will be converted into a permanent land tax.
It had the army. It still has, but everyone knows the avid concern of the English populace to be spared the sight of red uniforms.
It had the colonies. These provided its greatest moral authority, since it was with the illusory promises of the colonial system that it carried along a populace both swollen with pride and misled. And the people are breaking this link by acknowledging the chimerical nature of the colonial system.
Finally, I have to mention here another conquest the people have made, which is probably the greatest. For the very reason that the weapons of the people are public opinion, a good cause, and the truth, and for the additional reason that they possess in all its fullness the right of defending their cause in the press, through speeches and gatherings, the people could not fail to attract, and in fact they did attract, to their banner the most intelligent and honest of the aristocrats. For it should not be thought that the English aristocracy forms a compact unity, all of like mind. We see, on the contrary, that it is divided on all the major issues and, either through fear, social adroitness, or philanthropy, certain illustrious members of the privileged class are sacrificing part of their own privilege to the needs of democracy.
If those who take an interest in the ups and downs of this great struggle and the progress of the popular cause on British soil are to be called anglomaniacs, I declare that I am an anglomaniac.
For me there is just one truth and one justice, and equality takes the same form everywhere. I also think that liberty always produces the same results everywhere and that a fraternal and friendly link should unite the weak and oppressed in all countries.
I cannot fail to see that there are two Englands, since in England there are two bodies of sentiment, two principles, and two eternally conflicting causes.12
[325]I cannot forget that, although the aristocratic interest wanted to bend American independence beneath its yoke in 1776, it encountered in a few English democrats such resistance that it had to suspend freedom of the press, habeas corpus, and trial by jury.
I cannot forget that, although the aristocratic interest wanted to stifle our glorious revolution in 1791, it needed to set its army rabble on its own soil against the men of the people who opposed the perpetration of this crime against humanity.
I call those who admire the acts and gestures of the two parties without distinction anglomaniacs. I call those who envelop both in a blind, senseless disapproval, anglophobes.
At the risk of attracting to this little volume the hammer blows of unpopularity, I am forced to admit that this great, unending, and gigantic effort by democracy to burst the bonds of oppression and attain its rights in full, offers in my view particularly encouraging prospects in England which are not available in other countries, or at least not to the same degree.
In France, the aristocracy fell in ’89, before democracy was ready to govern itself. The latter had not been able to develop and perfect in all their aspects those qualities, robustness, and political virtues which alone could keep power in its hands and constrain it to make prudent and effective use of them. The result has been that all parties, all persons even, believed that they could inherit the aristocratic mantle, and conflict thus arose between the people and M. Decazes, the people and M. de Villèle, the people and M. de Polignac, and the people and M. Guizot. This conflict of petty proportions educates us on constitutional matters. On the day we become sufficiently emancipated nothing will prevent us from taking hold of the reins of management of our affairs, for the fall of our great antagonist, the aristocracy, will have preceded our political education.
The English people, on the contrary, are growing in stature and becoming proficient and enlightened through the struggle itself. Historic circumstances which it is pointless to recall here have paralyzed the use of physical force in its hands. It has to have recourse to the power of public opinion alone, and the first condition for making public opinion a power in itself was that the people should enlighten itself on each particular question until unanimity was achieved. Public opinion will not have to be formed after the conflict; it has been formed and is formed during, for, and by the conflict itself. It is always in Parliament that victory is won and the aristocracy is forced to sanction it. Our philosophers and poets shone before a revolution which they [326] prepared, but in England it is during the struggle that philosophy and poetry do their work. From within the popular party come forth great writers, powerful orators, and noble poets who are completely unknown to us. Here we imagine that Milton, Shakespeare, Young, Thompson, and Byron encompass the whole of English literature. We do not perceive that, because the struggle is ongoing, the chain of great poets is unbroken and the sacred fire inspires poets such as Burns, Campbell, Moore, Akenside, and a thousand others, who work unceasingly to strengthen democracy by enlightening it.
Another result of this state of affairs is that aristocracy and democracy confront each other with regard to all questions. Nothing is more likely to perpetuate and aggravate them than this. Something that elsewhere is just an administrative or financial debate is in this instance a social war. As far as one can tell, hardly a single question has sprung up in which the two great protagonists have not been at loggerheads. Henceforth, both sides make immense efforts to form alliances, to draft petitions, and to distribute pamphlets through mass subscription, far less over the issue itself than for the ever-present and living principles involved. This was seen, not only with regard to the Corn Laws, but regarding any law that touched on taxes, the church, the army, political order, education, foreign affairs, etc.
It is easy to understand that the English people have thus had to become accustomed, with regard to any measure, to going back to first principles and to basing discussion on this wide foundation. This being so, in general the two parties are opposite and mutually exclusive. It is a case of all or nothing, because both sides feel that to concede something, however small, is to concede the principle. Doubtless, when it comes to voting, bargains are sometimes struck. Reforms have naturally to be adapted to the times and circumstances, but in debates no one gives way and the invariable rule of democracy is this: take everything that is given and continue to demand the rest. And it has even had occasion to learn that its most certain course is to demand everything, for fifty years if necessary, rather than content itself with a little at the end of a few sessions.
Thus, the most rabid anglophobes cannot deceive themselves that reforms in England carry a quotient of radicalism, and therefore of grandeur, which astonishes and enthralls the mind.
The abolition of slavery13 was won in a single step. On a particular day, at [327] a particular time, the irons fell from the arms of poor blacks in all the possessions of Great Britain. It is related that, during the night of 31st July 1838, the slaves were gathered together in the churches of Jamaica. Their thoughts and hearts, their entire life seemed to be hanging on the hands of the clock. Vainly did the priest try to fix their attention on the most imposing subjects capable of capturing the human mind. Vainly did he speak to them of the goodness of God and their future destiny. There was but a single soul in the congregation and that soul was in a fever of expectation. When the gong sounded the first chime of midnight, a cry of joy such as the human ear had never heard before shook the rafters of the church. These poor creatures did not have enough words and gestures to express the exuberance of their joy. They rushed weeping into each other’s arms until, their paroxysm now calmed, they were seen to fall to their knees, raise their grateful arms to heaven, and cover with blessings the nation that had delivered them; the great men, Clarkson and Wilberforce, who had embraced their cause; and the Providence that had shone a ray of justice and humanity into the heart of a great people.
While fifty years were needed to achieve absolute personal freedom, a bargain, a truce, on political and religious freedom was reached more quickly. The Reform Bill and the Catholic Emancipation bill,14 which at first were supported as principles, were delivered as matters of expediency. Thus, England has still two major troubles to overcome, the people’s charter and the revocation of the established church as the official religion.
The campaign against protectionism is one of those that has been led by the leaders under the safeguard and authority of principle. The principle of freedom of trade is either true or false, and has to triumph or fall in its entirety. To strike a bargain would have been to acknowledge that property and liberty are not rights but, depending on the time and place, ancillary circumstances, whether useful or disastrous. To accept discussion on this ground would have been to deprive oneself of everything that constitutes authority and strength; it would have been to renounce having on one’s side the sense of justice that lives in every human heart. The principle of the freedom to trade has triumphed and has been applied to the things that are [328] necessary to life, and it will soon be applied to everything that can be traded internationally.
This cult of the absolute has been transferred to questions of a lesser order. When it was a matter of postal reform, the question was raised as to whether individual communications of thought, the expression of friendship, maternal love, or filial piety, were taxable matters. Public opinion replied in the negative and from that time on a radical, absolute reform has been pursued, with no worry as to whether the treasury would be embarrassed or in deficit in any way. The cost of carrying letters has been reduced to the smallest English coin, since this is enough to pay the state for the service rendered and reimburse it for its costs. And since the post still makes a profit, there should be no doubt that the cost of carrying letters would be reduced still further if there were in England a coin smaller than a penny.15
I admit that in this audaciousness and vigor there is a touch of greatness which causes me to follow with interest the debates in the English Parliament and, even more, the popular debates that take place in associations and meetings. This is where the future is worked out, where long discussions end up with the question “Are we hitting a fundamental principle?” And if the answer is affirmative, we may not know the day of its triumph but we can be sure that such triumph is assured.
Before returning to the subject of this chapter, anglomania and anglophobia, I must first warn the reader against a false interpretation that may insinuate itself into his mind. Although the conflict between aristocracy and democracy, ever present and lively at the center of each question, certainly gives heat and life to debates; although by delaying the solution and pushing it further away it contributes to the maturing of ideas and shapes the political habits of the people, it should not be concluded from this that I consider it an absolute disadvantage for my country not to have the same obstacles to overcome and consequently not to feel the same spur, not to enjoy the same mixture of vivacity and passion.
Principles are no less involved in our country than in England. The only thing is that our debates have to be much more general and humanitarian (since the word is sacred), just as, in our neighbor’s country, they have to be more national. The aristocratic obstacle, in their eyes, occurs in their country. For us, it is worldwide. There is nothing, of course, to prevent us from [329] taking principles to a height that England cannot yet reach. We do not do this, and this is a result solely of our inadequate degree of respect and devotion for principles.
If anglophobia were only a natural reaction in us against English oligarchy, whose policy is so dangerous to the nations and in particular to France, this would no longer be anglophobia but, and may I be forgiven for such a barbarous word (which is more than apposite since it combines two barbaric ideas), oligarcophobia.
Unfortunately, this is not so and the most constant occupation of our major newspapers is to arouse national sentiment against British democracy, against the working classes, who are demanding work, industry, wealth, and the development of their faculties and the strength necessary for their emancipation. It is precisely the growth of these democratic forces, the perfection of work, industrial superiority, the extension of the use of machines, commercial aptitude, and the accumulation of capital, it is precisely an increase of all of these forces, I say, that is represented to us as being dangerous, as being opposed to our own progress and implying as of necessity a proportional decrease in similar forces in our country.
This is the economic sophism16 I have to combat and it is through this that the subject I have just dealt with is linked to the spirit of this book and which may up to now have appeared to be a pointless digression.
First of all, if what I call here a sophism was a truth, how sad and discouraging it would be! If the progressive movement which is making an appearance in one part of the world caused a retrograde movement in another part, if the increase in wealth in one country was achieved at the expense of a corresponding loss spread over all the others, there would obviously be no progress possible overall and, in addition, all national jealousy would be justified. Vague ideas of humanity and fraternity would certainly not be enough to lead a nation to rejoice at progress achieved elsewhere, since such progress would have been attained at its expense. The enthusiasts of fraternity do not change the human heart to that extent, and according to the hypothesis I envisage, it is not even desirable. What element of honesty or delicacy would have me rejoice at one people’s elevation to having more than they need if, as a result, another people has to descend to below what they need? No, I am not bound either morally or religiously to carry out such an act of selflessness, even in the name of my country.
[330]This is not all. If this sort of pendulum was the law governing nations, it would also be the law governing provinces, communes, and families. National progress is no different from individual progress, from which it can be seen that if the axiom with which I am concerned were a truth and not a sophism, there would not be a man on earth who would not constantly have to strive to stifle the progress of all the others, only to meet in others the same effort made against himself. This general conflict would be the natural state of society and Providence, in decreeing that the benefit of one is the loss of another, would have condemned mankind to an endless war and humanity to an invariably primitive condition.
There is no proposition in social science, therefore, that it is more important to elucidate. It is the keystone of the entire edifice. It is absolutely necessary to grasp the true nature of progress and the influence that the progressive condition of one people has on the condition of other peoples. If it were demonstrated that progress in a given constituency has as its cause or effect a proportional depression in the rest of the human race, nothing would remain to us but to burn our books, abandon all hope in the general good, and enter into the universal conflict with the firm determination to be crushed as little as possible while crushing the others as much as we can. This is not an exaggeration; it is the most rigorous logic, that which is the most often applied. A political measure that is so close to the axiom that the profit of one person is the loss of another, because it is the incarnation of this, the Navigation Act of Great Britain was situated openly in the quotation of the famous words of its preamble: It is necessary for England to crush Holland or be crushed by her. And we have seen, La Presse quotes the same words to have the same measure adopted in France. Nothing is simpler, as soon as there is no other alternative, for peoples, as for individuals, than to crush or be crushed, from which we can see the point at which error and atrocity achieve fusion.
But the sad axiom that I mention is well worth being opposed in a special chapter. It is, in effect, not a matter of opposing vague declamations on humanity, charity, fraternity, and self-sacrifice to it. It needs to be destroyed by a demonstration that is, so to speak, mathematical. While being determined to devote a few pages to this task, I will pursue what I have to say about anglophobia.
I have said that this sentiment, insofar as it is linked to this Machiavellian policy which the English oligarchy has caused to weigh for so long on [331] Europe, was justifiable, with its own raison d’être, and should not even be labeled anglophobia.
It deserves this name only when it envelops in the same hatred both the aristocracy and that part of English society that has suffered as much as or more than we from oligarchic predominance and resisted it, the working class, which was initially weak and powerless but which grew sufficiently in wealth, strength, and influence to carry along in its wake part of the aristocracy and hold the other in check, the class to which we should be holding out a hand, whose sentiments and hopes we should share if we were not restrained by the deadly and discouraging thought that the progress it owes to work, industry, and commerce is a threat to our prosperity and independence, and threatens it in another form but as thoroughly as do the policies of the Walpoles, Pitts, etc., etc.
This is how anglophobia has become generalized, and I admit that I can view only with disgust the means that have been used to maintain and arouse it. The first means is simple but no less odious; it consists in taking advantage of the diversity of languages. Advantage has been taken of the fact that English is little known in France to persuade us that all English literature and journalism consisted only of outrages, insults, and calumnies perpetually vomited out against France, from which France could not fail to conclude that, on the other side of the Channel, she was the object of general and inextinguishable hatred.
In this we were marvelously served by the boundless freedom of the press and speech which exists in this neighboring country. In England, as in France, there is no question on which opinion is not divided, so that it is always possible, on every occasion, to uncover an orator or a newspaper that has covered the question from the point of view that hurts us. The odious tactic of our newspapers has been to extract from these speeches and writings the passages most likely to humiliate our national pride and quote them as an expression of public opinion in England, taking very good care to keep under wraps everything said or written giving the opposite view, even by the most influential newspapers and the most popular orators. The result has been what it would be in Spain if the press of that entire country agreed to take all quotations from our newspapers from La Quotidienne.
Another means, which has been employed very successfully, is silence. Each time a major question has caused organized resistance in England and was likely to reveal whatever existed in that country in the way of life, enlightenment, [332] warmth, and sincerity, you could be sure that our newspapers would be determined to prevent the fact reaching the general public in France, by their silence, and when they have thought it necessary, they have imposed ten years of silence on themselves. As extraordinary as it may seem, English resistance against protectionism bears this out.
Finally, another patriotic fraud that has been widely used is false translation, with the addition, removal, and substitution of words. This ability to alter the meaning and the spirit of the discourse has meant that there is no limit to the indignation that can be aroused in the minds of our fellow countrymen. For example, when they found gallant French meaning “brave Frenchmen” (“gallant” being the word vaillant which was transferred to England and to which the only change made was that of the initial V to G, as opposed to the inverse change made to the words garant, “warrant”; guêpe, “wasp”; guerre, “war”), it was enough to translate it thus: “effeminate, philandering, corrupt nation.” Sometimes they went so far as to substitute the word hatred for the word friendship and so on.17
On this subject, may I be allowed to relate the origin of the book I published in 1845 under the title of Cobden and the League.
I was living in a village in the heart of the Landes. In this village, there is a discussion group, and I would probably greatly surprise the members of the Jockey Club if I quoted here the budget of our modest association. However, I dare to believe that there reigns there an uninhibited gaiety and zest that would not dishonor the sumptuous salons of the boulevard des Italiens. Be that as it may, in our circle we do not only laugh, we also discuss politics (which is quite different), for please note that we have two newspapers there. This shows that we were strong patriots and anglophobes of the first order. As for me, as steeped in English literature as one could be in the village, I had seriously suspected that our newspapers were exaggerating somewhat the hatred that, according to them, the word French aroused in our neighbors and I sometimes happened to express doubts in this regard. [333] “I cannot understand,” I said, “why the spirit that reigns in journalism in Great Britain does not reign in its books.” But I was always defeated, proof in hand or no.
One day, the most anglophobic of my colleagues, with eyes alight with fury, showed me the newspaper and said, “Read this and see.” I read in effect that the prime minister of England had ended a speech by saying, “We will not adopt this measure. If we adopted it, we would fall, like France, to the lowest rank of all the nations.” A patriotic flush rose to my cheeks.
However, on reflection, I said to myself, “It seems very extraordinary that a minister, the leader of a cabinet, a man who because of his position has to speak with such reserve and measure, would allow himself to utter an uncalled-for insult, which nothing has motivated, provoked, or justified. Mr. Peel does not think that France has fallen to the lowest rank of all the nations and, even if he thought that, he would not say so, in open Parliament.”
I wanted to be sure of my facts. The same day, I wrote to Paris to subscribe to an English newspaper,18 asking for the subscription to be backdated one month.
A few days later, I received about thirty issues of the Globe. I hurriedly searched for the unfortunate statement by Mr. Peel and I saw that it was as follows, “We could not adopt this measure without descending to the lowest rank of all the nations.” The words like France were missing.
That put me on the right track and I have been able to ascertain since then a number of other pious frauds in our journalists’ method of translating.
But that is not all I learned from the Globe. For two years, I was able to follow the development and progress of the League.
At that time, I was an ardent supporter, as I am today, of the cause of free trade, but I considered it to be lost for centuries, since it is no more spoken of in our country than it probably was in China in the last century. Imagine my surprise and joy on learning that this great question had grabbed people’s attention across the length and breadth of England and Scotland, and on reading about this uninterrupted succession of huge meetings,19 and the energy, perseverance, and enlightenment of the leaders of this admirable association!
But what surprised me even more was to see that the League was spreading, growing, and spilling floods of light over England, monopolizing the [334] attention of ministers and Parliament, without a word of mention in our newspapers!
Naturally I suspected that there was some correlation between this absolute silence on such a serious matter and the system of pious frauds in translation.
Naively thinking that it was sufficient for this silence to be broken just once for it not to persist any longer, I decided, trembling, to become a writer, and I sent a few articles on the League to La Sentinelle in Bayonne. However, the Paris newspapers paid not the slightest attention to them. I set about translating a few speeches by Cobden, Bright, and Fox and sent them to Paris newspapers themselves; they did not print them. “It is not to be tolerated,” I said to myself, “that the day on which free trade is proclaimed in England should surprise us in our ignorance. I have only one course, that is to write a book. . . .”
In Sparta, every newborn child was examined by the elders. If he was judged fit, he was left with his mother; otherwise, he was thrown into a pit.
On the night of 4 August 1789, the National Assembly suppressed all the privileges of the nobility and the clergy, with their agreement, in a moment of great enthusiasm.
The House of Lords was composed of hereditary peers, twenty-six Anglican prelates, sixteen Scottish peers, and an indefinite number of peers appointed by the king.
Great Britain had been at war with France from February 1793 to March 1802, at the head of two European coalitions.
The Corn Laws were abolished in February 1846. The story leading up to this abolition is related in Cobden and the League.
The Reform Bill of 1832 put an end to the most unfair rules of the previous electoral law and permitted some elements of the middle class to vote for the first time. The franchise was further extended in 1867 and 1885.
The Anglican faith was a national church, the Church of England, the religion of the state itself. All other churches, called dissenting, had been legally tolerated since 1689.
Bastiat wrote about “two Englands” in an article in Le Libre échange, 6 February 1848. (OC, vol. 3, p. 459, “Deux Angleterres.”)
The bill abolishing slavery was voted in 1833, and it was to come into effect fully in 1838.
The First Reform Act of 1832 allowed middle-class people to vote for the first time in England. The Catholic Emancipation Act of 1829 removed many but not all restrictions on Catholics in the United Kingdom.
The Uniform Penny Post system was introduced throughout the United Kingdom in 1840.
Economic Sophisms.
(Paillottet’s note) One might plead an attenuating circumstance on behalf of French newspapers. It was, I think, particular ignorance, defensiveness, or inadvertence rather than calculation which figured in the majority of the misdeeds for which Bastiat reproaches them. If we examine, for example, the letters which he had to send to two of the leaders of Parisian journalism, the editors of La Presse and Le National, it will be clear that these two papers did not grasp either the progress or the importance of the debate on the Corn Laws in England. See letters to the editors of La Presse. [OC, vol. 7, p. 143, “Au redacteur de La Presse”; and p. 152, “Au redacteur du National.”]
The Globe and Traveller.
In English in the original.
XIV. Anglomania, Anglophobia619 [c. 1847] [final draft]↩
Publishing history- Original title, place and date of publication: "Anglomanie, Anglophobie" (Anglomania, Anglophobia) [no date given]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (2nd ed. 1862-64), Vol. 7: Essais, ébauches, correspondence (1864), pp. 309-27.
- Previous translation: [none]
These two sentiments stand face to face and it is hardly possible in this country to judge England impartially without being accused by anglomaniacs of anglophobia and by anglophobics of anglomania. It appears that public opinion, which in France goes beyond what was an ancient Spartan law,620 condemns us to moral death if we do not rush headlong into one of these two extremes.
However, these two sentiments exist and are already of long standing. They therefore exist justifiably, for, in the world of sympathy and antipathy, as in the material world, there is no cause without an effect.
It is easy to verify that these two sentiments coexist. The great conflict between democracy and aristocracy, between common law and privilege, is continuing, both implicitly and openly, with more or less enthusiasm, with more or less opportunity, worldwide. However, nowhere, not even in France, does it resound as much as in England.
As I say, not even in France. Here, in fact, privilege as a social principle, was extinct before our revolution. In any case, it received its coup de grace on the night of 4 August.621 The equal sharing of property constantly undermines the existence of any leisured class. Idleness is an accident, the transitory lot of a few individuals, and whatever we may think of our political organization, it is always the case that democracy is the basis of our social order. Probably, the human heart does not change; those who achieve legislative power seek hard to create a small administrative fiefdom for themselves, whether electoral or economic, but nothing in all that takes root. From one session to another, the slightest hint of an amendment can overturn the whole fragile edifice, remove a whole raft of political appointments, eliminate protectionist measures, or change the electoral districts.
If we cast an eye on other great nations, such as Austria and Russia, we will see a very different situation. There, privilege based on brute force reigns with absolute authority. We can scarcely distinguish the dull murmur of democracy laboring away underground, like a seed that swells and grows far from all human sight.
In England, on the other hand, the two powers are full of force and vigor. I will say nothing of the monarchy, a kind of idol on which the two opposing factions have agreed to impose a sort of neutrality.622 But let us consider a little how the elements of force with which the aristocracy and democracy do battle are constituted and what the quality of their arms is.623
The aristocracy has on its side legislative power. It alone can enter the House of Lords624 and it has taken over the House of Commons, without one's being able to say when and how it can be dislodged from it.
It has on its side the established church—all of whose positions have been taken over by the younger sons of great families—an institution unreservedly English or Anglican, as its name indicates, and unreservedly a political force, having the monarch as its head.
It has on its side the hereditary ownership of land and entails, which prevent the breaking up of estates. Through this, it is assured that its power, concentrated in a small number of hands, will never be dispersed and will never lose its characteristics.
Through its legislative power, it controls taxes, and its efforts naturally tend to transfer the fiscal burden onto the people while retaining the profit from them.
We thus see it commanding the army and the navy, that is to say, still wielding brute force. And the manner in which recruitment to these bodies is carried out guarantees that it will never transfer its support to the popular cause. We may further note that in military discipline there is something that is both energetic and degrading, which aspires to efface in the soul of the army any urge to share common human feelings.
By means of the wealth and material power of the country, the English aristocracy has been able successively to conquer all parts of the globe it considered to be useful for its security and policy. In doing this, it has been wonderfully supported by popular prejudice, national pride, and the economic sophism which attaches so many crazy hopes to the colonial system.625
In a word, the entire British diplomatic corps is concentrated in the hands of the aristocracy, and as there are always sympathetic links between all the privileged groups and all the aristocratic classes around the world, since they are all based on the same social principles and what threatens one threatens the others, the result is that all the elements of the vast power I have just described are in perpetual opposition to the development of democracy, not only in England but all over the world.
This explains the War of Independence in the United States and the even more relentless war against the French Revolution,626 a war carried out using not only steel but also and above all gold, used either to bribe alliances or spent to lead our democracy into excesses, social disorder, and civil war.
There is no need to go into further detail, to show the interest the English aristocracy might have had in stifling, at the same time as the very idea of democracy, any accompanying hints of forceful action, power, or wealth, anywhere. There is no need for a historical exposition of the action it carried out with regard to peoples in this respect, a policy which became known as the alternating balance of power, to show that anglophobia is not a sentiment that is totally blind and that it has, as I explained at the beginning, its own raison d'être.
As for anglomania, if it can be explained as stemming from a puerile sentiment, from the sort of fascination constantly exercised on superficial minds by the spectacle of wealth, power, energy, perseverance, and success, this is not what concerns me. I wish to speak about the serious reasons for sympathy which England is able rightly to generate in other countries.
I have just listed the powerful props of the English oligarchy, the ownership of land, the House of Lords, the House of Commons, taxes, the church, the army, the navy, the colonies, and diplomacy.
The forces of democracy possess nothing so clear and firm of purpose.
Democracy has on its side the power of the spoken word, the press, associations, work, the economy itself, increasing wealth, public opinion, a good cause, and truth.
I think that the progress of democracy is manifest. Look at the major breaches it has made in the walls of the opposing camp.
The English oligarchy, as I have said, had ownership of the land. It still has. But what it no longer has is a privilege grafted on this privilege, the Corn Laws.627
It had the House of Commons. It still has, but democracy has entered Parliament through the breach of the Reform Bill,628 a breach which is constantly widening.
It had the established church. It still has, but it is shorn of its exclusive ascendancy by the increase in number and popularity of dissident churches629 and the Catholic Emancipation Bill.630
It had control of taxation. It still has taxes at its disposal but, since 1815, all ministers, whether Whigs or Tories, have been constrained to go from reform to reform, and at the first financial difficulty, the provisional income tax will be converted into a permanent land tax.
It had the army. It still has, but everyone knows the avid concern of the English populace to be spared the sight of red uniforms.
It had the colonies. These provided its greatest moral authority, since it was with the illusory promises of the colonial system that it carried along a populace both swollen with pride and misled. And the people are breaking this link by acknowledging the chimerical nature of the colonial system.
Finally, I have to mention here another conquest the people have made, which is probably the greatest. For the very reason that the weapons of the people are public opinion, a good cause, and the truth, and for the additional reason that they possess in all its fullness the right of defending their cause in the press, through speeches and gatherings, the people could not fail to attract, and in fact they did attract, to their banner the most intelligent and honest of the aristocrats. For it should not be thought that the English aristocracy forms a compact unity, all of like mind. We see, on the contrary, that it is divided on all the major issues and, either through fear, social adroitness, or philanthropy, certain illustrious members of the privileged class are sacrificing part of their own privilege to the needs of democracy.
If those who take an interest in the ups and downs of this great struggle and the progress of the popular cause on British soil are to be called anglomaniacs, I declare that I am an anglomaniac.
For me there is just one truth and one justice, and equality takes the same form everywhere. I also think that liberty always produces the same results everywhere and that a fraternal and friendly link should unite the weak and oppressed in all countries.
I cannot fail to see that there are two Englands, since in England there are two bodies of sentiment, two principles, and two eternally conflicting causes.631
I cannot forget that, although the aristocratic interest wanted to bend American independence beneath its yoke in 1776, it encountered in a few English democrats such resistance that it had to suspend freedom of the press, habeas corpus, and distort trial by jury.
I cannot forget that, although the aristocratic interest wanted to stifle our glorious revolution in 1791, it needed to set its army rabble on its own soil against the men of the people who opposed the perpetration of this crime against humanity.
I call those who admire the acts and gestures of the two parties without distinction anglomaniacs. I call those who envelop both in a blind, senseless disapproval, anglophobes.
At the risk of attracting to this little volume the hammer blows of unpopularity, I am forced to admit that this great, unending, and gigantic effort by democracy to burst the bonds of oppression and attain its rights in full, offers in my view particularly encouraging prospects in England which are not available in other countries, or at least not to the same degree.
In France, the aristocracy fell in '89, before democracy was ready to govern itself. The latter had not been able to develop and perfect in all their aspects those qualities, robustness, and political virtues which alone could keep power in its hands and constrain it to make prudent and effective use of them. The result has been that all parties, all persons even, believed that they could inherit the aristocratic mantle, and conflict thus arose between the people and M. Decazes, the people and M. de Villèle, the people and M. de Polignac, and the people and M. Guizot.632 This conflict of petty proportions educates us on constitutional matters. On the day we become sufficiently emancipated nothing will prevent us from taking hold of the reins of management of our affairs, for the fall of our great antagonist, the aristocracy, will have preceded our political education.
The English people, on the contrary, are growing in stature and becoming proficient and enlightened through the struggle itself. Historic circumstances which it is pointless to recall here have paralyzed the use of physical force in its hands. It has to have recourse to the power of public opinion alone, and the first condition for making public opinion a power in itself was that the people should enlighten itself on each particular question until unanimity was achieved. Public opinion will not have to be formed after the conflict; it has been formed and is formed during, for, and by the conflict itself. It is always in Parliament that victory is won and the aristocracy is forced to sanction it. Our philosophers and poets shone before a revolution which they prepared, but in England it is during the struggle that philosophy and poetry do their work. From within the popular party come forth great writers, powerful orators, and noble poets who are completely unknown to us. Here we imagine that Milton, Shakespeare, Young, Thompson, and Byron encompass the whole of English literature. We do not perceive that, because the struggle is ongoing, the chain of great poets is unbroken and the sacred fire inspires poets such as Burns, Campbell, Moore, Akenside, and a thousand others, who work unceasingly to strengthen democracy by enlightening it.633
Another result of this state of affairs is that aristocracy and democracy confront each other with regard to all questions. Nothing is more likely to perpetuate and aggravate them than this. Something that elsewhere is just an administrative or financial debate is in this instance a social war. As far as one can tell, hardly a single question has sprung up in which the two great protagonists have not been at loggerheads. Henceforth, both sides make immense efforts to form alliances, to draft petitions, and to distribute pamphlets through mass subscription, far less over the issue itself than for the ever-present and living principles involved. This was seen, not only with regard to the Corn Laws, but regarding any law that touched on taxes, the church, the army, political order, education, foreign affairs, etc.
It is easy to understand that the English people have thus had to become accustomed, with regard to any measure, to going back to first principles and to basing discussion on this wide foundation. This being so, in general the two parties are opposite and mutually exclusive. It is a case of all or nothing, because both sides feel that to concede something, however small, is to concede the principle. Doubtless, when it comes to voting, bargains are sometimes struck. Reforms have naturally to be adapted to the times and circumstances, but in debates no one gives way and the invariable rule of democracy is this: take everything that is given and continue to demand the rest. And it has even had occasion to learn that its most certain course is to demand everything, for fifty years if necessary, rather than content itself with a little at the end of a few sessions.
Thus, the most rabid anglophobes cannot deceive themselves that reforms in England carry a quotient of radicalism, and therefore of grandeur, which astonishes and enthralls the mind.
The abolition of slavery634 was won in a single step. On a particular day, at a particular time, the irons fell from the arms of poor blacks in all the possessions of Great Britain. It is related that, during the night of 31st July 1838, the slaves were gathered together in the churches of Jamaica. Their thoughts and hearts, their entire life seemed to be hanging on the hands of the clock. Vainly did the priest try to fix their attention on the most imposing subjects capable of capturing the human mind. Vainly did he speak to them of the goodness of God and their future destiny. There was but a single soul in the congregation and that soul was in a fever of expectation. When the gong sounded the first chime of midnight, a cry of joy such as the human ear had never heard before shook the rafters of the church. These poor creatures did not have enough words and gestures to express the exuberance of their joy. They rushed weeping into each other's arms until, their paroxysm now calmed, they were seen to fall to their knees, raise their grateful arms to heaven, and cover with blessings the nation that had delivered them; the great men, Clarkson and Wilberforce, 635who had embraced their cause; and the Providence that had shone a ray of justice and humanity into the heart of a great people.
While fifty years were needed to achieve absolute personal freedom, a bargain, a truce, on political and religious freedom was reached more quickly. The Reform Bill and the Catholic Emancipation bill, which at first were supported as principles, were delivered as matters of expediency. Thus, England has still two major troubles to overcome, the people's charter and the revocation of the established church as the official religion.
The campaign against protectionism is one of those that has been led by the leaders under the safeguard and authority of principle. The principle of freedom of trade is either true or false, and has to triumph or fall in its entirety. To strike a bargain would have been to acknowledge that property and liberty are not rights but, depending on the time and place, ancillary circumstances, whether useful or disastrous. To accept discussion on this ground would have been to deprive oneself of everything that constitutes authority and strength; it would have been to renounce having on one's side the sense of justice that lives in every human heart. The principle of the freedom to trade has triumphed and has been applied to the things that are necessary to life, and it will soon be applied to everything that can be traded internationally.
This cult of the absolute has been transferred to questions of a lesser order. When it was a matter of postal reform,636 the question was raised as to whether individual communications of thought, the expression of friendship, maternal love, or filial piety, were taxable matters. Public opinion replied in the negative and from that time on a radical, absolute reform has been pursued, with no worry as to whether the treasury would be embarrassed or in deficit in any way. The cost of carrying letters has been reduced to the smallest English coin, since this is enough to pay the state for the service rendered and reimburse it for its costs. And since the post still makes a profit, there should be no doubt that the cost of carrying letters would be reduced still further if there were in England a coin smaller than a penny.
I admit that in this audaciousness and vigor there is a touch of greatness which causes me to follow with interest the debates in the English Parliament and, even more, the popular debates that take place in associations and meetings. This is where the future is worked out, where long discussions end up with the question "Are we hitting a fundamental principle?" And if the answer is affirmative, we may not know the day of its triumph but we can be sure that such triumph is assured.
Before returning to the subject of this chapter, anglomania and anglophobia, I must first warn the reader against a false interpretation that may insinuate itself into his mind. Although the conflict between aristocracy and democracy, ever present and lively at the center of each question, certainly gives heat and life to debates; although by delaying the solution and pushing it further away it contributes to the maturing of ideas and shapes the political habits of the people, it should not be concluded from this that I consider it an absolute disadvantage for my country not to have the same obstacles to overcome and consequently not to feel the same spur, not to enjoy the same mixture of vivacity and passion.
Principles are no less involved in our country than in England. The only thing is that our debates have to be much more general and humanitarian (since the word is sacred), just as, in our neighbor's country, they have to be more national. The aristocratic obstacle, in their eyes, occurs in their country. For us, it is worldwide. There is nothing, of course, to prevent us from taking principles to a height that England cannot yet reach. We do not do this, and this is a result solely of our inadequate degree of respect and devotion for principles.
If anglophobia were only a natural reaction in us against English oligarchy, whose policy is so dangerous to the nations and in particular to France, this would no longer be anglophobia but, and may I be forgiven for such a barbarous word (which is more than apposite since it combines two barbaric ideas), oligarcophobia.
Unfortunately, this is not so and the most constant occupation of our major newspapers is to arouse national sentiment against British democracy, against the working classes, who are demanding work, industry, wealth, and the development of their faculties and the strength necessary for their emancipation. It is precisely the growth of these democratic forces, the perfection of work, industrial superiority, the extension of the use of machines, commercial aptitude, and the accumulation of capital, it is precisely an increase of all of these forces, I say, that is represented to us as being dangerous, as being opposed to our own progress and implying as of necessity a proportional decrease in similar forces in our country.
This is the economic sophism I have to combat and it is through this that the subject I have just dealt with is linked to the spirit of this book and which may up to now have appeared to be a pointless digression.
First of all, if what I call here a sophism was a truth, how sad and discouraging it would be! If the progressive movement which is making an appearance in one part of the world caused a retrograde movement in another part, if the increase in wealth in one country was achieved at the expense of a corresponding loss spread over all the others, there would obviously be no progress possible overall and, in addition, all national jealousy would be justified. Vague ideas of humanity and fraternity would certainly not be enough to lead a nation to rejoice at progress achieved elsewhere, since such progress would have been attained at its expense. The enthusiasts of fraternity do not change the human heart to that extent, and according to the hypothesis I envisage, it is not even desirable. What element of honesty or delicacy would have me rejoice at one people's elevation to having more than they need if, as a result, another people has to descend to below what they need? No, I am not bound either morally or religiously to carry out such an act of selflessness, even in the name of my country.
This is not all. If this sort of pendulum was the law governing nations, it would also be the law governing provinces, communes, and families. National progress is no different from individual progress, from which it can be seen that if the axiom with which I am concerned were a truth and not a sophism, there would not be a man on earth who would not constantly have to strive to stifle the progress of all the others, only to meet in others the same effort made against himself. This general conflict would be the natural state of society and Providence, in decreeing that one man's gain is another man's loss,637 would have condemned mankind to an endless war and humanity to an invariably primitive condition.
There is no proposition in social science, therefore, that it is more important to elucidate. It is the keystone of the entire edifice. It is absolutely necessary to grasp the true nature of progress and the influence that the progressive condition of one people has on the condition of other peoples. If it were demonstrated that progress in a given constituency has as its cause or effect a proportional depression in the rest of the human race, nothing would remain to us but to burn our books, abandon all hope in the general good, and enter into the universal conflict with the firm determination to be crushed as little as possible while crushing the others as much as we can. This is not an exaggeration; it is the most rigorous logic, that which is the most often applied. A political measure that is so close to the axiom that the profit of one person is the loss of another, because it is the incarnation of this, the Navigation Act638 of Great Britain was situated openly in the quotation of the famous words of its preamble:639 It is necessary for England to crush Holland or be crushed by her. And we have seen, La Presse640 quotes the same words to have the same measure adopted in France. Nothing is simpler, as soon as there is no other alternative, for peoples, as for individuals, than to crush or be crushed, from which we can see the point at which error and atrocity achieve fusion.641
But the sad saying that I mention is well worth being opposed in a special chapter.642 It is, in effect, not a matter of opposing vague declamations on humanity, charity, fraternity, and self-sacrifice to it. It needs to be destroyed by a demonstration that is, so to speak, mathematical. While being determined to devote a few pages to this task, I will pursue what I have to say about anglophobia.
I have said that this sentiment, insofar as it is linked to this Machiavellian policy which the English oligarchy has caused to weigh for so long on Europe, was justifiable, with its own raison d'être, and should not even be labeled anglophobia.
It deserves this name only when it envelops in the same hatred both the aristocracy and that part of English society that has suffered as much as or more than we from oligarchic predominance and resisted it, the working class, which was initially weak and powerless but which grew sufficiently in wealth, strength, and influence to carry along in its wake part of the aristocracy and hold the other in check, the class to which we should be holding out a hand, whose sentiments and hopes we should share if we were not restrained by the deadly and discouraging thought that the progress it owes to work, industry, and commerce is a threat to our prosperity and independence, and threatens it in another form but as thoroughly as do the policies of the Walpoles, Pitts, etc., etc.643
This is how anglophobia has become generalized, and I admit that I can view only with disgust the means that have been used to maintain and arouse it. The first means is simple but no less odious; it consists in taking advantage of the diversity of languages. Advantage has been taken of the fact that English is little known in France to persuade us that all English literature and journalism consisted only of outrages, insults, and slanders perpetually vomited out against France, from which France could not fail to conclude that, on the other side of the Channel, she was the object of general and inextinguishable hatred.
In this we were marvelously served by the boundless freedom of the press and speech which exists in this neighboring country. In England, as in France, there is no question on which opinion is not divided, so that it is always possible, on every occasion, to uncover an orator or a newspaper that has covered the question from the point of view that hurts us. The odious tactic of our newspapers has been to extract from these speeches and writings the passages most likely to humiliate our national pride and quote them as an expression of public opinion in England, taking very good care to keep under wraps everything said or written giving the opposite view, even by the most influential newspapers and the most popular orators. The result has been what it would be in Spain if the press of that entire country agreed to take all quotations from our newspapers from La Quotidienne.644
Another means, which has been employed very successfully, is silence. Each time a major question has caused organized resistance in England and was likely to reveal whatever existed in that country in the way of life, enlightenment, warmth, and sincerity, you could be sure that our newspapers would be determined to prevent the fact reaching the general public in France, by their silence, and when they have thought it necessary, they have imposed ten years of silence on themselves. As extraordinary as it may seem, English agitation against the protectionist regime bears this out.
Finally, another patriotic fraud that has been widely used is false translation, with the addition, removal, and substitution of words. This ability to alter the meaning and the spirit of the discourse has meant that there is no limit to the indignation that can be aroused in the minds of our fellow countrymen. For example, when they found gallant French meaning "brave Frenchmen" ("gallant" being the word vaillant which was transferred to England and to which the only change made was that of the initial V to G, as opposed to the inverse change made to the words garant, "warrant"; guêpe, "wasp"; guerre, "war"), it was enough to translate it thus: "effeminate, philandering, corrupt nation." Sometimes they went so far as to substitute the word hatred for the word friendship and so on.645
On this subject, may I be allowed to relate the origin of the book I published in 1845 under the title of Cobden and the League.
I was living in a village in the heart of Les Landes. In this village, there is a discussion group, and I would probably greatly surprise the members of the Jockey Club if I quoted here the budget of our modest association. However, I dare to believe that there reigns there an uninhibited gaiety and zest that would not dishonor the sumptuous salons of the boulevard des Italiens. Be that as it may, in our circle we do not only laugh, we also discuss politics (which is quite different), for please note that we have two newspapers there. This shows that we were strong patriots and anglophobes of the first order. As for me, as steeped in English literature as one could be in the village, I had seriously suspected that our newspapers were exaggerating somewhat the hatred that, according to them, the word French aroused in our neighbors and I sometimes happened to express doubts in this regard. "I cannot understand," I said, "why the spirit that reigns in journalism in Great Britain does not reign in its books." But I was always defeated, proof in hand or no.
One day, the most anglophobic of my colleagues, with eyes alight with fury, showed me the newspaper and said, "Read this and see." I read in effect that the prime minister of England had ended a speech by saying, "We will not adopt this measure. If we adopted it, we would fall, like France, to the lowest rank of all the nations." A patriotic flush rose to my cheeks.
However, on reflection, I said to myself, "It seems very extraordinary that a minister, the leader of a cabinet, a man who because of his position has to speak with such reserve and measure, would allow himself to utter an uncalled-for insult, which nothing has motivated, provoked, or justified. Mr. Peel646 does not think that France has fallen to the lowest rank of all the nations and, even if he thought that, he would not say so, in open Parliament."
I wanted to be sure of my facts. The same day, I wrote to Paris to subscribe to an English newspaper,647 asking for the subscription to be backdated one month.
A few days later, I received about thirty issues of the Globe. I hurriedly searched for the unfortunate statement by Mr. Peel and I saw that it was as follows, "We could not adopt this measure without descending to the lowest rank of all the nations." The words like France were missing.
That put me on the right track and I have been able to ascertain since then a number of other pious frauds in our journalists' method of translating.
But that is not all I learned from the Globe. For two years, I was able to follow the development and progress of the League.648
At that time, I was an ardent supporter, as I am today, of the cause of free trade, but I considered it to be lost for centuries, since it is no more spoken of in our country than it probably was in China in the last century. Imagine my surprise and joy on learning that this great question had grabbed people's attention across the length and breadth of England and Scotland, and on reading about this uninterrupted succession of huge meetings,649 and the energy, perseverance, and enlightenment of the leaders of this admirable association!
But what surprised me even more was to see that the League was spreading, growing, and spilling floods of light over England, monopolizing the attention of ministers and Parliament, without a word of mention in our newspapers!
Naturally I suspected that there was some correlation between this absolute silence on such a serious matter and the system of pious frauds in translation.
Naively thinking that it was sufficient for this silence to be broken just once for it not to persist any longer, I decided, trembling, to become a writer, and I sent a few articles on the League to La Sentinelle in Bayonne. However, the Paris newspapers paid not the slightest attention to them. I set about translating a few speeches by Cobden, Bright, and Fox650 and sent them to Paris newspapers themselves; they did not print them. "It is not to be tolerated," I said to myself, "that the day on which free trade is proclaimed in England should surprise us in our ignorance. I have only one course, that is to write a book. . . ."
Endnotes619 (Paillottet's note) This sketch dates from 1847. The author wished to use it as a chapter in the second series of the Economic Sophisms which appeared at the end of the year. [DMH - This essay originally appeared in volume 1 of the Collected Works, pp. 320-34. It is reproduced here because it was intended to be an economic sophism and we wanted our collection of the Economic Sophisms to be as complete as possible.]
620 In Sparta, every newborn child was examined by the elders. If he was judged fit, he was left with his mother; otherwise, he was thrown into a pit.
621 On the night of 4 August 1789, the National Assembly suppressed all the privileges of the nobility and the clergy, with their agreement, in a moment of great enthusiasm.
622 When the Revolution broke out in February 1848 and the Second Republic was declared Bastiat demonstrated his strong support for the principles of republicanism in his revolutionary journal La République française. See the Appendix "Bastiat's Republicanism" and "A Few Words about our Journal The French Republic."
623 See a similar discussion about the struggle between the bourgeoisie and the aristocracy in ES3 VI. "The People and the Bourgeoisie", above, pp. ???
624 The House of Lords was composed of hereditary peers, twenty-six Anglican prelates, sixteen Scottish peers, and an indefinite number of peers appointed by the king.
625 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." See also the glossary entry on "Algeria."
626 Great Britain had been at war with France from February 1793 to March 1802, at the head of two European coalitions.
627 The Corn Laws were introduced by Parliament in the seventeenth century to maintain a high price for corn (in the British context this meant grain, especially wheat) by preventing the importation of cheaper foreign grain altogether or by imposing a duty on it in order to protect domestic producers from competition. The Corn Laws were abolished in February 1846 as a result of agittion by the Anti-Corn Law League led by Richard Cobden. The story leading up to this abolition is related in Cobden and the League. See the glossary entries on "The Corn Laws," "Cobden," and "The Anti-Corn Law League."
628 The Reform Bill of 1832 put an end to the most unfair rules of the previous electoral law and permitted some elements of the middle class to vote for the first time. The franchise was further extended in 1867 and 1885.
629 The Anglican faith was a national church, the Church of England, the religion of the state itself. All other churches, called dissenting, had been legally tolerated since 1689.
630 The Catholic Emancipation Act of 1829 removed many but not all restrictions on Catholics in the United Kingdom.
631 (Paillottet's note) See the article entitled Deux Angleterre, t. III, p. 459. [Bastiat wrote about "two Englands" in an article in Le Libre échange, 6 February 1848. (OC, vol. 3, p. 459, "Deux Angleterres.")]
632 Bastiat lists here four of the most powerful political figures during the Restoration (1815-1830) and the July Monarchy (1830-1848). Elie Decazes, duc de Glücksberg (1780-1860) was Minister of the interior between 1815 and 1820 and briefly Prime Minister in 1819. Jean-Baptiste Villèle, comte de (1773-1854) was the leader of the ultralegitimists and became prime minister in 1822. Auguste-Jules-Armand-Marie Polignac, prince de (1780-1847 was an ultraroyalist politician who served in various capacities during the restoration of the Bourbon monarchy after 1815. He was appointed ambassador to England in 1823, minister of foreign affairs in 1829, and prime minister by Charles X just prior to the outbreak of the July revolution in 1830. François Guizot (1787-1874) was part of the "doctrinaires," a group of conservative and moderate liberals. He served as foreign minister and prime minister, becoming in practice the leader of the government from 1840 to 1848.
633Bastiat lists here a selection of lesser poets and playwrights who also contributed to the development of English and Scottish literature, such as Mark Akenside (1721-1770), Edward Moore (1712-1757), and Thomas Campbell (1777-1844). The exception of course is the famous Scottish poet Robert Burns (1759-1796).?
634 The slave was abolished in 1807. A bill abolishing slavery in the British colonies was voted in 1833, and it came into effect fully in 1838.
635 Thomas Clarkson (1760-1846) and William Wilberforce (1759–1833) were two of the leaders in the long campaign to abolish slavery in England which they succeeded doing in two stages: first the abolition of the slave trade in 1807, and then the abolition of the institution of slavery in the British colonies in 1833.
636 Rowland Hill (1795-1879) pioneered reform of the British postal system in 1839 and 1842 with the introduction of a cheap, pre-paid system of postage - the uniform "penny post." See the glossary entry on "Hill."
637 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, below, 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. See the glossary entry on "Montaigne."
638 The Navigation Acts were a lynch pin of the British policy of mercantilism from its introduction in 1651 to its abolition in 1849. The Navigation Act Bill was passed by Oliver Cromwell's government to prevent merchandise from being imported into Britain if it was not transported by British ships or ships from the producer countries. The first act applied to commerce within Europe and generated a war with Holland (1652-1654). See the glossary on "The Navigation Acts."
639 check this? can't find reference
640 La Presse (1836-) was a widely distributed daily newspaper, created in 1836 by the journalist, businessman, and politician Émile de Girardin (1806-81). Girardin was one of the creators of the modern press and pioneered the publication of novels in serial form which made his newspaper very successful. See the glossary entry on "La Presse."
641 Bastiat devotes an entire sophism to the inappropriate use of military metaphors in discussions about the economy in ES1 XXII. "Metaphors", above pp. ???
642 Bastiat only ever wrote a very short draft of this proposed chapter. We include this short sophism below, ES3 15, pp. ???
643 Robert Walpole, Earl of Oxford (1676-1745) became a Member of Parliament in 1700 and was several times a minister. He became chancellor of the exchequer in 1721. William Pitt (the Younger) (1759-1806) became a Member of Parliament in 1781, chancellor of the exchequer in 1782, and prime minister from 1783 to 1801 and 1804 to 1806. Pitt was a Tory and a strong opponent of the French Revolution.
644 La Quotidienne (1814-1847) was a very influential ultraroyalist newspaper during the Restoration.
645 (Paillottet's note) One might plead an attenuating circumstance on behalf of French newspapers. It was, I think, particular ignorance, defensiveness, or inadvertence rather than calculation which figured in the majority of the misdeeds for which Bastiat reproaches them. If we examine, for example, the letters which he had to send to two of the leaders of Parisian journalism, the editors of La Presse and Le National, it will be clear that these two papers did not grasp either the progress or the importance of the debate on the Corn Laws in England. See letters to the editors of La Presse. [OC, vol. 7, p. 143, "Au redacteur de La Presse"; and p. 152, "Au redacteur du National."]
646 Sir Robert Peel (1788-1850) was the leader of the Tories, served as Home Secretary under the Duke of Wellington (1822–27) and was prime minister twice (1834–35, 1841–46). He is best known for creating the Metropolitan Police Force in London, the Factory Act of 1844 which regulated the working hours of women and children in the factories, and the repeal of the Corn Laws in May 1846. See the glossary entry "Peel."
647 The Globe and Traveller was founded by an Irish journalist Edward Quin (?-1823) in 1803 with the aim of serving the needs of commercial travellers.
648 The Anti–Corn Law League was founded in 1838 by Richard Cobden and John Bright in Manchester. The aim of the League was to repeal the law restricting the import of grain (Corn Laws) which it achieved in 1846. See the glossary entry on "The Anti-Corn Law League."
649 In English in the original.
650 Richard Cobden (1804-65) was one of the founders of the Anti-Corn Law League in 1838. He became a successful textile manufacturer before he began a movement to repeal the protectionist the Corn Laws in England which he achieved in 1846. Toward the end of the 1850s, he was asked by the government to negotiate a freedom of exchange treaty with France. His French counterpart was Michel Chevalier, a minister of Napoléon III and a friend and admirer of Bastiat. The treaty (the Cobden–Chevalier Treaty) was signed by Cobden and Chevalier in 1860. See the glossary entry on "Cobden." John Bright (1811-89) was a manufacturer from Lancashire and a leading member of the Anti-Corn Law League. He was elected to Parliament in 1843 and in 1869 he became minister of the Board of Trade in the Gladstone Cabinet. William Johnson Fox (1786-1864) was a journalist and a renowned orator who became one of the most popular speakers of the Anti-Corn Law League. He served in Parliament from 1847 to 1863.
T.98 (1847.??) "Plan for a Speech on Free Trade to be given in Bayonne"↩
SourceT.98 (1847.??) "Plan for a Speech on Free Trade to be given in Bayonne" (Projet de discours libre-échangiste à prononcer à Bayonne). Liely late 1847, no date, unpublished. [OC7.38, pp. 178-93.] [CW6]
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T.99 (1847.??) "One Man's gain is another Man's Loss"↩
SourceT.99 (1847.??) "One Man's gain is another Man's Loss" (Le profit de l'un est le dommage de l'autre). No date given but probably 1847. [OC7.75, pp. 327-28.] [CW3 - ES3.15]
XV. One Man's gain is another Man's loss651 (c. 1847)↩
Publishing history- Original title, place and date of publication: "Le profit de l'un est le dommage de l'autre" (One Man's gain is another Man's Loss) [no date given]
- Published as book or pamphlet: [not applicable]
- Location in Paillottet's edition: Oeuvres complètes (2nd ed. 1862-64), Vol. 7: Essais, ébauches, correspondence (1864), pp. 327-28.
- Previous translation: [none]
Let me speak of a standard sophism, one that is the very root652 of a host of sophisms, one that is like a polyp which you can cut into a thousand pieces only to see it produce a thousand more sophisms, a sophism that offends alike against humanity, Christianity, and logic, a sophism which is a Pandora's box from which have poured out all the ills of the human race, in the form of hatred, mistrust, jealousy, war, conquest and oppression, and from which no hope can spring.
Oh you, Hercules, who strangled Cacus! You, Theseus, who killed the Minotaur! You, Apollo, who killed Python the serpent! I ask you all to lend me your strength, your club and your arrows, so that I can destroy the monster that has been arming men against one another for six thousand years!
Alas, there is no club capable of crushing a sophism. It is not given to arrows, nor even to bayonets, to pierce a proposition. All the cannons in Europe gathered at Waterloo could not eliminate an entrenched idea from the hearts of nations. No more could they efface an error. This task is reserved for the least weighty of all weapons, the very symbol of weightlessness, the pen.
For this reason, neither the gods nor the demi-gods of antiquity should be invoked.
If I wished to speak from the heart, I would take inspiration from the Founder of the Christian religion. Since I am speaking to people's intellects and the matter in hand is to try to produce definitive, formal argument, I will stand under the banner of Euclid and Bezout,653 while calling for help from Turgots,654 Says, 655Tracys656 and Charles Comtes of this world.657 People will say that this is not very lively. What does it matter, provided that the argument advanced is successful? ...
Endnotes651 (Paillottet's Note) Draft written in 1847. The author stopped at this short preamble to the chapter he had promised in the previous draft. He quickly realized that one chapter was not enough for the refutation he planned. A book was needed, and so he wrote the Harmonies. (French editor's note). [DMH - It appeared in vol. 7 of the Oeuvres complètes (Essais. Ébauches. Correspondance) edited by Paillottet (2nd ed. 1864), pp. 327-28.]
652 Bastiat uses the phrase "sophisme souche" (the root stock of sophisms). Note that he uses the word "souche" in the made up name he gave to the tax collector M. Lasouche in ES2 X. "The Tax Collector" below, pp. ??? We translated this as "Mr. Blockhead."
653 Euclid was an ancient Greek geometer who lived in the 4th century B.C. and whose book The Elements was the standard work on geometry for hundreds of years. Étienne Bezout(1730-1783) was a French mathematician who is best known for his general theory of algebraic equations. See the glossary entry on "Bezout."
654 Anne Robert Jacques Turgot, baron de Laulne (1727–81) was an economist of the physiocratic school, a politician, reformist bureaucrat, and economist. He was appointed by Louis XVI as minister of finance between 1774 and 1776 during which time he attempted to reduce regulations and taxation. See the glossary entry "Turgot."
655 Jean-Baptiste Say (1767–1832) was the leading French political economist in the first third of the nineteenth century. He is best known for his Traité d'économie politique (1803), which went through many editions (and revisions) during his lifetime. See the glossary entry "J.B. Say."
656 Antoine Destutt de Tracy (1754–1836) was one of the leading intellectuals of the 1790s and early 1800s and a member of the "ideologue" school of thought. His Treatise of Political Economy was translated by Thomas Jefferson in 1817 as was his book on Montesquieu, A Commentary on the Spirit of Laws (1819). See the glossary entry "Destutt de Tracy."
657 Charles Comte (1782–1837) was one of the leading liberal theorists before the 1848 revolution who founded, with Charles Dunoyer, the journal Le Censeur in 1814 and Le Censeur européen in 1817. In 1826 he published the first part of his magnum opus, a four-volume Traité de législation, which very much influenced the thought of Bastiat, and in 1834 he published the second part, Traité de la propriété. See the glossary entry "Charles Comte."
T.100 (1847.01.03) "Limits which the Free Trade Association imposes" (LE, Jan. 1847)↩
SourceT.100 (1847.01.03) "Limits which the Free Trade Association imposes" (Bornes que s'impose l'Association pour la liberté des échanges), Le Libre-Échange, 3 Jan. 1847, no. 6, p. 43. [OC2.3, pp. 7-11.] [CW6]
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T.101 (1847.01.15) "Organisation and Liberty" (JDE, Jan. 1847)↩
SourceT.101 (1847.01.15) "Organisation and Liberty" (Organisation et liberté), Journal des Économistes, T. XVI, Janvier 1847, no. 62, pp. 106-13. [OC2.27, pp. 147-58.] [CW6]
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T.102 (1847.01.17) "The Utopian" (LE, Jan. 1847)↩
SourceT.102 (1847.01.17) "The Utopian" (L'utopiste), Le Libre-Échange, 17 Jan. 1847, no. 8, pp. 63-64; also ES2.11. [OC4, pp. 203-12.] [CW3 - ES2.11]
XI. The Utopian344 [17 January 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "L'utopiste (The Utopian) [Le Libre-Échange, 17 January 1847].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 203-12.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
"If only I were one of His Majesty's Ministers! …"345
"Well, what would you do?"346
"I would begin by ... by … goodness me, by being highly embarrassed. For when it comes down to it, I would be Minister only because I had a majority; I would have a majority only because I had made myself one and I would have made myself one, honestly at least, only by governing in accordance with their ideas. … Therefore, if I undertook to ensure that my ideas prevailed by thwarting theirs I would no longer have a majority, and if I did not have a majority I would not be one of His Majesty's Ministers."
"Let me suppose that you are a Minister and that consequently having a majority is not an obstacle for you; what would you do?"
"I would seek to establish on which side justice was to be found."
"And then?"
"I would seek to establish on which side utility was to be found."
And next?
"I would seek to find out whether they were in harmony [??? - ils s'accordent they are in agreement] or in conflict with one another."
"And if you found that they were not in harmony?" [??? - ils ne s'accordent pas - they were not in agreement]
"I would say to King Philip:
Take back your portfolio.
The rhyme is not rich and the style outdated.
But do you not see that that is much better
Than the transactions whose common sense is just a murmur,
And that honesty speaks these in its purest form?347
"But if you acknowledge that justice and utility are one and the same?"
"Then I would go right ahead."
"Very well. But to achieve utility through justice, a third element is needed."
"Which is?"
"Opportunity."
"You have given it to me."
"When?"
"A short time ago."
"How?"
"By granting me a majority."
"No wonder it seemed to me that this concession was highly risky, since in the end it implies that the majority clearly sees what is just and what is useful and clearly sees that they are in perfect harmony."
"And if it saw all these things clearly, good would be done, so to speak, automatically."
"This is where you are constantly leading me: to see the possibility of reform only through the general progress of reason."
"Which is like saying that as a result of this progress all reform is certain."
"Perfectly put. However, this preliminary progress takes rather a long time to be implemented. Let us suppose it has been accomplished. What would you do? The fact is I cannot wait to see you at work, doing things, involved in the actual practice."
"Firstly, I would reduce the postage tax to 10 centimes."348
"I had heard you mention before 5 centimes.349"
"Yes, but since I have other reforms in view, I must advance prudently in order to avoid a deficit."
"Good heavens! What prudence! You are already in deficit to the tune of 30 million!"
"Then I would reduce the salt tax to 10 fr."350
"Good! Here you are now, with a deficit of 30 million more. Doubtless you have invented a new tax?"
"God forbid! Besides, I do not flatter myself that I have a sufficiently inventive mind."
"But you need one… Ah! I am with you! What was I thinking of? You will simply reduce expenditure. I did not think of that."
"You are not the only one - I will come to that, but for the moment that is not what I am counting on."
"Oh yes! You are reducing revenue without reducing expenditure and you will avoid a deficit?"
"Yes, by reducing other taxes at the same time."
(Here the questioner, placing his index finger on the side of his forehead, nods his head, which may be translated thus: he is off his head.)
"I do believe that this is an ingenious maneuver! I pay 100 francs to the Treasury, you save me 5 francs on salt and 5 francs on postage and in order for the Treasury to receive no less than 100 francs, you are saving me 10 francs on some other tax?"
"Shake my hand, you have understood me."
"The devil take me if I have! I am not even sure I have heard you correctly."
I repeat that I will balance one reduction in tax with another.
"Heavens above! I have a few minutes to spare; I might as well listen to your development of this paradox."
"This is the entire mystery. I know of a tax that costs you 20 francs and of which not a sou comes in to the Treasury. I save you half of it and direct the other half to the Rue de Rivoli351."
"Really! You are a financier of a rare variety. There is only one problem. On what, may I ask, am I paying a tax that does not reach the Treasury?"
"How much has this suit cost you?"
"100 francs."
"And if you had brought in the cloth from Verviers352, how much would it have cost you?"
"80 francs."
"Why then did you not order it from Verviers?"
"Because it is forbidden."353
"And why is this forbidden?"
"In order for the suit to cost me 100 francs instead of 80."
"This prohibition will therefore cost you 20 francs?"
"Without doubt."
"And where do these 20 francs go?"
"Where do they go? To the cloth manufacturer."
"Well then! Give me 10 francs for the Treasury, I will lift the prohibition and you will still save 10 francs."
"Oh, oh! I now begin to see. Here is the Treasury account: it loses 5 francs on the post, 5 francs on salt and gains 10 francs on woolen cloth. It is thus quits."
"And here is your account: you save 5 francs on salt, 5 francs on the post and 10 francs on woolen cloth."
"A total of 20 francs. I quite like this plan. But what will become of the poor manufacturer of cloth?"
"Oh! I have thought of him. I am arranging compensation for him, still through tax reductions that provide profit for the Treasury, and what I have done for you with regard to cloth, I will do for him with regard to wool, coal, machines, etc., so that he will be able to reduce his price without losing out."
"But are you sure that things will remain in balance?"
"The balance will be in his favor. The 20 francs I save you on cloth will be increased by the sums I will also save you on wheat, meat, fuel, etc. This will become quite considerable, and savings like this will be made by the thirty five million of your fellow citizens. There will be enough there to buy out the supplies of cloth from Verviers and Elbeuf354 alike. The nation will be better dressed, that is all."
"I will think about this, as it is becoming quite confused in my mind."
"After all, with regard to clothing, the essential thing is to be clothed. Your limbs are your own property and not the property of the manufacturer. Protecting them from freezing is your business and not his! If the law takes his side against you the law is unjust, and you have allowed me to reason on the premise that anything that is unjust is harmful."
"Perhaps I have been too bold, but please continue to set out your financial plan."
"I will therefore promulgate a law on Customs Duties."
"In two folio volumes?"355
"No, in two articles."
"This time, no one will be able to say that the well-known saying "No one is supposed to be ignorant of the law" is a fiction. Let us see what your tariffs will be."
"Here they are:
Article 1. All goods imported will pay a tax of 5 percent on their value."356
"Even raw materials?
"Unless they have no value."
"But all of them have some value, more or less."
"In this case they will pay more or less."
"How do you expect our factories to compete with foreign factories that have raw materials duty free?"
"Given the expenditure of the State, if we close down this source of revenue, another will have to be opened up; this will not reduce the relative inferiority of our factories and there will be one more administrative department to create and pay for."
"That is true. I was reasoning as though it was a question of abolishing the tax and not of displacing it. I will think about this. Let us have your second article …"
"Article 2. All goods exported will pay a tax of 5 percent of their value."
"Good heavens, Mr. Utopian! You are going to be stoned, and if necessary I will throw the first stone."
"We have agreed that the majority is enlightened."
"Enlightened! Do you maintain that an export duty will not be a burden?"
"Any tax is a burden, but this is less of a burden than others."
"A great deal of eccentric behaviour is to be expected at carnival time.357 Be so good as to make this new paradox plausible, if you can."
"How much have you paid for this wine?"
"One franc a liter."
"How much would you have paid for it outside the tollgates?"358
"Fifty centimes."359
"Why is there this difference?"
"Ask the city tolls, which have levied ten sous on it."
"And who set up the city tolls?"
"The Commune of Paris, in order to pave and light the streets."
"It is therefore an import duty. But if the bordering communes had set up the city tolls for their benefit, what would have happened?"
"I would still pay 1 franc for my 50-centime wine and the other 50 centimes would pave and light Montmartre and the Batignoles360."
"So that in the end, it is the consumer who pays the tax."
"There is no doubt about this."
"Therefore, by imposing an export tax, you make foreigners pay for your expenditure.
"I have caught you out. That is no longer justice."
"Why not? For a product to be made, the country has to have education, security, and roads, things that cost money. Why should foreigners not pay for the charges generated by this product since he, in the long run, is the one who will be consuming it?"
"This runs counter to established ideas."
"Not in the slightest. The final purchaser has to reimburse all the direct or indirect production costs."
"Whatever you say, it is crystal clear that a measure like this would paralyze commerce and close off our markets."
"That is an illusion. If you paid this tax on top of all the others, you would be right. But if the 100 million raised by this avenue saved them from paying as much by way of other taxes, you would reappear on foreign markets with all your previous advantages, and even more, if this tax generated fewer restrictions and less expenditure."
"I will think about this. So, now we have settled salt, the postal services and customs duties. Is this all?"
"I have scarcely begun."
"I beg you, let me into your other Utopian plans."361
"I have lost 60 million on salt and the postal services. I have recovered them on Customs duties, which have given me something even more precious."
"And what is that, if you please?"
"International relationships based on justice, and the likelihood of peace, which is almost a certainty. I would disband the army."362
"The entire army?"
"Except for some specialized divisions, which would recruit voluntarily just like any other profession. And as you can see, conscription would be abolished."363
"Sir, you should say recruitment."364
"Ah, I was forgetting! I admire the ease with which in certain countries it is possible to perpetuate the most unpopular things by giving them a different name."365
"It is just like combined duties which have become indirect contributions."366
"And gendarmes who have adopted the name municipal guards."
"In short, you are disarming the country based on a Utopian faith."
"I said that I was disbanding the army and not that I was disarming the country.367 On the contrary, I intend to give it an invincible force."
"How are you going to sort out this heap of contradictions?"
"I will call on the services of all citizens."368
"It is really not worth the trouble of discharging a few of them in order to call up everyone."
"You did not make me a Minister for me to leave things as they are. Therefore, when I come to power I will say, like Richelieu369: "The maxims of the State have changed." And my first maxim, which will form the basis of my administration, will be this: "Every citizen must know two things: how to provide for his own existence and how to defend his country"."
"At first sight, I really think that there is a spark of common sense in this."
"Following this, I would base national defense on a law with two articles:
Article 1. All eligible citizens, without exception, will remain under the flag for four years, from the ages of 21 to 25, in order to receive military instruction."
"That is a fine saving! You dismiss 400,000 soldiers and you make 10 million of them!"
"Wait for my second article.
Article 2. Unless they can prove at the age of 21 that they have successfully attended a training unit."
"I was not expecting this outcome. It is quite certain that, to avoid four years of military service, there would be a terrific rush in our youth to learn "by the right, quick march" and "in double quick time, charge". The idea is very odd."
"It is better than that. For finally, without causing grief to families and without upsetting the principle of equality, would it not simply and cheaply ensure the country 10 million defenders capable of meeting a coalition of all the standing armies in the world?"
"Truly, if I were not on my guard, I would end up by being interested in your fantasies."
The Utopian becomes excited: "Thank heavens; my budget has been reduced by 200 million!370 I will abolish city tolls, I will reform indirect taxes, I …"
"Just a minute Mr. Utopian!"
The Utopian becomes increasingly excited: "I will proclaim the freedom of religion371 and freedom of education.372 New projects: I will purchase the railways,373 I will pay off the debt,374 and I will starve stockjobbing of its profits."375
"Mr. Utopian!"
"Freed from responsibilities which are too numerous to mention, I will concentrate all of the forces of government on repressing fraud and distributing prompt and fair justice to all, I …"
"Mr. Utopian, you are taking on too much, the nation will not follow you!"
"You have given me a majority."
"I withdraw it."
"About time, too! So I am no longer a Minister, and my plans remain what they are, just so many UTOPIAS."
Endnotes344 (Paillottet's note) Taken from the issue of Le Libre-Echange dated 17th January 1847. [DMH - Note that Molinari, under the "nom de plume" of "le Rêveur" (the Dreamer), wrote an appeal to socialists for solidarity in their joint struggle for prosperity and justice. He published this only a few days before the June Days rioting in 1848 under the title "L'Utopie de la liberté. Lettres aux socialistes" (The Utopia of Liberty. Letters to the Socialist). This was ignored of course in the chaos of the aftermath of the crackdown by Cavaignac's troops. See Molinari, "L'Utopie de la liberté. Lettres aux socialistes" JDE, 15 June, 1848, vol. XX, pp. 328-32.]
345 Bastiat also wrote what might be called "political sophisms" to debunk fallacies of a political nature, especially concerning electoral politics and the ability of political leaders to initiate fundamental reforms. Good examples of the former are "Electoral Sophisms" and "The Elections" in CW1, pp. 397-404, 404-9; and of the latter are "The Tax Collector" and "The Utopian" in this volume. See "The Political or Electoral Sophisms" in Appendix 1 "Further Aspects of Bastiat's Life and Thought."
346 Fifteen months after this article was written Bastiat was elected to the Constituent Assembly of the Second Republic after the Revolution of February 1848. He was subsequently appointed vice-president of the Chamber's Finance Committee where he, as the resident "Utopian" on the committee, attempted to enact his tax cutting measures proposed here. See the Appendix on "Bastiat's Activities in the National Assembly 1848-50." Also see ES3 XXI. "Circulars from a Government that is Nowhere to be Seen", below p. ???, for some of Bastiat's sarcastic comments about the usefulness of the Provisional Government in the days immediately following the Revolution in February 1848.
347 Bastiat again parodies this scene from Molière's play The Misanthrope (1666), Act I Scene II. Alceste is a misanthrope who is trying to tell Oronte, a foolish nobleman, that his verse is poorly written and worthless. Here Bastiat replaces "King Henry" with "King Louis Philippe", and "Paris" with "portfolio", and the word ""colifichets" (trinkets or baubles) with "transactions" and the word "Passion" with "honesty". 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. 4 (Paris: Librairie des bibliophiles, 1882), p. 86. See the glossary entry on "Molière."
348 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 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. See C.S. "Postes, DEP, vol. 2, pp. 421-24, and the Appendix on "French Government Finances in 1848-49."
349 (Paillottet's note) The author had indeed mentioned 5 centimes in May 1846 in an article in Le Journal des Economistes, which became chapter XII of the second series of the Sophisms.
350 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 food. It was abolished during the 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. 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. Bastiat's proposed cut to 10 centimes in January 1847 was the same level adopted by the new government in 1848. See E. de Parieu, "Sel", DEP, vol. 2, pp. 606-09. See the Appendix on "French Government Finances in 1848-49" and the glossary entry on "French Taxes."
351 The Ministry of Finance was located in Rue de Rivoli.
352 Verviers is a textile manufacturing city in eastern Belgium in the province of Liège. Its textile industry dates from the 15th century. It suffered a serious decline when Liège was annexed to France in 1795. It revived after the Restoration and became one of the major industrial cities producing woollen cloth in the 19th century.
353 French tariffs on manufactured goods such as textiles were very complex. In the case of textiles many goods were prohibited outright in order to protect French manufacturers. Some products used to manufacture other goods, such as cotton thread used to make lace or tulle, were allowed entry upon payment of a tariff of 7-8 fr. per kilogramme. Most finished goods had prohibitive duties imposed upon them such as 50-100 fr. per piece in the case of cashmere scarves and 550 f. per 100 kilogramme for wool carpets. According to the Budget Papers of 1848 the French state raised fr. 202.1 million from tariffs and import duties out of total receipts of fr. 1,391 million, or 14.5%. See Horace Say, "Douanes, " DEP, vol. 1, pp. 578-604; the glossary entries on "French Tariff Policy" and "French Government Finances in 1848-49."
354 Elbeuf is an industrial town in northern France on the Seine river to the south of Rouen.
355 This is a snide reference by Bastiat to the three very large volumes on French tariffs which was produced by the inquiry conducted by the protectionist "Conseil supérieur du commerce" (Superior Council of Commerce) in 1835. See "Superior Council of Commerce" in Appendix 2 "The French State and Politics."
356 For Bastiat and other 19th century free traders the figure of 5% was regarded as a kind of magic number, below which tariffs were acceptable for revenue raising purposes only (since there were no income taxes at this time), above which tariffs were unacceptable as they were then regarded as "protectionist", giving advantages to politically well-connected manufactures at the expense of the consuming public. British aggregate tariff rates (excluding fiscal goods) peaked at about 15% in 1836 and began dropping in 1840 reaching a low point of about 6% in 1847 (the abolition of the Corn Laws was announced in January 1846), and continuing to drop steadily throughout the rest of the century reaching a plateau of less than 1% between 1880 and 1903. France had a rate of about 12% in 1836 and it was still around 11% in 1848 before it began to drop steadily reaching 5% in 1857 before spiking briefly to 7.5% in 1858, then 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. Throughout this period the United States had an internal free market but high tariffs for external trade. 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% which is definitely a "protectionist" tariff and not a "fiscal" tariff according to Bastiat's definition of a 5% limit. See the glossary entry on "French Tariff Policy."
357 Carnival is a festive season which occurs in many Catholic countries in February (or late December in the case of France) with public parades, the wearing of masks and costumes, and revelry which often expresses the temporary overturning of traditional authority (or at least the mocking of it). In Paris the carnival is called "la fête des fous" (feast of fools) and dates back to at least the 16th century. It was memorably described in Victor Hugo's novel The Hunchback of Notre Dame (1831) in which Quasimodo is appointed the King of Fools.
358 King Louis XVI had 57 "barrières d'octroi" (tollgates) built around the outskirts of the city of Paris where goods coming into the city could be inspected and taxed. See "French Taxation" in Appendix 3 "Economic Policy and Taxation."
359 In 1845 the city of Paris raised fr. 49 million from the "octroi" (entry tax) which was imposed on all goods which entered the city. 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). Say, Horace Émile Say (1794-1860) was the son of Jean-Baptiste Say, a businessman, president of the Chamber of Commerce of Paris in 1834. Say was also very active in liberal circles: he participated in the foundation of the Société d'économie politique, the Guillaumin publishing firm, and Le Journal des économistes. See the glossary entries on "Say, Horace" and "French Taxes."
360 Montmartre and Les Batignoles were independent communes at the time. They became incorporated into Paris in 1860.
361 See the glossary entry on "Utopias."
362 In the pamphlet What is Seen and What is Not Seen, or Political Economy in One Lesson (July 1850) [see below] Bastiat proposes to cut the size of the French Army immediately by 100,000 men from its total in 1849 of about 390,000 men (a cut of 25.6%). The expenditure on the army in 1849 was fr. 346,319,558. Total government expenditure in 1849 was fr. 1.573 billion with expenditure on the armed forces making up 29.6% of the total budget. Bastiat roughly estimates that 100,000 soldiers cost the French state fr. 100 million. See note below, pp. ??? See the Appendix on "French Government Finances in 1848-49."
363 The modern mass conscript army was pioneered by the French during the Revolution. A law of August 1793 ordered a "levée en masse" of all unmarried men aged between 18-25 with no substitution allowed - this was called a "requisition." A law of September 1798 (the Jourdan law) made it obligatory for all males between the ages of 20 and 25 to serve 5 years in the army with no substitution allowed - this was called "conscription" or "levée forcée." Conscription was technically abolished under the Charter of 1814 but when new legislation was enacted in 1818 it filled the army with a mixture of voluntary recruits and others chosen by lot to make up any shortfall in enlistment - this was called "recrutement". It required military service for 12 years, six in the army and six in the reserves. An unwilling conscript could buy their way out by paying a thirty party to take their place. There were also many categories for exemption which were decided by boards in the local Cantons which were given quotas of recruits to fill each year. The length of service was reduced to 8 years in 1824 and then 7 years in 1832. Some 80,000 new recruits were needed each year to maintain the size of the French Army (Armée de terre) at its full strength of about 400,000 men in the late 1840s. During the Third Republic (1872) service in the army was again made compulsory for all males. Conscription came to an end in France in 1996. See A. Legoyt, "Recrutement," DEP, vol. 2, pp. 498-503; "Conscription," in Dictionnaire de l'armée de terre: ou recherches historiques sur l'art et les usages militaires des anciens et des modernes, Volume 3, ed. Etienne Alexandre Bardin and Oudinot de Reggio (Paris: Perrotin, 1841), pp. 1539-1542. See the glossary on "The French Army and Conscription."
364 It was a common practice for those conscripted by the drawing of lots ("tirage au sort") to pay for a replacement or substitute to take their place in the ranks. The liberal publisher and journalist 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. This meant that only quite well off men could afford to pay these amounts to avoid army service, thus placing a greater burden on poor agricultural workers and artisans. See Émile de Girardin, Les 52: Abolition de l'esclavage militaire. Bibliothèque démocratique, Volume 9 of Les 52, (Paris: M. Lévy, 1849). "Le remplacement militaire," pp. 66-84.
365 This is a reference to the different names given to the forced enlistment of men in the French Army. It was called "requisition" in 1793, "conscription" in 1798, and more euphemistically, "recrutement," during the Restoration and the July Monarchy. During the 1848 Revolution there was a pamphlet war calling for the abolition of conscription but this was unsuccessful. See Plus de conscription! (Signé: Allyre Bureau, l'un des rédacteurs de "la Démocratie pacifique") (Paris: Impr. de Lange Lévy, 1848) and Émile de Girardin, Les 52: Abolition de l'esclavage militaire. (Paris: M. Lévy, 1849).
366 Many indirect taxes on consumer goods were abolished in the early years of the Revolution only to be reintroduced by Napoleon who centralized their collection in 1804 by a single administrative body under the name of "droits réunis" (combined duties). In the Restoration the Charter of 1814 promised to abolish both the "droits réunis" and conscription but these promises were not kept. The old indirect taxes were just renamed as "contributions indirectes" (indirect contributions) although they were imposed at a slightly reduced rate. In 1848 the state received fr. 307.9 million in indirect "contributions" (taxes) out of a total of fr. 1.391 billion, or 22% of all revenue. These taxes were levied on drink, salt, sugar, tobacco, gun powder, and other goods. See the Appendix on "French Government Finances in 1848-49"; Charles Coquelin, "Droits réunis," DEP, vol. 1, p. 619; and H. Passy, "Impôt," DEP, vol. 1, pp. 898-914, and the glossary entry on "French Taxes.".
367 Bastiat called for simultaneous disarmament of all nations and a corresponding reduction of taxation in his speech at the Second General Peace Congress held in Paris on the 22nd, 23rd and 24th of August, 1849. Émile de Girardin summarized the resolutions of the 1849 Paris Peace Congress as follows: "reduction of armies to 1/200th of the size of the population of each state, the abolition of compulsory military service, the freedom of (choosing one's) vocation, the reduction of taxes, and balanced budgets." Since France's population in 1849 was about 36 million this would mean a maximum size of the French armed forces of 180,000. It was then made up of 389,967 men and 95,687 horses for the Armée de terre, and 69,490 men and 2,051 horses for the Navy and the armed forces in the colonies, for a combined total of 459,457 men and 97,738 horses. Thus, Bastiat and the other attendees at the Peace Congress were calling for a cut of 279,457 or 61% in the size of the French armed forces. See the Appendix on "Frédéric Bastiat on "Disarmament and Taxes" (1849)".
368 Bastiat probably has in mind here local militias or something like the National Guard. The Economists were appalled at the cost and destruction caused by the standing armies of the Napoleonic period (whether professional or conscript). [See Amboise Clément, "Armées permanentes," DEP, vol. 1, pp. 70-75.] This was reflected in the writings of Jean-Baptiste Say (1767-1832), especially the Cours complet d'économie politique pratique (1828-33), where he severely criticised standing armies and argued strongly in favour of militias of citizens. See Cours complet d'économie politique pratique; ouvrage destiné à mettre sous les yeux des hommes d'état, des propriétaires fonciers et les capitalistes, des savans, des agriculteurs, des manufacturiers, des négocians, et en général de tous les citoyens, l'économie des sociétés. Seconde édition entièrement revue par l'auteur, publiée sur les manuscrits qu'il a laisés et augmentée de notes par Horace Say, son fils (Paris: Guillaumin, 1840). Vol. 2, chap. XX "De la défense de l'état par des milices," pp. 291-95. The following passage from Say is something Bastiat would also have agreed with: "I ask you, sirs, not to confuse the system of arming an entire nation with its militias, with the extravagant project of making an entire nation an army (militaire); that is to say, to transform it into mobile and seasoned warrior units ready to support diplomatic intrigues and the ambition of despot. This madness has only ever been able to enter the minds of those who are total strangers to social economy. A farmer, a manufacturer, a merchant, an artisan, a worker, a doctor, and all the other useful professions work to supply society with what it needs to eat and to maintain itself. A soldier destroys what the others produce. To turn the productive classes into destructive classes, or to only give greater importance to the latter is to confuse the accessory with the principal, to give precedence to the famine which kills over the abundance which gives life. A nation of soldiers can only live by brigandage, not producing anything and unable to do anything but consuming, it must out of necessity pillage those who produce; and after having pillaged everything within reach, whether friend or foe, as a matter of course or tumultuously, it must then devour itself. History provides us with examples of this without number." Cours complet, pp. 294-95. See the glossary entries on "J.B.Say" and "The French Army and Conscription."
369 Jean Armand Duplessis, cardinal de Richelieu (1585-1642) was the chief minister to Louis XIII and played an important role in centralizing the power of the French state in the first half of the 17th century. It is not clear what Maxim by Richelieu Bastiat had in mind. One that refers explicitly to the question of war and peace is his "Discours de Monseigneur sur la paix lors de la venue de M. Légat" (1625) where Richelieu recommends in Machiavellian fashion that the King not accept an offer of peace, concluding that he should "choose what will be most suitable for his reputation, for the good and advantage of his State, and for the preservation of his allies." p. 91. See Maximes d'état et fragments politiques de Cardinal de Richelieu, publiés par M. Gabriel Hanotaux (Paris: Imprimérie Nationale, 1880), pp.87-91.
370 DMH: In the FEE edition of this article (p. 212) there is a bad mistranslation. Bastiat clearly says his proposed savings in these areas would amount to "200 millions" not the "two millions" stated in the FEE edition. This error seriously understates the radicalism of Bastiat's tax cutting proposals.
371 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. The Catholic church also played a very important role in education, assisting the sick and the poor, overseeing rituals such as births, death, and marriages, and in morals legislation. Appendix on "French Government Finances in 1848-49."
372 Several state run educational institutions were established by Napoleon: the École militaire (1803), the École polytéchnique (1794, 1804), the Écoles nationales des arts et métiers (1803), and a single university for France, L'Univesité impériale (1808). There were also some non-state institutions such as the École centrale des arts et manufactures (1829), the École mutuelle (1815), and the Écoles primaires protestantes (1816). A major restructuring took place with Guizot's law on public education (1833) which stated that every commune in France with more than 500 inhabitants would have an elementary school for boys (girls were included in 1867), every town over 6,000 people would have a higher primary school, and every Département would run a teaching training school. A system of state school inspectors was established and a minimum wage of fr. 200 per annum was enacted. School attendance was not compulsory (until 1881-82), fees were charged (again until 1881-82), and the education included religious instruction. Secondary and higher education was placed under the control of the state run University. Freedom of education was hotly debated during the Second Republic and major reforms resulted in the Falloux law of 1850. The notion of "la liberté d'enseignement" (freedom of education) meant different things to different political groups. For many it meant breaking the control of the central government and transferring it to the Départements, and reducing the influence of the Catholic church. For classical liberals like Bastiat it meant taking eduction completely out of the state sector and letting private groups provide educational services in the market.
373 The Economists were frustrated by the state of the French railways in January 1847 when this article was written. They were excited by the possibilities railways offered for drastically lowering the price of transport, but what had begun as a private initiative of coal mining companies had turned into a hybrid of state and favoured private groups which had serious problems. The state set the number of concessions and freight rates, the state owned much of the infrastructure (bridges, stations) while private companies owned and maintained the track and rolling stock). The law of 1842 laid the basis for this state-private cooperation and when concessions were first announced in 1844-45 there was a frantic scramble for access rights and funding. Furthermore the French railway builders were hampered by the fact that they were forced to buy higher priced French-made rails because cheaper foreign rails were kept out the French market by high tariffs. Perhaps Bastiat had in mind the state buying the entire network and starting again. See the glossary entry on "French Railways."
374 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 or 26.6% of the total budget. Since total annual income for the government in 1848 was fr. 1.4 billion the outstanding debt was 3.7 times receipts. See the glossary on "French Government Finances in 1848-49"; and Gustave de Puynode, "Crédit public," DEP, vol. 1, pp. 508-25.
375 Bastiat uses the expression "affamer l'agiotage" (to starve stockjobbing of its profits). The Economists drew a distinction between "la spéculation commerciale" (commercial speculation) and "agiotage" (stockjobbing). According to Horace Say, the former was a normal part of doing business where investors took risks in trying to discover what line of economic activity was profitable and which was not. Thus it was "useful and helpful to society." Agiotage on the other hand was harmful and even "immoral" because it usually involved speculation in government regulated stocks and bonds such as mining leases, railway concessions, and government bonds. Since the number of stocks and bonds traded on the Paris Bourse were very small (198 in 1847) the proportion of government regulated or issued stocks and bonds played an exaggerated role. Say notes that in such an "interventionist country" (un pays d'intervention gouvernementale) as France the best way to reduce stockjobbing was to cut government expenditure, put an end to budget deficits, and reduce government borrowing. See Horace Say, "Agiotage," DEP, vol. 1, pp. 27-31.
T.103 (1847.01.24 ) "The Sliding Scale" (LE, Jan. 1847)↩
SourceT.103 (1847.01.24) "The Sliding Scale" (L'échelle mobile), Le Libre-Échange, 24 Jan. 1847, no. 9, pp. 65-66. [OC2.9, pp. 44-47.] [CW6]
Text(insert HTML of file here)
T.105 "To M. de Noailles in the Chamber of Peers (on Perfidious Albion)" (24 Jan. 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.105 (1847.01.24) "M. de Noailles to the Chamber of Peers (on Perfidious Albion)" (M. de Noailles à la Chambre des Pairs), LE , 24 Jan. 1847, no. 9, p. 66. [OC2.38, pp. 216-19.] [CW4]
Editor's IntroductionIn this short essay from his free trade journal Le Libre-Échange Bastiat returns to a topic which greatly interested him, the idea that in general free trade benefits one party at the expense of another, and in particular that England ("Perfidious Albion") stood to benefit from a policy of free trade at the expense of the other European nations, especially France. Bastiat referred to "Perfidious Albion" repeatedly in the Economic Sophisms and very wittily coined his own term "Perfidious Normandy" to make fun of the idea that farmers in Normandy were deliberately trying to destroy the economy of Paris by selling them cheap butter. 712 Both the Normandy farmers and British manufacturers were just selling the things they produced best at prices which were very attractive to Parisian consumers, and both parties benefited from the transaction.
Bastiat thought that Montaigne was partly responsible for the widespread belief that "One Man's gain is another Man's loss." This was the title of one of Montaigne's Essays and Bastiat thought it was the "classical example of a sophism, the root stock sophism from which comes multitudes of sophisms." He planned to write a sophism specifically to refute this idea but did not go beyond writing a draft. 713
TextM. de Noailles in the Chamber of Peers 714
24 January 1847
Our mission is to combat the mistaken and dangerous form of political economy that promotes the belief that the prosperity of one nation is incompatible with the prosperity of another, that lumps together trade and conquest, and production and domination. For as long as these ideas persist the world will never be able to count on twenty-four hours of peace. Worse: peace would be an absurdity and an irrelevance.
This is what we read in the speech given by Mr. de Noailles recently in the Chamber of Peers:
We know that England's interests lie in the destruction of Spain's trade so that England is in a position to swamp Spain with her own . Anarchy promotes weakness and poverty and England finds it profitable for Spain to be weak and poor . In a word, in the nature of things, England's policy entails her wishing to possess Spain in order to annihilate it, so that she has a populous nation to feed and clothe . (Hear, hear) 715
Of course, we will set aside the questions of Spain and diplomacy. We will limit ourselves to pointing out the absurdity and danger of the theory professed here by the noble Lord.
To say that a commercial and industrial country is interested in destroying all the others in order to flood them 716 with its products and to feed, clothe, house, and lodge their inhabitants is to summarize in two lines so many contradictions that we scarcely know where to begin simply to point them out.
What is at the root of a trader's wealth is the wealth of his customers, and when Mr. de Noailles states that England wants to impoverish those who buy her goods I would be equally gratified to hear him say that our neighbor, the Delisle Company, 717 is waiting for Paris to be ruined, for no more balls to be held, and for women to stop dressing up, in order to make its fortune.
On the other hand, it appears that, according to Mr. Noailles, one nation in particular aspires to feed and clothe all the others, and that in this respect this nation has calculated, and what is very strange, that it has calculated correctly. This nation wants nobody to work anywhere in order to work for everyone. Its aim is to make available to all both food and shelter without ever accepting anything from anyone, since anything it accepted would be a loss for it. Finally, and this is the greatest marvel, Mr. de Noailles believes and says, with a straight face, that England, by giving a great deal and receiving little, is impoverishing others and enriching herself.
Truly, it is high time that a tissue of banalities like this should cease to be the standard intellectual fare of our country. For our part, we are determined to harshly criticize these doctrines whenever they dare to appear, no matter from whose mouth they issue, for they are not only absurd in the extreme, they are above all anarchic and anti-social. In effect, short of gratuitously limiting yourself to puerile outbursts, it has to be acknowledged that the motive behind the actions of the producers is the same in all countries. If therefore the interest of English workers is to reduce prosperity and ruin the world, it is also the same for all Belgian, French, Spanish, and German workers, and then we would live in a world in which nobody can better himself without destroying the entire human race.
But, people will say, Mr. de Noailles is merely expressing a view that is widely held. Is it not true that the English are above all seeking markets and that consequently their main aim is to sell, not to buy?
No, that is not true, and it would not be true even if the English believed it themselves. We admit that, to their misfortune and that of the world, this mistaken principle, which is also that of the protectionist regime, entirely directed their policy for centuries, which explains the universally held distrust of which Mr. de Noailles is the mouthpiece. However, England came in the end to be influenced by a diametrically opposite principle, that of freedom, a system of ideas in which the following truth is much simpler and very much more comforting:
The English want to enjoy a host of things that do not come from their island, or which come only in insufficient quantity. They want sugar, tea, coffee, cotton, wood, fruit, wheat, butter, meat, etc. In order to obtain these things abroad they have to pay for them, and they pay for them with the fruit of their labor. The imports of a nation are the satisfactions it acquires for itself and its exports are the payment for these satisfactions. The real aim of any nation (whatever it thinks itself) is to import the most possible and export the least possible, just as the aim of every man in his business dealings is to acquire a great deal and give away as little as possible.
How much trouble it takes to have such a simple truth understood! And yet it has to be understood. The peace of the world depends on it.
712 See ES2.13 "Protection, or the Three Municipal Magistrates" in CW3, pp. 000.
713 See "One Man's gain is another Man's loss" ES3 15 in CW3, pp. 341-43; and Montaigne, 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.
714 Paul de Noailles (1802-1884) was a member of an old aristocratic family who sat in the Chamber of Peers (1824-1848) where he was an excellent public speaker. He wrote several books on the history of the French peerage and had business interests in two railway companies.
715 I could not find the relevant vol. to check this quote; Procès-verbal des séances de la Chambre des Pairs - couldn't find volumes for 1847; closest was Procès-verbal des séances de la chambre des pairs: sessions de 1846 . Tome quatrième, juin - juillet 1846, nos. 55-68 (Paris: Crapelet, 1846).
716 See Bastiat's discussion of the value-laden metaphors like "invasion", "flood", and "tribute" which were used by protectionists to condemn foreign trade in ES1 22 "Metaphors," in CW3, pp. 100-3.
717 The Maison Delisle was owned by Henry Delisle and sold fine fabrics and lingerie. It was located in the rue du Faubourg-Montmartre, no. 13. It seems to have gone bankrupt in 1858.
T.106 (1847.01.31) "Reflections on the year 1846" (LE, Jan. 1847)↩
SourceT.106 (1847.01.31) "Reflections on the year 1846" (Réflexions sur l'année 1846), Le Libre-Échange, 31 Jan. 1847, no. 10, p. 73. [OC2.6, pp. 22-25.] [CW6]
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T.107 (1847.01.31) "The Inanity of the Protection of Agriculture" (LE, Jan. 1847)↩
SourceT.107 (1847.01.31) "The Inanity of the Protection of Agriculture" (Inanité de la protection de l'agriculture), Le Libre-Échange, 31 Jan. 1847, no. 10, pp. 73-74. [OC2.8, pp. 39-44.] [CW6]
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T.108 (1847.02.07) "England and Free Trade" (LE, Feb. 1847)↩
SourceT.108 (1847.02.07) "England and Free Trade" (L'Angleterre et le Libre-Échange), Le Libre-Échange, 7 Feb. 1847, no. 11, pp. 81-82. [OC2.32, pp. 177-85.] [CW6]
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T.109 (1847.02.07) "Two Principles" (LE, Feb. 1847)↩
SourceT.109 (1847.02.07) "Two Principles" (Deux principes: le but du travail et de la production), Le Libre-Échange, 7 Feb. 1847, no. 11, p. 88. [OC2, pp. 363-70.] [CW3 - ES3.2]
II. Two Principles [7 February 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Deux principes" (Two Principles) [7 February 1847, 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. 363-70.
- Previous translation: [none]
"I have just read a masterpiece on free trade."
"What did you think of it?"
"I would have thought extremely highly of it if I had not read a masterpiece on protection immediately afterwards."
"You prefer the latter, then?"
"Yes, if I had not read the former just before."478
"Well then, which of the two won you over?"
"Neither, or rather, both, for when I had finished, like Henry IV479 on leaving a court hearing, I said: 'Upon my word, they were both right!'".
"So, you are no further forward?"
"It is fortunate that I have not gone further backward! For I have since come across a third work entitled: Economic contradictions in which Freedom and Non-Freedom, Protection and Non-Protection are arranged in fine style.480 Truly, Sir, my head is swimming.
Vo solcando un mar crudele
Senza vele
E senza sarte.481
East and West, Zenith and Nadir, all are confused in my head and I have not the smallest of compasses to find my way in the middle of this labyrinth. This reminds me of the sorry position I found myself a few years ago."
"Tell me about it, please."
Eugène and I482 were hunting in the immense Landes483 between Bordeaux and Bayonne, on which nothing, no trees or fences, limits the view. There was a heavy mist. We made so many turns this way and that in pursuit of a hare that at length …"
"You caught it?"
"No, it caught us, for the rascal succeeded in disorienting us totally. In the evening, an unknown road came into view. To my great surprise, Eugène and I started in opposite directions. 'Where are you going?' I asked him. 'To Bayonne.' 'But you are going toward Bordeaux.' 'You are joking. The wind is from the North and is freezing our shoulders.' 'That is because it is blowing from the South.' 'But this morning the sun rose there.' 'No, it appeared here.' 'Do you not see the Pyrenées in front of us?' 'Those are clouds on the edge of the sea.' In short, we just could not agree."
"How did it end?"
"We sat down on the side of the road, waiting for a passer-by to save us. Soon a traveler came along; "Sir," I said, "my friend here claims that Bayonne is to the left and I say it is to the right." "Fine Sirs," he replied, "both of you are a little right and a little wrong. Beware of rigid ideas and dogmatic systems. Good evening!" And he left. I was tempted to throw a stone at his back when I saw a second traveler coming toward us. I hailed him extremely politely and said: 'Good man, we are disoriented. Tell us whether we should go this way or that to return to Bayonne.' 'That is not the question', he told us, 'the essential thing is not to cover the distance that separates you from Bayonne in a single bound without a transition stage. That would not be wise and you would risk falling flat on your face.' 'Sir', I said, 'it is you who are not answering the question. As for our faces, you are too interested in them. You can be sure that we will take care of them ourselves. However, before deciding whether to walk quickly or slowly, we have to know in which direction to walk.' Nevertheless, the rogue persisted: 'Walk steadily', he said, 'and never put one foot in front of the other without reflecting carefully on the consequences. Bon voyage!' It was fortunate for him that I had buck shot in my gun; if it had been just bird shot, frankly I would have peppered at least the rump of his horse."
"To punish the horseman! What distributive justice!"
"A third traveler came along. He appeared to be serious and staid. I took this to be a good sign and asked him my question: which was the way to Bayonne? 'Diligent hunter', he said to me, 'you have to distinguish between theory and practice. Study the lie of the land and if theory tells you that Bayonne is downwards, go upwards.'"
"Thundering heavens!" I shouted, "Have you all sworn …?"
"Do not, yourself, swear. And tell me what decision you took."
"That of following the first half of the last piece of advice. We examined the external appearance of the heather and the direction of flow of the water. A flower made us agree. See," I said to Eugène "it normally turns toward the sun
And still seeks the gaze of Phoebus.484
Therefore, Bayonne is there." He yielded to this gracious arbitration and we went on our way in quite good humor. But what a surprise! Eugène found it difficult to leave things as they were and the universe, doing a half-turn in his imagination, constantly put him back under the influence of the same error."
"What happened to your friend with regard to geography often happens to you with regard to political economy. The map turns round in your mind and you find all the dispensers of advice equally convincing."
"What should I do, then?"
"What you did: learn to orient yourself."
"But in the heathlands of political economy485, will I find a poor little flower to guide me?"
"No, but you will find a principle."
"That is not as pretty. Is there really an idea that is clear and simple and which can be used as a leading thread through the labyrinth?"486
"Yes, there is."
"Tell it to me, please!"
"I prefer you to tell it to yourself. Tell me. What is wheat good for?"
"Heavens above! To be eaten!"
"That is a principle."
"You call that a principle? In that case, I often make principles without knowing it, just as Mr. Jourdain487 spoke in prose."
"It is a principle, I tell you, and one that is most ignored, although it is the most true of all those ever included in a body of doctrine. And tell me, has wheat not another use?"
"For what else would it be useful, if not to be eaten?"
"Think hard."
"Ah! I have found it! To provide work for the ploughman."
"You have indeed found it. That is another principle."
"Good heavens! I did not know it was so easy to make principles. I am making one with each word I speak!"
"Is it not true that every imaginable product has the two types of utility that you have just attributed to wheat?"
"What do you mean?"
"What use is coal?"
"It supplies us with heat, light and strength."
"Has it no other use?"
"It also provides work to miners, haulers and sailors."
"And has woolen cloth not two types of utility?"
"Yes, indeed. It protects you from cold and rain. What is more, it gives work to shepherds, spinners and weavers."
"To prove to you that you have genuinely produced two principles, allow me to express them in a general form. The first says: Products are made to be consumed, while the second says: Products are made to be produced."
"Here I am beginning to understand a little less."
"I will therefore change the theme:
First principle: Men work in order to consume.
Second principle: Men consume in order to work.
First principle: Wheat is made for stomachs.
Second principle: Stomachs are made for wheat.
First principle: Means are made for an end.
Second principle: The end is made for the means
First principle: Ploughmen plough so that people can eat.
Second principle: People eat so that the ploughman can plough.
First principle: Oxen go before the cart.
Second principle: The cart goes before the oxen."
"Heavens above! When I said: Wheat is useful because we eat it and then: Wheat is useful because it is cultivated, was I putting forward, without realizing it, this torrent of principles?
Heavens! Sir, I did not believe I was
As learned as I am."488
"Hold on a little! You have merely uttered two principles and I have played variations on a theme."489
"What on earth do you mean?"
"I want you to be able to tell north from south on a compass in case you ever become lost in the labyrinth of economics. Each of them will guide you in an opposite direction, one to the temple of truth, the other to the region of error."
"Do you mean to say that the two schools, the liberal and the protectionist, that divide opinion, differ solely in that one puts the oxen before the cart and the other the cart before the oxen?"
"Exactly. I say that if we go back to the exact point that divides these two schools, we find it in the true or false use of the word utility. As you have just said yourself, each product has two types of usefulness: one relates to the consumer and consists in satisfying needs, the other relates to the producer and consists in providing an opportunity for work. We can therefore call the first of these forms of utility fundamental and the second occasional. One is the compass of true science and the other that of false science. If you are unfortunate enough, as is only too frequent, to ride a horse using the second principle to guide you, that is to say to consider products merely from the point of view of their relationship with producers, you are traveling with a compass that is back to front, and you become increasingly lost. You become enmeshed in the realms of privileges, monopolies, antagonism, national jealousies, dissipation, regulations and restrictive and invasive policies, in a word, you introduce a series of consequences which undermine humanity, constantly mistaking the wrong for the right, and seeking in new wrongs the remedy for the wrongs that legislation has brought about. If, on the other hand, the interest of the consumer, or rather that of general consumption, is taken as a torch and compass right from the start, we progress toward liberty, equality, fraternity,490 universal peace, well-being, savings, order and all the progressive principles of the human race.491"
"What! These two axioms: Wheat is made to be eaten and wheat is made to be grown can lead to such opposing results?"
"Yes indeed. You know the story of the two ships that were traveling in convoy. A storm arose. When it was over, nothing had changed in the universe, except that one of the two compasses had veered to the South as a result of the electricity. But this was enough to make one ship go the wrong way for eternity, at least while it followed this false direction."
"I must admit that I am a thousand leagues away from understanding the importance you attach to what you call the two principles (although I have had the honor of finding them), and I would be very relieved if you would let me know your thoughts in their entirety."
"Well, then! Listen! I divide my subject into …"
"Mercy me! I have no time to listen to you. But next Sunday I am all yours."
"I would like, however, …"
"I am in a hurry. Farewell."
"While I have you here …"
" You do not have me any more. See you on Sunday."492
"On Sunday, then. My goodness, how hard listeners find it to focus!"
"Heavens! How heavy going lecturers make it!"
Endnotes478 This is an amusing reference to his own work and that of his arch-rival the anarchist socialist Pierre-Joseph Proudhon. Bastiat's own work debunking economic fallacies or "sophisms" as he called it appeared in January 1846. It is of course strongly in favor of free trade and the free market. The same liberal publisher Guillaumin published later in 1846 a two volume work by Proudhon from the very opposite perspective, Système des contradictions économiques, ou, Philosophie de la misère (System of Economic Contradictions, or the Philosophy of Misery). Note also, that in the dialogue at the end of "Protection, or the Three Municipal Magistrates" (ES2, chap. XIII) the People cheer vociferously for whatever opinion they last heard. See Pierre-Joseph Proudhon, Système des contradictions économiques, ou Philosophie de la misère, 2 Volumes (Paris: Guillaumin et cie, 1846). See Bastiat, Economic Sophisms. Series I (Paris: Guillaumin, 1846) above, pp. ???. See also the glossary entry on "Proudhon."
479 Henri IV (1562-1610). Henri was a Huguenot (Protestant) who was active in the Wars of Religion before becoming King, a precondition for which he had to convert to Catholicism. In 1598 he enacted the Edict of Nantes which granted religious toleration to the protestants in an attempt to end the religious wars in France. In 1610 he was assassinated by a Catholic fanatic. His edit of toleration was revoked in October 1685 by Louis XIV.
480 Bastiat might be referring here to the work of the Anti-Corn Law advocate Col. Thomas Perronet Thompson whose work was well known to the Economists. He wrote many best selling works of "free trade catechisms" where he listed arguments for and against free trade and protection in well organized columns of text in his pamphlets. He did the same in a French language book attacking the pro-tariff report of the Superior Council of Commerce which was conducted in October 1834. See Perronet Thompson, Catechism on the Corn Laws; With a List of Fallacies and the Answers. Eighteenth Edition (London: Robert Heward for the Westminster Review, 1834). 1st edition 1827; Contre-Enquête: par l'Homme aux Quarante Écus (1834). See the glossary entries on "Perronet Thompson" and "Superior Council of Commerce."
481 This verse comes from an opera "Artaserse" written by Metastasio and set to music by numerous composers in the 18th century. The translation of the verse Bastiat quotes is "I sail across a cruel sea without sail or rigging". See Opere scelte di Pietro Metastasio, publicate da A. Buttura. Tomo primo. (Parigi: Baudry, 1840), Act I, scene XV, p. 147.
482 Bastiat mentions only one "Eugène" in his correspondence but gives no surname. It is in a letter to his childhood friend Félix Coudroy who obvious knew whom he meant. In letter 203, dated Rome, 11 November 1850 Bastiat states "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." CW, vol. 1, pp. 288-89.
483 Les Landes was the Département in south west France where Bastiat was born and grew up and represented in the Chamber of Deputies. Les Landes is short for "the heathlands of the Gascoines." In Bastiat's day Les Landes consisted of predominantly poorly drained heathland ("la lande") which was burnt off to allow the grazing of large numbers of sheep. Later in the 19th century extensive pine forests were grown thus making possible the development of a lucrative timber industry. See the glossary entry on "Les Landes."
484 Bastiat quotes a line from Évariste de Parny's (1753-1814) poem "Les Fleurs" (Flowers) (1788). The full verse is: "Dans la jacinthe un bel enfant respire; / J'y reconnois le fils de Piérus. / Il cherche encor les regards de Phébus; / Il craint encor le souffle de Zéphyre." (In the hyacinth flower a beautiful child breathes; / There I recognize the son of Pierus. / He still seeks the gaze of Phoebus; / He still fears the breath of Zephyrus.) Parny was very popular in the early 19th century. He was one of the handful of French aristocrats who supported the American Revolution by writing an "Epitre aux insurgents de Boston" (A Letter to the Insurgents in Boston) (1777). His poetry is filled with references to liberty and his long poem on "Flowers" might be interpreted as a discussion of how plant life needs the right conditions in which to grow and flourish just as humans need liberty. He wrote many love poems, transcribed songs from Madagascar into French verse, and wrote a notorious poem "La Guerre des Dieux" (War of the Gods) (1799) which was banned during the Restoration. See Evariste-Désiré Desforges Parny, Oeuvres choisies de Parny, augmentées des variantes de texte et de notes (Paris: Lefèvre, 1827), "Les Fleurs," pp. 154-55. Also Poésies érotiques (1778), Chansons madécasses (1787). See the glossary entry "Parny."
485 Bastiat uses the phrase "les landes" of political economy to suggest that just as he and Eugène were disoriented and lost in Les Landes in south west France, one could also get lost in the wilderness or marshlands of political economy. See the glossary entry on "Les Landes."
486 In Greek mythology the Minotaur was a creature half man and half bull which lived in a maze or labyrinth on the island of Crete. In the power struggle between him and his brothers for control of the throne of Crete, Minos was given a white bull as a sign of support by the god Poseidon. Instead of killing it as he promised, Minos kept it. As punishment his wife was made to fall in love with the bull producing the Minotaur as a result which had to caged in the labyrinth because of its monstrous behaviour. The Athenian hero Theseus was able to kill the Minotaur with the assistance of Ariadne, the oldest daughter of King Minos, who told him to use a thread to successfully navigate his way out of the labyrinth once he had killed the beast.
487 In Le Bourgeois gentilhomme (The Would-Be Gentleman) by J. B. P. Molière (1622–1673), Act II, scene VI, the Instructor of Philosophy is instructing M. Jourdain on how to behave like a gentleman. Jourdain wants to woo a woman of higher social status than he is and wants to be able to write her a letter. When asked by the Philosopher if he wants to write verse or prose M. Jourdain gets confused because he doesn't know the difference between the two. He is told told that everyday speech is a form of prose and Jourdain is astonished that for 40 years he had been speaking prose without knowing it. Oeuvres complètes de Molière, avec les notes de tous les commentateurs. Édition publiée par L. Aimé-Martin. Tome septième (Paris: Lefèvre, 1826), pp. 138-40. See the glossary entry on "Molière."
488 This line comes from Molière's play Le Misanthrope (1666) where the misanthrope, Alceste, is trying to explain why it is so hard to tell powerful individuals (like a King) that their poetry is badly written. He tells his friends that he could be tortured or hanged for doing so, and when they laugh, he replies "Par la sangbleu! Messieurs, je ne croyois pas estre / Si plaisant que je suis" (Gracious me! Sirs, I didn't think I was as witty as I am). As Bastiat often does, he inserts his own words into a well-known poem or play to make his points, replacing "plaisant" (witty) with "savant" (learned). See Théatre complet de J.-B. Poquelin de Molière, publié par D. Jouaust en huit volumes avec la préface de 1682, annotée par G. Monval, vol. 4 (Paris: Librairie des bibliophiles, 1882), "Le Misanthrope," Act II, scene VI, p. 108. See the glossary entry on "Molière."
489 This is another reference to a play this time by Beaumarchais. In the The Barber of Seville (1775) Don 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).
490 Bastiat is here taking the slogan of the French Revolution of 1789 "liberté, égailité, fraternité," which had been appropriated by the Jacobins in the 1790s and then by the socialists afterwards, and turning it into his own liberal rallying cry for the 1840s, which might be phrased as follows: "liberty, equality, fraternity, tranquility, prosperity, frugality, and stability." See Bastiat's list of ideals which make him a democrat: property, liberty, equality, justice, and peace, in ES3 XII. "The Man who asked Embarrassing Questions," pp. ???. See the Appendix on "Bastiat's Republicanism."
491 (Paillottet's note) <TBK>.See pages 15 and 251 of chapter II of the first series of Sophisms and chapter XV. of the second series in Tome IV. and chapter XI of the Harmonies in Tome VI.
492 (Paillottet's note) Sunday was the day of the week on which Le Libre-Échange appeared.
T.110 (1847.02.14) "Domination through Work" (LE, Feb. 1847)↩
SourceT.110 (1847.02.14) "Domination through Work" (Domination par le travail), Le Libre-Échange, 14 Feb. 1847, no. 12, pp. 93-94; also ES2.17. [OC4, pp. 265-71.] [CW3 - ES2.17]
XVII. Domination through Work460 [14 February 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Domination par le travail" (Domination through Work) [Le Libre-Échange, 14 February 1847].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 265-71.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
In time of peace is it possible to achieve domination through superiority in production, in the same way as in time of war, domination is achieved through superiority in weaponry?"
This question is of the greatest interest at a time in which people do not seem to doubt that, in the field of industry as on the field of battle, the strongest crush the weakest.
For this to be so, people must have discovered a sorry and discouraging analogy between work exercised on things and the violence exercised on men, for how can these two types of action be identical in their effect if they are in opposition by nature?
And if it is true that, in industry as in war, domination is the necessary result of superiority, why should we be concerned with progress and social economy since we are in a world in which everything has so been arranged by Providence that the same effect, oppression, ineluctably results from principles that are totally opposed to one another?
When it comes to the entirely new politics into which free trade is drawing England,461 a certain query is being widely raised, one which, I must agree, is preoccupying the most sincere individuals: "Is England doing anything other than pursue the same aim by another means? Does she not still aspire to universal supremacy? Now sure of her superior capital formation and labor force, is she not calling for free competition so she can stifle industry on the continent, reigning supreme, and winning the privilege of feeding and clothing economically ruined nations?
It would be easy for me to demonstrate that these anxieties are an illusion, that our alleged inferiority has been greatly exaggerated, that there is not one of our major industries that does not just resist but is even developing under the stimulus of competition from abroad and that the infallible effect of this is to bring about an increase in general consumption which is capable of absorbing both the products coming from within and those coming from without the country.
Today, I want to attack the objection frontally, leaving it all its force and all the advantage of the terrain it has chosen. Setting aside the English and the French, I will seek to find out in general whether, even though by means of its superiority in a particular branch of industry a nation manages to stifle a similar activity in another nation, the former has taken a step towards the domination of the latter and the latter a step towards dependence. In other words, I am asking whether both of them do not benefit from the operation and whether it is not the vanquished that gains more.
If a product is seen only as the opportunity for work, it is certain that the anxieties of protectionists are well founded. If we considered iron, for example, merely with regard to its relationship with iron masters, we might fear that competition from a country in which it was a free gift of nature might extinguish the furnaces in another country in which both mineral and fuel were scarce.
However, is this a comprehensive view of the subject? Has iron a relationship only with those who make it? Is it foreign to those that use it? Is its sole and final purpose that of being produced? And if it is useful, not because of the work to which it gives rise but because of the qualities it possesses and the number of services for which its hardness and malleability make it suitable, does it not follow that foreigners cannot reduce its price even to the point of preventing its production here without doing us more good in this latter respect than any harm it might do in the former?
Let us consider the host of things that foreigners prevent us from producing directly, because of the natural advantages which surround them, a situation in which we in fact we find ourselves, in the hypothetical case of iron which we have been examining. We do not produce tea, coffee, gold or silver in this country. Does this mean that the total amount of our work is decreased because of this? No, only that, in order to create a counter-value for these things in order to acquire them through trade, we allocate a lesser portion of our general work than would be needed to produce them ourselves. More is left to us to devote to other satisfactions. We are richer, and stronger, by this amount. All that external rivalry has been able to do, even in cases where it prevents us absolutely from carrying out a given form of production is to make us economize on it and to increase our productive power. Is this, for foreigners, the road to domination?
If a goldmine were found in France, it would not follow that it would be in our interest to exploit it. It is actually certain that the enterprise ought to be ignored since each ounce of gold would take up more of our labor than an ounce of gold purchased from Mexico in exchange for cloth. In this case, it would be better to continue to regard our looms as our gold mines. What is true of gold is also true for iron.
The illusion arises from the fact that there is something we do not see.462 This is that foreign superiority only ever blocks national production in a specific area and makes it redundant only in this specific area by putting at our disposal the output of the very labor which has been destroyed in this way. If men lived in bells under water and had to provide themselves with air by means of a pump, there would be a huge source of work in this. Damaging this work while leaving men in this situation would be to do them frightful harm. But if the work ceases only because there is no longer any need for it, because men are placed in a different milieu in which air enters effortlessly into contact with their lungs, then the loss of this work is no cause for regret, except in the eyes of those who insist on seeing the value of work only in the work itself.
It is precisely this type of work that machines, free trade and progress of all sorts are gradually destroying; not useful work, but work that has become superfluous, redundant, pointless and ineffectual. On the other hand, protection restores it; it puts us back under the water in order to supply us with the opportunity to pump, it forces us to demand gold from our inaccessible national mine rather than from our national looms. Its entire effect is encapsulated in this term: wasted efforts.
It will be understood that I am speaking here of general effects, and not the temporary upsets that occur when a bad system gives way to a good one. Temporary disturbance is bound to accompany any progress. This may be a reason to soften the transition, but not one to forbid all progress systematically, and still less to fail to recognize it.
Production is represented to us as a conflict. This is not true, or it is true only if each industry is considered solely with regard to its effects on another similar industry, isolating them both mentally from the rest of humanity. However, there are other considerations: their effects on consumption and on general well-being.
This is why it is not permissible to compare production to war, as is being done.
In war, the stronger overcomes the weaker.
In production, the stronger transmits strength to the weaker. This completely destroys the analogy.
No matter how strong and skillful the English are, how much amortized capital they have, or how much iron and furnace power, the two great forces in production, all this makes products cheap. And who benefits from the cheapness of products? The person who buys them.
It is not in their power to wipe out completely any portion of our economy. All they can do is to make it superfluous for a given result, to deliver air at the same time as they are abolishing pumps, thus increasing our available productive strength and, wonder of wonders, making their alleged domination all the more impossible the more their superiority is incontestable.
In this way we reach the conclusion, through a rigorous and consoling demonstration, that production and violence, so contrary by nature to one another, are no less so in their effect, no matter what protectionists and socialists say in this connection.
All we have needed to do to achieve this is to distinguish between production that has been destroyed and resources on which the system has economized.
To have less iron because you work less and more iron in spite of working less are situations that are more than different; they are quite opposite to one another. Protectionists confuse them, but we do not. That is the difference.
One thing should be made clear. If the English put to work a great deal of activity, labor, capital, intelligence or natural strength, it is not just for the love of us. It is to provide themselves with a great many forms of satisfaction in return for their products. They certainly want to receive at least as much as they give, and they manufacture in their own country the payment for what they buy elsewhere. If therefore they flood us with their products, it is because they intend to be flooded in turn with ours. In this case, the best way of having a great deal for ourselves is to be free to choose, with respect to our purchases, between the following two procedures: direct production or indirect. No amount of British Machiavellianism will cause us to make the wrong choice.
Let us therefore stop this puerile nonsense of likening industrial competition to war. This is a false comparison, which draws all its fallacy from the fact that we isolate two rival productive sectors in order to assess the effects of competition. As soon as the effect produced on general well-being is taken into account, the analogy disappears.
In a battle the person killed is well and truly killed, and the army weakened accordingly. In industry a factory founders only to the extent that the whole productive system replaces what it used to produce, with an increase in quantity. Let us imagine a state of affairs in which, for each man killed on the spot, two sprang up full of strength and vigor. If there is a planet on which this happens, we would have to agree that war would be waged in conditions so different from those we see down here that it would not even merit the same name.
Well this is the distinctive character of what has been so inappropriately christened industrial warfare.
Let the Belgians and English decrease the price of their iron if they can, let them continue to decrease it for evermore until it is reduced to nothing. In doing this, they may well extinguish one of our blast furnaces, i.e. "to kill one of our soldiers"; but I challenge them to prevent a thousand other industries from immediately rising up and becoming more profitable than the one "removed from the field of battle", as a necessary consequence of these same low prices.
Let us conclude that domination through work is impossible and contradictory, since any superiority that appears in a nation is translated into low prices and results only in transmitting strength to all the others. Let us banish from political economy all the following expressions borrowed from a military vocabulary: to fight on equal terms, to conquer, to crush, to stifle, to be defeated, invasion or tribute. What do all these expressions mean? If you squeeze them, nothing will come out. We are mistaken, as what comes out of such thinking are absurd errors and disastrous preconceived ideas. These are the words that stop nations from coming together in a peaceful, universal and indissoluble alliance and humanity from making progress!463
END OF THE SECOND SERIES
Endnotes460 (Paillottet's note) Taken from the issue of Le Libre-Echange dated 14th February 1847.
461 After the abolition of the protectionist Corn Laws in May 1846 the Economists expected that the liberalization of the British economy would lead to much greater productivity and further liberal political and economic reforms which the rest of Europe would also gradually adopt. In the case of France this was true with the signing of the Cobden-Chevalier Trade Treaty in 1860. See the glossary entries on "Cobden," "Anti-Corn Law League," and "The Corn Laws."
462 This is a reference to a key idea Bastiat was to develop in 1850 in his pamphlet What is See and What is Not Seen which is included in this volume below, pp. ???
463 (Paillottet's note) If the author had lived longer, he would probably have published a third series of Sophisms. The main elements of this publication seem to us to have been prepared in the columns of Le Libre-Echange and we present them together at the end of this volume. [DMH - For this volume of the Collected Works of Bastiat the editors have assembled what might have been Bastiat's Third Series of Economic Sophisms had he lived long enough to assemble them himself. See below, pp. ???]
T.111 "A Curious Economic Phenomenon. Financial Reform in England" (21 Feb. 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.111 (1847.02.21) "A Curious Economic Phenomenon. Financial Reform in England" (Curieux phénomène économique. La Réforme financière en Angleterre), LE , 21 Feb. 1847, no. 13, pp. 97-98. [OC2.32, pp. 186-93.] [CW4]
Editor's IntroductionIn this article Bastiat provides an early account of what today is known as the "Laffer curve" which describes how cutting high marginal tax rates may increase the tax base so much that tax revenues increase in the long term. 718 He also returned to this topic in the pamphlet Peace and Liberty or the Republican Budget (February 1849). 719 Bastiat attributes the discovery of this seemingly strange idea that cutting tax rates might increase government revenue to the economic journalist James Wilson 720 who described it for the first time in commenting upon the tax reforms which Sir Robert Peel introduced in England between 1842 and 1846. 721
The background to these tax reforms were the two rebellions which broke out in Canada in 1837 in protest against corruption in the local government. The first one broke out in Lower Canada (Québec) in November and was followed shortly afterwards by one in Upper Canada (Ontario). Several of the ringleaders were hanged and others were transported to the British penal colony in Australia. The rebellion led to an Inquiry by Lord Durham which produced a Report on the Affairs of British Canada and then to the British North America Act of 1840. This in turn led to reforms enabling greater autonomy and self-government in many of the British colonies. Repressing the rebellion cost a great a deal and the British government experienced a fiscal crisis which was dealt with by Sir Robert Peel who was Prime Minister between August 1841 until his defeat on 29 June 1846 shortly after the repeal of the Corn Laws. His solution to the budget deficit was to impose an income tax of about 3% which allowed him to raise revenue, cover the deficit, and cut tariffs on many hundreds of items. The income tax had first been introduced in Britain during the war against Napoleon in 1798 by William Pitt (the Younger). It was progressive in that incomes above 60 pounds per annum were taxed at 2 pence in the pound (1/120) up to 2 shillings in the pound (10%) over 200 pounds. It was abolished in 1802 during a lull in the fighting but introduced again in 1803 and lasted until after Napoleon's defeat at the Battle of Waterloo (1815) in 1816. The tax was re-introduced by Peel in 1842 to cover the growing budget deficit. It was levied on annual incomes above 150 pounds. Although it was intended to be temporary it became a permanent feature of the British tax system.
The struggles of the British government to balance its budget were observed with great interest by the supporters of free trade, especially the economic journalist (and later politician) James Wilson. Wilson founded the magazine The Economist in 1843, and was elected to Parliament in 1847. His pamphlet on Peel's economic and tax reforms The Revenue; Or, What Should the Chancellor Do? (1841) was the source for much of Bastiat's data in this article. 722
It is interesting to see here Bastiat punning on the phrase "le bon marché" in his discussion at the end of the article about what "a good price" means for sellers and for consumers. Sellers want "un bon prix" (a good or high price) so they can make profits, while consumers want to to buy goods "au bon marché" (at bargain or basement prices). The protectionist system made it possible for sellers to have high prices as a result of government privileges; free and open markets made it possible for consumers to have their low prices. Consumers were also beginning to benefit from important innovations in shopping which were taking place in the late 1830s and 1840s in England and France, namely the invention of the "department store" in which a wide variety of goods were sold inside one building, at fixed prices, and with guarantees for returns and refunds if the customer was not happy with their purchase. One of the pioneers in this field in Paris was Aristide Boucicaut who founded a store called "Le Bon Marché" in Paris in 1838. The phrase "la vie à bon marché" (life at bargain prices, or life when things are cheap) 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. He defines what he means by this expression in a letter published in October 1846 thanking Lamartine for inventing it: "It is you, I believe, who were the first to use the expression: "Life when things are cheap," words that might be the motto of our Free Trade association, for life when things are cheap, is life that is easier, sweeter, and less fraught with tiredness and anguish, more dignified, more intellectual and more moral. Life when things are cheap is the result that trade, and above all free trade, tends to produce." (See below p. 000.) The first occurrence of this expression in print can be found in Lamartine's "Speech to the Marseilles Free Trade Association" on 24 August 1847. 723
TextIn the session on the 9 th of February, Mr. Léon Faucher 724 called the Chamber's attention to the financial circumstances that hastened the arrival of the trade reforms in England. There was a whole series of facts, as interesting as they were instructive, which we consider to be deserving of the serious consideration of our readers, in particular those who operate industries which receive government privileges. Perhaps they will learn that monopolies do not always deliver what they appear to promise, any more than high taxes do.
In 1837, when the insurrection in Canada had brought about an increase in expenditure, which was coupled with a decrease in revenue, financial equilibrium was destroyed in England and there was an initial deficit of 16 million francs.
The following year, there was a second deficit of 10 million; 1839 left an overdraft of 37 million and 1840 one of 40 million.
The government thought seriously about how to end this ever-increasing calamity. It had a choice of two methods: reducing expenditure or increasing revenue. Either because, in the view of the government, the round of reforms conducive to reducing expenditure had already been in operation since 1815 or because, according to the way of all governments, it considered itself obliged to exhaust the nation before touching the established rights 725 of the civil servants, the fact remains that its initial thought was the one that comes to all governments: squeeze whatever one can out of taxes.
Consequently, Russell's cabinet 726 instigated and the Commons duly passed a bill that authorized an additional charge of 10 percent to be imposed on land tax, 5 percent on Customs and Excise, and 4 pence per gallon on spirits.
Before going any further, it would be a good thing to cast an eye on the manner in which public taxes were apportioned in the United Kingdom at that time. 727
The figure for revenue was approximately 47 million pounds sterling.
This was drawn from three sources: Customs and Excise , a type of tax that affected everyone more or less equally, that is to say, it fell in huge proportion on the working classes; assessed taxes , 728 or land tax that affected the rich, especially in England, and Stamp Duty which has a mixed character.
The tax on the people produced 36 million or 9/12 of the total;
The tax on the rich, 4 million or 1/12 of the total;
The mixed tax 7 million or 2/12.
From which it follows that commerce, private enterprise, and labor, that is the middle and poor classes in society, paid five-sixths of the public charges, which doubtless caused Mr. Cobden 729 to say, "If our financial code reached the moon with no comment, the inhabitants of this satellite would need no other document to be persuaded that England is governed by an aristocracy that is the master of the land and the legislative process." 730
Let us note in passing, and to France's honor, that while landowners in England pay only a total of 8 percent in taxes, in this country they account for 33 percent, 731 and in addition they pay a much larger share of consumption tax in view of their numbers.
As a result of the issues discussed above, the additional charges thought up by the Whigs were meant to produce:
1,426,040 pounds sterling, being 5 percent for Customs and Excise, not including spirits;
186,000 pounds sterling, being 4 pence per gallon on spirits;
400,000 pounds sterling, being 10 percent on land tax.
Here again the nation was called upon, in a ratio of 4:5, to make good the deficit brought about through the errors of the oligarchy. 732
The bill was implemented at the beginning of 1840. On 5 April 1841, the balance was examined anxiously and it was not without surprise mingled with terror that it was seen that, instead of the expected increase of 2,200,000 pounds sterling, there was a decrease in revenue compared with the previous year, of a few hundred thousand pounds.
This was an unexpected revelation. It was therefore in vain that the nation had been subjected to new taxes, and it would be equally pointless to have recourse to this solution in the future. Experience had just revealed a significant fact, that England had reached the extreme limit of its tax potential, and in future it would be impossible to extract from it another shilling through taxes. Nevertheless, the deficit was still a gaping hole.
The "Theorists," 733 as they are called, started to examine this threatening phenomenon. The idea occurred to them that they might perhaps increase revenue by decreasing taxes, an idea that appeared to imply a shocking contradiction. Apart from the theoretical reasons they put forward to support their view, some previous experiences provided a certain support for their opinion. However, for those people who, although committed to the cult of the facts , are not unduly averse to the reasons behind those facts , we must say how they supported their views.
"The yield of a tax on a consumer item", they said, "depends on the rate of tax and the quantity consumed. For example, if the tax is one and ten pounds of sugar is consumed, the revenue will be ten. This revenue will increase either because the rate of tax is raised with consumption remaining the same, or consumption increases with the rate of tax remaining the same. It will decrease if one or other of these elements changes and will still decrease if, although one of them increases, the other decreases to a greater extent. Thus, even if you raise the tax to 2, if consumption decreases to 4, revenue will be only 8. In this last case, the hardship for the people will be enormous, with no advantage, indeed much worse, with a loss to the Treasury."
This having been established, are the multiplier and the multiplicand independent of each other, or is it possible to increase one only at the expense of the other? The answer of the Theorists was:
"Tax acts just like all production costs, it raises the price of things and puts them out of range of a certain number of people. From this we obtain the following mathematical conclusion: if a tax is gradually and indefinitely raised, for the very reason that at each degree of elevation consumption of the taxable material is gradually further restricted, there will of necessity arrive a time at which the slightest addition to the tax will reduce revenue."
Let sincere protectionists, of whom there are many, allow us to call this phenomenon to their attention. We will see later that overdoing protection will put them in the same position as the Treasury when it imposes excessive taxation.
The Theorists did not stop at this arithmetical theorem. Delving deeper into the question, they said: "If the government were more conscious of the deplorable state of the nation's resources, it would not have taken a step which creates such confusion."
In fact, if the individual situation of its citizens were stationary, the revenue from indirect taxation would increase exactly in line with the population. What is more, if national capital and with it general well-being, increased, revenue ought to increase faster than the number of people. Finally, if the ability to consume is reduced, the Treasury must suffer. It follows from this that when you have before you the twin phenomenon of an increase in population and a decrease in revenue, there is a double reason for concluding that the people are being subjected to gradually increasing hardship. In these circumstances, to increase the price of things is to subject the citizens to additional hardship, with no tax advantage.
Well, from this point of view, what was the situation in 1840?
It had been noted that the population was increasing by 360,361 inhabitants per year.
In this case, assuming only that individual resources remained stationary, what ought the product of Customs and Excise to have been and what was it in fact? The following table will show us this: 734
Year | Population | Expected tax revenue | Actual tax revenue |
1836 1837 1838 1839 1840 |
26,158,524 26,518,885 26,879,246 27,239,607 27,599,968 |
£ sterling 36,392,472 36,938,363 37,484,254 38,030,145 38,567,036 |
£ sterling 36,392,472 33,958,421 34,478,417 35,093,633 35,536,469 |
So even in the absence of any progress in production, and solely because of the force of numbers, the revenue, which in 1836 had been 36 million, ought to have been 38 million in 1840. It fell to 35 million, in spite of the surtax of 5 percent, a result which the downturn of the previous years ought to have predicted. What is strange is that in the five previous years the opposite happened. As Customs and Excise duties were reduced, public revenue increased more than proportionately to population growth.
Perhaps readers will guess the consequences that the Theorists drew from these observations. They told the government: "You can no longer usefully increase the multiplier (the rate of tax) without changing the multiplicand (the taxable material) to a greater extent; by lowering the tax, try to allow the nation's resources to increase."
But this was an enterprise fraught with danger. Even if they admitted that in the distant future it might be crowned with success, it is well known that time is needed for reductions in tax to fill the void they create and, let us not forget, they were facing a deficit.
It was a question, therefore, of doing no less than digging this abyss ever deeper, of compromising the credit of the England of old and opening the gate to incalculable catastrophe.
The problems were pressing. They brought down the Whig government. Peel assumed office.
We know how he solved the problem. He began by imposing a tax on the wealthy. In this way, he created for himself the resources not only to cover the deficit but also to meet the temporary deficits that the reforms he was contemplating were bound to cause.
Through income tax , 735 he relieved the nation of the burden of excise and, in line with the dissemination by the League 736 of healthy economic ideas, of Customs restrictions. At present, in spite of the abolition of a great many taxes and the reduction of all the others, the Exchequer would be flourishing were it not for the unforeseen calamities that have overwhelmed Great Britain. 737
We have to agree that Mr. Peel has led this financial revolution with astonishing energy and force. It is not without reason that he often described these measures as " Bold experiments. " 738 Far be it for us to wish to undermine the reputation of this Statesman and belittle the gratitude of the English working classes and, it might be said, of every country. However, having done it is enough for his glory, and we have to say in all justice that the invention in its entirety is the work of a Theorist, a simple journalist named Mr. James Wilson, whose advice, if it were followed, might perhaps be able to save Ireland in 1847 just as it saved England in 1840.
Now the men who seek the success of their businesses in monopoly will be asking us what analogy there is between the facts we have just recalled and the protectionist regime.
We ask them to look closely at the situation and to see whether they are not in the same rather ridiculous position that the Exchequer was in 1840.
What is protectionism? A tax on consumers. You say that it benefits you. Well, probably, much as taxes benefit the Treasury. However, you cannot prevent these taxes from reducing the economic wherewithal of the consumer, his power to buy, pay for, and consume products. Certainly, he will consume less wheat and woolen cloth than he would have if these products had come to him from all over the world. This is already very harmful, and we would even say a great injustice, but with regard to you and your interests, the question is to establish whether you will not experience the same fate as the tax authorities, whether there will not come a time when this destruction of the power of consumption will not deprive you of markets to such an extent that this outweighs the value of the protection you receive. In other words, if in this conflict between the artificial raising of prices resulting from protectionist duties and the reduction of prices caused by the inability of buyers to pay, the latter element does not outweigh the former, in which case you would obviously lose both on the sales price and on the quantity sold.
To this you will reply that there is a contradiction. That since the powerlessness of consumers to pay can be attributed to the level of prices, it cannot be granted that, under a regime of liberty, prices might rise unless we also grant by the same token that markets might shrink and that, for the same reason, an increase in sales implies a decrease in prices, since one is the effect and the other the cause.
The answer to this is that you are deceiving yourself. A country may certainly be imagined in which everyone is sufficiently prosperous for things to be be sold even at high prices, and another (country) where everyone is so destitute that sales cannot be made even at bargain basement prices. 739 It is to this second state that we are being led, both by the heavy taxes that go to the Treasury and the heavy taxes that go to the manufacturers, and there will come a time when the Treasury and the manufacturers have only one means left to maintain and increase their revenues, and that is to reduce the rates of taxation and allow the general public to breathe.
Moreover, this is not an unsupported argument. Every time the pressure of a protectionist duty has been lifted from a nation, two opposing trends emerge which influence the price. The absence of protection has certainly caused it to drop but the increase in demand has just as certainly driven it up, so that the price is at the very least maintained and the net advantage of the operation is increased consumption. You say that this is not possible. We say that it is, and if you will only check the current prices of coffee, silk, sugar and wool in England in the years following the reduction in protectionist duties, you will be convinced of this. 740
718 For a discussion of the "Laffer curve" see, James D. Gwartney, "Supply-Side Economics." The Concise Encyclopedia of Economics . 2008. Library of Economics and Liberty. < https://www.econlib.org/library/Enc/SupplySideEconomics.html >.
719 CW2, pp. 282-327.
720 James Wilson (1805-1860) was born in Scotland. He became an economic journalist working for the Manchester Guardian , was a supporter of free trade, founded the magazine The Economist in 1843, and was elected to parliament in 1847.
721 Sir Robert Peel (1788-1850) was the leader of the Tories, served as Home Secretary under the Duke of Wellington (1822–27) and was prime minister twice (1834–35, 1841–46). He is best known for the Factory Act of 1844 which regulated the working hours of women and children in the factories, and the repeal of the Corn Laws in May 1846.
722 James Wilson's The Revenue; Or, What Should the Chancellor Do? (1841).
723 Lamartine's "Speech to the Marseilles Free Trade Association" on 24 August 1847. See Oeuvres de M. A. de Lamartine , vol. 5, p. 350.
724 Léon Faucher (1803-1854) was a journalist and deputy for the Marne who was twice appointed Minister of the Interior. He was active in L'Association pour la liberté des échanges and wrote many articles about economic reforms in Britain.
725 Bastiat uses the phrase "les droits acquis" (acquired or established rights) which FEE translated as "vested interests" in EH, p. 453 and "rights (that) have been acquired" in ES2 15, p. 257.
726 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.
727 What follows is taken from James Wilson's The Revenue; Or, What Should the Chancellor Do? (1841), pp. 5-6. See also James Wilson, The Influences of the Corn Laws as affecting all Classes of the Community, and particularly the Landed Interests (1840).
728 Bastiat uses the English words "assessed taxes" in the original text.
729 Richard Cobden (1804-65) was an English manufacturer and Member of Parliament (Stockport, 1841) who founded (with John Bright) the British Anti-Corn Law League which was successful in abolishing the protectionist Corn Laws in 1846. His writings and political activity influenced Bastiat a great deal - he wrote his first book on Cobden and the League (1845) and he co-founded the French Free Trade Association in 1846 which was modeled on the Anti-Corn Law League.
730 We have not been able to find the source of this quote.
731 In 1848 out of total government revenue of 1,370 million fr. land owners paid 380 million in land tax, and part of the 60 million of property and personal tax and 35 million of the door and window tax, which totaled 475 million fr. or 35%.
732 Bastiat began using the word "l'oligarchie" to describe the powerful group of landowners which controlled Britain in his long introduction to his book on "Cobden and the League" (July 1845). This will appear in CW6 (forthcoming).
733 Bastiat tells us below that the main "Theorist" he has in mind is the journalist James Wilson who later founded The Economist in 1843 and was an ardent supporter of free trade.
734 Bastiat gets this data from Wilson, The Revenue; Or, What Should the Chancellor Do? (1841), p. 9.
735 Bastiat uses the English phrase in the text to indicate its British origins.
736 See the glossary entry on "The Anti-Corn Law League."
737 Bastiat is possibly referring to the Irish potato famine of 1845-46.
738 Bastiat uses the English phrase "Bold experiment".
739 Bastiat is making a play on words here between selling things at "un bon prix" (a good price for the seller, i.e. a high price) and things which are for sale "au bon marché" (a good price for the buyer, i.e. at a bargain or low price). It should also be noted that the word "le marché" also means a "market" or "marketplace" in a general sense.
740 See the article "High Prices and Low Prices" ( LE , 25 July, 1847), no. 35, pp. 273-74; and Bastiat's response to letters on the article in the following issue, 1 August 1847, no. 36, p. 282. See ES2 5 in CW3 , pp. -164-54.
T.112 (1847.03.07) "The Impact of Free Trade on the Relations between People" (LE, Mar. 1847)↩
SourceT.112 (1847.03.07) "The Impact of Free Trade on the Relations between People" (Influence du Libre-Échange sur les relations des peuples), Le Libre-Échange, 7 March 1847, no. 15, pp. 115-16. [OC2.31, pp. 170-77.] [CW6]
Text(insert HTML of file here)
T.113 (1847.03.14) "The Democratic Party and Free Trade" (LE, Mar. 1847)↩
SourceT.113 (1847.03.14) "The Democratic Party and Free Trade" (Le parti démocratique et le libre-échange), Le Libre-Échange, 14 March 1847, no. 16, pp. 121-22. [OC2.17, pp. 93-100.] [CW6]
Text(insert HTML of file here)
T.114 (1847.03.14) "On the Free Importation of Foreign Cattle" (LE, Mar. 1847)↩
SourceT.114 (1847.03.14) "On the Free Importation of Foreign Cattle" (De la libre introduction du bétail étranger), Le Libre-Échange, 14 March 1847, no. 16, p. 122. [OC2.13, pp. 68-71.] [CW6]
Text(insert HTML of file here)
T.115 (1847.03.21) "On the Prohibition of Exporting Grain" (LE, Mar. 1847)↩
SourceT.115 (1847.03.21) "On the Prohibition of Exporting Grain" (Sur la défense d'exporter les céréales), Le Libre-Échange, 21 March 1847, no. 17, p. 129. [OC2.14, pp. 72-77.] [CW6]
Text(insert HTML of file here)
T.116 (1847.03.21) "To increase the price of food is to lower the value of wages" (LE, Mar. 1847)↩
SourceT.116 (1847.03.21) "To increase the price of food is to lower the value of wages" (Hausse des aliments, baisse des salaires), Le Libre-Échange, 21 March 1847, no. 17, pp. 130-31. [OC2.15, pp. 77-80.] [CW6]
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T.117 (1847.03.21) "Something Else" (LE, Mar. 1847)↩
SourceT.117 (1847.03.21) "Something Else" (Autre chose), Le Libre-Échange, 21 March 1847, no. 17, pp. 135-36. [OC4, pp. 241-51.] [CW3 - ES2.14]
XIV. Something Else417 [21 March 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Autre chose" (Something Else) [Le Libre-Échange, 21 March 1847].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 241-51.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
"What is trade restriction?"
"It is partial prohibition"
"What is prohibition?"
"It is absolute trade restriction."
"So that what you say about one applies to the other?"
"Yes, except for the degree. There is the same relationship between them as between the arc of a circle and the circle itself."
"Therefore, if prohibition is bad, restriction cannot be good?"
"No more than the arc of a circle can be straight if the circle is round."
"What is the term that is common to both restriction and prohibition?"
"Protection."
"What is the final effect of protection?"
"To require a greater amount of work from men for the same result."
"Why are people so attached to protectionist regimes?"
"Because freedom being bound to provide the same result for less work, this apparent reduction in work terrifies them."
"Why do you say apparent?"
"Because any labor saved can be devoted to something else."
"What else?"
"This cannot be specified and has no need to be."
"Why?"
"Because if the total of France's current satisfactions were achievable with a reduction of one tenth of the total of the work, no one is able to specify what new satisfactions she would want to obtain for herself with the resources that remain available. Some people would want to be better clothed, others better fed, some better educated and some better entertained."
"Please explain the mechanism and effects of protection to me."
"That is not easy. Before moving on to complicated examples, we would have to study it in its simplest form."
"Take the simplest example you want."
"Do you remember how Robinson Crusoe418 set about making a plank when he had no saw?"
"Yes, he felled a tree and, trimming the trunk with his axe first on its left and then on its right side, he reduced it to the thickness of a beam."
"And did that take him a great deal of work?"
"Two whole weeks."
"And what did he live on during this time?"
"His provisions."
"And what became of the axe?"419
"It became very blunt."
"Very well. But perhaps you did not know this. Just when he was about to give the first stroke of his axe, Robinson Crusoe saw a plank cast up by the waves on the beach."
"Oh, what a coincidence! Did he run to pick it up?"
"This was his first reaction, but then he stopped for the following reason:
"If I pick up this plank, it will cost me only the fatigue of carrying it and the time to go down the cliff and climb it again.
But if I make a plank with my axe, firstly I will give myself enough work for two weeks, secondly I will wear out my axe, which will give me the opportunity of repairing it, and then I will eat up my provisions, a third source of work, since I will need to replace them. Now, work is wealth. It is clear that I will ruin myself by going to pick up the plank washed up on the beach. It is important for me to protect my personal labor and now that I think of it, I can create further work for myself by going to push this plank back into the sea!"
"But this line of reasoning is absurd!"
"So it is! It is nevertheless the one followed by any nation that protects itself through prohibition. It rejects the plank offered to it for little work in order to give itself more work. There is no work up to and including the work of the Customs Officer in which it does not see advantage. This is illustrated by the trouble taken by Robinson Crusoe to return to the sea the gift it wished to make him. Think of the nation as a collective being and you will find not an atom of difference between its way of reasoning and that of Robinson Crusoe."
"Did Robinson not see that the time he saved he could devote to doing something else?"
"What else?"
"As long as you have needs and time in hand, you always have something to do. I cannot be expected to specify the work he might have undertaken."
"I can identify clearly the work that eluded him."
"And I maintain for my part that Robinson Crusoe, through incredible blindness, was confusing work with its result and the end with the means, and I will prove it to you."
"I will let you off that. It is nevertheless true that this is the simplest example of a restrictive or prohibitionist system. If it appears absurd to you in this form, it is because the two roles of producer and consumer are here combined in the same person."
"Let us move on to a more complicated example then."
"With pleasure. A short time afterward, when Robinson Crusoe had met Man Friday, they became friends and started to work together. In the morning they went hunting together for six hours and brought back four baskets of game. In the evening, they gardened for six hours and obtained four baskets of vegetables.
One day, a dug-out canoe landed on the Island of Despair.420 A good-looking stranger got out and was invited to the table of our two castaways. He tasted and fulsomely praised the garden products and, before taking leave of his hosts, he said to them:
"Generous islanders, I live in a land that has much more game than this but where horticulture is unknown. It would be easy for me to bring you four baskets of game each evening if you would trade me just two baskets of vegetables."
At these words, Robinson and Friday went aside to confer, and their discussion is too interesting for me not to quote it here in full:
FRIDAY: "What do you think, Friend?"421
CRUSOE: "If we accept we will be ruined."
F.: "Are you quite sure? Let us do the calculation."
C.: "The calculation has been done. When it is crushed by the competition, hunting will be a lost industry for us."
F.: "What does it matter if we have the game?"
C.: "That is only theory! It will not be the product of our labor."422
F.: "Good heavens! Yes it will, since to have it we will have to give them vegetables!"
C.: "Then what will we gain?"
F.: "The four baskets of game cost us six hours of work. The stranger will give them to us for two baskets of vegetables which cost us only three. We will thus have three hours at our disposal."
C.: "So you should say then that these three hours have been deducted from our activity. That is exactly where our loss lies. Work is wealth, and if we lose a quarter of our time, we will be a quarter less rich."
F.: "Friend, you are making a huge mistake. The same game and the same vegetables and in addition, three hours available; that is progress or there is no progress in this world!"
C.: " A mere generality! What will we do with these three hours?"
F.: We will do something else.
C.: "Ah, I have caught you out! You cannot be specific. Something else, something else, that is easy to say."
F.: "We will go fishing, improve the appearance of our cabin, read the Bible."
C.: "Utopia!423 Is it certain that we will do one thing rather than another?"
F.: "Well then, if we have nothing to do, we will rest. Is rest worth nothing?"
C.: "But when we rest we die of hunger."
F.: "Friend, you are in a vicious circle. I am talking about rest that takes nothing away from either our game or our vegetables. You continue to forget that through our trade with the stranger, nine hours of work will obtain for us as many provisions as twelve does now."
C.: "We can see that you were not brought up in Europe. Perhaps you have never read Le Moniteur industriel?424 It would have taught you that: "All time saved is a net loss. It is not eating that is important, it is work. If it is not the direct product of our work, everything we consume is of no account. Do you want to know whether you are rich? Do not look at your satisfactions but at the effort your work entails." This is what Le Moniteur industriel would have taught you. For my part, I who am not a theoretician, all I can see is the loss of our hunting."
F.: "What a strange inversion of ideas! But …"
C.: "There is no but. Besides, there are political reasons for rejecting self-interested proposals from perfidious foreigners."
F.: "Political reasons!"
C.: "Yes. Firstly, he is making us these proposals only because they are of benefit to him."
F.: "All the better, since they are the same to us too."
C.: "Secondly, through these trades we will become dependent on him."
F.: "And he on us. We will need his game and he our vegetables, and we will live in harmony." [??? - nous vivrons en bonne amitié - we will live in peace and friendship, or goodwill, live as good friends]
C.: "Theories! Do you want me to render you speechless?"
F.: "That remains to be seen; I am still waiting for a good argument."
C.: "Let us suppose that the stranger learns how to cultivate a garden and that his island is more fertile than ours. Do you see the result?"
F.: "Yes. Our relationship with the stranger will cease. He will no longer take our vegetables since he will obtain them at home for less trouble. He will no longer bring us game since we will have nothing to offer him in exchange and we will be in exactly the same position as you want us to be today."
C.: "Thoughtless savage! Do you not see that once he has killed our hunting industry by swamping us with game, he will kill our gardening industry by swamping us with vegetables?"
F.: "But this will never happen as long as we give him something else, that is to say, that we find something else that it is economic for us to produce."
C.: "Something else, something else! You keep harping on about it! You are in a rut, Friend Friday; Your ideas are not in the least practical."
The conflict lasted a long time and left each convinced that he was right, as is often the case. However, since Robinson Crusoe had great influence over Man Friday his views won the day, and when the stranger came for their reply Robinson Crusoe told him:
"Stranger, for your proposal to be accepted, we would have to be sure of two things:
Firstly, that your island is no richer in game than ours since we want to compete only on an equal footing.
Secondly, that you will lose out in the trade. For, as there is always a winner and a loser in every exchange, we would be the dupes425 if you did not. What do you say?"
"Nothing", said the stranger and bursting out laughing, he went back to his canoe.
The tale would not be so bad if Robinson Crusoe were not so absurd.
"He is no more absurd than the committee in the Rue Hauteville."426
"Oh, that is very different! You are supposing on one occasion a single man and on another two men living communally, which amounts to the same thing. This is not like our world; the division of labor, the intervention of traders and money changes the matter considerably."
"That does complicate transactions, it is true, but it does not change their nature."
"What! You want to compare modern trade with simple barter?"
"Trade is just a host of barters; the intrinsic nature of a barter is identical to the intrinsic nature of trade, just as a small job is of the same nature as a large one or as the gravity that pushes an atom is of the same nature as the one that moves a world."
"Thus, in your opinion, the reasons that are so erroneous in the mouth of Robinson Crusoe are no less so in the mouths of our protectionists?"
"That's right, only the error is better hidden under the complexity of the circumstances."
"Well then! Take an example from the real world of events."
"Very well. In France, in view of the demands of climate and customs, cloth is a useful product. Is the essential factor making it or having it?"
"A fine question! To have it you have to make it."
"That is not necessarily so. To have it, someone has to make it, that is certain, but it is not obligatory for it to be the person or the country that consumes it which produces it. You have not made the cloth that clothes you so well; France has not produced the coffee for her citizens' breakfast."
"But I have purchased my cloth and France her coffee."
"Precisely, but with what?"
"With money."
"But you have not made the money, nor has France."
"We have bought it."
"With what?"
"With our products that went to Peru."
"Therefore, in reality it is your labor that you exchange for cloth and French labor that is exchanged for coffee."
"Certainly."
"It is therefore not strictly necessary to make what you consume."
"No, if you make something else that you give in exchange."
"In other words, France has two ways of procuring a given quantity of cloth for herself. The first is to make it; the second is to make something else and trade this something else abroad for cloth. Which of these two means is the better?"
"I do not really know."
"Is it not the one that gives a greater quantity of cloth for a given amount of labor?"
"It would appear so."
"And which is better for a nation, to have the choice between these two means or that the law should forbid one in the hope of correctly stumbling across the better one?"
"It seems to me that it is better for it to have the choice, especially since in these matters she always chooses well."
"So, the law that prohibits foreign cloth decides that if France wants to have cloth, she has to make it directly, from her own resources and that it is forbidden to make the something else with which she might purchase cloth from abroad?"
"That is true."
"And since it forces France to make cloth and forbids her from making the something else, precisely because this something else would require less work (without which consideration the law would not need to become involved), the law therefore virtually decrees that, for a given amount of labor, France would have only one meter of cloth by making it when, for the same labor she might have two meters by making this something else."
"But, good Heavens, what something else?"
"Well, good Heavens, what does it matter? Given the choice, it would make something else only when there was something else to be made!"
"That is possible, but I am still concerned with the thought that foreigners send us cloth and do not take from us the something else, in which case we would be well and truly caught out. In any case, this is the objection, even from your point of view. You agree that France will make this something else to trade for cloth with less effort than if she made the cloth herself."
"Doubtless."
"There would therefore be a certain quantity of her labor left idle."
"Yes, but without her people's being less well clothed, an un-dramatic circumstance but one that underlies the whole misunderstanding. Robinson Crusoe lost sight of this; our protectionists either do not see this or they are hiding it. The plank washed ashore also brought Robinson Crusoe's work to a standstill for two weeks, as far as making a plank was concerned, but it did not deprive him of work. You therefore have to distinguish between these two types of decline in the demand for labor, the one that has as deprivation as its effect and the one which has increased satisfaction as its cause. These two things are very different, and if you do not distinguish between them you are reasoning like Robinson Crusoe. In the most complex cases, as in the most simple ones, the sophism consists in this: "Judge the usefulness of the work by its duration and its intensity and not by its results", which leads to the following economic policy: "Reduce the output of work with the aim of increasing its duration and intensity." 427
Endnotes417 (Paillottet's note) Taken from Le Libre-Échange, 21 March 1847.
418 In this chapter Bastiat makes several references to Robinson Crusoe and the economic choices he had to make in order to survive on his island. The relative simplicity of the choices he had to make (first just one person and then two with the arrival of Friday) makes this a useful device for economists to use when making "thought experiments" to illustrate economic principles such as the problem of the competing uses to which economic resources could be put. Bastiat is one of the first economists to do this in a systematic way. See the glossary entry "Bastiat's Invention of Crusoe Economics" and the Introduction.
419 See also ES2 II "The Two Axes" above pp. ???
420 "The Island of Despair" was the name given by Daniel Defoe to the island on which Crusoe was ship wrecked.
421 It is interesting to note that Friday uses the familiar form of "you" (tu) with Crusoe which is how members of the same family or close friends would address each other. This suggests that Bastiat intended Friday and Crusoe to regard each other as equals on the island. If Crusoe and not Friday had used the familiar "tu" this would indicate that Crusoe regarded Friday like a child or a pet. However, Crusoe does get very angry with Friday because of his stubborn belief in the benefits of free trade and Crusoe does call him a "savage."
422 It is also interesting to note that Bastiat makes the European Crusoe the advocate of protectionism and the native Friday the defender of free trade.
423 See the glossary entry on "Utopias."
424 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".
425 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."
426 The "Association pour la défense du travail national" (Association for the Defense of National Employment) (also called "the Odier Committee" or "the Mimerel Committee" after two of its leading members) was located in the Rue Hauteville where had its headquarters. See the glossary entries on "Association for the Defense of National Employment," "Odier," "Mimerel," and "Mimerel Committee."
427 (Paillottet's note) See chapters II. and III. of the 1st series of the Sophisms and chapter VI of the Harmonies.
T.118 "Two Methods of Equalizing Taxes" (4 April 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.118 (1847.04.04) "Two Methods of Equalizing Taxes" (Deux modes d'égalisation de taxes); original title: "Le libre échange demontré par l'example du sucre de betteraves" (Free Trade makes its point with the example of Beet Sugar), LE , 4 April 1847, no. 19, p. 152. [OC2.40, pp. 222-25.] [CW4]
Editor's IntroductionBastiat mentioned sugar several times in his writings 741 because of two factors. Firstly, it was an important source of revenue for the French government. The taxes on alcohol, tobacco, and sugar raised 308 million Fr. in 1848 or 19% of all revenue and these fell most heavily on the poor. And secondly, the sugar industry was in the unique position of being divided into two powerful groups who fought each other for better tax treatment, or what Horace Say called "la rivalité des deux sucres" (the rivalry of the two kinds of sugar). 742 This battle was between domestically produced sugar from sugar beets and foreign produced sugar from sugar cane grown in the French and other countries' colonies, often by slave labour. The domestic sugar beet industry had grown up in France as a result of Napoleon's Continental Blockade which had guaranteed French producers a monopoly for their product. Throughout the Restoration and the July Monarchy the two branches of the sugar industry fought each other in the Chamber over tax and tariff policy.
Originally the sugar beet industry was exempt from paying duties and taxes whereas foreign produced sugar suffered from a nearly prohibitive duty of 45 Fr. per 100 kg. The foreign sugar producers fought back between 1837 and 1839 and were able to get the Chamber to impose a duty of 25 fr per 100 kg on sugar produced from sugar beet in July 1840. Not surprisingly the sugar beet industry formed its own lobby group, the "Comité central des fabricants de sucre de betterave" (Central Committee of Sugar Beet Producers), in May 1840 which was too late to prevent the new tax but they were able to retain the much higher tax on foreign cane sugar at 45 Fr., thus enjoying a 20 Fr differential in duties. However, this differential did not stay for long. The Chamber agreed in principle in July 1843 that there should be "l'égalité des taxes" (equal taxes) placed on the two branches of the sugar industry. This came into effect in August 1847 (so soon after Bastiat wrote this piece) with a common duty of 45 Fr per 100 kg of premium sugar from any source.
This French debate might be likened to contemporary debates about the need for governments to ensure "a level playing field" before introducing a policy of free trade. Bastiat addressed the issue of "equalisation" in this article on the "Equalisation of Taxation" and in an earlier article on "Equalizing the Conditions of Production" in July 1845. 743
Slave produced sugar came to an end when slavery was abolished by the Constituent Assembly on 27 April after the February Revolution of 1848.
TextThose in favor of free trade have used what has happened to beet sugar as an argument to prove that the fear of competition is often an illusion.
"Everything that has been forecast with regard to foreign competition for iron, woolen cloth, and animals", they say, "has also been forecast with regard to the sugar beet industry from colonial competition. The protected industries are not invoking a single argument that domestic sugar did not invoke when it was faced with a regime of equal taxation. Setting up the two forms of sugar in competition was to condemn the weaker to death. What has happened, however? Under the goad of necessity, manufacturers have made considerable efforts in the fields of knowledge, good administration, and making savings. In doing this, they have recovered more than they lost with regard to protection; in a word, they are more prosperous than ever. Does analogy not tell us that this would also be true for other kinds of industry? Is the path of progress closed to them? Would our manufacturers not make any effort to combat their rivals and, through their adroitness, regain more than they owed to legal privilege."
This form of reasoning places free trade in an unfavorable position. It removes two-thirds of the strength of its case by implying that a reduction in taxes on foreign products and an increase in those on domestic products are the same thing. It tends to make people think that, apart from sudden and unforeseen progress, there is no salvation for our protected industries if competition is allowed. It discourages those whose faith in all this progress is less than total and who, it must be said, may well not be as quick to adapt in other branches of production as was the case in the sugar industry.
People should not be encouraged to think that the maintenance of our industries in a regime of liberty is dependent upon some vague possibility of progress the extent of which nobody is able to precisely predict.
What people have to be made to see is this: the experience of leveling the playing field through taxes is far more dangerous that that of leveling the playing field through free trade, and consequently, if domestic sugar does well from the former, a fortiori , domestic production will do well from the latter.
Two circumstances make these experiences fundamentally different form each other.
The first is obvious to all and we will not dwell on it. This is that Customs reform by its very nature brings a degree of success and economy to every enterprise. At the same time as free trade deprives certain businesses of protection, it supplies them with raw materials, fuel, machines, and food products at a lower price. This constitutes an initial form of compensation that taxes and excise duty certainly did not offer beet sugar.
The second circumstance is less obvious, although far more important. We beg our friends and even more our opponents to weigh its full importance, for the day they take the economic phenomenon to which we refer into consideration they will cease to be our opponents. At least, this is our profound conviction.
Everyone knows that when the price of a product decreases, consumption increases. Well, an increase in consumption implies an increase in demand, and consequently an increase in price.
Let us take an object whose cost price (including the producer's profit) is 100 francs, and which is subjected to a tax of 100 francs; its market price will be 200 francs.
If the tax is removed, the market price will be 100 francs, if consumption remains the same . But consumption will increase, and consequently prices will tend to rise. Industries which produce this good will get higher profits.
This shows that where two similar industries are unequally taxed, it is a matter of importance whether one attempts to achieve a level playing field by increasing taxes on one industry or by cutting taxes on another. In the first case, sales are reduced while in the second they are increased for both.
It is very clear that if the situation of the two forms of sugar had been equalized by reducing the tax on sugar from the colonies instead of taxing domestic sugar, the latter would have been able to sustain the struggle more advantageously than it did, for the reduction in tax would have reduced the market price, expanded consumption, stimulated demand, and in the end, increased the return for both forms of sugar.
The free traders who base their argument on what happened to beet sugar in order to deduce what would happen to other industries if protection were removed from them, deprive their argument of its strength, for they combine two methods for leveling the playing field, one of which one is always advantageous while the other may be fatal.
With free trade, domestic industry has three paths open to it to reach the level of foreign industry:
1. The injection of a greater degree of skill stimulated by competition;
2. A decrease in the costs of raw materials, machinery, food, etc.;
3. An increase in consumption and demand , with its effect on the rate of return.
Beet sugar had only the first of these resources with which to fight, and this was enough. Commercial freedom would place all three at the disposal of our industries. Should we seriously fear that they will fail?
From this observation an economic theory may be deduced to which we will frequently return, and for this reason we will limit ourselves for the moment to outlining it here.
The restrictive trade system claims to raise the price of the product for the benefit of the producer, but it cannot do this without putting this product out of reach of a certain number of people, without paralyzing their ability to consume, without reducing demand , and without in the end tending to reduce the very price it hopes to raise. 744
Its initial tendency , we agree, is to increase the price by favoring the producer while its subsequent tendency is to decrease it by driving consumers away, and this second tendency may even overcome the first.
And when this happens, the public loses by being prevented from consuming goods because of the higher prices caused by the measure, without the producer gaining anything from that higher price.
The producer is then in the ridiculous position in which we have shown the English tax authorities to be. You will remember that, in a situation in which tax was constantly increasing and consumption decreasing in the same proportion, there came a time when, by adding 5 percent to tax rates, the authorities received 5 percent less revenue. 745
741 The articles in which Bastiat spoke frequently about taxes on sugar are the following: his first ever article 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); "Equalizing the Conditions of Production," ( JDE , July 1845), ES1 4, CW3, pp. 25-39; "Effort and Result," ( JDE , April 1845), ES1 3 in CW3, pp. 18-24; and his most extended treatment in one of the last issues of Le Libre-Échange , "Antediluvian Sugar," ( LE , 13 February 1848, ES3 19 in CW3, pp. 365-71.
742 Horace Say, "Sucre," DEP, vol. 2, pp. 687-84. Quote p. 681.
743 "Equalizing the Conditions of Production" (JDE, July 1845), ES1 4 in CW3, pp. 25-39.
744 See the article "High Prices and Low Prices" ( LE , 25 July, 1847), no. 35, pp. 273-74; and Bastiat's response to letters on the article in the following issue, 1 August 1847, no. 36, p. 282. See ES2 5 in CW3 , pp. -164-54.
745 See a previous article by Bastiat's in which he seems to have discovered the "Laffer curve." Here he argues that increasing the rate of taxes sometimes reduces the total amount of tax raised. See, "A Curious Economic Phenomenon," above, pp. 000.
T.119 (1847.04.18 ) "Le National" (LE, Apr. 1847)↩
SourceT.119 (1847.04.18) "Le National" (Le National), Le Libre-Échange, 18 Apr. 1847, no. 21, pp. 161-62. [OC2.19, pp. 104-10.] [CW6]
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T.120 (1847.04.18) "The World Turned Up-side Down" (LE, Apr. 1847)↩
SourceT.120 (1847.04.18) "The World Turned Up-side Down" (Le monde renversé), Le Libre-Échange, 18 Apr. 1847, no. 21, pp. 162-63. [OC2.20, pp. 110-11.] [CW6]
Text(insert HTML of file here)
T.121 (1847.04.25) "Programme of the French Free Trade Association" (LE, Apr. 1847)↩
SourceT.121 (1847.04.25) "Programme of the French Free Trade Association", Le Libre-Échange, 25 Apr. 1847, no. 22, pp. 170-73. The original "Declaration of Principles" of 10 May, 1846 signed by Bastiat and the Duc d'Harcourt is reprinted, along with the Association's new programme. [DMH] [CW6]?
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T.122 (1847.04.25) "Democracy and Free Trade" (LE, Apr. 1847)↩
SourceT.122 (1847.04.25) "Democracy and Free Trade" (Démocratie et libre-échange), Le Libre-Échange, 25 Apr. 1847, no. 22, p. 174. [OC2.18, pp. 100-4??] [CW6]
Text(insert HTML of file here)
T.123 (1847.04.25) "The Free Trader's Little Arsensal" (LE, Apr. 1847)↩
SourceT.123 (1847.04.25) "The Free Trader's Little Arsensal" (Le petit arsenal du libre-échangiste), Le Libre-Échange, 25 April 1847, no. 22, pp. 175-76. Also published as a stand alone pamphlet - Frédéric Bastiat, Le Petit Arsenal du Libre-Échange (impr. de E. Crugy, 1847). Also ES2.15. [OC4, pp. 251-57.] [CW3 - ES2.15]
XV. The Free Trader's Little Arsenal428 [26 April 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Le petit arsenal du libre-échangiste [The Free Trader's Little Arsenal) [ Le Libre-Échange, 26 April 1847].
- Published as book or pamphlet: It was published as as a stand alone pamphlet in 1847,429 then in the 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 251-57.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
If someone says to you: "There are no absolute principles.430 Prohibition may be bad and restriction good."
Reply "Restriction prohibits everything it prevents from entering."
If someone says to you: "Agriculture is the mother that feeds the country."
Reply: "What feeds the country is absolutely not agriculture but wheat."
If someone says to you: "The basic means of feeding the people is agriculture."
Reply: "The basic means of feeding the people is wheat. This is why a law that causes two hectoliters of wheat to be obtained through agricultural labor at the expense of four hectoliters that the same labor applied to manufacturing would have obtained in the absence of that law, far from being a law for providing food, is a law for starvation."
If someone says to you: "Restricting the entry of foreign wheat leads to more cultivation and consequently increased production within the country."
Reply: "It leads to sowing on mountain rocks and the sands by the sea. Milking a cow over and over again gives more milk, for who can tell the moment when you will not obtain a drop more? But the drop costs a great deal."
If someone says to you: "Let bread become expensive and farmers that become rich will make industrialists rich."
Reply: "Bread is expensive when there is not much of it, which can cause only poverty, or if you prefer, very hungry rich people."
If they insist, saying: "When the price of bread goes up, wages also increase."
Reply by pointing out that in April 1847 five-sixths of workers were on alms.431
If someone says to you: "Workers' pay ought to follow the cost of living."
Reply: "That is the same as saying that in a ship without provisions, everyone has the same amount of biscuit whether there is any or not."
If someone says to you: "A good price has to be assured for those who sell wheat."
Reply: "So be it, but then a good wage has to be assured for those who buy it."
If someone says to you: "The landowners who establish the law have increased the price of bread without concerning themselves with wages because they know that when bread becomes expensive, wages rise totally naturally."
Reply: "On this principle, when workers establish the law, you should not blame them if they set a good rate of pay without concerning themselves with protecting wheat, because they know that when earnings are high, provisions become expensive totally naturally."
If someone says to you: "What then ought to be done?"
Reply: "Be just to everyone."
If someone says to you: "It is essential for a great country to have an iron industry."
Reply: "What is more essential is that this great country has iron."
If someone says to you: "It is indispensable for a great country to have a cloth industry."
Reply: "What is more indispensable is that in this great country, citizens have cloth."
If someone says to you: "Work is wealth."
Reply: "That is wrong."
And by way of development, add: "Blood letting is not health,432 and the proof that it is not health is that its aim is to provide it."
If someone says to you: "Forcing men to break rocks and produce one ounce of iron from a quintal of ore is increasing their work, and therefore their wealth."
Reply: "Forcing men to dig wells by forbidding them to take water from the river is increasing their ineffective work, but not their wealth."
If someone says to you: "The sun gives its heat and light for nothing."
Reply: "All the better for me; it costs me nothing to see clearly."
And if someone replies to you: "Production in general loses out on what you would have paid for lighting."433
Reply: "No, since having paid nothing to the sun, I use the money I save to buy clothes, furniture and candles."
Similarly, if someone says to you: "The rascally English have amortized capital."
Reply: "All the better for us; they will not make us pay interest."
If someone says to you: "The perfidious English434 find iron and coal in the same seam."
Reply: "All the better for us; they will not make us pay for bringing them together."
If someone says to you: "The Swiss have lush pastures that cost little."
Reply: "We have the advantage since they will demand from us a smaller amount of the labor which we use to furnish the driving force for our agriculture and to supply food for our stomachs."
If someone says to you: "The fields of Crimea have no value and do not pay taxes."
Reply: "We enjoy the profit when we buy wheat free of these charges."
If someone says to you: "Serfs in Poland work for no pay."
Reply: "They reap the misfortune and we the profit since the value of their labor is deducted from the price of the wheat their masters sell us."
Lastly, if someone says to you: "Other nations have a host of advantages over us."
Reply: "Through trade they are in fact obliged to get us to share them."
If someone says to you: "With freedom, we are going to be flooded with bread, prime cuts of beef, coal and jackets."
Reply: "Well, we won't be hungry or cold."
If someone says to you: "With what will we pay for them?"
Reply: "Do not worry about it. If we are flooded it is because we will be able to pay, and if we cannot pay we will not be flooded."
If someone says to you: "I would agree to free trade if foreigners took some of our products when they delivered us theirs, but they will take away our money."
Reply: "Money does not grow, any more than coffee does, in the fields of the Beauce and does not come from the workshops of Elbeuf. 435 For us, paying foreigners with it is like paying them with coffee."
If someone says to you: "Eat meat."
Reply: "Let it come in."
If someone says to you, as La Presse436 does: "When you do not have the means to buy bread, you have to buy beef."
Reply: "Advice that is as judicious as that given by Mr. Vulture to his tenant:
When you do not have the means to pay your rent,
You should have a house of your own.437
If someone says to you, as La Presse does: "The State should teach the people why and how it must eat beef."
Reply: "Let the State merely allow beef to enter and, as for eating it, the most civilized nation in the world is old enough to learn how to do so without a tutor."
If someone says to you: "The State has to know everything and anticipate everything in order to direct the nation and the nation has only to let itself be directed."
Reply: "Is there a State outside the nation and human farsightedness outside humanity? Archimedes may have repeated: "With a lever and a fulcrum I will move the world" every day of his life but for all that not moved it an iota because he lacked a fulcrum and a lever. The fulcrum of the State is the nation, and there is nothing more senseless than to base so much hope on the State, that is to say, to postulate collective knowledge and farsightedness after assuming in fact individual stupidity and lack of foresight."438
If someone says to you: "My God! I am not asking any favors but merely for a duty on wheat and meat which compensates for all the heavy taxes to which France is subjected; just a simple little duty that is equal to what taxes add to the cost price of my wheat."
Reply: "A thousand pardons, but I too pay taxes. Therefore, if protection, which you are voting for in your own interests, has the effect of raising the price of your wheat to me, by exactly the amount of your share of the taxes, your sweet sounding request seems to be nothing less than the following arrangement: "In view of the fact that our taxes are weighty, I the seller of wheat will pay nothing and you, my neighbor and purchaser, will pay two shares, that is to say, yours and mine." Mr. Wheat Merchant, my neighbor, you may have force on your side, but what is absolutely certain is that you do not have right."
If someone says to you: "However, it is very hard for me, who pay taxes, to compete in my own market with foreigners who do not pay any."
Reply:
1. "Firstly, it is not your market but our market. I, who live on wheat and pay for it, ought to count for something."
2. "Few foreigners in the current climate, are exempt from taxes."
3. "If the taxes you vote for provide you with more roads, canals, security, etc. than they cost you, you are not justified in rejecting at my expense competition from foreigners who do not pay these taxes but who equally do not have the security, roads and canals in question. It is as good as saying: I demand a compensatory duty because I have finer clothes, stronger horses and better ploughs than Russian laborers."
4. "If taxes do not repay what they cost, do not vote for them."
5. "And finally, once you have voted for the taxes, do you want to exempt yourself from them? Imagine a system that inflicts them on foreigners. However, tariffs make your share fall upon me, and my share is quite enough."
If someone says to you: "In Russia, they need free trade in order to trade their products advantageously." (The opinion of Mr. Thiers,439 speaking to the departments, April 1847).440
Reply: "Freedom is necessary everywhere and for the same reason."
If someone says to you: "Every country has its own needs. It is according to these that it is necessary to act." (Mr. Thiers).
Reply: "It is according to these that a country will act by itself when it is not prevented from doing so."
If someone says to you: "Since we have no sheet iron, we have to allow it to enter." (Mr. Thiers).
Reply: "Oh, thank you very much."
If someone says to you: "We need freight for our merchant navy. Lacking loads on the return journey makes it impossible for our shipping to compete with foreign shipping." (Mr. Thiers).
Reply: "When people want to do everything at home, they cannot have freight either on the inward or outward journeys. It is just as absurd to want a merchant navy under a prohibitionist regime as it would be to want carts where all forms of transport have been forbidden."
If someone says to you: "Even if we suppose that protectionism is unjust, everything has been has been arranged on precisely that basis; capital has been committed to it and duties established. We cannot extricate ourselves from it painlessly."
Reply: "All injustice is of benefit to someone (except, perhaps, for a policy of restrictions which in the long run benefits no one); to defend injustice on the grounds of the inconvenience that its abolition will cause the person who benefits from it, is to say that an injustice should be eternal for the sole reason that it has existed for an instant."
Endnotes428 (Paillottet's note) Taken from the issue of Le Libre Echange dated 26th April 1847.
429 Frédéric Bastiat, Le Petit Arsenal du libre-échange (impr. de E. Crugy, 1847).
430See the Sophism with this title "There are No Absolute Principles" in Sophisms I, no. XVIII, p. ???.
431 We have not been able to verify this. However, crop failures in 1846-1847 caused considerable hardship and a rise in food prices in 1847 across Europe. Some historians believe this was a contributing factor to the outbreak of revolution in 1848. The average price of wheat in France was 18 fr. 93 c. per hectolitre in 1845; which rose to 23 fr. 84 c. in 1846 (which had a poor harvest). Prices were even higher in the last half of 1846 and the first half of 1847 when the shortage was most accutely felt. In December 1846 it rose to 28 fr. 41 c; and reached a maximum of 37 fr. 98 c. in May 1847. The average price for the period 1832-1846 had been 19 fr. 5 c. per hectolitre. The lowest average price reached between 1800 and 1846 was 14 fr. 72 c. in 1834. See AEPS, pour 1848 (Paris: Guillaumin, 1848), pp. 179-80. See the glossary entry on "The Irish Famine and the Failure of French Harvests 1846-47."
432 Note that Bastiat quotes favorably Molière's parody of 17th century doctors who let blood in Le malade imaginaire (The Imaginary Invalid, or the Hypocondriac) (1673). Bastiat turns this into his own parody to make fun of tax collectors. See Economic Sophisms II, IX. "Theft by Subsidy" pp. ???. See the glossary entry on "Molière."
433 This is the witty assumption behind ES1 VII. "Petition of the Manufacturers of Candles" above pp. ???
434 See the glossary entry on "Perfidious Albion."
435 Beauce is an important grain growing region in north-central France. Elbeuf is an industrial town in northern France on the Seine river to the south of Rouen.
436 La Presse was a widely distributed daily newspaper, created in 1836 by the journalist, businessman, and politician Émile de Girardin (1806-81). See the glossary entries "La Presse" and "French Newspapers."
437 These lines come from a play by Marc Antoine Madelaine Désaugiers (1772-1827) called M. Vautour, ou le propriétaire sous le scellé (Mister Vulture, or the owner under the Seal) (first performed 13 June 1805). Désaugiers was anti-semitic and his depiction of a grasping tobacco store owner, "Vautour", was taken up in French slang as a typical hard-hearted landlord and creditor. M. Vautour, ou le propriétaire sous le scellé, vaudeville en un acte; par MM. Désaugiers, Tournay et Geroge-Duval. Seconde edition (Paris: Masson, 1805), p. 11.
438 Here Bastiat is raising what Friedrich Hayek called the knowledge problem, namely that central planners lack the necessary local knowledge provided by free market prices to make rational economic decisions. See Friedrich August von Hayek, "The Use of Knowledge in Society," American Economic Review, XXXV, No. 4; September, 1945, pp. 519–30. </title/9>.Note also Bastiat's 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).
439 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."
440 It is not clear where these remarks by Thiers were delivered but his hostility to the idea of free trade can be seen in an address he gave to the National Assembly in June 1851: "De toutes les chimères que j'ai eu à combattre, il n'y en a pas de plus vaine et de plus dangereuse que celle qui s'est appelée Le Libre-Échange. Depuis quelques années elle a écrit, parlé, dogmatisé, professé, sans rencontrer de contradicteur. J'ai cru utile de l'arrêter une fois dans sa marche, et aussitôt j'ai été repris comme je l'avais mérité par les grands esprits que la science économique a produits. Ce n'est pas de cela qu'il s'agit, et je ne veux ici que relever certaines assertions pour en prouver la fausseté." (Of all the chimeras which I have had to combat, there is none more vain and dangerous as that which goes by the name of free trade. For several years they (advocates of free trade) have written, spoken, dogmatized, professed without meeting any contradiction. Once I thought it useful to stop it in its tracks and immediately I was corrected as I deserved by the great worthies which political economy has produced. But that is not what is at issue here, I only wish to raise certain assertions in order to prove their falsity.) Discours de M. Thiers sur le régime commercial de la France: prononcés à l'Assemblée nationale les 27 et 28 juin 1851 (Paris:Paulin, Lheureux et cie, 1851), p. iv.
T.124 (1847.05.02) "The Sliding Scale and its Impact on England" (LE, May 1847)↩
SourceT.124 (1847.05.02) "The Sliding Scale and its Impact on England" (L'échelle mobile et ses effets en Angleterre), Le Libre-Échange, 2 May 1847, no. 23, pp. 177-78. [OC2.10, pp. 48-57.] [CW6]
Text(insert HTML of file here)
T.125 (1847.05.02) "Mr. Cunin-Gridaine's Logic" (LE, May 1847)↩
SourceT.125 (1847.05.02) "Mr. Cunin-Gridaine's Logic" (La logique de M. Cunin-Gridaine]), Le Libre-Échange, 2 May 1847, no. 23, p. 184. [OC2, pp. 370-73.] [CW3 - ES3.3]
III. M. Cunin-Gridaine's Logic [2 May 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "La logique de M. Cunin-Gridaine" (Mr. Cunin-Gridaine's Logic) [2 May 1847, 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. 370-73.
- Previous translation: [none]
Speaking about the two associations493 that have been formed, one to demand that the general public be held to ransom and the other to demand that the general public not be held to ransom, Mr. Cunin-Gridaine494 said the following:
"Nothing demonstrates exaggeration better that the exaggeration that opposes it. It is the best way of showing calm and disinterested minds where truth lies, since truth is never divorced from moderation."
It is certain, according to Aristotle, that truth is to be found between two opposing exaggerations. The important thing is to ascertain whether two contrary statements are equally exaggerated, without which the judgment that is to be made, while appearing to be impartial, will in fact be inequitable.
Pierre and Jean are pleading their cause before the judge in a small town.
Pierre, the plaintiff, moved that he should beat Jean every day.
Jean, the defendant, moved that he should not be beaten at all.
The judge pronounced the following sentence:
"Seeing that nothing proves exaggeration better than the exaggeration that opposes it, let us cut the quarrel in half and say that Pierre will beat Jean but only on odd days."
Jean appealed against this, as was to be expected, but having learnt logic, he was careful this time not to move that his brutish adversary's case be simply dismissed.
Therefore, when Pierre's lawyer read the introductory plea to the court which ended with these words: May it please the court to allow Pierre to rain a hail of blows on Jean's shoulders."
Jean's lawyer replied with this equally conventional request: "May it please the court to allow Jean to take his revenge on Pierre's back."
The precaution was necessary. Suddenly, justice found itself placed between two forms of exaggeration. It decided that Jean would no longer be beaten by Pierre nor Pierre by Jean. Basically, Jean did not want any other result.
Let us imitate this example. Let us take our precautions against Mr. Cunin-Gridaine's logic.
What is involved? The Pierres of the Rue Hauteville495 are pleading for the right to hold the general public to ransom. The Jeans of the Rue Choiseul are naively pleading for the general public not to be held to ransom. At which the Minister has gravely pronounced that truth and moderation are at the mid-point between these two claims.
Since the judgment has to be based on the assumption that the association for free trade is exaggerating, what this association can best do is to exaggerate in fact and place itself at the same distance from truth as the prohibitionist association, so that the exact center coincides more or less with justice.
For this reason, while one side demands a tax on consumers for the benefit of producers, the other, instead of wasting its time opposing a refusal, will formally demand a tax on producers for the benefit of consumers.
And when ironmasters say: "For each quintal of iron that I deliver to the general public, I expect them to pay me a premium of 20 francs, in addition to the price,"
The general public should be quick to reply: "For every quintal of iron that we bring in from abroad, free of duty, we expect ironmasters in France to pay us a premium of 20 francs."
Then it would be true to say that the pretensions of both parties are equally exaggerated, and the Minister would throw them out, saying, "Go away, and do not inflict taxes on one another," at least if he is faithful to his line of logic.
Faithful to his line of logic? Alas, the entire line of his logic lies in the exposition of motives; it no longer appears again in the acts themselves. After having proposed in fact that injustice and justice are two forms of exaggeration, that those who want protectionist duties to be maintained and those who demand their removal are equally far from the truth, what should the Minister496 do to remain consistent? He should place himself at the center, and imitate the village judge who passed a sentence of half a beating497; in a word, reduce protectionist duties by half. He has not even touched them. (See number 50.498)
His dialectic, commented on by his actions, amounts to this: Pierre, you request to be allowed to give four strokes: Jean, you request not to receive any.
The truth, which is never divorced from moderation, lies between these two requests. According to my line of logic, I should authorize only two strokes; following my inclination, I will allow four, as before. And for the execution of my sentence, I will make the legal authorities available to Pierre at Jean's expense.
But the finest bit of the story is that Pierre leaves the court furious because the judge has dared openly to compare his exaggeration with that of Jean. (See Le Moniteur industriel).
Endnotes493 The two associations referred to are the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment), and the free trade L'Association pour la Liberté des Echanges (The Free Trade Association). The latter was founded in February 1846 in Bordeaux with Bastiat as the Secretary and editor of their magazine Le Libre-Échange. The former was founded by Pierre Mimerel de Roubaix (1786-1872) in October 1846 and its journal was Le Moniteur industrial. See the glossary entries for "Free Trade Association," "Le Libre-Échange," "Mimerel," "Le Moniteur industriel," and "Association for the Defense of National Employment."
494 Laurent Cunin-Gridaine (1778-1859) was a very successful , self-made textile manufacturer from Sedan. As Minister for Trade from 1840 to 1848 he was a strong supporter of protection for the textile industry. See the glossary entry on "Cunin-Gridaine."
495 (Paillottet's note) The offices of Le Libre-Échange were in the Rue de Choiseul and those of Le Moniteur Industriel in the Rue Hauteville.
496 Laurent Cunin-Gridaine (1778-1859) was a very successful , self-made textile manufacturer from Sedan. As Minister for Trade from 1840 to 1848 he was a strong supporter of protection for the textile industry. See the glossary entry on "Cunin-Gridaine."
497 Bastiat uses the French "la demi-bastonnade." Bastonnade was a form of judicial punishment where a rod was used to beat a person, usually on the back. When he was a Deputy in the Constituent Assembly Bastiat voted in September 1848 against the re-introduction of corporal punishment and for the abolition of the death penalty. See "Bastiat's Activities in the National Assembly (1848-1850)" in Appendix 1 "Further Aspects of Bastiat's Life and Thought."
498 ES3 V. "On Moderation," below pp. ???
T.126 (1847.05.09) "Subsistance Farming" (LE, May 1847)↩
SourceT.126 (1847.05.09) "Subsistance Farming" (Subsistances), Le Libre-Échange, 9 May 1847, no. 24, p. 185. [OC2.12, pp. 63-68.] [CW6]
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T.127 (1847.05.09) "The Emperor of Russia" (LE, May 1847)↩
SourceT.127 (1847.05.09) "The Emperor of Russia" (L'empereur de Russie), Le Libre-Échange, 9 May 1847, no. 24, pp. 185-86. [OC2.29, pp. 164-68.] [CW6]
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T.128 (1847.05.09) "One Profit against Two Losses" (LE, May 1847)↩
SourceT.128 (1847.05.09) "One Profit against Two Losses" (Un profit contre deux pertes), Le Libre-Échange, 9 May 1847, no. 24, p. 192. [OC2, pp. 377-84.] [CW3 - ES3.4]
IV. One Profit versus Two Losses [9 May 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Un profit contre deux pertes" (One Profit versus Two Losses) [9 May 1847, 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. 377-84.
- Previous translation: [none]
It is now seventeen years since a political writer, whom I will not name, directed an argument against protection by the Customs Service in an algebraic form, which he called the double incidence of loss.499
This argument made something of an impression. Those benefiting from privilege made haste to refute it, but it so happened that all they did to this end served only to elucidate the argument, to make it increasingly invincible and, what is more, make it popular, to the extent that these days, in the country in which this took place, protection no longer has any partisans.
Perhaps people will ask me why I do not mention the name of the author? Because my philosophy master taught me that this sometimes very adversely compromises the effect of the quotation.500
This master imposed on us a course peppered with passages some of which were taken from Voltaire and Rousseau and invariably preceded by the following formula: "A famous author said, etc." As a few volumes of these tiresome writers had slipped into our school, we were well aware to whom he was referring. We therefore never failed, when reciting a lesson, to replace the formula with these words: Rousseau said or Voltaire said.501 But instantly, the teacher, raising his arms to the sky, would cry out: "Do not mention names, friend B.; you have to learn that many people will admire the phrase but would consider it dreadful if they knew where it came from." It was at the time when opinion inspired our great songwriter502, or I ought rather to say our great poet, to pen the following chorus:
It is Voltaire's fault,
It is Rousseau's fault.503
I will therefore suppress the name of the author and the algebraic form and reproduce the argument, which is limited to establishing that any advantage flowing from tariffs will of necessity bring about the following:
1. A profit for one industry;
2. An equal loss for another industry;
3. An equal loss for the consumer.
These are the direct and necessary effects of protection. In all justice, and to complete the assessment, we ought in addition to impute to it a number of ancillary losses, such as the cost of surveillance, expensive formalities, commercial uncertainty, fluctuations in duties, aborted operations, the increased likelihood of war, smuggling, repression, etc.
However, I will limit myself here to the necessary consequences of protection.
A short story will perhaps clarify the explanation of our problem.
An ironmaster needed wood for his factory. He had negotiated with a poor woodcutter who was not very educated and who had to chop wood one day a week, from morning to night, for 40 sous.
This may seem curious, but it so happened that by dint of hearing talk on protection, domestic industry, the superiority of foreign goods, cost prices, etc. our woodcutter became an economist in the style of Le Moniteur industriel,504 so effectively that a bright idea entered his mind at the same time as the thought of a monopoly entered his heart.
He went to find the ironmaster and said to him:
"Master, you give me 2 francs for one day of work; in future you will give me 4 francs and I will work for 2 days."
"Friend", replied the ironmaster, "I have enough wood with the wood you split in one day."
"I know," said the woodcutter, "and so I have taken steps. Look at my axe; see how blunted and ragged it is. I assure you that I will take two full days to split the wood that I split now in one day."505
"I will lose 2 francs in this arrangement."
"Yes, but I, for my part, will gain them and, with regard to the wood and you, I am the producer and you are just a consumer. A consumer! Does he warrant any pity?"
"And if I proved to you that apart from the 40 sous506 it will cause me to lose, this agreement will also cost another worker 40 sous?"
"Then I will say that his loss balances my gain, and that the final result of my invention is that you, and consequently the nation as a whole, will suffer a clear loss of 2 francs. But who is this worker who will have something to complain about?"
"Jacques the gardener, for example, whom I will no longer give the opportunity to earn 40 sous a week as he does now, since I will have already spent the 40 sous; and if I do not deprive Jacques of this sum, I will be depriving someone else."
"That is true, I give up and will go to sharpen my axe. Incidentally, if because of my axe, work to the value of 2 francs is lost to the world, that is a loss and it has to fall on someone … Pardon me, Master, I have just had an idea. If you allow me to earn these 2 francs, I will enable the café owner to earn them and this gain will compensate the loss to Jacques."
"My friend, you would be doing only what Jacques would do himself as long as I employed him and what he would no longer do if I dismissed him, as you are asking me to do."
"That is true, I am defeated and can clearly see that there is no profit to the nation to be had from dulling the blades of axes."
However, our woodcutter went over the problem in his head, while chopping wood. He said to himself: "Nonetheless, I have heard it said to the boss a hundred times that it was beneficial to protect producers at the expense of consumers. It is true that he has pointed out here another producer whom I had not considered."
A short time later, he went to the ironmaster and said to him:
"Master, I need 20 kilograms of iron and here is 5 francs to pay for it."
"My friend, for this price, I can give you only 10 kilograms."
"That is a shame for you since I know an Englishman who will give me the 20 kilograms I need for 5 francs."
"He is a scoundrel."
"So be it."
"An egoist, a perfidious man who acts in his own interest."507
"So be it."
"An individualist, a bourgeois, a trader who does not know what self-denial, self-sacrifice, fraternity or philanthropy are."
"So be it, but he is giving me 20 kilograms of iron for 5 francs while you, as fraternal, self-sacrificing and philanthropic as you are, you are giving me only 10."
"That is because his machines are more advanced than mine."
"Oh! Oh! Mr. Philanthropist! So you are working with a dull axe and you want me to bear the loss?"
"My friend, you have to, so that my industry may be favored. In this world, we must not always think of ourselves and our own interests."
"But it seems to me that it is always your turn to think of your interests. In the last few days you have not wanted to pay me for using a bad axe and today you want me to pay you for using bad machines."
"My friend, that is quite different! My industry is a national one and of great importance."
"With regard to the 5 francs in question, it is not important for you to gain them if I have to lose them."
"And do you no longer remember that when you suggested to me that my wood be split with a blunt axe I proved to you that in addition to my loss, an additional loss, equal to mine, would be suffered by poor Jacques, and each of these losses would equal your profit, which in the end would amount to a clear loss for the nation as a whole of 2 francs? For the two cases to be equal, you would have to prove that if my gain and your loss were in balance there would still be loss caused to a third party."
"I do not see that this proof is very necessary, for according to what you say, whether I buy from you or the Englishman, the nation is not bound to lose or gain anything. And in this case, I do not see why I should spend for your benefit and not mine what I have earned through the sweat of my brow. What is more, I think I can prove that if I give you 10 francs for your 20 kilograms of iron, I would lose 5 francs and someone else would lose 5 francs; you would gain only 5 francs with the result that the entire nation would suffer a clear loss of 5 francs."
"I am intrigued at the prospect of listening to your chopping down my proof".
"And if I split it neatly, will you agree that your claim is unjust?"
"I do not promise to agree with your case, you know, because where these matters are concerned, I am a little like the gambler in the comedy508 and I say to political economy:
You may well convince me, oh, science, my enemy,
But make me admit it, there I challenge you!
But let us take a look at your argument."
"First of all, you have to know one thing. The Englishman has no intention of taking my 100 sous coin back to his own country. If we strike a bargain (the ironmaster remarks as an aside: I'll sort that out), he has asked me to buy two pairs of gloves for 5 francs, which I will give him in return for his iron."
"That is not important. Get on with your proof."
"Very well, let us now make the calculation. With regard to the 5 francs that represent the natural price for the iron, it is clear that French production will be neither more nor less stimulated overall whether I give this money to you to make the iron directly or whether I give it to the glove maker to supply me with the gloves the Englishman has requested in exchange for the iron."
"That sounds reasonable."
"So let us leave aside these first 100 sous. There remains the problem of the other 5 francs. You say that if I agree to lose them, you would gain them and your industry would benefit by this amount."
"Doubtless."
"But if I reach agreement with the Englishman, these 100 sous would remain in my pocket. As it happens, I find that I have a pressing need for a pair of shoes. Here then is a third person, the shoemaker, who is concerned by this matter. If I deal with you, your industry would be stimulated to the extent of 5 francs; that of the shoemaker would be depressed to the extent of 5 francs, which is the exact balance. And in the end, I would not have any shoes; so that my loss would be clear and the nation, in my person, would have lost 5 francs."
"Not a bad line of reasoning for a woodcutter! But you have lost sight of one thing, and that is that the 5 francs you will cause the shoemaker to earn, if you traded with the Englishman, I would myself allow him to earn if you traded with me."
"I beg your pardon, Master, but you yourself taught me the other day that I should beware of this confusion.
I have 10 francs.
If I trade with you I will give them to you, and you will do what you want with them.
If I trade with the Englishman, I will distribute them thus: 5 francs to the glove maker and 5 francs to the shoemaker, and they will do what they like with them.
The subsequent consequences of the circulation of these 10 francs, by you in one case and by the glove maker and shoemaker in the other, are identical and cancel each other out. There should be no question of this.509
There is therefore just one difference in all this. Following the first bargain, I would not have any shoes; following the second, I would have."
The ironmaster goes off grumbling: "Ah, where the devil is political economy taking us? Two good laws will stop all this nonsense; a Customs law that will give me the power of the State, since I will not be in the right, and a law on education that will send all the young people to study society in Sparta or Rome.510 It is not a good thing for the people to have such a clear view of its affairs."511
Endnotes499 Bastiat is referring to an idea developed by Colonel Perronet Thompson (1783-1869) who was an anti-corn law advocate. Bastiat says here that Thompson's argument about "the double incidence of loss" appeared 17 years earlier in 1830 but no new work by Thompson appeared in that year. The phrase does appear in his "A running commentary on anti-commercial fallacies" which was published in 1834, in which he observes that "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." pp. 188-89. See Thomas Perronet Thompson, Letters of a representative to his constituents, during the session of 1836. To which is added, A running commentary on anti-commercial fallacies, reprinted from the Spectator of 1834. With additions and corrections. (London: Effingham Wilson, 1836). See the glossary entries on "Perronet Thompson" and "The Double Incidence of Loss."
500 (Paillottet's note) The name that the author does not mention is that of an eminent member of the English League, Colonel Perronnet (sic) Thompson. See <TBK>. [DMH - Paillottet misspells Perronet Thompson's name by spelling it like his own name.]
501 See the glossary entries on "Rousseau" and "Voltaire."
502 Pierre-Jean de Béranger (1780-1857) was a liberal poet and songwriter who rose to prominence during the Restoration period with his funny and clever criticisms of the monarchy and the church. He was sent to prison twice in the 1820s for offending the political authorities with his irreverent verses. Bastiat knew him and was known to have sung his drinking songs on occasion. See the glossary entries on "Béranger," "Voltaire," and "Rousseau."
503 These lines come from the satirical song by Béranger, "Mandement des vicaires généraux de Paris" (Pastoral from the vicars general of Paris) (1817) which mocks the ruling elites of the early Restoration who blamed every problem of the day on the ideas of Rousseau and Voltaire. A typical verse is the following: "In order to teach children that they were born to be slaves, shackles were fitted when they first learned to move. If mankind is free in the cradle it is the fault of Rousseau; if reason enlightens them then it is the fault of Voltaire." Pierre-Jean de Béranger (1780-1857) was a liberal poet and songwriter who rose to prominence during the Restoration period with his funny and clever criticisms of the monarchy and the church. He was sent to prison twice in the 1820s for offending the political authorities with his irreverent verses. Bastiat knew him and was known to have sung his drinking songs on occasion. Chansons de Béranger. Nouvelle édition (Bruxelles: A. Wahlen, 1832), pp. 442-447. See the glossary entries on "Béranger," "Goguettes," "Voltaire," and "Rousseau."
504 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".
505 See the similar story about "The Two Axes" in ES2 no. III, p. ???
506 1 Franc = 20 sous. See "French Currency" in Appendix 3 "Economic Policy and Taxation."
507 See the glossary entry on "Perfidious Albion."
508 These lines come from Le Joueur (The Gambler) (1696) a comedy by J.F. Regnard (1685-1709). Bastiat changes the original "fortune" to "science" in order to suit his purpose in this Sophism. In the original, Valère, a compulsive gambler, says "You can make me lose, oh, fortune, my enemy! But to make me pay, hell, I challenge you! Because I don't have a sou". Oeuvres de Regnard. Tome 1 (Paris: Martel Ardant frères, 1847), Act I, scene IV, p. 79.
509 (Paillottet's note) See chapter VII of the pamphlet What is seen as what is not seen, farther in this volume.
510 Bastiat had a deep dislike of the classics and disapproved of teaching them in the schools. He thought that the Greek and Roman authors whom school children had to read had served in the army, held high political officer, owned slaves, and disdained most economic activity. He regarded them as conquerors and plunders who should not be used as models. See his many references to the classics in his correspondence, Collected Works, vol. 1.
511 (Paillottet's note) See the pamphlet Baccalaureate and Socialism on page <TBK>in vol. II.
T.129 (1847.05.23) "The People and the Bourgeoisie" (LE, May 1847)↩
SourceT.129 (1847.05.23) "The People and the Bourgeoisie" (Peuple et bourgeoisie), Le Libre-Échange, 23 May 1847, no. 26, p. 202. [OC2, pp. 348-55.] [CW3 - ES3.6]
VI. The People and the Bourgeoisie [22 May 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Peuple et Bourgeoisie" (The People and the Bourgeoisie) [22 May 1847, 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. 348-55.
- Previous translation: [none]
Men are easily made dupes522 by intellectual systems, provided that some symmetrical arrangement makes them easy to understand.
For example, nothing is more common these days than to hear it said that the people and the bourgeoisie constitute two opposing classes with the same hostile relationships to each other that once pitted the bourgeoisie against the aristocracy.
"Initially, the bourgeoisie were weak." it is said, "They were oppressed, crushed, exploited and humiliated by the aristocracy. They grew in stature, became wealthy and stronger to the point that, through the influence engendered by numbers and wealth, they overcame their adversaries in 89.523
They then in turn became the aristocracy. Beneath them is the people, which is growing in stature, becoming stronger and, in the second act of the social war, is preparing to conquer."524
If symmetry were enough to give truth to intellectual systems, we cannot see why this one will not go further. Might we not add in effect:
"When the people has triumphed over the bourgeoisie, it will dominate and consequently become the aristocracy with regard to beggars. Beggars will grow in stature, become stronger in turn and will prepare for the world the drama of the third social war.525
The least of the defects in this theory, which is the talk of many of the popular journals, is to be wrong.
Between a nation and its aristocracy, we clearly see a deep dividing line, an undeniable hostility of interests, which sooner or later can only lead to strife. The aristocracy has come from outside; it has conquered its place by the sword and dominates through force. Its aim is to turn the work done by the vanquished to its own advantage. It seizes land, has armies at its disposal and seizes the power to make laws and expedite justice. In order to master all the channels of influence, it has not even disdained the functions, or at least the dignities, of the church. In order not to weaken the esprit de corps that is its lifeblood, it transmits the privileges it has usurped from father to son by way of primogeniture. The aristocracy does not recruit from outside its ranks, or if it does so, it is because it is already on the slippery slope.
What similarity can we find between this arrangement and that of the bourgeoisie? In fact, can we say that there is a bourgeoisie? What does this word mean? Do we call a bourgeois someone who, through his activity, assiduity and self-denial has put himself in a position to live on the accumulated value of previous work, in a word on capital? Only an abject ignorance of political economy could suggest the idea that living on the accumulated value of work is to live off the work of others. Let those, therefore, who define the bourgeoisie in this way start by telling us what there is, in leisure time laboriously acquired, in the intellectual development that is the consequence of this, and in the accumulation of capital which forms its foundation, that is essentially opposed to the interests of humanity, the community or even the working classes.
If these leisure activities cost nothing to anyone, do they deserve to arouse jealousy?526 Does this intellectual development not benefit progress, both in the moral and industrial spheres? Is not the ever-increasing amount of capital, precisely because of the advantages it confers, the basis on which those who have not yet become emancipated from manual work live? And is not the well-being of these classes, all other things being equal, exactly in proportion to the size of this capital, and consequently to the speed with which it is formed and the activities which compete for it?
Obviously however, the word bourgeoisie would have a very limited meaning if it were applied solely to men of leisure. We hear it also applied to all those who are not salaried, who have an independent profession, who manage at total risk to themselves farming, manufacturing and commercial enterprises or who devote themselves to the study of science, the exercise of the arts or intellectual activity.527
But in this case it is difficult to imagine how the radical opposition between the bourgeoisie and the people that justifies a comparison between their relationships and those of the aristocracy and democracy, can be found. Has not every enterprise its opportunities? Is it not very natural and fortunate that the social mechanism allows those who may lose to take advantage of them?528 And besides, is it not from the ranks of the workers that the bourgeoisie is constantly and at all times being recruited? Is it not within the working class that capital, the object of so many wild denunciations, is built up? What! For the very reason that a worker has all the virtues by means of which man is emancipated from the yoke of immediate need, because he is hard-working, thrifty, well-organized, in control of his emotions and upright, because he works with some success to leave his children in a better situation than the one he himself had, in a word, he has founded a family, it might be said that this worker is on the wrong track, a track that takes him away from the popular cause and which leads to the place of perdition which is the bourgeoisie! On the contrary, it will be enough for a man to have no ambition for the future, to waste his gains irresponsibly, to do nothing to warrant the trust of those who employ him or to refuse any sacrifice, for it to be true to say that he is a man of the people par excellence, a man who will never rise above the roughest kind of work and a man whose own interest will, of course, always be in line with the interest of society well understood!
It is a cause of deep sadness to be faced with the frightful consequences contained in these erroneous doctrines and the way in which these ideas are propagated with such ardour. A social war is spoken of as being as natural and inevitable, which is bound to be brought on by the alleged radical hostility between the people and the bourgeoisie and which is similar to the strife that in all countries has brought the aristocracy and democracy to blows. But, once again, is the comparison accurate? Can one assimilate wealth obtained by force to that acquired through work? And if the people consider any rise in status, even the natural rise generated by industry, thrift and the exercise of every virtue to be an obstacle to be overturned, what motive, stimulus or raison d'être will there be left to human activity and foresight?529
It is dreadful to think that an error so pregnant with disastrous possibilities is the outcome of the profound ignorance in which modern education swaddles the current generations with regard to anything that relates to the way society works.
Let us not therefore see two nations within the same nation; there is just one. An infinite number of rungs on the ladder of wealth, each due to the same principle, is not enough to make up different classes, and still less classes that are hostile to one another.
However, it must be said that there are in our laws, principally in our financial laws, certain arrangements that seem to be maintained merely to sustain and, in a manner of speaking, justify both the mistake the public makes and its anger.
It cannot be denied that the ability to influence laws, concentrated in just a few hands, has on occasion been used with partiality. The bourgeoisie would be in a strong position with regard to the people if it were able to say "Our contribution to common assets differs in degree but not in principle. Our interests are identical; when I defend mine, I am also defending yours. You can see proof of this in our laws; they are based on strict justice. They guarantee all property equally, whatever its size."
But is this the case? Is the property created by labor treated by our laws in the same way as property based on land or in capital? Certainly not. Setting aside the question of the allocation of taxes, one can say that the protectionist regime is a special terrain on which individual interests and classes give themselves over to the bitterest of struggles, since this regime claims to balance up the rights and sacrifices of all forms of production. Well, in this matter, how has the class that makes the law treated labor? How has it treated itself? We can state that it has done nothing and can do nothing for labor as such, although it clearly affects the faithful guardianship of the national workforce. What it has tried to do is to raise the price of all products, saying that wages would naturally follow such a rise. Well, if it has failed in its initial aim, as we believe it has, it has succeeded even less in its philanthropic intentions. The price of labor depends solely on the relationship between available capital and the number of workers. Now if protectionism can do nothing to change this ratio, if it can neither increase the pool of capital nor decrease the number of workers, whatever influence it has on the price of products, it has none on rates of pay.
We will be told that we are contradicting ourselves; on the one hand we are arguing that the interests of all classes are homogeneous and now we are identifying a point on which the wealthy class is abusing legislative power.
Let us hasten to say that the oppression exercised in this form by one class over another is not in the least intentional; it is purely an economic error, shared by the people and the bourgeoisie. We will provide two irrefutable proofs of this; the first is that protection does not benefit those who have set it up in the long run. The second is that, if it is damaging to the working classes, they are totally unaware of this, to the point where they are ill disposed to those who favor freedom.
However, it is in the nature of things that once the cause of a wrong has been pointed out it ends by becoming generally known. With what terrible argument will the injustice of the protectionist regime not supply the recriminations of the masses!530 Let the electoral class531 be on their guard! The people will not always seek the cause of its suffering in the absence of a phalanstery, of an organization for work, or some other illusory combination.532 One day it will see injustice where it really is. One day it will discover that a great deal is being done for products but nothing for wages, and that what is being done for products has no influence on wages. It will then ask itself: "How long have things been like this? When our fathers were able to approach the ballot box, were the people forbidden as they are today from exchanging their pay for iron, tools, fuel, clothing and bread? They will find a reply in writing in the tariffs of 1791 and 1795533. And what answer will you give them, you industrialists who make the law, if they add: "We can clearly see that a new form of aristocracy has taken the place of the old."? (<TBK>)534.
If therefore, the bourgeoisie wants to avoid a social war, whose distant rumblings are being echoed by the popular journals, let it not separate its interests from those of the masses, and let it examine and understand the solidarity that binds them. If the bourgeoisie wants universal approval to sanction its influence, let it put this influence at the service of the entire community. If it wants the power it has to enact laws not to arouse too much anxiety, it has to make laws just and impartial and award Customs protection to everyone or no one. It is certain that the ownership of arms and faculties is as sacred as the ownership of products. Since the law raises the price of products, let it also raise the rate of pay, and if it cannot, let it allow both to be exchanged freely for the other.
Endnotes522 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."
523 The French Revolution which broke out in July 1789 with the storming of the Bastille prison in Paris.
524 Bastiat is referring here to the socialist notions of class which were emerging during the 1840s. He is closely paraphrasing the socialist Victor Considérant's views on "social warfare" in "Qu'est-ce que le socialisme?" (What is Socialism), especially section 2 "L'affranchisement des prolétaires, ou .. la guerre sociale," pp. 2-3, in Victor Prosper Considérant,, Le socialisme devant le vieux monde ou Le vivant devant les morts (Pais: Librairie Phalanstérienne, 1848). The best known articulation of these ideas of course is Karl Marx's and Friedrich Engel's The Communist Manifesto which appeared in February 1848. See the glossary entry on "The Socialist School."
525 In a letter to Mme Cheuvreux which he wrote two and a half years later he continues this discussion about the class differences between the the people and the bourgeoisie which must be read in the light of the revolutionary events of 1848: "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. These are the moral and social statistics of our country." [CW, vol. 1, "159. Letter to Mme Cheuvreux Paris (2 January 1850)", pp. 229-31.]
526 (Paillottet's note) See vol. V, pp. 142-45, and vol. VI, chaps. V and VIII. <TBK>
527 Bastiat is presenting here a slightly modified version of Charles Dunoyer's theory of industrialism and "les industrieux" which was developed in the 1820s and 1830s. He has modified it by using the new terminology of "bourgeoisie" and social war which socialists were using during the 1840s. See the glossary entry on "Industry."
528 (Paillottet's note) See the chapter entitled Wages in the Harmonies.
529 (Paillottet's note) See page <TBK> of chapter XI of the pamphlet What is seen and what is not seen in this volume. and the end of chapter VI in volume 5.
530 The number of references to the word "justice" in the collection of Economic Sophisms is very large, which reflects Bastiat's underlying justification for economic freedom which was based upon natural rights and not utilitarianism. As a result of this philosophical predisposition Bastiat was also quite self-reflexive and self-critical. He was, as he also maintained, not just a spokesman for the capitalist class but an advocate for liberty for all people on principled grounds as this quotation strongly suggests. When accused by the protectionist Saint-Chamans of advocating free trade out of self-interest, Bastiat responded that he was a free trader even though it went against his "class interests" (as a Marxist might say) as a property owner who, along with his ancestors, were the beneficiaries of the French government's longstanding policy of protectionism. In a letter to Prosper Paillottet on 11 October 1850 he states: "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." Yet, as he repeatedly argued as he does here, "the injustice of the protectionist regime" was becoming obvious to an increasing number of people (himself included of course) and that these erstwhile "dupes" would become aware of the exploitation of their resources which was taking place and would rise up against it. Members of the "electoral class" (like him) would come to rue the day: "However, it is in the nature of things that once the cause of a wrong has been pointed out it ends by becoming generally known. With what terrible argument will the injustice of the protectionist regime not supply the recriminations of the masses! Let the electoral class be on their guard! The people will not always seek the cause of its suffering in the absence of a phalanstery, of an organization for work, or some other illusory combination. One day it will see injustice where it really is" (May 1847). See S3 VI. "The People and the Bourgeoisie" (22 May 1847) and Letter 197 "Letter to Prosper Paillottet" (11 October 1850) in CW, vol. 1, pp. 280 </title/2393/225973>.
531 Bastiat calls the very limited number of individuals who were allowed to vote during the July Monarchy the "classe électorale." Suffrage was limited to those who paid an annual tax of fr. 200 and were over the age of 25; and only those who paid fr. 500 in tax and were over the age of 30 could stand for election. The taxes which determined eligibility were direct taxes on land, poll taxes, and the taxes on residence, doors, windows, and businesses. By the end of the Restoration (1830) only 89,000 tax payers were eligible to vote. Under the July Monarchy this number rose to 166,000 and by 1846 this had risen again to 241,000. 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. See the glossary entry on "Chamber of Deputies."
532 The socialist Charles Fourier (1772-1837) believed that society should be organized into small communities, known as phalansteries, where living and working would be done collectively. The socialist Louis Blanc (1811-82) believed that workers should be "organized" collectively rather than employed on the market in order to avoid exploitation by the owners of businesses and factories. See the glossary entries on "Phalanstery," "Fourier," and "Blanc".
533 Tariff policy during the Revolution was a chaotic affair. In a decree of 30-31 October 1790 the Constituent Assembly abolished all internal tariffs and duties were abolished thus creating for the first time a largely free internal market in France. External tariffs were cut to a maximum 20% by value although some goods were prohibited entry into the French market. Tariffs were completely reorganized by a law of 6-22 August 1791 which abolished most prohibitions on imported material, abolished tariffs on primary products used by French manufacturers and food stuffs for consumers, and reduced tariffs on manufactured goods gradually down to 20-25% by value of the goods imported. The decree of 1 March 1793 annulled all foreign trade treaties and prohibited the importation of a large number of goods, such as textiles, metal goods, and pottery. The decree of 29 September 1793 introduced the notorious "Maximum" or price control legislation which threw the internal French economy into considerable disarray. A decree of 31 January 1795 declared that the tariff of 1791 would be cut by 1/2 to 9/10 on many articles. This was reversed by a law of 23 November 1796 in order to increase revenue for the state. By 1806, when Napoleon introduced the Continental Blockade in November 1806 (the Berlin Decree) the debate about tariff policy had completely shifted away from any concern with protection of domestic industry and revenue raising and had become an instrument of economic warfare against the British. See the glossary entry on "French Tariff Policy."
534 French editor: see no. 18, p. 100. [DMH - This is a reference to another article earlier in Oeuvres complètes, vol. 2 from which this essay was taken, "18. Démocratie et libre-échange" (25 avril, 1848), pp. 100-01.]
T.130 (1847.05.23) "On Moderation" (LE, May 1847)↩
SourceT.130 (1847.05.23) "On Moderation" (De la modération), Le Libre-Échange, 23 May 1847, no. 26, p. 201. [OC2, pp. 343-48.] [CW3 - ES3.5]
V. On Moderation [22 May 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "De la modération" (On Moderation) [22 May 1847, 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. 343-48.
- Previous translation: [none]
We are criticized for being too dogmatic and extreme, and this accusation, carefully propagated by our opponents, has been echoed by men whose talents and high position give them authority, Mr. Charles Dupin,512 a peer of France, and Mr. Cunin-Gridaine,513 a Minister.514
And this is because we have the audacity to think that wanting to make men wealthy by restricting them and tightening social bonds by isolating nations is a vain and foolish enterprise; that the collection of taxes cannot be established without both the freedom of commerce and freedom of work being hindered in some way. These incidental restrictions are in this instance one of the drawbacks of taxation, drawbacks which may even cause the tax itself to be abandoned. But to see in them as such a source of wealth and a cause of well-being and, on this premise, to strengthen and increase their number systematically, no longer to fill the Treasury but at the Treasury's expense, to believe that restrictions have in themselves a productive virtue and result in more intensive work, better shared out, more certain in its remuneration and more capable of equalizing returns, that is an absurd theory, one that could lead only to an absurd practice. For this reason, we are opposing both of them, not in an extreme way but with zeal and perseverance.
After all, what is moderation?
We are convinced that two plus two makes four and we believe that we are required to say this clearly. Do people want us to use circumlocutions? That we should say, for example: "It may be that two plus two makes approximately four. We suspect that this may be so but we are not hastening to affirm this, especially since certain leading figures believed it was in their interest to base the laws of the country on this other premise which appears to contradict ours: three minus one equals four."
By accusing us of dogmatism and forbidding us from proving the truth of our thesis is to want the country never to open its eyes. We will not enter the trap.
Oh! If we were told: "It is very true that the straight line is shortest. But what can you do? For a long time it was believed to be the longest. The nation is accustomed to following a curved line. It spends its time and strength doing this but we have to win over this wasted time and strength little by little and gradually", we would be considered to be very laudably moderate. What are we asking for? Just one thing: for the public to see clearly what it is losing by following a curved line. After this, and if, in the full knowledge of what the curved line was costing them in tax, privations, vexations and wasted effort, they only wished to leave it gradually or if they even persisted in keeping to it, we could not help it. Our mission is to set out the truth. We do not believe, like the socialists, that the people are an inert mass and that the driving force is in the person who describes the phenomenon, but that it is in the person who suffers or who benefits from it. Could we be more moderate?
Other people accuse us of being extreme for another reason. They say it is because we are attacking all forms of protection at once. Why not have recourse to some guile? Why antagonize agriculture, manufacturing , the merchant navy and the working classes all simultaneously, to say nothing of the political parties who are always ready to pay court to numbers and strength?515
We consider that it is in this that we show our moderation and sincerity.
How many times have people not tried, doubtless with good intentions, to induce us to abandon the terrain of principles! We were advised to attack the abuse of the protection given to a few factories.
"You would be supported by agriculture", we were told, "and with this powerful auxiliary you would overcome the most exorbitant of the industrial monopolies and initially one of the most solid links of the chain that is wearing you down. Next, you can move against the agricultural interests in the knowledge that this time you would have the support of manufacturing industry."516
Those who give us this advice are forgetting one thing, which is that we do not aspire so much to overturn the protective regime as to enlighten the general public about this regime, or rather, although the first of these tasks is the aim, the second appears to us to be the essential means.
Well, what force would our arguments have had if we had carefully removed from the argument the very principle of protection? And, by implicating it, how could we avoid arousing the susceptibilities of farmers? Do people believe that manufacturers would have left us free to choose our arguments? That they would not have brought us round to expressing our views on the question of principle and to say explicitly or implicitly that protection is wrong by its very nature? Once the word was uttered, farmers would have been on their guard and we, may we be excused the expression, would have paddled about in subtle precautions and distinctions in the midst of which our polemics would have lost all their force and our sincerity any credit it may have had.
Next, the advice itself implies that, at least in the opinion of those who give it and perhaps in ours, protection is a desirable thing, since in order to wrench it away from one of the country's productive sectors one would have to make use of some other sector that would be led to believe that its own particular privileges would be respected, since it is suggested to use the farmers to beat the manufacturers and vice-versa. Well, that is not what we want. On the contrary, we are committed to the struggle because we believe protection to be bad for everybody.
The task we have set ourselves is to make this understood and widely known. "But in that case", it will be said, "the struggle will be lengthy". All the better if it is lengthy, if that is what is needed to enlighten the public.
Let us suppose that the trick that is being suggested to us is fully successful (a success that we believe to be an illusion), let us suppose that in the first year the landowners in the two Chambers sweep away all industrial privileges and that in the second year, in order to avenge themselves, the manufacturers have all the privileges of the farmers taken away.
What would happen? In two years, free trade would be ensconced in our laws, but would it be so in our minds? Is it not clear that at the first crisis, the first uprising, the first evidence of suffering, the country would rise up against a reform that was badly understood, attribute its misfortunes to foreign competition, and invoke and swiftly and triumphantly achieve, a return to customs protection? For how many years or centuries perhaps, would this short period of freedom accompanied by accidental suffering not dominate the arguments of protectionists? They would be careful to base their reasoning on the assumption that there is an essential link between these sufferings and freedom, just as they do today with regard to the Methuen517 and 1786 treaties518.
It is a very remarkable thing that, in the middle of the crisis that is devastating England, not a single voice is raised to attribute it to the liberal reforms accomplished by Sir Robert Peel.519 On the contrary, everyone feels that without these measures England would be in the throes of convulsions in the face of which the imagination recoils in horror. Where does this trust in freedom come from? From the work carried out by the League520 for many years. From the fact that it has made every intelligent mind familiar with the notions of public economy. From the fact that the reform was already germinating in people's minds and that the bills by Parliament were only sanctioning a national will that was strong and enlightened.
Finally we have rejected this advice for reasons of justice, as tempting as the French fury in battle521 might find impatience.
We are fully convinced that by relieving the pressure of a protectionist regime as gradually as opinion will allow but in accordance with a period of transition agreed in advance and on all points simultaneously, all forms of economic activity will be offered compensations that will make the shocks genuinely imperceptible. If the price of wheat is held slightly below the current average, on the other hand the price of ploughs, clothing tools and even bread and meat will be less of a burden to farmers. In the same way, if ironmasters experience a decrease of a few francs in the cost of a ton of iron, they will have coal, wood, tools and food on better terms. Well, we consider that once compensations like these that arise from freedom have become established, they will inevitably work steadily hand in hand with the reform itself throughout the period of transition, so that the reform remains consistent with public utility and the requirements of justice.
Is this impetuous and extreme? Is this a plan devised in the brains of hotheads? And unless people wish to make us abandon our principle, which we will never do as long as it is not proved to us to be erroneous, how can they demand more moderation and prudence from us?
Moderation does not consist in saying that we have half a conviction when we have a conviction that is whole and entire. It consists in respecting opposing opinions, refuting them without excessive emotion, refraining from personal attacks, refraining from provoking dismissals or impeachments, refraining from rousing misled workers and refraining from threatening governments with uprisings.
Is this not how we practice moderation?
Endnotes512 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 "Dupin."
513 Laurent Cunin-Gridaine (1778-1859) was a very successful , self-made textile manufacturer from Sedan. As Minister for Trade from 1840 to 1848 he was a strong supporter of protection for the textile industry. See the glossary entry on "Cunin-Gridaine."
514 At the time Bastiat wrote this article a debate was underway in the Chamber on a proposal to reform French tariffs in the light of the abolition of the Corn Laws by Britain in May of the previous year (1846). The free traders were optimistic as a senior minister (probably Thiers) had expressed some sympathy for the idea. Bastiat's Free Trade Association (founded in February 1846) was lobbying hard for free trade and the Association for the Defense of National Employment (founded in October 1846) was lobbying hard to maintain the existing policy of protectionism. The latter were able to out manoeuvre the free traders when a bill came before the Chamber in March 1847 by having the matter sent to Committee which was stacked with supporters of protectionism. The Committee recommended to the Chamber in July 1847 not to change French tariff policy, thus defeating the free traders. See the glossary entries on the "Free Trade Association," the "Association for the Defense of National Employment," and "French Tariff Policy."
515 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."
516 (Paillottet's note) See no. 5 (volume 7 ???) <TBK>.
517 The treaty of Methuen (named after one of the negotiators John Methuen) was a commercial treaty between England and Portugal signed in 1703 during the War of Spanish Succession (1701-1714). It allowed for the free entry of English textiles into Portugal and was thus wrongly accused of having caused a decline in the Portuguese economy. In return, Portuguese wine ("port") was subject to lower tariffs than French wine thus creating a new market for Portuguese port in England.
518 The Treaty of 1786 was also called the Eden Treaty after the chief British negotiator William Eden. The treaty was strongly supported by William Pitt the Younger who was a supporter of Adam Smith's ideas on free trade as expressed in the Wealth of Nations (1776). The Treaty lowered all tariffs to between 10-15% by value and ended prohibitions on imports, thus bringing to an end nearly one hundred years of economic warfare between the two nations. This rivalry was to be renewed again under Emperor Napoleon with the Continental Blockade of November 1806 which attempted to deny the entry of British goods into Europe.
519 Sir Robert Peel (1788-1850) was the British Prime Minister in 1841 and introduced a series of economic reforms (he cut the rate of tariff on hundreds of items after 1842) which led to the abolition of the protectionist Corn Laws in May 1846. See the glossary entries on "Peel," "Anti-Corn Law League," and "The Corn Laws."
520 The Anti-Corn Law League was founded in 1838 by Richard Cobden and John Bright in Manchester. The initial aim of the League was to repeal the law restricting the import of grain ("corn laws"), but it soon called for the unilateral ending of all agricultural and industrial restrictions on the free movement of goods between Britain and the rest of the world. The Corn Laws were successfully repealed in May 1846. It was the model for the Free Trade Association in France. See the glossary entry on "Anti-Corn Law League" and "The Corn Laws."
521 Bastiat uses the Italian phrase "furia francese" (the fury of the French in battle) which refers to the commitment of French soldiers during the revolutionary and Napoleonic wars to fighting for the principles of the Revolution.
T.131 (1847.05.30) "Two Losses against One Profit" (LE, May 1847)↩
SourceT.131 (1847.05.30) "Two Losses against One Profit" (Deux pertes contre un profit. À M. Arago, de l'Académie des Sciences), Le Libre-Échange, 30 May 1847, no. 27, pp. 215-16. [OC2, pp. 384-91.] [CW3 - ES3.7]
VII. Two Losses versus One Profit [30 May 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Deux pertes contre un profit" (Two Losses versus One Profit) [30 May 1847, 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. 384-91.
- Previous translation: [none]
To Mr. Arago,535 of the Academy of Sciences
Sir,
You have the secret of making the greatest scientific truths accessible to the minds of all. Oh! If only, using x's and y's, you could find a theorem that would leave no room for controversy! Simply setting it out will be enough to show the immense service you would be giving to the country and the human race. Here it is:
IF A PROTECTIONIST DUTY RAISES THE PRICE OF AN OBJECT BY A GIVEN QUANTITY, THE NATION GAINS THIS QUANTITY ONCE AND LOSES IT TWICE.536
If this proposition is true, it follows that nations are inflicting incalculable losses on themselves. It would have to be acknowledged that there is not one of us who does not throw one franc coins in the river each time he eats or drinks, each time he takes it into his head to touch a tool or an item of clothing.537
And as this way of doing things has been going on for a long time, we should not be surprised if, in spite of the advance of science and industry, a very heavy burden of destitution and suffering is still weighing on our fellow citizens.
On the other hand, everyone agrees that a protectionist regime is a source of damage, uncertainty and danger outside this calculus of profits and losses. It feeds national animosities, postpones unity between peoples, increases the opportunities for war and inscribes actions that are innocent in themselves as misdemeanors and crimes in our laws. We just have to submit to these inconvenient lesser outcomes of our arrangements once we come to believe that they rest on the following concept: any increase in price is, by its very nature, a national gain. For, Sir, I believe that I have observed, and you will perhaps have observed as I have, that in spite of the great scorn that individuals and nations display for gain, they have difficulty in giving it up. If it happened to be proved, however, that this alleged gain is accompanied in the first instance by an equal loss, which offsets it and then by a second loss that is also equal, this latter one involving absolutely blatant deceit,538 then since the horror of loss is as strongly entrenched in the human heart as the love of profit, we would be bound to assume that the protectionist regime and all its direct and indirect consequences would evaporate with the illusion that gave rise to them.
You will therefore not be surprised, sir, that I would like to see this demonstration clad in the invincible evidence that the language of equations communicates. You will not consider it a bad thing that I have turned to you, for, among all the problems presented by the sciences that you pursue with so much renown, there is certainly none more worthy of occupying your powerful abilities, at least for a few moments. I dare say that the man who provides an irrefutable solution to it, were it the only thing he did in this life, would have done enough for the human race and his own reputation.539
Allow me therefore to set out in common parlance what I would like to see put into mathematical language.
Let us suppose that an English knife is sold in France for 2 francs.
That means that it is traded for 2 francs or for any other object which itself is worth 2 francs, for example, a pair of gloves at this price.
Let us assume that a similar knife cannot be produced in this country for less than 3 francs.
Under these circumstances, a French cutler turns to the government and says to it: "Protect me. Prevent my fellow countrymen from buying English knives and I will ensure that I will provide them for 3 francs.
I say that this increase in price of one franc will be made once only, but add that it will be lost twice by France, and that the same phenomenon will be seen in all similar cases.
First of all, let us put aside for a moment the 2 francs which are not relevant to increasing prices.. As far as these 2 francs are concerned, it is very clear that French industry will not have gained or lost anything through this measure. Whether these 2 francs go to the cutler or the glove maker, that may suit one of these industrialists and inconvenience the other, but they have no effect on national production. Up to that point, there has been a change of direction, but no increase or decrease in output: 2 francs more go to cutlery and 2 francs less go to glove making, that is all. An unjust favor here, a no less unjust oppression there, is all we can see; let us therefore say no more about these 2 francs.
However, there is a third franc whose course needs to be followed; it constitutes the increase in price of the knife: it is the given amount by which the price of knives is raised. It is the amount that I say is gained once and lost twice by the country.
That it is gained once, there is no doubt. Obviously the cutlery industry is favored by prohibition to the amount of one franc that will go to pay for salaries, profits, iron and steel. In other terms, the production of gloves is discouraged by only 2 francs and the cutlery industry is stimulated by 3 francs which certainly constitutes a surplus stimulus of 20 sous, 1 franc or 100 centimes,540 whatever you like to call it, for national output.
But it is just as obvious that when the person acquired the knife from England in exchange for a pair of gloves he paid only 2 francs, whereas he is now paying 3. In the first case, he had one franc available over and above the cost of the knife, and as we all are in the habit of using francs for something, we have to take it as certain that this franc would have been spent in some way and would have stimulated national industry just as far as a franc can be stretched.
If, for example, you were this buyer, before prohibition you would have been able to buy a pair of gloves for 2 francs, in exchange for which you would have obtained the knife from England. And what is more, you would have had 1 franc left, with which you would have bought, depending on your tastes, a few small pies or a small book.
If therefore we do the accounts of national output, we will instantly find an equivalent loss to counter the gain of the cutler, which is that of the pastry cook or the bookseller.
I think it is impossible to deny that in either case your 3 francs, since you had them, encouraged the industry of the country in exactly the same way. Under a regime of liberty, they would be shared between the glove maker and the bookseller; under the protectionist regime, they would go entirely to the cutler, a truth we could safely challenge the very genius of prohibition itself to try to undermine.
Thus, the franc is gained once by the cutler and lost once by the bookseller.
All that remains is to evaluate your own position, as purchaser and consumer. Does it not leap to the eye that before prohibition, for 3 francs you had both a knife and a small pocket-sized book, whereas since then, for your same 3 francs, you would just have a knife and no small pocket-sized book? You are therefore losing the pocketbook in this matter, or the equivalent of one franc. Well, if this second loss is not offset by any gain for anyone in France, I am right in saying that this franc, gained once, is lost twice.
Do you know, Sir, what the reply to this is, for it is right that you should know the objection? It is said that your loss is offset by the profit earned by the cutler or, in general terms, that the loss suffered by the consumer is offset by the profit to the producer.
In your wisdom you would rapidly have discovered that the sleight of hand here consists in casting a shadow over the fact, already established, that profit to one producer, the cutler, is offset by the loss to another producer, the bookseller, and that your franc, by the very fact that it has gone to stimulate the cutlery industry, has not gone to stimulate the bookshop, as it ought to have done.
After all, as it is a question of equal amounts, whether you establish, if you prefer, compensation between the producer and the consumer, it does not matter, provided that the bookshop is not forgotten and that you do not make the same gain appear twice to offset it alternatively to very distinct losses.
It is also said that all this is very small-minded and cheap. It is scarcely worth the trouble of making so much noise for one small franc, one small knife and one small pocket-sized book. I do not need to draw your attention to the fact that the franc, the knife and the book are my algebraic symbols and that they represent the lives and substance of nations, and it is because I do not know how to use a, b or c to generalize questions that I am placing them under your patronage.
The following is also said: the franc that the cutler receives as a supplement, thanks to trade protection, he pays to his workers. My reply is this : the franc that the bookseller would receive in addition, thanks to free trade, he would also pay to other workers, so that in this respect the balance is not upset, and it remains true that under one regime you have a book and on the other you do not. To avoid the confusion, intentional or not, that will not fail to be cast over this subject, you have to make a clear distinction between the original distribution of your 3 francs and their subsequent circulation which, in both hypotheses, follows infinite trajectories and can never affect our calculation.541
It seems to me that people would have to be of extremely bad faith to plead in favor of the relative importance of the two industries under comparison by saying that cutlery is worth more than glove making or bookshops. It is clear that my line of argument has nothing in common with this type of thinking. I am seeking the general effect of prohibition on production as a whole, and not to ascertain whether one sector is more important than another. It would have been enough for me to take another example to show that what in my hypothesis results in depriving someone of a book is, in many cases, deprivation of bread, clothing, education, independence and dignity.
In the hope that you will allocate the truly radical importance that I think it merits to the solution of this problem, please allow me to underline once more some of the objections that may be made to it. People will say: "The loss will not be one franc, since internal competition will be enough to bring down the price of French knives to 2 francs 50 and perhaps to 2 francs 25. I agree that this may happen. In that case, my figures will have to be changed. The two losses would be less and so would the gain, but there would nonetheless be two losses for one gain for as long as protectionism protects a given producer.
Finally, the objection would doubtless be raised that national industry should at least be protected because of the taxes it has to bear. The reply to this may be deduced from my argument itself. To subject a nation to two losses for one gain is an unfortunate method of relieving its burdens. Let people assume taxes to be as high as they like, let them assume that the government takes 99 percent of our income from us; is it an admissible solution, I ask you, to grant the over-taxed cutler one franc taken from the over-taxed bookseller with, in addition, the loss of one franc to the over-taxed consumer?
I do not know, Sir, if I am deluding myself, but it appears to me that the strict proof I am asking you to provide, should you take the trouble to formulate it, will not be an object of pure scientific curiosity, but will dissipate a great many disastrous preconceived ideas.
For example, you know how intolerant we are of any foreign competition. This is the monster on which all business anger is vented. Well then! What do we see in the case put forward? Where is the genuine rivalry? Who is the true and dangerous competitor of the glove maker and the bookseller in France? Is it not the French cutler who is asking for the support of the law in order to take for himself alone the income of his two colleagues, even at the expense of a clear loss for the general public? And in the same way, who are the true and dangerous opponents of the French cutler? It is not the cutler from Birmingham, it is the French bookseller and glove maker who, at least if they are not blind in some way, will make constant efforts to take from the cutler customers that he has legally and unjustly snatched from them. Is it not strange to find that this monster of competition, whose roar we think we hear from across the Channel, is being nourished by us in our very midst? Other points of view, both original and true, will no doubt emerge from this equation as a result of your enlightenment and patriotism.542
Endnotes535 François Arago (1786-1853) was the eldest of four successful Arago brothers, the youngest of which, Étienne Arago (1802-1892) may have gone to school with Bastiat in Sorèze. François was a famous astronomer and physicist who was also active in republican politics throughout the 1830s and 1840s. He is mentioned several times in Bastiat's correspondence. After the outbreak of the Revolution in February 1848 he became Minister of War, the Navy and Colonies and played an important role in the abolition of slavery in the French colonies. François also edited the works of Condorcet on the eve the 1848 Revolution. See the glossary entries on "François Arago" and "Étienne Arago."
536 The "Double Incidence of Loss" is a theory first formulated by the anti-corn law campaigner Colonel Perronet Thompson (1783-1869) in 1834-36 and taken up by by Bastiat in 1847 in which it is argued that tariff protection or subsidies to industry result in a directly observable and obvious profit for one industry (and its workers) but at the expense of two other participants in the market. These other participants (or would be participants) suffer an equal loss to the benefit gained by the first party: the consumer loses by having to pay a higher price for a good which he or she could have bought more cheaply from another supplier (often foreign), and unknown third parties also lose because the consumer who was forced to pay more for a good which is protected or subsidized has that much less to spend on other goods and services. Hence there is one party which benefits and two which lose out to the same amount, i.e. "the double incidence of loss." The theory of "the double incidence of loss" should be seen as an early and simpler version of the theory which was later to become "the ricochet (or flow on) effect." See the glossary entries on "Perronet Thompson" and the "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."
537 The English campaigner against the Corn Laws, Perronet Thompson, 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.
538 Bastiat uses the word "duperie" here. 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."
539 Bastiat is obviously quite excited at the prospect of using mathematics to demonstrate the truth of his claims about the deleterious impact of tariffs on the French economy. He had learned about the principle of "the double incidence of loss" from Perronet Thompson who also had some mathematics to support his claims. Since Bastiat did not have the requisite skills he was appealing to a renowned mathematician for assistance. See the glossary entries on "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."
540 These are just different ways of saying the say thing, namely 1 franc. 1 franc = 100 centimes = 20 sous. See the glossary entry on "French Currency."
541 (Paillottet's note) <TBK> See number 48, page 320, on the Sophism of ricochets, in this volume; pages 74, 160 and 229 in Tome IV. and in Tome V., independently of pages 80 to 83, pages 336 et seq. containing the pamphlet What is seen and what is not seen. [DMH - Paillottet notes that Bastiat is grappling with the idea of the "ricochet effect" which emerges in his thinking towards the end of 1847. By the "ricochet effect" Bastiat means the indirect consequences of an economic action which flow or knock on to 3rd parties, sometimes with positive results but more often with negative results. Here he uses paraphrases of the idea such as "subsequent circulation" and "infinite trajectories." See the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."]
542 (Paillottet's note) <TBK> See page 45, Tome IV on Competition and chapter X in Tome VI.
T.132 (1847.05.30) "The Free Trade King" (LE, May 1847)↩
SourceT.132 (1847.05.30) "The Free Trade King" (Le Roi libre-échangiste), Le Libre-Échange, 30 May 1847, no. 27, p. 210. [OC7.36, pp.167-69.] [CW6]
Text(insert HTML of file here)
T.133 (1847.06.??) "Electoral Sophisms"↩
SourceT.133 (1847.06.??) "Electoral Sophisms" (Sophismes électoraux). Mentions Maynooth bill (fn. 2, p. 402) so written after 1845; also in "The Tax Collector" ES2.10 (late 1847??); also mentions General standing for election. [ OC7.67, pp. 271-80.] [CW1.2.3.1, p. 397-404.]
TextI have made my commitments.
I am not supporting M. So and So because he has not asked for my vote.
I am voting for M. So and So because he has done me a good turn.
I am voting for M. So and So because he has rendered service to France.
I am voting for M. So and So because he has promised to do me a favor.
I am voting for M. So and So because I would like a position with him.
I am voting for M. So and So because I am worried about keeping my job.
I am voting for M. So and So because he comes from the region.
I am voting for M. So and So because he does not come from the region.
I am voting for M. So and So because he will speak up.
I am voting for M. So and So because if he is not elected, our prefect or subprefect will be dismissed.
Each of these sophisms has its own particular nature, but at the base of each of them there is a common thread which needs to be disentangled.
They all are based on this twin premise:
The election is being run in the interest of the candidate.
The elector is the exclusive owner of one thing, that is to say, his vote, which he is free to use as he pleases and in favor of whomever he wishes.
[398]The error of this doctrine and its daily application will be made clear by our examination.
1.: I am not voting for M. A—— because he has not asked for my vote.
This sophism, like all the others, is based on an attitude which, in itself, is not reprehensible, the sense of personal dignity.
When men seek encouragement in pursuit of some bad action, it is rare for the paradoxes with which they deceive themselves to be totally false. Such paradoxes make up a fabric. It is a fabric in which there are always a few threads of good sense to be seen. They always contain a grain of truth and this is why they impress. If they were totally false, they would not delude so many people.
The meaning of the one we are examining is as follows:
“M. A—— aspires to becoming my deputy. Being a deputy is the road to honors and wealth. He knows that my vote can contribute to his election. This is the least of what he is asking of me. If he behaves proudly, I in turn will behave proudly, and when I agree to use something as precious as my vote in someone’s favor, I am determined that he should show gratitude to me, that he should not disdain coming to my house, entering into a relationship with me, shaking my hand, etc., etc.”
It is very clear that the elector who reasons thus will make the twin mistakes we have pointed out.
- 1. He believes that his vote is cast to be useful to the candidate.
- 2. He thinks that, when it comes to helping people he is free to do so to whomever he chooses.
In a word, he disregards all the public good and evil which may result from his choice.
For, if he considered that the aim of the entire electoral mechanism is to send to the Chamber of Deputies those who are conscientious and devoted, he would probably reason in a contrary manner and say:
“I will vote for M. A—— for this reason, among others, that he has not asked for my vote!”
In fact, in the eyes of anyone who does not lose sight of the object of the function of deputies, I do not think that there can be a stronger presumption against a candidate than his insistence on seeking votes.
[399]For, in the end, what drives this man to come and torment me in my own house, to endeavor to prove to me that I ought to give him my confidence?
When I know that so many deputies, holding two balls,1 have dictated the law to ministers and have obtained good positions, should I not fear that this candidate has no other aim in view when he comes—sometimes from the other end of the kingdom—to beg for the trust of people he does not know?
One can doubtless be betrayed by the deputy one has freely selected. But if we, the electors, go to seek out a man in his retirement (and we can go to seek him out only because his reputation for integrity is perfectly established), if we drag him away from his solitary life to confer on him a mandate which he has not requested, do we not give ourselves the best possible chance of handing over this mandate into pure and faithful hands?
If this man had wanted to make a business out of being a deputy, he would have sought it. He has not done so and therefore has no base ulterior motives.
What is more, he to whom the mandate of deputy is freely given, as free evidence of general confidence and universal esteem, would feel so very honored, so grateful for his own reputation, that he would hesitate to tarnish it.
And, after all, would it not be natural for things to happen thus?
What are we discussing? Is it a question of rendering service to M. So and So, favoring him or setting him on the road to wealth?
No, it is a question of giving ourselves a representative who has our trust. Would it not be very simple to take the trouble to look for him?
Once there was a case of an important trusteeship. A family council of many members had met in the court. A man arrived out of breath, covered in sweat, having worn out several horses. No one knew him personally. All that was known was that he managed, somewhere far away, the properties of underage children and that he would soon have to account for these. This man begged them to appoint him as trustee. He spoke to the relatives on the father’s side and then to those on the mother’s side. He sang his own praises at length, speaking of his probity, wealth, and connections. He uttered prayers, promises, and threats. Deep anxiety could be read on his features, as well as an immoderate desire for success. Vain objections were raised [400] that the trusteeship was a weighty burden, that it would take up much of the time and wealth of the person to whom it was entrusted and override his other businesses. He brushed aside each difficulty. He asked no more than to devote his time to serving the poor orphans. He was prepared to sacrifice his wealth, so heroic was the disinterestedness he felt in his heart! He would view with stoicism his businesses’ decline, provided that those of the underage children prospered in his hands! “But you manage their property!” “All the more reason, I will account to myself for this and who is more equipped to examine these accounts than he who has set them up?”
I ask you, would it be reasonable for the family council to entrust to this earnest lobbyist the functions he requested?
Would it not be wiser to entrust this task to a relative known for his probity and scrupulousness, especially if it were the case that the interests of this relative and the underage children were identical to the extent that he could not do anything to their advantage or disadvantage without similarly affecting his own situation?
. . . . . . .
2.: I am voting for M. A—— because he has done me a favor.
Gratitude, it is said, is the only virtue that cannot be abused. This is wrong. There is a very common method of abusing it, and that is to settle the debt imposed on us by it at the expense of others.
I acknowledge that an elector, who has received frequent acts of kindness from a candidate whose opinions he does not share, is put in an extremely delicate and embarrassing position if this candidate is bold enough to ask for his vote. Ingratitude is itself a repugnant characteristic; to go so far as to make an official display of it, in so many words, can become genuine torment. In vain will you paint this defection in the colors of the most reasoned of political motives; in the depths of universal understanding there is an instinct that will condemn you. This is because political mores have not achieved nor been able to achieve the same progress as private mores. The public will always see your vote as a property of which you can dispose and it will censure you for not allowing it to be directed by a virtue as popular and honorable as gratitude.
However, let us examine this.
[401]The question facing the electoral body, as raised in France, is in most cases so complex that it leaves great latitude in moral awareness. There are two candidates, one for the government, the other for the opposition. Yes, but if the government has committed a great many faults, so has the opposition. In addition, look at the manifestos of the two opponents: one wants order and liberty; the other demands liberty with order. The only difference is that one puts in second place what the other puts first; in essence they want the same thing. It was not worth the trouble, for such subtle differences, to betray the rights to your vote for one of the candidates because of the benefits received. You have no excuse for this.
But let us suppose that the question put before the electors is less vague and you will see that not only the rights but also the popularity and even the claim to gratitude are weakened.
In England, for example, long experience of representative government has taught electors that they should not pursue all types of reform simultaneously, but pass on to the second when the first has been carried out and so on.
As a result, there is always a central question facing the public on which all the efforts of the press, associations, and electors are focused.
Are you for or against electoral reform?
Are you for or against Catholic emancipation?
Are you for or against the emancipation of slaves?
At the moment, the sole question is:
Are you for or against free trade?
When this has been settled, doubtless this other question will be raised:
Are you for or against voluntary arrangements with regard to religion?
As long as there is campaigning with regard to any of these questions, everyone takes part, everyone seeks enlightenment, and everyone takes one side or another. Doubtless, the other major political reforms, although relegated to the shade, are not totally neglected. However, this is a debate which is engaged within each party and not between one party and the other.
Thus, at the present time, when free traders have to oppose a candidate to those supporting monopoly, they hold preparatory assemblies in which a person is proclaimed their candidate who, beyond the conformity of his [402] principles with those of the free traders in matters of trade, is also more in line with the majority because of his opinions on Ireland or the Maynooth2 bill, etc., etc. However, on the day of the great combat, the only question put to candidates is this:
Are you free traders? Do you support monopoly?
Consequently, it is on this alone that the electors will be called upon to vote.
It is thus easy to understand that a question couched in such simple terms will not allow any of the sophisms dealt with in this book to creep into the parties, in particular that of gratitude.
Let us say that in private life I have done an elector some notable favors. However, I know that he is in favor of free trade, while I am standing as a candidate for the partisans of protection. It would not cross my mind to expect him, through gratitude, to sacrifice a cause to which I know that he has devoted all his efforts, one to which he has subscribed and in favor of which he has allied himself with powerful interests. If I did this, his reply would be clear and logical and it would obtain public approval not only from his party but also mine. He would say to me: “I have personal obligations to you. I am personally ready to carry these out. I do not expect you to ask me for them and I will take every opportunity to prove to you that I am not ungrateful. There is, however, a sacrifice I cannot make to you, that of my conscience. You know that I am committed to the cause of free trade which I consider to be consistent with public interest. You, on the other hand, uphold the opposite view. We have met here to ascertain which of these two principles is upheld by the majority. On my vote may depend the triumph or defeat of the principle I support. In conscience I cannot raise my hand for you.”
It is clear that, unless he were dishonest, the candidate would not be able to insist on proving that the elector is bound by a benefit received.
The same doctrine should prevail in our midst. Only, as the questions are very much more complicated, they give rise to a painful contest between the benefactor and the person in his debt. The benefactor will say: “Why are you refusing me your vote? Is it because a few shades of opinion separate us? But do you think in exactly the same way as my opponent? Do you not [403] know that my intentions are pure? Do I, like you, not want order, liberty, and the public good? Are you afraid that I will vote for such and such a measure of which you disapprove; who knows whether it will be brought before the Chamber during this session? You can see perfectly well that you do not have sufficient reason to forget what I have done for you. You are just seeking a pretext to avoid offering any token of gratitude.”
I think that the English method, that of pursuing just one reform at a time, without considering one’s own advantages, also has the considerable advantage of invariably classifying the electors, sheltering them from bad influences, and preventing sophisms from taking hold, in short of shaping frank and firm political mores. This is why I would like it to be adopted in France. In the event, there are four reforms which are competing for priority.
- 1. Electoral reform
- 2. Parliamentary reform
- 3. Freedom of education
- 4. Trade reform
I do not know to which of these questions my country will give preference. If I have a voice in the matter in this respect, I would designate parliamentary reform as being the most important and urgent, the one for which public opinion is best prepared and which is most likely to lead to the triumph of the three others.
For this reason, I will say a few words about it at the end of this book.
. . . . . . .
3.: I am voting for M. A—— because he has rendered great service to the country.
Once upon a time, an elector’s vote was sought for a general of great merit. “Who in the region,” it was said, “has given greater service to the country? He has shed his blood on countless battlefields. All his promotions in rank have been due to his courage and military talent. He is a self-made man and, what is more, he has raised to senior positions his brothers, nephews, and cousins.”
“Is our district threatened?” asked the elector. “Is there a mass uprising? Is it a matter of selecting a military leader? My vote is assured for the honorable [404] general since all you tell me of him and what I know give him an irrefutable right to my trust.”
“No,” said the lobbyist, “it is a question of voting for a deputy, a legislator.”
“What will his functions be?”
“To make laws; to revise the civil code, the code on procedures, and the penal code; to restore order to the finances; and to supervise, contain, restrain, and if necessary indict ministers.”
“And what do the massive sword strokes made against the enemy by the general have to do with legislative functions?”
“That is not the question; it is a question of awarding him, through the office of deputy, a worthy recompense for his services.”
“But if, through ignorance, he passes bad laws and if he votes for disastrous financial plans, who will suffer the consequences?”
“You and the general public.”
“And can I in all conscience invest the general with the right to make laws if he is liable to make bad ones?”
“You are insulting a man of great talent and noble character. Do you think he is ignorant and of evil intent?”
“God forbid! My supposition must be that having been concerned all his life with the military training he is very knowledgeable on strategy. I am sure he insists on tip-top inspections and parades. But, here again, what is there in common between this area of knowledge and the kind required by a representative, or rather those being represented?” . . .
EndnotesIn order to vote for or against a law, deputies used to put a white or a black ball in an urn. (See also Letter 110, note 230.) Therefore, the reference to “holding two balls” implies that the deputy is withholding his vote in order to get political favors.
In 1845 Robert Peel proposed a subsidy of thirty thousand pounds to rebuild the Irish college of Maynooth for young priests. The bill was adopted in spite of numerous petitions against it.
T.134 (1847.06.13) "Speech given in the Duphot Hall" (LE, June 1847)↩
SourceT.134 (1847.06.13) "Speech given in the Duphot Hall" (Discours à la salle Duphot), Le Libre-Échange, 13 June 1847, no. 29, pp. 227-28. [OC7.37, pp. 170-78.] [CW6]
Text(insert HTML of file here)
T.135 (1847.06.13) "The War against Chairs of Political Economy" (LE, June 1847)↩
SourceT.135 (1847.06.13) "The War against Chairs of Political Economy" (Guerre aux chaires d'économie politique), Le Libre-Échange, 13 June 1847, no. 29, p. 232; also published as a chapter in the pamphlet Plunder and Law (1850), pp. 42-52. [OC5, pp. 16-22.] [CW2.14, pp. 277-81.]
Text1,2We know with what bitterness men who restrict the trade of others for their own advantage complain that political economy stubbornly refuses to extol the merit of these restrictions. Although they do not hope to obtain the elimination of science, at least they pursue the dismissal of those who teach it, retaining from the Inquisition this wise maxim, “If you wish to get the better of your opponents, then shut their mouths.”
We were therefore not surprised to learn that to mark the draft law on the organization of the university, they addressed to the minister of education a lengthy memorandum, from which we quote a few excerpts here:
“Do you really mean it, minister? Do you wish to introduce the teaching of political economy in the university! Is this a deliberate act to discredit our privileges?”
“If there is one venerable maxim, it is most assuredly this: In any country, education ought to be in harmony with the principle of government. Do you [278] think that in Sparta or Rome the treasury would have paid teachers to speak out against the plunder resulting from war or against slavery? And you want to allow restrictionism to be discredited in France!”3
“Nature, sir, has so ordained things that society can exist only on the products of work, and at the same time it has made work burdensome. This is why in all eras and in all countries an incurable propensity for mutual pillage has been noted in men. It is so pleasant to lay the burden on one’s neighbor and keep the payment for oneself!”
“War is the first means that people thought of. There is no shorter and simpler way of seizing other people’s property.”
“Then followed slavery, which is a more subtle means, and it has been proved that reducing prisoners to servitude instead of killing them was a major step toward civilization.”
“Last, the passage of time has substituted for these two crude means of plunder another that is more subtle and for this very reason has much more likelihood of lasting, especially since its very name, protection, is admirably suited to dissimulating its odious aspect. You are not unaware of the way names can sometimes deceive us in regard to the bad side of things.”
“As you see, minister, preaching against protectionism in modern times or against slavery in ancient times is exactly the same thing. It always undermines social order and upsets the peace of mind of a very respectable class of citizens. And if pagan Rome showed great wisdom and a farsighted spirit of conservation in persecuting the new sect that arose within its midst to proclaim aloud the dangerous words peace and fraternity, why should we have any more pity for professors of political economy? However, our customs are so gentle and our moderation so great that we do not require you to deliver them to the wild beasts. Forbid them to speak and we will be satisfied.”
“Or at least, if they are so intent on speaking, can they not do this with a degree of impartiality? Can they not trim science a bit to suit our wishes? By what quirk of fate have professors of political economy all agreed to turn the weapon of reason against the protectionist dispensation? If this has certain disadvantages, surely it also has advantages since it suits us. Might our professors not gloss over the disadvantages a bit more and highlight the advantages?”
“Besides, what are scholars for if not to make science? What stops them [279] from inventing a form of political economy specially for us? Obviously it is a case of ill will on their part. When the Sacred Inquisition of Rome found it impious that Galileo had the earth rotating, this great man did not hesitate to have it immobile again. He even declared it to be so on his knees. It is true that as he rose, it is said that he murmured, ‘E pur si muove.’4 Let our professors declare publicly and on their knees that freedom is worth nothing, and we will pardon them if they mutter, on condition that they do it with clenched teeth, ‘E pur è buona.’”5
“But second, we want to push moderation still further. You will not disagree, minister, that we must be impartial first and foremost. Well then! Since there are two conflicting doctrines in the world, one whose motto is ‘Leave trade alone’ and the other ‘Prevent trade,’ for goodness’ sake keep the balance equal and have one taught as well as the other. Give the order that our political economy should be taught in this way.”
“Is it not very discouraging to see science always on the side of freedom, and should it not share its favors a little? No, no sooner is a chair instituted than, like the head of the Medusa, we see the face of a free trader appear.”
“In this way, J. B. Say set an example that MM Blanqui, Rossi, Michel Chevalier, and Joseph Garnier were quick to follow. What would have become of us if your predecessors had not taken great care to limit this disastrous form of teaching? Who knows? This very year we would have had to endure cheap bread.”
“In England, Adam Smith, Senior, and a thousand others caused the same scandal. What is more, Oxford University instituted a chair of political economy and appointed . . . whom? A future archbishop,6 and lo and behold, his grace started to teach that religion agreed with science in condemning the part of our profits that arose from a protectionist regime. So what happened? Little by little, public opinion was won over, and before two years were out, the English had the misfortune of being free to buy and sell. May they be ruined as they well deserve!”
“The same thing happened in Italy. Kings, princes, and dukes, both great and small, were imprudent enough to tolerate the teaching of economics without laying an obligation on professors to reconcile science with protectionism. A host of professors, men like Genovesi and Beccaria, and in [280] our time M. Scialoja, as might be expected, began to preach freedom; and here we have Tuscany free to trade and there we have Naples cutting swathes through its customs duties.”
“You know the results achieved in Switzerland by the intellectual movement that has always directed men’s minds toward economic knowledge there. Switzerland is free and seems to be situated in the center of Europe, like light on a chandelier, deliberately to embarrass us. For when we say, ‘The result of freedom is to ruin agriculture, trade, and industry,’ people do not fail to point Switzerland out to us. For a time, we did not know what to answer. Thank goodness La Presse solved our problem by supplying us with this invaluable argument, ‘Switzerland can cope because it is small.’”
“The curse of science is threatening to let loose the same plague on Spain. Spain is the very home of protection. And just see how it has prospered! And not counting the treasure she has drained from the New World and the richness of her soil, her prohibitionist policy is sufficient to explain the degree of splendor that she has achieved. However, Spain has professors of political economy, men like La Sagra and Florez Estrada, and so we find the minister of finance, M. Salamanca, aiming to raise Spain’s credit and increase her budget just through the power of free trade.”
“Last, minister, what more do you want? In Russia, there is only one economist and he is in favor of free trade.”7
“As you can see, the conspiracy of all the world’s scholars against the fettering of trade is flagrant. And what interest is urging them on? None. If they preached protectionism, they would be no leaner, no worse off. It is therefore pure wickedness on their part. This unanimity holds the greatest dangers. Do you know what people will say? Seeing them so closely in agreement, people will end up believing that what unites them in the same belief is the same reason that causes all the geometers around the world since Archimedes to think the same way regarding the square of the hypotenuse.”
“When therefore, minister, we beg you to have two contradictory doctrines taught impartially, it can be only a secondary request on our part, since we can guess what will happen, and he whom you make responsible for teaching restriction may well, through his study, be brought to the path of freedom.”
“The best thing is to outlaw science and scholars once and for all and return to the wise traditions of the empire. Instead of instituting new chairs [281] of political economy, abolish those—fortunately they are few—that are still standing. Do you know how political economy has been defined? The science that teaches workers to keep what belongs to them. It is quite clear that a good quarter of the human race would be lost if this disastrous science happened to spread.”
“Let us hold on to a good and harmless classical education. Let us fill our young people with Greek and Latin. What harm will it do us if they scan the hexameters of the Bucolics8 on the tips of their fingers from morning to night? Let them live with Roman society, with the Gracchi and Brutus, within a Senate in which war is constantly discussed and a Forum in which the question of plunder is constantly to the fore; let them become imbued with the sweet philosophy of Horace:
- Tra la la la our youth
- Tra la la la is shaped there.
“What need is there to teach them the laws of production and trade? Rome teaches them to despise work, servile opus, and not to recognize as legitimate any other trade than the vae victis of the warrior who owns slaves. In this way, we will have a young generation well prepared for life in our modern society. There are indeed a few small dangers. Our young people will be somewhat republican, they will have strange ideas on freedom and property, and in their blind admiration for brute force they will perhaps be found to be somewhat disposed to find fault with the whole of Europe and to deal with political questions in the street by throwing cobblestones. This is inevitable, and frankly, minister, thanks to Titus Livy we have all more or less paddled in this rut. After all, these are questions that you can easily overcome with a few good gendarmes. But what gendarmerie can you call out against the subversive ideas of economists, the daring people who have inscribed at the top of their program this atrocious definition of property: When a man has produced something by the sweat of his brow, since he has the right to consume it, he has the right to exchange it?9
“No, no, with people like this, it is a waste of time to resort to rebuttal.”
“Quick, a gag, two gags, three gags!”
The teaching of political economy (essentially liberal) began rather late in France. From 1815 Jean-Baptiste Say taught at the Athénée and then at the Conservatoire national des arts et métiers. Under the July Monarchy, two chairs were created: one at the Collège de France, in 1831, occupied first by Say and then by Pellegrino Rossi and Michel Chevalier; the other was created at the École des ponts et chaussées in 1846. It was occupied by Joseph Garnier.
(Paillottet’s note) Three years before the demonstration that triggered the preceding pamphlet [Paillottet is referring to “Plunder and Law”], the removal of professors and the abolition of chairs of political economy had been formally requested by the members of the Mimerel Committee, who shortly afterward softened their position and limited themselves to claiming that the theory of protectionism should be taught at the same time as that of free trade.
Bastiat used the weapon of irony to combat this revised proposal, now surfacing for the first time, in the issue of the journal Le Libre-échange dated 13 June 1847.
(Paillottet’s note) This is the origin of Baccalaureate and Socialism, which will become even more apparent in the following pages. (OC, vol. 4, p. 442, “Baccalauréat et socialisme.”) [See also “Baccalaureate and Socialism,” p. 185 in this volume.]
“And yet it moves.”
“And yet it is good.”
(Paillottet’s note) Mr. Whately, the archbishop of Dublin, who founded a chair of political economy there, held the professorship at Oxford.
Bastiat is probably referring to Henri-Frédéric Storch.
This is a reference to the Eclogues, or Bucolics, of the Roman poet Virgil (70–19 bc). The Eclogues were pastoral poems depicting a rural Arcadia but set during a time of land confiscations by the Roman state.
(Paillottet’s note) See the declaration of the principles of [Free Trade] Society in Le Libre-échange in vol. 2. (OC, vol. 2, p. 1, “Déclaration.”)
T.136 "The Salt Tax" (20 June 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.136 (1847.06.20) "The Salt Tax" (L'impôt du sel), LE , 20 June 1847, no. 30, p. 237. Not signed by Bastiat. [OC2.41, pp. 225-28.] [CW4]
Editor's IntroductionThe 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 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 for the government. 746 On the eve of the elections of August 1846, the Chamber of Deputies, on the initiative of Philippe Demesmay, had adopted a 2/3 reduction of the tax, down to 10 centimes per kilo. However, the measure was rejected by the Chamber of Peers. 747 Bastiat supported its reduction or even abolition twice the following year - the first time in January 1847 in a very speculative article he wrote for Le Libre-Échange (17 Jan. 1847) 748 on what a radical liberal politician, called in the essay "The Utopian," would do if he somehow got into power, in this case he would cut the tax to 10 centimes per kilogramme; and again in June 1847 with this article in its defence when the measure came up for debate again. Early on in the Revolution of 1848 the salt tax was initially abolished in a decree of 15 April, 1848 to take effect on 1 January 1849, but because of the government's dependency on this tax for revenue it was revoked on 28 December 1848 and a tax of 10c per kg. was imposed, which is what Bastiat's "utopian politician" had advocated the previous year, and what Bastiat himself voted for at the end of 1848.
However during the first half of 1848 Bastiat continued to push for its complete abolition as a way of relieving the economic hardship of ordinary working people. In his first revolutionary street magazine, La République française , in an article called "The Immediate Relief of the People" (12 March, 1848), Bastiat calls for its immediate abolition, along with the city tolls (octroi), and the taxes on cattle, wheat, and wine. 749 These demands were part of a poster which was plastered onto the walls of Paris during the second week of the Revolution as part of the economists' attempt to appeal to the people:
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. 750
Also in March, he wrote an article for the Journal des Économistes in which he stated the official position of the Economists calling for the abolition of all taxes on the working people including, interestingly, on their tools of trade:
The school of thought known as the Economist School 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, the duties on the import of subsistence items and working tools to be abolished forthwith … 751
The salt tax was also referred to repeatedly in his second revolutionary street magazine, Jacques Bonhomme , which he and his economist friends published for a month during June 1848. Apparently he thought their opposition to indirect taxes would make their message appealing to ordinary workers, such as the following. In "A Hoax" a fictional Minister of Finance ominously named "Mr. Budget" tells the worker how things really are:
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. I strut in grand hotels, I lounge in fine carriages, I have myself served by fine servants, up to ten million's worth. I give twenty to my agents to keep an eye on wine, salt, tobacco, meat, etc., and with what remains of their own money I set to work the workers. 752
In "Taking Five and Returning Four is not Giving" the character of Jacques Bonhomme argues that:
I am not a scholar but a poor devil called Jacques Bonhomme, 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 doors, on the iron and steel in my tools, on my tobacco, etc., I attach great importance to this question and repeat:
Do civil servants enable workers to live or do workers enable civil servants to live? 753
When the reduction of the salt tax to 10c per kg. finally became law on January 1, 1849 Bastiat pointed out in an article in the prestigious Journal des Débats that the government was in disarray as the expences of the Republican government continued to escalate while taxes like the one on salt fell. He thought that this provided a great opportunity for reformers like him to force the government into a wholesale rethinking of taxation and expenditure and to get the new regime onto a completely new path. It was an opportunity to slash spending on public welfare (what he called "false philanthropy') as well as the army and the navy (what he called the "warlike passions") and pursue his preferred policy of "peace and freedom":
This is a wonderful, and one might say providential, opportunity to go down a new path, to put an end to false philanthropy 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. 754
There are two other issues which Bastiat discusses in this article which should be mentioned. The first is the elasticity of demand for salt, and the second is his conception of the proper role of government. Many defenders of the salt tax argued that it provided a good example of a highly inelastic commodity which had no substitutes and which was so essential for life that the state could increase the tax almost without limit and consumers would still have to pay. Thus, the tax on salt was the perfect tax and explains why it was imposed all across Europe as well as in India and China. Critics of the tax on the other hand believed that lowering the tax would help the poor as well as increase the sales of salt and eventually, in the long run, lead to greater revenues for the state in an early version of the "Laffer curve" argument. Bastiat's argument against the tax was simpler and more complicated at the same time. He wanted to abolish it outright on the simple grounds of morality - because it was so essential for life it should be available at the lowest cost possible immediately.
His more complex and sophisticated argument against it was a result of his understanding of "opportunity cost," the idea of which he was perhaps the inventor. Because people would pay so much for an essential item in their diet, they were making considerable sacrifices to their standard of living by cutting back on purchases of other items, like clothes or furniture, which had a flow on effect on other sectors of the economy. Bastiat called this "flow on effect" caused by government interventions in the economy the "ricochet effect" on which he had hoped to write on at length but was never able to. The French editor Paillottet mentions this in a footnote towards the end of the article. In a speech he gave in January 1848 for the Free Trade Association in Paris, Bastiat says he intended to devote an entire article (or Sophism) to it. By "ricochet" he meant the many indirect and longer term consequences of some intervention in the economy, such as a tax on salt or a tariff on manufactured goods. These consequences were like the ripples on a pond which spread out in expanding concentric circles when a stone is bounced across its surface. Initially, he viewed the ricochet effect in purely negative terms (e.g. the impact of a tariff) but later came to see another version of it having positive effects, for example the impact of the invention of printing in dramatically lowering the cost of the dissemination of information, the introduction of railways in lowering the cost of transport across the board. 755 In the case of the tax on salt, he thought the bad effects on consumers were even worse than those of protective tariffs in the "flow on effect" they had on the rest of the economy.
The second remaining issue is Bastiat's conception of the proper size of government in a free society. Bastiat concludes his call for the abolition of the tax on salt by reminding the reader that taxes can't be cut until the functions of government have been cut first. Once it has been limited to its proper duties, then a whole range of onerous taxes can be abolished or drastically cut. As he states:
Moderate excessive public services , merely leaving the State its proper functions; it will then be easy to reduce expenditure, and subsequently, taxes.
But what functions Bastiat reserved to the state is not explained here. Elsewhere it is made clear that he is an advocate of a very strictly limited government along the lines of the "nightwatchman state" whose only functions were the supplying of police and defense services, along with a very limited number of public goods. Paillottet refers to two essays by Bastiat where he goes into more detail on this question. I would also add "The Utopian" mentioned above. A good summary of his views can be found in his "Speech on the Tax on Wines and Spirits" (12 Dec., 1849):
The number of things included in the essential functions 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 functions, 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. 756
Before taxes could be cut to this level he believed a number of entire areas of government expenditure could and should be cut first, such as publicly funded education, subsidies to religion, the departments in the Ministry of the Interior which dealt with agriculture and commerce, the colony in Algeria, the virtual army of bureaucrats who administer the collection of tariffs and other internal trade regulations, and the abolition of the standing army and its replacement by local militias. Once these measures had been introduced Bastiat believed that the total annual expenditure of the French state could be reduced from over 1.5 billion fr. to only 200 or 300 million fr., in other words a reduction of over 80%. This would then make it possible to replace the burden of indirect taxes (such as salt) which lay so heavily on ordinary workers, with a fairer system of very low direct taxes along with some "fiscal tariffs" of 5%. He concluded his speech with the optimistic claim that:
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. 757
TextFor the second time, a motion to reduce the salt tax has been passed almost unanimously by the Chamber of Deputies and the only consequence of this, it appears, will be that the government will instruct the minister concerned to study the matter next year.
Among the arguments used in the debate, there is one that comes up with regard to any reduction in taxes and in particular in connection with Customs duty. For this reason, we think it will be useful to put straight the ideas expressed on this subject.
The deputies who supported the proposal by Mr. Demesmay 758 believed they had to assume that there would be an increase in consumption, from which they concluded that the Treasury deficit would soon be almost wiped out.
Those who rejected the measure asserted on the contrary that the consumption of salt, with regard to its direct use by people, was currently as high as it could be, that it would never be changed by a reduction in the tax, not even if the salt were free, from which the conclusion was drawn that the Treasury deficit would be exactly in proportion to the reduction of the tax.
At this point we consider that we have to make a rapid and general examination of the following question:
"Does a reduction in tax, and consequently in the market price of the object being taxed, have the invariable result of increasing consumption?"
It is certain that the phenomenon at issue has happened so often that it can almost be considered a general law.
However, a distinction must be made.
If the object subject to the tax is so essential that it is one of the last things people agree to do without, consumption will always be at the highest possible level, whatever the tax. In this case, as the tax increases its price, people may well deprive themselves of everything except for the object they think is essential. In the same way, if its price decreases as a result of a reduction in tax, it is not the consumption of the object that will increase, but that of the things of which people had been obliged to deprive themselves in order not to do without this essential object.
In order to breathe, people require a certain quantity of air. Let us assume that it becomes possible to inflict a high tax on this; people will obviously do everything they can to continue to have the quantity of air without which they cannot live. They will do without their tools, clothes, and even food before depriving themselves of air, and if this abominable tax were to be decreased, it is not the consumption of air that would increase, but that of clothing, tools, food, etc.
We therefore consider that those deputies who rejected the reduction of the salt tax on the premise that consumption is at its maximum level, in spite of the tax, have unconsciously produced the strongest argument imaginable against an increase in this tax. It is as though they said: "Salt is so indispensable to life that, in all walks of life, in every class, it will always be consumed in a quantity that is determined and invariable, whatever its price. Keep it at a high price, that makes no difference; workers will be clothed in rags, do without drugs when ill, deprive themselves of wine and even bread rather than give up any portion of the salt that they need. If we decrease its price, we will see workers better clad and fed, but no increase in the consumption of salt."
It is therefore impossible to escape the following dilemma:
The consumption of salt will either increase following a reduction in its price, in which case the Treasury will not suffer the loss forecast,
Or it will not increase, which will prove that salt is an object so necessary to life that even the most onerous tax will not induce people, even the poorest, from consuming any less of it.
And, for our part, we cannot imagine any more potent argument against this tax.
It is true that the Treasury's needs are always present, like some insurmountable legal impediment . What does that prove? Alas, something very simple, although it appears to be little understood. It is that, if people want to vote for tax reductions like this, they should not start by constantly voting for increases in expenditure. How much longer does the constitutional education of a nation have to go before it finally makes the discovery or at least the application of this trivial truth? This is a problem that is not easy to solve.
Reduce excessive public works , cried the elder Mr. Dupin 759 who, moreover, seems to us to have given this debate its proper perspective. We will repeat this phrase with a slight alteration. Reduce excessive public services , merely leaving the State its proper functions; it will then be easy to reduce expenditure, and subsequently, taxes.
746 According to the Budget Papers of 1848 the French state raised fr. 58.2 million from tariffs on imported salt and fr. 13.4 million from the salt tax on internal sales.
747 See, E. de Parieu, "Sel", DEP, vol. 2, pp. 606-09. Also, Félix Esquirou de Parieu, Traité des impôts, considérés sous le rapport historique, économique et politique en France et à l'étranger (Paris: Guillaumin, 1862-63). 3 vols. On the changes in 1848, see vol. 2, pp. 242-43.
748 "The Utopian" ( LE , 17 Jan. 1847), ES2 11, CW3, pp. 187-98.
749 See his impassioned speech in the Chamber on the need to abolish the tax on alcohol,"Speech on the Tax on Wines and Spirits" (12 Dec. 1849), CW2, pp. 328-47.
750 "The Immediate Relief of the People" ( La République française , 12 March 1848, ES3 21, pp.377-79.
751 "Disastrous Illusions" ( JDE , 15 March 1848), ES3 24, CW3, pp. 384-99.
752 "A Hoax" ( Jacques Bonhomme , 15-18 June 1848), see below, pp. 000.
753 "Taking Five and Returning Four is not Giving" ( Jacques Bonhomme , 15-18 June 1848), below, pp. 000.
754 "Consequences of the reduction of the Salt Tax" ( Journal des Débats , 1 Jan. 1849), CW2, pp. 324-27.
755 See "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect" in CW3, pp. 457-61.
756 "Speech on the Tax on Wines and Spirits" (12 Dec., 1849), CW2, p. 343.
757 "Speech on the Tax on Wines and Spirits," p. 337.
758 Philippe Auguste Demesmay (1805-1853) was a Deputy who represented the département of Doubs, in the Franche-Comté region in eastern France between 1842 and 1853. He took up the cause of fighting the tax on salt and became known as the "Deputy for Salt."
759 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.
T.137 (1847.06.20) "The Fear of a Word" (LE, June 1847)↩
SourceT.137 (1847.06.20) "The Fear of a Word" (La peur d'un mot), Le Libre-Échange, 20 June, 1847, no. 30, pp. 239-40. [OC2, pp. 392-400.] [CW3 - ES3.13]
XIII. The Fear of a Word [June 1847]596 (final draft)↩
Publishing history- Original title, place and date of publication: "La peur d'un mot" (The Fear of a Word) Le Libre-échange, 20 June, 1847, no. 30, pp. 239-40
- 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. 392-400.
- Previous translation: [none]
I.
AN ECONOMIST:597 It is rather strange that a Frenchman who is so full of courage and recklessness, who has no fear of the sword, or of cannon or ghosts and scarcely, indeed, of the devil, should allow himself on occasion to be terrified by a word. Good heavens! I will try the experiment. (He approaches an artisan and says in a loud voice: FREE TRADE!)598
THE ARTISAN: (scared stiff): Heavens! You scared me! How can you utter such a dirty word?
E: What ideas, may I ask, do you associate with it?
A: None; but it certainly must be a terrible thing. A Mr. Big599 often comes into our neighborhood, saying: Run! Free Trade is coming! Ah, if you could hear his funereal voice! Look, I still have goose flesh.
E: And doesn't Mr. Big tell you what it is about?
A: No, but it is certainly some diabolic invention, worse than gun-cotton or the Fieschi machine,600 or else some wild beast they have found in the Atlas Mountains, halfway between a tiger and a jackal, or else a terrible epidemic, like asiatic cholera.601
E: Unless it is one of the imaginary monsters used to frighten children, such as Bluebeard, Gargantua or the bogeyman.602
A: Do you think it is funny? Well then! If you know, tell me what free trade is.
E: My friend, it is trade which is free.603
A: Oh? Bah! Is that all?
E: No more no less; the right to freely barter604 our services between ourselves.
A: So, free trade and trade which is free are one and the same thing?605
E: Exactly.
A: Well, well! All the same, I prefer trade which is free. I do not know whether it is a question of habit, but free trade still frightens me. But why didn't Mr. Big tell us what you are telling me?
E: You see, it relates to a rather strange discussion between people who want freedom for everyone and others who also want it for everyone except for their own business. Perhaps Mr. Big was one of the latter group.
A: In any case, he may congratulate himself for making me absolutely terrified, and I can see that I was duped606 as my late grandfather was.
E: Did your late grandfather also take free trade for a three-headed dragon?
A: He often told me that in his youth people had succeeded in arousing his anger against a certain Madame Veto.607 It turned out that this was a law and not the ogress he took it for.
E: That proves that the people still have a lot to learn, and while they are learning it there is no lack of persons like your Mr. Big ready to take advantage of their credulity.608
A: So that everything is then reduced to ascertaining whether everyone has the right to carry out his business or if this right is subject to the convenience of Mr. Big?
E: Yes, the question is to know whether, since you suffer from competition when making your sales, you should not benefit from it when making your purchases.
A: Would you please enlighten me more about this?
E: Gladly. When you make shoes, what is your aim?
A: To earn a few écus.
E: And if you were forbidden to spend these écus, what would you do?
A: I would stop making shoes.
E: So your real aim then is not to earn écus?
A: It goes without saying that I seek écus only because of the things I can procure with them: bread, wine, lodging, an overall, a prayer book, a school for my son, a trousseau for my daughter and fine dresses for my wife.609
E: Very good. Let us leave the écus to one side for a moment then and say, to keep things short, that when you make shoes it is to have bread, wine, etc. So why do you not make this bread, wine, prayer book or these dresses yourself?
A: Mercy me! My entire life would not be long enough to make just one page of this prayer book!
E: So, although your station is fairly modest, it makes you capable of obtaining a thousand more things than you could make yourself.610
A: This is quite an agreeable thought, especially when I think that it is true of all stations in society. Nevertheless, as you say, mine is not of the best and I would prefer another, that of a bishop, for example.
E: So be it. But it is still better to be a shoemaker and trade shoes for bread, wine, dresses, etc. than to want to do all these things. Keep to your station then, and try to make the best of it as you can.
A: I do my best with that in mind. Unfortunately, I have competitors who cut me down to size. Ah! If only I were the sole shoemaker in Paris for just ten years, I would not envy the lot of the king and would lay down the law in fine fashion, practically speaking.
E: But, my friend, the others say the same thing, and if there were just one ploughman, one blacksmith and one tailor in the world, they would lay down the law for you in fine fashion as well. Since you are subject to competition, what is your interest?
A: Good heavens! That those from whom I buy my bread and clothes be subject to it just as I am.
E: For if the tailor in the Rue Saint Denis611 is too demanding …?
A: I go to the one in the Rue Saint Martin.
E: And if the one in the Rue Saint Denis succeeds in having a law passed that forced you to go to him?
A: I would call him a …
E: Calm down! Did you not tell me you have a prayer book?
A: The prayer book does not tell me that I ought not to take advantage of competition, since I am subject to it.
E: No, but it says that you should not mistreat anyone, and that you should always consider yourself to be the greatest sinner of all.
A: I have read it often. But all the same, I find it hard to believe that I am more dishonest than a scoundrel.
E: Continue to believe it, faith saves us. In short, you consider that competition ought to be the law for everyone or for no one?
A: Exactly.
E: And you acknowledge that it is impossible to exempt everyone from its jurisdiction?
A: Obviously, unless you leave just one man in each trade.
E: Therefore, no one should be exempted?
A: That goes without saying. Each should be free to sell, buy, bargain, barter or exchange things, but honestly.
E: Well, my friend that is what is known as free trade.
A: Is that all there is to it?
E: That's all. (Aside: Here is another convert).
A: In that case, you may clear off and leave me alone with your free trade. We enjoy it fully. Let anyone who wants to give me his custom do so and I will give mine to anyone I like.
E: That remains to be seen.
II
A: Ah! Mr. Econo … Econa … Econe … What the devil do you call your trade?
E: You mean Economist?
A: Yes, economist. What a strange trade! I bet it earns more than a shoemaker's does; but I also read magazines in which you are smartly dressed! Be that as it may, it is a good thing you have come on a Sunday. The other day, you made me waste a quarter of a day with your discussions.612
E: That will happen again. But here you are, dressed to the nines! Good heavens! What a fine suit! The cloth is very soft. Where did you buy it?
A: At the merchant's.
E: Yes, but where did the merchant get it?
A: From the factory, doubtless.
E: And I am sure that he made a profit on it. Why did you not go to the factory yourself?
A: It is too far, or, to tell you the truth, I do not know where it is and have not the time to find out.
E: So you have dealings with merchants? People say that they are parasites that sell for a higher price than they pay, and that they have the nerve to make people pay for their services.
A: That has always seemed to me to be very hard, for in the end, they do not fashion woolen cloth as I fashion leather; they sell it to me just as they have bought it. What right have they to make a profit?
E: None. The only right they have is to leave you to go to find your own woolen cloth in Mazamet613 and your leather in Buenos Aires.
A: Since I occasionally read La Démocratie pacifique614, I have a horror of merchants, these intermediaries, these stock-jobbers,615 these monopolists, these second-hand dealers, these parasites, and I have often tried to do without them.
E: And?
A: Well, I do not know why, but it has always turned out badly. I have had shoddy goods or ones that did not suit me, or I was made to buy too much at one time, or I did not have any choice; it cost me a great deal of expense, postage and wasted time. My wife, who has a good head on her shoulders and who knows what she wants said to me: 'Jacques, get back to making shoes!'616
E: And she was right, in the sense that your exchanges being made through the intermediary of merchants and traders, you do not even know from which country you get the wheat that feeds you, the coal that heats you, the leather from which you make shoes, the nails that you use to reinforce them or the hammer that drives them in.
A: Heavens! I do not really care, provided that they arrive.
E: Others care on your behalf. Is it not fair that they are paid for their time and effort?
A: Yes, but they should not make too much.
E: You do not need to fear that. Do they not compete with one another?
A: Ah! I had not thought of that.
E: You were telling me the other day that exchanges are perfectly free. As you do not make your trades yourself, you cannot know this.
A: Are those that make them on my behalf not free?
E: I do not think so. Often, by preventing them from entering a market in which things are at a low price, current arrangements force them to enter another in which these things are expensive.
A: That is a dreadful injustice that is being done to them!
E: Not at all! It is to you that the injustice is being done, for what they have bought at a high price, they cannot sell to you cheaply.
A: Tell me more about this, please.
E: Here we go. On occasion, woolen cloth is expensive in France and cheap in Belgium. A merchant who is looking for woolen cloth for you naturally goes where it is available cheaply. If he were free, this is what would happen. He would take with him, for example, three of the pairs of shoes you made, in exchange for which the Belgian would give him enough cloth for him to make you a frock coat. But he does not do this, knowing that, at the border, he will meet a Customs Officer who will shout: 'Not allowed' at him. So the merchant turns to you and asks for a fourth pair of shoes, since you need four pairs to obtain the same quantity of French woolen cloth.
A: That is the catch! Who set the Customs Officer there?
E: Who could that be, other than the manufacturer of French woolen cloth?
A: And why would he do this?
E: Because he does not like competition.
A: Oh! Damn! I do not like it either and I have to put up with it.
E: This is what makes us say that trade is not free.
A: I thought that was a matter for the merchants.
E: It concerns you, you yourself, since in the end it is you who pays four pairs of shoes instead of three in order to have a frock coat.
A: That is a nuisance, but is it worth making such a fuss about it?
E: The same operation is repeated for almost everything you buy: wheat, meat, leather, iron or sugar, so that you obtain for four pairs of shoes just what you might have for two.
A: There is something fishy about that. All the same, I note from what you say that the only competitors that we remove are foreigners.
E: That is true.
A: Well then! The wrong is only half a wrong since, you see, I am as patriotic as any devil.
E: As you wish. But note this well; it is not a foreigner who is losing two pairs of shoes, it is you, and you are French!
A: And proud of it!
E: And then, were you not saying that competition should cover everyone or no one?
A: That would be proper justice.
E: However, Mr. Sakoski is a foreigner, and no one is preventing him from being a competitor of yours.617
A: And a strong competitor at that. How he polishes off a pair of boots!
E: It is difficult to cope with, is it not? But since the law allows our dandies to choose between your boots and those of a German, why does it not allow you to choose between French and Belgian woolen cloth?
A: What ought we to do, then?
E: First of all, we should not be afraid of free trade.
A: Call it trade which is free, that is less frightening. And then what?
E: Then, you have already said it: demand liberty for all or protection for all.
A: And how the devil do you want the Customs to protect a lawyer, a doctor, an artist or a poor worker?
E: It is because it cannot do this that it ought not to protect anyone, for to favor the sales of one person is of necessity to burden the purchases of another.618
Endnotes596 [DMH - This article has no date but was probably written sometime in 1847.]
597 This is another example of the "constructed dialogue" form which Bastiat used in 13 of the 73 sophisms he wrote between 1845 and 1850. This was a deliberate strategy adopted by Bastiat to make his discussions of economic principles less "dull and dry", especially for the more popular audience he was trying to reach through journals like Le Libre-Échange. He would have the "Economist," "Friday," or "Jacques Bonhomme" present the free market position while the protectionist position was presented by "An Artisan," "Robinson Crusoe," or a government official like the tax collector "Mr. Blockhead." In this technique he was influenced by other free trade writers such as Jane Marcet(1769-1858), Harriett Martineau (1802-1876), and Thomas Perronet Thompson (1783-1869). Bastiat's younger friend and colleague Gustave de Molinari also used it to good effect in three entire books (the first of which appeared in 1849) which consisted entirely of "conversations" between various figures representing different economic points of view. See the Appendix "Bastiat and Conversations about Liberty" and glossary entries on "Marcet," "Martineau," "Thompson," and "Molinari."
598 See the related essay "Anglomania, Anglophobia"in CW, vol. 1, pp. 320-34, which Bastiat had planned to include in the second series of Economic Sophisms but was left only in draft form according to Paillottet. Bastiat notes how easily French people go from one extreme to the other when discussing English politics and economics: "it is hardly possible in this country to judge England impartially without being accused by anglomaniacs of anglophobia and by anglophobics of anglomania" (p. 320). Bastiat's task in this essay is to separate what is really to be feared in England (what he termed "l'oligarcophobie" (oligarchophobia) (p. 329) such as the domination of English politics and the military by an oligarchy of landowners and aristocrats) from that which is most to be admired (the ordinary English people's entrepreneurial energy, their love of liberty, and their belief in free trade). Both anglomania and anglophobia had their own set of sophisms attached to them which Bastiat wanted to refute.
599 Bastiat has the Artisan use the phrase "un gros monsieur" which means a rich or important man. Given the fact that Bastiat tells us he is a successful local businessman who is trying to defend the privileges the government has given his business we have translated it colloquially as "Mr. Big."
600 Giuseppe Marco Fieschi (1790-1836) attempted to assassinate King Louis-Philippe in July 1835 with a twenty-barrelled gun which he had designed himself. All barrels were designed to fire simultaneously thus killing the King and his entourage as they passed by. The King was only slightly injured but several others were killed or injured, including the would-be assassin.
601 The first cholera pandemic occurred 1816-1826 originating in Bengal. Later episodes occurred in France in 1832 (killing 20,000 people in Paris in a population of 650,000, and 100,000 total for France as a whole) and then in 1849 (killing about 19,000 Parisians including a number of younger Economists). When Bastiat died at the end of 1850 from his throat condition many in the Political Economy Society lamented the departure of some of their brightest stars over the preceding five years. In his obituary of Bastiat written for the JDE T. 28 Jan-Avril, pp. 180-96, Molinari notes how badly hit the small community of Economists had been with the deaths between 1845-50 of the following friends and colleagues: Théodore Fix (1800-1846) who died from from heart disease who was fluent in German and wrote a book on the condition of the working classes (1846); Eugène Daire (1798-1847) the tax-collector turned laissez-faire economist who edited the massive 15 volume Collection des principaux économistes for Guillaumin on the history of classical economic thought; Pelligrino Rossi (1787-1848) who was a Professor of Political Economy at the Collège de France (since 1833) who was assassinated in Rome in 1848 while serving as the French Ambassador to the Vatican; Alcide Fonteyraud (1822-49) who was a professor at the École supérieur de commerce in Paris, a founding member of the Free Trade Association with Bastiat, and a co-editor with Molinari, Bastiat, and Charles Coquelin of the revolutionary magazine Jacques Bonhomme which they handed out on the streets of Paris in June 1848, from the cholera epidemic which swept France in 1849. A sixth leading figure, Charles Coquelin (1802-1852), died suddenly from gout 2 years later. He was an early advocate of free banking, had assisted Bastiat in writing Le Libre-Échange, publicly debated socialist groups during the 1848 Revolution, was a co-founder with Bastiat of the magazine Jacques Bonhomme, and most significantly was the editor of the magisterial Dictionnaire de l'économie politique (1852-54) which he had largely completed but did not live to see in print.
602 "Gargantua" was the creation of the French humanist writer François Rabelais (c. 1494-1553) who wrote a series of novels about the adventures of two giants, a father and son, Gargantua and Pantagruel (The Life of Gargantua and of Pantagruel). The stories are very funny, outrageous, and violent, and are written in a satirical and scatological manner, thus offending the censors. "Croquemitaine" is a generic French word for bogeyman and was used in children's stories to frighten them before going to sleep.
603 Bastiat is making fun of the French expressions for "free trade" (libre-échange) and "trade which is free" (échange libre) in which there is merely a swapping of word order. The name of the journal Bastiat edited for the Free Trade Association was called Le Libre-Échange. See the glossary entry on "Le Libre-Échange."
604 Bastiat uses a different word here, "troquer," which means to barter or to swap, thus implying that no money is used in the transaction.
605 The Artisan says literally, "So free trade and trade free is the same as white bonnet and bonnet white." The latter might also be translated as "six of one and half a dozen of the other." In the French translation of Lewis Carroll's Through the Looking-Glass, and What Alice Found There (1871) the characters Tweedledee and Tweedledum are called "Bonnet Blanc" and "Blanc Bonnet".
606 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."
607 "Madame Véto" was the nickname given to Marie Antoinette in 1792 when her husband King Louis XIV was using his veto powers repeatedly in order to preserve his constitutional powers in the early years of the French Revolution.
608(Paillottet's note) <TBK> See pages 121 to 123 in Tome IV. [DMH - Paillottet is citing the conclusion to ES1 where Bastiat states "But there are also sciences that exercise on the public an influence only in proportion to the enlightenment of the public itself, which draw their entire effectiveness not from the accumulated knowledge in a few exceptional heads but from the knowledge disseminated among the general public. They include morals, hygiene, social economy and, in those countries in which men are their own masters, politics…. Two things result from what has gone before: 1. That the social sciences, more than the others, have to abound in sophisms because they are the ones in which everyone consults only his own judgment or instincts; 2. That it is in these sciences that sophism is particularly damaging because it misleads public opinion on a subject in which public opinion constitutes power and, is taken as law. Two sorts of books are therefore needed for these sciences; those that expound them and those that propagate them, those that reveal the truth and those that combat error."]
609(Paillottet's note) <TBK> See the pamphlet Damned money, page 64 in Tome V.
610(Paillottet's note) <TBK> See chapters I and IV in Tome VI.
611 Rue Saint Denis is one of oldest streets in Paris, having been laid out by the Romans in the 1st century. An important post horse stop was located there which meant that it was often the point of entry for people arriving in Paris.
612 Bastiat uses the word "échanges" which could mean "the exchange of opinions" or a reference to their discussion about "libre-échange" and "échange libre."
613 Mazamet is a town in the Tarn department, then known for its woollen industry.
614 La Démocratique pacifique (1843-1851) was the most successful of the journals which supported the socialist ideas of Charles Fourier. It was run by Victor Considérant (1808-1893) whose wife subsidized its running costs. See the glossary entries on "Fourier," "Considérant," "La Démocratique pacifique," and "French Newspapers."
615 Note that Bastiat himself had a dislike of "agiotage" (stock jobbing). See "The Utopian" ES2 XI. "The Utopian", p. ???, where he states his desire to "starve stockjobbing of its profits."
616 (Paillottet's note) <TBK> See chapter VI of the pamphlet What is seen and what is not seen on page 356 in Tome V.
617 The anomaly which Bastiat is pointing out here is that French tariff policy prohibited trading across borders, such as the Belgian or German borders, thus protecting French manufacturers from competition, but because people were free to move from one country to another, as many thousands of Germans (perhaps as many as 60,000) did in order to live and work in Paris, artisans like the one in this sophism were exposed to competition in the trades in which they worked. See ES2 VI. "To Artisans and Workers", p. ???
618 (Paillottet's note) <TBK> See the end of number 43 on pages 244 and 245 and number 53 on page 359.
T.138 (1847.06.20) "Political Economy of the Generals" (LE, June 1847)↩
SourceT.138 (1847.06.20) "Political Economy of the Generals" (L'économie politique des généraux), Le Libre-Échange, 20 June 1847, no. 30, p. 234. [OC2, pp. 355-58.] [CW3 - ES3.8]
VIII. The Political Economy of the Generals [20 June 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "L'économie politique des généraux" (The Political Economy of the Generals) [20 June 1847, 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. 355-58.
- Previous translation: [none]
In the Chamber, if a financier, venturing into the military theories of Jomini543, happens to touch on the maneuvering of squadrons, he may well bring a smile to the lips of the Generals. It is equally not surprising that the Generals sometimes understand political economy in ways that are not very intelligible to men whose occupation it is to concern themselves with this branch of human knowledge.
However, there is a difference between military strategy and political economy. The first is a specific science, which it is sufficient for soldiers to know. The second, like the moral philosophy or hygiene, is a general science about which it is desirable for everyone to have accurate ideas. (See vol. IV, page 122.) <TBK>
In a speech to which we will give full justice in another context, General Lamoricière544 has put forward a theory of markets which we cannot allow to pass without comment.
"From the point of view of pure political economy", said the honorable General, " markets are important: at the present time we spend money and even men to retain markets or gain new ones. Now, in the situation occupied by France in the world market, is not an outlet worth 63 million for French products something notable for her? France sends fr. 17 million worth of woven cotton to Africa, fr. 7 or 8 million worth of wine, etc." 545
It is only too true that at the present time, we are spending money and even men to conquer markets but, and here we beg General Lamoricière's pardon, far from this being in the light of pure political economy, it is in the light of bad, indeed very bad political economy. A market, that is to say, a sale made abroad, is meritorious only if it covers all the costs it engenders; and if in order to make it, recourse has to be made to taxpayers' money, even though the industry concerned by this sale may congratulate itself on it, the nation as a whole suffers a loss that is sometimes considerable, not to mention the immorality of the procedure and the blood that is worse than uselessly spilt.546
It is much worse still when, in order to create alleged markets for ourselves, we send abroad both the people who should be buying our products and the money with which they should be paying for them. We do not doubt that Algerian civil servants, whether French or Arab, to whom their monthly salaries are sent from Paris at the expense of taxpayers spend a small part of these on buying French cottons and wines. It appears that of the 130 million that we spend in Africa,547 60 million are spent thus. Pure political economy teaches us that if things have to be carried out on this footing, the following will result:
We remove a Frenchman from useful occupations and give him 130 francs on which to live. Out of these 130 francs, he hands us back 60 francs in exchange for products that are worth exactly this amount. The total loss is: 70 francs in money, 60 francs' worth of products and all the work that this man might have created in France for an entire year.
Thus, whatever opinion you may have of the usefulness of our conquest in Africa (a question that is not within our competence), it is certain that it is not through these illusionary markets that this usefulness can be appreciated, but through the future prosperity of our colony.548
For this reason, another General, General de Trézel549, Minister for War, thought it necessary to present not the current markets but the future products from Algeria as compensation for our sacrifices. Unfortunately, it is impossible for us not to perceive another economic error in the background of the brilliant picture painted by the Minister to the membership of the Chamber.
He expressed himself thus:
"Its good fortune has given Africa to the country and we will certainly not through carelessness, laziness or even the fear of spending money and even men, let slip from our grasp a country which will be giving us 200 leagues of Mediterranean coastline at a distance of 36 hours from our shores, one which will be giving us products for which we are paying enormous sums of money to our neighboring countries.
For this reason, disregarding the cereals that previously, as I have already said, fed Rome, Africa is giving us the olive, which is a special product of this country. It is giving us oil for which we pay 60 million every year to foreigners. In Africa, we have rice and silk, which again are bought outside France, because France does not produce these. We have tobacco. Calculate how many millions we pay abroad for this product. It is certain that within a few years, perhaps within twenty five years, we will be obtaining all these products from Africa and we might then be able to consider Africa to be one of our provinces."550
What predominates in this passage is the idea that France loses the total value of the products she imports from abroad. In fact, she imports them only because she finds it profitable to produce this same value in the form of products she provides in exchange, in exactly the same way as General de Trézel uses his time better in administrative work than if he spent it stitching his clothes. It is on this error that the entire restrictive regime is based.
On the other hand, the wheat, oil, silk and tobacco to be supplied to us by Africa in twenty-five years' time are shown as a gain. This depends on what these things cost, if we include, in addition to the costs of production, the costs of conquest and defense. It is evident that if with this same sum we were able to produce the same things in France or, what amounts to the same, produce the wherewithal to purchase them from abroad and even achieve a saving, it would be a bad investment for us to go to the Barbary coast to produce them. This is said while no account is taken of all the other points of view relating to the huge question of Algeria. Whatever the importance and, if you like, the superiority of considerations drawn from a higher order, this is not a reason for making a mistake from the point of view of pure political economy.
Endnotes543 Antoine Henri Jomini (1779-1869) was a Swiss-born general who served with distinction under Napoleon and then the Russian Czars. He was the author of several important works on strategy. In his later work of 1838 he did seem to stray into the area of military policy which may have attracted Bastiat's attention: Traité de grande tactique (1805) and Précis de l'art de la guerre (1838). See the glossary entry on "Jomini."
544 Christophe-Louis Juchault de Lamoricière (1806-1865) was a general, an elected deputy, minister of war under Cavaignac (1848), and took part in the military suppression of the rioting during the June Days of 1848. He played a significant role in the colonization of Algeria and supported government plans in 1848 to subsidize its civilian colonization. See the glossary entry on "Lamoricière."
545 [DMH - We have not been able to find the source of this quote]
546 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."
547 The JDE gives a figure of fr. 120 millions spent in Algeria in 1847 and makes a very similar argument to that of Bastiat, that the money goes to the troops and then into the hands of the merchants who service the needs of those troops. It goes further to argue that the civilian population of Algeria is 113,000 of which 6,000 live in administration towns and are paid by the French civilian administration out of tax payers' funds, leaving 107,000 who are paid by the army out of tax payer's funds. See "Chronique" in JDE, February 1848, T. 19, p. 315. See the glossary entry on "Algeria."
548 (Paillottet's note) See the chapter entitled Algeria of the pamphlet What is seen as what is not seen.
549 Camille Alphonse de Trézel (1780-1860) was a military engineer who served in the Topographical Department of the Army. He served under Napoleon in Holland and Poland and following the restoration of the monarchy he spent a considerable part of his career in the French colony of Algeria. He was Minister of War from 1847-1848 and retired from public life with the fall of King Louis-Philippe in 1848.
550 [DMH - We have not been able to find the source of this quote.]
T.139 "Mr. Ewart's Proposal for a Single Tax in England" (LE, 27 June, 1847)↩
[CW4 draft 16 June, 2017] SourceT.139 (1847.06.27) "The Single-Tax in England. The Proposal of Mr. Ewart" (La taxe unique en Angleterre, proposition de M. Ewart), LE , 27 June 1847, no. 31, pp. 245-46. [OC2.37, pp. 209-16.] [CW4]
Editor's IntroductionBastiat had a complex relationship with England. On the one hand he opposed what he called the "l'Angleterre oligarchique et monopoliste" (oligarchic and monopolistic England) but admired and wanted to emulate in France "l'Angleterre démocratique et laborieuse" (democratic and hard working England). 760 Of the things he admired, mention should be made of the free trade movement (1838-1846) organised by Richard Cobden and John Bright, the reform of the postal system (1842), and these proposals for a simplification of the tax system being put forward by William Ewart.
William Ewart (1798–1869) was a British liberal politician who represented Liverpool (1830-1837), Wigan (1839-1841), and then Dumfries Burghs (1841-1868) in Scotland. He agitated for the repeal of capital punishment, the creation of public free libraries, the Reform Act of 1832, and was a member of the Anti-Corn Law League. A speech he gave in the House of Commons on 28 May, 1847 urging a reduction of indirect taxes (especially tariffs) which harmed the poor, and a broadening of the tax base to include a direct tax on property, which would be felt more strongly by the wealthy, caught Bastiat's attention. 761 In the speech Ewart criticised "the effect of the present excessive amount of indirect taxation on the trade and labour of this country." He argued that "The present system of indirect taxation was oppressive to the labouring classes of this country, not only because it taxed trade, the principal source of their employment, but because the mode of its imposition was, towards them, unjust." His solution was to broaden the base of taxation with a direct tax on property and a reduction in indirect taxes such as duties on imports. His call for a reduction in duties on French wine would have caught Bastiat's attention as well. In the course of the Speech Ewart quotes very approvingly an address of the Free Trade Association of Bordeaux to Lord John Russell, one which Bastiat probably gave. He concluded his speech by putting forward the following motion:
"That it is expedient that a more direct system of Taxation on property should (as far as possible) be substituted for the indirect system (by Customs and Excise Duties) now in use:" "That such a change would, by removing restrictions caused by the Excise, encourage trade, and the free application of science to trade:" "That, by removing the restrictions caused by Customs Duties, it Would extend commerce, and be the most natural means of prolonging the peace, by promoting the intercourse, of the world:" "That it would be highly beneficial to the poor, (who now pay the great mass of indirect Taxation,) by giving them more abundant means of subsistence and of employment; and would tend generally and finally to the good of all classes of the community."
Bastiat also agitated for a simplification of the French tax system. 762 He wanted to see the abolition of direct taxes, such as the tax on salt and drink, and doors and windows; as well as protective duties and tariffs which kept out of France cheaper food and clothing, all of which hurt the poor the most; and their replacement by a very low direct tax of some kind and much lower "fiscal" tariffs of 5% on imported, and interestingly, on exported goods. The overall level of tax would be much lower as he also planned to abolish a very large part of what the French state did outside of its core duties of protecting citizens lives, liberties, and property. He gave several important speeches in the Chamber during 1848 and 1849 on tax matters, such as calling for the abolition of the tax on letters, salt, and alcohol. 763 In other writings he called for drastically cutting the size of the military to a quarter of its existing strength and its replacement by local militias. His essay on "The Utopian" (Jan. 1847) provides a good indication of what he would do if he were made "dictator of France." 764
TextA few newspapers, interested in turning national prejudice against us, point out that we often draw facts and lessons from across the Channel. The Moniteur industriel 765 even goes so far as to call us an English newspaper , an insult which the good sense of the public will treat as it deserves.
Nevertheless, we owe it to our dignity to explain why we follow the development of ideas and of the legislation in England attentively, on subjects that are linked to the particular aim of this publication.
However one judges England's policies and the role that country has assumed in the world, it is impossible not to acknowledge that in everything concerning trade, industry, finance, and taxation, it has been through experiments that other nations can and should study for their own benefit.
In no other country have the various systems been more rigorously put into practice. When England wanted to protect its navy, it devised a Navigation Act 766 that was much stricter than all the imitations made of it elsewhere. England's Corn Laws 767 are far more restrictive than those applied in our country, its colonial system is far more widespread. Government expenditure there has reached prodigious levels for a long time, and consequently every conceivable form of taxation has been tried out there. Banks, savings-banks, and poor laws are already old institutions over there.
Thence it follows that the effects, whether good or bad, of all those measures must be more apparent in England than in any other country; firstly because they were taken in a more absolute manner, secondly because they have been applied for longer over there.
Furthermore, the representative system, debate, publicity, the practice of surveys and statistics have established the facts more clearly than in any other country.
So it is in England first of all that the reaction of public opinion against false systems must have occurred - against legislative practices that were in contradiction with the laws of social economy, against institutions that seemed attractive in their immediate effects, but were disastrous in their long-term consequences.
Under these circumstances, we should feel that we were failing in our duty and showing proof of cowardice, if, allowing ourselves to be impressed by the strategy of the Moniteur industriel and of the protectionist party, we were to deprive ourselves of a source so rich in information. It has been rightly said, experience is the best teacher; and if the example of others can preserve us from a few mistakes, why should we not try to take advantage of the tests and trials carried out elsewhere for the guidance of our own country?
A tendency well worthy of note, is the inclination that has been apparent in England for some time to solve problems of economy through principles, which does not mean that reforms are carried out overnight, but that they are designed to implement comprehensively an idea that is judged to be founded on justice and on the general interest.
While in other countries it is traditionally considered that when it comes to taxation, finance, and trade there are no principles, 768 that one must be content to grope, to patch up, and to alter from day to day, in view of the most immediate result, it seems that, across the Channel, the Reform Party 769 accepts as indisputable the fact that the general interest is to be found in justice. Consequently, everything comes down to examining whether a reform is in keeping with justice; and once that point has been accepted by public opinion, the reform is vigorously put into action without people bothering too much about the drawbacks that are inherent in any transition, knowing full well that there are eventually more benefits than harms to be expected from substituting what is just for what is not.
That is how the abolition of slavery was brought about. 770
That is how the postal reform was carried out. 771 Once it had been recognized that affectionate or business relations through correspondence were not taxable material , postage was reduced, as according to principle, to the cost of the service rendered.
The same conformity with a principle governs the reform of commerce. Having clearly established that protection is a deception in that it only benefits some at the expense of others, with a dead loss for the community into the bargain, the following words were set up as a principle: No more tariff protection. That principle is destined to bring about the downfall of the Corn Laws, of the Navigation Act, of the colonial system, - the complete overthrow of the old political and diplomatic traditions of Great Britain. 772 No matter, it will be pursued to the end.
A process is taking place in people's minds at the moment to found religious life, 773 education, 774 and banking 775 on the principle of freedom. These questions have not fully matured yet; but of one thing we may be sure, which is that if, on the above subjects, freedom emerges triumphant from the debate, it will not be long before it is achieved in fact.
And now a member of the League, Mr. Ewart, has brought forward a motion in Parliament to convert all taxes into a single tax on property, meaning thereby capital of whatever nature. It is the idea of the Physiocrats, 776 corrected, completed, broadened, and made practicable.
Readers may imagine that such an extraordinary proposal, conducive to nothing less than the outright suppression of all indirect taxes (including customs), 777 must have been rejected and considered by everyone, and particularly by the Chancellor of the Exchequer, to be the work of a dreamer, of a crackpot, or at the very least of a man too far ahead of his time. Not at all. Here is the Chancellor of the Exchequer's answer: 778
The CHANCELLOR OF THE EXCHEQUER felt confident that he expressed the opinion of the whole House when he said that it was quite unnecessary for the hon. Member (Mr. Ewart) to say anything in defence of the purity of his motives. He believed that there was no man who stood less in need of any defence on that score, as every one knew the disinterested motives which always actuated his hon. Friend; and certainly it was impossible to overrate the importance of the subject he had brought before the House. At the same time, he hoped his hon. Friend would not consider it any disrespect to him if he declined to follow his hon. Friend into the details of the various points he had brought under the notice of the House, relating to almost every article of taxation in the Customs, the Excise, and the Stamps and Taxes. It was evident that in the course of next Session it would be his duty to bring before the House the subject of taxation—that it would be indispensably necessary to deal one way or another with one great item of taxation—he meant the income tax; and that it would then be for the House to consider the question of the permanence, and perhaps the increase of the system of direct, as contradistinguished from indirect taxation. It would be obvious, therefore, to every one, that it would not be proper on the present occasion to say anything which would indicate the course which—supposing that he continued to hold his present situation—he might consider it his duty to take on this question. His hon. Friend had satisfactorily proved that there was no tax against which some plausible objection might not he made; and he was certainly not sanguine enough to expect that he would be able to do what so many of his predecessors had failed in doing—he meant make taxation of any kind palatable. He assured the House, however, that it was his anxious desire to see our taxation put on a footing the least oppressive to those who paid the taxes; and to foster industry and commerce to the greatest degree of which they were susceptible. Beyond this general explanation he thought it better to abstain from saying more on the present occasion; and after the full and able way in which the hon. Member had submitted his views on the subject of taxation, he thought it very desirable that the subject should not be prolonged.
No doubt, what may have induced the Chancellor of the Exchequer to receive Mr. Ewart's motion so favorably, was the desire to ensure the definitive triumph of income tax 779 for next year, that measure having always been hitherto presented as temporary. 780 In every country, the minister of finance proceeds in this way with regard to new taxes. It is a tithe for war , an income tax ; it is this or that, born of the occasion, and certainly destined to disappear with it, but which nonetheless never disappears. So it is possible that the Chancellor of the Exchequer merely displayed skill and foresight regarding taxation. But if income tax only develops along with corresponding abolition of indirect taxes, it will still be true to say, whatever the intentions were, that a great step has been taken towards the advent of the single tax. 781
Whatever the case may be, the question has been raised; it will not be dropped.
It is not our intention to come to a conclusion on so serious and still so controversial a matter. We shall limit ourselves to putting a few considerations before our readers.
Here is what the advocates of the single tax say:
However one goes about it, tax eventually always falls on the consumer. It is therefore indifferent to him, when it comes to the amount, whether the tax be levied by the Fisc (Inland Revenue) at the time of production or at the time of consumption. But the former system has the advantage of having lower collection costs, and of freeing the taxpayer from a mass of inconveniences that hinder the movement of labour, the circulation of goods, and commercial transactions. An inventory of all capital should therefore be drawn up: land, factories, railways, public funds, ships, houses, machines, etc., etc., and a proportional tax levied. As nothing can be done without the intervention of capital, and as the capitalist will incorporate the tax in his cost price, it would so happen that the tax would be spread throughout the whole economy; and all subsequent transactions, whether at home or abroad, as long as they were honest, would enjoy the most complete freedom.
The supporters of indirect taxes do not lack good reasons either. The main one is that in the latter system the tax is so merged with the market price, that the taxpayer can no longer tell one from the other, and pays tax without realizing it; which cannot fail to be convenient, especially for the Fisc (Inland Revenue), which thus progressively manages to extract some five or six francs from an item that is not worth 20 sous (or 1 franc).
Eventually, if ever the single tax is achieved, it will only be after a prolonged debate or a widespread propagation of knowledge in economics; for it depends on the triumph of other reforms that are still further from gaining public assent.
For example, we believe it to be incompatible with a costly administration, which consequently meddles with many things.
When a government needs one, two, or three billion francs, 782 it is reduced to squeezing them out of the population by trickery , 783 so to speak. The question is how to take from people half, two thirds, three quarters of their income, drop by drop, hour by hour, and without their understanding a thing. That is the beauty of indirect taxes. The tax is so intimately merged with the price of goods that it is absolutely impossible to disentangle them. If one is careful to institute only a moderate tax at first, as was the policy during the Empire, in order not to cause too visible a variation in prices, one can afterwards achieve surprising results. With each fresh increase, the Fisc (Inland Revenue) says: "What is a cent or two per person on average ?" or else: "Who can claim that the increase does not result from other causes?"
It is improbable that with the single tax , which cannot surround itself with all those subtleties, a government could ever succeed in absorbing half its citizens' wealth.
The first effect of Mr. Ewart's proposal will therefore very likely be to turn public opinion in England in favor of a serious reduction in expenditure, that is to say, in favor of the non-intervention of the State in all matters in which its intervention is not part of its essential nature.
It seems to me impossible not to be struck by the probable effect of the new direction imparted to the taxation system in Great Britain, combined with the reform of trade.
If, on the one hand, the colonial system collapses, 784 as it must necessarily collapse in the face of free trade; if, on the other hand, the government is reduced to being unable to seize anything from the public beyond what is strictly necessary for the administration of the country, the unfailing result must surely be to strike at the very root of our neighbors' traditional policy, which, under the names of intervention, influence, supremacy, and dominance, has sown into the world such causes of war and discord, and has subjected all nations and the English nation more than any other, to so crushing a burden of debt and taxation.
760 See his long introduction to his book Cobden and the League (1845), CW1, pp. 320-34 and the essay "Anglomania, Anglophobia" (1847), in; CW3, ES3 14, pp. 327-41.
761 William Ewart, Speech in Hansard on "DIRECT TAXATION." HC Deb 28 May 1847 vol 92 cc1249-66. #1249 <http://hansard.millbanksystems.com/commons/1847/may/28/direct-taxation#column_1249>.
762 On Bastiat's writings on taxation, see the Editor's Introduction to "On the Allocation of the Land Tax in the Department of Les Landes" (July 1844), above, pp. 000 and the glossary entry on "Bastiat on Taxation."
763 See for example,"Speech on the Tax on Wines and Spirits" (12 Dec. 1849), CW2, pp. 328-47.
764 "The Utopian" ( LE , 17 Jan. 1847), ES2 11, CW3, pp. 187-98.
765 Le Moniteur industriel (founded in 1839) became 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. It was the intellectual stronghold of the protectionists and became one of Bastiat's bêtes noires.
766 The Navigation Acts were a lynch pin of the British policy of mercantilism from its introduction in 1651 to its abolition in 1849. The Navigation Act Bill was passed by Oliver Cromwell's government to prevent merchandise from being imported into Britain if it was not transported by British ships or ships from the producer countries. The repeal of the Navigations Acts in 1849 was part of a concerted effect to introduce a policy of free trade in Britain and its empire during the 1840s. The repeal of the Corn Laws in 1846 was the other major platform of this effort.
767 The Corn Laws were introduced by Parliament in the seventeenth century to maintain a high price for corn (in the British context this meant grain, especially wheat) by preventing the importation of cheaper foreign grain altogether or by imposing a duty on it in order to protect domestic producers from competition. The high price caused by protection led to the formation of opposition groups, such as the Anti-Corn Law League in 1838. The Conservative prime minister Sir Robert Peel announced the repeal of the Corn Laws on 27 January 1846.
768 A common criticism Bastiat faced when arguing for free trade was that "there are no absolute principles" and that those who argued for radical reforms were misguided ideologues. The defenders of protectionism argued that one had to be "pragmatic" and not change too much too quickly. See Bastiat's response in ES1 18 "There are no Absolute Principles" and ES2 15 "The Free Trader's Little Arsensal" (April 1847), in CW3, pp. 83-85 and pp. 234-40.
769 The Reform Party was the name given to the group of utilitarians and Philosophic Radicals around James and John Stuart Mill in the 1830s who opposed the "aristocratic party" of Tories and Whigs in the British Parliament. They agitated for electoral reform (which they achieved with the First Reform Act of 1832), free trade (the repeal of the Corn Laws in 1846), among many other political and economic reforms. They founded the Reform Club in 1836 in order to influence other Members of Parliament and wrote for journals such as The Westminster Review . See, Joseph Hamburger, Intellectuals in Politics: John Stuart Mill and the Philosophic Radicals (New Haven: Yale University Press, 1965) and Joseph Hamburger, "Introduction" to The Collected Works of John Stuart Mill, Volume VI - Essays on England, Ireland, and the Empire, ed. John M. Robson, Introduction by Joseph Hamburger (Toronto: University of Toronto Press, London: Routledge and Kegan Paul, 1982). </titles/245>.
770 William Wilberforce and Thomas Clarkson organised a movement to abolish first of all the salve trade in 1807-8 and then slavery in the British colonies in 1833.
771 The uniform Penny Post was introduced in 1842. See, Bastiat's articles on Postal Reform from 1844 and 1846 above, pp. 000.
772 The First Reform Act of 1832 opened up the very corrupt and restrictive British electoral system by abolishing many small "rotten boroughs" which were monopolised by local elites, the creation of new seats to give better representation to the new industrial towns and cities which had emerged, and the granting of the right to vote to the middle class by lowering the property qualifications. It is estimated that the Act increased the number of voters from about 400,000 to over 650,000. A Second Reform Act was passed in 1867 which further opened up the franchise by doubling the number of those who were allowed to vote, namely all householders.
773 Catholics and Non-conformists (protestants who did not subscribe to the doctrines of the established Anglican Church) were discriminated against by being banned from holding public office, sitting in Parliament, or attending universities such as Oxford and Cambridge. They also had to pay compulsory Church rates to pay for the upkeep of their local parish Anglican church. The Test and Corporation Acts were repealed in 1828, thus allowing Non-conformists to hold public office. The Roman Catholic relief Act 1829 allowed Roman Catholics to sit in Parliament. The Church Rate Abolition Society was founded in London in 1836 but rates remained compulsory until 1868.
774 Admission to the Universities of Oxford and Cambridge was restricted to members of the established Anglican Church. A group of secular Radicals and Non-Conformists who were inspired by the ideas of Jeremy Bentham founded London University in 1826. It was secular (admitting people of all faiths), allowed women to enroll, and established a Chair of Political Economy in 1827 to which the free market economist John Ramsay McCulloch was appointed. Concerning education for children, the liberal movement in England was split into two camps. Richard Cobden supported state funded schools, while Edward Baines strenuously opposed it.
775 It is not clear what Bastiat means by this claim. Before 1844 parts of Britain, such as Scotland, enjoyed a system of relatively free banking. This came to an end with the Bank Charter Act of 1844 introduced by Robert Peel which gave a monopoly on issuing notes to the Bank of England. Bastiat was a supporter of free competition between banks as he makes clear in Free Credit, below, pp. 000.
776 See the glossary entry on "Physiocrats."
777 This was very similar to Bastiat's idea of an ideal tax system. He wanted to replace indirect taxes which fell most heavily on the poor, such as the taxes on salt and alcohol, with low direct taxes and a 5% "fiscal" tariff rate.
778 William Ewart gave a Speech in the House of Commons on 28 May, 1847 on "Direct Taxation." It was responded to byCharles Wood (1800-1885) who was Chancellor of the Exchequer 1846-1852. See, Hansard on "DIRECT TAXATION." HC Deb 28 May 1847 vol 92 cc1249-66; #1249 <http://hansard.millbanksystems.com/commons/1847/may/28/direct-taxation#column_1249> and Wood's reply <http://hansard.millbanksystems.com/commons/1847/may/28/direct-taxation#S3V0092P0_18470528_HOC_18>.
779 Bastiat uses the English phrase "income tax."
780 When Sir Robert Peel was Prime Minister in 1841 the economy was in severe recession and to solve his budgetary problems he introduced an income tax in 1842 (not used since the Napoleonic Wars) which also permitted him to cut the level of tariffs on many goods such as sugar. It was levied at 7 pence in the pound (3%) on incomes above 150 pounds. See the glossary entry on "Peel."
781 Bastiat would return to this matter in a discussion held by the Political Economy Society in October 1848, below, pp. 000.
782 The French government raised 1.45 billion fr. in revenue in 1848. See the Appendix on "French Government Finances, 1848-1849."
783 Bastiat uses the word "la ruse" (deception, fraud, trickery) which was an important part of his theory of plunder. It was to expose such "trickery" that wrote Bastiat wrote his Economic Sophisms .
784 Bastiat would return to this question in "England's New Colonial Policy. Lord John Russell's Plan" ( JDE , 15 April 1850), below, pp. 000.
T.140 (1847.06.27 ) "On Communism" (LE, June 1847)↩
SourceT.140 (1847.06.27) "On Communism" (Du Communisme), Le Libre-Échange, 27 June 1847, no. 31, pp. 244-45. [OC2.22, pp. 116-24.] [CW6]
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T.141 (1847.07.03) "Third Speech given in Paris at the Taranne Hall"↩
SourceT.141 (1847.07.03) "Third Speech given in Paris at the Taranne Hall" (Troisième discours, à Paris). Found in FB's papers. [OC2.44, pp. 246-59.] [CW6]
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T.142 (1847.07.11) "Another Reply to La Presse on the Nature of Commerce" (LE, July 1847)↩
SourceT.142 (1847.07.11) "Another Reply to La Presse on the Nature of Commerce" (Autre réponse à la Presse sur la nature des échanges), Le Libre-Échange, 11 July 1847, no. 33, pp. 257-58. [OC2.28, pp. 158-64.] [CW6]
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T.143 "On Mignet's Eulogy of M. Charles Comte" (11 July 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.143 (1847.07.11) "On Mignet's Eulogy of M. Charles Comte" (Sur l'éloge de Ch. Comte. Par M. Mignet). Original title: "Variétés: Notice sur M. Charles Comte. Par M. Mignet", LE , 11 July 1847, no. 33, p. 264. [OC1.11, pp. 434-39.] [CW4]
Editor's IntroductionSoon after the tenth anniversary of the death of Charles Comte (he died on 13 April, 1837) Bastiat published a tribute to him in his free trade magazine Le Libre-Échange . Charles Comte (1782-1837) was one of the four most important French classical liberals in the first third of the 19th century, along with the economist Jean-Baptiste Say (1767-1832), the political philosopher Benjamin Constant (1767-1830), and his friend and colleague the economist and social theorist Charles Dunoyer (1786-1862). 785 Comte had been a lawyer, a critic of the repressive policies of Napoleon and then the restored monarchy, and the son-in-law of the economist Jean-Baptiste Say. He founded, with Charles Dunoyer, the journal Le Censeur in 1814 and Le Censeur européen in 1817 and was prosecuted many times for challenging the press censorship laws and criticizing the government. He came across the economic ideas of Say in 1817 786 during a period of enforced inactivity when their journal had been suspended by the government, and discussed them at length in the magazine's successor Le Censeur européen . After his conviction for again violating the censorship laws in 1820 he spent 5 years in exile in Switzerland and England, before returning to France where he published two important books on liberal social theory, Traité de législation (1826-27) and Traité de la propriété (1834). Following the Revolution of 1830 he became a deputy representing La Sarthe and permanent secretary of the Académie des sciences morales et politiques (Academy of Moral and Political Sciences) in 1832.
In this tribute Bastiat reflected upon Comte's belated eulogy which had been given by François Mignet, the Permanent Secretary of the Academy of Moral and Political Sciences, the previous year. 787 This was a curious thing to do as Comte, although an important figure in the classical liberal movement in France during the Restoration, had been trained as a lawyer and had written important works on the political issues of his day, namely censorship, the rule of law, the National Guard, and constitutional limits to government power, as well as several original works on liberal social theory, such as the theory of property, the historical emergence of free institutions in Europe, and classical liberal class theory. Thus, his connection to the free trade movement in 1847 was rather tenuous. Nevertheless, Bastiat must have been thinking about him in July 1847 and included these theoretical reflections in the "Variety" section at the end of a typical issue of his magazine with its standard articles on the grain trade, coal exports, the American tariff, British customs revenue, and debates with the protectionist press.
A clue to why he did this can be found in his correspondence earlier that month with Richard Cobden who was travelling in Italy as part of his celebratory tour of Europe following the repeal of the English Corn Laws in June of 1846. (As part of this, the Parisian economists had hosted a dinner in Paris in August 1846 to celebrate Cobden's great victory and Bastiat had given one of the toasts.) As the defeat of the French free trade movement to get the Chamber of Deputies to reform France's protectionist laws became apparent over the summer of 1847 perhaps Bastiat was returning to theoretical issues after a hiatus of a couple of years. In his letter to Cobden of 5 July (Letter 80) 788 he thanks him for purchasing and sending him a 50 volume, a "precious collection," of classic works of Italian political economy (edited by Custodi) 789 and he talks about his own plans to give lectures on economics to students in the law and medical faculties in Paris, and to write his own treatise on what he called "la vraie théorie sociale" (true social theory) the first part of which later became his treatise on political economy, the Economic Harmonies . It is possible that, as Bastiat began thinking about how to explain classical liberal economic ideas to young students in a lecture series, 790 he returned to thinking about the people who had most influenced his own thinking when he was a young man, i.e. Jean-Baptiste Say, Charles Comte, and Charles Dunoyer. As he noted in his "Draft Preface":
We (in the Preface Bastiat is ironically talking to himself) used to say: "It is useful and fortunate that patient and indefatigable geniuses, like Say, concentrated on observing, classifying, and setting out in a methodical order all the facts that make up this fine science. From now on, knowledge can stand securely on this unshakeable base and lift itself to new horizons." How much did we also admire the work of Dunoyer and Comte, who, without ever deviating from the rigorously scientific line drawn by M. Say, mobilize these acquired truths with such felicity in the domains of morality and legislation. 791
The man who gave Comte's eulogy, François Mignet (1796-1884), was a liberal lawyer, journalist, and historian who was an editor of the Courrier français , a magazine which published several of Bastiat's articles in 1846. He was also an important figure in the Academy of Moral and Political Science which had been abolished by Napoléon in 1803 because of the opposition to his rule by many of its members, and then resurrected in 1832 by King Louis Philippe. Several liberals were founding members of the new Academy, including Destutt de Tracy (Philosophy), Charles Comte (Political Economy), Charles Dunoyer (Moral Philosophy), and Mignet (History), and many more were to become members in the coming years. This made the Academy an important institution for the encouragement and spread of liberal scholarship and ideas. Bastiat came into contact with Dunoyer when he was welcomed to Paris by the Political Economy Society in May 1845 (Dunoyer was the Society's president) and then Mignet when he began writing for his magazine the Courrier français in 1846. Both men no doubt used their position in the Academy to assist Bastiat in being elected a "corresponding" (or junior) member of the 4th section (Political Economy) on 24 January, 1846 on the basis of the two books which had appeared since Bastiat's arrival in Paris: his book on Cobden and the League (1845) and the first series of the Economic Harmonies (January 1846).
Bastiat's reflections on Comte focus on the first part of what was to have been his magnum opus in four volumes published after his return to France after his exile in Switzerland and England. Comte originally conceived his project as a multi-part work covering jurisprudence, law, history, anthropology, political theory, and economics. The writing of it was interrupted several times by political events which distracted Comte in 1814, 1820, 1824, and 1830. The work was finally published in two parts, the 4 volume Traité de législation in 1826-27 and the 2 volume Traité de la propriété in 1834. 792 The entire work was conceived as a whole and his plan had been to publish them one after the other between 1826 and 1830 but events again intervened to prevent this from happening. In the Preface Comte states that he wanted to combine a theoretical analysis of jurisprudence and natural law with an empirical and historical study of how law had been created and carried out in practice and to explore its impact on wealth creation:
The double purpose I set myself was to introduce philosophical considerations into the study of the law, and at the same time to introduce into the assessment of legislative or political theories the knowledge which had been acquired in practice. This method of verifying one thing against another, things which had almost always been kept separate, pleased me even more since it was the only way to reconcile a profession which I had adopted by choice, with a taste which had become a passion.
The subtitle he gave the work, with echoes of the titles of both Adam Smith's and Say's great works on economics, gives a better idea of his intentions, "exposition des lois générales suivant lesquelles les peuples prospèrent, dépérissent ou restent stationnaire" (an exposition of the general laws under which nations prosper, perish, or remain in a stationary state). It is also a hint of what Bastiat himself had in mind for his own multi-volume treatise on social theory which went under the working title of Social Harmonies , or Economic Harmonies .
The first part of the book, Traité de législation , was awarded the Prix Montyon from the Académie française in 1828 for its contribution to moral philosophy. 793 Bastiat shared the sentiments of the Academy and mentions the importance of Comte in the development of his ideas in several letters, for example "I refer to M. Charles Dunoyer … together with those (articles) by M. Comte … (who) settled the direction of my thought and even my political actions a long time ago" (Letter 33). 794 So it is not surprising when he states at the end of the essay that a friend told him that, if he were to choose a "desert island" book, it would be this one by Comte. One senses that Bastiat might have agreed with that choice.
TextLife, it has been said, is a tissue of illusions and deceit. This is true, but life also includes a few memories which permeate it like some exquisite perfume.
This was how the day of 30 May 1846 was for me.
Dragged from the depths of the provinces by an unexpected caprice of fortune, I was attending a public session of the Academy of Moral and Political Sciences, for the first time.
Around the chair of the President, Mr. Dunoyer, were all the members of the illustrious company. Opposite, the rostrums, galleries, and amphitheatre were scarcely sufficient to contain the intellectual elite of Paris society.
The permanent secretary was due to give the eulogy on his predecessor, Mr. Charles Comte.
People were anxiously wondering: "How will Mr. Mignet, whatever his talent, succeed in holding the attention of the audience? What is there that is striking about the life of a writer whose every day was taken up by a now forgotten controversy and by detailed work on the philosophy of legislation, a man who was also an upright, conscientious and meticulous journalist, virtuous to the point of brusqueness, a hard-working and profound writer but one who in his work appears to have voluntarily renounced that touch of art which, although it adds nothing to the truth of his ideas and sometimes even undermines it, is nevertheless the sole element adding brilliance, popularity and the power to spread its message to the works of the intellect?"
Nevertheless, Mr. Mignet began his speech. His words, spoken neither too slowly nor too fast, reached the far corners of the hall. He varied his theme with musings at once pertinent and true; he lightened it with judicious interjections of that piquant Attic style whose traditional use is alleged, probably wrongly, to be disappearing in France. His delivery was always clear, his intonation true and conveying every subtlety of the speech and every one of the orator's intentions. For an hour, the audience hung onto every word of this account, so poor in arresting facts but so rich in noble and pure emotion.
Why the fascination? Was it the apposite, elegant and incisive phrases used by the orator, was it his fine diction that held the assembly captive and sent a shiver of enthusiasm rippling along the benches, uniting every heart in a common sentiment of pure joy and rapt admiration?
No. But Mr. Mignet had perceived and was showing everyone the fine side of his subject. The picture he painted was of an upright man, of manly resolution, of athletic vigor, an intrepid defender of public freedoms, an unwavering political journalist whom neither the temptation of corruption, nor threats, nor persecution, nor the appeal of popularity, nor need for rest nor, in short, any human consideration, could lure away from the righteous path mapped out for him by his profound and stubborn sense of his own virtue.
It appeared that this warm picture of such a fine life, contrasting with the selfishness and indifference that characterizes modern times, touched the hearts of all those in the assembly and moved them all the more powerfully given that they might have been expected to have dozed off long since. The audience might have been described as one of Plutarch's, their sensibilities still fresh and innocent, listening to Plutarch recounting the tale of one of the noblest lives of the heroes of antiquity. With what truly French discernment did the auditorium seize and applaud the traits of courage, sacrifice, and proud independence found so abundantly in the journalist's noble career. Each of us went back to the long-gone time of our youth when the orator said:
The time in which Mr. Comte distinguished himself is already long gone. Far from us is the memory of these generous convictions, these dogged struggles, this intrepid devotion, which sparked so many doughty spirits and inspired so much noble conduct. At that time, ideas were believed in with a faith that was fervent and the public good was loved with disinterested passion. These fine beliefs that are the honor of the human intellect, Mr. Comte had in abundance. These strong virtues, which are just as necessary for a nation to remain free as it is to become free, Mr. Comte expressed with straightforward bluntness. 795
So what are we to make of this? That in spite of the sad and discouraging sights all around us, that although we no longer perceive any strongly-held convictions, civic courage, or resistance to corruption, we cannot despair, nevertheless, of a country in which the simple narration of the life of Mr. Comte arouses so much lively and unanimous satisfaction! No, skepticism has not permeated, changed, or debased everything in a place where this anchor of the nation's salvation remains visible, along with the intelligence to honor that which is honorable, and where the power of admiration is still alive!
Two circumstances contributed to adding a touching and almost dramatic interest to this literary solemnity. Behind the orator, the President's chair was occupied by Mr. Dunoyer. Everyone felt that the eulogy by Mr. Mignet and the enthusiasm of the assembly was addressed indirectly to the colleague and friend of Mr. Comte, the person who had shared the same projects, suffered the same persecution, and shown the same devotion. In the first row of the audience could be seen Mr. Comte's four children, clad in mourning for the father whom a premature death through overwork and persecution had taken from them. 796 After ten long years, they were finally receiving the sole but precious inheritance that a man of this caliber can leave: a solemn homage of admiration made to his memory by an eloquent speaker and sanctioned by its favorable and enthusiastic reception by an enlightened audience.
However, I must say that, while the honorable permanent secretary gave a fair account of the man with regard to his actions, character, courage, and virtues, for me he did not allot the author his true stature. Perhaps in this connection his verdict has been too influenced by the opinion of the general public, who appear not to have appreciated the philosophic value of Mr. Comte's work adequately, very far from it. We might understand this judgment if it related solely to style. I have already said that in a work that deals, in scientific fashion, with the huge canvases on which Rousseau and Montesquieu spread the hues of their brilliant imagination, Mr. Comte does not appear to have taken the trouble to highlight his thoughts through the vividness of form, the variety of tone, the unexpectedness of the antitheses, and all the resources of studied rhetoric. It can be imagined that a man such as described by Mr. Mignet might have rejected these vain ornaments which, to his way of thinking, are traps for the reader if not for the writer. The closer Mr. Comte came to simplicity of expression, the further he believed that he was keeping his work away from possible error, and Truth was the sole object of his worship, the object to which he was prepared to sacrifice much more than his literary reputation, if need be.
Nonetheless, we should not believe that his work is devoid of eloquence. "Although he wished to apply a rigorous and dry analytic method", said Mr. Mignet, "Mr. Comte was too resolute in spirit and his soul too ardent for him to set out the long journeys made by the human race dispassionately, and I praise him for this." 797 And elsewhere, "Under the guise of a somewhat harsh attitude and slightly cold appearance was a heart of gold, a warm soul and the lofty sentiments and lively convictions that can be seen both in his writings and his life." 798
But if Mr. Comte often rises to eloquence (taking this word in its usual meaning), when he castigates injustice and the abuse of force in lively language, 799 I am bold enough to say that eloquence of quite a different nature that is just as true presides over all the pages of his writings. Reading his work, the reader always senses the forming of light in his mind. He feels lost in admiration of the harmonious simplicity of the laws 800 set out by the author, and this sentiment is all the more vivid in that it is always allied with that of certainty. For my part, I know of no trick of rhetoric capable of filling the soul with such delicious emotions. Is there not eloquence, the truest of all forms of eloquence, in the simple, clear exposition of the harmony that governs the movement of the heavenly bodies? When a subject has beauty and grandeur, the more the author succeeds in concentrating your attention on the picture and making himself invisible, the more, I am bold enough to say, does he attain the pure sources of art.
Mr. Comte has one single aim: to lay things out. However, he lays out the consequences of human action so clearly that by addressing only the mind he speaks to the heart. Few writers communicate such a sincere level of admiration for what is good and such a great hatred for injustice and tyranny to the soul. Not that he declaims; he is content to describe. But the impression that he is not acting as a counselor comes from his prose and I even believe that, if true eloquence can be felt on every one of his pages, it is because declamation is strictly banished from them. When the reader clearly sees the sequence of cause and effect, positive and negative feelings arise inextinguishably in his mind without his knowing and without its being necessary to tell him what ought to be hated and what loved.
I will not discuss whether the Treatise on Legislation ought to have been conceptualized on a more methodical basis. When you have read it you understand that it is just the foreword of an immense work interrupted by death and forever lost to the ardent souls of those who love the human race.
What I can say is this: I do not know of any book that makes one think more, which affords one newer and more fertile views both of man and society, or which produces in one to the same extent a feeling for the evidence. In view of the unjust way that young students appear to have abandoned this magnificent monument of genius, I would perhaps not have the courage to say such things aloud, knowing how careful I have to be of my own actions, if I were not able to rally to this opinion the patronage of two authorities; one is the Academy, which has acclaimed Mr. Comte's work, and the other a man of the highest merit to whom I put the question that book-lovers often ask each other: If you were condemned to solitude and were allowed only one modern work, which would you choose? The Treatise on Legislation by Mr. Comte, he told me, for if this is not the book that has the most in it, it is the one that most makes you think.
785 See the Glossary entry on "Dunoyer."
786 A revised 3rd edition of Say's Traité was published in 1817.
787 François-Auguste-Alexis Mignet, Notices et portraits historiques et littéraires. Troisième édition. (Paris: Charpentier, 1854), Tome II. "Charles Comte" (30 mai, 1846), pp. 83-114.
788 Letter 80. Paris, 5 July 1847. To Richard Cobden, CW1, p. 129.
789 Economisti classici italiani. Scrittori classici italiani di economia politica. 50 vols. Edited by Pietro Custodi. (Milan: G. G. Destefanis, 1803-16). Among the volumes were works by Cesare Beccaria (1738-94), Gaetano Filangieri (1752-88), Ferdinando Galiani (1728-87), and Pietro Verri (1728-97).
790 On Bastiat's interest in appealing to the next generation and countering the spread of socialist ideas among them, see his introduction "To the Youth of France" in Economic Harmonies and his "Draft Preface" also probably written in mid-1847. "To the Youth of France" in Frédéric Bastiat, Economic Harmonies (FEE edition); and "Draft Preface to Economic Harmonies" in CW1, p. 317.
791 "Draft Preface," CW1, pp. 316-20.
792 Charles Comte, Traité de législation, ou exposition des lois générales suivant lesquelles les peuples prospèrent, dépérissent ou restent stationnaire, 4 vols. (Paris: A. Sautelet et Cie, 1826-27); Traité de la propriété , 2 vols. (Paris: Chamerot, Ducollet, 1834).
793 Mignet, p. 278.
794 Letter 33 to Horace Say (Mugron, 24 Nov. 1844), CW1, pp. 53-54; Letter 41 to Félix Coudroy (Paris, 18 June 1845), CW1, p. 67;. Letter 42 to Félix Coudroy (Paris, 3 July 1845), CW1, p. 69; Letter 43 to Félix Coudroy (London, July 1845), CW1, p. 71.
795 Mignet, p. 279.
796 Bastiat relates in a letter that Comte's son Hippolyte, approached him about looking after his father's papers perhaps in the hope Bastiat might edit them for publication. See, Letter 42, CW1, pp. 69, and Letter 43, p. 71.
797 Mignet, p. 278.
798 Mignet, p. 280.
799 A good example of this is the opening passages of Traité de legislation , Book V, CHAPITRE XV. "De l'influence de l'esclavage domestique sur l'esprit et la nature du gouvernement" (On the Influence of Domestic Slavery of the Spirit and Nature of Government) where Comte points out the moral and legal double standards and hypocrisy of slave owners.
800 Bastiat uses the word "harmonious" twice in this passage which suggest the idea was something he learnt from reading Comte: "l'harmonieuse simplicité des lois" (the harmonious simplicity of the laws) and "l'harmonie qui préside aux mouvements des corps célestes" (the harmony that governs the movement of the heavenly bodies).
T.144 (1847.07.25) "High Prices and Low Prices" (LE, July 1847)↩
SourceT.144 (1847.07.25) "High Prices and Low Prices" (Cherté, bon marché), Le Libre-Échange, 25 July 1847, no. 35, pp. 273-74; also ES2.5. [OC4, pp. 163-73.] [CW3 - ES2.5]
V. High Prices and Low Prices254 [25 July 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Cherté, bon marché" (High Prices and Low Prices) [Le Libre-Échange 25 July, 1847 with supplement from 1 August 1847].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 163-73.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
I think I have to put forward to the reader a few remarks that are, alas, theoretical, on the illusions that arise from the words, high prices and low prices. At first sight, I realize that these remarks will be taken to be somewhat subtle, but subtle or not, the question is to determine whether they are true. Now I think they are perfectly true, and above all just the thing to make the many people who sincerely believe in the effectiveness of protectionism, engage in a bit of reflection.
Whether we are partisans of freedom or defenders of trade restriction, we are all reduced to using the words high prices and low prices. Partisans of freedom declare themselves in favor of things being cheap with an eye on the interests of consumers; defenders of restriction advocate high prices, taking care of producers above all. Other people intervene saying: "Producers and consumers are one and the same", which leaves up in the air the question of knowing whether the law ought to pursue low prices or high ones.
At the center of this conflict, there appears to be just one path for the law to take, and that is to allow prices to find their level naturally. However, in this case the sworn enemies of laissez faire appear.255 Above all they want the law to act, even if they do not know in which direction it should act. No decision having been reached, it would seem to be up to the person who wants to use the law to generate artificially high prices or unnaturally low ones, to set out the reason for his choice and convince others of its validity. The onus probandi [burden of proof] is exclusively on his shoulders. From which it follows that freedom is always deemed to be good until proved otherwise, since leaving prices to establish themselves naturally constitutes freedom.
However, the roles have changed. The partisans of high prices have caused their model to triumph, and it is up to the defenders of natural prices to prove the worth of theirs. Both sides argue using just two words. It is thus essential to know what these words encompass.
Let us note first of all that there are several facts which are likely to disconcert the champions of both camps.
To make things expensive, those in favor of trade restriction obtained protective duties, and low prices, which are inexplicable to them, have come to dash their hopes.
To get cheap things, free traders have on occasion secured the triumph of freedom and to their great astonishment, the result has been rising prices.
For example: In France, in order to stimulate agriculture, foreign wool has been subjected to a duty of 22 percent and what has happened is that French wool has been sold at a lower price after this measure than before.
In England, to relieve consumers, foreign wool was exempted and finally freed from tax, and the result has been that local wool has been sold more expensively than ever.
And these are not isolated facts, for the price of wool does not have a nature of its own which exempts it from the general law governing prices. This same fact has recurred in all similar circumstances. Against all expectations, protection has instead led to a fall and competition to an increase in the prices of products.
This being so, confusion in the debate reached its height, with protectionists saying to their opponents: "The low prices you boasted about to us have been achieved by our system." And their opponents replied: "The high prices you found so useful have been generated by freedom."256
Would it not be amusing to see low prices becoming the watchword in Rue Hauteville and high ones lauded in the Rue Choiseul257?
Obviously, there is a misunderstanding in all this, an illusion that has to be destroyed. This is what I will try to do.
Let us imagine two isolated nations, each made up of one million inhabitants. Let us agree that, all other things being equal, there is in one of them double the quantity of all sorts of things than in the other, twice as much wheat, meat, iron, furniture, fuel, books, clothes, etc.
We would agree that the first of these nations would be twice as rich.
However, there is no reason to assert that nominal prices258 would be different in these two nations. They might even be higher in the richer. It is possible that in the United States everything is nominally more expensive than in Poland and that people there are nevertheless better supplied with everything, from which we can see that it is not the nominal price of products but their abundance that constitutes wealth. When, therefore, we want to compare trade restriction and freedom, we should not ask ourselves which of the two generates low or high prices, but which of the two brings abundance or scarcity.
For you should note this: products are traded for one another, and a relative scarcity of everything and a relative abundance of everything leave the nominal price of things exactly at the same point, but not the condition of people.
Let us go into the subject in greater detail.
When increases and decreases in duties are seen to produce such opposite effects to those expected, with lower prices often following the imposition of a tax and higher prices sometimes following the removal of a tax, political economy has had to find an explanation for a phenomenon that overturned preconceived ideas, since whatever we say, any science that is worthy of the name is only the faithful exposition and accurate explanation of facts.
Well, the one we are highlighting here is very well explained by a circumstance that should never be lost to sight.
It is that high prices have two causes and not one.
This is also true of low prices.259
It is one of the most accepted points of political economy that price is determined by the state of Supply compared to that of Demand.
There are therefore two terms that affect price: Supply and Demand. These terms are essentially variable. They may combine in the same direction, in opposite directions and in infinite proportions. This leads to an inexhaustible number of price combinations.
Prices rise either because Supply decreases or because Demand increases.
They drop either because Supply increases or because Demand decreases.
This shows that high prices have two natures and so do low prices.
There is a bad sort of high prices, that resulting from a decrease in Supply, since this implies scarcity and privation (such as that experienced this year for wheat),260 and there is a good sort of high prices, resulting from an increase in demand, since this presupposes an increase in the level of general wealth.
In the same way, there is a desirable sort of low prices arising from abundance and a disastrous version resulting from a decrease in demand and the destitution of customers.
Now, note this: trade restriction tends to trigger simultaneously the bad sorts both of high and low prices; bad high prices in that it decreases Supply, and this is even its expressed aim, and the bad sort of low prices in that it also decreases Demand, since it gives a wrong direction to capital and labor and burdens customers with taxes and hindrances.
With the result that, with regard to price, these two trends cancel one another out, and this is why this system, by restricting Demand at the same time as Supply, does not even in the long run achieve the high prices which are its aim.
But, with regard to the condition of the people, they do not cancel one another out. On the contrary, they contribute to making it worse.
The effect of freedom is just the opposite. Its general result may not be the low prices it promised either, for it too has two trends, one toward desirable low prices through the expansion of Supply or abundance, the other toward noticeably higher prices through the increase of Demand or general wealth. These two trends cancel one another out with regard to nominal prices, but they combine with regard to improving the condition of men.
In a word, under protectionism and to the extent that it is put into effect, people regress to a state in which both Supply and Demand weaken; under free trade, they progress to a state in which these develop equally without the nominal price of things being necessarily affected. This price is not a good measure of wealth. It may well remain the same whether society is descending into the most abject poverty or rising towards greater prosperity.
May we be allowed to apply this doctrine in a few words?
A farmer in the South-East of France thinks that he has struck it rich because he is protected by duties against competition from abroad. He is as poor as Job, but this does not matter; he is no less convinced that protection will make him rich sooner or later. In these circumstances, if, as the Odier Committee 261 has done, he is asked the following question worded thus:
"Do you or do you not wish to be subjected to foreign competition?" His instinctive reaction is to reply: "No." And the Odier Committee gives this response an extremely enthusiastic reception.
However, we must delve a bit more deeply into the matter. Doubtless, foreign competition and even competition in general is always a nuisance, and if a branch of activity were able to break free of it on its own, it would do good business for a time.
But protection is not an isolated favor, it is a system. If it tends to produce scarcity of wheat and meat, to the advantage of this farmer, it also tends to produce scarcity of iron, cloth, fuel, tools, etc. to the advantage of other producers, in other words, the scarcity of everything.
Well, if the scarcity of wheat works toward making it more expensive by decreasing supply, the scarcity of all the other objects for which wheat is traded works toward lowering its price by decreasing demand, with the result in a word that it is by no means certain that wheat is more expensive by one centime than under a free regime. The only thing that is certain is that since there is less of everything in the country each person must be less well provided with everything.
The farmer ought well to be asking himself whether it would not better for him for a little wheat or meat to be imported from abroad and on the other hand for him to be surrounded by a prosperous population able to consume and pay for all sorts of agricultural products.
Imagine that there is a certain départment in which men are covered in rags, live in hovels and eat chestnuts. How do you expect farming to flourish there? What do you make the land produce in the reasonable hope of receiving a fair return? Meat? Nobody eats it. Milk? People drink only water from springs. Butter? That is a luxury. Wool? People do without it as much as they can. Does anyone think that all these objects of consumption can be abandoned by the masses without this abandonment having a downward effect on prices at the same time as trade protection acts to raise them?
What we have said with reference to a farmer can also be applied to a manufacturer. The manufacturers of cloth insist that foreign competition will decrease the price by increasing Supply. Maybe, but will these prices not be raised by an increase in Demand? Is the consumption of cloth a fixed and invariable quantity? Is each person as well provided for as he could and should be? And if general wealth increased through the abolition of all these taxes and restrictions, would not the population instinctively use it to clothe themselves better?
The question, the eternal question, is therefore not to ascertain whether protection favors this or that particular area but whether, after all costs and benefits have been calculated, restriction is, by its very nature, more productive than freedom.
But nobody dares to support this. This even explains the admission that we are constantly being given: "You are right in principle".
If this is so, if restriction benefits each particular activity only by doing greater harm to general wealth, let us therefore understand that prices themselves, taking only these into consideration, express a relationship between each particular productive activity and production in general, between Supply and Demand, and that in accordance with these premises, this remunerative price, the aim of protection, is more damaged than favored by it.262
Supplement
Under the title High Prices and Low Prices we published an article, which generated the following two letters. We follow them with a reply.
Dear Editor,
You are upsetting all my ideas. I was producing propaganda in favor of free trade and found it very convenient to highlight low prices! I went everywhere saying: "Under freedom, bread, meat, cloth, linen products, iron and fuel will decrease in price." That displeased those who sell these things but pleased those who buy them. Now you are casting doubt on the claim that free trade will result in low prices. But what use will it be, then? What will the people gain if foreign competition, which might hurt their sales, does not help them in their purchases?
Dear Free Trader,
Please allow me to tell you that you have only half-read the article that generated your letter. We said that free trade acted in exactly the same way as roads, canals and railways, and like everything that facilitates communications and destroys obstacles. Its initial tendency is to increase the abundance of the article freed from duty and consequently to lower its price. But since at the same time it increases the abundance of all the things that are traded for this article, it increases demand for it and its price rises as a result of this aspect. You ask us what the people will gain. Let us suppose that they have a set of scales with several trays, in each of which they have for their own use a certain quantity of the objects you have listed. If a small quantity of wheat is added to a tray it will go down, but if you add a little woolen cloth, a little iron and a little fuel to the other trays, the balance will be maintained. If you look at the evil consequence only, nothing will have changed. If you look at the people, you will see that they are better fed, better clothed and better heated.
Dear Editor,
I am a manufacturer of woolen cloth and a protectionist. I must admit that your article on high prices and low prices has given me food for thought. There is a certain plausibility there that needs only to be properly proved to achieve a conversion.
Dear Protectionist,
We say that your restrictive measures aim at an iniquitous result, artificially high prices. But we do not say that they always achieve the hopes of those who advance them. They certainly inflict on consumers all the harm of high prices, but it is not clear that they achieve any benefit for producers. Why? Because although they decrease Supply they also decrease Demand.
This proves that there is a moral force in the economic arrangement of this world, a vis medicatrix, a healing power which ensures that in the long run unjust ambition is confronted with disappointment.
Please note, Sir, that one of the elements of the prosperity of each particular branch of production is general wealth. The price of a house does not depend only on what it cost but also on the number and fortune of its tenants. Do two houses that are exactly alike necessarily have the same price? Certainly not, if one is situated in Paris and the other in Lower Brittany. We should never talk about price without taking account of location and note well that there is no attempt that is more vain than that of wishing to base the prosperity of certain parts on the ruin of the whole. This is nevertheless to what restrictive regimes aspire.
Competition has always been and will always be unfortunate to those who suffer from it. For this reason, we have always seen, in every age and place, men striving to escape it. We know (as do you, perhaps) of a municipal authority in which resident traders wage a bitter war against peddlers. Their missiles are city taxes on the movement of goods, fees to be able to set up their stalls in the market, fees to display their goods, road and bridge tolls, etc. etc.
Just consider what would have become of Paris, for example, if this war had been successful.
Let us suppose that the first shoemaker who set up shop there had succeeded in routing all the others, and that the first tailor, the first mason, the first printer, the first watchmaker, the first hairdresser, the first doctor or the first baker had been as successful. Paris would still be a village of 1,200 to 1,500 inhabitants today. This has not happened. Everyone (except for those you are still chasing away) has come to exploit this market, and this is exactly what has made it grow. This has been nothing but a long series of upsets for the enemies of competition and, through one upset after another, Paris has become a town of one million inhabitants. General wealth has doubtless gained from this, but has the individual wealth of shoemakers and tailors lost out? In your eyes, this is the question. As competitors arrived, you would have said: "The price of boots will decrease". Has this been so? No, for while Supply has increased, so has Demand.
This will also be true for cloth, Sir; let it come in.263 You will have more competitors, that is true, but you will also have more customers, and above all customers that are richer. What then! Have you never thought of this during the winter on seeing nine-tenths of your fellow citizens deprived of the cloth you make so well?
This is a very long lesson to learn. Do you want to prosper? Then let your customers prosper.
But when it has been learnt, everyone will seek his own benefit in the general good. Then jealousies between individuals, towns, provinces and nations will no longer trouble the world.
Endnotes254 (Paillottet's note) This chapter is the reproduction of an article which appeared in the issue of Le Libre Echange dated 25th July 1847.
255 See the glossary entry on "Laissez-faire."
256 (Bastiat's note) Recently, Mr. Duchâtel, who in the past demanded freedom with a view to cheap prices, told the Chamber: "It would not be difficult for me to prove that protection results in low prices." [Charles Marie Tanneguy, comte Duchâtel (1803-67) was a conservative with liberal sympathies who was Minister of Commerce (1834-36) during the July Monarchy. See the glossary on "Tanneguy Duchâtel."]
257 Bastiat is making a play on words here. The protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment), led by Antoine Odier and Pierre Mimerel with their journal Le Moniteur industriel, had its headquarters on the Rue Hauteville. The "Association pour la liberté des échanges" (Free Trade Association) which Bastiat helped found and who edited its journal Le Libre-Échange, had its offices on the Rue Choiseul. As "haut" means "high" in French, Bastiat is saying playfully that perhaps "low" prices would become the watchword in "Highville Street" (Rue Hauteville ) and high prices would be lauded in the Rue Choiseul. See the glossary entries on "Free Trade Association" and "Association for the Defense of National Employment."
258 Bastiat uses the term "prix absolus" which we have translated as "nominal" or money prices.
259 (Paillottet's note) In the speech he gave on 29th September 1846 in the Montesquieu Hall, the author used a striking image to present a demonstration of the same truth. See this speech in Volume 2. [See, OC, vol. 2, Libre-Échange, pp. 238-46, "No. 43. Second Discours," [Paris, Montesquieu Hall, 29 September 1846] Paillottet says in a note that he did not have the complete text of this speech but drew upon part of it which was published in JDE Oct 1846. [FB had 2 articles published in JDE Oct. 1846: "De la population," pp. 217-34; À M. de Lamartine (à propos des subsistances)," pp. 255-70.] ???]
260 Crop failures in 1846-1847 caused considerable hardship and a rise in food prices in 1847 across Europe. Some historians believe this was a contributing factor to the outbreak of revolution in 1848. The average price of wheat in France was 18 fr. 93 c. per hectolitre in 1845; which rose to 23 fr. 84 c. in 1846 (which had a poor harvest). Prices were even higher in the last half of 1846 and the first half of 1847 when the shortage was most accutely felt. In December 1846 it rose to 28 fr. 41 c; and reached a maximum of 37 fr. 98 c. in May 1847. The average price for the period 1832-1846 had been 19 fr. 5 c. per hectolitre. The lowest average price reached between 1800 and 1846 was 14 fr. 72 c. in 1834. See AEPS, pour 1848 (Paris: Guillaumin, 1848), pp. 179-80. See the glossary entry on "The Irish Famine and the Failure of French Harvests 1846-47."
261 Antoine Odier (1766-1853) was a Swiss-born banker and manufacturer who was a Deputy (1827-37), president of the Chamber of Commerce of Paris and a leading member of the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment) on whose Central Committee he served as president (hence it was sometimes called "the Odier Committee" or the "Mimerel Committee" for short. See the glossary entries on "Odier," "Association for the Defense of National Employment," and "Mimerel Committee."
262 (Paillottet's note) In the issue of Le Libre Echange dated 1st August 1847, the author gave an explanation on this subject, which we consider useful to reproduce here.
263 Bastiat uses the express "laissez-le entrer" (let it enter) which is very similar to the Economists' general policy of "laissez-faire." See the glossary entry "Laissez-faire."
T.145 (1847.08.??) "Fourth Speech given in Lyon"↩
SourceT.145 (1847.08.??) "Fourth Speech given in Lyon" (Quatrième discours, à Lyon). Early Aug., FB papers. [OC2.45, pp. 260-73.] [CW6]
Text(insert HTML of file here)
T.146 (1847.08.??) "Fifth Speech given in Lyon"↩
SourceT.146 (1847.08.??) "Fifth Speech given in Lyon" (Cinquième discours, à Lyon). Aug., FB papers. [OC2.46, pp. 273-93.] [CW6]
Text(insert HTML of file here)
T.147 (1847.08.??) "Sixth Speech given in Marseilles"↩
SourceT.147 (1847.08.??) "Sixth Speech given in Marseilles" (Sixième discours, à Marcheille). Late Aug., FB papers. [OC2.47, pp. 293-311.] [CW6]
Text(insert HTML of file here)
T.148 (1847.08.15) "A Letter from M. F. Bastiat: The Three Chief Accusations made by the journal L'Atelier" (JDE, Aug. 1847)↩
SourceT.148 (1847.08.15) "A Letter from M. F. Bastiat: The Three Chief Accusations made by the journal L'Atelier" (Lettre de M. F. Bastiat: Les trois chefs d'accusation du journal l'Atelier), Journal des Économistes, T. XVIII, no. 69, Aug. 1847, p. 68-71. Dated in JDE "Gray, 28 July, 1847". In OC2 it is dated 12 Sept., 1847. [OC2.23, pp. 124-31.] [CW6]
Text(insert HTML of file here)
T.149 (1847.09) "Draft Preface for the Harmonies"↩
SourceT.149 (1847.09) "Draft Preface for the Harmonies" (Projet de préface pour les Harmonies). Probably written Fall or late 1847. [OC7.73, pp. 303-9.] [CW1.2.1.4, pp. 316-20.]
Editor's NoteAccording to Paillottet, this draft, in the form of a letter to the author, was roughed out by him toward the end of 1847.
TextSo the worst has happened; you have left our village. You have abandoned the fields you loved, the family home in which you enjoyed such total independence, your old books which were amazed to slumber negligently on their dusty shelves, the garden in which on our long walks we chatted endlessly de omni re scibili et quibusdam aliis,4 this corner of the earth that was the last refuge of so many beings we loved and where we went to find such gentle tears and such dear hopes. Do you remember how the root of faith grew green again in our souls at the sight of these cherished tombs? With what proliferation did ideas spring to our minds inspired by these cypresses? We had barely given thought to them when they came to our lips. But none of this could retain you. Neither these good ordinary country folk accustomed to seeking decisions in your honest instincts rather than in the law, nor our circle so fertile in quips that two languages were not enough for them and where gentle familiarity and long-standing intimacy replaced fine manners, nor your cello which appeared to renew constantly the source of your ideas, nor my friendship, nor that absolute ruler over your actions and your waking hours: your studies, perhaps your most precious assets. You have left the village and here you are in Paris, in this whirlwind where as Hugo says:
. . . . . . .
[317]Frédéric, we are accustomed to speaking to each other frankly. Very well! I have to tell you that your resolution surprises me, and what is more, I cannot approve of it. You have let yourself be beguiled by the love of fame, I do not go so far as to say glory and you know very well why. How many times have we not said that from now on glory would be the prize only of minds of an immense superiority! It is no longer enough to write with purity, grace, and warmth; ten thousand people in France do that already. It is not enough to have wit; wit is everywhere. Do you not remember that, when reading the smallest article, so often lacking in good sense and logic but almost always sparkling with verve and rich in imagination, we used to say to one another, “Writing well is going to become a faculty common to the species, like walking and sitting well.” How are you to dream of glory with the spectacle you have before your eyes? Who today thinks of Benjamin Constant or Manuel? What has become of these reputations which appeared imperishable?
Do you think you can be compared to such great minds?
Have you undertaken the same studies as they? Do you possess their immense faculties? Have you, like them, spent your entire life among exceptionally brilliant people? Have you the same opportunities of making yourself known, or the same platform; are you surrounded when need arises with the same comradeship? You will perhaps say to me that if you do not manage to shine through your writings you will distinguish yourself through your actions. I say, look where that approach has left La Fayette’s reputation. Will you, like him, have your name resound in the old world and the new for three quarters of a century? Will you live through times as fertile in events? Will you be the most outstanding figure in three major revolutions? Will it be given to you to make or bring down kings? Will you be seen as a martyr at Olmultz and a demigod at the Hôtel de Ville? Will you be the general commander of all the National Guard regiments in the kingdom? And should these grand destinies be your calling, see where they end: in the casting among nations of a name without stain which in their indifference they do not deign to pick up; in their being overwhelmed with noble examples and great services which they are in a hurry to forget.
No, I cannot believe that pride has so far gone to your head as to make you sacrifice genuine happiness for a reputation which, as you well know, is not made for you and which, in any case, will be only fleeting. It is not you who would ever aspire to become the great man of the month in the newspapers of today.
[318]You would deny your entire past. If this type of vanity had beguiled you, you would have started by seeking election as a deputy. I have seen you stand several times as a candidate but always refuse to do what is needed to succeed. You used constantly to say, “Now is the time to take a little action in public affairs, where you read and discuss what you have read. I will take advantage of this to distribute a few useful truths under the cover of candidacy,” and beyond that, you took no serious steps.
It is therefore not the spur of amour-propre that drove you to Paris. What then was the inspiration to which you yielded? Is it the desire to contribute in some way to the well-being of humanity? On this score as well, I have a few remarks to make.
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.
But in fact, are you entering the lists with the weapons appropriate for your fame, if that is what you are dreaming of, as well as for the success of your cause itself? What are you concerned with, I mean totally concerned with? A proof, and the solution to a single problem, namely: Does trade restriction add to the profits column or the losses column in a nation’s accounts? That is the subject on which you are exhausting your entire mind! Those are the limits you have set around your great question! Pamphlets, books, brochures, articles in newspapers, speeches, all of these have been devoted to removing this gap in our knowledge: will freedom give the nation one hundred thousand francs more or less? You seem very keen on keeping from the light of day any knowledge which does not directly support this preemptive postulate. You seem set on extinguishing in your heart all these sacred flames which a love for humanity once lit there.
Are you not afraid that your mind will dry up and wither with all this analytical work, this endless argumentation focused on an algebraic calculation?
[319]Remember what we so often said: unless you pretend that you can bring about progress in some isolated branch of human knowledge or, rather, unless you have received from nature a cranium distinguished only by its imperious forehead, it is better, especially in the case of mere amateur philosophers like us, to let your thinking roam over the entire range of intellectual endeavor rather than enslave it to the solving of one problem. It is better to search for the relationship of branches of science to each other and the harmony of social laws than to wear yourself out shedding light on a doubtful point at the risk of even losing the sense of what is grand and majestic in the whole.
This was the reason our reading was so various and why we took such care in shaking off the yoke of conventional verdicts. Sometimes we read Plato, not to admire him according to the faith of the ages but to assure ourselves of the radical inferiority of society in antique times, and we used to say, “Since this is the height to which the finest genius of the ancient world rose, let us be reassured that man can be perfected and that faith in his destiny is not misguided.” Sometimes we were accompanied on our long walks by Bacon, Lamartine, Bossuet, Fox, Lamennais, and even Fourier. Political economy was only one stone in the social edifice we sought to construct in our minds, and we used to say: “It is useful and fortunate that patient and indefatigable geniuses, like Say, concentrated on observing, classifying, and setting out in a methodical order all the facts that make up this fine science. From now on, intelligence can stand securely on this unshakeable base and lift itself to new horizons.” How much did we also admire the work of Dunoyer and Comte, who, without ever deviating from the rigorously scientific line drawn by M. Say, mobilize these acquired truths with such felicity in the domains of morality and legislation. I will not hide from you that sometimes, in listening to you, it seemed to me that you could in your turn take this same torch from the hands of your ancestors and cast its light in certain dark corners of the social sciences, above all in those which foolish doctrines have recently plunged into darkness.
Instead of that, there you are, fully occupied with illuminating a single one of the economic problems that Smith and Say have already explained a hundred times better than you could ever do. There you are, analyzing, defining, calculating, and distinguishing. There you are, scalpel in hand, seeking out what there is of worth in the depths of the words price, utility, high prices, low prices, imports, and exports.
[320]But finally, if it is not for you yourself, and if you do not fear becoming dazed by the task, do you think you have chosen the best plan to follow in the interest of the cause? Peoples are not governed by equations but by generous instincts, by sentiment and sympathy. It was necessary to present them with the successive dismantling of the barriers which divide men into mutually hostile communities, into jealous provinces, or into warring nations. It was necessary to show them the merging of races, interests, languages, ideas, and the triumph of truth over error, witnessed in the intellectual shock it effects, with progressive institutions replacing the regime of absolute despotism and hereditary castes, wars eliminated, armies disbanded, moral power replacing physical force, and the human race preparing itself through unity for the destiny reserved for it. This is what would have inflamed the masses, and not your dry proofs.
In any case, why limit yourself? Why imprison your thoughts? It seems to me that you have subjected them to a prison regime of a single crust of dry bread as food, since there you are, chewing night and day on a question of money. I love freedom of trade as much as you do. But is all human progress encapsulated in that freedom? In the past, your heart beat for the freeing of thought and speech which were still bound by their university shackles and the laws against free association. You enthusiastically supported parliamentary reform and the radical division of that sovereignty, which delegates and controls, from the executive power in all its branches. 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. But you act like a mechanic who makes a virtue of explaining an isolated part of a machine in the smallest detail, not forgetting anything. The temptation is strong to cry out to him, “Show me the other parts; make them work together; each of them explains the others. . . .”
“About every knowable matter and certain other things.”
T.150 (1847.09.05) "A Complaint" (LE, Sept. 1847)↩
SourceT.150 (1847.09.05) "A Complaint" (Remonstrance), Le Libre-Échange, 5 Sept. 1847, no. 41, p. 328. [OC2, pp. 415-18.] [CW3 - ES3.9]
IX. A Protest [30 August 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Remontrance" (A Protest) [30 August 1847, 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. 415-18.
- Previous translation: [none]
Auch,551 30 August 1847
My dear colleagues,
When fatigue or a lack of vehicles delays me in a town, I do what every conscientious traveler ought to do, I visit its monuments, churches, promenades and museums.
Today, I went to see the statue raised to Mr. d'Etigny552, the Intendant of the subdivision of Auch553, by the enlightened gratitude of the good inhabitants of this region. This great administrator, and I may say this great man, crisscrossed the province entrusted to his care with magnificent roads. His memory is blessed for this but not his person, since he suffered opposition that was not always expressed in verbal or written complaint. It is said that, in workshops, he was often reduced to using the extraordinary strength with which nature had endowed him. He told country folk: "You curse me, but your children will bless me." A few days before his death, he wrote the following words, which recall those of the founder of our religion, to the general controller: "I have made many enemies, God has given me the grace to pardon them for they do not yet know the purity of my intentions."
Mr. d'Etigny is represented holding a scroll of paper in his right hand and another under his left arm. It is natural to think that one of these scrolls is the plan of the network of roads with which he has endowed the region. But to what can the other scroll refer? By rubbing my eyes and glasses, I thought I could read the word A PROTEST. Thinking that the maker of the statue, in a spirit of satire, or rather to give men a salutary lesson, wished to perpetuate the memory of the opposition this region had made to the creation of roads, I rushed over to the library archives and there found the document to which the artist had probably wished to allude. It is in the regional dialect; I am producing here a faithful translation for the edification of Le Moniteur industriel and the protectionist committee.554 Alas! They have invented nothing. Their doctrines flourished nearly a century ago.555
A Protest
My Lord,
The bourgeois and villagers of the subdivision of Auch have heard mention of the project you have conceived of opening communication routes in all directions. They come, with tears in their eyes, to beg you to examine closely the sorry position in which you are going to place them.
Have you thought about this, My Lord? You want to put the subdivision of Auch into communication with the surrounding regions! What you are contemplating will, however, lead to our certain ruin. We will be flooded with all sorts of products. What do you think will happen to our national labor in the face of the invasion of foreign products, which you will encourage by the opening of your roads? Right now, impassable mountains and precipices protect us. Our production has developed in the shade of this protection. We export scarcely anything, but at least our market is reserved and assured for us. And now you want to hand it over to greedy foreigners! Do not talk to us about our activity, our energy, our intelligence and the fertility of our land. For, My Lord, we are in all ways and in all regards hopelessly inferior. Note that, in fact, if nature has favored us with land and a climate that allow a great variety of products to be made, there is none for which a neighboring region does not have even better conditions. Can we compete with the plains of the Garonne for the cultivation of wheat? With the Bordeaux region for the production of wine? With the Pyrénées for the raising of cattle? With Les Landes of Gascony, where the land has no value, for the production of wool? You must see that if you open up communications with all these regions, we will have to endure a deluge of wine, wheat, meat and wool. All these things are genuine wealth, but only on condition that they are the product of national production. If they were the product of foreign production, national employment would dry up and wealth with it.556
My Lord, let us not try to be wiser than our fathers. Far from creating new avenues of circulation for goods, they very advisedly blocked those that already existed. They were careful to station Customs officers around our borders to repel competition from perfidious foreigners. How irresponsible we would be to encourage this competition!
Let us not try to be wiser than nature. It has placed mountains and chasms between the various settlements of men in order for each one to be able to work peacefully, sheltered from all external rivalry. To cross this mountain range and fill in these chasms is to inflict damage that is similar to and even identical to what would result from abolishing Customs posts. Who knows but that your current plan will not some day give rise to this disastrous thought in the mind of some theoretician! Be careful, My Lord, the logic is implacable. If once you accept that ease of communication is a good thing in itself, that in any case, even if it upsets people in some way, it nevertheless has more advantages than disadvantages on the whole, if you accept this, then Mr. Colbert's fine system will be ruined.557 Well, we challenge you to prove that your planned roads are based on something other than this absurd supposition.
My Lord, we are not at all theoreticians or men of principle; we do not have any pretension to genius. But we speak the language of common sense. If you open our region to all forms of external rivalry, if you facilitate the invasion of our markets by wheat from the Garonne, wine from Bordeaux, flax from the Béarn558, wool from Les Landes or steers from the Pyrénées, it is as plain as daylight to us how our cash will be exported, how our work will dry up, how our source of wages will disappear and how our property will lose its value. And, as for the compensations you promise us, they are, allow us to say this, highly questionable; you have to rack your brains to see them.
We therefore dare to hope that you will leave the region of Auch in the happy isolation in which it is, for if we succumb to the combat against dreamers who want to establish easy commerce we can clearly see that our sons will have to endure another form of struggle against other dreamers who would like to establish the freedom to trade as well.559
Endnotes551 Auch is the main city of the department of Le Gers, in the eastern part of the Département of Les Landes where Bastiat lived and which he represented in the Chamber. It is the historical capital of the old province of Gascogny.
552 Antoine Megret d'Etigny (1719-67) was a provincial administrator (Intendant) of the region of Auch (1751-65). Auch is the main city of the department of Le Gers, in the eastern part of the Département of Les Landes where Bastiat lived and which he represented in the Chamber. He is best known for his competent administration of the compulsory labor requirement (la corvée) which he used to improve the roads in his region. A statue of him was erected in the Allées d'Etigny.
553 A "généralité" was an administrative division of the kingdom. It was headed by an intendant, who reported to the "Contrôleur général des finances", the finance minister of the king. There were 34 such généralités in 1789. See the glossary on "French Administrative Regions."
554 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. The Central Committee which ran the Association had Mimerel as its vice-president, so it was called the "Mimerel Committee" for short. See the glossary entries on "Le Moniteur industriel," "Mimerel Committee," and the "Association for the Defense of National Employment".
555 Bastiat may have in mind here another famous 18th century Intendant who tried to introduce economic reforms in his region, only to be opposed by vested interests and ultimately defeated, namely Turgot (1727-1781). Turgot was a member of the Physiocrat school of free market economics and when he was Intendant of Limoges in 1761-74 he attempted to liberalize the restrictions on the sale and free movement of grain within his district. See the glossary entries on "Turgot" and "The Physiocrats."
556 (Note by Bastiat.) Seventy years later, Mr. de Saint-Cricq reproduced these words verbatim in order to justify the advantage of interrupting communications.) [Pierre Laurent Barthélemy, comte de Saint Cricq (1772-1854) was a protectionist Deputy who became Director General of Customs (1815), president of the Trade Council, and then Minister of Trade and Colonies (1828-29). See the glossary entry on "Saint Cricq."]
557 Jean-Baptiste Colbert (1619-83) was the comptroller-general of finance under Louis XIV from 1665 to 1683. He epitomized the policy of state intervention in trade and industry known as "mercantilism." See the glossary entry on "Colbert."
558 Béarn is a region located at the base of the Pyrénées in south west France in the Département of Pyrénées-Atlantiques. Its capital is the city of Pau.
559 Bastiat uses the expression "la liberté du commerce" not 'Le Libre-Échange."
T.151 "A Letter (to Hippolyte Castille) (on intellectual property)" (9 Sept. 1847, Travail Intel.)↩
[CW4 draft 16 June, 2017] SourceT.151 (1847.09.09) "A Letter (to Hippolyte Castille) (on intellectual property)" (Lettre), Mugron, 9 Sept. 1847; originally published in Castille's Le Travail intellectuel , no. 2, 15 Sept. 1847, p. 3, in a section called "Nouvelles adhésions" (new supporters). [OC2.49b, pp. 340-42.] [CW4]
Editor's IntroductionThis is the first of three pieces on literary and intellectual property rights Bastiat wrote. The first was this "Letter to Hippolyte Castille" in Castille's journal Le Travail intellectual , no. 2, 15 Sept. 1847, in which he strongly endorsed the new journal and its mission; the second was his "Speech to the Publishers' Circle", 16 Dec. 1847 (below, pp. 000) in which he outlined his thoughts on literary property rights as part of a more general theory of the natural right to property of all kinds (also published in Castille's journal); and a "Letter to Jobard", 22 Jan., 1848 (below, pp. 000) on intellectual property as it applied to inventions (which was not published in his lifetime).
Hippolyte Castille (1820-1886) 801 was a journalist who wrote for the Courrier français , 802 as did Gustave de Molinari and, after his arrival in Paris in 1845 occasionally also Bastiat. Bastiat and Molinari shared several interests with Castille. One was Castille's regular "soirée" which was held in his large home on the rue Saint-Lazare, no. 79 (the old residence of Cardinal Fesch) where radicals of various kinds met to discuss politics and economic ideas. Castille had links to left leaning radicals and was also able to reach out to some of the liberal political economists, such as Bastiat, Molinari, Joseph Garnier, Alcide Fonteyraud, and Charles Coquelin, who also attended his soirée which met regularly between 1844 and early 1848. It was Castille's home which supplied the name for Molinari's book, Les Soirées de la rue Saint-Lazare (1849), and the various attendees from both the left and the right no doubt supplied Molinari with the arguments which he used in his "conversations" between a Socialist, a Conservative, and an Economist. 803
The second shared interest was the question of intellectual property. Castille began a journal devoted to this issue in August 1847, Le Travail intellectuel , which lasted for 7 issues until it closed on 15 February 1848 just before the Revolution broke out. 804 Molinari is mentioned as a "collaborator" and other leading economists, such as Frédéric Bastiat, Charles Dunoyer, Horace Say, Michel Chevalier, Joseph Garnier, were listed as "supporters", although they did not appear to contribute much in the way of articles. The economists were deeply divided on the question of intellectual property, with some being "absolutists" in defending the right of authors and inventors to a perpetual property right in their creations, such as Molinari, Laboulaye, Frédéric Passy, Modeste, and Paillottet; while others such as Wolowski, Renouard, de Lavergne, Foucher, and Dupuit, believed that it should be a limited right of short duration, that it was a "license" for first use but not an absolute and eternal property right. 805 Bastiat wrote this piece as a letter of support and endorsement for Castille's new journal and it appeared in the second issue of 15 Sept. 1847, p. 3, in a section called "Nouvelles adhésions" (new supporters). It seems from his remarks in this letter that he was closer in his views to the absolutists like Molinari than to the advocates of a limited "license."
A third shared interest was in starting a daily newspaper, La République française , the day after the Revolution broke out on 26 February, 1848. Castille joined Frédéric Bastiat and Gustave de Molinari in writing and editing the paper which appeared in 30 issues between 26 February and 28 March. The format of the magazine was only one or two pages which could be handed out on street corners or in a larger format pasted to walls so that passers by could read them. By mid-1848 Castille had gradually drifted apart from his economist friends and eventually sided with the left-leaning radical republicans.
TextMugron, 9 September 1847
Sir,
It is with great satisfaction that I have learnt of the arrival in this world of the journal which you are publishing with the aim of defending intellectual property .
My entire economic doctrine is summed up in these words: Services are exchanged for other services 806 or, in more vulgar idiom: Do this for me and I will do that for you , which applies to intellectual property just as much as to material property.
I believe that both the efforts made by men, in whatever form, and the results of these efforts belong to them, and that this gives them the right to dispose of them for their own use or to exchange them. Like anyone else, I admire those who make voluntary sacrifices for their fellow men, but I cannot see any morality or justice in having the law impose this sacrifice on them systematically. It is on this principle that I defend free trade, since I sincerely see in restrictive regimes an attack of the most burdensome kind on property in general and in particular on the most respectable, the most immediate and generally essential of properties, the property which comes from our labor.
I am therefore, in principle, a fervent partisan of literary property. In practice, it may be difficult to guarantee this type of property. However, this difficulty is not an insurmountable legal impediment for the claimants involved.
The right to property of what one has produced through one's own labour and the exercise of one's own faculties is the essence of society. The right to property exists prior to the law and, far from law having any obligation to impede its enjoyment, it has no other purpose in the world than to guarantee it.
I consider that the most illogical of all laws is the one that regulates literary property in our country. It gives it a reign of twenty years following the death of the author. 807 Why not fifteen or sixty? On what principle has this arbitrary number been selected? On the unfortunate principle that the law creates property, a principle that has the power to turn the world upside down.
'What is just is useful' is an axiom the truth of which political economy often has the opportunity of acknowledging. It has one more application in this question. When literary property has a very limited legal life, it may happen that the law itself places the full weight of self-interest on the side of short-lived works, shallow novels or articles that encourage the passions of the moment and satisfy current fashion. Sales are sought among the current reading public given to you by the law and not in the future reading public of which it deprives you. Why would people devote time to a long-lasting work if all that they can leave their children is some literary wreckage? Do you plant oaks on common land for which you have received a short concession? An author would be strongly encouraged to add to, correct, and polish his work if he were able to say to his son, "It is possible that this book will not be appreciated in my lifetime. However, it will gain an audience through its intrinsic value. It is the oak that will shelter you and your children and give you shade."
I know, Sir, that these ideas appear very mercenary to many people. It is the fashion today to base everything on the principle of the disinterestedness of others . If those who make this claim were willing to examine their consciences a little, perhaps they would not be so quick to forbid writers from caring about their future and their family or the sentiment of self-interest , since it has to be given its proper name. Some time ago, I spent an entire night reading a brief work in which the author denounced energetically anyone who obtained the slightest reward from intellectual work. 808 The next day, I opened a journal and, by a strange coincidence, the first thing I read was that this same author had just sold his works for a considerable amount. This encapsulates selflessness in this century, the moral code we impose on each other without observing it ourselves. In any case, such selflessness, admirable as it is, is not worth its name if it is required by law, and the law is very unjust if it demands this solely from those who work with ideas.
For my part, persuaded as I am, through constant observation and by the actions of the very people who rail against it, that self-interest is an indestructible individual motive and an essential social stimulus. 809 I am happy to see that, in this circumstance as in many others, its general effects coincide with justice and universal well-being of the highest order, and for this reason, I am a wholehearted supporter of your worthwhile enterprise.
Your devoted servant,
Frédéric Bastiat.
Editor in Chief of Le Libre-Échange
801 Hippolyte Castille (1820-1886) was a prolific French author who wrote popular works on the History of the Second French Republic (4 vols. 1854-56) and a multi-volume series of Portraits politiques au dix-neuvième siècle (1857-1862) which included several small volumes on classical liberal figures. He founded in August 1847 a short-lived journal devoted to the importance of intellectual property, Le travail intellectuel, journal des intérêts scientifiques, littéraires et artistiques . Molinari is mentioned as a "collaborator" and other leading economists were listed as "supporters" (Frédéric Bastiat, Charles Dunoyer, Horace Say, Michel Chevalier, Joseph Garnier). The journal was monthly and lasted 7 months before closing in February 1848. Castille was also one of the founders of Bastiat's revolutionary journal La République française in February 1848, along with Gustave de Molinari.
802 Le Courrier français (1820-1846) was a liberal and anti-clerical newspaper founded by the constitutional monarchist Auguste-Hilarion, comte de Kératry (1769-1859). It was suspended and threatened with legal action several times during the 1820s for its stand against the French intervention in Spain and for criticizing the established church. It was more popular during the July Monarchy but still remained a small circulation paper and was forced to close in 1846. Hippolyte Castille was a regular contributor. Both Bastiat and Molinari also wrote for it on occasion.
803 Molinari, Gustave de, Les Soirées de la rue Saint-Lazare; entretiens sur les lois économiques et défense de la propriété (Paris: Guillaumin, 1849). A Liberty Fund edition of this work is forthcoming.
804 Le Travail intellectuel. Journal des intérêts scientifiques, littéraires et artistiques (Paris: 1847-48). The journal appeared between 15 Aug. 1847 and 15 Feb. 1848.
805 For a discussion on this see, Molinari, "Propriété littéraire," DEP, vol. 2 pp. 473-78; and Louis Wolowski and Émile Levasseur, "Propriété" in Dictionnaire générale de la politique par Maurice Block avec la collaboration d'hommes d'état, de publicistes et d'écrivains de tous les pays (Paris: O. Lorenz. 1st ed. 1863-64), vol. 2, pp. 682-93; especially the section "Propriété littéraire et artistique" pp. 691 ff.
806 See the glossary entry on "Service for Service."
807 Under the old regime copyright (droit de copie) existed in perpetuity but it was enjoyed at the pleasure of the sovereign and not by legal right. This right was lost if an author granted the copyright to a publisher. The author then only had copyright until his death, after which the book entered the public domain. During the Revolution copyright was protected under the law and it could be transferred without restriction but it was limited in duration. According to the law of 19 July 1793 copyright was granted to the author for life and to his/her heirs for 10 years after their death; the Decree of 5 February 1810 extended the right of heirs to 20 years. These laws remained in effect up until the mid-19th century, with only a slight modification with the law of 3 August 1844. See, Édouard Romberg, Compte rendu des travaux du Congrès de la propriété littéraire et artistique (1859), 2 vols. "France. - Notice historique sur la propriété littéraire," pp. 161-67; Législation, pp. 168 ff.
808 Probably Louis Blanc's attack on literary property, in Louis Blanc, Organisation du travail. IVe édition. Considérablement augmentée, précédée d'une Introduction, et suivie d'un compte-rendu de la maison Leclaire. La première édition a parus en 1839. (Paris: Cauville frères, 1845). Part II "De la propriété littéraire," pp. 187-240.
809 Bastiat uses here the analogy of a clock, or the social mechanism, which would become very important in his book Economic Harmonies , where self-interest is "un mobile individuel indestructible et un ressort social nécessaire" (an indestructible individual driving force and a socially necessary spring). See the glossary entry on "The Social Mechanism."
T.152 (1847.09.15) "Minutes of a Public Meeting in Marseilles by the Free Trade Association" (JDE, Sept. 1847)↩
SourceT.152 (1847.09.15) "Minutes of a Public Meeting in Marseilles by the Free Trade Association: Speech by M. Bastiat: Abstract Ideas. Political Economy agrees with Feelings.What the Protectionist System resembles. The rich possibilities of Reform" (Réunion publique à Marseille de l'Association pour la Liberté des Échanges: Discours de M. Bastiat: L'abstraction. L'économie politique d'accord avec le sentiment. À quoi ressemble le système protecteur. Fécondité de la réforme), Journal des Économistes, Sept. 1847, T. XVIII, no. 70, pp. 163-165. Report also given in, Le Libre-Échange, 5 Sept. 1847, no. 41, pp. 325-27. [DMH] [CW6]??
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T.299 (late 1847) "The Difference between doing Business and an Act of Charity"↩
[CW4 draft 16 June, 2017] SourceT.299 (late 1847) "The Difference between doing Business and an Act of Charity" (late 1847). 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". He dated it late-1847. [OC4, p. 311] [CW2, p. 70] </titles/2450#lf1573-02_label_163>
Editor's IntroductionThis short piece was found among Bastiat's papers by the French editor Paillottet who included it in a footnote to one of Bastiat's anti-socialist pamphlets, "Justice and Fraternity" (June 1848), 810 which Paillottet republished in Bastiat's Collected Works in 1854. 811 Paillottet thought Bastiat had written it in late 1847 before the revolution had broken out in February 1848 but included in with this pamphlet which was first published just a few days before one of the bloodiest moments of the 1848 Revolution, namely the June Days uprising. The link between the sketch and the essay was the topic of "fraternity" which was a major part of the socialist critique of the free market system which Louis Blanc and his followers had been making throughout the late 1840s. When the monarchy of Louis Philippe was overthrown, Louis Blanc moved swiftly to implement socialist reforms in the workplace by means of the National Workshops program which he established and ran from the Luxembourg Palace. In addition to requiring the state to provide a guaranteed job for everybody, the socialists wanted to replace wage labour with a more "cooperative" and "fraternal" way of organising labour which would also be encouraged and possibly even established and enforced by the state. Bastiat denounced this as "the dogma of fraternity":
I believe that what radically divides us is this: political economy reaches the conclusion that only universal justice should be demanded of the law. Socialism, in its various branches and through applications whose number is of course unlimited, demands in addition that the law should put into practice the dogma of fraternity. 812
In this short sketch Bastiat makes the argument that business transactions are different from acts of charity and that it is a mistake to conflate the two, even though the same person may engage in both. According to Bastiat's theory of exchange the two parties to an exchange enter it voluntarily and both expect to benefit, not out of a sense of charity towards each other, but out of personal self-interest. As with "legal" or state-imposed charity, "legal" or state-imposed fraternity along the lines proposed by socialists like Louis Blanc, would destroy the true fraternity which springs from voluntary cooperation among individuals.
TextIn practical terms, men have always distinguished between a business transaction and an act of pure benevolence. I have on occasion been pleased to observe the most charitable man, the most selfless heart, and the most fraternal soul that I know. The parish priest of my village 813 raises love for his fellow men and particularly for the poor to an exceptional level. It goes so far that when he has to extract money from the rich in order to assist the poor, this fine man is not very scrupulous in his choice of means.
He had taken in a nun in her seventies as a lodger in his house, one of those people that the Revolution had scattered around the world. In order to give an hour's entertainment to his lodger he, who had never touched a playing card, learned to play piquet, 814 and it was a sight for sore eyes to see him pretending to be enthusiastic about the game so that the nun was persuaded that she was being helpful to her benefactor. This lasted for fifteen years. But here is what turned an act of simple charity into one of heroism. The good nun was suffering from a generalized cancer that caused an abominable odor to emanate from her and of which she was unconscious. In spite of this, the priest was never seen to take tobacco during the game for fear of making the unfortunate patient aware of her situation. How many people who received the cross this past May 1 would be capable of doing for one day what my old priest did for fifteen years?
Well then! I observed this priest and was able to ascertain that when he engaged in business , he was as vigilant as any trader in the Marais. 815 He defended his territory, watched out for the weight, the measure, the quality, and the price, and at no time ever thought of combining charity and fraternity in the matter.
Let us therefore strip the word fraternity of all the false, puerile, and high-flown trappings that have lately been added to it.
810 Bastiat, "Justice et fraternité," JDE , 15 June 1848, T. 20, no. 82, pp. 310-27; also published as a pamphlet, Propriété et Loi. Justice et Fraternité (Property and Law. Justice and Fraternity) (Paris: Guillaumin, 1848). See, CW2, pp.60-81. See also the glossary entry on "Bastiat's Anti-Socialist Pamphlets."
811 Bastiat, Oeuvres complètes , vol. 4 (1854), p. 70.
812 "Justice and Fraternity," CW2, pp. 60-61.
813 The town of Mugron where Bastiat lived in Les Landes.
814 Piquet is a trick-taking card game for two players which was introduced into France in the early 16th-century.
815 Le Marais ("The Marsh") is an historic district in Paris which stretches across the 3rd and 4th arrondissements on the right bank of the Seine. It was once the residence of aristocrats but after the Revolution it became an important commercial district which became home to a thriving Jewish community.
T.153 (1847.11.07) "The League's Second Campaign" (LE, Nov. 1847)↩
SourceT.153 (1847.11.07) "The League's Second Campaign" (Seconde campagne de la ligue), Le Libre-Échange, 7 Nov. 1847, no. 50, pp. 401-2. [OC3.33, pp.449-58.] [CW6]
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T.154 (1847.11.07) "The Spanish Association for the Defense of National Employment" (LE, Nov. 1847)↩
SourceT.154 (1847.11.07) "The Spanish Association for the Defense of National Employment" (Association espagnole pour la défense du travail national : le pont de la Bidassoa), Le Libre-Échange, 7 Nov. 1847, no. 50, p. 404. [OC2, pp. 429-35.] [CW3 - ES3.10]
X.The Spanish Association for the Defense of National Employment and the Bidassoa Bridge560 [7 November 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Association espagnole pour la défense du travail national" (The Spanish Association for the Defense of National Employment) [7 November 1847, 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. 429-35.
- Previous translation: [none]
Spain too has her association for the defense of national employment.561
Its object is this:
"Given a certain amount of capital and the labor it can set to work, to take these away from uses in which they produce a profit and propel them in a direction in which they will produce a loss, unless this loss can be transferred by law onto the general public by means of a disguised tax."
Consequently, this society is demanding, among other things, the exclusion of French products, not those that are expensive for us (no laws are needed to exclude them) but those that can be provided for us cheaply. The cheaper the price at which they can be offered to us, the more reason Spain has, so people say, to protect herself from them.562
This has inspired me to record a reflection that I humbly put before the reader.
One of the characteristics of Truth is Universality.
If you wish to ascertain whether an association is based on a good principle, you have only to see if it is in sympathy with all those who wherever they are in the world have adopted an identical principle.
Associations for free trade are like this. One of our colleagues can go to Madrid, Lisbon, London, New York, Saint Petersburg, Berlin, Florence and Rome and even Beijing; if associations for free trade exist in these towns he will for that reason certainly be made very welcome there. What he says here he can say there in the certainty that he will not be upsetting either opinions or even interests as these associations understand them. Between free traders of all countries there is unity of faith on this question.
Is this also the case for protectionists? In spite of the community of ideas or rather of arguments, was Lord Bentinck,563 who had just voted for the exclusion of French cattle, acting in accordance with the views of our breeders? Would the man who rejected our printed cotton goods in Parliament be made welcome by the Rouen Committee?564 Would those who will be supporting the Navigation Act565 and the differential duties in India next year arouse the enthusiasm of our ship owners? Let us suppose that a member of the Odier Committee566 were made a member of the Spanish association for the defense of national employment; what is he going to say? What words could he use without betraying either the interests of his country or his own convictions? Would he advise the Spanish to open their ports and borders to the products of our factories? To take no notice of the false doctrine of the balance of trade? To consider that the industries that are supported solely by taxes on the community are absolutely not worthwhile? Would he tell them that Customs exemptions do not create capital and work but merely displace them, and in a damaging way? Abandoning principles and personal dignity in this way may perhaps be applauded by his co-religionists in France (for we remember that, eighteen months ago in the Rouen Committee, the question was very seriously raised as to whether it was now the right time to preach free trade … in Spain), but it certainly will arouse the derision of a Castilian audience. Therefore would he want to appear heroic by putting his principles above his interests? Imagine this Brutus567 of restriction haranguing the Spanish in these words: "You are doing the right thing in raising the height of the barriers that separate us. I approve your rejecting our ships, our suppliers of services, our traveling salesmen, our fabrics made of cotton, wool, yarn and jute, our spinning mules, our wallpaper, our machines, our furniture, our fashions, our haberdashery, our hardware, our pottery, our clocks, our ironmongery, our perfumes, our fancy goods, our gloves and our books. These are all things that you ought to make yourselves, however much work they demand and even all the more if they require more work. I have only one criticism to make to you, and that is that you go only halfway down this road. It is very good of you to pay us a tribute of ninety million and to make yourselves dependent on us. Beware of your free traders. They are ideologists, stupid people, traitors, etc." This fine speech would doubtless be applauded in Catalonia; would it be approved of in Lille and Rouen?
It is thus certain that protectionist associations in various countries are antagonistic toward each other, although they give themselves the same title and apparently profess the same doctrines, and to crown their oddity, if they are sympathetic to anything from country to the other, it is with free trade associations.
The reason for this is simple. It is that they want two contradictory things at the same time: restrictions and markets. To give and not to receive, to sell and not to buy, to export and not to import, this is the basis of their strange doctrine. This leads them very logically to have two forms of speech that are not only different but opposed to each another, one for the country and the other for abroad, with the very remarkable fact that, were their advice to be accepted on both sides, they would not be any closer to their goal.
In effect, just taking into account the transactions between two nations, what are exports for one are imports for the other. See this fine ship that criss-crosses the sea and carries within its hold a fine cargo. Be so good as to tell me what we should call these goods. Are they imports or exports? Is it not clear that they are both simultaneously, depending on whether you are looking at the nation dispatching them or the one receiving them? If, therefore, no one wishes to be the nation receiving them, no one can be the nation dispatching them, and it is inevitable that, overall, markets will dry up just as much as restrictions tighten the noose. This is how we arrive at this odd policy: here a premium at public expense is allocated to encourage a cargo to leave while there, a tax at public expense is imposed on it to prevent it from entering. Can you imagine a more senseless conflict? And who will emerge as the victor? The nation most disposed to pay the larger premium or the heavier tax.
No, the truth does not lie in this pile of contradictions and antagonisms. The entire arrangement is based on the idea that exchange is a trick568 for the party that is on the receiving end, and apart from the fact that the very word exchange contradicts this idea, since it implies that both sides receive something, what person would not see the ridiculous position in which he is placing himself when he all can say when he is abroad is: "I advise you to be duped", while he is above all the dupe of his own advice?
This being said, here is a small sample of protectionist propaganda abroad.
The Bidassoa569 Bridge
A man left the Rue Hauteville570 in Paris with the aim of teaching political economy to other nations. He came to the Bidassoa. There were a great many people on the bridge, and such a large audience could not fail to tempt our teacher. He therefore leant against the rail, with his back to the Ocean and, taking care to prove his cosmopolitan nature by aligning his spine with the imaginary line separating France and Spain, he began to speak:
"All of you who are listening to me, you would like to know what good or bad exchanges are. It would appear at first sight that I ought to have nothing to teach you in this respect, for in the end, each of you is aware of his own self-interest, at least to the extent that I know my own, but interest is a misleading sign, and I am a member of an association in which this common motive is scorned. I am bringing you another infallible rule, which is most easy to apply. Before entering into a contract with someone, get him to chat. If, when you speak to him in French he replies in Spanish, or vice versa, you need go no further, proof is there and the trade will be sly in nature."
A voice: "We speak neither Spanish nor French; we all speak the same language, Escualdun, which you call Basque."571
"Damn!" the orator said to himself, "I did not expect this objection. I have to change tack." "Well then, my friends, here is a rule that is just as easy: those of you who were born on this side of the line (indicating Spain) may trade with no inconvenience with all of the country to my right up to columns of Hercules,572 but no further, while all those born on that side of the line (indicating France) may trade at will in all the region lying to my left, up to this other imaginary line that runs between Blanc-Misseron and Quiévrain573, but no further. Trade carried out in this way will make you wealthy. As for the trade that you carry out across the Bidassoa, this will ruin you before you can notice it."
Another voice: "If the trade carried out across the Nivelle574 which is two leagues from here is good, how can that carried out across the Bidassoa be bad? Do the waters of the Bidassoa produce a particular gas that poisons the trade that crosses it?"
"You are very curious", replied the teacher, "my fine Basque friend, you have to take my word for it."
In the meantime our man, having reflected on the doctrine that he had just expressed, said to himself: "I have still carried out only half of the business of my country." Asking for silence, he continued his speech thus:
"Do not believe that I am a man of principles and that what I have just told you constitutes an ordered system. Heaven preserve me! My commercial arrangements are so far from being theoretical, so natural and so in line with your inclinations, although you do not realize this, that you will submit to them easily with a few thrusts of the bayonet. The Utopians575 are those who have the audacity to say that trade is good when those who carry it out find it so. A terrible, wholly modern doctrine that has been imported from England, and to which men would naturally be drawn if the armed forces did not establish proper order.
However, to prove to you that I am neither exclusive nor absolute, I will tell you that my idea is not to condemn all the transactions that you may be tempted to make from one bank to the other of the Bidassoa. I admit that your carts cross the bridge freely, provided that they arrive there FULL from this side (indicating France) and arrive here EMPTY from that side (indicating Spain). Through this ingenious arrangement, you will all gain: You, Spaniards, because you will receive without giving, and you, Frenchmen, because you will give without receiving. Whatever you do, though, do not take this for a fully worked out system."
The Basques have hard heads. You may repeat to them until you are blue in the face: "This is not a system, a theory, a Utopia or a principle"; these carefully chosen words are incapable of making them understand what is unintelligible. For this reason, in spite of the fine advice from their teacher, when they are allowed to trade (and sometimes when they are not) they trade according to the old way (which is said to be new), that is to say, as their fathers traded; and when they cannot conduct it "over" the Bidassoa, they do it "under" the Bidassoa, so blind are they!576
Endnotes560 The editors of the present volume have added the subtitle "the Bidassoa Bridge" to the original title used by Bastiat in order to highlight the inclusion of this economic fable in the essay.
561 This is a veiled reference to one of Bastiat's protectionist "bêtes noires" which was the "Association pour la défense du travail national" (Association for the Defense of National Employment) which was founded in October 1846 and based in Paris. See the glossary entry on "Association for the Defense of National Employment."
562 Bastiat seems to have garbled his sentence here. The original says "mais de ceux que nous pouvons livrer à bon marché. Plus même nous les offrons à prix réduit, plus l'Espagne, dit-on, a raison de s'en défendre" but this conflicts with the first part of the sentence and the point he is trying to make. We have corrected it to read: "but those that can be provided for us cheaply. The cheaper the price at which they can be offered to us, the more reason Spain has, so people say, to protect herself from them." See OC, vol. 2, p. 429.
563 Lord George Bentinck (1802-1848) was a conservative Member of Parliament who with Benjamin Disraeli led the opposition in the House of Commons against Richard Cobden's and Sir Robert Peel's attempts to repeal the Corn Laws in 1846. See the glossary entry on "Bentinck."
564 Nearly every industrial town had its "Committee" to represent the interests of industry and manufacturing. These were brought together under a national umbrella organization called the "Association pour la défense du travail national" (Association for the Defense of National Employment) which was founded by the northern textile manufacturer Pierre Mimerel de Roubaix (1786-1872) in October 1846 and was based in Paris. The "Rouen Committee" Bastiat refers to was probably the local affiliate of the national organization. See the glossary entries on "Mimerel," "Association for the Defense of National Employment," and "Mimerel Committee."
565 The Navigation Acts were a lynch pin of the British policy of mercantilism from its introduction in 1651 to its abolition in 1849. They were designed to protect British merchant shipping from competition by third parties, in particular the Dutch and the French. The repeal of the Corn Laws in 1846 and the Navigation Acts in 1849 were vital for the development of a policy of free trade in Britain. See the glossary entries on "The Navigation Acts," "Anti-Corn Law League," and "The Corn Laws."
566 Antoine Odier (1766-1853) was a Swiss-born banker and manufacturer who was a Deputy (1827-37), president of the Chamber of Commerce of Paris and a leading member of the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment) on whose Central Committee he served as president (thus it was sometimes called "the Odier Committee" or the "Mimerel Committee" for short). See the glossary entries on "Odier," "Association for the Defense of National Employment," "Mimerel Committee."
567 Brutus participated in the assassination of Julius Caesar and because of this was regarded by many in the eighteenth and nineteenth centuries as the model of the tyrannicide. See the glossary entry on "Brutus."
568 Bastiat uses the word "duperie" here. 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."
569 The Bidassoa is a short river in south-west France which forms the border between France and Spain.
570 The Association for the Defense of National Employment (a protectionist organization led by Antoine Odier) had its headquarters on the Rue Hauteville in Paris. See the glossary on "The Rue Hauteville" and "Association for the Defense of National Employment."
571 Bastiat had some knowledge of the Basque language as he had a Basque house maid and lived in a part of France where Basque was spoken. See his "Two Articles on the Basque Language" in Collected Works, vol. 1, p. 305-8.
572 The "Pillars of Hercules" was the name given in the ancient world to the two pieces of land which lay either side of the Strait of Gilbraltar. The pillar to the north is the Rock of Gilbraltar on the Anglo-Spanish side of the strait. The identity of the southern pillar in Africa is disputed but lies somewhere in Morocco.
573 Blanc-Misseron and Quiévrain are two towns on the Franco-Belgian border.
574 The Nivelle is a small river in the French Basque country.
575 See the glossary entry on "Utopias."
576 Bastiat is punning here with a reference to the "underground" (or in this case "under river") economy of smuggling across the Franco-Spanish border. The legally permitted, regulated, and taxed trade takes place "above ground" (above river) through the customs barriers at either side of the Bidassoa river, while the traditional, free, and untaxed trade takes place "underground" (under river).
T.155 (1847.11.14) "A Campaign Strategy proposed to the Free Trade Association" (LE, Nov. 1847)↩
SourceT.155 (1847.11.14) "A Campaign Strategy proposed to the Free Trade Association" (D'un plan de campagne proposé à l'Association du Libre-Échange), Le Libre-Échange, 14 Nov. 1847, no. 51, pp. 405-6. [OC2.5, pp. 15-21.] [CW6]
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T.156 (1847.11.14) "To the Members of the General Council of La Seine" (LE, Nov. 1847)↩
SourceT.156 (1847.11.14) "To the Members of the General Council of La Seine" (Aux membres du Conseil général de la Seine), Le Libre-Échange, 14 Nov. 1847, no. 51, pp. 409-10. [OC7.39, pp. 193-98.] [CW6]
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T.157 (1847.11.14) "Bastiat's reply to a letter by Blanqui on purely political matters and free trade" (LE, Nov. 1847)↩
SourceT.157 (1847.11.14) "Bastiat's reply to a letter by Blanqui on purely political matters and free trade", Le Libre-Échange, 14 Nov. 1847, no. 51, p. 407. [OC2.1, footnote pp. 3-4.] [CW6]
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T.158 (1847.11.21) "To the Members of the General Council of La Niève" (LE, Nov. 1847)↩
SourceT.158 (1847.11.21) "To the Members of the General Council of La Niève" (Aux membres du Conseil général de la Nièvre), Le Libre-Échange, 21 Nov. 1847, no. 52, pp. 414-15. [OC7.40, pp. 199-206.] [CW6]
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T.300 (1847.11.28) "On the Difference between Illegal and Immoral Acts" (LE, 28 Nov. 1847)↩
[CW4 draft 16 June, 2017] SourceT.300 (1847.11.28) "On the Difference between Illegal and Immoral Acts" (LE, 28 Nov. 1847, no. 1, 2e année, pp. 1-2). The piece in LE had no title so we have given it one. The original French editor Paillottet inserted a shortened version of it in a footnote to "Plunder and Law". We include the complete article in CW4. [OC5, pp. 2-4] [CW2, pp. 267-68] and [CW4] </titles/2450#lf1573-02_footnote_nt243>.
Editor's IntroductionThe original French editor Paillottet cut four paragraphs from the beginning of Bastiat's essay and one and half paragraphs from the end and inserted the shortened piece in a footnote to the pamphlet Plunder and Law (May 1850). We have translated the full version of the original article here.
Bastiat here is replying to criticism levelled at Le Libre-Échange by the Le Moniteur industriel which was the journal of the protectionist "Association for the Defense of National Employment" (also known as the Mimerel Committee) and the arch-foe of the free traders. 816 They accused Le Libre-Échange of defending smugglers who broke the law by selling goods which were either banned by the state or heavily protected and taxed for the benefit of special interests. The Moniteur industriel even went as far as accusing the free traders of "sedition". 817 This accusation was partly true as the language used by the free traders like Bastiat had increased in intensity and "harshness" over the previous two years. Ironically, Bastiat had started the ball rolling with his call for more direct and even "hash" language in "Theft by Subsidy" (Jan. 1846) in which he described subsidies to protected industries as a form of theft and told his readers that "Frankly, my good people, you are being robbed." 818 He gradually developed an entire vocabulary to describe the actions of the government in protecting and subsidising domestic industry. This included words such as "spolier" (to plunder),"dépouiller"(to dispossess), "voler" (to steal); "piller" (to loot or pillage), "filouter" (filching), and "violer" (rape). This of course offended those farmers and manufacturers being protected who argued in reply that what they were doing was perfectly legal. In turn, Bastiat retorted that there was a distinction between "la spoliation extra-légale" (extra-legal plunder), committed by highway robbers, which was universally condemned, and "la spoliation légale" (legal plunder) 819 committed by landowners and manufacturers who used their influence in the Chamber of Deputies to get laws passed in their favour, and even "la spoliation gouvernementale" (plunder by government), an expression he used in late 1847. 820 It would seem to be a small step to go from denouncing government actions as criminal theft, to urging people to avoid it as best they can, or to take steps to combat it, and perhaps then praising those who did so.
An example of the latter can be found in some of the speeches given at the Congrès des Économistes hosted by the Belgian Association for Commercial Freedom held in Brussels 16-18 September 1847, 821 which so incensed the members of the Association for the Defense of National Employment. Adolphe Blanqui, 822 who taught political economy at the Conservatoire national des arts et métiers and was elected Deputy representing the Gironde from 1846-48, argued that the smugglers he had met in Spain were "un être très-positif" (good people), who were overall very good businessmen, who carried a large stock of items which they could deliver on time to their customers, who employed many people of all ages, both men and women, and who were quite professional in their dealings with their customers. Blanqui concluded from this that "I then realised that the protectionist system had a canker within itself which would end up killing it without the economists getting involved." This produced considerable laughter and applause from those economists in attendance. 823
This was followed by a speech by Joseph Garnier, 824 the editor of the Journal des Économistes , who literally sang the praises of the goguettier (political song writer) Jean-Pierre Béranger 825 who had written "cette chanson qui est réellement libre échangiste" (this really free trade song) "Les Contrebandiers" (The Smugglers). The verse he quoted has an interesting pun on the phrase "the balance of trade" and he very much likes the verse which shows the smugglers' utter disregard for artificial national borders:
Aux échanges l'homme s'exerce. Mais l'impôt barre les chemins. Passons; c'est nous qui du commerce Tiendrons la balance en nos mains. |
Men are busy engaged in trade, But taxes block the roads. Lets us pass; it is we who hold The balance of trade in our hands. |
À la frontière où l'oiseau vole, Rien ne lui dit: Suis d'autre lois. L'été vient tarir la rigole, Qui sert de limite à deux rois. |
At the frontier where the birds fly above, Nothing says to them: Obey another law. Summer comes to dry up the stream, Which serves as the border between two kings. |
Prix du sang qu'ils répandent, Là leurs droits sont perçus. Ces bornes qu'ils défendent, Nous sautons par-dessus. |
They demand a price in blood, Here where their duties are collected. These borders that they defend, We (just) jump over them. |
[Source] 826
Le Moniteur industriel responded angrily to these pro-smuggler sentiments expressed at the Congress of Economists and this in turn prompted an equally angry rebuttal by an unnamed author in Le Libre-Échange on 21 November 1847 entitled "Always Smuggling." Normally, unsigned articles in Le Libre-Échange should be attributed to the pen of Bastiat, and since the word "la ruse" (fraud, trickery) appeared in the essay and was one commonly used by him in his theory of plunder, his authorship would be plausible. However, in the essay below he denies it was him, or any "professor of political economy," thus ruling out Garnier and Blanqui. Hence it may have been written by Gustave de Molinari who was the more radical of the two on the issue of the immediacy of introducing free trade (he wanted it introduced immediately with no phasing in period, while the FFTA wanted a lengthy one); and he firmly believed protectionist duties were a form of theft as bad as "brigandage on the back roads of Calabria" and that doing deals with the protectionists on the Odier Committee was like paying protection money to Italian criminals. 827 Whoever the author may have been, perhaps Bastiat was forced to retract the radical piece under pressure from the more moderate backers of the FFTA.
The main argument of both the author of "Always Smuggling" and Bastiat in the piece below is that there is a difference between something being immoral and something being illegal, that smuggling was an illegal activity, but that protectionism was "a much greater (act of) immorality" than smuggling, even though it was technically legal.
TextThe mouth-piece of the committee run by Odier-Mimerel, Leboeuf, and company - the Moniteur industriel - commands us to assume responsibility for the article on smuggling which appeared in the previous issue of Libre-Échange . This article was not written by any professor of political economy, nor by the director of the journal (i.e. Bastiat), but M. Bastiat assumes full responsibility for it.
In its zeal to find us responsible, even criminal, the Moniteur asserts that we support a socially disruptive thesis, that we are justifying a revolt which is permanent, constant, organised, armed, and which is against the law and the constitution of the country . At the same time, the Moniteur quotes our own words: smuggling is immoral because it is a violation of the laws of the State .
We declare in the most formal manner possible that obedience to the laws of the State is in our eyes a sacred principle. As long as citizens have under the constitution a means, however imperfect, of obtaining redress from bad laws, it is for them not only a duty but good politics to resort exclusively to this means. Our Association, all our efforts, all our words and deeds attest to the fact that obedience to the law has always been our rule, our limit, and our hope. We appeal to the majority. We announce in advance that we have the patience to wait for its verdict. So how can the Moniteur industriel have the audacity to say that, according to us, the first person who comes along can declare that such and such a law is immoral and thus immediately has the right to engage in permanent revolt ?
Where does this confusion of the Moniteur industriel come from when it attempts to introduce into this debate the idea that we consider trade restrictions more immoral than smuggling? But to say that one act is more immoral than another, does this exonerate the lesser? In particular, does it allow one to say that one can carry it out by force of arms? 828
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 appropriate since it often 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 wages from a hard day's work for a length of Belgian cloth, 829 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 publicly 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 trade 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 forced to come to my shop. That may upset you but it suits my purpose. You will lose four francs but I will gain two and that is enough." We would say that this action is immoral. If someone is bold enough to carry it out himself by force 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 wish for trade restrictions executed by those in his pay, the immorality would be blindingly obvious to Le Moniteur industriel itself. 830 What then! Because this manufacturer was able to spare himself this effort, because he was able to make use of the services of the power of the State and saddle those oppressed with part of the costs of repression, what was immoral has become praiseworthy!
It is true that the people thus trampled on may imagine that it is for their own 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 heinous character 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. 831 After all, we must have considered trade restrictions to be immoral since we are attempting to destroy them. Isn't the Moniteur doing just as much with regard to freed trade?
We cannot end the discussion without thanking our esteemed colleague for the opportunity he has given us to clarify these questions which are still troubling to the majority. Without him we would not always have known what objections we had to respond to, and in doing so he assuredly provides us with a valuable service to our cause.
816 The "Association pour la défense du travail national" (Association for the Defense of National Employment) was a protectionist group founded in October 1846 to defend the interests of industrialists and manufacturers. It was led by Antoine Odier (1766-1853) and Pierre Mimerel de Roubaix (1786-1872) who merged several regional protectionist associations together in order to better organise against the newly formed national French Free Trade Association which had been founded in July 1846 in Paris. Their journal was Le Moniteur industrial . See the glossary entry on "Association pour la défense du travail national".
817 "Always Smuggling" (Toujours contrebande), LE 21 Nov. 1847, 1st year no 52, pp. 415-16.
818 ES2.9 "Theft by Subsidy" (Jan. 1846, JDE)," CW3, p. 171.
819 He used the pair of terms "la spoliation extra-légale" (extra-legal plunder) and "la spoliation légale" (legal plunder) for the first time in "Justice and Fraternity" (15 June 1848, JDE) and CW2, p. 76.
820 His one and only use of the term "la Spoliation gouvernementale" was in ES2 1 "The Physiology of Plunder" (c. Nov. 1847), CW3, p. 128.
821 It was attended by a large contingent from France, including Horace Say, Charles Dunoyer, Guillaumin, Joseph Garnier, Alcide Fonteyraud, the Duke d'Harcourt, Adolphe Blanqui, Louis Wolowski, and Gustave de Molinari. The Congress was also attended by Karl Marx but it is not known if he met any of the French political economists.
822 Jérôme Adolph Blanqui (1798-1854) was a liberal political economist; brother of the revolutionary socialist Auguste Blanqui. He succeeded Jean-Baptiste Say to the chair of political economy at the Conservatoire national des arts et métiers, and was the editor of the JDE between 1842 and 1843.
823 Congrès des Économistes réunis à Bruxelles, par les soins de l'Association belge pour la liberté commercial. Session de 1847. Séances des 16, 17 et 18 septembre . (Bruxelles: Imprimerie de Deltombe, 1847), pp. 44-45.
824 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 .
825 Pierre-Jean de Béranger (1780-1857) was a liberal poet and songwriter who rose to prominence during the Restoration period with his funny and clever criticisms of the monarchy and the church. He mixed in liberal circles in the 1840s in Paris, when he joined Bastiat's Free Trade Society and the Political Economy Society. He was invited to attend the welcome dinner held by the latter to honor Bastiat's arrival in Paris in May 1845 but was unable to attend. Bastiat knew him and was known to have sung his drinking songs on occasion.
826 Congrès des Économistes réunis à Bruxelles , pp. 89-90. An old 19th century translation of "The Smugglers" can be found in French Liberalism in the 19th Century: An Anthology , ed. Robert Leroux and David M. Hart (London and New York: Routledge, 2012), pp.147-49. A version in French with sheet music can be found in Béranger lyrique. Oeuvres complète de P.J. de Béranger. Nouvelle édition revue par l'auteur avec tous les airs notés. Cette édition est augmentée de dix chansons nouvelles et d'une lettre de Béranger (Bruxelles: Librairie Encyclopédique de Perichon, 1850), pp. 415-16.
827 See Molinari's "Lettres adressées à M. Frédéric Bastiat" published in Le Courrier français , 21 and 27 September 1846, republished in Molinari, Questions d'économie politique , vol. 2 (Paris: Guillaumin, 1861), pp. 159-72, especially pp. 166-67.
828 Paillottet begins his extract from this article with the following paragraph.
829 The importation of cloth from Belgium was prohibited under French tariff laws.
830 Bastiat says something similar about protectionists not being honest about what they want to achieve by getting the State to use force on their behalf and not using force personally. See his discussion of "Mr. Prohibant" (Mr. Prohibitionist) in WSWNS 7 "Trade Restrictions" in CW3, pp. 427-32 where Mr. Prohibant first considers using his own weapons to kill the Belgian workers who bring their products over the French border (but he might get killed), then sending some of his own servants (it would cost to much), or lobby the "great law factory" in Paris to pass laws and employ an army of Customs Officials to keep out the Belgian traders at French tax-payers' expence.
831 Paillottet's extract of this piece ends here and the following two sentences of this paragraph and the entire following paragraph were cut.
T.159 (1847.11.28) "The Specialists" (LE, Nov. 1847)↩
SourceT.159 (1847.11.28) "The Specialists" (Les hommes spéciaux), Le Libre-Échange, 28 Nov. 1847, no. 1 (2nd year), p. 7. [OC2, pp. 373-77.] [CW3 - ES3.11]
XI. The Specialists [28 November 1847] (final draft)↩
Publishing history- Original title, place and date of publication: "Les hommes spéciaux" (The Specialists) [28 November 1847, 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. 373-77.
- Previous translation: [none]
There are people who imagine that men of learning, or those whom they call, too indulgently, scholars, are not competent to talk about free trade. Freedom and restriction, they say, are questions that have to be debated by practical men.
Thus, Le Moniteur industriel577 calls our attention to the view that in England, trade reform has been due to the efforts of manufacturers.578
Similarly, the Odier Committee579 is very proud of the procedure it has adopted, which consists of so-called surveys which come down to asking each favored industry in turn if it wants to give up its privileges.
In similar fashion, a member of the General Council of the Seine, a manufacturer of woolen cloth, protected by absolute prohibition, told his colleagues while discussing one of our associates: "I know him; he was a village justice of the peace580. He knows nothing about manufacturing."
Even our friends let themselves be put down by this type of prejudice. Recently, the Le Havre Chamber of Commerce, referring to our declaration of principles (which is one page long),581 remarked that we did not mention maritime interests. It then added: in one sense the Chamber could not complain too much about this oversight, since the names shown at the end of this declaration did not inspire it with much confidence with regard to the study of these matters."
This associate of ours, whom I have now therefore mentioned twice, starts by very solemnly declaring that he does not claim to be more familiar with nautical procedures than ship owners, more familiar with metallurgical processes than ironmasters, more familiar with farming procedures than farmers, more familiar with weaving processes than manufacturers or more familiar with the procedures followed by the ten thousand of our industries than those who carry them out.
But frankly, is familiarity with all this necessary to the recognition that none of these industries ought to be permitted by law to hold the others to ransom? Is it necessary to have grown old in a factory that makes woolen cloth and to have had profitable materials pass through one's hands in order to be able to consider a question of common sense and justice and to decide that the debate between the person selling and the one buying ought to be free?
It is clear that we are far from ignoring the importance of the role reserved for practical men in the conflict between common rights and privilege.
It is above all through these men that public opinion will be freed from its imaginary terrors. When a man like Mr. Bacot from Sedan comes forward to say: "I am a manufacturer of woolen cloth and I do not fear the risks if I am given the advantages of freedom"; when Mr. Bosson from Boulogne says: "I am a flax spinner, and if the restrictionist regime was not closing off my markets abroad and impoverishing my domestic customers by making my products more expensive, my spinning factory would prosper more"; when Mr. Dufrayer, a farmer, says: "On the pretext of protecting me, the restrictionist regime has so contrived things that the surrounding population consumes neither wheat, nor wool nor meat, with the result that I have to engage in the type of farming that suits only poor regions", we know the full effect that these words should be having on the general public.
When, following this, the matter comes up before the Legislature, the role of practical men will acquire an importance that is almost exclusive. It will no longer be a question of principle, but of action. There will be general agreement that an unjust and artificial situation has to be overturned so that we can get back to one that is equitable and natural. But where do we start? How far shall we go? To solve these problems of execution, it is clear that practical men, or at least those who have lined up to support the principle of liberty, will most have to be consulted.
Far be it for us, therefore, to think of rejecting the contribution made by specialists. You would need to have lost your mind if you failed to acknowledge the value of this assistance.
It is nonetheless true that, at the base of this conflict, there are questions that are predominant and primordial, which, if they are to be solved, have no need of the universal technical knowledge that people seem to require from us.
Is it for a lawmaker to balance the profits of various types of industry?
Can he do this without compromising the general good?
Can he, without injustice, increase the profits of some while decreasing those of others?
When endeavoring to do so, will he succeed in distributing his favors equitably?
In this same instance, will this operation not result in a dissipation of energy, owing to an inefficient management of production?
And is the evil not worse still if it is totally impossible to favor all types of industry equally?
In sum, are we paying a government to help us damage each other or, on the contrary, to stop us from doing so?"
To answer these questions, it is not in the slightest necessary to be an experienced ship owner, an ingenious mechanic or a first-class farmer. It is even less necessary to have an in-depth knowledge of the processes of all the arts and trades, since these processes bear no relation to the matter. Will people say, for example, that you have to know the cost price of woolen cloth to assess whether it is possible to compete with foreigners on equal terms? Yes, this is certainly necessary in the view of a protectionist regime, since the aim of this regime is to establish whether an industry is making a loss in order to have this loss borne by the general public. However, it is not necessary to the philosophy of free trade, since free trade is based on the following conundrum: Either your industry is profitable, and therefore protection is no use to you, or it is making a loss, in which case protection is hurting most people.
In what way, therefore, is a specialized survey essential, since whatever the result, the conclusion is always the same?
Let us suppose that we are dealing with slavery. People will doubtless agree that the question of what is right takes precedence over the question of what to do. We can understand that, in order to ascertain the best method of emancipation an inquiry is needed, but that implies that the question of right has been resolved. However, if it were a matter of debating the question of right before the public, if the majority was still favorable to the principle of slavery itself, would we be within our rights to silence an abolitionist by telling him: "You are not competent; you are not a plantation owner, nor do you own slaves."?
Why, then, are people opposed to those who combat monopolies on the grounds that they are not admissible in debate because they do not have monopolies?
Do the ship owners of Le Havre not notice that such claims of ineligibility will be turned against them?
If they are right in claiming that they have detailed knowledge of maritime matters, they doubtless do not claim to have universal knowledge. Well, according to their way of thinking, anyone who dares to speak out against a monopoly has first of all to supply proof that he has detailed knowledge of the industry on which the monopoly has been conferred. They tell us, for our part, that we are not capable of judging whether the law should become involved in making us overpay for transport, since we have never chartered ships. But in this case they would be responded to thus: "Have you ever operated a blast furnace, a spinning factory, a factory making woolen cloth or porcelain, or a farm? What right have you to defend yourself against the taxes that these industries are imposing on you?"
The tactics of the prohibitionists are to be admired. They ensure that, if the general public is duped,582 they are at least always certain of maintaining the status quo. If you are not part of a protected industry, they do not accept that you are competent. "You are just for fleecing, you cannot speak." If you are part of a protected industry, you will be allowed to speak, but only about your particular sector of interest, the only one with which you are deemed to be familiar. In this way, monopoly will never be opposed.583
Endnotes577 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 October 1846. See the glossary entries on "Le Moniteur industriel," "Mimerel," and "Association for the Defense of National Employment".
578 The Anti-Corn law League, which was successful in having the protectionist Corn Laws repealed in May 1846, was run and supported by individuals like Richard Cobden who was successful cotton manufacturer. See the glossary entries for "Cobden," "Anti-Corn Law League," and "The Corn Laws."
579 Antoine Odier (1766-1853) was a Swiss-born banker and manufacturer who was a Deputy (1827-37), president of the Chamber of Commerce of Paris and a leading member of the protectionist "Association pour la défense du travail national" (Association for the Defense of National Employment) on whose Central Committee he served as president (thus it was sometimes called "the Odier Committee" or the "Mimerel Committee" for short. See the glossary entries on "Odier," "Association for the Defense of National Employment," and "Mimerel Committee."
580 Bastiat was appointed Justice of the Peace in Mugron in May 1831. Mugron was in a remote agricultural area in the south west of France. See the glossary entry on "Mugron."
581 "The Declaration of Principles" of the Free Trade Association was published on 10 May 1846 and will be in Collected Works vol. 6. It can be found in Paillottet's edition of the Oeuvres complètes, vol. 2., pp. 1-4.
582 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."
583 (Paillottet's note) The author later pointed out the danger of a scientific classification that was solely based on the phenomena of production. See pages vol. VI, pp. 346-47. <TBK>.
T.160 (1847.12) Le Libre-Échange. Journal de l'Association pour la liberté des échanges. 1er année. 1846-1847. (Paris: Guillaumin and Chaix, 1847)↩
SourceT.160 (1847.12) Le Libre-Échange. Journal de l'Association pour la liberté des échanges. 1er année. 1846-1847. (Paris: Guillaumin and Chaix, 1847). Guillaumin published the first 52 issues of the journal in book form. The 52nd issue was 21 Nov. 1847, thus the book was probably published in Dec. 1847.
Text(insert HTML of file here)
T.161 "On the Export of Gold Bullion" (12 Dec. 1847, LE)↩
[CW4 draft 16 June, 2017] SourceT.161 (1847.12.12) "On the Export of Gold Bullion" (Sur l'exportation du numéraire), LE , 12 Dec. 1847, no. 3 (2nd year), p. 13. [OC2.21, pp. 112-16.] [CW4]
Editor's IntroductionDuring the eighteen months prior to the publication of this essay in the journal of the French Free Trade Association, Le Libre-Échange , Bastiat had written or spoken about the balance of trade on several occasions. He first touched upon it in the Introduction he wrote to his first book on Cobden and the League (July 1845) and then in the article "Balance of Trade" in JDE Oct. 1845 (which was later republished in ES1 6 under the same title). 832 Over the course of 1846 and 1847 when he began working full-time for the free trade movement he mentioned it in letters he wrote to the editors of newspapers, wrote articles on it for Le Libre-Échange , and discussed it in public speeches he gave for the Association. This essay on "The Export of Gold" was the last time he mentioned it except in passing for the next two years as the events of the Revolution of 1848 overtook him. He would not return to the topic until March 1850 when he wrote an article explicitly on "The Balance of Trade" for a journal which would also be republished as a pamphlet. 833
He clearly thought that the idea of the balance of trade was "radically false" and was just another economic sophism that needed to be debunked. He traced its origins back to an idea expressed by Montaigne that he had discussed several times before, namely that "One man's gain is another man's loss," an idea which Bastiat called "the root stock of sophisms". 834 He also thought that people who believed in the truth of Montaigne's principle would be inevitably drawn to the use of violence to expand their country's sales abroad and to reduce the sale of foreign goods in their own country. As he stated in Le Libre-Échange the previous February:
One theory that we believe to be radically false has dominated people's minds for centuries under the name of the mercantilist system . This theory, basing wealth not on the abundance of the means of satisfaction but in the possession of precious metals, inspired in nations the thought that in order to become wealthy two things were necessary: to buy as little as possible from others and to sell as much as possible to others . It was thought that this was the certain way to acquire the sole true treasure, gold, and at the same time to deprive one's rivals of it; in a word to place the balance of trade and power on one's side.
Buying little led to protective tariffs. The national market had to be protected, even by force, from foreign products that might have been able to enter and be traded for gold.
Selling a great deal led to imposing, even by force, (our) national products on foreign markets. Subjugated consumers were required. This led to conquest, domination, invasion and the colonial system.
A great many well meaning people continue to believe in the economic truth of this system, but we think it is impossible not to realize that, when practiced simultaneously by all nations, it places them in an inevitable state of war. It is clear that the actions of each are in conflict with the actions of all. It is a collection of perpetual efforts that contradict one another. It can be summarized in this axiom by Montaigne: "One man's gain is another man's loss." 835
In this essay he focuses on the idea that if a nation buys "too much" from other countries there will be net drain of gold which will have a harmful impact on the domestic economy. Bastiat debunks this notion by rejecting the idea that the " general balance of trade " of a nation has much meaning, and by claiming that the real gauge of a nation's overall wealth is determined by the balance of profit and loss of "each trader, taken individually." The key passage below where he state this is:
It is a fact that each trader, taken individually and very conscious of his own balance , takes not the slightest notice of the general balance of trade . Well, it is worth noting that these two balances assess things in a way that is so diametrically opposed that what one calls a loss , the other calls a profit, and vice versa .
Bastiat believes that the presence of money (or gold bullion) is in fact a distraction, that the real issue is the exchange of "services effectifs" (real or actual services) between individuals, where money is just a token or voucher to be used to claim other services at some future date. Each participant to a trade or exchange calculates their own personal "balance of trade" and this, Bastiat believed, was "a more faithful thermometer" of the true state of wealth and prosperity in a country than any calculation of a "national balance of trade."
The context of the concern about an "unfavourable balance of trade" was a combination of a stock market recession caused by speculation in railroad stock and a series of poor harvests in Ireland and France. Britain suffered a financial crisis between 1846 and 1847 as a stock market boom spurred by speculative sales in railroad stocks came to an end. As de Soto observes,
As of 1840 credit expansion resumed in the United Kingdom and spread throughout France and the United States. Thousands of miles of railroad track were built and the stock market entered upon a period of relentless growth which mostly favored railroad stock. Thus began a speculative movement which lasted until 1846, when economic crisis hit in Great Britain. It is interesting to note that on July 19, 1844, under the auspices of Peel, England had adopted the Bank Charter Act, which represented the triumph of Ricardo's currency school and prohibited the issuance of bills not backed 100 percent by gold. Nevertheless this provision was not established in relation to deposits and loans, the volume of which increased five-fold in only two years, which explains the spread of speculation and the severity of the crisis which erupted in 1846. The depression spread to France and the price of railroad stock plummeted in the different stock exchanges. 836
Bastiat discusses the balance of trade in other works listed below:
- in the Introduction to his first book on Cobden and the League (July 1845)
- the article "Balance of Trade" in JDE Oct. 1845 which was later republished in ES1 6 under the same title (CW3, pp. 44-49); also ES1 14 "Conflict of Principles" (c. 1845)
- two letters written in 1846: one to the Minister of the Interior M. Tanneguy-Duchâtel which was published in Mémorial bordelais , 30 June, 1846] [OC7.24, 114] [CW6]; and "To the Editors of La Presse," Courrier français , 2 Sept., 1846 [OC7.33, p. 148] [CW6]
- several references in 1847 in articles written for Libre-échange or in speeches given for the French Free Trade Association, and in a letter to Richard Cobden
- "England and Free Trade," Libre-Échange , 6 Feb. 1847 [OC2.32, p. 177] [CW6]
- Letter 80. To Richard Cobden (July, 1847) [CW1.80]
- "Plan for a Speech on Free Trade to be given in Bayonne" (c. 1847) [OC7.38, p. 178] [CW6]
- "The League's Second Campaign," Libre-Échange , 7 Nov. 1847 [OC3.33, pp.449-58} [CW6]
- "On the Export of Gold Bullion," Libre-Échange , 11 Dec. 1847 [OC2.21, p. 112] [CW6]
- nothing in 1848 (no doubt because of the distraction of the Revolution and his work in the Chamber of Deputies
- he returns to it briefly in 1849 in 3 pamphlets
- Protectionism and Communism (January 1849) [OC4.9, p. 504] [CW2.12, pp. 235-65]
- Peace and Freedom or the Republican Budget (February 1849) [OC5.9, p. 407] [CW2.15, pp. 282-327]
- "Balance of Trade," (29 March 1850) [OC5.8, pp. 402-406] [CW4][see below, pp. 000]
On the subject of the financial and commercial situation of Great Britain, Le National 837 expressed itself in the following words:
The crisis must have been all the more serious because foreign products and cereals were not being traded for English products. The balance between imports and exports was totally to Great Britain's disadvantage and the difference was paid in gold. This being the case, it might have been opportune to examine the share of responsibility that can be laid at the door of free trade in this state of affairs but we will do this later. For the moment we will be content to record that the outworn idea that is known as the balance of trade, and that is incidentally so despised and scorned by a certain school of economists, is nevertheless worth being taken into consideration, and when Great Britain compares what it has imported with what it has exported in the last year, it has to see that the finest theories are powerless when faced with the simple fact that when you buy wheat from Russia and Russia does not take English calico in exchange, this wheat has to be well and truly paid for in cash. Well, once the wheat is consumed and the cash exported, what is left to the purchaser? His calico, perhaps, that is to say, a value for which he has no use and which is rotting in his hands.
We would be curious to know if Le National effectively sees the balance of trade as an outworn idea or if the object of this expression, used ironically, is to pour scorn on a certain school that allows itself to see the balance of trade effectively as an outworn idea . "The question is worthy of being taken into consideration", says Le National . Yes, it is certainly worthy of being taken into consideration, and it is for this reason that we would have liked this broadsheet to be a little more explicit.
It is a fact that each trader, taken individually and very conscious of his own balance , takes not the slightest notice of the general balance of trade . Well, it is worth noting that these two balances assess things in a way that is so diametrically opposed that what one calls a loss , the other calls a profit, and vice versa .
So the trader who has bought 10,000 francs' worth of wine in France and sold it for twice this price in the United States, receiving in payment and importing into France 20,000 francs' worth of cotton, considers that he has done good business. And the balance of trade teaches us that he has lost his capital in its entirety .
We can see how important it is to know what to refer to with regard to this doctrine, for if it is accurate traders tend irrevocably to ruin themselves and ruin the country, and the State should be in a hurry to put them all into a condition of guardianship, which is what it does.
This is not the only reason that obliges any political writer worthy of his salt to have an opinion on this famous balance of trade, for depending on whether he believes in it or not he is necessarily led to a policy that is quite different.
If the theory of the balance of trade is true, if national profit consists in increasing the mass of cash, as little as possible ought to be bought abroad in order not to allow silver and gold to leave the country, and a great deal sold in order to allow these coins to enter. To do this, you need to prevent, restrict, and prohibit. So, there is no freedom within, and as each nation adopts the same measures, hope lies only in the use of force to reduce foreigners into the harsh situation of being consumers or tributaries . This leads to conquests, colonies, violence, war, huge armies, powerful navies, etc.
If, on the other hand, the balance of an individual trader is a more faithful thermometer than the balance of trade for any given value that is exported from France, it is to be desired that as great a value as possible should be imported, that is to say that the figure for imports should outweigh as much as possible those for exports in the records of the Customs Service. Well, as all the efforts of traders have this aim in view, as long as this is in line with the general good, all that is needed is to leave them alone . 838 Freedom and peace are the inevitable consequences of this doctrine.
As the view that the exporting of cash constitutes a loss is widespread, and disastrous in our opinion, may we be allowed to take the opportunity of saying something about it?
A man who has a trade, for example a hatter, provides a real service 839 to his customers. He protects their heads from the sun and rain and in return he expects to receive in turn real services in the form of food, clothing, accommodation, etc. For as long as he keeps the écus that have been given to him in payment, he has not yet received these real services . What he holds in his hands is, so to speak, the vouchers that give him the right to receive these services. Proof of this is that if he personally and his descendants were to be condemned never to use these écus, he certainly would not take the trouble to make hats for others. He would devote his own work to satisfying his own needs. This shows us that, through the intervention of money, the barter of one service for another is broken down into two exchanges. First of all a service is provided for which money is received and subsequently money is paid for a service that is received. It is at this point that the barter is completed.
This is also true for nations.
When there are no gold and silver mines in a country, as is the case for France and England, it is necessary to provide real services to foreigners in order to receive money from them. Foreigners are fed, their thirst is quenched, and they are provided with furniture, etc. but for as long as we have only their cash we have not yet received the real services to which we are entitled. We have to achieve the satisfaction of the genuine needs we desire when we work. The very presence of this gold proves that the nation has provided satisfaction over and above genuine needs and that it is a creditor for services that are equivalent to those it has provided. Therefore, it is only by exporting this gold in return for consumer products that it is efficiently paid for its work. 840
In the end, nations among themselves, just like individuals among themselves, provide reciprocal services to each other. Cash is merely an ingenious means of facilitating this barter of services . To hinder, whether directly or indirectly, the exporting of gold is to treat the people in the same way as the hatter who is forbidden to draw from society, by spending his money, services that are as real as those he has provided to it.
Le National confronts us with the current crisis in England, but Le National has fallen into the same error as La Presse , 841 by talking about the exporting of cash without taking into account the loss of harvests or even mentioning them.
The day on which the English, after having ploughed, hoed, and sown their fields, saw their wheat destroyed and their potatoes rot, 842 it was determined that they had to suffer one way or another. The form this suffering should take naturally, in view of the nature of the phenomenon, is starvation . Fortunately for them, they had previously provided services to other nations in return for the vouchers known as money, which give them the right to equivalent services at a time that is suitable. They used these vouchers in this situation. They handed over gold and received wheat, and instead of manifesting itself in the form of starvation , suffering manifested itself in the form of impoverishment , which is less harsh. However, this impoverishment has not been caused by the exporting of cash, but by the loss of harvests.
This is exactly like the case of the hatter we mentioned just now. He sold a great many hats and, by depriving himself, succeeded in accumulating gold. His house burnt down. He was obliged to part with his gold in order to rebuild it. He was the poorer for it. Was this because he had parted with his gold? No, but because his house burnt down. A disaster is a disaster. It would not be a disaster if you were as rich after it as before.
"Once the wheat has been consumed and money exported, what is left for the purchaser?," asks Le National. What is left for him is not to have died of hunger, which is something significant.
In our turn, we ask: If England had not consumed this wheat and exported this money, what would be left for it? Corpses.
832 "Balance of Trade"(JDE Oct. 1845), CW3, pp. 44-49.
833 Spoliation et loi, par M. F. Bastiat. Membre correspondant de l'Institut. Représentant du peuple à l'Assemblée nationale (Paris: Guillaumin, 1850), IV. Balance du Commerce, pp. 54-61.
834 ES3 15 "One man's gain is another man's loss," in CW3, pp. 341-43.
835 "England and Free Trade," Libre-Échange , 6 Feb. 1847 [OC2.32, p. 177] [CW6]
836 Jesús Huerta de Soto, Money, Banking, and Economic Cycles. Third Edition. Translated by Melinda A. Stroup (Auburn, Alabama: Ludwig von Mises Institute, 2012), p. 484.
837 Le National (1830-1851) was an important liberal and increasingly republican newspaper during the July Monarchy. It was founded by Adolphe Thiers, François-Auguste Mignet, and Armand Carrel.
838 Bastiat uses phrase "laissez faire."
839 In late 1847 when this article was written Bastiat was developing his idea that trade was "the mutual exchange of services" rather than the exchange of "goods for goods" or "goods for money." He is still deciding upon his preferred terminology, using the phrase "services effectifs" (real or actual services) here 5 times, but soon afterwards using the phrase "services réels" (real services) in "The Physiology of Plunder" ES2 (Jan. 1848) and in later writings such as Economic Harmonies . The opposite to " real services" were "services dérisoires" (derisory or paltry services) or "des services fictifs, et souvent pis" (imaginary services, or even worse). See the glossary entry on "Service for Service."
840 Bastiat explains his theory of money at greater length in "Damn Money!" (April 1849), below pp. 000.
841 La Presse (1836-) was a widely distributed daily newspaper, created in 1836 by the journalist, businessman, and politician Émile de Girardin (1806-81).
842 Bastiat is referring to the potato blight which caused crop failures and starvation in Ireland beginning in 1845. Poor harvests in France in 1846-47 caused the price to bread to rise dramatically. Wheat and other grains had to be imported from places like Odessa in Russia.
T.162 (1847.12.12) "The Man who asked Embarrassing Questions" (LE, Dec. 1847)↩
SourceT.162 (1847.12.12) "The Man who asked Embarrassing Questions" (L'indiscret. - Questions sur les effets des restrictions), Le Libre-Échange, 12 Dec. 1847, no. 3 (2nd year), p. 20. [OC2, pp. 435-46.] [CW3 - ES3.12]
Publishing history- Original title, place and date of publication: "L'indiscret" (The Man who asked Embarrassing Questions) [12 December 1847, 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. 435-46.
- Previous translation: [none]
Protection for national industry! Protection for national employment! You have to have a very warped mind and a heart that is truly perverse to decry a notion that is so fine and good.
Yes, certainly, if we were fully convinced that protection, as decreed by the Chamber with its double vote584, had increased the well-being of all Frenchmen, including ourselves, if we thought that the ballot-box of the Chamber with its double vote that is more miraculous than the urn in Cana,585 had operated the miracle of the multiplication of foodstuffs, clothing, the means of work, transport and education, in a word, everything that composes the wealth of the country, we would be both foolish and perverse to demand free trade.
And why, in this case, would we not want protection? Well, Sirs, demonstrate to us that the favors it accords to some are not given at the expense of others; prove to us that it does good to everyone, to landowners, farmers, traders, manufacturers, artisans, workers, doctors, lawyers, civil servants, priests, writers or artists. Prove this to us and we promise you that we will align ourselves under its banner for, whatever you say, we are not yet mad.
And, as far as I am concerned, to show you that it is not through caprice or thoughtlessness that I have engaged myself in the struggle, I will tell you my story.
Having read widely, meditated deeply, gathered a host of observations, followed the fluctuations in the market in my village from week to week and carried out a lively correspondence with a number of traders, I finally arrived at the knowledge of this phenomenon:
WHEN SOMETHING IS SCARCE, ITS PRICE RISES.
From which I considered I might, without excessive boldness, draw the following conclusion:
PRICES RISE WHEN AND BECAUSE THINGS ARE SCARCE.
With this discovery in my pocket, which ought to bring me as much fame as Mr. Proudhon expects from his famous formula: Property is theft,586 I mounted my humble steed like a new Don Quixote and went off to campaign.
First of all, I introduced myself to a wealthy landowner and asked him:
"Sir, be so good as to tell me why you are so attached to the measure taken in 1822 by the Chamber with its double vote with regard to cereals?"587
"Heavens, it is obvious! It is because it enables me to sell my wheat better."
"Therefore you think that, between 1822 and 1847, the price of wheat has on average been higher in France thanks to this law than it would have been without it?"
"Yes, certainly I think so; if not, I would not support it."
"And if the price of wheat has been higher, it must have been because there has not been as much wheat in France under this law as without it, for if it had not affected quantity it would not have affected the price."
"That goes without saying."
I then drew from my pocket a notebook on which I wrote these words:
"On the admission of the landowner, for the last twenty-nine years588 in which the law has existed there has, in the end, been LESS WHEAT in France than there would have been without the law."
I then went to a cattle farmer.
"Sir, would you be so good as to tell me why do you support the restriction placed on the entry of foreign steers by the Chamber with its double vote?"
"It is because, through these means, I sell my steers for a higher price."
"But if the price of steers is higher because of this restriction, this is a certain sign that fewer steers have been sold, killed and eaten in the country in the last twenty-seven years than would have been the case without the restriction?"
"What a question! We voted for the restriction solely for this reason."
I wrote the following words in my notebook:
"On the admission of the cattle-breeder, for the last twenty-seven years in which the restriction has existed, there have been FEWER STEERS in France than there would have been without the restriction."
I then hurried off to an ironmaster.
"Sir, would you be so good as to tell me why you defend the protection that the Chamber with its double vote has accorded to iron so valiantly?"
"Because, thanks to it, I sell my iron for a higher price."
"But then, also thanks to it, there is less iron in France than if it had not meddled in this, for if the quantity of iron on offer had been equal or greater, how would the price have been higher?"
"It is quite straightforward that the quantity is less, since the precise aim of this law was to prevent an invasion."
And I wrote on my tablets:
"On the admission of the ironmaster, for twenty-seven years, France has had LESS IRON through protection than it would have had through freed trade."
"It is all starting to become clear", I said to myself, and I hurried off to a woolen cloth merchant.
"Sir, would you allow me a small item of information? Twenty-seven years ago, the Chamber with its double vote, of which you were a member, voted for the exclusion of foreign woolen cloth. What was its and your reason for doing this?"
"Do you not understand that it is so that I can make more profit from my woolen cloth and become rich more quickly?"
"That was my guess. But are you sure that you have succeeded? Is it certain that the price of woolen cloth has been higher during this period than if the law had been rejected?"
"There can be no doubt of this. Without the law, France would have been swamped with woolen cloth and the price would have become very low; this would have been a major disaster."
"I don't yet see that it would have been a disaster, but be that as it may, you must agree that the result of the law has been to ensure that there has been less woolen cloth in France?"
"This has not been not only the result of the law but its aim."
"Very well", said I and I wrote in my notebook:
"On the admission of the manufacturer, for the last twenty-seven years there has been LESS WOOLEN CLOTH in France because of prohibition."
It would take too long and be too monotonous to go into further detail on this curious voyage of economic exploration.
Suffice it to say that I visited in succession a shepherd who sold wool, a colonial plantation owner who sold sugar, a salt manufacturer, a potter, a shareholder in coalmines, a manufacturer of machines, farm implements and tools, and everywhere I obtained the same reply.
I returned home to review my notes and put them into order. I can do no better than to publish them here.
"For the last twenty-seven years, thanks to the laws imposed on the country by the Chamber with its double vote, there has been in France:
Less wheat,
Less meat,
Less wool,
Less coal,
Fewer candles,
Less iron,
Less steel,
Fewer machines,
Fewer ploughs,
Fewer tools,
Less woolen cloth,
Less canvas,
Less yarn,
Less calico,
Less salt,
Less sugar,
And less of all the things that are used to feed, clothe and house men, to furnish, heat and light their dwellings, and to fortify their lives.
By the Good Lord in Heaven, I cried, since this is the case, FRANCE HAS BEEN LESS WEALTHY.
In my soul and conscience, before God and men, on the memory of my father, mother and sisters, on my eternal salvation, by all that is dear, precious, sacred and holy on this earth and in the next, I believed that my conclusion was accurate.
And if anyone proves the contrary to me, not only will I abandon any argument on these subjects but I will abandon any argument on anything at all, for what trust might I place in any argument if I was unable to have confidence in this?
19 December 1847
"Dear reader, you will recall clearly …"
"I remember nothing at all."
"What! One week is enough to erase from your memory the story of this famous campaign!"
"Do you think that I am going to meditate on it for a whole week? That is a very tactless presumption."
"I will start it again then."
"That would be to heap one tactless thing on another."
"You are putting me in a difficult position. If you want the end of the tale to be intelligible, you should not lose sight of the beginning."
"Summarize it."
"Very well. I was saying that on my return from my initial economic peregrination, my notebook said the following: "According to the statements of all the protected producers, as a result of the restrictive laws of the Chamber with its double vote, France has had less wheat, less meat, less iron, less woolen cloth, less canvas, fewer tools, less sugar and less of everything than it would have had without these laws."
"You are putting me back on track. These producers even said that this was not only the result but the aim of the laws passed by the Chamber with its double vote. These laws aimed to raise the price of products by making them scarce."
"From which I deduced this dilemma: Either these laws have not made these products scarce, and in this case they have not made them more expensive and they have failed in their aim, or these laws have made these products more expensive, and in this case they have made them scarce and France has been less well fed, clothed, furnished, heated and supplied with sugar."
With total faith in this line of argument, I undertook a second campaign. I went to see the wealthy landowner and asked him to glance at my notebook, which he did somewhat unwillingly.
When he had finished reading it, I said to him, "Sir, are you quite sure that, as far as you are concerned, the excellent intentions of the Chamber with its double vote have succeeded?"
"How could they fail to succeed?" he replied, "Do you not know that the better the price at which I sell my harvest, the wealthier I am?"
"That is quite likely."
"And do you not understand that the less wheat there is in the country, the better the price for my harvest?"
"That is also quite likely."
"Ergo (Therefore) …"
"It is this therefore that worries me and this is the source of my doubts. If the Chamber with its double vote had stipulated protection for you alone, you would have become wealthy at the expense of others. However, it wanted others to become wealthy at your expense, as this notebook shows. Are you quite certain that the balance of these illicit gains is in your favor?"
"I like to think so. The Chamber with its double vote was peopled with major landowners who were not blind to their own interests."
"In any case, you will agree that, taking all these restrictive measures, not all are beneficial to you and that your share of illicit gain is sorely undermined by the illicit gain of those who sell you iron, ploughs, woolen cloth, sugar, etc."
"That goes without saying."
"What is more, I ask you to weigh this consideration attentively: If France has been less wealthy, as my notebook shows …"
"An indiscrete notebook, indeed!"
"If", I said, "France has been less wealthy, it must have eaten less. Many people who would have eaten wheat and meat have been reduced to living off potatoes and chestnuts. Is it not possible that this reduction in consumption and demand has influenced the price of wheat downwards while your laws sought to influence it upwards? And as this occurrence is in addition to the tribute that you pay to ironmasters, the shareholders in mines, the manufacturers of woolen cloth, etc., does it not in the end turn the result of the operation against you?"
"Sir, you are subjecting me to an interrogation that is very intrusive. I enjoy protection and that is enough for me; your subtle arguments and generalizations will not make me change my mind."
With my tail between my legs, I mounted my horse and went to see the manufacturer of woolen cloth.
"Sir," I said to him, "what would you think of an architect who, in order to raise the height of a column took from the base the material to add to the summit?"
"I would order for him a bed in the Bicêtre asylum.589"
"And what would you think of a manufacturer who, in order to increase his output, ruined his customers?"
"I would send him to keep the architect company."
"Allow me then to ask you to glance at this notebook. It contains your considered position and that of many others, from which it clearly emerges that the restrictive laws enacted by the Chamber with its double vote, of which you were a member, have made France less wealthy than it would have been without these laws. Has it never occurred to you that if monopoly hands over to you the consumer market for the entire country, it ruins consumers, and that, if it guarantees you the national market, its first effect is to prohibit you from entering the majority of your markets abroad, and secondly to restrict considerably your markets within the country because of the impoverishment of your customer base?"
"That is indeed a cause of the reduction to my profits, but the monopoly on woolen cloth, all by itself, has not been enough to impoverish my customers to the point where my loss exceeds my profit."
"I ask you to consider that your customers are impoverished not only by the monopoly on woolen cloth but also, as is shown in this notebook, by the monopoly on wheat, meat, iron, steel, sugar, cotton, etc."
"Sir, your insistence is becoming indiscrete. I do my business; let my customers do theirs."
"That is what I will be advising them to do."
And, thinking that the same welcome would be in store for me by all those being protected, I dispensed with further visits. "I would be more fortunate," I told myself, "with those who are not protected. They do not make the laws, but they do influence public opinion, since they are by far the greatest in number. I will go, therefore, to see traders, bankers, brokers, insurance agents, teachers, priests, authors, printers, joiners, roofers, wheelwrights, blacksmiths, masons, tailors, hairdressers, gardeners, millers, milliners, lawyers, attorneys and in particular, the countless class of men who have nothing in this world other than the strength of their arms."
As it happened luck was on my side, and I came across a group of workers.
"My friends," I said to them, "this is a valuable notebook. Would you please cast a glance on it? As you can see, according to the depositions of those who are being protected themselves, France is less wealthy as a result of the laws passed by the Chamber with its double vote than it would be without these laws."
A worker. "Are you certain that the loss falls on our shoulders?"
"I do not know, " I replied, "that is what needs to be examined; what is certain is that it has to fall on someone. Well, those protected claim that it does not affect them and so it must, then, affect those who are not protected."
Another worker. "Is this loss very large?"
"I think it must be enormous for you; since those protected, while admitting that the effect of these laws is to reduce the mass of wealth, claim that, although the mass is smaller, they take a larger share of it, thus incurring a loss twice.590
The worker: "How much do you reckon it is?"
"I cannot assess it in figures, but I can use figures to put across my thought. Let us take the wealth that would exist in France without these laws to be 1,000 and the share taken by those protected to be 500. That of those not protected would also be 500. Since it is accepted that restrictive laws have reduced the total, we can take it to be 800, and since those protected claim that they are richer than they would have been without these laws, they take more than 500. Let us take this to be 600. What is left to you is just 200 instead of 500. This shows you that, in order to earn 1 they make you lose 3."
The worker: "Are these figures accurate?"
"I do not claim they are, all I want is to make you understand that if out of a total that is smaller, those protected take a larger share, those not protected bear all the weight not only of the total decrease but also of the excess amount that those protected allocate to themselves."
The worker: "If this is so, should the distress of those not protected not spill over591 on to those protected?"
"I think so. I am convinced that in the long run the loss tends to spread over everyone. I have tried to make those protected understand this but have not succeeded in doing so."
Another worker: "Although protection is not directly given to us, we are told that it reaches us, so to speak, by the ricochet or flow on effect.592"
"Then all our arguments have to be turned upside down, though they must continue to start from this fixed and acknowledged point, that restriction reduces total national wealth. If, nevertheless, your share is larger, the share of those protected is all the more undermined. In this case, why are you demanding the right to vote? It is quite clear that you ought to leave to such disinterested men the burden of making the laws."
Another worker: "Are you a democrat?"
"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."593
"How is it that the leaders of the democratic party are against you?"
"I have no idea."
"Oh! They paint you in a fine light!"
"And what are they capable of saying?"
"They say that you are one of the learned men; they also say that you are right in principle."
"What do they mean by that?"
"They simply mean that you are right, that restriction is unjust and causes damage, that it reduces general wealth, that this reduction affects everyone and in particular, as you say, the working class,594 and that it is one of the things that prevent us and our families from increasing the level of our well-being, education, dignity and independence. They add that it is a good thing that this is the case, that it is fortunate that we suffer and are misled as to the cause of our sufferings and that the triumph of your doctrines would, by relieving our misery and dissipating our preconceived ideas," diminish the chances of a great war which they are impatiently awaiting." 595
"Do they align themselves thus on the side of iniquity, error and suffering, all to have a great war?"
"They produce admirable arguments on this subject."
"In that case, my being here is rather tactless and I withdraw."
584 The "Law of the Double Vote" was introduced on 29 June 1820 to benefit the ultra-monarchists who were under threat after the assassination of the Duke de Berry in February 1820. The law was designed to give the wealthiest voters two votes so they could dominate the Chamber of Deputies with their supporters. 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 called them the "classe électorale" (electoral or voting class). See ES3 V. "On Moderation," pp. ??? See the glossary entry on "The Chamber of Deputies."
585 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.
586 Bastiat is referring to J.P. Proudhon's work Qu'est-ce que la propriété? Ou recherches sur le principe du droit et du gouvernement (1841). Proudhon answered his own question with the statement that "property is theft". See the glossary entry on "Proudhon."
587 There were two periods when French tariff policy was discussed and regulations introduced during the Restoration and the July Monarchy. The first was in 1822 under the Restoration, which created the modern alliance of powerful interest groups which benefited from protectionism; and a second in 1834 under the July Monarchy which came from a government inquiry and its subsequent report. See the glossary entry on "French Tariff Policy."
588 Bastiat is inconsistent with his counting in this article. Sometimes he says 27 years and other times he says 29 years. The tariffs were revised in 1822, so if he were counting from this point the figure should be 25 years as this article was published in December 1847.
589 The Bicêtre hospital and asylum was located on the southern outskirts of Paris. It was originally intended to care for old and sick soldiers but became an asylum for the insane as well as political and social "undesirables. See the glossary entry on "Bicêtre."
590 See Bastiat's discussion of the principle of "the double incidence of loss" in ES3. IV. "One Profit versus Two Losses", p. ??? (above). The "Double Incidence of Loss" is a theory first formulated by the anti-corn law campaigner Colonel Perronet Thompson (1783-1869) in 1834-36 and taken up by by Bastiat in 1847 in which it is argued that tariff protection or subsidies to industry result in a directly observable and obvious profit for one industry (and its workers) but at the expense of two other participants in the market. These other participants (or would be participants) suffer an equal loss to the benefit gained by the first party: the consumer loses by having to pay a higher price for a good which he or she could have bought more cheaply from another supplier (often foreign), and unknown third parties also lose because the consumer who was forced to pay more for a good which is protected or subsidized has that much less to spend on other goods and services. Hence there is one party which benefits and two which lose out to the same amount, i.e. "the double incidence of loss." The theory of "the double incidence of loss" should be seen as an early and simpler version of the theory which was later to become "the ricochet (or flow on) effect." See the glossary entries on "Perronet Thompson" and the "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."
591 Paillottet in his note tells as that Bastiat is developing his theory of ricochet effects which he was to expand in late 1847 and early 1848 into a more fully thought out theory. He suggests where the reader can find more of his scattered thoughts on the matter. Bastiat uses a synonym for "flow on effects" in this sentence, "rejaillir" (spill or splash over, cascade).
592 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."
593 See Bastiat's list of ideals suitable for the 1840s, which might be phrased as follows: "liberty, equality, fraternity, tranquility, prosperity, frugality, and stability." In ES2 III. "Two Principles," p. ??? See the Appendix on "Bastiat's Republicanism."
594 Bastiat uses the expression "la classe ouvrière" (the working class).
T.163 "A Speech on intellectual property given to the Publishers Circle" (16 Dec. 1847, Travail int.)↩
[CW4 draft 16 June, 2017] SourceT.163 (1847.12.16) "A Speech given to the Publishers Circle (on intellectual property)" (Huitième discours, à Paris : Discours au Cercle de la librairie) 16 Dec. 1847. Later published as "La propriété littéraire au Cercle de la librairie; Discours de M. Frédéric Bastiat" (Literary Property. Speech given to the Publisher's Circle), Le Travail intellectuel , no. 6, samedi 15 janvier 1848, pp. 4-6. [OC2.549b, pp. 328-39.] [CW4]
Editor's IntroductionThis is the second of three pieces on literary and intellectual property rights Bastiat wrote. 843 This speech reflects Bastiat's association with Hippolyte Castille whom he got to know after his arrival in Paris in 1845. Castille was a journalist at the Courrier français (where Molinari also worked) which had favourably reviewed his book on Cobden and the League. As their friendship developed Bastiat was invited to attend Castille's regular Soirée at his home on 79 Saint Lazarus Street which many radicals, liberals, and economists also attended. By late 1847 when Castille began a journal to defend "Intellectual Labour" ( Le Travail intellectuel ) Bastiat agreed to lend his name to the endeavour as a "collaborator."
There are several reasons why the issue of intellectual property rights came up at this time. The first is that Lamartine, himself a successful author and poet, had raised the matter in the Chamber of Deputies in 1841 when he put forward a proposal to extend the author's exclusive ownership of a work to a period of 50 years after their death. A debate took place on 13 March 1841 and Lamartine's proposal was decisively defeated. 844 It should be noted that Bastiat, Molinari, and Castille were all journalists who made a precarious existence by selling their writing to journals and newspapers. They did not have steady and secure jobs in schools or colleges so they had a vested interest is protecting the value of their own intellectual labour (although Bastiat was a landowner in Gascony and did have a steady income from his sale of wine and land rents to supplement his journalism in Paris). Molinari wrote a very moving and impassioned plea for the rights of journalists like him to own their own work in an early lecture in his course on political economy which he had begun giving in the fall of 1847 at the Athénée royal. In a wry aside, he wonders about the possibility of a magician one day creating "un automate-journaliste" (a mechanical journalist) which would take the drudgery and hard work out of being a journalist but which also make it possible for owners of newspapers and journals to dispense with having to employ human writers to write their material. Before that time arrived, Molinari wanted ownership of the products of both his creativity and this drudgery and any financial rewards which might come from this. 845
The second is that as industrialisation began to take off in France there arose the problem of protecting and thus profiting from industrial patents and trade marks, especially for designs for goods in which French industry specialised such as elaborate designs for textiles and bronze work. This was a topic of some debate among the economists, a summary of which can be found in several articles in the DEP. 846 They were divided into two opposing groups: those who believed in an "absolute" property right of ideas in perpetuity (such as Castille, Molinari, Bastiat, Jobard) and those who believed in a fixed period of years of exclusive ownership after which the ideas passed into the public domain (Lamartine, Louis Wolowski, Charles Renouard, Charles Coquelin).
A third reason was the criticism launched by socialists like Louis Blanc against all forms of private property, including intellectual, artistic, and industrial property. Bastiat addressed many of the criticisms of the socialists in the dozen or so anti-socialist pamphlets which he wrote from late 1848 to mid-1850. Here he focusses on the chapter dealing with literary property in Blanc's 4th edition of The Organisation of Labour which appeared in 1845 and intensified the growing socialist critique of all forms of property immediately before the Revolution. 847 Socialists like Blanc wanted to "organize" everything cooperatively under the guiding hand of the state. For example, industry would be organised into "national workshops" and literary production would have its own system of state regulation and control. Blanc wanted to organise the production of books as he did all other areas of economic activity which he describes in Part I of "The Organization of Labour". Instead of "National or Social Workshops" where all industrial work would be done cooperatively and workers would be paid out a common pool organised by the state, intellectual work such as book writing, publishing, and sales would be organised by a national "librairie sociale" (social publishing house). The state would set the prices of books (with more serious and important books selling for less than more frivolous books), "un comité d'hommes éclairés" (committee of enlightened men) would oversee the selection and payment of authors, and the National Assembly would appoint every year a citizen who would audit the activities of the Social Publishing House. 848
Bastiat was invited to speak at a meeting of an association of Paris publishers and book sellers on 16 November 1847 on the topic of literary property rights in the light of these concerns. He was part of delegation of economists who also were present, such as Joseph Garnier, the editor in chief of the Journal des Économistes , Gustave de Molinari who was teaching economics at the Athénée royal, 849 and Alcide Fonteyraud who was translating and editing the works of David Ricardo 850 for the Guillaumin publishing firm. 851 He took the opportunity not only to talk about a topic which was dear to the hearts of the publishers (as counterfeiting from Belgium and Switzerland was widespread in the book industry) but also to place literary property rights in the broader context of natural rights to property in general. This speech is thus unusual in that it is one of the few places where Bastiat gives us an account of his own understanding of property rights as natural rights inherent in human nature (man is born a property owner, at least in their own personal and faculties), 852 the historical origin of property (based upon the work done by Charles Comte in the 1820s and 1830s), 853 its evolution and corruption under the Old Regime, and the changes (both good and bad) which were introduced during the Revolution of 1789.
In his typical fashion, Bastiat was able to insert an anti-military although still patriotic twist into his conclusion when he stated:
I want France increasingly to retain and extend the legitimate and glorious supremacy of its beautiful language which, more than its bayonets, will carry the principles of our Revolution to the four corners of the world.
It should be noted that the stenographic report of Bastiat's lecture which was published in Le Travail intellectual also included some comments and audience reactions which are provided in brackets.
Text16 December 1847
Sirs,
One of my friends who was present at a recent session of the Academy of Moral and Political Science 854 told me that when the conversation turned to property , which, as you know, in one form or another is frequently attacked these days, 855 one of those present summed up his ideas in the phrase: Man is born a property owner . 856 This phrase, Sirs, I am pleased to repeat here as being the most forceful and accurate expression of my own thought.
Yes, man is born a property owner , that is to say, property is the result of the way he organizes his life.
People are born property owners, for they are born with needs that have to be satisfied in order for them to develop, advance, and even live, and they are also born with a set of abilities in line with these needs.
They are thus born having property in their person and their faculties. 857 It is therefore ownership of their person that leads to the ownership of things, and it is the ownership of their faculties that leads to the ownership of what they produce.
The conclusion from this thinking is that property is as natural as the very existence of man.
Is this also true when rudiments of this can be seen in animals themselves? For as long as there is an analogy between their needs and faculties and ours there has also to be one in the necessary consequences of these faculties and needs.
When a swallow gathers pieces of straw and moss and cements them together with a little mud to form a nest, we do not see its fellows snatching away the fruit of its work.
In the same way, property is acknowledged in primitive tribes. 858 When a man has gathered a few branches of trees and made bows or arrows from them, when he has devoted time taken from work that is more immediately useful to do this, and inflicted hardship on himself in order to equip himself with weapons, the entire tribe recognizes that these weapons are his property, and common sense dictates that, since they have to be useful to someone and produce a benefit, it is only natural that this should go to the person who has taken the trouble to make them. A stronger man is certainly able to snatch them away, but this would result only in rousing general indignation, and it is precisely to prevent such theft more effectively that governments have been established.
This, Gentlemen, shows that the right to property is prior to the law. It is not law that has given rise to property but on the contrary property that has given rise to law. This observation is important, for it is very common, especially among lawyers, for the origin of property to be attributed to law, from which we derive the dangerous consequence that lawmakers can overturn everything with perfect peace of mind. This mistaken notion is at the root of all the socialist plans for organization with which we are inundated. On the contrary it has to be said that law is the result of property, and property the result of the way the human race is organized.
The circle of property is expanding and consolidating as civilization advances. The weaker, the more ignorant, excitable, and violent the human race is, the more property is restricted and uncertain.
Thus in the primitive tribes I mentioned a moment ago, although the right to property is acknowledged, the appropriation of land is not; the tribe benefits from it in common. It is barely the case that a certain area of land is recognized as being the property of each tribe by the neighboring tribes. That recognition requires a greater degree of civilization and the observation of what the other peoples are doing.
What happens then? In the primitive state, since land is not personal property, everyone spontaneously gathers the benefits it provides but nobody thinks of working it. In these places, the population is few in number, poor, and decimated by suffering, disease, and famine.
Among nomadic peoples, the tribes benefit in common from a determined area; at least herds can be raised. The land is more productive and the population greater in number, stronger, and more advanced.
Among civilized nations, property has breached the final barrier; it has become individual. Each person, in the certainty of gathering the fruits of his labor, makes the land produce all it can. The population increases in number and wealth.
In these various social conditions, the law follows these phenomena, and does not precede them. It regularizes relationships and brings back to the law those who stray from it, but it does not create these relationships.
Gentlemen, I cannot refrain from drawing your attention for a moment to the consequences of this personal right to property linked to the land.
At the time appropriation takes place, the population is very sparse compared to the extent of the land; each person is therefore able to fence an area as large as he is able to cultivate without causing any harm to his brethren, since there is plenty of land for everyone. Not only is he not harming his brethren, but he is useful to them and this is how: however crude farming methods are, they always produce more crops in a year than the farmer and his family are able to consume. Part of the population is thus able to devote itself to other forms of work, such as hunting, fishing, making garments, house building, the manufacture of weapons, tools, etc. and trade these profitably for agricultural products. Observe gentlemen, that for as long as there is an abundance of land that has not yet been appropriated, these two types of activity will develop in parallel and in a harmonious manner. It will be impossible for one to oppress the other. If the agricultural class puts too great a price on their services, people would abandon other industries in order to clear more land. If, on the contrary, industry demanded exorbitant prices, capital and labor would prefer industry to agriculture, in such a way that the population would be able to grow for long periods whilst maintaining a balance, doubtless with a few partial disturbances, but in a much steadier manner than if legislators meddled with it.
However, when the entire territory has been occupied, a notable development occurs.
The population does not cease to grow. The new arrivals have no choice of occupation. However, more food is needed because there are more mouths to feed, and more raw materials are needed because there are more human beings to be clothed, housed, heated, provided with lighting, etc.
I think it cannot be denied that these newcomers have the right to work for foreign populations and to send their products abroad in exchange for food. Moreover, if, on the basis of the country's political constitution, the agricultural class has legislative power and if they take advantage of this power to pass a law that forbids the entire population from working for foreigners, the equilibrium will be upset, and there is no limit to the amount of labor that landowners would be able to demand in return for a given quantity of food.
Gentlemen, following on from what I have just said with regard to property in general, it seems difficult not to admit that literary property falls into the category of a commonly held right? 859 (Sounds of Assent). Is not a book the product of work done by a man using his abilities, his effort, his care, his vigilance, the commitment of his time and of funds he has raised? Does this man not have to live while he is working? Why then should he not receive some voluntarily given services from those to whom he is supplying his? Why should his book not count as his property? The manufacturer of paper, the printer, the bookseller, and the bookbinder, who have all contributed to the production of a book, are rewarded for their work. Should the author be the only one excluded from the rewards generated by his book?
The question would be greatly advanced if it were treated historically. Allow me therefore to give you a very succinct summary of the state of the law in this respect.
I have defined property for you. I said: All production belongs to whomever made it, because he made it. Gentlemen, there was a time when people were far from recognizing a principle that today appears so simple to us. You will understand that this principle could not have been accepted either in Roman law, or by feudal aristocracy, or by absolute monarchs, for it would have overthrown a society based on conquest, usurpation, and slavery. How could you think that the Romans, who lived off the work of the nations they conquered or of slaves, or the Normans, who lived off the work of the Saxons, 860 would have been able to base their public law on the following maxim that undermines all forms of organized plunder: "An object produced belongs to the person who made it."
At the time when printing was invented, another form of law existed in Europe. The king was the master and universal owner of both things and men. The permission to work was a right held by the Church and the King. The rule was that everything came from the Prince. Nobody had the right to exercise a profession. Rights could result only from a royal concession. The king selected the people he favoured and made them an exception in being able to undertake a specific type of work, either through a grant of monopoly, privilege, or privata lex (private law), 861 and thereby granted them the ability to live by working.
Writers could not escape this rule. Thus, the edict dated 26 August 1686, 862 the first to deal with these matters, stated the following: "All printers and booksellers are forbidden to print and offer for sale any work in respect of which no exemption has been granted, on pain of confiscation and exemplary punishment."
And note, gentlemen, that the entire theory of property, as still taught in our schools is drawn from Roman and feudal law. And unless I am mistaken, the official definition of property as given in the classroom still involves the jus utendi et abutendi (the rise to use and to abuse). 863 It is therefore not surprising that many lawyers do not bother to seek a relationship between property and the nature of man, especially with regard to literary property.
It happened that, with regard to those granted royal privilege , monopoly had all the effects of property. Declaring that nobody, except for the author, would have the authority to print the book was to make the author its owner, if not by right at least in practice.
The 1789 revolution was bound to overturn this state of affairs and this is indeed what happened. The Constituent Assembly acknowledged the right of everyone to write and have his work printed, but it considered that it had done everything by recognizing the right, and did not think of setting out guarantees in favor of literary property. It proclaimed a right held by a man not a right to a kind of property. It thus destroyed this kind of guarantee that, under the Old Regime, resulted incidentally from monopoly. Therefore, for four years, everyone was able to reproduce and sell for his own benefit copies of the books of living authors as he wished; it was as though the Constituent Assembly had said: "To cultivate the land is a human right," and that, as a result, everyone was entitled to take over his neighbor's field.
By a very strange coincidence, which proves how often the same causes have the same effects, the very same things had happened in England. There too, the right of working (to engage in work) 864 was a royal attribute. There too, this right had initially been merely a concession or privilege. There too, these monopolies had been destroyed and the right to work recognized. 865 There too, people thought they had done everything by paralyzing royal action, and when they had recognized that everyone had the right to write and print they omitted to stipulate that the work belonged to the person who had done it. Finally there too, this interregnum in the law, during which literary property was pillaged, lasted three or four years.
In England as in France, the sight of such disorder brought in laws that more or less govern both countries.
Following Lackanal's report, the Convention issued a decree 866 whose terms deserve to be quoted. (The speaker reads them out). 867
De toutes les propriétés, la moins susceptible de contestation, celle dont l'accroissement ne peut ni blesser l'égalité républicaine, ni donner d'ombrage à la liberté, c'est sans contredit celle des productions du génie; et si quelque chose doit étonner, c'est qu'il ait fallu reconnoître cette propriété, assurer son libre exercice par une loi positive, c'est qu'une aussi grande révolution que la nôtre ait été nécessaire pour nous ramener sur ce point, comme sur tant d'autres, aux simples élémens de la justice la plus commune. | Of all the kinds of property, the one which is least susceptible to dispute, whose increase can injure neither republican equality nor give umbrage to liberty, is without contradiction that of the productions of the mind. What is surprising is the fact that one might need to recognize this property and to ensure its free exercise by a positive law, that for such a great revolution as ours that it would be necessary in this matter, as with so many others, to have to return to the most common and simple elements of justice. |
Le génie a-t-il ordonné, dans le silence, un ouvrage qui recule les bornes des connoissances humaines, des pirates littéraires s'en emparent aussitôt, et l'auteur ne marche à l'immortalité qu'à travers les horreurs de la misère. Et ses enfans ! ... Citoyens, la postérité du grand Corneille s'est éteinte dans l'indigence. L'impression peut d'autant moins faire des productions d'un écrivain une propriété publique, dans le sens où les corsaires littéraires l'entendent, que l'exercice utile de la propriété de l'auteur, ne pouvant se faire que par ce moyen, il s'ensuivroit qu'il ne pourroit en user, sans la perdre à l'instant même. | Has a mind created in silence a work which pushes back the limits of human knowledge only to see literary pirates seize it and for the author to march towards their immortality only by crossing the horrors of indigence. And what about his children! … Citizens, the heirs of the great Corneille have passed away in poverty. Printing can just as easily turn the works of an author into a publicly owned property, in the sense understood by literary privateers, and since the useful exercise of the authors's own property right can only be carried out by this same method, it follows as a consequence that he cannot make use of it without losing it at the same moment. |
This latter observation is a reply to the objection often raised against literary property. It is said: "As long as the author has his manuscript in his hands, nobody will dispute his ownership of his work. But as soon as he has handed it over for printing, ought he to be the owner of all future editions of this work? Has not each person the right to reproduce and sell these subsequent editions?"
Gentlemen, the law ought not to be either a play on words or a surprise. There is no way of profiting from a book other than making copies of it and selling them. To bestow this right on those who did not write the book or who have not bought the rights to it is to declare that the work does not belong to the person whose work it is and to deny property itself. It is as if we were saying: " The field will be privately owned but the crops it produces will be the property of the first person to gain possession of them. " (Applause)
After reading the preamble of the decree, I find it difficult to explain the decree itself. It limits itself to attributing to authors, as a legislative gift, the usufruct of their work. In fact, just as declaring a man the usufructuary in perpetuity is to declare him the owner, to say that he will be the owner for a given number of years is to say that he will be the usufructuary. 868 This is not a word which creates a right: the law might as well call me Emperor ; if it leaves me in my present situation, it is merely proclaiming a lie.
Our current legislation does not seem to me to be based on any principle. Either literary property is a right which is above the law, in which case the law ought not to do anything other than confirm it, regulate it, and guarantee it, or literary works belong to the general public, and in this case it is not clear why its usufruct is attributed to the author.
It seems to me that these legal arrangements echo the ideas with which our old public law had imbued people's minds. The Convention 869 took the place of the King; it believed that it was being magnanimous to authors in an act that it was in its gift to regulate and delimit. It assumed that the authority for deciding on whom the right was bestowed inhered in the Convention itself and not in the person of the author, and on this basis it handed over exactly what it considered proper. But if this were the case, why was there this solemn declaration of the right?
… 870 A talented writer 871 has devoted some eloquent pages to combating the very principle of literary property. He bases himself on what is sad and degrading, according to him, in the sight of genius seeking its reward in a handful of gold. 872 I cannot help seeing a residue of aristocratic prejudice in this way of considering the question nor help also fearing that, involuntarily, the author has yielded to that contempt for work that was a distinctive characteristic of the old slave-owners and which is inculcated in all of us during our university education. Are writers different in nature from other men? Do they not have needs to be satisfied and families to provide for? Is there something intrinsically despicable in having recourse to intellectual work in order to do this? The words mercantilism , industrialism, and individualism pile up under Mr. Blanc's pen. Is it therefore base, ignoble, or shameful to exchange services freely because gold is used as the intermediary in these exchanges? Are we all noble by nature? Do we descend from the gods of Olympus?
Having disparaged this feeling, I might say this necessity, that obliges men to get services in exchange for those (services) which they provide, in a word, to work for payment, Mr. Blanc dreams up a whole and detailed system of payment. The only thing is that he wants it to be national and not individual. I will not go into Mr. Blanc's proposed system, which I consider to be open to a great deal of criticism. But is it certain that writers will retain more dignity when intrigue and solicitation become the road to reward? (Laughter)
I agree with Mr. Blanc that, as things stand, books that are amusing, dangerous, occasionally corrupting, and always written in haste are more lucrative than substantial and serious works that have required much effort and sleepless nights. Why is this? Because the general public demands works like this, and people are given what they want. This is true for all forms of production. Wherever the masses are willing to make sacrifices to obtain something, this thing is produced; people will always be found to make it. Legislative measures will not correct this; an improvement in standards is needed. In all such cases, the only answer lies in a progressive improvement in public opinion.
People will say that all this is a vicious circle, since bad books serve only to increase the corruption of the masses and public opinion, but I do not think this is so. I am convinced that there are some types of books that time discredits.
Furthermore, I think that literary property is an obstacle to this danger. Is it not obvious that, the less valuable the usufruct, the more incentive there is to write quickly and follow the fashion?
As for the selflessness spoken of so warmly by Mr. Blanc and, I may say, in such elevated and eloquent terms, God forbid that I should differ from him in this matter. It is true that men who wish to provide a service to society in whatever sphere, be it military, ecclesiastical, literary or any other, without any remuneration, are worth all our esteem, admiration, and homage, and this is all the more true if, in the great examples he cites, they work in extreme penury and suffering. Hold on though! Would it be generous on the part of society to latch onto the devotion of a particular group in order to fashion a claim against it, one imposed on it as a legal obligation, such that this group were denied the common right to receive services in return for services provided? 873 (Murmuring)
Among the objections made, not to the principle of literary property but to its application, there is one that I consider extremely serious, and that is the state of the legislation in the nations that surround us. I think that this is an example of the type of progress in which the solidarity between nations is most in evidence. What good would it do to recognize literary property in France if it were not recognized in Belgium, Holland, or England, and if the printers and booksellers in these countries were able violate this property right with impunity? This is the present state of things people will say, and it has not stopped our legislation from awarding authors the usufruct of their works. Recognizing intellectual property would not worsen the existing situation.
However, everyone knows the abnormal position in which our booksellers are placed by counterfeiting with regard to the works of living authors. What would their position therefore be if literary property had been recognized in France and if the works of Corneille, Racine, and all the great men of centuries past were still subject to copyright, which did not apply to Belgian publishers? These days, there is at least a huge body of works for whose reprinting our booksellers are in the same situation as foreign ones. Without this, it is doubtful whether they could survive.
There are some who think that by saying this I am countering the principles of commercial freedom that I advocate in other circumstances, since I appear to fear the effect of foreign competition on our booksellers.
I reject this accusation and comparison with my utmost strength.
If, because of some natural circumstance or superiority in personnel, the Belgians are able to publish more cheaply than we, I would consider it an injustice and folly to prohibit Belgian books, for this would be to sustain an industry that is making a loss by inflicting a tax on book buyers. I would attack this type of protection like all the others. But what is the connection between this and the issue of counterfeiting? Logically the two cases would have to be similar in order to be treated in common. Let us imagine that a factory for woolen cloth were established on Belgian soil and that the Belgians found some way of removing wool and dye from French factories; obviously, this would not be competition but plunder. Would we not have the right to demand the reform of Belgian legislation and also insist that French diplomacy, acting usefully just for once, should promote this notable act of international justice?
To sum up, gentlemen, although my views are not those of Mr. Blanc, I am bold enough to say that my desires are the same as his. Yes, like him, I want our literature to rise in stature, to be cleansed and morally refined. I want France increasingly to retain and extend the legitimate and glorious supremacy of its beautiful language which, more than its bayonets, will carry the principles of our Revolution to the four corners of the world. (Applause)
843 See the Editor's Introduction to the first, his "Letter to Hippolyte Castille" (15 Sept. 1847) for details, above, pp. 000.
844 See, "Lettres à M. de Girardin sur la Propriété littéraire (février 1841), pp. 62-71"; "Rapport sur la Propriété littéraire. Chambre des Députés. Séance du 13 mars 1841", pp. 72-94"; "Sur la Propriété littéraire. Chambre des Députés. Séance du 23 mars 1841," pp. 95-109; "Réplique à M. Dubois (même séance," pp. 110-12; and "Sur la Propriété littéraire. Chambre des Députés. Séance du 30 mars 1841," pp. 113-25; in Alphonse de Lamartine, La France parlementaire (1834-1851). Oeuvres oratoires et écrits politiques. Deuxième série: 1840 - 1847, vol. 3, ed. Louis Ulbach (Paris: Librairie Internationale, 1865).
845 Molinari, "Discours de M. de Molinari à l'Athénée royal. Analyse du travail du journaliste", Le Travail intellectuel , no. 6, 15 Jan. 1848, pp. 6-7. See also Molinari's discussion of literary and artistic property in Les Soirées , "The Second Evening" (Liberty Fund, forthcoming).
846 See for example, Molinari, "Propriété littéraire" DEP, vol. 2 pp. 473-78; Augustin Charles Renouard, "Marques de fabrique," DEP, vol. 2, pp. 135-43; Charles Coquelin, "Brevets d'invention," DEP, vol. 1, pp. 209-23. As well as Louis Wolowski and Émile Levasseur, "Propriété" in Dictionnaire générale de la politique par Maurice Block avec la collaboration d'hommes d'état, de publicistes et d'écrivains de tous les pays (Paris: O. Lorenz. 1st ed. 1863-64), vol. 2, pp. 682-93. See especially the section "Propriété littéraire et artistique" pp. 691 ff.
847 Louis Blanc, Organisation du travail. IVe édition. Considérablement augmentée, précédée d'une Introduction, et suivie d'un compte-rendu de la maison Leclaire. La première édition a parus en 1839. (Paris: Cauville frères, 1845). Part II "De la propriété littéraire," pp. 187-240.
848 See, Blanc, Organisation du travail , Part II, section III. "Quel est, selon nous, le moyen de remédier au mal" especially pp. 225-28.
849 His lectures later were published as Cours d'économie politique, professé au Musée royal de l'industrie belge, 2 vols. (Bruxelles: Librairie polytechnique d'Aug. Decq, 1855). 2nd revised and enlarged edition (Bruxelles et Leipzig: A Lacroix, Ver Broeckoven; Paris: Guillaumin, 1863).
850 Collection des principaux économistes, Avec Commentaires, Notes, et Notices; par MM. Blanqui et Rossi (de l'Institut), Eugène Daire, H. Dussard, J. Garnier, M. Monjean, H. Say. (Paris: Guillaumin, 1840-48), 15 vols. T. XIII. [Ricardo] Oeuvres complètes de David Ricardo, traduites en français, par MM. Constancio et Alcide Fonteyraud, augmentées de notes de Jean-Baptiste Say, de nouvelles notes et de commentaires par Malthus, Sismondi, MM. Rossi, Blanqui, etc., et précédées d'une notice sur la vie et les travaux de l'auteur par M. Alcide Fonteyraud (Paris: Guillaumin, 1847).
851 Castille lists the attendees and their positions in Le Travail intellectuel , no. 6, samedi 15 janvier 1848, pp. 4, 6. He also adds that some of the attendees responded to Bastiat's speech with comments of their own, including Pagnerre, the President of the Booksellers' Circle, and Joseph Garnier, the editor of the Journal des Économistes .
852 The other extended discussion of property rights is in the pamphlet The Law (June 1850), CW2, pp. 107-46.
853 Charles Comte, Traité de la propriété (Treatise on Property) (1834).
854 Several economists known to Bastiat were full members of the Academy and he himself had been voted a "corresponding member" in January 1846. The Academy of Moral and Political Sciences is a French learned society and one of the 5 academies of the Institute of France. It was reconstituted in 1832 by King Louis-Philippe and several political economists who were well known to Bastiat were elected members, such as Charles Dunoyer (1832), Joseph Droz (1832), Charles Comte (1832), Hippolyte Passy (1838), Adolphe Blanqui (1838), Léon Faucher (1849), Michel Chevalier (1851), Louis Wolowski (1855) and Horace Say (1857). See the glossary on "The Academy of Moral and Political Sciences."
855 The socialist critique of property would come to a head in February 1848 when Louis Blanc and his colleagues set up the National Workshops during the chaos of the early days of the Provisional Government. Socialists within the Constituent Assembly also attempted, unsuccessfully, to have a "right to a job" clause inserted into the new Constitution of the Second Republic. The economists and their liberal allies confronted the socialist challenge both within the Chamber (e.g. Léon Faucher, Louis Wolowski, and Alexis de Tocqueville) and with a series of pamphlets and books with Bastiat's dozen of so anti-socialist pamphlets written between June 1848 and July 1850 being particularly noteworthy. See the glossary entries on "The Socialist Critique of Property" and "Bastiat's Anti-Socialist Pamphlets."
856 I have not been able to trace the source of this phrase. Joseph Garnier in Éléments de l'économie politique (2nd ed. 1848) says that it was used by the jurist Charles Giraud in a discussion at the Académie des sciences morales et politiques on 13 November 1847. Giraud did not present a paper which would have been reproduced in the Academy's proceedings but he is listed as having made numerous comments on other presentations. It is noted that he did present some remarks on the Roman law jurist and historian Étienne Pasquier (1529-1615) whose edition of The Institutes of Justinian Giraud had edited and republished in 1847 and presented to the Academy. He also published a short monograph on Pasquier in January 1848. Giraud's comments about "man is born a property owner" would have fitted in nicely with his work on the Roman theory of property law. See, Joseph Garnier, Éléments de l'économie politique: exposé des notions fondamentales de cette science (Paris: Guillaumin, 1848). 2nd ed., p. 379; Séances et travaux de l'Académie des sciences morales et politiques. Compte rendu par MM. Ch. Vergé et Loiseau, sous la direction de M. Mignet . Deuxième série. Tome deuxième (XIIe de la collection). Second Semestre de 1847 (Paris: À l'Administration du Compte rendu de l'Académie des sciences morales et politiques, 1847); L'interprétation des Institutes de Justinian: avec la conférence de chasque paragraphe aux ordonnances royaux, arrestz de parlement et coustumes générales de la France. Ouvrage inédit d'Étienne Pasquier, publié par M. le duc Pasquier, avec une introduction et des notes de M. Ch. Giraud (Paris: Videcoq aîné, 1847); and Charles Giraud, Notice sur Étienne Pasquier (Paris: P. Dupont, 1848).
857 The idea that property could be owned as a "natural right" was well established among many but not all of the French economists going back to the the Physiocrats. The influence of the English utilitarians via Bentham, Ricardo, and James Mill was also very strong and was beginning to overtake the natural law advocates. Both Bastiat and Molinari believed that the socialist critique of property had exposed theoretical weaknesses within the classical school of political economy which needed to be addressed, which they attempted to do in Economic Harmonies (1850), and Les Soirées (1849) and Cours d'économie politique (1855) respectively. The Lockean idea of "self-ownership" was less well established in French thought but could be traced back to the work of Pierre-Louis Roederer, Victor Cousin, and Louis Leclerc. Victor Cousin's idea of "le Moi" (the Self) was particularly appealing to this way of looking at property rights: "Le moi, voilà la propriété primordiale et originelle" (Me (the self), there is the primordial and original property).
858 These remarks show the influence of the work of Charles Comte. Bastiat came to Paris too late to have met Charles Comte (1782-1837) who was one of the giants of French liberal thought in the first third of the 19th century. He states in his letters that Comte and Dunoyer had exerted a profound influence on his thinking in his early years. Comte's last work was the Traité de la propriété (Treatise on Property) (1834) which was a combination of a defense of property based upon natural law and its legal and sociological evolution through history. Comte also defended the just acquisition of property through a Lockean process of mixing one's labor.
859 Bastiat uses the phrase "le droit commun" (common right) which when used by a socialist might mean a "communally held right" but here must mean something like a "natural right" or "commonly held right" or perhaps even "under common law".
860 The historian Augustin Thierry (1795-1856) worked with Charles Comte and Charles Dunoyer on their journal Le Censeur européen (1817-1819) where he developed a "conquest theory" of history in which he analysed the ruling elites which governed nations, how they came to power (often through conquest as the Normans did of Saxon England), and the gradual emergence of free institutions such as the medieval communes and the Third Estate. See in particular Histoire de la conquête de l'Angleterre par les Normands (1825) and Essai sur l'histoire de la formation et des progrès du Tiers état (1850).
861 "Privilegium est quasi privata lex" (A privilege is, as it were, a private law) in Bouvier's Law Dictionary and Concise Encyclopedia. Third Revision by Francis Rawle (Kansas City, MO., Vernon Law Book Company, 1914). Vol. II. "Maxim", p. 2155.
862 The edict of 26 August 1686 permitted an author to copyright his own literary works or to grant them to another person so long as that person was not a publisher. After the author's death the copyright reverted to the pubic domain. For the history of French copyright laws see Molinari, "Propriété littéraire" DEP, vol. 2 pp. 473-78; Édouard Romberg, Compte rendu des travaux du Congrès de la propriété littéraire et artistique (1859), Vol. 2: "France. - Notice historique sur la propriété littéraire," pp. 161-67; and Augustin-Charles Renouard, Traité des droits d'auteurs (1838), vol. 1, pp. 142-48. Also see the discussion about intellectual property in Molinari, Les Soirées , "Second Evening" (LF forthcoming).
863 According to Bouvier "jus utendi" means "the right to use property without destroying its substance. It is employed in contradistinction to the jus abutendi"; "jus abutendi" means "the right to abuse. By this phrase is understood the right to abuse property, or having full dominion over property". See, Bouvier's Law Dictionary , vol. 2, pp. 1794, 1787.
864 Bastiat uses the phrase "le droit de travailler" (the right of working) which is not the usual form he used, which was "le droit du travail"
865 Bastiat reverts to the socialist form of this expression "le droit au travail" (the right to a job). The distinction Bastiat is making here is less clear in English than in French. The socialists demanded "le doit au travail" which might be translated as "the right to work" but with the implication that the worker had "a right to a job" provided at taxpayer expence if necessary. The economists countered this with their demand for "le droit du travail" or "la liberté du travail", which could be translated as a demand for the "right" or the "freedom of working" or seeking work without government or other regulation. Charles Dunoyer wrote a very influential book on just this distinction, De la Liberté du travail (1845).
866 The decree was adopted on 13 July 1790. See, Joseph Lakanal, Exposé sommaire des travaux de Joseph Lakanal. Ex-membre de la Convention nationale et du Conseil des Cinq-cents (Paris: Typographie de Firmin Didot frères, 1838). "Rapport fait au nom du comité d'instruction publique d'écrits en tous genres, des compositeurs de musique, des peintres, des dessinateurs; ce projet est transformé en loi dans la séance du 19 juillet 1793, an II." pp. 9-12.
867 In the original these passages ere left out. We have restored them here. These two impassioned paragraphs can be found in Lakanal, pp. 9-10.
868 A " usufruitier" is some one who has the right to use the property of another person.
869 After the fall of the monarchy in August 1792 the Legislative Assembly called for an election based upon universal manhood suffrage to create a Constituent Assembly (also known as the National Convention) which would draw up a new constitution for the first French republic. It remained in power between September 1792 and October 1795. After the fall of Robespierre in July 1795 the Convention was replaced by a new constitutions and a new government called the Directory.
870 This break in the text occurs in the original in Le Travail intellectuel .
871 Louis Blanc, Organisation du travail. IVe édition. Considérablement augmentée, précédée d'une Introduction, et suivie d'un compte-rendu de la maison Leclaire. La première édition a parus en 1839. (Paris: Cauville frères, 1845). Part II "De la propriété littéraire," pp. 187-240.
872 See Blanc's attack on Lamartine in Organisation du travail , pp. 237-38.
873 Bastiat uses the phrase "recevoir des services contre des services." See the glossary entry on "Service for Service."
T.165 (1847.12.26) "A Letter from Mr. Considérant and a Reply"↩
SourceT.165 (1847.12.26) "A Letter from Mr. Considérant and a Reply" (Lettre de M. Considérant et réponse). [OC2.25, pp. 134-41.] [CW6]
Text(insert HTML of file here)
T.166 (1847.12) Articles written for ES2 and not dated (see below for details)↩
SourceT.166 (1847.12) Articles written for ES2 and not dated (see below for details) [OC4] [CW3]
- I. "The Physiology of Plunder" (Physiologie de la Spoliation) [n.d.] [OC4, pp. 127-48.]
- II. "Two Moral Philosophies" (Deux morales) [n.d.] [OC4, pp. 148-56.]
- III. "The Two Axes" (Les deux haches) [n.d.] [OC4, pp. 156-5.9]
- IV. "The Lower Council of Labor" (Conseil inférieur du travail)] [n.d.] [OC4, pp. 160-63.]
- VII. "A Chinese Tale" (Conte chinois) [n.d.] [OC4, pp. 182-87.]
- X. "The Tax Collector" (Le percepteur) [n.d.] [OC4, pp. 198-203.]
- XIII. "Protection, or the Three Municipal Magistrates" (La protection ou les trois Échevins) [n.d.] [OC4, pp. 229-41.]
What industry asks of government is as modest as the plea of Diogenes to Alexander: GET OUT OF MY SUNLIGHT. (Bentham.)191
I. The Physiology of Plunder192 [n.d.] (final draft) Publishing history- Original title, place and date of publication: "Physiologie de la Spoliation" (The Physiology of Plunder) [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 127-48.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
Why should I persist in this arid science, Political Economy?
Why? The question is reasonable. All work is sufficiently repellent by nature for us to have the right to ask where it is leading.
So let us examine the matter.
I am not addressing the philosophers who make a profession of adoring destitution, if not in their own name at least in the name of humanity.
I am speaking to those who consider Wealth as something worthwhile. Let us understand by this term, not the opulence of a few but the prosperity, well-being, security, independence, education and the dignity of all.
There are only two ways of acquiring the things that are necessary for the preservation, improvement and betterment of life: PRODUCTION and PLUNDER.
Some people say: "PLUNDER is an accident, a local and transitory abuse, stigmatized by moral philosophy, condemned by law and unworthy of the attentions of Political Economy."
But whatever the benevolence and optimism of one's heart one is obliged to acknowledge that PLUNDER is exercised on too a vast scale in this world, that it is too universally woven into all major human events, for any social science, above all Political Economy, to feel justified in disregarding it.
I will go further. What separates the social order from a state of perfection (at least from the degree of perfection it can attain) is the constant effort of its members to live and progress at the expense of one another.
So that, if PLUNDER did not exist, society would be perfect and the social sciences would be superfluous.
I will go even further. When PLUNDER has become the means of existence of a large group of men mutually linked by social ties, they soon contrive to pass a law that sanctions it and a moral code that glorifies it.
You need name only a few of the most clear-cut forms of Plunder to show the place it occupies in human affairs.
First of all, there is WAR. Among savage peoples, the victor kills the vanquished in order to acquire a right to hunt game that is if not incontestable, at least uncontested.
Then there is SLAVERY. Once man grasps that it is possible to make land fertile through work, he strikes this bargain with his fellow: "You will have the fatigue of work and I will have its product."
Next comes THEOCRACY. "Depending on whether you give me or refuse to give me your property, I will open the gates of heaven or hell to you."
Lastly, there is MONOPOLY. Its distinctive characteristic is to allow the great social law, a service for a service,193 to continue to exist, but to make force part of the negotiations and thus distort the just relationship between the service received and the service rendered.
Plunder always carries within it the deadly seed that kills it. Rarely does the majority plunder the minority.194 In this case, the minority would immediately be reduced to the point where it could no longer satisfy the greed of the majority, and Plunder would die for want of sustenance.
It is almost always the majority that is oppressed, and Plunder is also destined in this case as well to receive a death sentence.
For if the use of Force is Plunder's agent, as it is for War and Slavery, it is natural for Force to go over to the side of the majority in the long run.
And if the agent is Fraud, as in Theocracy and Monopoly, it is natural for the majority to become informed on this score, or intelligence would not be intelligence.
Another providential law that has planted a second deadly seed in the heart of Plunder is this:
Plunder does not only redistribute wealth, it always destroys part of it.
War annihilates many things of value.
Slavery paralyses a great many human abilities.
Theocracy diverts a great deal of effort to puerile or disastrous purposes.
Monopoly also moves wealth from one pocket to another but a great deal is lost in the transfer.
This law is admirable. In its absence, provided that there were a stable balance of power between the oppressors and the oppressed, Plunder would have no end. Thanks to this law, the balance always tends to be upset, either because the Plunderers become aware of the loss of so much wealth, or, where this awareness is lacking, because the harm constantly grows worse and it is in the nature of things that constantly deteriorate to come to an end.
In fact, there comes a time when, in its gradual acceleration, the loss of wealth is so great that Plunderers are less rich than they would have been if they had remained honest.
An example of this is a nation for which the cost of war is greater than the value of its booty;
A master who pays more for slave labor than for free labor;
A Theocracy that has so stupefied the people and sapped their energy that it can no longer wring anything out of them;
A Monopoly that has to increase its efforts to suck consumers dry as there is less to be sucked up, just as the effort needed to milk a cow increases as the udder dries up.195
As we see, Monopoly is a Species of the Genus, Plunder. There are several Varieties of it, including Sinecure, Privilege and Trade Restriction.
Among the forms it takes, there are some that are simple and naïve. Such were feudal rights. Under this regime the masses were plundered and knew it. It involved the abuse of force and perished with it.
Others are highly complex. In this case, the masses are often plundered unaware. It may even happen that they think they owe everything to Plunder; what is left to them, as well as what is taken from them and what is lost in the operation. Further than that I would propose as time goes on, and given the highly ingenious mechanism of custom, many Plunderers are plunders without knowing it and without wishing it. Monopolies of this type are generated through Fraud and they feed on Error. They only disappear with Enlightenment.
I have said enough to show that Political Economy has an obvious practical use. It is the flame that destroys this social disorder which is Plunder, by unveiling Fraud and dissipating Error. Someone, I believe it was a woman196 and she was perfectly right, defined political economy thus: It is the safety lock on popular savings.
Comments
If this small volume were intended to last for three or four thousand years, to be read, reread, meditated upon and studied sentence by sentence, word by word and letter by letter by one generation after another like a new Koran, if it were bound to attract avalanches of annotations, explanations and paraphrases in all the libraries around the world, I would be able to abandon to their fate the foregoing thoughts with their slightly obscure precision. But because they need to be commented upon, I consider it prudent to do this myself.
The true and just law governing man is "The freely negotiated exchange of one service for another."197 Plunder consists in banishing by fraud or force the freedom to negotiate in order to receive a service without offering one in return.
Plunder by force is exercised as follows: People wait for a man to produce something and then seize it from him at gun point.
This is formally condemned by the Ten Commandments: Thou shalt not steal.
When it takes place between individuals, it is called theft and leads to prison; when it takes place between nations, it is called conquest and leads to glory.
Why is there this difference? It is useful to seek its cause. It will show us an irresistible power, Opinion, which, like the atmosphere, envelops us so completely that we no longer notice it. For Rousseau never spoke a truer word than when he said "A great deal of philosophy is needed to observe facts that are too close to us."198
A thief, by the very fact that he acts alone, has public opinion against him. He alarms everyone who surrounds him. However, if he has a few accomplices, he brags to them of his achievements and we start to see in this the force of Opinion, for he needs only the approval of his accomplices to free him of any feeling of shame for his wicked acts and even to make him proud of his ignominy.
A warrior lives in another environment. The Opinion that reviles him is elsewhere, in the nations that have been conquered; he does not feel pressure from them. However, the Opinion that is around him approves and supports him. His companions and he feel keenly the solidarity that binds them. The fatherland, which created enemies and dangers for itself, needs to exalt the courage of its children. It confers on the boldest of these, those who extend its frontiers and bring back the most plunder to it, honors, renown and glory. Poets sing of their exploits and women weave them wreaths. And such is the power of Opinion that it removes the idea of injustice from Plunder and strips away the very awareness of their wrongs from plunderers.
Opinion which rejects military plunder is not located among those doing the plundering but among those being plundered, and therefore exercises very little influence. However, it is not totally ineffective, and still less when nations have relations with one another and understand each other more. From this angle, we see that a study of languages and free communication between peoples tends to lead to the predominance of opinion against this type of plunder.
Unfortunately, it often happens that the nations surrounding the plundering people are themselves plunderers whenever they can and are henceforth imbued with the same preconceived ideas.
If this is so, there is only one remedy, time. Nations have to learn by hard experience the huge disadvantage there is in plundering each other.
Another brake may be mentioned: raising moral standards. However, the aim of raising moral standards is to increase the number of virtuous actions. How then will it restrict acts of plunder when such acts are raised by Opinion to the rank of the highest virtues? Is there a more powerful means of raising the moral standards of a nation than Religion? Has there ever been a Religion more disposed toward peace and more universally accepted than Christianity? And yet, what have we seen in the last eighteen centuries? We have seen men fighting, not only in spite of Religion but in the very name of Religion.
A conquering nation does not always carry out an offensive war. It also has bad times. Its soldiers then defend their homes and hearths, property, families, independence and freedom. War takes on an aura of sanctity and greatness. The flag, blessed by the ministers of the God of Peace, represents all that there is sacred on earth; people adhere to it as to the living image of the fatherland and honor, and warlike virtues are exalted above all the other virtues. But once the danger has passed, Opinion remains, and the spirit of revenge (which is often confused with patriotism) gives rise to the natural response of people who love to parade their beloved flag from city to city. It appears that it is in this way that nature might have prepared the punishment of the aggressor.
It is the fear of this punishment and not the progress of philosophy that keeps weapons within arsenals for, it cannot be denied, the most advanced and civilized nations make war and take little notice of justice as long as they have no reprisals to fear. Examples of this are the Himalayas199, the Atlas mountains200 and the Caucasus201.
If Religion has been powerless, if philosophy is powerless, how will we put an end to war?
Political Economy shows that, even when you consider only the victors, war is always waged in the interest of a minority and at the expense of the masses. All that is needed therefore is that the masses see this truth clearly. The weight of Opinion, which is still divided, will come down totally in favor of peace.202
Plunder exercised by force takes yet another form. People do not wait for a man to have produced something to snatch it from him. They take hold of the man himself; he is stripped of his own personality and forced to work. Nobody says to him "If you take this trouble on my behalf, I will take this trouble for you" but instead "You will have all of the fatigue of labor and I will have all the enjoyment of its products". This is Slavery, which always involves the abuse of force.
Well, it is a profound question to ascertain whether or not it is in the nature of an incontestably dominating force to always take advantage of its position. As for me, I do not trust it, and would as much expect a falling stone to to have the power to halt its own fall as entrust coercion to set its own limit.
I would like at least to be shown a country or an era in which Slavery has been abolished by the free and gracious will of the masters.
Slavery supplies a second and striking example of the inadequacy of religious and philanthropic sentiments in the face of a powerful sense of self-interest. This may appear a source of regret to certain modern Schools that seek the reforming principle of society in self-denial. Let them begin then by reforming the nature of man.
In the Antilles,203 the masters have professed the Christian religion from father to son from the time slavery was instituted. Several times a day, they repeat these words, "All men are brothers; loving your neighbor is to fulfill the law in its entirety." And yet they have slaves. Nothing seemed to them to be more natural and legitimate. Do modern reformers hope that their moral principles will ever be as universally accepted, as popular, with as much authority and as often heard on everyone's lips as the Gospel? And if the Gospel has been unable to pass from lips to hearts over or through the great defensive wall of self-interest, how do they hope that their moral principles will accomplish this miracle?
What then! Is Slavery therefore invulnerable? No, what founded it will destroy it; I refer to Self-Interest, provided that, in order to reinforce the special interests that created the wound, the general interests that have to cure it are not thwarted.
Another truth demonstrated by Political Economy is that free labor is essentially dynamic and slave labor is of necessity static. For this reason, the triumph of the former over the latter is inevitable. What has happened to the cultivation of indigo by black people?204
Free labor applied to the cultivation of sugar will make the price decrease more and more. As this happens, slaves will be less and less profitable for their masters. Slavery would have collapsed a long time ago of its own accord in America, if the laws in Europe had not raised the price of sugar artificially. We therefore see the masters, their creditors and delegates actively working to maintain these laws, which now form the pillars of the edifice.
Unfortunately, they still have the sympathy of the populations within which slavery has disappeared, which shows us once again that Opinion is still sovereign here.
If it is sovereign, even in the context of power, it is even more so in the world of Fraud. To tell the truth, this is its real domain. Fraud is the abuse of knowledge; the progress of Opinion is the progress of knowledge. The two powers are at least of the same nature. Fraud by a plunderer involves credulity in the person being plundered, and the natural antidote to credulity is truth. It follows that to enlighten minds is to remove the sustenance from this type of plunder.
I will review briefly a few of the forms of plunder that are exercised by Fraud on a grand scale.
The first to come forward is Plunder by theocratic fraud.
What is this about? To get people to provide real services, in the form of foodstuffs, clothing, luxury, consideration, influence and power, in return for imaginary ones.
If I said to a man "I am going to provide you with some immediate services", I would have to keep my word, otherwise this man would know what he was dealing with and my fraud would be promptly unmasked.
But if I told him "In exchange for your services, I will provide you with immense services, not in this world but in the next. After this life, you will be able to be eternally happy or unhappy and this all depends on me; I am an intermediary between God and his creation and can, at will, open the gates of heaven or hell to you." Should this man believe me at all, he is in my power.
This type of imposture has been practiced widely since the beginning of the world, and we know what degree of total power Egyptian priests achieved.
It is easy to see how impostors behave. You have to only ask yourself what you would do in their place.
If I came, with ideas like this in mind, amongst an ignorant clan and succeeded by dint of some extraordinary act and an amazing appearance to be taken for a supernatural being, I would pass for an emissary of God with absolute discretion over the future destiny of men.
I would then forbid any examination of my titles. I would go further; since reason would be my most dangerous enemy, I would forbid the use of reason itself, at least when applied to this awesome subject. I would make this question, and all those relating to it, taboo, as the savages say. To solve them, discuss them or even think of them would be an unpardonable crime.
It would certainly be the height of skill to set up a taboo as a barrier across all the intellectual avenues that might lead to the discovery of my deception. What better guarantee of its longevity is there than to make doubt itself a sacrilege?
However, to this fundamental guarantee I would add ancilliary ones. For example, in order that enlightenment is never able to reach down to the masses, I would grant to my accomplices and myself the monopoly of all knowledge. I would hide it under the veils of a dead language and a hieroglyphic script and, so that I would never be taken by surprise by any danger, I would take care to invent an institution which would, day after day, enable me to enter into the secret of all consciences.
It would also not be a bad thing for me to satisfy some of the genuine needs of my people, especially if, by doing so, I was able to increase my influence and authority. Given that men have a great need of education and moral instruction, I would take it upon myself to dispense this. Through this, I would direct the minds and hearts of my people as I saw fit. I would weave morality and my authority into an indissoluble chain; I would represent them as being unable to exist without each other, so that if a bold individual attempted to raise a question that was taboo, society as a whole, unable to live without a moral code, would feel the earth tremble beneath its feet and would turn in anger against this daring innovator.
Should things reach this pass, it is clear that this people would belong to me more surely than if they were my slaves. Slaves curse their chains, while my people would bless theirs, and I would have succeeded in imprinting the stamp of servitude not on their foreheads, but in the depths of their conscience.
Opinion alone is capable of tearing down an edifice of iniquity like this, but how will it set about this if each stone is taboo? It is a question of time and the printing press.
God forbid that I should wish to undermine here the consoling beliefs that link this life of trials to a life of happiness! No one, not even the head of the Christian church,205 could deny that the irresistible urge which leads us to these beliefs has been taken advantage of. There is, it seems to me, a sign by which we can see whether a people have been duped or not. Examine Religion and priest alike; see whether the priest is the instrument of Religion or Religion the instrument of the priest.
If the priest is the instrument of Religion, if he thinks only of spreading its morals and benefits around the world, he will be gentle, tolerant, humble, charitable and full of zeal. His life will reflect that of his divine model. He will preach freedom and equality among men, peace and fraternity between nations; he will reject the attractions of temporal power, not wishing to ally himself with what most needs to be restricted in this world. He will be a man of the people, a man of good counsel and gentle consolation, a man of good Opinion and a Man of the Gospel.
If, on the other hand, Religion is the instrument of the priest, he will treat it as some people treat an instrument that is altered, bent and turned in many ways so as to draw the greatest benefit for themselves. He will increase the number of questions that are taboo; his moral principles will bend according to the climate, men and circumstances. He will seek to impose it through studied gestures and attitudes; he will mutter words a hundred times a day whose meaning has disappeared and which are nothing other than empty conventionalism. He will peddle holy things, but just enough to avoid undermining faith in their sanctity and he will take care to see that this trade is less obviously active where the people are more keen-sighted. He will involve himself in terrestrial intrigue and always be on the side of the powerful, on the sole condition that those in power ally themselves with him. In a word, in all his actions, it will be seen that he does not want to advance Religion through the clergy but the clergy through Religion, and since so much effort implies an aim and as this aim, according to our hypothesis, cannot be anything other than power and wealth, the definitive sign that the people have been duped is when priests are rich and powerful.
It is very clear that one can abuse a true Religion as well as a false one. The more its authority is respectable, the greater is the danger that it may be improperly used. But the results are very different. Abuse always revolts the healthy, enlightened and independent sector of a nation. It is impossible for faith not to be undermined and the weakening of a true Religion is more of a disaster than the undermining of a false one.
Plunder using this procedure and the clear-sightedness of a people are always in inverse proportion one to the other, for it is in the nature of abuse to proceed wherever it finds a path. Not that pure and devoted priests are not to be found within the most ignorant population, but how do you prevent a swindler from putting on a cassock and having the ambition to don a miter? Plunderers obey Malthus's law206: they multiply in line with the means of existence, and the means of existence of swindlers is the credulity of their dupes. It is no good searching; you always find that opinion needs to be enlightened. There is no other panacea.
Another type of Plunder by fraud is commercial fraud, a name that I think is too limited since not only are merchants who adulterate their goods and give short measure guilty of this, but also doctors who get paid for disastrous advice, lawyers who overcomplicate lawsuits, etc. In these exchanges of services, one is done in bad faith, but in this instance, as the service received is always agreed upon voluntarily in advance, it is clear that Plunder of this kind is bound to retreat as public clear-sightedness increases.
Next comes the abuse of government services, a huge field of Plunder, so huge that we can only cast a glance at it.
If God had made man to be a solitary animal, each would work for his own benefit. Individual wealth would be in proportion to the services that each person rendered to himself.
However, as man is sociable, services are exchanged for one another, a proposition that you can, if you like, construct in reverse.
In society, there are needs that are so general and universal that its members supply them by organizing government services. An example of this is the need for security. People consult with other and agree to tax themselves in order to pay with various services those who supply the service of watching over common security.
There is nothing in this that is outside the scope of Political Economy: Do this for me and I will do that for you. The essence of the transaction is the same, the procedure of paying for it alone is different, but this difference is of far-ranging importance.
In ordinary transactions, each person remains the judge either of the service he receives or of the service he renders. He can always either refuse the exchange or make it elsewhere, which gives rise to the necessity of bringing into the market only services that will be voluntarily agreed upon.
This is not so with regard to the State, especially before the arrival of representative governments. Whether we need its services or not, whether they are good or bad quality,207 the State always obliges us to accept them as they are supplied and pay for them at the price it sets.
Well, all men tend to see the services they render through the small end of the telescope and the services they receive through the large end,208 and things would be in a fine state if we did not have the guarantee of a freely negotiated price in private transactions.
We do not have or scarcely have this guarantee in our transactions with the government. And yet the State, made up of men (although these days the contrary is insinuated), obeys the universal trend. It wants to serve us a great deal, indeed with more than we want, and make us accept as a genuine service things that are sometimes far from being so, in order to require us to supply it with services or taxes in return.
The State is also subject to Malthus's Law. It tends to exceed the level of its means of existence, it expands in line with these means and what keeps it in existence is whatever the people have. Woe betide those peoples who cannot limit the sphere of action of the State. Freedom, private activity, wealth, well-being, independence and dignity will all disappear.
For there is one fact that should be noted and it is this: of all the services we require from the State, the principal one is security. In order to guarantee this to us, it has to have a force capable of overcoming all other forces, whether individual or collective, internal or external, which might compromise it. If we link this thought with the unfortunate tendency we have noted in men to live at the expense of others, there is a danger here that leaps to the eye.
This being so, just look at the immense scale on which Plunder has been carried out throughout history by the abuse and excesses of the government? One might well ask what services were provided to the people and what services were exacted by governments in the Assyrian, Babylonian, Roman, Persian, Turkish, Chinese, Russian, English, Spanish and French states! The mind boggles at this huge disparity.
Eventually, the representative system of government was invented, and a priori it might have been thought that the disorder would disappear as though by magic.
In practice, the operating principle of these governments is this:
"The population itself will decide, through its representatives, on the nature and extent of the functions that it considers appropriate to establish as government services and the amount of revenue it intends to allocate to these services."
The tendency to seize the goods of others and the tendency to defend one's own were thus brought face to face. It was bound to be thought that the latter would overcome the former.
Certainly I am convinced that in the long run this outcome will prevail. But it has to be said that up to now it has not done so.
Why? For two very simple reasons: governments have understood things only too well and the populace not well enough.
Governments are very wily. They act methodically and consistently according to a plan that has been well thought out and constantly improved by tradition and experience. They study men and their passions. If they see, for example, that they have an inclination to war, they whip up and excite this deadly tendency. They surround the nation with dangers through the actions of their diplomats, and very naturally, as a result, they require the nation to provide soldiers, sailors, arsenals and fortifications; often they have little trouble in having these supplied to them: after all they have honors, pensions and positions to hand out. They need a great deal of money for this, and taxes and loans exist for this purpose.
If the nation is generous, governments take it upon themselves to cure all the ills of humanity. They will revive commerce, they say, they will bring prosperity to agriculture, develop factories, encourage arts and letters, abolish poverty, etc. etc. All that is needed is to create some new government functions and pay for some new functionaries.
In a word, the tactic consists in presenting as real services things that are only hindrances; the nation then pays, not for services but for disservices. Governments take on gigantic proportions and end up absorbing half of the total revenue. And the people are surprised at having to work so hard, at hearing the announcement of astonishing inventions that will infinitely increase the number of products and … to always be like Gros-Jean and never learn.209
This is because, while the government is displaying such skill, the people are showing very little. Thus, when called upon to choose those who will wield authority, those who will have to determine the sphere and remuneration of government action, whom do they choose? Government officials. They make the executive power responsible for setting the limits on its own action and requirements. They imitate the Bourgeois Gentilhomme210 who, in choosing the style and number of his suits, relies on the advice of … his tailor.211
Meanwhile, things go from bad to worse and the people's eyes are at last opened, not to the remedy (they have not yet reached this stage), but to the illness.
Governing is such a pleasant job that everyone aspires to it. The councilors of the people therefore constantly tell them "We see your suffering and we deplore it. Things would be different if we were governing you."
This period, normally very long, is that of rebellion and uprising. When the people have been conquered, the cost of the war is added to their burdens. When they are the conquerors, the people in government change and the abuses remain.
And this continues until at last the people learn to recognize and defend their true interests. We therefore always reach this point: The only option lies in the progress of Public Reasoning.
Certain nations appear to be astonishingly well disposed to becoming the prey of government Plunder. They are the ones in which men, totally disregarding their own dignity and energy, think that they would be lost if they were not being administered and governed in every sphere. Although I have not traveled a great deal, I have seen countries in which it is thought that agriculture cannot make any progress if the State did not keep experimental farms, that there would soon be no more horses if the State did not have a stud farm, that fathers would not bring up their children or would have them taught only immoral things if the State did not decide what was fit to be learned, etc. etc. In a country like this, revolutions may follow one another in quick succession and governments fall one after the other. But those being governed will be no less governed to within an inch of their lives (for the disposition I am pointing out here is the very stuff of which governments are made), until the point is reached at which the people finally see that it is better to leave as many services as possible in the category of those that interested parties exchange for a freely negotiated price212.
We have seen that society is based on an exchange of services. It ought to be just an exchange of good and honest services. But we have also noted that men had a great interest and consequently an irresistible urge to exaggerate the relative value of the services they rendered. And in all truth I cannot see any other limit to this pretension than leaving the people to whom these services are offered the freedom to accept or refuse them.
From this it results that certain men have recourse to the law to reduce the natural prerogatives of this freedom for others. This type of plunder is called Privilege or Monopoly. Note well its origin and character.
Everybody knows that the services he brings to the general marketplace will be all the more appreciated and remunerated the scarcer they are. Everyone will therefore beg for the law to intervene to remove from the marketplace all those who come to offer similar services or, what amounts to the same thing, if the use of a tool is essential for the service to be rendered, he will demand from the law its exclusive possession.213
Since this type of Plunder is the principal subject of this volume, I will not dwell on it here and will limit myself to one observation.
When monopoly is an isolated occurrence, it is sure to make the person empowered by the law rich. It may then happen that each class of workers claims a similar monopoly for itself, instead of working toward the downfall of this monopoly. This characteristic of Plunder, reduced to a system, then becomes the most ridiculous hoax of all for everyone, and the final result is that each person thinks that he is gaining more from a general market that is totally impoverished.214
It is not necessary to add that this strange regime also introduces universal antagonism between all classes, professions and peoples; that it requires constant but uncertain interference from the government; that it abounds in the abuses described in the preceding paragraph; it puts all areas of production into a position of irremediable insecurity and accustoms men to attributing the responsibility for their own existence to the law and not themselves. It would be difficult to imagine a more active cause of social unrest.215
Justification
People will say: "Why are you using this ugly word, Plunder? Apart from the fact that it is crude, it is upsetting, irritating and turns calm and moderate men against you. It poisons the debate."216
I will declare loudly that I respect people. I believe in the sincerity of almost all the advocates of Protection and I do not claim the right to suspect the personal probity, scrupulousness and philanthropy of anyone at all. I repeat once more that Protection is the work, the disastrous work, of a common error of which everyone or at least the great majority is both victim and accomplice. After that, I cannot stop things being what they are.
Imagine a sort of Diogenes217 sticking his head outside his barrel and saying: "People of Athens, you have yourselves served by slaves. Have you never thought that you are exercising over your brothers the most iniquitous type of plunder?"
Or again, a tribune in the Forum saying: "People of Rome, you have based all of your means of existence on the repeated pillage of all other peoples."
They would certainly be expressing only an incontrovertible truth. Should we then conclude that Athens and Rome were inhabited only by dishonest people? That Socrates and Plato, Cato218 and Cincinnatus219 were despicable men?
Who could entertain such a thought? However these great men lived in an environment that robbed them of any awareness of their injustice. We know that Aristotle was unable even to entertain the idea that a society could live without slavery.
In modern times, slavery has existed up to the present time without generating many scruples in the souls of plantation owners. Armies have been the instruments of great conquests, that is to say, great forms of plunder. Is this to say that they are not full of soldiers and officers who are personally just as scrupulous and perhaps more scrupulous than is generally the case in careers in industry, men whom the very thought of theft would cause to blush and who would face a thousand deaths rather than stoop to a base act?
What is condemnable are not individuals but the general milieu that carries them along and blinds them, a milieu for which society as a whole is guilty.
This is the case of Monopoly. I accuse the system and not individuals, society as a whole and not any particular one of its members. If the greatest philosophers have been able to delude themselves over the iniquity of slavery, how much more reason have farmers and manufacturers to be mistaken with regard to the nature and effects of the protectionist regime?
Endnotes191 Jeremy Bentham (1748-1832) was the founder of the school of thought known as utilitarianism and influenced a group of political and economic reformers in the early 19th century known as the Philosophic Radicals. It is interesting that Bastiat chose two passages from Bentham's Théorie des peines et des récompenses (1811) as the opening for both the First and Second Series of the Economic Sophisms. See the glossary entry on "Bentham." The quotation which begins this chapter comes from the Théorie des peines et des recompenses, ouvrage extrait des manuscrits de M. Jérémie Bentham, jurisconsulte anglais. Par M. Et. Dumont, Troisième edition. Tome Second (Paris: Bossange frères, 1826), Book IV. "Des encouragements par rapport à l'industrie et au commerce," p. 271.
192 (Paillottet's note) See chapters XVIII, XIX, XXII and XXIV in Tome VI for the developments projected and started by the author on the Disturbing Factors affecting the harmony of natural laws. . [The reference is to several chapters in Economic Harmonies, vol. 6 of the OC: chap. XVIII "Le mal" (Harm), chap. XIX "Guerre" (War), chap. XXII "Moteur social" (The Engine of Society), and chap. XIV "Perfectibilité" (Perfectibility). Paillottet tells us in a footnote at the end of ES I that Bastiat planned to write a "History of Plunder" after he had finished the Economic Harmonies but died before he could do more than sketch out a couple of chapters. In addition, in a proposed section of Economic Harmonies on "Disturbing Factors" Bastiat had planned the following chapters: 16. Plunder, 17. War, 18. Slavery, 19. Theocracy, 20. Monopoly, 21. Government Exploitation, 22. False Brotherhood or Communism. Aside from the first two chapters there were no notes or drafts found among Bastiat's papers on these proposed chapters at the time of his death.]
193 [DMH - Bastiat uses the phrase "service pour service." See the glossary entry on "Servie for Service".]
194 It was this very topic that Bastiat addressed later in June 1848 in his pamphlet "The State". He had become concerned that during the revolution the French people thought they could now plunder the entire country for their own benefit, a task which Bastiat criticised as a "fiction". A draft of this essay appeared in June in his revolutionary newspaper Jacques Bonhomme which was handed out on the streets of Paris, and a revised and expanded version of which was published in the Journal des Débats in September. It was shortly thereafter published as a stand alone pamphlet by Guillaumin. See the Collected Works, vol. 2, pp. 93-106. See the glossary entries on "Jacques Bonhomme [journal]" and "Journal des Débats."
195 Bastiat here uses the metaphor of the drying up of a cow's udder to make a point about how monopoly "swallows" or "absorbs" the property of consumers. We have continued the metaphor to that of "sucking consumers dry".
196 [DMH - We have not been able to track down the origin of this quotation. The woman Bastiat has in mind might be either Jane Haldimand Marcet (1769-1858) or Harriet Martineau (1802-1876) both of whom wrote popular works on political economy which were translated into French and both of whom were strong advocates of saving by the poorer classes as a means to get out of their poverty. Both writers had biographical articles written about them for the Dictionnaire d'économie politique and so their works were probably know to Bastiat. It is perhaps more likely to have been Martineau to whom Bastiat was referring as her work was the more recent and had been translated into French in the early 1830s and republished by the liberal Guillaumin publishing company sometime in the late 1840s. It was reviewed very favourably by Gustave de Molinari, a colleague of Batiat's, in April 1849 (so after the writing of the second part of the Sophisms during 1847) who said about her that "[s]he deserves her double reputation for being an ingenious story teller and a learned professor of political economy." See the glossary entries on "Harriett Martineau" and "Jane Marcet."]
197 [DMH - Bastiat uses the phrase "Échange librement débattu de service contre service." See the glossary entry on "Servie for Service".]
198 [DMH - The quote comes from J.J. Rousseau's Discourse on Inequality, Part I, p. 90 (Cranston trans.) but Bastiat is quoting from memory here and it is not exactly correct. The French states: "…ce n'est pas chez lui [l'homme sauvage] qu'il faut chercher la philosophie dont l'homme a besoin, pour savoir observer une fois ce qu'il a vu tous les jours." Rousseau, Du contrat social et autres oeuvres politiques, ed. J. Ehrard, p. 49. [.. and we should look in vain to him for that philosophy which a man needs if he is to know how to notice once what he has seen everyday]. Bastiat was so impressed with this statement that he refers to it several times in the Economic Harmonies. See the glossary entry on "Rousseau."]
199 Bastiat may have in mind the First Anglo-Afghan War (1839-1842) which was fought by British Empire for control of Afghanistan which is located in the western part of the Himalayan mountains.
200 This is a possible reference to the French conquest of Algeria which began in 1830. The Atlas mountains stretch across the north western part of Africa and include what is now Morocco, Algeria, and Tunisia.
201 The Caucasus Mountains are located between the Black Sea and the Caspian Sea and are often regarded as forming the boundary between Europe and Asia. The Russian Empire fought wars in this region (1817–1864) in order to expand its empire. In Bastiat's day there was fierce resistance led by Imam Shamil who led attacks against the invading Russians with some success between 1843 and 1845.
202 (Paillottet's note) See the letter addressed to the President of the Peace Congress in Frankfurt in Tome I, p. 197. [This can be found in the Collected Works, vol. 1, pp. 265-66. Bastiat was an active member of an international association called the Friends of Peace and took a great interest in their congresses, one of which was held in Brussels in 1848, one in Paris (chaired by Victor Hugo) in 1849, and one in Frankfurt in 1850. Because if 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" (our title). See 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. See the glossary entry on "Peace Congress".] See the Appendix with Bastiat's speech to the Congress.
203 The French once had extensive possessions in the Caribbean where slavery was used to produce sugar and other crops. Most of these possessions were lost as a result of the Revolution (Haiti in particular) and the defeat of Napoleon by the British. In Bastiat's day what was left included Martinique and Guadeloupe. Slavery in the French Antilles was abolished during the 1848 Revolution (27 April 1848). See Bastiat's veiled remarks about sugar production in Martinique (Saccharinique) (ES3 XVII. "Antediluvian Sugar", below, pp. ???) and the glossary entry on "Slavery in France."
204 The production of indigo in the French Antilles dropped as a result of the more efficient and cheaper production from Bengal which was controlled by the British.
205 Bastiat uses the phrase "le chef de la chrétienté" which we have translated as "the head of the Christian church". The translator of the FEE edition translated this as "the Pope," p. 138.
206 Thomas Robert Malthus (1766-1858) is best known for his writings on population, An Essay on the Principle of Population (1st ed., 1798; rev. 3rd ed., 1826). He was professor of political economy at the East India Company College (Haileybury). Malthus's Law of Population states: "I said that population, when unchecked, increased in a geometrical ratio; and subsistence for man in an arithmetical ratio... This ratio of increase, though short of the utmost power of population, yet as the result of actual experience, we will take as our rule; and say, That population, when unchecked, goes on doubling itself every twenty-five years or increases in a geometrical ratio… It may be fairly said, therefore, that the means of subsistence increase in an arithmetical ratio. Let us now bring the effects of these two ratios together… No limits whatever are placed to the productions of the earth; they may increase for ever and be greater than any assignable quantity; yet still the power of population being a power of a superior order, the increase of the human species can only be kept commensurate to the increase of the means of subsistence, by the constant operation of the strong law of necessity acting as a check upon the greater power." [Malthus, An Essay on the Principle of Population, "Chapter II. The Different Ratios In Which Population and Food Increase", (1st ed. 1798) </title/311/8824>. See the glossary entry on "Bastiat and Malthus."
207 Bastiat uses an interesting combination of phrases to describe the compulsory services provide by the State - they may be "de bon ou mauvais aloi" which literally refers to "sound or counterfeit" currency (good or bad alloy). It is not surprising that Bastiat would choose the example of the government monopoly of the supply of money and its common practice of debasing the currency as a metaphor for government services in general. See his essay "Maudit argent!" (Damned Money!) (April 1849) in Collected Works, vol. 4 (forthcoming).
208 In other words, people imagine the services they provide other people are larger than they really are, and that the services they receive are smaller than they really are.
209 Bastiat concludes this paragraph with a reference to the fictional character Gros-Jean (Big John) who in many respects is the opposite of Jacques Bonhomme (Jack Goodfellow), the wily French peasant everyman. Gros-John is quite stupid and does not learn from his mistakes. He was popularized by La Fontaine in his fable about "The Milk Maid and the Pail". After daydreaming about how she will spend the money she has not yet earned at the markets, Perrette spills her pail of milk and ends up with nothing. She concludes the story by saying "I am Gros-Jean just like before." See the glossary entry on "Fontaine."
210 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 the glossary entry on "Molière."
211 (Paillottet's note) See the letter addressed to Mr. Larnac in vol. 1 and the Parliamentary Conflicts of Interest in vol.2. [The letter Paillottet refers to is "On Parliamentary Reform" (1846), CW, vol. 1, pp. 367-70 where Bastiat objects to the practice of tax-payer funded public servants being permitted to run for election and sitting in a Chamber which can determine their level of pay (p.368). Bastiat likens this to allowing wig makers to create the laws which regulate hair dressing, which would result in a state where "we would soon be inordinately well groomed, indeed to the point of tyranny" (p. 370).
212 (Paillottet's note) See The State and The Law in vol.2 and chapter XVII entitled Private Services and Public Services in vol 5. [vol. 5 contains the Economic Harmonies.]
213 (Paillottet's note) For the distinction between true monopolies and what have been called natural monopolies, see the note that accompanies the account of the doctrine of Adam Smith on value in chapter V of vol 5.
214 This chapter was probably written in in late 1847 and prefigures Bastiat's 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).
215 (Paillottet's note) The author was soon to witness the development of this cause of unrest and combat it energetically. See The State later in vol 2, Disastrous Illusions in this volume and the final pages of chapter IV in vol. 5.
216 The choice of words appropriate to describe these actions is one Bastiat grappled with repeatedly. See especially ES2 IX "Theft by Subsidy", below, p. ??? where Bastiat says it is time to use a more "brutal style" of language to describe things like protectionism and subsidies to businesses. See also "Plain Speaking" in the "Note on the Translation" and more generally the Introduction to this volume.
217 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.
218 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."
219 Lucius Quinctius Cincinnatus (520-430 BC) served as consul in 460 BC and briefly as Roman dictator in 458 and 439 BC. when Rome was threatened by invasion. He was admired for his willingness to give up the powers of dictator and return to his farm after the military crisis was over. See the glossary entry on "Cincinnatus."
II. Two Moral Philosophies [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Deux morales" (Two Moral Philosophies) [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 148-56.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
At the end of the preceding chapter, if the reader has reached that far, I can well hear him cry:
"Well then! Are we mistaken in blaming economists for being dry and cold? What a picture of humanity! If they are right, plunder would be a disastrous force, one that is virtually taken for granted, taking all forms and exercised under all types of pretext, both outside the law and by the law, abusing the holiest of things, exploiting weakness and credulity in turn and advancing as these two sources of nourishment flourish around it! Can a darker picture of this world be painted?"
The question is not to know whether the picture is dark but whether it is true. History is there to tell us this.
It is rather strange that those who decry political economy (or economism, as they like to call this science), because it studies man and the world as they are, take pessimism very much further than it does, at least with regard to the past and present. Open their books and journals and what do you see? Bitterness, a hatred of society to the extent that the very word civilization is in their eyes synonymous with injustice, disorder and anarchy. They have come to curse freedom, so low is their confidence in the development of the human race resulting from its natural organization. Freedom! This is what, according to them, is impelling us inexorably toward the abyss.
It is true that they are optimistic with regard to the future. For if humanity, incapable on its own, has been going the wrong way for six thousand years, a prophet has come to show it the path of salvation, and if only the flock obeys the shepherd's crook it will be led into this promised land in which well-being is achieved without effort and where order, security and harmony are the easy prize of improvidence.
All humanity has to do is to agree to reformers changing its physical and moral constitution, in the words of Rousseau.220
Political economy has not taken on the mission of seeking to ascertain what society would be like if God had made man otherwise than it pleased him to do. It is perhaps tedious that Providence forgot to call upon a few of our modern organizers for advice at the beginning.221 And, as celestial mechanics would have been quite different if the Creator had consulted Alphonse the Wise222 and equally if he had not neglected Fourier's advice,223 social order would bear no resemblance to the one we are forced to breathe, live and move in. But, since we are here, since in eo vivimus, movemur et sumus224, all we can do is to study it and learn its laws, especially since its improvement essentially depends on this knowledge.
We cannot prevent insatiable desires from springing up in the heart of man.
We cannot arrange things so that no work is required for these desires to be satisfied.
We cannot avoid the fact that man's reluctance to work is as strong as his desire to have his needs. satisfied.
We cannot prevent the fact that, as a result of this state of affairs, there is a constant effort by men to increase their share of enjoyment while each of them tries by force or by fraud to throw the burden of labor onto the shoulders of his fellows.
It is not up to us to wipe out universal history, to stifle the voice of the past that attests that things have been like this from the outset. We cannot deny that war, slavery, serfdom, theocracy, abuse by government, privileges, frauds of all kinds and monopolies have been the incontrovertible and terrible manifestations of these two sentiments that are intertwined in the hearts of men: attraction to pleasure, avoidance of pain.
"By the sweat of thy brow shalt thou eat bread". But everyone wants as much bread and as little sweat as possible. This is the conclusion of history.
Thank heaven, history also shows that the distribution of pleasures and pains among men tends to occur in an increasingly even way.
Short of denying the obvious, we have to admit that society has made some progress in this regard.
If this is so, society therefore has within it a natural and providential force, a law that increasingly causes the principle of iniquity to retreat and the principle of justice to be realised.
We state that this force is within society and that God has placed it there. If it were not there, we, like the Utopians,225 would be reduced to seeking it in artificial means, in arrangements that require the prior alteration of the physical and moral constitution of man, or rather we would believe this search to be useless and vain, since we cannot understand the action of a lever if it has no fulcrum.
Let us therefore endeavor to identify the beneficent force that tends to overcome little by little the malevolent force we have called Plunder, whose presence is only too clearly explained by reason and noted by experience.
Any malevolent action has of necessity two components, the source from which it comes and the place at which it ends; the person who carries out the action and the person on whom the action is carried out, or as one might have put it in a grammar class at school, the subject and the object of the sentence.226
There are therefore two opportunities for a malevolent action to be eliminated: the voluntary abstention of the active being and the resistance of the passive being.
Hence there are two moral philosophies that, far from contradicting each other, work together: a morality based on religion or philosophy or one which I will permit myself to call economic.
A religious moral philosophy addresses the author of a malevolent action, man as the initiator of plunder,227 in order to eliminate it. It tells him "Reform yourself, purify yourself, stop committing evil and do good. Overcome your passions, sacrifice your personal interest, cease to oppress your neighbor whom it is your duty to love and care for. Be just above all and then charitable." This moral philosophy will always be the finest, the most touching and the one that reveals the human race in all its majesty, the one that most encourages flights of eloquence and generates the most admiration and sympathy in men.
An economic moral philosophy aspires to achieve the same result but above all addresses men as victims of plunder.228 It shows them the effects of human actions and, by this simple demonstration, stimulates them to react against the actions that hurt them and honor those that are useful to them. It endeavors to disseminate enough good sense, enlightenment and justified mistrust in the oppressed masses to make oppression increasingly difficult and dangerous.
It should be noted that economic morality cannot help but also act on oppressors. A malevolent act has good and evil consequences, evil consequences for those who suffer it and good consequences for those who carry it out, otherwise it would not occur. But it is a long way from being compensatory. The sum of evil always outweighs the good, and this has to be so, since the very fact of oppression leads to a depletion of strength, creates dangers, provokes retaliation and requires costly precautions. A simple revelation of these effects is thus not limited to triggering a reaction in those oppressed, it rallies to the flag of justice all those whose hearts have not been corrupted and undermines the security of the oppressors themselves.
But it is easy to understand that this moral philosophy, which is more implicit than explicit and which is after all just a scientific demonstration; which would even lose its effectiveness if it changed character; which is not aimed at the heart, but the mind; which does not seek to persuade, but to convince; which does not give advice, but proof; whose mission is not to touch the emotions, but to enlighten and whose only victory over vice is to deprive it of sustenance: it is easy, I say, to understand that this moral philosophy has been accused of being dry and dull.
This objection is true but unjust. It amounts to saying that political economy does not state everything, does not include everything and is not a universal science. But who has ever put forward such an exorbitant claim on its behalf?
The accusation would be well-founded only if political economy presented its procedures as being exclusive and had the effrontery, as we might say, to forbid philosophy and religion from using all their own direct means of working toward the progress of mankind.
Let us accept therefore the simultaneous action of morality proper and of political economy, with the first casting a slur on the motives and evident ugliness of malevolent acts and the second discrediting them in our beliefs by giving a picture of their effects.
Let us even admit that the triumph, when it occurs, of religious moralists is finer, more consoling and more radical. But at the same time it is difficult not to acknowledge that the triumph of economic science is easier and more sure.
In a few lines that are worth more than a host of heavy volumes, Jean-Baptiste Say229 has already drawn to our attention that there are two ways of stopping the conflict introduced into an honorable family by hypocrisy: correcting Tartuffe or teaching Orgon the ways of the world.230 Molière,231 a great painter of the human heart, seems to have had the second of these procedures constantly in view as being the more effective.
This is just as true on the world stage.
Tell me what Caesar did and I will tell you what the Romans of his time were like.
Tell me what modern diplomacy is accomplishing and I will tell you what the moral state of nations is like.
We would not be paying nearly two billion in taxes if we did not hand over the power to vote for them to those who are gobbling them up.232
We would not have all the problems and expenses of the African question233 if we were as fully convinced that two and two are four in political economy just as they are in arithmetic.
Mr. Guizot would not have the opportunity of saying "France is rich enough to pay for its glory"234 if France had never fallen in love with false glory.
This same Statesman would never have said "Freedom is sufficiently precious for France not to trade it away" if France fully understood that a swollen budget and freedom are incompatible.235
It is not the monopolizers, as is widely believed, but those who are monopolized who keep monopolies in place.
And, where elections are concerned,236 it is not because there are corruptors that there are those who can be corrupted. It's the opposite; and the proof of this is that it is those who can be corrupted who pay all the costs of corruption. Would it not be up to them to put a stop to it?
Let religious morality therefore touch the hearts of the Tartuffes, the Caesars, the colonists, sinecurists and monopolists, etc. if it can. The task of political economy is to enlighten their dupes.237
Which of these two procedures works more effectively toward social progress? Do we have to spell it out? I believe it is the second. I fear that humanity cannot escape the necessity of first learning a defensive moral philosophy.
No matter how much I look, whatever I read or observe and whatever the questions I ask, I cannot find any abuse carried out on anything like a wide scale that has been destroyed through the voluntary renunciation of those benefiting from it.
On the other hand, I have found many that have been overcome by the active resistance of those suffering from them.
Describing the consequences of abuse is therefore the most effective way of destroying it. And how true this is, especially when it concerns abuses like protectionism, which, while inflicting genuine harm on the masses, nurture only illusion and disappointment in those who believe they are benefiting from them.
After all this, will this type of moral persuasion succeed by itself in achieving all the social progress that the attractive nature of the human soul and the noblest of its faculties gives us leave to hope for and foresee? I am far from claiming this. Let us assume the total diffusion of this defensive moral philosophy, which is, after all, nothing other than a recognition of well understood interests that are in accordance with the general good and with justice. A society like this, although certainly well ordered, might well fail to be very attractive, one in which there were no more rascals simply because there were no more dupes, in which vice would be constantly latent, numbed by famine, so to speak, and merely waiting for sustenance to revive it, and in which the prudence of each person would be governed by the vigilance of all, a society in a word, in which reform regulating external acts would be only skin deep, not having penetrated to the depths of people's consciences. A society like this sometimes appears to us reflected in men who are strict, rigorous, just, ready to reject the slightest encroachment of their rights and skilled in avoiding being undermined in any way. You hold them in esteem and perhaps admire them; you would make them your deputy but not your friend.
Let these two moral philosophies, therefore, work hand in hand instead of mutually decrying one another, and attack vice in a pincer movement. While economists are doing their job, opening the eyes of the Orgons, uprooting preconceived ideas, stimulating just and essential mistrust and studying and exposing the true nature of things and actions, let religious moralists for their part carry out their more attractive but difficult work. Let them engage iniquity in hand-to-hand combat. Let them pursue it right into the deepest fibers of the heart. Let them paint the charms of benevolent action, self-denial and self-sacrifice. Let them open the source of virtues where we can only turn off the source of vice: that is their task, and one that is noble and fine. Why then do they dispute the usefulness of the task that has fallen to us?
In a society that, while not being intrinsically virtuous, is nevertheless well ordered because of the action of economic morality (which is the knowledge of the economy which the society possesses), do the opportunities for progress not open up for religious morality?
Habit, it is said, is a second nature.
A country where for a long time everyone is unaccustomed to injustice simply as a result of the resistance to this of a general public that is enlightened, may still be unhappy. However, in my view, it would be well placed to receive a higher and purer form of education. Being unaccustomed to evil is a great step toward good. Men cannot remain stationary. Once they have turned away from the path of vice, which no longer leads anywhere save to infamy, they would be all the more attracted to virtue.
Perhaps society has to pass through this prosaic state in which people practice virtue through calculation in order to lift itself up to that more poetic region where they would no longer need this motive.
Endnotes220 Bastiat is referring to the third paragraph of Book II, chapter VII "The Legislator" of the Social Contract in which Rousseau uses the following phrases "changer pour ainsi dire la nature humaine ... altérer la constitution de l'homme pour la renforcer" (to change human nature... to alter the make up of man in order to strengthen it). In the Maurice Cranston translation the full passage is: "Whoever ventures on the enterprise of setting up a people must be ready, shall we say, to change human nature, to transform each individual, who by himself is entirely complete and solitary, into a part of a much greater whole, from which that same individual will then receive, in a sense, his life and his being. The founder of nations must weaken the structure of man in order to fortify it, to replace the physical and independent existence we have all received from nature with a moral and communal existence. In a word each man must be stripped of his own powers, and given powers which are external to him, and which he cannot use without the help of others. The nearer men's natural powers are to extinction or annihilation, and the stronger and more lasting their acquired powers, the stronger and more perfect is the social institution." pp. 84-85. [Ehrard edition, p. 261]. Online French version, Jean-Jacques Rousseau, The Political Writings of Jean Jacques Rousseau, ed. from the original manuscripts and authentic editions, with introductions and notes by C. E. Vaughan. (Cambridge University Press, 1915). In 2 vols. Vol. 2. Chapter: CHAPITRE VII.: Du législateur. </title/711/88891/2014131>. See the glossary entry on "Rousseau."
221 Bastiat here is referring to the socialist school which emerged in France during the 1830s and 1840s. Two of their pet slogans which had a special meaning for their followers were "Association" and "Organization" by which they meant the state organization of labour and industry, not the voluntary association and organization advocated by Bastiat and the other Economists. See the glossary entry on "Association and Organization."
222 Alphonso the Wise (Alfonso X) (1221-1284) was king of Leon and Castile from 1252-1284 and was reputed to have said that if he had been present at the creation of the world he would have had a few words of advice for the Creator on how better to order the universe. During his reign he attempted to reorganize the Castillian sheep industry, raised money by debasing the currency, and imposed high tariffs in order to prevent the inevitable price rises which resulted.
223 François-Marie Charles Fourier (1772-1837) was a socialist and founder of the phalansterian school or "Fourierism." This consisted of a utopian, communistic system for the reorganization of society in which individuals would live together as one family and hold property in common. See the glossary entry on "Fourier" and "Utopias."
224 "In it we live and move and have our being." The phrase comes from the Latin Vulgate, St. Paul, Acts of the Apostle 17: 18.: "in ipso enim vivimus et movemur et sumus sicut et quidam vestrum poetarum dixerunt ipsius enim et genus sumus" (For in him we live and move and are: as some also of your own poets said: For we are also his offspring). See <http://www.latinvulgate.com/>.
225 See the glossary entry on "Utopias."
226 Bastiat uses the technical terms "agent" and "patient" which are grammatical terms used to describe "the cause or initiator of an event" and "the target upon who an action is carried out" respectively, which we have translated as the "subject" and "object" of a sentence.
227 Bastiat returns here and in the next paragraph to the terminology of grammar to make his point here about plunder. He refers to "l'homme en tant qu'agent" (man as the initiator of the action) and "l'homme en tant que patient" (man as the target of the action). Another way of expressing this is "man as the initiator of plunder" (i.e. the plunderer), and "man as the victim of plunder" (i.e. the plundered).
228 See note above.
229 Jean-Baptiste Say (1767-1832) was the leading French political economist in the first third of the nineteenth century. He had the first chair in political economy at the Collège de France. Say is best known for his Traité d'économie politique (1803) and the Cours complet d'économie politique pratique (1828-33). See the glossary on "J.B.Say."
230 In Molière's play Tartuffe, or the Imposter (1664) Tartuffe is a scheming hypocrite and Orgon is a well-meaning dupe. With the reference in the previous sentence to the conflict between "religious moralists" and economics, and the problem of hypocrisy, Bastiat probably has in mind the following lines from J.B. Say's Cours complet d'économie politique pratique (1828-33) where Say discusses what he calls "one of the thorniest parts of practical politics", namely how to keep public expenditure to a "minimum". Say warns of paying too many public employees, having a too costly court, having an army which violates the rights of citizens instead of protecting them, and "having a greedy and ambitious clergy who brutalizes children, splits apart families, seizes their inheritance, makes a hypocrisy of their honour, and supports abuses and persecutes those who tell the truth." Part 7, chapter XIII "De l'économie dans les dépenses de la société," p. 432. Cours complet d'Économie politique pratique, ouvrage destine à metre sous les yeux des homes d'état, des propriétaires fonciers et des caqpitalistes, des savants, des agriculteurs, des manufacuriers, des négociants, et en general de tous les citoyens, l'Économie des sociétés. Septième edition entièrement revue par l'auteur, publiée sur les manuscrits qu'il a laissés, et augmentée de notes par Horace Say, son fils (Bruxelles: Société typographique belge, 1844). See the glossary entries on "J.B.Say" and "Molière."
231 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 the glossary entry on "Molière."
232 The total expenditure of the French state budgeted for 1849 was fr. 1.573 billion and the amount received in taxes and other charges was fr. 1.412 billion, creating a deficit of fr. 160.8 million. The total amount for the Colonial Service in the Ministry of the Navy and Colonies (which included Algeria) was fr. 20.3 million. Annuaire de l'économie politique et de la statistique pour 1850, p. 21. See Appendix 4 "French Government Finances 1848-1849."
233 France conquered Algiers in 1830 and began a slow process of colonization whereby European settlement took place on the coastal plain. As resistance to the French invasion grew some rebels moved into neighbouring Morocco sparking a brief war between France and Morocco in 1844 which was concluded by the signing of the Treaty of Tangiers. Se the glossary entry on "Algeria."
234 These words have been attributed to Guizot but a note on "Historical Phrases" in Notes and Queries May 29, 1875, p. 421 disputes this. Here the author states that "For many years M. Guizot bore with unruffled humour the burden of having said, "La France est assez riche pour payer sa gloire." This utterance has just been traced, however, to M. John Lemoinne, the well-known writer in the Journal des Débats and employé in the Paris financial house of Rothschild. M. Lemoinne accepts the responsibility of the above phrase, which so enraged the economists when it was written as a justification for the peace which France made with Morocco without asking for any indemnity whatever."
235 [DMH - We have not been able to find the source of this quote.]
236 See the glossary entry on the "Chamber of Deputies."
237 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."
III. The Two Axes [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Les deux haches" (The Two Axes) [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 156-59.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
A petition from Jacques Bonhomme,238 Carpenter, to Mr. Cunin-Gridaine, Minister of Trade.239
Minister and Manufacturer,
I am a carpenter like Jesus; I wield an axe and an adze to serve you.
Now, while chopping and hewing from dawn to dusk on the lands of our lord the king, the idea came to me that my work is just as national as yours.
And this being so, I do not see why Protection should not extend to my worksite as it does to your workshop.
For, when all is said and done, if you make sheets, I make roofs. Both of us in different ways shelter our customers from the cold and rain.
However, I pursue customers while customers pursue you. You have been perfectly successful in forcing them to do so by preventing them from being supplied elsewhere, whereas my customers can go where they please.
What is surprising in this? Mr. Cunin the Minister has remembered Mr. Cunin the weaver and that is only natural. But alas! My humble trade has not given a minister to France, even though it gave a God to the world.
And this God, in the immortal code he bequeathed to men, has not slipped into it the slightest little word that would authorize carpenters to grow wealthy, as you do, at the expense of others.
Look at my position, then. I earn thirty sous a day except for when the day is a Sunday or public holiday. If I offer you my services at the same time as a Flemish carpenter who offered a one sou discount, you would prefer giving him the business.
However, do I need to clothe myself? If a Belgian weaver lays out his woolen cloth side by side with yours, you throw him, and his woolen cloth, out of the country.
This means that, since I am forced to come to your shop, which is more expensive, my poor thirty sous are in effect worth only twenty eight.
What am I saying? They are not even worth twenty-six, for instead of throwing the Belgian weaver out at your own expense (this would be the least you could do), you make me pay for the people who, in your interest, you order to drive them away!240
And, since a great many of your co-legislators, with whom you are in perfect collusion, all take one or two sous from me on the pretext of protecting, this one, iron, another coal, others oil or wheat, so at the end of the day I find that I have barely been able to keep fifteen sous of my thirty from being plundered.241
You will doubtless tell me that these small sous, which move with no compensation from my pocket to yours, provide a living for people around your chateau and enable you to live in grand style. To which I would reply, if you allowed me to do so, that they would provide a living for people around me.
Be that as it may, Minister and Manufacturer, knowing that I will receive short shrift from you, I will not come to demand, as I have every right to do, that you abandon the restriction that you place on your customers; I prefer to follow the common route and claim a small slice of protection for myself as well.
At this point you will place a difficulty in my way. "Friend", you will say, "I would like to protect you and your fellow men, but how can I confer Customs favors on the work of carpenters? Will we have to prohibit the import of houses by land and sea?"
That would be somewhat laughable, but by dint of pondering it, I have discovered another way of granting favors to the sons of Saint Joseph, and you would be all the more ready to welcome this, I hope, in that it differs not a whit from the means that constitutes the privilege you vote each year in your favor.
This marvelous means is to forbid the use of sharpened axes in France.
I say that this restriction would be no more illogical or arbitrary than that to which we are subject with regard to your woolen cloth.
Why do you chase Belgians away? Because they sell cheaper than you. And why do they sell cheaper than you? Because as weavers, they have a superiority of some sort over you.
Between you and the Belgians, therefore, there is just about the same difference as between a dull and sharp axe.242
And you force me, as a carpenter, to buy the product of the dull axe!
Think of France as a worker who, through his work, wants to buy himself all sorts of things, including woolen cloth.
He has two ways of doing this:
The first is to spin and weave the wool.
The second is to manufacture clocks, wallpaper or wine, for example and deliver them to Belgians in return for woolen cloth.
Whichever of these two procedures gives the best result may be represented by the sharp axe and the other by the dull one.
You do not deny that we currently obtain a length of cloth from a loom in France with more work and effort (that is the dull axe) than from a vine (that is the sharp axe). You absolutely cannot deny it because it is exactly through consideration of this extra effort (which in your scheme of things constitutes wealth) that you recommend, and what is more, you require that we use the worse of the two axes.
Well then! Be consistent and impartial, if you wish to be just, and treat poor carpenters as you treat yourselves.
Pass a law that says:
"No one can use anything other than beams and joists produced by dull axes."
See what would happen immediately.
Where we once gave one hundred blows of the axe, we now give three hundred. What we once could do in an hour now requires three. What a powerful incitement to work! There would no longer be enough apprentices, guild craftsmen and masters. We would be sought after, and therefore well paid. Whoever wanted to have a roof would be obliged to submit to our demands, just as those who want cloth are obliged to submit to yours.
And if these theoreticians in favor of free trade ever dare to call into question the usefulness of the measure, we will know very well where to turn for a triumphant refutation. Your parliamentary inquiry of 1834243 is there. We will beat them with it, for in it you have admirably pleaded the cause of prohibition and dull axes, which are one and the same.
Endnotes238 "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]."
239 Laurent Cunin-Gridaine (1778-1859) was a very successful , self-made textile manufacturer from Sedan. As Minister for Trade from 1840 to 1848 he was a strong supporter of protection for the textile industry. See the glossary entry on "Cunin-Gridaine."
240 According to the Budget figures for 1848 the French government spent fr. 24.3 million on the salaries of workers in the Customs Service and fr. 703,000 on other administrative costs for a total of about fr. 25 million. See the glossary on "French Government Finances 1848-1849."
241 Without taking into account the increase in prices for goods protected from foreign competition, according to the Budget figures for 1848 the French government spent fr. 15 million on direct subsidies to exporters and a further fr. 4.3 on other subsidies, for a total of fr. 19.3 million. Other government expences which might benefit the industries mentioned here are hard to determine. For example, the Ministry of Public Works spent fr. 23.2 million on the railways (iron) and the Ministry of War spent fr. 11.6 million on uniforms and housing (textiles). (See the glossary on "French Government Finances 1848-1849."
242 Bastiat probably got the idea of a sophism about the sharp and the blunt axes from the English free trader Thomas Perronet Thompson who wrote a critique of the French government inquiry into tariff policy in 1834 in which he stated that "The liberty of commerce would increase the aggregate total of consumption, by all the difference of prices; in the same manner as the quantity of wood a man cuts, would be increased by the liberty of using a sharp hatchet instead of a blunt one." "Contre-Enquête" in Exercises (1842), vol. 3, p. 213.
243 There were two reviews of French tariff policy: one in 1822 under the Restoration which created the modern alliance of powerful interest groups which benefited from protectionism; and a second in 1834 under the July Monarchy. The government inquiry into French tariff policy held in October 1834 raised hopes that there was some hope that it might lead to a reduction in the level of tariffs as the Minister of Commerce, Thiers, was in favor. However, the Inquiry concluded that France should continue its protection of industry. The Inquiry resulted in a detailed 3 volume report issued by the Superior Council of Commerce in 1835. The list of members of the inquiry read like a "who's who" of the protectionists Bastiat mentions and criticizes throughout the Economic Sophisms. See Enquête relative à diverses prohibitions établies à l'entrée des produits étrangers (1835). It was 1,459 pages in length and was printed by the government printing office at taxpayers' expence. See "French Tariff Policy" in Appendix 3 "Economic Policy and Taxation."
IV. The Lower Council of Labor [n.d.] [edit3]↩
Publishing history- Original title, place and date of publication: "Conseil inférieur du travail" (The Lower Council of Labor)] [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 160-63.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
"What! You have the nerve to demand for every citizen the right to sell, purchase, barter, exchange and give and receive services for services244 and allow him to judge for himself on the sole condition that he does not infringe honesty and that he satisfies the public Treasury? You therefore want to snatch work, pay and bread from the workers?"
This is what we are being told. I know what to think of this, but I wanted to find out what the workers themselves think.
I had an excellent instrument available for carrying out surveys.
It was not at all one of the Superior Councils of Industry245 in which large landowners who call themselves ploughmen, powerful ship owners who think they are sailors and rich shareholders who claim to be workers carry out the sort of philanthropy we all know about.
No, these were proper workers, serious workers, as they are now called, joiners, carpenters, masons, tailors, shoemakers, dyers, blacksmiths, innkeepers, grocers, etc., etc., who founded a mutual aid society246 in my village.
Using my own authority, I transformed this into a Lower Council of Labor247 and obtained from it an inquiry which is every bit as good as any other although it is not stuffed with figures and swollen to the size of a quarto volume printed at State expense.248
It took the form of questioning these fine people on the way they are, or believe they are affected by the protectionist regime. The Chairman pointed out to me that this was something of an infringement of the conditions for the existence of the association. For in France, this land of freedom, people who form an association give up any to right to discuss politics, that is to say any discussion of their common interest.249 However, after much hesitation, he included the question on the agenda.
The assembly was divided into as many commissions as there were groups of various trades. Each one was given a chart that it had to complete after two weeks of discussion.
On the due date, the venerable Chairman took his seat on the official chair (this is a formal expression since it was just an ordinary chair) and found on the desk (another formal expression since it was a table made of poplar wood) about fifteen reports, which he read in turn.
The first was from the tailors. Here is a copy of it that is as accurate as if it were a facsimile.
THE EFFECTS OF PROTECTION - THE REPORT FROM THE TAILORS
Disadvantages 1. Because of the protectionist regime, we pay more for bread, meat, sugar, wood, yarn, needles, etc., which amounts to a considerable reduction in earnings for us; 2. Because of the protectionist regime, our customers also pay more for everything, which leaves them less to spend on clothes, from which it follows that we have less work and therefore less profit; 3. Because of the protectionist regime, fabrics are expensive and people make their clothes last longer or go without. This is also a reduction in work, which forces us to offer our services at a discount. |
Advantages None (1) (1) No matter how we took our measurements, we found it impossible to find any way whatsoever in which the protectionist regime is advantageous to our business. |
Here is another table:
THE EFFECTS OF PROTECTION - THE REPORT FROM THE BLACKSMITHS
Disadvantages 1. The protectionist regime inflicts on us a tax, that does not go to the Treasury, each time we eat, drink, heat ourselves or dress ourselves; 2. It inflicts a similar tax on our fellow citizens, who are not blacksmiths, and since they are poorer by this amount most of them make wooden nails and door latches from string, which deprives us of work; 3. It keeps iron at such a high price that in the countryside no one uses it in carts, grills or balconies and our trade, which is capable of providing work for so many people who have none, is lacking work for us ourselves; 4. What the tax authorities fail to raise on goods that are not imported is taken on our salt and letters. (see footnote below) |
Advantages None |
[Footnote on salt and letters.]250
All the other tables, which I will spare the reader, echoed the same refrain. Gardeners, carpenters, shoemakers, clog makers, boatmen and millers all expressed the same complaints.
I deplored the fact that there were no farm labourers in our association. Their report would certainly have been very instructive.
But alas! In our region of Les Landes,251 the poor farm labourers, as protected as they are, do not have a sou, and, after they have seen to the welfare of their own cattle, they themselves cannot join any mutual aid societies. The alleged favors of protection do not stop them from being the pariahs of our social order. What shall I say about vine growers?
What I noted above all was the common sense with which our villagers saw not only the direct harm that the protectionist regime was doing them but also the indirect harm which, as it affected their customers, ricocheted or flowed252 on to them.
This is what, I said to myself, the economists of Le Moniteur industriel253 appear not to understand.
And perhaps those men who are dazzled by a little protection, in particular the tenant farmers, would be ready to give it up if they saw this side of the question.
Perhaps they would say to themselves "It is better to provide for oneself surrounded by prosperous customers than to be protected surrounded by impoverished ones."
For wanting to enrich each industry in turn by creating an economic void around them is as vain an effort as trying to jump over your shadow.
Endnotes244 [DMH - Bastiat uses the phrase "rendre et recevoir service pour service." See the glossary entry on "Servie for Service".]
245 An ordinance of 1831 created within the Ministry of Commerce a "Conseil supérieur du commerce" (Superior Council of Commerce) which had the authority to conduct official inquiries into matters such as tariff policy. The first such enquiry was held in October 1834 at which the largest and most politically well-connected manufacturers, land owners and merchants closed ranks in their opposition to any tariff reform. See the glossary entry "Superior Council of Commerce."
246 [Societies similar to the English "Friendly Societies". Their role is described in chapter XIV of volume 5 (On salaries).] EH ???
247 Bastiat is making fun of the activities of the Superior Council of Commerce (see note above) the members of which were ardent supporters of protectionism. Bastiat is here imagining what would happen if an "Inferior" (or lower) Council made up of smaller businessmen and artisans were able to have their say.
248 Bastiat is referring to the detailed 3 volume report issued by the Superior Council of Commerce in 1835 based upon the findings of its inquiry held in October 1834. The list of members of the inquiry read like a "who's who" of the protectionists Bastiat mentions and criticizes throughout the Economic Sophisms. See Enquête relative à diverses prohibitions établies à l'entrée des produits étrangers (1835). It was 1,459 pages in length and was printed by the government printing office at taxpayers' expence. See the glossary entry "Superior Council of Commerce."
249 Bastiat has in mind the restrictions imposed by the Chapelier Law of 1791. Jean Le Chapelier (1754-1794) was a lawyer and politician during the early phase of the French Revolution. He was elected to the Estates General in 1789 and was a founder of the radical Jacobin Club. He is most famous for introducing the "Le Chapelier Law" which was enacted on 14 June, 1791. The Assembly had abolished the privileged corporations of masters and occupations of the old regime in March and the Le Chapelier Law was designed to do the same thing to organizations of both entrepreneurs and their workers. The law effectively banned guilds and trade unions (as well as the right to strike) until the law was altered in 1864. Article 2 of the Le Chapelier Law of June 1791 states that: "Citizens of the same occupation or profession, entrepreneurs, those who maintain open shop, workers, and journeymen of any craft whatsoever may not, when they are together, name either president, secretaries, or trustees, keep accounts, pass decrees or resolutions, or draft regulations concerning their alleged common interests."
250 In 1849 the income the French government received from taxes and tariffs on salt was fr. 25.6 million and from the monopoly on mail fr. 49.8 million, out of total income of fr. 1.4 billion. The total revenue from tariffs and customs duties was fr. 156.8 million. See Annuaire de l'économie politique et de la statistique pour 1850, p. 24. See the Appendix on "French Government Finances in 1848-49."
251 Bastiat came from Les Landes in south west France and represented it in the Constituent and National Assemblies after the February 1848 Revolution. See the glossary entry on "Les Landes."
252 Sometime in 1847 Bastiat came across the notion of "the ricochet effect" by which he meant the concatenation of effects caused by a single economic event which "rippled" outwards from its source causing indirect flow on effects to third and other parties. Some other words and phrases one could use to describe this are "knock on effects", "unintended consequences," "a cascade of consequences," and so on. A key insight behind this term is the idea that all economic events are tied together by webs of connectivity and mutual influence. It links up very nicely with his theory of "the seen and the unseen" which he developed at length in a longer pamphlet in July 1850, "What is Seen and What is Not Seen," (see below, pp. ???). The "ricochet effects" are thus unexpected and unseen consequences of an economic event such as a new tax or tariff or other intervention in the economy which may take some time to be observed but which can be foreseen by economists. See the Appendices "Bastiat and the Ricochet Effect" and "The Sophism Bastiat never wrote: the Sophism of the Ricochet Effect."
253 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".
VII. A Chinese Tale [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Conte chinois" (A Chinese Tale) [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 182-87.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
People are crying out at the greed and selfishness of this century!
For my part, I see that the world, and especially Paris, is peopled with so many Deciuses278.
Open the thousand volumes, the thousand journals and the thousand literary and scientific articles that publishers in Paris spew out over the country every day; is all this not the work of little saints?
What verve is used to paint the vices of our day! What touching tenderness is shown for the masses! With what liberality are the rich invited to share with the poor, if not the poor to share with the rich! How many plans for social reform, social progress and social organizations are put forward! Is there a writer, however humble, who does not devote himself to the well-being of the working classes? All you need is to give them an advance of a few écus for them to purchase the time to indulge in their humanitarian lucubrations.
And then we dare to speak of the selfishness and individualism of our time!
There is nothing that is not claimed to be serving the well-being and moral improvement of the people, nothing, not even the Customs Service. Perhaps you believe that this is a tax machine, like city tolls or like the toll booth at the end of the bridge? Not at all. It is an institution that is essentially civilizing, fraternal and egalitarian. What can you do? It is the fashion. You have to instill or pretend to instill sentiment and sentimentalism everywhere, even in the inspection booth with its "anything to declare?".
But to achieve these philanthropic aspirations, the Customs Service, it must be admitted, has some strange procedures.
It sets up an army279 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, and all of this to succeed in exercising on the productive output of the people the negative action summarized by the word prevent.
Note that I do not say tax, but quite precisely prevent.
And prevent, not those acts condemned by tradition nor those that are contrary to public order, but transactions that are agreed to be innocent and even such as to encourage peace and union between peoples.
Humanity, however, is so flexible and adaptable that, in one way or another, it always overcomes such impediments. This requires additional work.
If a people are prevented from bringing in their food from abroad, they produce it at home. This is more difficult, but they have to live. If they are prevented from crossing the valley, they go over the peaks. This takes longer, but they have to get there.
This is sad, but there is something pleasant about it too. When the law has created a certain number of obstacles in this way, and when in order to circumvent them humanity has diverted a corresponding amount of work, you have no right to demand a reform to the law, for, if you point out the obstacle, you will be shown the amount of work it gives rise to and if you say: "That is not created work but diverted work", you will be given the answer published in L'Esprit Public: "Impoverishment alone is certain and immediate; as for enrichment, it is more than hypothetical."280
This reminds me of a Chinese tale, which I will now tell you.
Once upon a time, there were two major towns in China, Chin and Chan. They were linked by a magnificent canal. The Emperor thought it a good thing to throw huge boulders into it to make it unusable.
When he saw this, Kouang, his Prime Mandarin, said to him: "Son of Heaven, you are making a mistake."
To which the Emperor replied: "Kouang, you are talking nonsense."
You will understand, of course, that I am reporting only the gist of the conversation.
Three moons later, the Heavenly Emperor called the mandarin and said to him: "Kouang, look at this."
And Kouang, opening his eyes wide, looked.
And he saw, some distance from the canal a host of men working. Some were digging, others were filling, this group was leveling and that one paving, and the highly literate mandarin said to himself: "They are making a road."
After a further three moons, the Emperor called Kouang and said to him: "Look!"
And Kouang looked.
And he saw that the road had been finished and he noted that all along the way, from one end to the other, inns had been built. A host of pedestrians, carts and palanquins were going to and fro and countless Chinese, worn out with fatigue, carried heavy burdens hither and thither from Chin to Chan and from Chan to Chin. And Kouang said to himself: "It is the destruction of the canal that is giving work to these poor people". However the notion that this work has been diverted from other employment did not occur to him.
And three moons passed and the emperor said to Kouang: "Look!"
And Kouang looked.
And he saw that the inns were constantly full of travelers and that, as these travelers were hungry, shops for butchers, bakers, pork butchers and sellers of swallows' nests had grown up around them. And as these honest artisans could not remain unclothed, tailors, shoemakers, the sellers of parasols and fans also set up shop, and since nobody could sleep in the open, even in the Heavenly Empire, carpenters, masons and roofers had migrated there too. Then came police officers, judges and fakirs; in a word, a town grew up with suburbs around each hostelry.
And the Emperor said to Kouang: "What do you think of this?"
And Kouang replied: "I would never have believed that the destruction of a canal could create so much work for the people", for it never occurred to him that this was not created work but diverted work, that travelers ate when they journeyed along the canal just as much as they later did when forced to go by road.
However, to the great astonishment of the Chinese, the Emperor died, and this Son of Heaven was laid in the ground.
His successor summoned Kouang and said to him: "Clear the canal."
And Kouang said to the new Emperor: "Son of Heaven, you are making a mistake."
To which the Emperor replied: "Kouang, you are talking nonsense."
But Kouang persisted and said: "Sire, what is your intention?"
"My intention", said the Emperor, "is to facilitate the traffic of people and goods between Chin and Chan, to make transport less expensive so that the people obtain tea and clothing more cheaply."
But Kouang was prepared for this. He had received a few issues of Le Moniteur industriel,281 a Chinese journal, the previous day. Having learnt his lesson well, he requested permission to reply and, having received it, after bowing his forehead to the parquet floor nine times, he said:
"Sire, you are aiming, by facilitating transport, to reduce the cost of consumer products in order to make them affordable by the people, and to do this, you have begun by removing from them all the work that the destruction of the canal had generated. Sire, in political economy, nominally low prices282 … The Emperor interrupted: "I think you are reciting from memory." Kouang said: "That is true. It would be easier for me to read." And, unfolding L'Esprit Public, he read:
"In political economy, nominal cheapness of consumer products is a secondary matter. The problem lies in a balance between the price of work and that of the objects that are necessary to life. Abundance of work is the wealth of nations and the best economic system is the one that gives them the greatest amount of work possible. Do not ask whether it is better to pay 4 cash units or 8 cash units for a cup of tea or 5 taels or 10 taels for a shirt. These are childish considerations that are unworthy of a serious mind. No one queries your proposition. The question is to determine whether it is better to pay more for products and, through the abundance and higher price of work, have more means to acquire them or whether it is better to reduce the opportunities for work, diminish the total amount of national production283, transport consumer products more cheaply by water, admittedly at lower cost, but at the same time deny some of our workers the possibility of buying them, even at these reduced prices."
As the Emperor was not fully convinced, Kouang said to him: "Sire, deign to wait awhile. I can also quote from Le Moniteur industriel."
But the Emperor cut him short:
"I have no need of your Chinese journals to know that to create obstacles is to shift labor from one side to another. This, however, is not my mission. Go on, clear the canal. Then we will reform the Customs Service."
And Kouang went away, tearing out his beard and crying: "Oh Fô! Oh Pê! Oh Lî! And all the monosyllabic and circumflexed gods in Cathay, take pity on your people, for we have been given an Emperor of the English School284 and I can see that, in a little while, we will be short of everything, because we will no longer have any need to make anything."
Endnotes278 [Publius Decius Mus was a Roman consul and a military leader. When his legion was on the verge of defeat, in 340 BC, he invoked the gods and hurled himself into the enemy ranks. He was killed but assured the victory of the legion. His son and grandson, of the same name, followed his example respectively in 295 and 279.]
279 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 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 the Appendix "French Government Finances 1848-1849."
280 L'Esprit public was a journal founded by Guy Lesseps in 1845 which merged with La Patrie in 1846. La Patrie supported the constitutional monarchy but was a strong critic of François Guizot.
281 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".
282 See ES1 XI "Nominal Prices" for a fuller discussion of this matter, above pp. ???
283 Bastiat uses the word "population" here but this is obviously an error. it should be "production."
284 It is not certain when this sophism was written but Bastiat is referring here to the free trading English school of politicians and political economists who successfully abolished the protectionist "corn laws" in England in May 1846. See the glossary entry on "Anti-Corn Law League," and "The Corn Laws."
X. The Tax Collector [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "Le percepteur" (The Tax Collector) [no date given].
- Published as book or pamphlet: 1st French edition of ES2 alone 1848. 1st edition combined ES1 & ES2 1851.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 198-203.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
Jacques Bonhomme,313 Wine
producer
Mr. Blockhead,314 Tax Collector
Blockhead:315 You have harvested twenty barrels of wine?
Bonhomme: Yes, with much trouble and sweat.
Blockhead: Be so good as to deliver six of the best ones.
Bonhomme: Six barrels316 out of twenty! Good heavens! Do you want to ruin me? To what use are you going to put them, if you please?
Blockhead: The first will be sent to the creditors of the State. When we have debts, the least we can do is to pay them interest.
Bonhomme: And where has the capital gone?317
Blockhead: It would take too long to tell you. Part in the past was placed into cartridges that produced the finest smoke in the world. Another part paid the men who were crippled on foreign soil after having ravaged it. Then, when this expenditure had attracted to our country our friends the enemy, they refused to leave without taking money, which had to be borrowed.
Bonhomme: And what is my share today?
Blockhead: The satisfaction of saying:
How proud I am of being French
When I look at the column318!
Bonhomme: And the humiliation of leaving my heirs an estate encumbered by rent in perpetuity. In the end, we have to pay what we owe whatever crazy use has been made of it. I agree to give one barrel, what about the five others?
Blockhead: One must pay for public services, the civil list, the judges who restore to you the field that your neighbor wants to take possession of, the gendarmes who hunt thieves while you sleep, the road mender319 who maintains the road that takes you to town, the parish priest who baptizes your children, the teacher who raises them and my good self, none of whom works for nothing.320
Bonhomme: That is fair - a service for a service.321 I have no objection to that. I would rather sort things out directly with my parish priest and schoolteacher,322 but I will not insist on this. I agree to give another barrel but there is a long way to go to six.
Blockhead: Do you think it is asking too much for two barrels as your contribution to the cost of the army and navy?
Bonhomme: Alas, it is not much in comparison with what they are costing me already, for they have already taken from me two sons that I loved dearly.
Blockhead: We have to maintain the balance of power in Europe.
Bonhomme: My God! The balance would be the same if these forces were reduced everywhere by half or three-quarters. We would preserve both our children and our revenue. All we need to do is agree on this.
Blockhead: Yes, but we do not agree.
Bonhomme: That is what astonishes me. For in the end everyone suffers.
Blockhead: You wanted this, Jacques Bonhomme.
Bonhomme: You are joking, M. Tax Collector. Do I have a say in the matter?
Blockhead: Who have you voted for as your deputy?323 324
Bonhomme: An upright army general who will shortly become a marshal if God gives him a long enough life.325
Blockhead: And on what does this good general live?
Bonhomme: On my barrels, I imagine.
Blockhead: And what would happen if he voted for a reduction in the army and your contribution?
Bonhomme: Instead of becoming a marshal, he would be retired.
Blockhead: Do you now understand that you have yourself …
Bonhomme: Let us move on to the fifth barrel, if you please.
Blockhead: That goes to Algeria.326
Bonhomme: To Algeria! And we are assured that all Muslims are wine-haters, what barbarians! I have often asked myself whether they know nothing of Médoc because they are infidels or infidels because they know nothing of Médoc.327 Besides, what services do they do me in return for this ambrosia that has cost me so much work?
Blockhead: None. For the reason that it is not intended for Muslims but for the good Christians who spend their time in Barbary.
Bonhomme: And what are they going to do there that will be useful to me?
Blockhead: Carry out incursions and be subjected to them; kill and be killed; catch dysentery and return for treatment; excavate ports, construct roads, build villages and people them with Maltese, Italians, Spanish and Swiss nationals who will live off your barrel and many other barrels which I will come to ask you for later.
Bonhomme: Mercy on us! This is too much and I refuse outright to give you a barrel. A wine producer who indulged in such folly would be sent to Bicêtre328. Driving roads through the Atlas! Good heavens! And to think I cannot leave my own home! Excavating ports in Barbary when the Garonne is silting up more every day! Taking the children I love from me in order to torment the Kabyls!329 Having me pay for the houses, seed and horses that are delivered to Greeks and Maltese when there are so many poor people around us!
Blockhead: Poor people, that is the point! The country is being relieved of this surplus population.
Bonhomme: Thank you very much! By keeping them alive in Algeria on capital that would enable them to live here.330
Blockhead: And then you are establishing the bases for a great empire; you are bringing civilization to Africa and bedecking your country in immortal glory.331
Bonhomme: You are a poet, M. Tax Collector, but I am a wine producer and I refuse.
Blockhead: Just think that in a few thousand years, you will be repaid your advances a hundredfold. This is what those in charge of the enterprise tell us.
Bonhomme: And in the meantime, they used only at first to ask for one cask of wine to meet the costs, then it was two then three and here I am being taxed a whole barrel. I continue to refuse.
Blockhead: You no longer have any time to do this. Your political delegate332 has stipulated a toll333 for you of one barrel or four full casks.
Bonhomme: That is only too true. Cursed be my weakness! I also thought that by giving him my mandate334 I was being rash, for what is there in common between an army general and a poor wine producer?
Blockhead: You can see clearly that there is something in common between you, if only the wine that you produce and that he votes for himself in your name.
Bonhomme: Make fun of me, I deserve it, M. Tax Collector. But be reasonable with it; leave me at least the sixth barrel. The interest on the debts have been paid, the civil list provided for, public services assured and the war in Africa perpetuated. What more do you want?
Blockhead: You cannot bargain with me. You should have made your intentions clear to the general. Now, he has disposed of your harvest.
Bonhomme: Damned Bonapartist Guardsman!335 But in the end, what are you going to do with this poor barrel, the flower of my cellars? Here, taste this wine. See how smooth, strong, full-bodied, velvety, and what a fine color …
Blockhead: Excellent! Delicious! Just the job for M. D…336 the cloth manufacturer.
Bonhomme: M. D… the cloth manufacturer! What do you mean?
Blockhead: That he will get a good share of it.
Bonhomme: How? What is all this? I am blowed if I understand you!
Blockhead: Do you not know that M. D… has set up an enterprise that is very useful to the country, and which, in the end, makes a considerable loss each year?
Bonhomme: I pity him wholeheartedly. But what can I do?
Blockhead: The Chamber has understood that if this continued M. D… would face the choice of either having to operate his factory better or closing it.
Bonhomme: But what is the connection between faulty business dealings on M. D's part… and my barrel?
Blockhead: The Chamber considers that if it delivered to M. D… some of the wine from your cellar, a few hectoliters of wheat from your neighbors and a few sous subtracted from the earnings of the workers, his losses would be transformed into profits.
Bonhomme: The recipe is as infallible as it is ingenious. But, heavens above, it is terribly iniquitous! What! M. D… is to cover his debts by taking my wine from me?
Blockhead: No, not exactly your wine but its cost. This is what we call incentive subsidies. But you are totally speechless! Do you not see what a great service you are rendering to the country?
Bonhomme: You mean to M. D…?
Blockhead: To the country. M. D… ensures that his industry prospers, thanks to this arrangement, and in this way, he says, the country gets richer. This is what he told the Chamber of which he is a member, in the last few days.
Bonhomme: This is rank dishonesty! What! An ignoramus sets up an idiotic enterprise and loses his money, and if he extorts enough wine or wheat to cover his losses and even achieve some profit this will be seen as a gain for the entire country!
Blockhead: As your authorized representative337 has judged this to be so, you have no option but to hand over to me your six barrels of wine and sell as best you can the fourteen barrels I am leaving you.
Bonhomme: That is my business.
Blockhead: You see, it would be very unfortunate if you did not get a high price for them.
Bonhomme: I will see to it.
Blockhead: For there are a lot of things that this price has to cover.
Bonhomme: I know, Sir, I know.
Blockhead: First of all, if you purchase iron to replace your shovels and ploughs, a law has decided that you will pay twice as much as it is worth to the ironmaster.
Bonhomme: Is that so? We must be in the Black Forest!338
Blockhead: Then, if you need oil, meat, canvas, coal, wool or sugar, each of these, according to the law, will cost you double their worth.
Bonhomme: But this is terrible, frightful and abominable!
Blockhead: What is the use of complaining? You yourself, through your authorized representative,339 …
Bonhomme: Leave my mandate340 alone! I have given it in an odd way, it is true. But I will no longer be hoodwinked and will have myself represented341 by a good, upright member of the peasantry.
Blockhead: Nonsense! You will re-elect342 the good general.
Bonhomme: I! I will re-elect the general to distribute my wine to Africans and manufacturers?
Blockhead: You will re-elect him, I tell you.
Bonhomme: That is going a bit far. I will not re-elect him if I do not wish to do so.
Blockhead: But you will want to and you will re-elect him.
Bonhomme: Just let him come here looking for trouble.. He will see with whom he has to deal.
Blockhead: We will see. Goodbye. I will take your six barrels and divide them up in accordance with the general's decision.343
Endnotes313 "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]."
314 Bastiat again uses a made up word to poke fun at his adversaries, in this case the Tax Collector. He calls him "Monsieur Lasouche" which the FEE translator translated as "Mr. Clodpate" (p. 198). Since "la souche" means a tree stump, log, or stock we thought "Mr. Blockhead" might be appropriate here. This is also the translation used by George Roche in A Man Alone, p. 60. Bastiat's uses the word "souche" in another context in 1847 when he wrote a brief draft of a chapter on Montaigne's essay "Le Profit d'un est dommage de l'autre" (One man's gain is another man's loss). He called this phrase the "classical example of a sophism, the root stock sophism from which comes multitudes of sophisms" (Sophisme type, sophisme souche, d'où sortent des multitudes de sophismes). See ES3 15, pp. 000-00. See the glossary entry on "Montaigne."
315 We have added the names of the speakers in order to assist the reader. When the protagonists refer to each by name we have followed what was used in the original French.
316 Bastiat uses a number of terms to express the volume measurement of wine, some of which are regional and not exactly defined. The common one is "tonneau" (barrel or butt) which is a measure of 126 gallons. Bastiat also uses the term "pièce" (cask) which some dictionaries define as equal to a "tonneau" (barrel) but which Bastiat defines here as one quarter of a barrel. Since Bastiat was a wine grower himself we will defer to his knowledge of the matter.
317 Total debt held by the French government in 1848 amounted to fr. 5.2 billion. According to the Budget Papers for 1848 total government spending was fr. 1,446,210,170 (with a deficit of fr. 54,933,660). Of this, fr. 384,346,191 was spent to service the public debt, making up 26.6% of the total budget. Given the fact that military expenditure was a very high proportion of overall government expenditure in the 19th century, the vast bulk of the consolidated debt had been incurred in funding previous military activity. There is also debt which had been incurred in providing military pensions (fr. 39.3 million). Total military spending in 1848 amounted to fr. 460.5 million (31.8%) of which fr. 322 million was for the Ministry of War and fr. 138.5 million was for the Ministry of the Navy and Colonies. Thus the total for the repayment of past debt and current military expenditure was fr. 844.8 million which was 58.4% of total government spending for the year. See the Appendix on "French Government Finances in 1848-49."
318 These lines come from a song called "La Colonne" (The Column) (1818) written by the "goguettier" (a member of a social club where political, patriotic and drinking songs were sung) Paul Émile Debraux (1796-1831). Debraux was an arch-supporter of Napoleon and wrote many songs extolling his virtues. "The Column" is one of these and is a tribute to the building of the Colonne Vendôme by Napoleon in 1810 to celebrate the French victory at the Battle of Austerlitz in 1805. It is a 44 metre high column erected on the Place Vendôme made from the melted bronze cannons taken from the enemy. Bastiat misremembers the exact words which read "Ah! Qu'on est fier d'être Français / Quand on regarde la calonne!" (how proud one is to be French when one looks at the column). In Choix de chansons nationales anciennes, nouvelles et inédites. Par MM. P.-J. Béranger, Casimir Lavigne, Emile Debraux, etc. (Paris: Les Marchands de Nouveautés, 1831), p. 56. See the glossary entries on "Goquettier" and "Béranger."
319 Bastiat uses the word "cantonnier" here. See previous footnote on Corps de Cantonniers, ES1 "Reciprocity," pp.. ???
320 According to the Budget Papers for 1848 the following amounts were spent: the Civil List (upkeep of the Monarch) fr. 13.3 million; justice within the Ministry of Justice and Religion fr. 26.7 million; police in the Ministry of the Interior fr. 22.8 million; prisons in the Ministry of the Interior fr. 7.2 million; the Ministry of Public Works fr. 63.5 million; religion within the Ministry of Justice and Religion fr. 39.6 million; Part IV of the Budget Papers lists the costs of administration and collecting taxes (includes personnel) fr. 156.9 million. See Appendix 4 "French Government Finances 1848-1849."
321 [DMH - Bastiat uses the phrase "service pour service." See the glossary entry on "Servie for Service".]
322 Bastiat uses the phrase "s'arranger directement" (to engage in an exchange directly with a supplier of a good or service). Throughout this chapter Bastiat uses numerous different words and phrases to describe the way in which representative democracy works. In doing this he is pointing out the differences between two very different ways of conducting one's affairs. The first is private, namely the strict legal process of giving someone power of attorney to act on one's behalf, or the market process of making a contract with somebody to provide a service which is voluntarily paid for. For this Bastiat uses the words "placer une procuration" (to appoint someone to act with one's power of attorney) and "s'arranger directement" (to engage in an exchange directly with a supplier of a good or service). The second is political, namely voting for a politician who will represent one's interests in the Chamber of Deputies. For this Bastiat uses the words "nommer pour député" (nominate as one's representative) or "se faire représenter par qqn" (to be represented by somebody). The tension in this chapter comes from the dissonance between the wine maker Jacques Bonhomme, who thinks of the world in the former sense and therefore thinks the person he voted for in the election will act in his interests and not those of the politician himself or those of powerful manufacturers and other vested interests, and the tax collector M. Blockhead, who uses euphemisms and language drawn from the private legal and economic world to describe the way in which representative politics works. He keeps referring to Bonhomme's political representatives as "votre chargé de pouvoirs" (the person you have appointed to exercise political powers), "votre fondé de pouvoirs" (the person you have set up to wield political power over you), and "votre chargé de procuration" (the person you have appointed with power of attorney over you affairs), which confuses and infuriates Bonhomme because he doesn't think he has done these things.
323 Bastiat uses the phrase "nommer pour député" (nominate as one's representative). See note above for details concerning Bastiat's terminology in this chapter.
324 Since Jacques is able to vote he must have been part of that wealthy minority of about 240,000 people who were entitled to vote because they paid more than fr. 300 per annum in direct taxes. See the glossary entry on "Chamber of Deputies." From this point on in the sophism Bastiat turns to the nature of representative politics. Bastiat also wrote what might be called "political sophisms" to debunk fallacies of a political nature, especially concerning electoral politics and the ability of political leaders to initiate fundamental reforms. Good examples of the former are "Electoral Sophisms" and "The Elections" in CW1, pp. 397-404, 404-9; and of the latter are "The Tax Collector" and "The Utopian" in this volume. See the glossary entries on "Bastiat's Political Sophisms" and "Utopias."
325 Bastiat may have in mind General Lamoricière (1806-1865) who was a general, an elected deputy, minister of war under Cavaignac (1848), and took part in the military suppression of the rioting during the June Days of 1848. He played a significant role in the colonization of Algeria and supported government plans in 1848 to subsidize its civilian colonization. See the glossary entry on "Lamoricière."
326 France invaded and conquered Algeria in 1830. In 1848 parts of French Algeria were established as 3 Départements within the French government and an official program to encourage French settlers to move there was begun. Two justifications given in favor of colonization was that France's "surplus population" could be settled in Algeria and that Algeria would become a profitable market for French goods. See Bastiat's discussion of Algeria in WSWNS, chap. 10, pp. 000-00 and "Algeria" in Appendix 2 "The French State and Politics."
327 Médoc is a wine growing region in the Département of Gironde near Bourdeaux a little to the north of Les Landes where Bastiat lived. According to the 1855 official classification of Bourdeaux wines the red wines from this region are called "médoc."
328 Bicêtre hospital on the southern outskirts of Paris was built by Louis XIII in 1633 to care for old and injured soldiers. Under Louis XIV (1656) it was used to house the insane and other political and social "undersirables". It was here during the Revolution that the guillotine was tested on live sheep and the cadavers of prisoners. Victor Hugo's novel opposing the death penalty, Le Dernier Jour d'un condamné (The Last Days of a Condemned Man) (1829), was set in Bicêtre. See glossary entry on "Bicietre Hospital and Asylum."
329 The Kabyls are a Berber tribal community who live in Algeria and Tunisia. They were subject to French conquest when the French took Algeria in 1830. See the glossary entry on "Algeria."
330 Bastiat wrote this sophism possibly in 1847 before the government began to actively subsidize the colonization of Algeria in 1848. The JDE gives a figure of fr. 120 millions spent in Algeria in 1847 and makes a very similar argument to that of Bastiat, that the money is taken from French taxpayers and then gviven to the troops and then into the hands of the merchants who service the needs of those troops. It goes further to argue that the civilian population of Algeria is 113,000 of which 6,000 live in administration towns and are paid by the French civilian administration out of tax payers' funds, leaving 107,000 who are paid by the army out of tax payer's funds. In "Algeria" chap. 10 of WSWNS (written in 1850) Bastiat states that fr. 8,000 was spent by the state for each colonist it subsidized to settle in Algeria. He believes that French workers at home could live well on half that amount of capital. See "Chronique" in JDE, February 1848, T. 19, p. 315. See "Algeria" in Appendix 2 "The French State and Politics."
331 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."
332 Bastiat uses the phrase "votre chargé de pouvoirs" (the person you have appointed to exercise political powers). See note above for details concerning Bastiat's terminology in this chapter.
333 The "octroi" or the tax on goods brought into a town or city was imposed on consumer goods which had to pass through tollgates which had been built on the outskirts of the town or city where they could be inspected and taxed. They were used to fund city expences such as infrastructure. See "French Taxation".
334 Bastiat uses the phrase "donner ma procuration à qqn" (to grant s.o. my power of attorney). See note above for details concerning Bastiat's terminology in this chapter.
335 Bastiat uses the word "Grognard" ("grogner" means to groan with pain) which was the name given to soldiers of the Old Guard of Emperor Napoleon who were his most devoted and committed soldiers and who were often expected to fight in extreme conditions, hence their reputation for groaning and grumbling about their circumstances.
336 [DMH - We have not been able to identify who "M. D..." the textile manufacturer might be.]
337 Bastiat uses the phrase "votre fondé de pouvoirs" (the person you have set up to wield political power over you). See note above for details concerning Bastiat's terminology in this chapter.
338 The Black Forest was notorious for having highwaymen who would rob travellers. See the earlier footnote about the Forest of Body near Paris which was also a notorious refuge for highwaymen, pp. ???
339 Bastiat uses the phrase "votre chargé de procuration" (the person you have appointed with power of attorney over you affairs). See note above for details concerning Bastiat's terminology in this chapter.
340 Bastiat uses the word "procuration" (power of attorney or proxy vote). See note above for details concerning Bastiat's terminology in this chapter.
341 Bastiat uses the phrase "se faire représenter par qqn" (to be represented by somebody). See note above for details concerning Bastiat's terminology in this chapter.
342 Bastiat uses the phrase "renommer" (re-elect). See note above for details concerning Bastiat's terminology in this chapter.
343 (Paillottet's note) See the Letter to Mr. Larnac in Tome I. and Parliamentary Conflicts of Interest in vol.1. [DMH - Former "De la réforme parliamentaire" in OC, vol. 1, pp. 480-506. Latter in CW, vol. pp. 452-57.]
XIII. Protection, or the Three Municipal Magistrates399 [n.d.] (final draft)↩
Publishing history- Original title, place and date of publication: "La protection ou les trois Échevins" (Protection, or the Three Municipal Magistrates) [no date given].
- Published as book or pamphlet: 1st French edition of ES1 alone 1848. 1st edition combined ES1 & ES2 1851. Also published as "La Protection ou les Trois Echevins. Démonstration en quatre tableaux," in Annuaire de l'économie politique et de la statistique pour 1847, par MM. Joseph Garnier et Guillaumin … 4e année. (Paris: Guillaumin, 1847), pp. 266-70.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 4: Sophismes économiques. Petits pamphlets I. (1854), 2nd ed., pp. 229-41.
- Previous translation: 1st American ed. 1848, 1st British ed. 1873, FEE ed. 1964. See "Note on the Publishing History."
A staged argument in four scenes.
SCENE 1
(The scene takes place in the town house of Pierre, a municipal magistrate. The window gives a view of a beautiful park; three people are sitting round a table near a good fire.)
PIERRE: I say! A fire is very welcome when the Inner Man400 is satisfied! You must agree that it is very pleasant. But, alas! How many honest people, like the King of Yvetot401,
For lack of wood, blow
On their fingers.
What unfortunate creatures! Heaven has inspired a charitable thought in me. Do you see these beautiful trees? I want to cut them down and distribute the wood to the poor.
PAUL and JEAN: What! Free of charge?
PIERRE: Not exactly. My good works would soon be over if I dissipated my assets in this way. I estimate that my park is worth twenty thousand livres; by cutting it down I will get even more.
PAUL: You are wrong. Your wood left standing is worth more than neighboring forests because it provides more services than they can provide. If it is cut down, like its neighbors it will just be good for heating and will be worth not a denier more for each load.402
PIERRE: Ha, ha! Mr. Theoretician, you have forgotten that I am a practical man. I thought that my reputation as a speculator was well enough established to protect me against being accused of stupidity. Do you think I am going to pass the time selling my wood at the low prices charged for wood floated down the Seine?403
PAUL: You will have to.
PIERRE: What a naive person you are! And suppose I prevent the wood floated down the river from reaching Paris?
PAUL: That would change the picture. But how will you manage this?
PIERRE: This is the whole secret. You know that wood floated down the river pays ten sous per load on entry. Tomorrow, I will persuade the Municipal Magistrates to raise this duty to 100, 200 or even 300 livres, high enough to ensure that not a single log comes through. Well, do you follow me? If the good people do not want to die of cold, they will have to come to my yard. People will fight to have my wood; I will sell it for its weight in gold and this well-organized charity will enable me to do other good works.
PAUL: Good heavens! What a fine scheme! It makes me think of another in the same vein.
JEAN: Let us see, what is it? Is philanthropy also concerned?
PAUL: What did you think of this butter from Normandy?
JEAN: It is excellent!
PAUL: Ah ha! It seemed all right just now, but do you not find that it sticks in your throat? I want to make better butter in Paris. I will have four or five hundred cows; I will distribute milk, butter and cheese to the poor.
PIERRE and PAUL: What! Free of charge?
PAUL: Bah! Let us always highlight charity! It has such a pretty face that even its mask is an excellent passport. I will give my butter to the people and the people will give me their money. Is this known as selling?
JEAN: No, according to the Bourgeois Gentilhomme404, but call it what you like, you will ruin yourself. Can Paris compete with Normandy in raising cows?
PAUL: I will have the saving on transport in my favor.
JEAN: So be it. But even if they pay for transport, the Normans are in a position to beat the Parisians.405
PAUL: Do you call it beating someone to deliver goods to him at low prices?
JEAN: That is the accepted term. It is still true that you, for your part, will be beaten.
PAUL: Yes, like Don Quixote. The blows will fall upon Sancho. Jean, my friend, you are forgetting city tolls.
JEAN: City tolls! What have they to do with your butter?
PAUL: Right from tomorrow, I will claim protection; I will persuade the commune to prohibit butter from Normandy and Brittany. People will have to go without or buy mine, and at my price.
JEAN: By all that is holy, sirs, I find your philanthropy fascinating.
People learn to howl with the wolves, said someone.
My mind is made up. It will not be said that I am an unworthy Municipal Magistrate. Pierre, this crackling fire has inflamed your soul: Paul, this butter has loosened up the springs of your mind; well then, I also feel that this salted pork is stimulating my intelligence. Tomorrow, I will vote for the exclusion of pigs, alive or dead and get it voted for too. Once this is done, I will build superb sties in the center of Paris,
For the disgusting animal that is forbidden to Jews.
I will make myself a swineherd and pork butcher. Let us see how the good people of Lutecium406 will avoid coming to buy from my shop.
PIERRE: Not so fast, Sirs! If you make butter and salted meat so expensive, you will eat into the profit I am expecting from my wood.
PAUL: Heavens! My speculation will not be so marvelous any more if you hold me to ransom with your logs and hams.
JEAN: And what will I gain from making you pay over the odds for my sausages if you make me do likewise for my bread and faggots of wood?
PIERRE: Well I declare! Are we going to quarrel about this? Let us rather join forces. Let us give each other mutual concessions. Besides, it is not good to listen only to the base voice of self-interest; humanity is there, should we not ensure that the people are heated?
PAUL: That is true. And people need butter to spread on their bread.
JEAN: Without doubt. And they need bacon to put in their stew.
IN CHORUS: Charity to the fore! Long live philanthropy! Tomorrow! Tomorrow! We will make an assault on city tolls.
PIERRE: Ah, I was forgetting. Just a word and this is essential. My friends, in this century of selfishness, the world is mistrustful and the purest intentions are often misinterpreted. Paul, plead in favor of wood; Jean, defend butter and for my part, I will devote myself to local pigs. It is a good thing to anticipate nasty suspicions.
PAUL and JEAN (leaving): Goodness! There is a clever man!
SCENE 2
The Council of Municipal Magistrates
PAUL: My dear colleagues, every day, piles of wood come into Paris, which causes piles of cash to leave. At this rate we will all be ruined in three years, and what will become of the poor? (Cheers!) Let us prohibit foreign wood. I am not speaking for myself, since all the wood I possess would not make a toothpick. I am therefore perfectly disinterested in this matter. (Hear! Hear!) But here is Pierre who has a stand of trees; he will ensure heating for our fellow citizens who will no longer have to depend on the charcoal makers of the Yonne.407 Have you ever thought of the danger we run of dying of cold if the owners of foreign forests took it into their heads not to send wood to Paris? Let us therefore prohibit their wood. In this way, we will prevent our cash from running out, create a logging industry and create a new source of work and pay for our workers. (Applause)
JEAN: I support this proposal, which is so philanthropic and above all so disinterested, as the honorable gentleman who has just spoken himself has said. It is time we stopped this insolent laissez passer,408 which has brought unfettered competition into our market with the result that, there is no province reasonably endowed for whatever form of production it may be, that is not coming to flood us and sell it to us at rock bottom prices, thus destroying jobs in Paris. It is up to the State to make production conditions level through wisely weighted duties, to allow only those goods that are more expensive than in Paris to enter and thus protect us from an unequal conflict. How, for example, do people want us to be able to produce milk and butter in Paris when faced with Brittany and Normandy? Just think, Sirs, that Bretons have cheaper land, hay closer to hand and labor at more advantageous rates. Does common sense not tell us that we have to make opportunity more equal through a city toll set at a protective rate? I request that duty on milk and butter should be raised to 1,000 percent and more if necessary. People's breakfast will be slightly more expensive, but how their earnings will rise! We will see barns and dairies being built, butter churns increasing in number and new industries being established. It is not that there is the slightest self-interest in my proposal. I am not a cowherd, nor do I want to be. I am moved merely by the desire to be useful to the working classes. (Movement of approval).
PIERRE: I am happy to see in this assembly Statesmen that are so pure, so enlightened and so devoted to the interests of the people. (Cheers!) I admire their selflessness and cannot do better than to follow such noble examples. I support their motion and add one to prohibit pigs from Poitou.409 It is not that I wish to become a swineherd or pork butcher; in this case my conscience would make it my duty to abstain. But is it not shameful, Sirs, that we should pay tribue to these peasants from Poitou who have the audacity to come into our own market and take work that we could be doing ourselves and who, after swamping us with sausages and hams, perhaps take nothing in return? In any case, who tells us that the balance of trade is not in their favor and that we are not obliged to pay them a remainder in cash? Is it not clear that, if industry from Poitou was transferred to Paris it would create guaranteed openings for Parisian jobs? And then, Sirs, is it not highly possible, as Mr. Lestiboudois 410 said so well, that we are buying salted meat from Poitou not with our income but with our capital? Where is this going to lead us? Let us therefore not allow avid, greedy and perfidious rivals411 to come here and sell goods cheaply, making it impossible for us to make them ourselves. Municipal Magistrates, Paris has given us its trust, and we should justify this. The people are without work; it is up to us to create it, and if salted meat costs them slightly more, we would at least be conscious of the fact that we have sacrificed our interests in favor of those of the masses, just as any good municipal magistrate ought to do. (Thunderous applause).
A VOICE: I hear a great deal being said about the poor, but on the pretext of giving them work, people begin by taking away from them what is worth more even than work: wood, butter and soup.
PIERRE, PAUL and JEAN: Let us vote! Let us vote! Down with Utopians,412 theoreticians and those who speak in generalities! Let us vote! Let us vote! (The three proposals are approved).
SCENE 3
Twenty years later
THE SON: Father, you must decide, we have to leave Paris. We can no longer live here. Jobs are scarce and everything is expensive.
THE FATHER: My child, you do not know how much it costs to abandon the place where we were born.
THE SON: What is worst of all is to die of hunger.
THE FATHER: Go, my son, and find a more hospitable land. For my part, I will not leave the grave in which your mother, brothers and sisters have been laid to rest. I am longing to find in it at last the peace at their side that has been refused me in this town of desolation.
THE SON: Take courage, good father, we will find work away from home, in Poitou, Normandy or in Brittany. It is said that all the industries of Paris are being gradually transferred to these far-off regions.
THE FATHER: It is only natural. As they can no longer sell us wood and foodstuffs, they have ceased to produce anything over their own needs; whatever time and capital they have available they devote to making themselves the things we used to supply them with in former times.
THE SON: In the same way that in Paris, people have ceased to make fine furniture and clothing in order to plant trees and raise pigs and cows. Although I am very young, I have seen huge warehouses, sumptuous districts and the banks of the Seine so full of life now invaded by fields and thickets.
THE FATHER: While the provinces are becoming covered with towns, Paris is turning into a rural area. What a frightful turnaround! And it needed only three misled municipal magistrates, assisted by public ignorance, to bring this terrible calamity down on us.
THE SON: Tell me the story, Father.
THE FATHER: It is very simple. On the pretext of setting up three new industries in Paris and thus supplying jobs for workers, these men had the importing of wood, butter and meat prohibited. They claim for themselves the right to supply these to their fellow citizens. These objects first rose to an exorbitant price. Nobody earned enough to buy them and the small number of those who were able to obtain them spent all their resources on them and were unable to buy anything else. For this reason, all forms of industry shut down at the same time, all the quicker since the provinces no longer provided any markets. Destitution, death and emigration began to rob Paris of its people.
THE SON: And when will this stop?
THE FATHER: When Paris has become a forest and prairie.
THE SON: The three Municipal Magistrates must have made huge fortunes?
THE FATHER: Initially, they made huge profits, but in the long run they were overcome by the general destitution.
THE SON: How is that possible?
THE FATHER: Do you see this ruin? It was once a magnificent town house surrounded by a fine park. If Paris had continued to progress, Master Pierre would have obtained more rent for it than its capital value is now worth.
THE SON: How can this be, since he now has no competition?
THE FATHER: Competition to sell has disappeared but competition to buy is also disappearing with every passing day and will continue to disappear until Paris is open country and Master Pierre's thickets have no greater value than an equal area of thicket in the Forest of Bondy.413 This is how monopoly, like any form of injustice, carries within itself the seed of its own punishment.
THE SON: This does not seem very clear to me, but what is incontrovertible is the decadence of Paris. Is there no way of overturning this iniquitous measure that Pierre and his colleagues caused to be adopted twenty years ago?
THE FATHER: I will tell you my secret. I am remaining in Paris for this; I will call upon the people to help me. It will be up to them to restore the city tolls to their original level, to remove from them the disastrous principle that has been grafted on to them and which has vegetated like a parasitic fungus.
THE SON: You should achieve success right from the very first day!
THE FATHER: Now hold on! On the contrary, this work is difficult and laborious. Pierre, Paul and Jean understand each other perfectly. They are ready to do anything rather than allow wood, butter and meat to enter Paris. They have the people themselves on their side, as they clearly see the work given to them by the three protected industries; the people know how much work these industries are giving to woodcutters and cowherds but they cannot have as accurate an idea of the production that would develop in the fresh air of freedom.
THE SON: If that is all that is needed, you will enlighten them.
THE FATHER: Child, at your age, you have no doubts about anything. If I express my thoughts in writing the people will not read me, since there are not enough hours in the day for them to eke out their unfortunate existence. If I speak out, the Municipal Magistrates will seal my lips. The people will therefore remain disastrously misled for a long time. The political parties who base their hopes on people's passions will spend less time dissipating their misconceptions than exploiting them.414 I will thus have to confront simultaneously those currently in power, the people and the political parties. Oh! I see a terrible storm ready to break on the head of anyone bold enough to rise up against such deep-rooted iniquity in the country.
THE SON: You will have justice and truth on your side.
THE FATHER: And they will have force and slander on theirs. If only I were young! But age and suffering have sapped my strength.
THE SON: Very well, Father. Devote the strength left to you to serving the country. Begin the work of emancipation and leave me as an inheritance the duty to complete it.
SCENE 4
Popular Unrest
JACQUES BONHOMME: People of Paris! Let us demand a reform of the city tolls! Let their original function be restored. Let each citizen be FREE to buy wood, butter and meat wherever he pleases!
THE PEOPLE: Long live FREEDOM!
PIERRE: People of Paris! Do not be swayed by these words! What use is the freedom to buy if you lack the means? And how will you obtain the means if you lack work? Can Paris produce wood as cheaply as the Forest of Bondy? Meat at as low a price as Poitou? Butter in as favorable conditions as Normandy? If you open the door wide to these rival products, what will become of the cowherds, woodcutters and pork butchers? They cannot do without protection.
THE PEOPLE: Long live PROTECTION!
JACQUES: Protection! Are you the workers being protected? Are you not being made to compete against one another? Let the sellers of wood in turn suffer from competition! They have no right to increase the price of their wood by law unless they also raise rates of pay by law. Are you no longer a nation that loves equality?
THE PEOPLE: Long live EQUALITY!
PIERRE: Do not listen to this revolutionary! It is true that we have increased the price of wood, meat and butter, but this is in order to be able to pay good wages to the workers. We are motivated by charity.
THE PEOPLE: Long live CHARITY!
JACQUES: Use city tolls, if you can, to raise wages but not to make products more expensive. The people of Paris are not asking for charity, but justice!
THE PEOPLE: Long live JUSTICE!
PIERRE: It is precisely the high prices of products that will produce higher wages as a result of the ricochet or flow on effect!415
THE PEOPLE: Long live HIGH PRICES!
JACQUES: If butter is expensive, it is not because you are paying the workers high wages. It is not even because you are making huge profits; it is just because Paris is ill-suited to this industry and because you have wanted things to be produced in town that ought to be produced in the country and things in the country that ought to be produced in town. The people do not have more work; they merely do other work. They do not have higher pay; they merely no longer buy things as cheaply.
THE PEOPLE: Long live LOW PRICES!
PIERRE: You are being swayed by the fine words of this man! Let us put the question in simple terms. Is it not true that if we allow butter, wood and meat to enter we will be swamped by them? We would perish from a surfeit! There is therefore no other way of protecting ourselves from this different form of invasion than to shut our door to it and, in order to maintain the price of products, to produce a scarcity of them artificially.
A FEW SCATTERED VOICES: Long live SCARCITY!
JACQUES: Let us set the question out in all its truth! We can share out among all the people of Paris only what there is in Paris. If there is less wood, meat and butter, each person's share will be smaller. Now there will be less if we keep these out than if we let them in. People of Paris! Each person can be abundantly supplied only if there is general abundance.
THE PEOPLE: Long live ABUNDANCE!
PIERRE: Whatever this man says, he will not prove to you that it is in your interest to be subjected to unbridled competition.
THE PEOPLE: Down with COMPETITION!
JACQUES: However eloquent this man is, he will not enable you to taste the sweetness of trade restrictions.
THE PEOPLE: Down with TRADE RESTRICTIONS!
PIERRE: For my part, I declare that if you deprive the poor cowherds and swineherds of their living, if you sacrifice them to theories, I will not longer guarantee public order. Workers, do not trust this man. He is an agent of perfidious Normandy and goes abroad to seek inspiration. He is a traitor and should be hanged.416 (The people are silent)
JACQUES: People of Paris, all that I am saying today I said twenty years ago, when Pierre chose to exploit city tolls for his benefit and your loss. I am not, then, an agent of the people of Normandy. Hang me if you like, but that will not stop oppression from being oppression. Friends, it is neither Jacques nor Pierre who ought to be killed but freedom, if you are afraid of it, or trade restriction if it hurts you.
THE PEOPLE: Let us hang nobody and emancipate everybody!
Endnotes399 Bastiat uses a term from the ancien régime, "échevin," in the title of this essay: "Protectionism, or the three Échevins." Beginning in the 13th century, cities like Paris had a "prévôt des marchands" (Provost of Merchants) whose task it was to supply the city with food, to maintain public works, to levy taxes, and to regulate river trade. He was appointed by the King and assisted by four "échevin" (assessors or magistrates). In the 18th century the post of Provost had been farmed out by the crown to private individuals and it was abolished early in the Revolution (July 1789), with some of his duties being given to the mayor and the post of "échevin" being converted to one of municipal councillor. Bastiat uses the archaic sounding title of Échevin in order to make the point that their duties in regulating trade were more in keeping with the Old Regime than they were for modern, industrializing France.
400 Bastiat uses the term "Gaster" (Mr. Stomach).
401 Bastiat is mistaken here. He is quoting a satirical song by Pierre-Jean Béranger (1780-1857) who made a name for himself mocking Emperor Napoleon and then all the monarchs of the Restoration period. Bastiat thinks the verse he quotes comes from the song "Le Roi d'Yvetot" (The King of Yvetot) (May 1813) which is a thinly disguised criticism of Napoleon. The Seigneur Yvetot behaved as if he were a king and tormented the local populace accordingly. One verse in particular might have caught Bastiat's eye as it deals with taxation: "III. No costly regal tastes had he, / Save thirstiness alone; / But ere a people blest can be, / We must support the throne! / So from each cask new tapp'd he got, / (His own tax-gath'rer), on the spot, / A pot! / Ha! ha! ha! ha! Ho! Ho! Ho! Ho! / A kingdom match with Yvetot! / Ho! Ho!" The verse he quotes comes from another song called "Le petit homme gris" (The Little Grey Man) who lives in Paris and is so poor and cold he has to blow on his fingers to keep warm. Oeuvres completes de Béranger. Nouvelle edition illustrée par J.J. Grandville (Paris: H. Fournier, 1839), vol. 1, pp. 29-30 (for "The Little Grey Man"), pp. 1 ff. (for "The King Yvetot"); for the English translation of "The King Yvetot" see Béranger's Songs of the Empire, the Peace, and the Restoration, trans. Robert B. Brough (London: Addey and Co., 1854), pp. 21-24. The latter also contains a very funny and sad song about "Liberty" which Béranger lacked when he was imprisoned in St. Pélagie in 1822. The first two verses go: "I. Since I've the odour smelt / of ironmongery, / Most spitefully I've felt / Tow'rds Madam Liberty. / Shame, shame on Liberty! / Down, down with Liberty!/ II. Marchangy's (his jailer) taken pains / (A kindly sage is he) / To beat into my brains / The good of slavery. / Shame, shame on Liberty! / Down, down with Liberty!" pp. 109-111. Pierre-Jean de Béranger (1780-1857) was a liberal poet and songwriter who rose to prominence during the Restoration period with his funny and clever criticisms of the monarchy and the church. He was sent to prison twice in the 1820s for offending the political authorities with his irreverent verses. Bastiat knew him and was known to have sung his drinking songs on occasion. See the glossary entry on "Béranger."
402 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). See the glossary entry on "French Currency."
403 Wood for fuel was floated down the river Seine to be sold in Paris.
404 Bastiat refers here to Molière's play Le Bourgeois gentihomme (The Would-Be Gentleman) (1670). M. Jourdain is persuaded by the valet Covielle that his father was not a merchant who "sold" goods (which is what a bourgeois would do) but merely "gave them away for money" (as a true nobleman would do). Act IV, scene III. ). 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. 7 (Paris: Librairie des bibliophiles, 1892), p. 103. See the glossary entry on "Molière."
405 As the FEE translator notes (p. 232), Bastiat is punning here on the French word "battre" which can mean both "to beat" as well as "to churn" (i.e. To churn butter).
406 "Le bon people lutécien" is a reference to "the good people of Paris". Lutèce was a town in Gaul and the main town of a tribe known as the Parisii. The Île de la Cité in Paris is probably where these people lived.
407 Yonne is a Department southeast of Paris which lies on the Yonne River, a tributary of the Seine River.
408 This is the second half of the Physiocrats' policy advice to the government, "laissez-faire, laissez-passer" (let us be free to do what we will and to be free to go wherever we will) See the glossary entry "Laissez-faire."
409 Poitou is a province southwest of Paris.
410 (Paillottet's note) See chapter VI of the 1st series of the Sophisms. (Chapter VI The Balance of Trade). [DMH - Thémistocle Lestiboudois (1797–1876) 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. In 1847 he published the pro-tariff book Économie politique des nations. See the glossary on "Lestiboudois."
411 See the glossary entry on "Perfidious Albion."
412 See the glossary entry on "Utopias."
413 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.
414 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."
415 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."
416 "Perfidious Normandy" is a play on words by Bastiat since the phrase normally used is "Perfidious Albion" in reference to England. It arose during the French Revolution to express contempt for the support Britain gave to the other monarchical powers of Europe in the war against the French Republic and then Napoleon. It was used during the 1840s as an attack on the policies of free trade which Britain was adopting, especially French supporters of free trade like Bastiat who were seen as "fifth columnists" for the British Empire. Bastiat made trips to England to meet Richard Cobden and other members of the Anti-Corn Law League and they in turn visited France. Bastiat was then in way "importing" seditious and traiterous free trade ideas into France as he notes here. Jacques (Bastiat) of course would know that free trade ideas were very much part of the history of French economic thought going back to the Physiocrats and Jean-Baptiste Say. See the glossary entries on "The Physiocrats," Jean-Baptiste Say," and "Perfidious Albion."
T.167 "Barataria" (c. 1848)↩
[CW4 draft 16 June, 2017] SourceT.167 (1848.??) "Barataria" (Barataria). An unpublished fragment of what was intended as a short pamphlet. 1847 or early 1848 (internal evidence suggests 1848). [OC7.77, pp. 343-51.] [CW4]
Editor's IntroductionBastiat is parodying here an episode in Cervantes' novel Don Quixote (1615) where Don Quixote's squire Sancho Panza is made the governor of the island of Barataria by some noblemen as a prank. They wanted to see how an apparently simple-minded commoner like Sancho would handle the duties of a ruler who would normally be an aristocrat. The name of the island "Barataria" is a play on the Spanish word "barato" which means cheap, easy, or simple. Sancho outsmarted the noblemen by acting as a "Solomonic" ruler who could settle disputes quickly and fairly, and who could see through the sophistry of his advisors. 874 In one of the chapters describing Sancho's exploits as ruler there is an exchange of letters between him and Don Quixote which is what Bastiat uses in his parody of the story. After 10 days of ruling Barataria Sancho resigns in disgust preferring the life of a simple labourer to that of a privileged and pampered ruler. Sancho concludes that "A reaping-hook fits my hand better than a governor's sceptre." 875
This short piece is undated and incomplete. Bastiat's French editor Paillottet spoke to Bastiat about it shortly before he died and he told Paillottet that he did not complete it because he had qualms about putting ideas about liberty and free markets in the mouth of Sancho Panza and the language of socialism and utopia in the mouth of Don Quixote. This is a pity as Bastiat had no such qualms when he put ideas about liberty and free markets in the mouth of Friday and protectionist ideas in the mouth of Robinson Crusoe in some of his economic sophisms. 876 The story is also quite similar to ES2 11 "The Utopian" (January, 1847) 877 in that it concerns a legislator or ruler who wishes to radically reform society but who ultimately resigns his position like Sancho. In Cervantes' novel Sancho, after ruling the island for 10 days, resigns as governor with the following statement:
Make way, gentlemen, and let me go back to my old freedom; let me go look for my past life, and raise myself up from this present death. I was not born to be a governor or protect islands or cities from the enemies that choose to attack them. Ploughing and digging, vine-dressing and pruning, are more in my way than defending provinces or kingdoms. Saint Peter is very well at Rome ; I mean each of us is best following the trade he was born to. A reaping-hook fits my hand better than a governor's sceptre ; I'd rather have my fill of gazpacho than be subject to the misery of a meddling doctor who kills me with hunger, and I'd rather lie in summer under the shade of an oak, and in winter wrap myself in a double sheep-skin jacket in freedom, than go to bed between holland sheets and dress in sables under the restraint of a government. God be with your worships, and tell my lord the duke that "naked I was born, naked I find myself, I neither lose nor gain ;" I mean that without a farthing I came into this government, and without a farthing I go out of it, very different from the way governors commonly leave other islands. Stand aside and let me go. 878
In Bastiat's version of the story Sancho is made governor of the island and Don Quixote advises him as a socialist of 1848 might have done, namely to "organise" society along the lines of a machine controlled by a socialist "mechanic." 879 It is his servant and companion, Sancho Panza, who is the liberal who has severe reservations about Quixote's ideas. Another similarity is with the essay "The State" (June 1848) 880 in which Bastiat warns against a system in which "tout le monde vole tout le monde" (everybody steals from everybody). A third article which has a similar theme is "Prendre cinq et rendre quatre ce n'est pas donner" (Taking Five and Returning Four is not Giving) (June 1848). 881 In "Barataria" the ratio is 'taking 12 and giving 10' (or 6 and 5). Given the similarities with the pieces written in June 1848 and the strong anti-socialist sentiments this suggests that "Barataria" might have been written in mid-1848.
Bastiat may well have seen himself as fighting similar battles as Don Quixote had done. In the article "The Man who asked Embarrassing Questions" (Dec. 1847) Bastiat describes the protagonist (i.e. himself) as "a new Don Quixote" who mounts his steed to do battle against Proudhon and his slogan "Property is Theft." The protagonist is armed with his own slogan "prices rise when and because things are scarce."
PRICES RISE WHEN AND BECAUSE THINGS ARE SCARCE. With this discovery in my pocket, which ought to bring me as much fame as Mr. Proudhon expects from his famous formula: Property is theft, I mounted my humble steed like a new Don Quixote and went off to campaign. 882
TextThere is nothing like the waters of the Pyrénées. You meet people from every country there, people who have seen a great deal and retained much, and who besides are ready to tell a lot of tales. What is no less precious is that you also find a great many other people, especially at Eaux-Bonnes, 883 who are prepared to listen, and for good reason.
For the last few days, we who are truly ill, seriously ill as we are called now (which does not stop us from being happy) 884 have been gathered in a circle around a hidalgo from Valencia who has visited the Island of Barataria thoroughly and who has been telling us wonderful things about it. It is well known that this island has had as its legislator the great Sancho Panza who believed it was his duty, in the institutions he set up, to move away from the classical models of Minos, Lycurgus, Solon, Numa and Plato. 885 In Barataria, the founding principle of government is to leave those being governed to judge and decide for themselves on all matters and to require from them merely a respect for justice. The government does not promise anything either; it is responsible for nothing and does not take charge of anything other than universal security.
Another day, I will tell you about the effects of this system as Don Juan José tells it. For today, I will just transcribe a few letters exchanged between Don Quixote and Sancho Panza during the reign of the famous farm labourer from La Mancha, letters regarded as very precious and carefully preserved in the Library of Barataria.
Unfortunately, neither the knight of the Mournful Countenance nor his squire thought to date their correspondence. It is thought that it must have taken place only a few months after Sancho took possession of his island. This much can be gleaned from the style. It shows that Don Quixote has lost the little common sense remaining to him and that Sancho has somewhat less of his lovable naivety. Whether this is the case or not, everything that remains of these two heroes is too precious not to be preserved.
Don Quixote to Sancho
Sancho, my friend, I cannot call to mind how difficult it is to govern men without feeling some remorse for having proposed you as the governor of the Island of Barataria, a mission for which your intellect and heart were perhaps not sufficiently prepared. For this reason, I have resolved to give you frequent advice from now on, and hope that you will follow it with the submissiveness imposed on squires by the laws of chivalry.
How you must now regret the rough existence you led up to the day on which you and your donkey joined my glorious enterprises and noble destiny. The great feats that you witnessed and in which, on occasion, you did not hesitate to take part, will have taken your mind away from common village preoccupations. But has it had time to rise to the full height that a legislator's mind ought to reach?
I fear, Sancho my friend, that now that you have been called upon to play the role of a Minos, a Lycurgus, a Solon or a Numa on the world stage, you may not have sufficiently identified with the ideas and aims of these great men. Like them, you are more than a prince, you are a legislator, and do you know what a legislator is? 886
Whoever ventures on the enterprise of setting up a people must be ready, shall we say, to change human nature, to transform each individual, who by himself is entirely complete and solitary, into a part of a much greater whole, from which that same individual will receive, in a sense, his life and his being. The founder of nations must weaken the structure of man in order to fortify it, to replace the physical and independent existence we have all received from nature with a moral and communal existence. In a word each man must be stripped of his own powers, and given powers which are external to him, and which he cannot use without the help of others. 887
Sancho my friend, you have first to be the inventor and then the operator of a machine of which the inhabitants of Barataria will be the springs and wheels. Do not forget that everything has to be combined in this machine, not for the glory of the inventor or the good fortune of the technician, but for the good fortune and glory of the machine itself.
The first difficulty you will encounter is in having your laws accepted. It would be no bad thing if you could persuade the Baratarians that you are in secret league with some goddess or other. 888 You should proclaim your laws on a stormy day in the middle of thunder and lightning. They will thus remain etched in their minds with a feeling of healthy terror. Your code will not just be a code but a religion; to violate the law would be to commit sacrilege and risk not only human punishment but also the punishments of the gods. In this way, you will give your town stability and force its citizens to " bear with docility the yoke of the public welfare." 889
It is true that imposture of this sort would be odious in others, but it is perfectly acceptable in a legislator. All legislators have used it, from Lycurgus to Mohammed and even at the present day, and if you read what is written by political writers who aspire to remodeling society you will note a mystical tone that proves that they would not be upset at being taken for inspired souls and prophets. Those who have recourse to such deceit are more than excusable; they are worthy of merit because they " attribute their own wisdom to the Gods." 890
You will then have to resolve the following important matter: do you or do you not establish slavery?
There are many pros and cons.
If, as we enlightened people have, you have spent your entire youth with the Greeks and Romans, 891 you will know that virtue is incompatible with work, that the only noble occupation is that of the soldier and the only great occupation is war, and that our hands can be worthily used only in the arts that are linked with domination and destruction, since those that keep us alive are basically low, shameful and servile.
From this it follows that, to make virtue flourish in your island, work has to be banished. However, banishing work is to banish life.
This is how you can solve the problem.
You should divide the Baratarians into two classes.
One (approximately 95 percent) would, as slaves, be devoted to servile work. Their foreheads will be branded so that they can be recognized and they will be chained by the neck to prevent revolts.
The others will then live in noble fashion. They will practice wrestling and boxing; they will become expert in the art of killing and in a word, their sole occupation will be virtue. This is how you will achieve freedom. "What? Is freedom to be maintained only with the support of slavery? Perhaps." 892
Reflect on these words, Sancho my friend, and reply to me quickly.
Sancho's Reply
I had your letter read to me by my secretary and, although my understanding is very limited, I am making haste to reply. To tell the truth, I do not think that I have learnt anything really useful to my government during the course of our adventures, and it is even very strange that most of your speeches have gone out of my head, whereas the sermons of our parish priest, Carasco's proverbs and above all the maxims of Thérèse Panza 893 are still of great help to me. As for the exploits you speak of, and in which you are good enough to tell me that I played a part, I do not remember them either, as I can scarcely recall your particular struggles against windmills or sheep, of which, indeed, I was a passive spectator. On the other hand, I remember clearly the cudgel blows that broke my bones in the wood where we fought twenty mule drivers.
Anyway, here I am, as you say, a legislator, prince, and governor.
First of all, I note that, in your opinion, Baratarian society should be a machine in which the Baratarians are the raw materials and of which I have to be the inventor, operator, and mechanic. I had this passage of your honored letter reread to me three times without ever being able to understand a word of it.
The Baratarians, whom you have perhaps never seen, are made just like you and me or nearly so, for few of them have achieved either your skinniness or my corpulence. Apart from this, they resemble us closely. They have eyes to see with, ears to hear with, and their heads, unless I am mistaken, contain brains. They move, think and speak and all appear to be very occupied in busying themselves with the things they need in order to be happy. To tell the truth, they never do anything else and I do not understand how you can have taken them for raw materials.
I also noted that Baratarians resemble the inhabitants of my village in one other way; they are so keen on happiness that sometimes they seek it at the expense of others. For several weeks, my secretary did nothing other than read me astonishing petitions on this subject. All of these, whether they came from individuals or communities, can be summarized in these words: Do not take our money, give us some instead. This made me think a great deal.
I sent for my minister of the hacienda and asked him whether he knew of a way of always giving money to the Baratarians without ever taking money from them. The minister assured me that he knew of no such method. I asked him whether I could not at least give the Baratarians a little more money than I took from them.
He replied that it was quite the opposite and that it was totally impossible to give ten to my subjects without taking at least twelve from them, because of the costs.
I then reasoned as follows: If I gave each Baratarian what I have taken from him, except for the costs, the operation would be ridiculous. If I gave more to some I would have to give less to others, and the operation would be unjust.
All things considered, I have decided to act quite differently, in accordance with what I consider to be just and reasonable.
I therefore convoked a grand assembly of Baratarians and spoke to them as follows:
"Baratarians!
Having examined what you are like and what I myself am like, I have found a great deal of resemblance. This led me to the conclusion that it is no more possible for me than for the first law giver who arose from among you to make you all happy, and I have come to you to say that I am abandoning any effort to do so. Do you not have hands and feet and the will to direct them? Therefore, you must make your own happiness for yourselves.
God has given you land. Cultivate it and produce crops from it. Exchange these with one another. Let some plough, others weave, still others teach, plead in court or cure illness; let each person work as he wishes.
For my part, my duty is to guarantee two things for every person: the freedom to act and the freedom to dispose of the fruits of their work.
I will constantly endeavor to repress your disastrous inclination to rob each other, wherever this is evident. I will give all of you total security . The rest is up to you.
Is it not absurd for you to ask anything more from me? What do these piles of petitions mean? If I took them seriously, everyone would steal from everyone else in Barataria, and with my connivance! On the contrary, I believe that my mission is to prevent anyone from stealing from anyone else . 894
Baratarians, there is a great difference between these two systems. If in your view I am to be the instrument by means of which everyone steals from everyone else , it is as though you were saying that all of your property belongs to me, and that I can dispose of it as well as your freedom. You will no longer be men, but brutes.
If I were to be the instrument by means of which nobody would be robbed, my mission would be the more limited the more honest you were. In this case I will ask you for just a small amount of tax, and you will be able to blame only yourselves for anything that happens to you. In any case, you will not, in all honesty, be able to blame me. My responsibility will be very limited and my position all the more assured.
Baratarians, this is what we will agree:
Do as you please, get up late or early, work or relax, have banquets or eat sparingly, spend your money or save it, act on your own or in common, agree with each other or not. I care about and respect you too much as a men to intervene in matters like these. I will certainly not be indifferent to them. I would prefer to see you active than lazy, thrifty than spendthrifts, sober than intemperate, or charitable than merciless, but I have no right, and in any case I have no authority, to cast you in the mold that suits me. I place my trust in all of you and in the law of responsibility to which God has subjected man.
All that I will do with the power of the state that has been entrusted to me do is to ensure that each person is content with his freedom and his property, and that he remains within the bounds of justice."
This is what I said, dear Master. Having thus communicated to you my words, deeds, and actions, I would like to know what you think of them before replying to the rest of your letter. Besides, I have a pressing need to rest, for I have never dictated anything as long as this before.
874 Bastiat might also have seen something of himself in this as he was appointed to the position of magistrate or Justice of the Peace in Mugron on May 28, 1831 in spite of not having any formal legal training. He developed a reputation for delivering prompt and effective rulings in spite of this lack of training.
875 The Complete Works of Miguel de Cervantes Saavedra in Twelve Volumes , ed. James Fitzmaurice-Kelly (Gowans & Gray, 1901). Vol. 6. Second Part of the Ingenious gentleman Don Quixote of La Mancha. Quote comes from p. 92.
876 See,"Bastiat's Invention of Crusoe Economics" in the Introduction to CW3, pp. lxiv-lxvii.
877 CW3, pp. 187-98.
878 In The Complete Works of Miguel de Cervantes Saavedra in Twelve Volumes, ed. James Fitzmaurice-Kelly (Gowans & Gray, 1901). Vol. 6. Second Part of the Ingenious gentleman Don Quixote of La Mancha, p. 92.
879 See the glossary entry on "The Social Mechanism."
880 The first version appeared in Jacques Bonhomme (June 1848) after which it was expanded into a longer essay which appeared in the Journal des débats (Sept. 1848). See, CW2, pp. 105-6 and pp. 93-104.
881 "Taking Five and Returning Four is not Giving" (June 1848), below, pp. 000.
882 ES3 12 "The Man who asked Embarrassing Questions," (12 December 1847), CW3, p. 310.
883 Les Eaux-Bonnes was a spa town in the Pyrenees near where Bastiat lived in Mugron. He went there periodically as his health deteriorated.
884 It is difficult to know when Bastiat realised he had a terminal illness. This passage suggests he must have known when he wrote these lines sometime in 1848. His doctor recommended he attend the warm springs in Eaux-Bonnes near his home town in June and July1850 and then spend the fall and winter of 1850 in Rome, which is where he died on Christmas Eve.
885 These were all much admired historical or mythical rulers and legislators of the ancient world: Minos was the son of Zeus and Europa and the king of Crete in Greek mythology. After his death he became a judge of the dead in Hades and is sometimes depicted serving this function in later literary works, such as those by Virgil and Dante. Lycurgus of Sparta (8th century B.C.) 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. 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. Solon (ca. 640-558 B.C.) was an Athenian political leader and legislator who contributed to the birth of Athenian democracy with his legendary constitutional and economic reforms. Numa Pompilius (ca. 715-672 B.C.) was a legendary king of Rome. Inspired by the Nymph Egeria, he organized Roman religious institutions. Plato(428-348 B.C. was a Greek philosopher. In his work on The Republic Plato argued for the rule of a philosopher king who would rule wisely.
886 ( Bastiat's note. ) We had some trouble in understanding how Don Quixote was able to quote Rousseau and we naturally thought that it might well have been Rousseau who borrowed passages from Don Quixote. However, considering that antiquity is the sole subject of study and admiration by those in modern times, we prefer to think that it was a mere coincidence that is not in the slightest surprising.
887 We have used the translation of Maurice Cranston for these quotations: Rousseau, The Social Contract , trans. Maurice Cranston, (Harmondsworth: Penguin, 1975), p. 84-5.
888 Bastiat describes how theocratic governments function in ES2 1 "The Physiology of Plunder". He states that "It is easy to see how impostors behave. You have to only ask yourself what you would do in their place. If I came, with ideas like this in mind, amongst an ignorant clan and succeeded by dint of some extraordinary act and an amazing appearance to be taken for a supernatural being, I would pass for an emissary of God with absolute discretion over the future destiny of men." CW3, pp. 121-22.
889 Rousseau, The Social Contract , trans. Maurice Cranston (Harmondsworth: Penguin, 1975), p. 87. For the original French see: "Voilà ce qui força de tout temps les pères des nations de recourir à l'intervention céleste et d'honorer les Dieux de leur propre sagesse, afin que les peuples, soumis aux lois de l'État comme à celles de la nature, et reconnaissant le même pouvoir dans la formation du corps physique et dans celle du corps moral, obéissent avec liberté et portassent docilement le joug de la félicité publique." Jean-Jacques Rousseau, The Political Writings of Jean Jacques Rousseau , ed. from the original manuscripts and authentic editions, with introductions and notes by C. E. Vaughan. (Cambridge University Press, 1915). In 2 vols. Vol. 1. Contrat Social, First Draft, CHAPITRE II.: Du législateur.
890 Rousseau, The Social Contract , trans. Maurice Cranston (Harmondsworth: Penguin, 1975), p. 87.
891 This is another example of Bastiat's hostility to the ancient Greeks and Romans. See also this early but typical statement from 1834: "For what is there in common between ancient Rome and modern France? The Romans lived from plunder and we live from production, they scorned and we honor work, they left to slaves the task of producing and this is exactly the task for which we are responsible, they were organized for war and we aim for peace, they were for theft and we are for trade, they aimed to dominate and we tend to bring peoples together." On a New Secondary School to Be Founded in Bayonne (1834), CW1, p. 417.
892 Rousseau, The Social Contract , trans. Maurice Cranston (Harmondsworth: Penguin, 1975), p. 142-43.
893 Bachelor Sansón Carrasco was a friend of Don Quixote's who jousted with him disguised as a rival knight, in an effort to get him to return home. Teresa (also named Juana or Joana) was the wife Sancho Panza; Sanchica was his daughter.
894 In the essay "The State" (Sept. 1848) Bastiat warns against the folly of thinking that a society can function where there is "le pillage réciproque" (mutual pillaging). It is here that he also offers his famous definition of the state as "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.) CW2, p. 97.
T.168 (1848.??) "Liberty, Equality"↩
SourceT.168 (1848.??) "Liberty, Equality" (Liberté, Égalité). PP included this as an appendix to the pamphlet "Baccalaureate and Socialism" (1850). He says that it was written in early 1848 as a draft of a chapter for Economic Harmonies which was never completed. [OC4, pp. 501-3.] [CW2, pp. 232-234.]
TextLiberty, Equality55
Words have their changing fortunes just as men do. Here are two that man has made divine or cursed 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. That 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 liberty sometimes makes hearts beat faster, arouses enthusiasm in peoples, 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 [233] 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 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 and, when this dissent is recited, our young people always take the side of the people. Thus it is that the combats between the Forum and liberty end 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. . . .
Were we not slow to leave school to thunder in public places against foreign savages and avaricious nobles?
How can liberty when understood this way fail to be in turn an object of enthusiasm or terror for a working population? . . .
Peoples have been and are still so oppressed that they have not been able to 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 oft en 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. . . .
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 and which is exactly the opposite of the Roman interpretation.
On the other hand, liberty is generalized property. Do my faculties belong [234] 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 plunder 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. 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 tranquillity 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 state, 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, 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 naïveté, not only by those who proclaim themselves to be communists or communitarians but also by those who claim to be fervent devotees of property, by those who are roused to fury by the mere mention of the word communism, by brokers, manufacturers, shipowners, and even by the archetypal property owners, those who own land. . . .
Endnotes(Paillottet’s note) In the first few months of 1848, the author, who was working on the second volume of the Harmonies, began a chapter titled “Liberty, Equality” for this volume. Shortly afterward, he abandoned this plan and never finished it. We have printed this fragment here since it is in tune with the idea of the article we have just read.
T.169 (1848.01) Sophismes économiques. Deuxième série. (Completed Dec. 1847, published Jan. 1848)↩
SourceT.169 (1848.01) Sophismes économiques. Deuxième série. (Paris: Guillaumin, 1848) (Economic Sophisms. Second Series) Published in Jan. 1848 from material written and published in 1846 and 1847 (see above). [OC4, pp. 127-271.] [CW3]
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T.170 (1848.01.02) "A Letter from Mr. Considérant and a Reply" (LE, Jan. 1848)↩
SourceT.170 (1848.01.02) "A Letter from Mr. Considérant and a Reply" (Lettre de M. Considérant et réponse), Le Libre-Échange, 2 Jan. 1848, no. 6 (2nd year), pp. 33-34. [OC2.25, pp. 134-41.] [CW6]
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T.171 (1848.01.01) "Reply to Various Other People" (LE, Jan. 1848)↩
SourceT.171 (1848.01.01) "Reply to Various Other People" (Réponse à divers) (untitled in original), Le Libre-Échange, 2 Jan. 1848, no. 6 (2nd year), p. 1. [OC2.24, pp. 131-33.] [CW6]
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T.172 (1848.01.02) "Liberty has given Bread to the English People" (LE, Jan. 1848)↩
SourceT.172 (1848.01.02) "Liberty has given Bread to the English People" (La liberté a donné du pain au peuple anglais), Le Libre-Échange, 2 Jan. 1848, no. 6 (2nd year), p. 33. [OC2.30, pp. 168-70.] [CW6]
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T.173 (1848.01.07) "Seventh Speech given in Paris in the Montesquieu Hall"↩
SourceT.173 (1848.01.07) "Seventh Speech given in Paris in the Montesquieu Hall" (Septième discours, à Paris). FB papers. [OC2.48, pp. 311-28.] [CW6]
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T.174 (1848.01.16) "Armaments in England" (LE, Jan. 1848)↩
SourceT.174 (1848.01.16) "Armaments in England" (Les armements en Angleterre), Le Libre-Échange, 16 Jan. 1848, no. 8 (2nd year), p. 45. [OC2.34, pp. 194-200.] [CW6]
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T.175 (1848.01.15) "Minutes of the Seventh Meeting of the Free Trade Association" (JDE, Jan. 1848)↩
SourceT.175 (1848.01.15) "Minutes of the Seventh Meeting of the Free Trade Association - remarks by Anisson-Dupéron, Joseph Garnier, Ch. Coquelin, F. Bastiat" (Septième séance de l'Association pour la liberté des échanges; discours de MM. Anisson-Dupéron, Joseph Garnier, Ch. Coquelin, F. Bastiat). A summary of Bastiat's remarks, JDE Janvier 1848, T. XIX, pp. 214-215. [DMH] [CW6]??
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T.176 "Natural and Artificial Organisation" (JDE, 15 Jan., 1848)↩
[CW4 draft 16 June, 2017] SourceT.176 (1848.01.15) "Natural and Artificial Organisation" (Organisation naturelle Organisation artificielle), JDE , T. XIX, No. 74, Jan 1848, pp. 113-26; also EH1. [OC6] [CW5] [CW4]
EH 1st ed. Jan. 1850, pp. 25-51. EH2 2nd. edition July 1851, pp. 15-33.
Editor's IntroductionThis article was published only a few weeks before the February Revolution changed Bastiat's life completely. Even though his health was not good throughout 1847 he had been very active in the Free Trade Association editing its weekly magazine, Le Libre-Échange , writing most of its articles, and giving speeches at several large public meetings. In the fall he also had begun giving a course of lectures on economic theory to students at the School of Law thus fulfilling one of his long-held dreams of writing a treatise on the Social Harmonies . All this came to a sudden end when revolution broke out on 22 February, the July Monarchy collapsed, a Provisional Government under Lamartine was formed, and the Second Republic was proclaimed. The sudden rise of socialist groups and the creation of the National Workshops under Louis Blanc frightened the political economists and their supporters in the free trade movement. In March they decided to dissolve the French Free Trade Association (thus putting Bastiat out of a job) and focus their attention on attempting to gain some influence within the Provisional Government and to oppose the growing socialist movement both within and without the government. Bastiat gave up editing Le Libre-Échange and giving his lectures and devoted himself to publishing a new daily magazine, La République française , which he and some friends handed out on the streets of Paris, organising and participating in one of the new political clubs which sprang up once the censorship laws were no longer being enforced by the police (theirs was called "Le Club de la Liberté du Travail" (the Club for the Freedom of Working)), and then standing (successfully) for the April elections to represent his home district of Les Landes.
When Bastiat wrote and published this article on "Natural and Artificial Organisations" he had very different hopes and thoughts in his mind. Here we see the first fruits of Bastiat's course of lectures on economics, the notes for which would eventually become his treatise Economic Harmonies the first volume of which would appear in January 1850. Two articles he had written in 1846 ("On Population" and "On Competition") 895 would also be turned into chapters in the book, however here and in the two other articles he wrote for the JDE in 1848 (Sept. and December) he is laying the theoretical foundation for his other ideas. 896 This consisted of a discussion of the idea of a "social mechanism," the distinction between artificial and natural orders, the existence of harmonies within a free economic order, the importance of the three interlocking ideas of "needs," "efforts," and "satisfactions" which he used to explain why economic activity takes place, and a deeper exploration of the nature of human needs in general. Together, the three articles he wrote in 1848 would make up a good proportion of the first volume, some 86 pages or nearly 20%. The rest would be written over the summer of 1849 in the seclusion of the Butard hunting lodge on the outskirts of Paris after the tumultuous first year of the revolution was over.
Bastiat discussed the structure and plan for the book in a number of letters to Richard Cobden and Félix Coudroy written between June 1846 and August 1848, and in a couple of unpublished sketches which included an undated "Note on the "Economic and Social Harmonies" (c. June 1845) and "A Draft Preface to the Economic Harmonies" (Fall 1847). These plans are discussed elsewhere in this volume. 897
There are several things to note in this article. The first is his understanding of society as a "mechanism" (le mécanisme social) or what we might today call a "process." He used several terms to describe this: "le mécanisme social" (the social mechanism), "la mécanique sociale" (the social machine, engine), "le mécanisme de la société" (the mechanism of society), and "la machine sociale" (the social machine), with "le mécanisme social" (the social mechanism) being the one he used most often. The social mechanism had moving parts, like a watch or a clock, which consisted of "les rouages" (cogs and wheels), "les ressorts" (springs), and "les mobiles" (the movement, or driving or motive force). 898 Bastiat described the social mechanism as "a prodigiously ingenious mechanism (which) is the subject of study of political economy."
Secondly, there is his distinction between "artificial" forms of organisation and "natural" forms. By "natural organisation" he meant "une organisation sociale fondée sur les lois générales de l'humanité" (a social organisation based upon the general laws (which govern) humanity). Natural organisations were the voluntary creation of free people who associated with each other for mutual benefit through economic activities such as free trade and production. Bastiat argued that the driving forces ("le moteur" or "le mobile") of the social mechanism of a free and "naturally" organised society were competition and self-interest.
In stark contrast to this were "artificial organisations" which Bastiat defined as an organisation which was "imaginée, inventée, qui ne tient aucun compte de ces lois, les nie ou les dédaigne" (dreamt up, invented, and which took no account of these laws, denied their existence, or disdained them.) This type of organisation was based on coercion, control, and direction from a "Legislator" or "Prince" who arranged men in society according their whim. Bastiat traced this line of thinking back to Rousseau and his followers such as Robespierre during the Convention in the 1790s, 899 and Louis Blanc and Victor Considerant in the 1840s. In this article Bastiat provides a lengthy critique of Rousseau's idea of the "Legislator" which exemplified what Bastiat disliked about "artificial organisations". He summarised it as follows:
(M)en are the parts of a machine that the prince operates, and the design of which the legislator has suggested. The philosopher positions himself at an unmeasurably great distance above the common people, the prince, and the legislator, (where) he floats above the human race, moves it, transforms it, kneads it, or rather teaches the Fathers of Nations how to go about doing this. … 900
Bastiat uses several derogatory terms to describe the people who attempt to run this "artificial social mechanism", such as "un mécanicien" (a mechanic, engineer), "le grand Mécanicien" (the Great Mechanic), "l'inventeur" (the inventor), "le législateur" (the legislator), "le jardinier " (the gardener), and "le Prince" (the Prince). In an unpublished story, "Barataria", written probably sometime in 1848 901 Bastiat tells an amusing alternative version of the story about Don Quixote's and Sancho Panza's visit to the island of Barataria where Sancho is appointed by some local aristocrats to run the island but Sancho refuses to be the "mechanic" who runs the lives of the people of Barataria and resigns in protest.
The third thing to note is the story Bastiat tells here to describe the benefits provided by the harmonious operation of a complex natural social mechanism based upon property rights and free markets, namely story of the "Village Carpenter and the Student in Paris" (our title not his). In this section of the article he reverts to the style he used so successfully in the Economic Sophisms to popularise economic ideas. The similarity to Leonard Read's 1958 story of "I, Pencil" 902 is striking and it is quite likely that Read knew of Bastiat's story as he was instrumental in having some of Bastiat's works translated into English by the Foundation for Economic Education during the 1950s and 1960s.
Overall, the article below is very similar to the chapter which appeared in EH1 with the following exceptions:
- the insertion of a number of additional sentences here and there
- the addition of a footnote in which he quotes Considerant
- changing some of the examples he gave, e.g. trading with "the Antipodes" is changed to "China"
The most significant change in the EH1 version is the rewriting of an entire paragraph with an important new sentence about how "the principle of action" lies within individuals themselves. It is quite clear that Bastiat rejected the idea that men were inert cogs in a machine being operated by an aloof Legislator. (The added sentence is in bold.):
Its wheels are men, that is to say, beings capable of learning, reflecting, reasoning, making mistakes, rectifying them, and consequently acting to improve or worsen the (operation) of the mechanism itself. They are capable of feeling satisfaction and pain, and this makes them not only cogs and wheels but also the springs of the mechanism. They are also its driving force because the principle of action ("le principe d'activité") resides in them. They are still more than that, they are the object of the mechanism itself, and its purpose, since it is in individual satisfactions and pain that everything is finally resolved.
All these changes and variations are indicated in the footnotes.
TextAre we really certain that the social mechanism, like the celestial mechanism, and like the mechanism of the human body, obeys universal laws? Are we really certain that it is a harmoniously organized whole? Above all, is it not the absence of any organization that leaps to the eye? Is it not precisely organization that all good-hearted men with an eye to the future, all progressive writers, and all the pioneers of thought are seeking? Are we not a mere juxtaposition of individuals who have no ties to each other, who live without (any) harmony, and are given to an anarchical freedom? Now that they have painfully recovered all their liberties one by one, do not our numberless masses wait for some great genius to coordinate them into a harmonious whole? After engaging in destruction, do we not have to lay (some new) foundations? 903
If these questions had no other bearing than to ask whether society can do without written laws, rules, and repressive measures, whether each man can make unlimited use of his faculties even though he might infringe the liberties of others or cause damage to the community as a whole, whether, in a word, we should not see in the maxim " Laissez faire, laissez passer " 904 the absolute principle of political economy?
If, I say, that were the question, nobody would be in any doubt as to the answer. Economists do not state that a man may kill, pillage, or commit arson and that society has no choice save to let it happen; 905 they say that social resistance to such acts would occur as a matter of course, even in the absence of any legal code, and that, in consequence, this resistance constitutes a general law of humankind. They say that civil or penal laws should regularize and not counter the action of these general laws that they presuppose . There is a gulf between a social organization based on the general laws of humanity and an artificial, abstract, and contrived organization which several modern schools of thought appear to wish to impose (on us). 906
For, if there are general laws that act independently of the written laws whose action such written laws have only to confirm, these general laws must be examined; they may be the worthy subject-matter of a science, and political economy (already) exists to do this. If, on the contrary, society is a human invention, if men are no more than inert matter into which a great genius, in the words of Rousseau, has to infuse sentiment and willpower, movement and life, 907 then there is no such thing as political economy, only an indefinite number of possible and contingent arrangements, and the fate of nations depends on the founder to whom chance has entrusted their destinies.
To prove that society is subject to general laws, I will not indulge in a long dissertation. I will limit myself to pointing out a few facts, which although somewhat commonplace, are nonetheless important.
Rousseau has said: "A great deal of philosophy is needed for us to take account of those facts that are too close to us." 908
Such are the social phenomena in the midst of which we live and move. Habit has familiarized us with these phenomena to such an extent that we no longer pay attention to them, so to speak, unless something sudden and abnormal brings them to our notice.
Let us take a man who belongs to a modest class in society, a village carpenter, for example, 909 and let us observe all the services he provides to society and all those he receives from it; it will not take us long to be struck by the enormous apparent disproportion.
This man spends his day sanding planks and making tables and wardrobes; he complains about his situation and yet what does he receive from this same society in return for his work?
First of all, each day when he gets up he dresses, and he has not personally made any of the many items of his outfit. However, for these garments, however simple, to be at his disposal, an enormous amount of work, industry, transport, and ingenious invention needs to have been accomplished. Americans need to have produced cotton, Indians indigo, Frenchmen wool and linen, and Brazilians leather. All these materials need to have been transported to a variety of towns, worked, spun, woven, dyed, etc.
He then has breakfast. In order for the bread he eats to arrive each morning, land had to be cleared, fenced, ploughed, fertilized, and sown. Harvests had to be stored and protected from pillage. A degree of security had to reign over an immense multitude of people. Wheat had to be harvested, ground, kneaded, and prepared. Iron, steel, wood, and stone had to be changed by human labor into tools. Some men had to make use of the strength of animals, others the weight of a waterfall, etc.; all things each of which, taken singly, implies an incalculable mass of labor put to work , not only in space but also in time.
This man will not spend his day without using a little sugar, a little oil, or a few utensils.
He will send his son to school to receive instruction, which although limited, nonetheless implies research, previous studies, and knowledge which would startle the imagination.
He goes out and finds a road that is paved and lit.
His ownership of a piece of property is contested; he will find lawyers to defend his rights, judges to maintain them, officers of the court to carry out the judgment, all of which once again imply acquired knowledge, and consequently understanding and a certain standard of living. 910
He goes to church; it is a prodigious monument and the book he carries is a monument to human intelligence perhaps more prodigious still. He is taught morality, his mind is enlightened, his soul elevated, and in order for all this to happen, another man had to be able to go to libraries and seminaries and draw on all the sources of the human tradition; he had to have been able to live without taking direct care of his bodily needs.
If our craftsman sets out on a journey, he finds that, to save him time and increase his comfort, other men have flattened and leveled the ground, filled in the valleys, lowered the mountains, spanned the rivers, increased the smooth passage on the route, set wheeled vehicles on paving stones or iron rails, and mastered the use of horses, steam, etc.
It is impossible not to be struck by the truly immeasurable disproportion that exists between the satisfactions drawn by this man from society and those he would be able to provide for himself if he were to be limited to his own resources. I am bold enough to say that in a single day, he consumes things he would not be able to produce by himself in ten centuries.
What makes the phenomenon stranger still is that all other men are in the same situation as he. Each one of those who make up society has absorbed a million times more than he would have been able to produce; nevertheless they have not robbed each other of anything. And if we examine things more closely, we see that this carpenter has paid in services for all the services he has been rendered. If he kept his accounts with rigorous accuracy we would be convinced that he has received nothing that he has not paid for by means of his modest industry, and that whoever has been employed in his service, either at any time or in a given period, has received or will receive his remuneration.
For this reason, the social mechanism needs to be either very ingenious or very powerful since it leads to this strange result, that each man, even he whom fate has placed in the humblest of conditions, receives more satisfaction in a single day than he could produce in several centuries.
That is not all, and this social mechanism will appear still more ingenious, if the reader would just consider his own case.
Let me assume that he is a simple student. What is he doing in Paris? How is he living there? It cannot be denied that society places at his disposal food, clothes, a lodging, entertainment, books, the means of instruction, in short a multitude of things, the production of which would take a considerable amount of time just to explain and even more to be carried out. And in return for all these things, which have required so much work, sweat, fatigue, physical or intellectual effort, such feats of transportation, so many inventions and (economic) transactions, what services does this student render to society? None. He is only preparing himself to render services to it. For what reason, therefore, have these millions of men, who have devoted themselves to positive, actual, and productive work, handed over to him the fruit of their labor? Here is the explanation; the father of this student, who was a lawyer or doctor, 911 had previously rendered services to a society (perhaps in the Antipodes), 912 and had received from it, not immediate services but rights to (future) services, which he might reclaim at the time, in the place, and in the form of his choosing. It is for these far-off and past services that society is settling its debts today and, what is astonishing, if we think through the progress of the infinite number of transactions which have had to take place to achieve the result, we would see that each person has been paid for his trouble, that these rights have passed from hand to hand, sometimes being split (up) and at other times being combined together until, through the consumption of this student, the balance has been struck. Is this not a very strange phenomenon?
We would be shutting our eyes to the light if we refused to acknowledge that society cannot present such complicated combinations, in which civil and penal laws play so little a part, without obeying a prodigiously ingenious mechanism. This mechanism is the subject of study of political economy .
One more thing worthy of comment is that, in this truly incalculable number of transactions which have contributed to keeping alive one student for one day, there is perhaps not a millionth part which has been made directly. The countless things he has enjoyed today are the work of men a great number of whom have long since disappeared from the face of the earth. Nevertheless they were paid as they wished, although he who is benefiting today from the product of their work has done nothing for them. He did not know them and will never know them. He who reads this page, at the very moment at which he reads it, has the power, although he perhaps does not realize this, to set in motion men in all countries, of all races, and I might almost say, of all periods of time; white men, black men, red men, and yellow men. He causes generations that have died away and generations not yet born to contribute to his current satisfactions, and he owes this extraordinary power to the services his father rendered in the past to other men who on the face of it have nothing in common with those whose labor is being set in motion today. However, the balance is such that in time and space, each one is reimbursed and has received what he calculated he should receive.
In truth, can all this have been possible, can such extraordinary phenomena have been achieved without there having been in society a natural and wise organization 913 which acts, so to speak, without our knowledge?
There is much talk these days of of inventing a new way of organizing society. Is it really certain that any thinker, however much genius he is supposed to have or however much authority he is given, is capable of imagining and imposing (on society) an organization that is superior to the one a few of whose achievements I have just outlined?
What would happen if I also described its cogs and wheels, its springs, and its movements? 914
Its wheels are men, that is to say, beings capable of learning, reflecting, reasoning, making mistakes, rectifying them, and consequently acting 915 to improve or worsen the (operation) of the mechanism itself. I ought also to add, that these springs are capable of feeling satisfaction and pain, and this makes them not only cogs and wheels but also the springs of the mechanism. They are still more than that, they are the object of the mechanism itself, and its (very) purpose, since it is in (their) individual satisfactions and pain that everything is finally resolved. 916
However, we have noted, and unfortunately it is not difficult to notice, that in the action, the development, and even the progress (by those who admit it) of this powerful mechanism, many of the wheels are inevitably and fatally broken and that, for a large number of human beings, the sum of pain, even unmerited pain, 917 exceeds by far the sum of enjoyment.
Observing this, many sincere souls, many generous hearts have doubted the mechanism itself. They have denied it, they have refused to study it, they have attacked, often violently, those who have researched and set out its laws. They have pitted themselves against the nature of things and finally they have suggested that society be organized according to a new design, in which injustice, suffering, and error would find no place.
God forbid that I should stand against intentions that are so manifestly philanthropic and pure! But I would be abandoning my convictions, I would be giving ground in the face of the injunctions of my own conscience if I did not say that, in my view, these men are on the wrong road.
In the first place, they are reduced, by the very nature of their arguments, to the sad necessity of failing to recognize the good developed by society, of denying its progress, and attributing all harm and suffering to it, seeking these out almost avidly and exaggerating them excessively.
When people think they have discovered a social organization different from that which is the result of natural human tendencies, in order for their invention to be accepted they clearly need to describe in the blackest possible colors the results of the organization they wish to abolish. For this reason, after having enthusiastically proclaimed 918 human perfectibility, the political writers to whom I refer fall into the strange contradiction of saying that society is increasingly deteriorating. According to them, men are a thousand times more unhappy than they were in ancient times, under the feudal régime, and under the régime of slavery, 919 and the world has become a (living) hell. If it were possible to conjure up Paris as it was in the tenth century, I dare say that such a thesis would be untenable.
Next, they are led to condemn the very principle governing men's action, I mean self-interest , since it has led to such a state of affairs. We should note that man is organized in such a way that he seeks satisfaction and avoids pain; I agree that this is the cause of all social harms – war, slavery, plunder, monopoly, and privilege - but it is also from this that all good arises, since the satisfaction of needs and aversion to pain are the driving forces for men. The question is therefore to ascertain whether this driving force, which in origin is individual but becomes social, is not itself a principle of progress.
In any case, do not the inventors of new organizations realize that this principle, which is inherent in the very nature of man, will accompany them in their organizations causing many more forms of devastation there than in our natural organization, in which the unjust claims and interests of one person will at least be contained by the resistance of all? 920 These political writers always assume two inadmissible things, firstly, that society as they perceive it will be governed by infallible men totally lacking in this driving force (of self-interest), secondly that the masses will allow themselves to be governed by such men.
Lastly, the Organizers 921 do not appear to take the slightest interest in the means of implementation. How are they going to ensure that their systems gain acceptance? How will they convince everyone at the same time to abandon the force that drives them, namely the attraction of pleasure and the aversion to pain. Will we as Rousseau said, have to change the moral and physical constitution of man ?
It seems to me that there are only two ways to persuade everyone at the same time to cast aside, like an unwanted garment, the existing social order, under which humanity has lived and developed from its origin to the present day, and then (proceed to) adopt an organization of human invention and become the obedient parts of another mechanism: force or universal consent.
It is necessary, either for the organizer to have at his disposal a force capable of overcoming all forms of resistance so that humanity becomes malleable wax in his hands, to be kneaded and molded to suit his fantasy, or to obtain through persuasion agreement so total, so exclusive, and even so blind that it renders the use of force superfluous.
I challenge anyone to quote me a third means of achieving the triumph of a phalanstery 922 or any other form of artificial social organization and having it become common human practice.
However, if there are just these two means and if we prove that the one is as impracticable as the other, this would be an intrinsic proof that the organizers are wasting both their time and their trouble.
As for having at their disposal a physical force sufficient to ensure the submission of all the kings and nations on earth, this is something that dreamers, even though they are dreamers, have never contemplated. King Alphonse was proud enough to say: "If I had been privy to the counsels of God, the world on this planet would have been better organized". 923 But if he ranked his own wisdom above that of the Creator, at least he was not fool enough to wish to enter a power struggle with God and history does not relate that he attempted to adjust the movement of the stars to suit laws of his own invention. Descartes also contented himself with creating a small world (made up) of dice and strings in the full knowledge that he was not powerful enough to move the universe. 924 The only one we know of who claimed this was Xerxes who, intoxicated by his power, dared to say to the waves: "You will go no further". 925 However, the waves did not retreat before Xerxes, Xerxes retreated before the waves and, had it not been for this humiliating but wise precaution, he would have been swallowed up.
The Organizers thus lack the force to submit humanity to their experiments. Should they win over to their cause the Russian Autocrat, the Shah of Persia, the Khan of the Tartars, and all the heads of nations who exercise an absolute empire over their subjects, they would still not have at their disposal a force sufficient to divide men into groups and series 926 and abolish the general laws of property, exchange, inheritance, and family, since, even in Russia, Persia or Tartary, account still has to be taken to a greater or lesser degree of the men concerned. If the Emperor of Russia took it into his head to wish to modify the moral and physical constitution of his subjects, he would probably be promptly ousted and his successor would not be tempted to continue the experiment.
Since force is a means quite out of reach of our many Organizers, they have no other recourse than to obtain universal consent .
There are two ways of obtaining this: persuasion and deception.
Persuasion! But we have never seen two minds in perfect agreement on every point of a single discipline. How then will all men, with different languages, of different races and customs, and spread all around the world, of whom the majority are unable to read and who are destined to die without ever even hearing the name of the reformer (or their society) spoken, unanimously accept (this new) universal science? What does it involve? Changing the way people work and trade, changing their domestic, civil, and religious relationships, in other words, altering the physical and moral constitution of human beings: and they (the organisers) hope to unite the entire human race by (changing their) beliefs!
Truly, the task appears an arduous one.
If a man comes to tell his fellow-men:
"For the last five thousand years there has been a misunderstanding between God and the human race.
From Adam to the present day, the human race has been on the wrong path and, if only it will believe me, I am going to set it on the right road.
God wanted the human race to proceed differently; it did not want to do this, and this is why evil came into the world. Let all men/mankind listen to me and retrace its steps and proceed in a different direction, and universal happiness will shine on it."
If, as I say, he starts in this way, then if he is believed by five or six followers that is a great deal. From this to being believed by a billion men is an incalculable step, one that is so far off that the distance is immeasurable.
And then, consider that the number of social inventions is as unlimited as the field of imagination; that there is not one political writer who, after closeting himself in his study for a few hours, cannot come out with a plan for an artificial form of organization in his hand; that the inventions of Fourier, Saint-Simon, Owen, Cabet, Blanc, etc. 927 bear not the slightest resemblance to one another; that there is never a day that does not see yet others hatched; that truly the human race has good reason to reflect and hesitate before rejecting the social organization that God has given it in order to make a final and irrevocable choice from so many different social inventions. For what would happen if, once it had chosen one of these plans, a better one came along? Can the human race establish property, family, work, and trade on a different basis every day? Ought it to lay itself open to changing its organization every morning?
"Therefore", as Rousseau said, "as the legislator cannot use either force or reason, he has to resort to an authority of a different order, one that can lead people along without violence and persuade them without convincing them." 928
What is this authority? (It is) deception. Rousseau does not dare to utter the word, but, according to his invariable custom in such cases, he shrouds it in the transparent veil of an eloquent tirade:
"Here", he says, "is what forced the Fathers of nations down through time to have recourse to the intervention of heaven and to honor the gods with their own wisdom so that nations, subjected to the laws of the State as well as to those of nature and acknowledging the same power in the forming of man as in the forming of cities, obeyed freely and bore obediently the yoke of public happiness. This sublime reason, which raises them above the reach of common man, is the one by which legislators put decisions into the mouths of the immortals in order to lead by divine authority those whom human prudence could not move. But it is not in the power of every man to make the gods speak, etc." 929
And so that nobody might misunderstand him, he leaves to Machiavelli, by quoting him, the job of concluding his idea. "Mai non fu alcuno ordinatore de leggi STRAORDINARE in un populo che non ricorresse a Dio." 930
Why does Machiavelli advise us to have recourse to God and Rousseau to the gods or the immortals ? I leave the reader to provide the answer.
I certainly do not accuse the modern fathers of nations of resorting to these unworthy tricks. Nevertheless, the fact should not be hidden that, when you put yourself in their place, it is easy to be carried away by the desire to succeed. When someone who is sincere and philanthropic is firmly convinced that he holds a social secret which will enable his fellow-men to enjoy boundless happiness in this world, when he sees clearly that his idea cannot prevail either by force or reason and that trickery is his sole resource, he must be sorely tempted. It is well known that even ministers of a religion which professes the greatest horror of lies, have not hesitated to indulge in pious fraud , 931 and the example of Rousseau, an austere writer who inscribed at the head of all his writings the motto: Vitam impendere vero, 932 shows us that even proud philosophy itself can be seduced by the charm of this other, quite different maxim: The end justifies the means . Why should it be surprising that modern Organizers also think of honoring the gods with their own wisdom, putting their decisions into the mouths of the immortals, lead people without (using) violence, and persuade them without convincing them ?
We know that following the example of Moses, Fourier put a Genesis before his Deuteronomy. 933 Saint-Simon and his disciples have gone much further down this path. 934 Other, more prudent writers invoke religion in its widest terms, modifying it to suit their views under the banner of neo-Christianity , 935 and nobody will fail to be struck by the tone of mystic affectation that cloaks the preaching of almost all the modern Reformers. 936
But the efforts made in this direction serve only to prove one thing, of some importance it is true, which is that these days, not everyone who wants to can succeed in being a prophet. People can proclaim themselves to be God as much as they like; nobody believes them, whether it be the public, their colleagues, or themselves.
Since I have mentioned Rousseau, I will allow myself a few comments on this organizer , especially since they will aid an understanding as to how artificial organizations differ from a natural organization. This digression, incidentally, is not totally inopportune, since for some time the Social Contract has been hailed as the oracle of the future. 937
Rousseau was convinced that in the state of nature man lived in isolation and that consequently society was a human invention. " Social order ", he said at the beginning, " does not come from nature ; it is therefore based on convention." 938
What is more, although he had a passionate love for freedom, this philosopher had a very low opinion of men. He believed them to be wholly incapable of creating good institutions for themselves. The intervention of a founder, a legislator, a father of the nation was therefore essential.
"A nation subject to laws", he said, "must be their author. It is up to those who band together and them alone, to regulate the conditions governing society, but how will they do this? Will it be by common accord, by sudden inspiration? How can a blind multitude that often does not know what it wants, since it rarely knows what is good for it, set up on its own such a great and difficult enterprise as a legislative system? … Individuals see the good that they are rejecting, the general public wants the good that it does not see, and all have an equal need of guides. … This is what gives rise to the need for a legislator." 939
As we have already seen, as this legislator "cannot use either force or reason, he has of necessity to resort to authority of another order," that is to say in plain language, deception. 940
Nothing can give an idea of the immense distance above other men at which Rousseau places his legislator:
"Gods are needed to give laws to men. … He who dares to undertake to provide institutions for a nation has to feel himself capable of changing human nature itself, so to speak …, of altering man's constitution in order to strengthen him. He needs to remove man's own forces in order to give him others that are not natural to him …The legislator is, in all respects, an outstanding man in the State, … his task is a special and superior function which has nothing in common with human dominion …. While it is true that a prince is a rare being, how much truer is this of a great legislator? The first merely has to follow the model that the other has to offer him. The legislator is the engineer, who invents the machine while the prince is merely the laborer who assembles it and makes it work." 941
And where is the place of the human race in all this? It is the raw material out of which the machine is constructed.
Truly, is this not pride raised to the level of madness? So, men are the parts of a machine that the prince operates, and the design of which the legislator has suggested. The philosopher positions himself at an unmeasurably great distance above the common people, the prince, and the legislator, 942 (where) he floats above the human race, moves it, transforms it, kneads it, or rather teaches the Fathers of Nations how to go about doing this.
Nevertheless the founder of a nation has to set himself a goal. He has human material to set to work, and he has to organize it with an aim in mind. Since men have no initiative and everything depends on the legislator, he will decide whether a nation ought to engage in trading or farming, or live primitively and eat fish etc., but it has to be hoped that the legislator will not make a mistake and not do too much violence to the nature of things.
When men agree to associate together, or rather when they associate together through the will of the legislator , they therefore have a very specific goal. "Thus it was," says Rousseau, "that the Hebrews and recently the Arabs have had religion as their main aim, the Athenians, letters, Carthage and Tyre, trade, Rhodes, the navy, Sparta, war and Rome, virtue." 943
What will the goal be that persuades us, the French people, to break out of isolation or the state of nature in order to form a society? Or rather, (for we are not just inert matter, the material that makes up the machine), toward what objective will we be directed by our great Teacher ?
Given Rousseau's ideas, this can scarcely be literature, trade, or the navy. War is a nobler goal and virtue a nobler one still. However, there is one that is far greater than these. What ought to be the aim of any legislative system, "is freedom and equality ." 944
But you have to know what Rousseau meant by freedom. Enjoying freedom, in his view, is not to be free, it is to vote for something , even when you are being led without violence and persuaded without being convinced, because then you obey with liberty and (can) easily carry the yoke of public happiness. 945
"In Greece", he says, "all that the people had to do they did themselves. They were constantly being assembled in the public square, they lived in a temperate climate, they were not greedy, the slaves did all the work, and the main preoccupation of the people was their freedom. " 946
Elsewhere he says, "The English think that they are free, but they are greatly mistaken. It is only during the election of members of parliament that they are free; as soon as the members are elected, the people are slaves, they are nothing." 947
Therefore the people have to provide everything that is a public service themselves if they wish to be free, for this is what constitutes freedom. They have to always be having elections and be forever on the public square. Woe betide those who think of working for a living! As soon as a single citizen takes it into his head to look after his own affairs, instantly (this is an expression that Rousseau loves) all will be lost.
Certainly the problem is not a small one. What ought we to do? For in the end, even in order to practice virtue and exercise freedom we have to live.
We have just seen in what oratorical guise Rousseau hid the word deception . We will now see the type of eloquence to which he resorts to put across the conclusion of the entire book, namely, slavery .
"Your harsh climates impose needs on you. For six months of the year, the public square is not usable, your dull tongues cannot make themselves heard in the open air, and you fear slavery less than poverty."
You see clearly that you cannot be free.
"What! Is freedom kept in place only with the support of servitude? Perhaps." 948
If Rousseau had stopped at this dreadful word, the reader would have been outraged. He had to resort to impressive declamations. Rousseau does not fail to do so.
"All that is not in nature (he is speaking about society) has disadvantages, and a civil society has more than all the others. There are unfortunate positions in which personal freedom can only be preserved at the expense of that of others and in which citizens can be perfectly free only where slaves are very much enslaved. You modern peoples have no slaves but you are yourselves slaves; you are paying for their freedom with yours… It is useless for you to boast of this preference; I find in it more cowardice than humanity." 949
I ask you, does this not mean: "Modern peoples you would do better not to be slaves but to have slaves"?
I hope the reader will pardon this long digression, but I felt it to be germane. For some time, Rousseau and his disciples in the Convention 950 have been held up to us as apostles of human fraternity. Men as (raw) materials, a prince as (a) engineer, a father of the nation as an inventor, and a philosopher crowning all of this; with deception as the means, and slavery as the result. Is this then the fraternity we are being promised?
I also consider that this study of the Social Contract was useful in helping to point out the things that characterize artificial social organizations. Start with the idea that society is an unnatural condition; look for the schemes to which the human race might be subjected; ignore the fact that it (society) has with(in) itself its own driving force, think of men as raw material; aim to infuse them with movement and willpower, emotions and life; position yourself thus at an incommensurable distance above the human race, these are the characteristics common to all the inventors of social organizations. The inventions differ, but the inventors are (all) alike.
Among the new schemes urged upon weak mortals, there is one presented in terms that warrant attention. Its formula is: A progressive and voluntary association.
However, political economy is founded precisely on this assumption, that society is nothing other than an association (as these words state), 951 an association initially full of faults because man is imperfect, but which improves as he does, that is to say progressively . Do we want to talk about a closer association between labor, capital, and talent, which ought to provide the members of the human family with more goods and greater well-being that is better distributed? If these associations are voluntary , if force and coercion are absent, and if those in the association do not demand that the cost of setting up these associations be borne by those who refuse to join, how do these (associations) go against the principles of political economy? Isn't political economy required, as a science, to study the various ways in which men see fit to join (their) forces and divide (up) their occupations among themselves in order to increase (their) well-being and share it better? Doesn't commerce frequently give us the example of two, three, or four people forming associations among themselves? Isn't sharecropping a type of association, 952 informal if you like, of capital and labour? Have we not lately seen shareholding/stock companies arising that give the smallest amount of capital the opportunity of taking part in much greater enterprises? Are there not, somewhere in this country, a few factories where the attempt is made to establish profit-sharing associations for all their workers. 953 Does political economy condemn these attempts and the efforts made by men to gain greater advantage from their strengths? Has it (political economy) stated somewhere that the human race has said its last word? Quite the contrary, and I consider that no science demonstrates more clearly that society is (still) in its infancy.
But whatever hopes one conceives for the future, whatever ideas one has of the forms that man might find to improve human relationships and disseminate well-being, knowledge, and moral order, one must nevertheless recognize that society is an organization whose components are intelligent and moral actors 954 endowed with free will, and are capable of being perfectible. 955 If you take freedom away from this actor, he becomes merely a sad and sorry mechanism.
Freedom! People appear not to want it right now. In the land of France, that privileged empire of fashion, it seems that freedom is no longer fashionable. For my part, I state that whoever rejects Freedom has no faith in Humanity. Some claim that they have made the discouraging discovery that freedom inevitably leads to monopoly. 956 No, this monstrous linking, this unnatural coupling does not hold; it is the imaginary fruit of an error soon dissipated by the light of political economy. Freedom giving rise to monopoly? Oppression arising naturally from freedom? We must be on our guard. To claim this is to claim that the tendencies of the human race are radically bad, bad in themselves, bad by nature, and bad in their essence. It is to claim that the natural inclination of man is toward his degeneration and the irresistible attraction of his mind toward error. However, in this case, what is the use of our schools, our studies, our research, our discussions save to give greater force to that fatal inclination, since for the human race to learn to choose would be to learn to commit suicide? And if the tendencies of the human race are essentially perverse, where will the Organizers look for their fulcrum in order to change them? According to the premises of the thesis, this fulcrum has to be situated outside the human race. Will they look for it within themselves, in their hearts and minds? But for a start they are not gods; they are men too and consequently impelled like the rest of the human race toward the fatal abyss. Will they call for intervention by the State? But the State is made up of men, and it would have to be proved that these men form a class apart, for whom the general laws governing society are not not applicable, since they are the ones who have been made responsible for making these laws. 957 Without this proof, the problem has not been solved.
Let us not condemn the human race in this way before having examined its laws, forces, energies, and tendencies. From the time he recognized gravity, Newton no longer pronounced the name of God without taking his hat off. Just as much as "the mind is above matter," the social world is above the (physical) one admired by Newton, for celestial mechanics obey laws of which it is not aware. How much more reason (then) would we have to bow down before eternal wisdom (and also universal thought) as we contemplate the social mechanism (and see there how) "the mind moves matter" ( mens agitat molem). 958 Here is displayed the extraordinary phenomenon that each atom (in this social mechanism) is a living, thinking being, endowed with that marvelous energy, with that source of all morality, of all dignity, of all progress, an attribute which is exclusive to man, namely FREEDOM !
895 See above, pp. 000 and pp. 000.
896 EH1 would open with a dedication "To the Youth of France", followed by this chapter on "Natural and Artificial Organisation" (unnumbered in EH1 but numbered chap. 1 in EH2), and then three chapters on "Economic Harmonies," "Needs, Efforts, Satisfactions," and "The Needs of Mankind." In EH2 these four chapters would be rearranged into three chapters.
897 See the Editor's Introduction to T.284 (1845.06.) Undated note by Bastiat on the "Economic and Social Harmonies" found among his papers (c. June 1845), above pp. 000.
898 In the FEE version the phrase is translated as "its moving parts, its springs, and its motive forces"; in the Stirling translation as "its machinery, its springs, and its motive powers." Since the word "movement" refers specifically to clocks, we translate "les mobiles" as driving forces, motivating forces, or motives depending upon the context.
899 Bastiat's references to Rousseau are too numerous to list but his references to Robespierre really begin in his series of anti-socialist pamphlets he wrote after the February Revolution. There are 6 in "Property and Law" (JDE May 1848) in CW2, pp. 47-49; 3 in "Individualism and Fraternity" (June 1848) in CW2, pp. 82-92; 6 in "The Law" (July 1850) in CW2, pp. 107-46; and the most references with 17 in "Baccalaureate and Socialism" (early 1850) in CW2, pp. 185-234.
900 See below, pp. 000.
901 See below, pp. 000.
902 Leonard E. Read, I Pencil: My Family Tree as told to Leonard E. Reed (Irvington-on-Hudson, New York: Foundation for Economic Education, Inc., 1999). </titles/112>.
903 This was a very prescient sentence as it was published in the JDE on 15 Jan. 1848 six weeks before the collapse of the July Monarchy and the Revolution of February which introduced the Second Republic and all the social experiments it introduced to France.
904 Bastiat uses the slightly longer phrase used by the the merchant and Physiocrat Vincent de Gournay (1712-59),"laissez faire, laissez passer" (let us do as we wish, let us pass unrestricted), to describe his preferred government economic policy. See the glossary entry on "Laissez-faire."
905 Bastiat uses the phrase "laissez faire."
906 In the EH2 version of this chapter Bastiat changed this sentence to read: "an artificial, abstract, and contrived organization, which takes no account of these laws, denies them or despises them , one in short that several modern schools of thought appear to wish to impose (on us)."
907 Rousseau believed the Legislator had "to change, so to speak, human nature; to transform each individual, who by himself is an entirely complete and solitary (individual), into a much greater whole, from which this individual will receive, as it were, his (very) life and his being."
See the third paragraph in Social Contract , Book II, Chap. VII "On the Legislator". Our translation, but see also Cranston, p. 84-85.
908 The quote comes fromRousseau's Discourse on Inequality but Bastiat is quoting from memory here and it is not exactly correct. The French states: "…ce n'est pas chez lui (l'homme sauvage) qu'il faut chercher la philosophie dont l'homme a besoin, pour savoir observer une fois ce qu'il a vu tous les jours" (… and we should look in vain to him for that philosophy which a man needs if he is to know how to notice once what he has seen everyday.) See, Rousseau, Du contrat social et autres oeuvres politiques , ed. J. Ehrard, p. 49; Rousseau, Discourse on Inequality , Part I, p. 90 (Cranston trans.). Bastiat was so impressed with this statement that he refers to it several times in the Economic Harmonies . See the glossary entry on "Rousseau."
909 This story of the village carpenter is Bastiat's version of Leonard Read's story of "I, Pencil" (1958). Other advocates of free trade also used variations of it to make the point that world trade had already become very interconnected even before free trade had been adopted by many nations. A very popular version was by the English Anti-Corn Law campaigner William J. Fox in 1844, whose speech was reprinted many times. See, W.J. Fox, speech given at the Covent Garden Theatre on January 25, 1844, Collected Works, vol. IV: Anti-Corn Law Speeches , pp. 62-63; and Leonard E. Read, I Pencil: My Family Tree as told to Leonard E. Reed (Irvington-on-Hudson, New York: Foundation for Economic Education, Inc., 1999).
910 Bastiat uses the phrase "moyens d'existence" (means of existence" which we have translated as "standard of living". See above for a discussion of this term, pp. 000.
911 In the EH version Bastiat adds a third occupation, that of "négociant" (trader).
912 In the EH version Bastiat changes "Antipodes" to "China."
913 Here the FEE edition translates "organisation" as "order". We have kept "organization" because Bastiat is contrasting his idea of "natural and voluntary organizations" with the "artificial and coercive organisations" favoured by the socialists like Louis Blanc and Victor Considerant.
914 Bastiat uses terminology drawn from a mechanical clock to describe the "social mechanism." He refers to "les rouages, les ressorts et les mobiles" which we have translated as "cogs or wheels, springs, and movements". Here he uses the terms "les rouages, les résultats et les mobiles" but we believe "les résultats" is an error as elsewhere in the article he uses the more suitable word "les ressorts" (springs). He corrects this error in the EH1 version.
915 Here Bastiat uses the word "agir" (to act). Several times he talks about "acting man" in a way which would become central to the Austrian school, especially Ludwig von Mises. See below, pp. 000 where he uses this intriguing wording: "society is an organization whose components are intelligent and moral actors (agents) endowed with free will, and are capable of being perfectible," and another place where he talks about "the principle of action ("le principe d'activité") (which) resides in them (men)." Below, pp. 000.
916 Bastiat completely rewrote this paragraph for EH. The new sentence is in bold: "Its wheels are men, that is to say, beings capable of learning, reflecting, reasoning, making mistakes, rectifying them, and consequently acting to improve or worsen the (operation) of the mechanism itself. They are capable of feeling satisfaction and pain, and this makes them not only cogs and wheels (rouages) but also the springs (ressorts) of the mechanism. They are also its driving force (mobiles) because the principle of action ("le principe d'activité") resides in them. They are still more than that, they are the object of the mechanism (en) itself, and its purpose (but), since it is in individual satisfactions and pain that everything is finally resolved."
917 In EH Bastiat changes "the sum of pain, even unmerited pain" to just "the sum of unmerited pain". He does not refer here in the JDE version to his notion of "les causes perturbatrices" (disturbing factors) which prevented the proper operation of the free market. He would add a discussion of this to the versions of his articles "On Population" and "Competition" which appeared as chapters in EH. See the Introduction above, pp. 000, and the glossary on "Disturbing and Restorative Factors."
918 In EH Bastiat added the phrase "and possibly exaggerated" human perfectibility.
919 In EH Bastiat changed "under the régime of slavery" to "under the yoke of slavery."
920 Here is an example of one of Bastiat's"public choice" like insights about the self-interested behaviour of bureaucrats and politicians.
921 FEE translates "les organisateurs" as "our social planners." Stirling as "these system-makers." We have kept the "Organizers" for the reasons stated above, pp. 000.
922 See the glossary entry on "Fourier."
923 Alphonso the Wise (Alfonso X) (1221-1284) was king of Leon and Castile from 1252-1284 and was reputed to have said that if he had been present at the creation of the world he would have had a few words of advice for the Creator on how better to order the universe. During his reign he attempted to reorganize the Castillian sheep industry, raised money by debasing the currency, and imposed high tariffs in order to prevent the inevitable price rises which resulted.
924 In about 1628 René Descartes began work on an unfinished treatise "Regulae ad directionem ingenii" (Rules for the Direction of the Mind). Bastiat is mocking what he wrote in Rule XIII concerning the use of bits of string and toy magnets to explain the rotation of the earth and perpetual motion. See, René Descartes, Oeuvres de Descartes. Edited by Victor Cousin (Paris: F.-G. Levrault, 1824-1826). "Regulae ad directionem ingenii" in Volume 11, pp. 284-293.
925 Bastiat is referring to Xerxes' order, mentioned by Herodotus vii:34-35, for his soldiers to flog the Hellespont (Dardanelles) for allowing a storm to destroy the bridge he was building so his troops could cross on their way to Greece. "So when Xerxes heard of it he was full of wrath, and straightway gave orders that the Hellespont should receive three hundred lashes, and that a pair of fetters should be cast into it. Nay, I have even heard it said that he bade the branders take their irons and therewith brand the Hellespont. It is certain that he commanded those who scourged the waters to utter, as they lashed them, these barbarian and wicked words: 'Thou bitter water, thy lord lays on thee this punishment because thou has wronged him without a cause, having suffered no evil at this hands. Verily King Xerxes will cross thee, whether thou wilt or no. Well dost thou deserve that no man should honor thee with sacrifice; for thou art of a truth a treacherous and unsavory river.' While the sea was thus punished by his orders, he likewise commanded that the overseers of the work should lose their heads." The History of Herodotus. Translated by George Rawlinson . Online: <http://classics.mit.edu/Herodotus/history.7.vii.html>.
926 Bastiat is making fun of the complex definitions and categories used by Fourier in his social theory. For example, he wanted to create a new society in which even the lazy and "young girls" would become "passionate" about industrial work. To achieve this for his imagined "le mécanisme sociétaire" he wanted to create "des Séries passionnées" (committed work groups). See Le Nouveau monde industriel et sociétaire ou invention du procédé d'industrie attrayante et naturelle, distribuée en séries passionnées (Paris: Bossange père, 1829), p. 4.
927 Bastiat mentions the most influential French socialists of his day as well as the Englishman Robert Owen (1771-1858): François Marie Charles Fourier (1792-1837), Claude Henri de Rouvroy, Comte de Saint-Simon (1760-1825), Étienne Cabet (1788-1856), and Louis Blanc (1811-1882). See the glossary entries for details.
928 Social Contract , Book II, Chap. VII "On the Legislator". Our translation, but see also Cranston, p. 87.
929 Social Contract , Book II, Chap. VII "On the Legislator". Our translation, but see also Cranston, p. 87.
930 "Never was there a promulgator of extraordinary laws in a nation who did not invoke God's authority." (FEE) Opere di Niccolò Machiavelli, vol. terzo (Milano: Giovann Silvestri, 1820). De' discorsi, Libro primo, cap. undecimo, "Della Religione de' Romani," p. 68.
931 In ES2 1 "The Physiology of Plunder" Bastiat develops a sketch of his planned History of Plunder in which he deals with "theocratic plunder" and "theocratic fraud" at some length, CW3, pp. 121-24.
932 "To devote one's life to the truth." Juvenal, Satire IV , line 91.
933 Presumably, he means Fourier created his "new world" before laying down the laws which would govern it.
934 In the EH version Bastiat changes this to "have gone much further in their apostolic tendencies."
935 Bastiat might have in mind Fourier's Le Nouveau monde industriel (Bruxelles: Société belge de librairie, 1841), T. II, Section VII,. Synthèse générale du mouvement, XIV Notice. "Partis transcendante du mouvement", pp. 343-65.
936 See Louis Reybaud, Études sur les Réformateurs ou socialistes modernes . (Paris: Guillaumin, 1848. 2e édition). 2 vols. for a fuller discussion from the Economists' perspective. Also, Reybaud, "Socialistes, socialisme," DEP, vol. 2, pp. 629-41.
937 To get some idea of the popularity of Rousseau's work even in the 19th century, there were multi-volume collections of Rousseau's Oeuvres published in 1819-20, 1821-22, 1824-25, 1830-33, 1856-58.
938 Social Contract , Book I, Chap. I "The Subject of Book I." Our translation, but see also Cranston, p. 50.
939 Social Contract , Book II, Chap. VI "On the Law." Our translation, but see also Cranston, p. 83.
940 The idea of deception and trickery was central to Bastiat's understanding of economic sophisms. According to him, individuals were deprived of their property directly by means of "la force" (coercion or force) or indirectly by means of "la ruse" (fraud or trickery) or "la duperie" (deception). The beneficiaries of this force and fraud used "les sophismes" (misleading and deceptive arguments) to deceive ordinary people whom he referred to as "les dupes" (dupes). Here he is accusing Rousseau of engaging in a kind of "political sophism."
941 Social Contract , Book II, Chap. VII "On the Legislator". Our translation, but see also Cranston, p. 84.
942 In EH Bastiat changed this sentence to read: "The philosopher controls the legislator by placing himself at an unmeasurably great distance (above/away from) the common people, the prince, and the legislator himself."
943 Social Contract , Book II, Chap. XI "On Different Systems of Legislation." Our translation, but see also Cranston, pp. 97-98.
944 Social Contract , Book II, Chap. XI "On Different Systems of Legislation." Our translation, but see also Cranston, p. 96.
945 Social Contract , Book II, Chap. VII "On the Legislator". Our translation, but see also Cranston, p. 87.
946 Social Contract , Book III, Chap. XV "On Deputies or Representatives." Our translation, but see also Cranston, p. 142.
947 Social Contract , Book III, Chap. XV "On Deputies or Representatives." Our translation, but see also Cranston, p. 141.
948 Social Contract , Book III, Chap. XV "On Deputies or Representatives." Our translation, but see also Cranston, p. 142.
949 Social Contract , Book III, Chap. XV "On Deputies or Representatives." Our translation, but see also Cranston, pp. 142-43.
950 The National Convention (Convention nationale, also known simply as "the Convention") was a legislative body and constitutional convention during the early French Revolution (21 September 1792 to 26 October 1795). Under the Convention the Monarchy was done away with and replaced by a Republic. A year into its existence the Committee of Public Safety came to dominate the Convention under the control of Maximilien Robespierre, whose political ideas had been much influenced by Rousseau.
951 Both words have their origin in the Latin word "socius" (companion) and its related words "societas" (association, union, community) and "sociare" (to unite with).
952 As a landowner with several dozen sharecroppers Bastiat had a special interest in this institution and wrote an article on it in February 1846 for the JDE, "Thoughts on Sharecropping," in which he makes a similar argument. See, above pp. 000.
953 info??
954 Bastiat uses the word "un agent" (agent, or actor). FEE translated it as "elements." Stirling as "agent."
955 Bastiat began talking about the "perfectibility of mankind" early in 1845 in his articles "On the Book by M. Dunoyer. On The Liberty of Working" and "Letter from an Economist to M. de Lamartine" (JDE Feb. 1845), and then in earnest in 1846 in his articles "On Competition" (JDE May 1846) and "On Population" (JDE, October 1846), after which it became a central part of his social theory. See above, pp. 000.
956 Bastiat added this footnote in the EH version in which he quotes the socialist Victor Considerant: "It has been shown that our regime of free competition, demanded by an ignorant form of Political Economy and decreed in order to abolish monopolies, merely ends in the general organization of great monopolies of all types." Considérant, Victor Prosper. Principes du socialisme. Manifeste de la démocratie au XIXe siècle. 2d ed. Paris: Librairie Phalanstérienne, 1847. Première Partie. État de la Société. Chap. I Des intérêts et des besoins de la société. Sect. XI "L'Enfer social. Nécessité absolue d'une solution," p. 15.
957 Bastiat is referring to the classic problem of "quis custodiet ipsos custodes?" (who watches the watchmen?) from Juvenal, The Satires 6: 346-48.
958 From Virgil's Aeneid , VI, 727). In Dryden's translation - "one common soul / Inspires and feeds, and animates the whole / This active mind, infus'd thro' all the space, / Unites and mingles with the mighty mass."
T.177 "Laziness and Trade Restrictions" (16 Jan. 1848, LE)↩
[CW4 draft 16 June, 2017] SourceT.177 (1848.01.16) "Laziness and Trade Restrictions" (Paresse et restriction), LE , 16 Jan. 1848, no. 8 (2nd year), pp. 46-47. [OC2.39, pp. 219-21.] [CW4]
Editor's IntroductionBastiat returns to the theme used by many protectionists that protection is good for a nation because it makes a people work harder (in this case the lazy Spaniards) in the short term but which will ultimately make them better off in the longer term. He ridiculed this idea on many occasions, 959 most famously in his sophism on the "Petition by the Manufacturers of Candles" (October 1845, ES1.16), but also in several very witty tales about how imaginative legislators might increase the impediments to productive work, and thus increase the amount of "labour" French people would have to do: blocking up rivers to restrain trade, railroads that were forced to stop and trans-ship passengers and cargo at every town, cutting trees with blunt axes, and forcing people to only work with their left hands. His reply to all these schemes was to point out the "opportunity costs" to consumers of doing this, by spending more money or labour in acquiring a good, consumers had that much less money or labour to acquire other things.
To this, Bastiat adds another twist, namely the question whether or not it was a part of the legislator's legitimate function to make the people work harder. He rejects this idea completely and points out that it goes back to some mistaken ideas about the state held by Rousseau, who believed that only the wise legislator could give society "feelings and desires, movement and life."
Towards the end of the article Bastiat raises the issue of whether or not public servants are members of the "productive" or the "unproductive class." The classical school of political economy had been divided on the question of what economic activity was truly productive of wealth and how much each activity contributed to its formation, whether it was agriculture, manufacturing, or trade. Jean-Baptiste Say had complicated matters in his Treatise (1803) by arguing that there were also non-material sources of wealth such as the work of doctors, lawyers, judges, and even opera singers who provided important and valuable services to their customers. Whether or not politicians and bureaucrats were productive or parasitic was hotly debated. According to Bastiat's own theory of "plunder" they could be either depending on what they actually did with their power. 960 If they defended the citizens' rights to life, liberty, and property, they were considered to be productive. If they, went beyond the core functions of providing police and defence services, he regarded them as being plunderous and parasitical. It should be noted that Bastiat was a music lover and enjoyed the singing voice of the Swedish opera singer Jenny Lind, the uniqueness of which provided a considerable "service" to her listeners. Several times Bastiat used her voice as an example in discussions of his theory of value. 961
Text16 January 1848
One of our subscribers, people of great enlightenment and experience, a person who enjoys a high social position, has sent us the following objection, to which we hasten to reply since it preoccupies a great many sincere minds.
"Since work is exhausting, many of us prefer refraining from work rather than having to rest from exhaustion. Our climate more or less encourages us in this. For example, Spaniards are lazy both in mind and body. Allow free trade in Spain. The inhabitants will be better housed, fed, and clothed, because with their products they will purchase from abroad better products at lower prices than those they are able to manufacture, but they will always buy only in proportion to what they themselves produce. Once the first improvement has been achieved, they will remain in the same situation, since they do not know how to, do not want to, and cannot produce any more. A certain amount of protection (in whatever form), limited to vital industries aims to persuade them to conquer their natural tendencies by assuring them of a reward for their efforts. Statesmen cannot say to them "If you are left to your natural instincts you will produce little, purchase little, and will remain poor. It is good for you to produce more in order to be able to purchase more one day. To reward you for your trouble, to encourage you to study, which will provide you with more knowledge, to work harder, which will provide you with better tools and to practice, which will increase your skill, we are all going to impose a sacrifice on ourselves. Produce, and we will for a time refrain from acquiring the same products from abroad; we will pay you a higher price for them , so that you recover your investment and so that you give us a new form of production, and consequently a new means of trading, and greater ability to purchase."
In this way, like us, our honorable correspondent sees in trade restrictions an impoverishment, harm, suffering, a loss, and a sacrifice inflicted on the population. The only thing is that he asks himself whether restriction cannot act as a stimulus in order to arouse the population from its natural inertia.
The laziness of a nation being taken as a fact, our correspondent will readily agree that if this nation is poor it is its laziness and not its imports that should be blamed. On the contrary, imports allow it to enjoy more forms of satisfaction from the small amount of work it undertakes.
If a Statesman intervenes and says "We are going to exclude a foreign product; you will make it yourselves, and your fellow-citizens will pay you more for it in order to induce you to work through the hope of greater gain," the result would be that, by paying more for the product, all his fellow-citizens would be the poorer by this amount and would encourage to a lesser extent industries that already exist in the country. 962 All that will have been done is to encourage one form of production by discouraging ten others, and it will not then be clear how this sacrifice will have achieved its aim, which is to eliminate laziness.
But what is more serious is this. The question may be asked whether it is the proper mission of a Statesman to decrease the means of satisfaction of a nation in the hopes of arousing it from its inertia. After establishing that restriction is a form of general sacrifice, as our correspondent does with no mental reservations , to ask whether, assuming it was practical to do so, it might not be useful as a means of forcing men to work is to ask, with the same aim in view, whether it would not be a good thing to decrease the fertility of the soil, to bury minerals deeper in the ground, to make the climate harsher, to prolong the rigors of winter, to shorten the hours of daylight 963 or to give Spain the same climate as Scotland in order to stimulate the inhabitants' energy through the sharp prick of need. This might well succeed. But is this the mission of government? Does the right of Statesmen go this far? And because one man has been propelled by the winds of circumstance to the helm of business, because he has received the commission of minister, does his legitimate omnipotence 964 over all his fellow men extend to the point of making them suffer and accumulating difficulties and obstacles around them in order to make them active and industrious?
The source of a thought like this is in a doctrine that is widespread these days to the effect that those being governed are inert matter on which those in government are entitled to carry out all sorts of experiments.
Many political writers have made the mistake of not giving sufficient importance to civil servants and considering them to be an unproductive class.Modern schools 965 appear to have fallen into the contrary exaggeration by making those in government beings set apart and placed outside and above the human race with the mission, as Rousseau says, 966 of giving it feelings and desires, movement and life .
We oppose such autocracy in lawmakers, and all the more when it is revealed in measures which, after all, only encourage some to a certain extent by discouraging others to an even greater extent, as is characteristic of the protectionist system, according to our honorable correspondent himself.
959 The idea of the government ordering its citizens to work harder and less productively in order to increase the number of jobs or the amount of labour which workers had to do was one Bastiat used several times in his Economic Sophisms . The best known examples are ES1 7 "Petition by the Manufacturers of Candles, etc." (JDE, October 1845), CW3, pp. 49-53; ES1 16 "Blocked Rivers pleading in favor of the Prohibitionists", CW3, pp. 80-81; ; ES1 17 "A Negative Railway," CW3, pp. 81-83; ES2 3 "The Two Axes," CW3, pp. 138-42; ES2 16 "The Right Hand and the Left Hand" ( LE , 13 December 1846), CW3, pp. 240-48.
960 See the glossary entry on "Bastiat's Theory of Plunder."
961 See chap. V "On Value" and chap. XI "Producers and Consumers" in Economic Harmonies and several letters he wrote in late 1848. Also, Letter 117 to Arrivabene (Paris 21 December, 1848), CW1, pp. 171-72, and Letter 118 to Mme Scwabe (Paris, 28 December 1848), CW1, p173. In the letter to Arrivabene he states that "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. "
962 This is another example of Bastiat's use of the idea of "opportunity cost" which he pioneered. He gave it a name, "the unseen", in his pamphlet What is Seen and What is not Seen (July 1850).
963 See, "Petition by the Manufacturers of Candles, etc. ([JDE, October 1845, ES1 7, CW3, pp. 49-53.
964 On Bastiat's idea of "the perversion of the law" see his pamphlet "The Law" (June 1850) and EH2 chapters XVII and XX on "Private and Public Services" and "Responsibility". Especially in "The Law": "The law corrupt? The law—and in its train all the collective forces 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 an instrument of all forms of cupidity instead of being a brake on them! The law itself accomplishing the iniquity it was intended to punish! This is certainly a serious occurrence if it is true, and one to which I must be allowed to draw the attention of my fellow citizens." See, CW2, p. 107.
965 Bastiat is referring to the various schools of socialism which had appeared during the 1840s around thinkers like Louis Blanc, Fourier, Considerant, Proudhon. See the glossary entries on them.
966 Bastiat is not specific but probably has in mind quotes from The Social Contract like the following: "We have given life and existence to the body politic by the social pact; now it is a matter of giving it movement and and will by legislation." (Book II, Chap. 6 "On Law", p. 80); "The principle of political life dwells in the sovereign authority. The legislative power is the heart of the state, the executive power is the brain, which sets all the parts in motion." (Book III, chap. 11 "The Death of the Body Politic", p. 135). Rousseau, The Social Contract (Penguin, Cranston trans.).
T.178 "Letter to M. Jobard (on intellectual property)" (22 Jan. 1848, Ec. belge )↩
[CW4 draft 16 June, 2017] SourceT.178 (1848.01.22) "Letter to M. Jobard" (À M. Jobard) written 22 Jan. 1848. Published as "La propriété des inventions. - Une lettre inédite de Bastiat" (Property in Inventions. An unpublished letter by Bastiat) in Gustave de Molinari's L'Economiste Belge , 1 Sept. 1860, pp. 344-45. [OC7.41, pp. 207-10.] [CW4]
Editor's IntroductionSee Guido Hülsmann's Introduction to this volume (above) for a more more detailed treatment of Bastiat's views of intellectual property.
This is third of three pieces on literary and intellectual property rights Bastiat wrote. 967 The man Bastiat addresses in this letter is Marcellin Jobard (1792-1861) who was a Belgian lithographer, photographer, and inventor. From 1841 to 1861 he was the director of the Royal Belgian Museum of Industry in Brussels. He was a prolific inventor (with 75 patents) and took up the cause of defending the absolute property rights of inventors. He wrote dozens of pamphlets expressing his views in a very idiosyncratic manner. 968 Molinari was sympathetic to his position in favour of absolute property rights in literary and artistic material but objected to his critique of economic liberty in the broader sense. As Guido Hülsmann notes in the "Introduction" to this volume, Bastiat took a more "nuanced" position between the anti-propertarians like the socialist Louis Blanc, and the economists who were in favour of private property but split into two camps, with the "absolutists" like Jobard and Molinari on one side and the "utilitarians" like Charles Coquelin on the other.
Jobard's ideas probably came to Bastiat's attention via Hippolyte Castille's journal Le Travail intellectuel which published two letters by Jobard expressing support for the journal, as did Bastiat. 969
TextParis 22 January 1848
Mr. Jobard,
You have challenged me to express my opinion on the major problem of intellectual property. I do not have such fixed ideas on this question as to claim that these have the slightest influence on the men who, because of their position, are able to put your views into practice.
It is true that I told you that if the intellectual sphere were ever secured a place in the domain of property, this great Revolution would extend the field of political economy without changing any of its laws or any of its fundamental notions and I am still of this opinion.
I believe that if a primitive Ioway 970 man studied political economy he would reach the same views as ours on the nature of wealth, value, capital, exchange, etc., etc. I think that political economy, like science, is the same in the Department of the Landes, 971 where there is a great deal of common land, as in the Seine, where there is not, in a town in which there is a common water source and in another in which each house has a well, in Morocco and in France, although the ownership of land is laid down on different bases in these two countries.
However if, after being called upon to explain economic laws, the primitive Ioway was questioned on the effects that would result from the personal appropriation of the land, he would be obliged to indulge in conjecture, or if you prefer, deductions, since this phenomenon had never been the subject of direct observation.
This is approximately the position in which I find myself with regard to the ownership of inventions.
There are two questions I ask myself:
1. Is there any element in an invention that constitutes property?
2. If there is, is it within the power of the government to guarantee this property? In other words, is the truth of principle and the possibility of applying it on your side?
I acknowledge that the element that constitutes property appears to be evident in an invention. In my view, property is nothing other than awarding the satisfaction that follows an effort to the person who has made that effort . In this case there is labour, and there is enjoyment, and it seems natural for the enjoyment to be the reward of the person who has done the work .
But has the person who invented and built a plough an exclusive right, not only over this plough but even over the very concept of this plough, so that nobody is able to build something similar?
If this is the case, imitation is excluded from this world, and I must admit that I attach an immense and extremely beneficial importance to imitation. I cannot set out my reasons in a letter, but I have put them in writing in an article entitled "On Competition" published in Le Journal des Économistes . 972
Allow me, Sir, to subject your principle to a test, that of exaggeration . There are many people who do not accept this method, but I consider it to be excellent. When a principle is a good one, the more it acts with no obstacles, the more benefits it disperses. In a tirade against machines, Sismondi asks himself what would become of humanity if a king were able to produce everything by turning a crank handle? 973 My reply is: Everyone should have a handle like this; we would all be infinitely wealthy unless we claimed that God is the most miserable of beings since He does not even need a handle and a fiat is enough for him.
This having been said, let us suppose that there still exists a descendant of Triptolemos 974 and that the ownership of the right to make ploughs had been preserved from father to son down to him. This is the most favorable setting for your principle, if it is a good one. I allow that this family may have temporarily handed down this right to their heirs in order to obtain the greatest profit possible. But do you think that the human race would have drawn all the benefits from a plough that this tool has produced? On the other hand, would a right like this not have introduced into the world the seed of unlimited inequality?
The word invention also seems rather elastic to me. Just because I was the first person to put on clogs, 975 are all the people on the face of the earth required by law to go barefoot?
These are my doubts, Sir, and you will tell me that this is not a doubt but a solution. No, for as I said at the beginning, I am in the position of the Ioway . He might have been and he probably was struck by the disadvantages of land ownership and the power of his intellect would not have enabled him to perceive all its advantages. I also think that, in the incorporation of the intellectual domain within the realm of property, there is a revolution as imposing and perhaps as beneficial as the one which caused land held in common to yield to private ownership. What I fear is abuse. What I do not see clearly is the boundary between what genuinely constitutes an invention and the host of things that we invent every day. I fear that the most commonplace processes will be taken over. 976 Perhaps in my concentration on other work I have not studied your work in enough detail from the practical point of view. What I can say, Sir, is that your thought contains an element of grandeur, intellectual seductiveness, and logic that does not contradict, as socialist projects do, the fundamental notions of science, and I sincerely admire the concentration and perseverance which you devote to putting it into practice.
I am, Sir, etc.
967 See the Editor's Introduction to the first, his "Letter to Hippolyte Castille" (15 Sept. 1847) for details, above, pp. 000.
968 Jobard wrote Nouvelle économie sociale, ou monautopole industriel, artistique, commercial et littéraire, fondé sur la pérénité des brevets d'invention, dessins, modèles et marques de fabrique (Paris: Mathias, 1844) and Organon de la propriété intellectuelle (Paris: Mathias, 1851). Joseph Garnier described his ideas as a mixture of "a bit of plausibility, a bit of nonsense, a bit of science, and a bit of ignorance." There is a lengthy, critical, though respectful discussion of Jobard's ideas by Charles Coquelin, "Brevets d'invention' (Patents) in JDE , vol. 1, pp. 209-23.
969 See Le Travail intellectuel, no. 2, 15 Sept. 1847; and no. 5, 15 Dec. 1847.
970 Ioway is the old name for the Indian tribes who once inhabited what is today known as the state of Iowa. In 1837 they were moved to reservations in Kansas and Nebraska.
971 Les Landes was Bastiat's home department in Gascony in the south west of France which he represented in the National Assembly after the election of April 1848.
972 See, Bastiat, "De la concurrence" (On Competition), JDE , T. XIV, No. 54, Mai 1846, p. 106-22. This was substantially rewritten as Chap. X in Economic Harmonies (1850). See above, pp. 000.
973 Jean Charles Léonard de Sismondi (1773-1842) was a Swiss historian and economist. He wrote De la richesse commerciale (1803) which was quite Smithian in its support for the free market but after a trip to England when it was in the midst of an economic depression following the Napoleonic Wars he wrote a more critical work Nouveaux principes d'économie politique (1819) where he expressed his concern for the welfare of those at the bottom of the economic ladder. Sismondi first used the colourful story of an island King singlehandedly, but with the help of automatons, turning a crank handle and producing as much industrial output as the entire British Isles, to the great detriment of British workers, in the chapter on "Population" in Nouveaux principes d'économie politique (1819). He returned to the problem of the mismatch between production and consumption caused by technological innovation in an article in La Revue encyclopédique (May 1824) which was quickly pounced on by J.-B. Say in the following issue. See, Sismondi "De la population," Nouveau principes , T. 2, (Paris, 1819), p. 331-32; Sismondi, "Balance des consommations avec les productions," La Revue encyclopédique , May 1824, T. XXII, pp. 264-98; and Say, "Sur la Balance des consommations et productions", La Revue encyclopédique , July 1824, 67e Cah. T. XXIII, pp. 18-31. Sismondi's article was reprinted with additional footnotes in Études sur l'Économie politique, T. I, (1837), Premier essai, "Balance des consommations avec les productions", pp. 33-77; Say's was reprinted in CPE , Say, Oeuvres diverses , T. 12, pp. 250-60.
974 Triptolemus (Threefold Warrior) was a Greek god who was taught by Demeter the science of agriculture, and he in turn passed on this knowledge to the Greek people.
975 Clogs (sabots) are hand made wooden shoes which poor peasants and artisans traditionally wore.
976 In his edition of Bastiat's Complete Works , Paillottet inserted this note by Jobard with no explanation: "Expropriation for the public good will remedy this." See, OC7.41, pp. 207-10.
T.179 (1848.01.23) "On Maritime Registration" (LE, Jan. 1848)↩
SourceT.179 (1848.01.23) "On Maritime Registration" (Sur l'inscription maritime), Le Libre-Échange, 23 Jan. 1848, no. 9 (2nd year), p. 49. Incorrectly dated in OC2 - not 1847. [OC2.36, p. 205-9.] [CW6]
Text(insert HTML of file here)
T.180 (1848.01.30) "More on Armaments in England" (LE, Jan. 1848)↩
SourceT.180 (1848.01.30) "More on Armaments in England" (Encore les armements en Angleterre), Le Libre-Échange, 30 Jan. 1848, no. 10 (2nd year), p. 53. [OC2.35, pp. 200-5.] [CW6]
Text(insert HTML of file here)
T.181 (1848.02.06) "The Mayor of Énios" (LE, Feb. 1848)↩
SourceT.181 (1848.02.06) "The Mayor of Énios" (Le maire d'Énios), Le Libre-Échange, 6 Feb. 1848, no. 11 (2nd year), pp. 63-64. [OC2, pp. 418-29.] [CW3 - ES3.18]
XVIII. The Mayor of Énios [6 February 1848] (final draft)↩
Publishing history- Original title, place and date of publication: "Le maire d'Énios" (The Mayor of Énios]) [6 February 1848, Le Libre-Échange]
- Published as book or pamphlet: Republished in Annuaire de l'économie politique pour 1848 (1848), pp. 348-57.
- Location in Paillottet's edition: Oeuvres complètes (1st ed. 1854-55), Vol. 2: Le Libre-Échange (1855), pp. 418-29.
- Previous translation: [none]
The Mayor of Énios was quite a strange Mayor. Quite a character … But first of all it is a good thing for the reader to know what Énios is.
Énios is a village in the Béarn676 situated …
However, it seems more logical to introduce the Mayor first.
Well then! Here I am, in a fine tangle, right from the start. I would prefer to have algebra to prove than to tell the story of "Donkeyskin"677.
Oh Balzac! Oh Dumas! Oh Suë!678 Oh geniuses of fiction and the modern novel, you who in volumes packed tighter than hail in August are able to divide all the threads of an interminable intrigue without mixing them up, at least tell me if it is better to paint the hero before the backdrop or the backdrop before the hero.
Perhaps you will tell me that it is neither the subject nor the place but the time that should be given priority.
Very well then! It was at the time when asphalt mines …
But I think I will be better off relying on my own way doing things.
Énios is a village which backs against a high and steep mountain to the south, so that the enemy (I am talking about trade), in spite of his fraud679 and daring, cannot, as is said in strategic terms, fall on its rearguard nor take it from behind.
To the North, Énios stretches out over the rounded crest of the mountain, whose gigantic foot is bathed by the rushing torrent of the Gave.680
Protected in this way, on one side by inaccessible peaks and on the other by an impassable torrent, Énios would be totally isolated from the rest of France if public works engineers had not built across the Gave a daring bridge of which, to conform to modern ways of doing things, I am tempted to give you the description and history.
This would lead me very naturally to give you the history of our bureaucracy; I would tell you of the war between civil and military engineering, between the town council, the General Council, the Council for Roads and Bridges, the Council for Fortifications and a host of other councils.681 I would paint a picture of weapons that consist of pens and projectiles that consist of files. I would say how one wanted the bridge to be in wood and the other in stone, this one in iron, that one with iron cables; how, during this conflict the bridge was not built, how subsequently, thanks to the wise contrivances of our budget, the bridge was started several years running in the depths of winter, so that not a trace of it was left in the spring, how, when the bridge was completed they noticed that the road leading up to it had been forgotten, at which point you had the fury of the mayor, the embarrassment of the prefect, etc. Finally, I would write a thirty years' history, consequently three times as interesting as that written by Mr. Louis Blanc.682 But what use would that be? Would I teach anyone anything?
Following this, what would stop me from writing a description half a volume long on the bridge of Énios, its abutments, piles, roadway or railings? Would I not have at my disposition all the resources of fashionable style, especially personification? Instead of saying: "The bridge at Énios is swept every morning." I would say: "The bridge at Énios is a coxcomb, a dandy, a leader of fashion, a celebrity. Every morning his manservant dresses and curls his hair, for he wants to show himself to the beautiful fierce ladies of the Béarn only once he is sure, having admired himself in the waters of the Gave, that his tie is properly knotted, his boots properly polished and his appearance irreproachable." Who knows? Perhaps it will be said of the narrator, as Gerontius said of Damis683: "He is really a man of taste!"
It is in line with these new rules that I propose to tell my tale, just as soon as I have found a benevolent editor who will agree to this. In the meantime, I will echo the style of those who have just two or three little columns of a journal at their disposal.684
Imagine Énios, then, with its green meadows, on the banks of a torrent and, going upward in stages, its vineyards, its fields, its pastures, its forests and the snow-covered summits of the mountain that dominates and rounds off the picture.
Prosperity and contentment reigned in the village. The Gave provided the motive power for mills and sawmills, the herds and flocks provided milk and wool, the fields provided wheat, farmyards poultry, the vineyards a generous wine and the forests abundant fuel. When one of the inhabitants of the village had managed to save some money he asked himself what it would be best to spend it on and the price of items directed his choice. If, for example, with his savings, he had the choice of making a hat or raising two sheep properly, and at the same time, on the other side of the Gave people asked for only one sheep in return for a hat, he would have thought that making the hat was an act of folly, for civilization and with it, Le Moniteur industriel,685 had not yet penetrated into this village.
The mayor of Énios was the one destined to change all that. He was not an ordinary mayor, this mayor of Énios; he was a genuine Pasha.686
In the past, Napoleon had tapped him on the shoulder. Since then, he was more Napoleonist than Roustan687 and more Napoleonic than Mr. Thiers688.
"That is a man," he said when speaking of the emperor, who did not discuss, he acted. He did not consult, he ordered. That is how you govern a nation properly. Above all, the French need to be led with a stick."
When he needed services in the form of compulsory labor to be provided for the roads in his district , he would summon a farmer: "How many days of compulsory labor (corvée) do you owe? (one still uses the word "corvée" in these parts, although "prestations" (compulsory service) would be much better)689" "Three" replied the farmer. "How many have you already carried out?" "Two". "So, you have two more to go." "But, Mr. Mayor, two and two are …" "Yes, elsewhere, but...
In the region of Béarn
Two and two are three;"
And the farmer carried out four days of compulsory labor, I mean "service".
Little by little, the mayor grew accustomed to viewing all men as idiots, who would be rendered ignorant by freedom of education, atheistic by freedom of religion, poor by freedom to trade, who would write only foolish things with freedom of the press and under electoral freedom would contrive to have government activities controlled by civil servants. "All this rabble needs to be organized and led" he often repeated. And when he was asked: "Who will do the leading?" he proudly answered "Me."
Where he was especially brilliant was during the deliberations of the municipal council.690 He deliberated and voted measures on his own in his room, constituting the majority, the minority and unanimity simultaneously. He then told the council officer:
"Is it Sunday today?" "Yes, Mr. Mayor."
"Will the municipal councilors be going to sing vespers?" "Yes, Mr. Mayor."
"And from there they will go to the café?" "Yes, Mr. Mayor."
"Will they be drink too much?" "Yes, Mr. Mayor."
"In that case, take this paper." "Yes, Mr. Mayor."
"You will be going to the café this evening." "Yes, Mr. Mayor."
"At a time when they can still see well enough to sign their name."
"Yes, Mr. Mayor."
"But when they can no longer see enough to read." "Yes, Mr. Mayor."
"You will put before my good municipal councilors this notice and a pen dipped in ink and you will tell them from me to read it and sign it." "Yes, Mr. Mayor."
"They will sign it without reading it and I will be in order with regard to my prefect. This is how I understand representative government."
One day, he saw in a journal this famous saying: Legality is killing us. "Ah!" he cried, "I will not die before I have embraced Mr. Viennet691."
It is nevertheless correct to say that, when legality suited him, he clung to it like a real mastiff. Some men are made like this; there are not many of them, but they do exist.
This is how the Mayor of Énios was. And now that I have described both the theatre and the hero of my story, I will get on with it with gusto and with no digression.
Around the time when the people of Paris were going to look for asphalt mines692 in the Pyrénées, with shares already allocated to the tune of an untold number of millions, the mayor gave hospitality to a traveler who left behind him two or three precious issues of Le Moniteur industriel … He read them eagerly, and I leave you to imagine the effect that reading this was bound to have on a mind like this. "Heavens above!" he cried, "This is a journalist who knows a lot. To forbid, prevent, reject, restrict, and prohibit, oh! What a fine doctrine! It is as clear as daylight. I myself used to say that men would ruin themselves if they were left to barter freely! It is only too true that legality kills us sometimes, but the absence of legality often does so as well. Not enough laws are passed in France, especially ones that prohibit. And, a case in point, prohibition is carried out at the borders of the kingdom, so why not carry it out at the borders of the commune? Damn it all, we have to be logical!"
Then, rereading Le Moniteur industriel, he applied the principles of this famous journal to his own locality. "It fits like a glove", he used to say, "There is just one word that needs to be changed; you just have to substitute the communal labour for the national labour."
The mayor of Énios boasted, like Mr. Chasseloup-Laubat693, that he was not a theoretician; as was the case with his model, there was no peace nor respite in the way he subjected all his population to the theory (for it is indeed one) of protection.
The topography of Énios suited his plans perfectly. He summoned his council (that is to say, he shut himself in his room), discussed, deliberated, voted and passed a new tariff for crossing the bridge, a tariff that was somewhat complicated, but whose spirit may be summed up as follows:
To leave the village, zero per person.
To enter the village, one hundred francs per person.
Having done this, the mayor, this time genuinely, summoned the municipal council to a meeting and gave the following speech, which we quote, complete with interruptions.
"My friends, you know that the bridge cost us a great deal of money; we needed to take a loan to do it and we have to pay back the principal and interest. For this reason I am going to inflict on you an additional contribution."
Jérôme: "Is the toll not enough?"
"A good toll system", said the mayor in a didactic tone, "must have protection as its aim and not revenue.694 Up to now, the bridge has paid for itself, but I have arranged things so that it will no longer bring in anything. In effect, goods from within the commune will pass without paying anything and those from the exterior will not pass at all."
Mathurin: "And what will we gain from this?"
"You are novices", went on the mayor and, spreading out Le Moniteur industriel before him so that he would be able to find an appropriate answer to any objection, he started to explain the mechanics of his system in these words:
"Jacques, would you not be happy to have the cooks of Énios paying a little more for your butter?"
That would suit me." said Jacques.
"Well then, to do this, we have to prevent foreign butter from coming in via the bridge.695 And you, Jean, why are you not making a fast fortune with your chickens?"
"Because there are too many on the market", said Jean.
"Then you will readily see the advantage of excluding those from the neighboring regions. As for you, Guillaume, I know that you have two old oxen on your hands. Why is this?"
"Because François, with whom I was negotiating," said Guillaume "went off and bought oxen at the neighboring market."
"So you see that if he had not been able to bring them across the bridge, you would have sold your oxen well and Énios would have retained 500 or 600 francs in cash.
My friends, what is ruining us and preventing us at least from becoming wealthy is the invasion of products from abroad.
Is it not fair for the communal market to be reserved for the products of the commune?
Whether we are talking about the meadows, the fields or the vineyards, is there not somewhere a village that is more fertile than ours for one of these things? And this village will come as far as us to take away our own work! This would not be competition but a monopoly; let us take steps, by holding each other to ransom, to fight on equal terms."696
Pierre, the clog maker: "At the moment I need oil, and no one makes it in our village."
"Oil! The local slate deposits are full of it.697 You have only to extract it. That is a new source of work and work is wealth. Pierre, do you not see that this damned foreign oil has made us lose all the wealth that nature has placed in our slate deposits?"
The schoolmaster: While Pierre is crushing his slate, he will not be making clogs. If at the same time and with the same work he is able to have more oil crushing slate than making clogs, your tariff is worthless. It causes harm if, on the contrary, Pierre obtains more oil by making clogs than crushing slate. Now, he has the choice between the two procedures; your measure will reduce him to just one and probably the worse one since no one uses it. It is not at all a question of whether there is oil in slate but whether it is worth extracting it, and what is more, whether the time spent on this cannot be better employed doing something else. What are you risking by leaving us freedom of choice?"
Here the mayor's eyes appeared to devour Le Moniteur industriel for a reply to the syllogism but they did not find one, since Le Moniteur has always avoided this side of the question. The mayor was not left speechless for long. The most conclusive argument even came to mind: "Schoolmaster," he said, "I withdraw your right to speak and remove you from office."
A member wished to call attention to the fact that the new tariff would upset a great many interests and that at least a transition had to be managed. "A transition!" cried the mayor, "An excellent pretext against people who are demanding freedom, but when it is a question of taking freedom from them," he added with great sagacity, "where have you heard talk of transition?"698
Finally, a vote was taken and the tariff was passed with a large majority. Does that surprise you? It should not.
Note in fact that there is more art that appears at first sight in the speech made by the leading magistrate of Énios.
Did he not mention his special interest to each person? Butter to Jacques the herdsman, wine to Jean the wine-producer699 or oxen to Guillaume the cattle farmer? Did he not constantly leave the general interest in the shadows?
Nevertheless, his efforts, municipal eloquence, administrative notions and deep-seated views on social economics, all were to be shattered on the stones of the Prefecture building.
The prefect bluntly, with no regard for his feelings, annulled the protective tariff for the bridge at Énios.
The mayor, having run to the departmental capital, valiantly defended his work, the noble fruit of his thought as propagated by Le Moniteur industriel. As a result, between the two rivals, there took place the strangest discussion in the world, the most bizarre dialogue ever heard, for you should know that the prefect was a peer of France and a fiery protectionist. So that all the benefits that the prefect attributed to Customs tariff, the mayor took to defend the tariff for the bridge at Énios and all the disadvantages that the prefect attributed to the tariff for the bridge, the mayor turned against Customs tariff.
"What!" said the prefect, "You want to prevent woolen cloth from the surrounding areas from entering Énios!"
"You are preventing woolen cloth from surrounding countries from coming into France."
"That is very different, my aim is to protect the national employment."
"And mine to protect the communal employment."
"Is it not right for the French Chambers of Peers and Deputies700 to defend French factories against foreign competition?"
"Is it not right for the municipal council of Énios to defend the factories in Énios against external competition?"
"But your tariff is damaging your trade; it is crushing consumers and does not increase work, it displaces it. It stimulates new industries, but at the expense of the old ones. As you said to the schoolmaster, if Pierre wants oil he will crush slate, but in that case he will no longer make clogs for the surrounding communes. You are depriving yourself of all the benefits of the proper management of labour."
"That is exactly what the theoreticians of free trade say about your restrictive measures."
"Free-traders are Utopians701 who see things only from a general point of view. If they limited themselves to considering each protected industry in isolation, without taking account of consumers or the other branches of production, they would understand the full usefulness of restrictions."
"Why are you then talking to me about the consumers in Énios?"
"But in the long run your toll will damage the very industries you want to favor, for by ruining consumers you are ruining their customers, and it is the wealth of the customers that makes each industry prosper."
"This is another thing that free-traders object to you. They say that to want to develop one sector of work through measures that close off foreign markets and which, although they guarantee customers within the country for this sector, constantly impoverish these customers, is to want to build a pyramid by starting with the top."
"Mr. Mayor, you are a nuisance, I do not need to give you my reasons and I am overturning the deliberation of the municipal council of Énios."
The mayor sadly went back along the path to his village, cursing men who have double standards, who blow hot and cold and think very sincerely that what is truth and justice in a circle of five thousand hectares becomes false and iniquitous in a circle of fifty thousand square leagues. As he was a good man at heart, he said to himself: "I prefer the straight opposition of the communal schoolmaster and will revoke his dismissal."
When he reached Énios, he summoned the council to tell them in a pitiful voice about his misfortune. "My friends, "he said, "we have all lost our fortune. The prefect, who votes in favor of national restrictions each year, has rejected communal restrictions. He has overturned your deliberation and delivers you defenseless to foreign competition. However, one resource remains to us. Since the flood of foreign products is stifling us, since we are not allowed to reject these goods by force, why do we not reject them voluntarily? Let all the inhabitants of Énios agree between themselves never to purchase anything from outside."
But the inhabitants of Énios continued to purchase from outside the things that cost them more to make in the village, which confirmed the mayor in the view that men naturally tend toward their ruin when they have the misfortune to be free.
Endnotes676 Béarn is a region located at the base of the Pyrénées in south west France in the Département of Pyrénées-Atlantiques. Its capital is the city of Pau.
677 "Peau d'âne" (Donkeyskin) was a fairy tale written by Charles Perrault in 1694. Perrault worked as an administrator serving under Jean-Baptiste Colbert during the reign of Louis XIV. After Colbert's death in 1683 he lost his position and turned to writing children's stories. The fairy tale "Donkeyskin" is about a princess who was desired by her own father, the king, to be his next wife after his first wife, the princess' mother, died. The princess' fairy godmother told her to wear the skin of a donkey as a disguise to avoid her father's attentions. See Oeuvres choisies de Ch. Perrault, de l'Académie française, avec les mémoires de l'auteur, et des recherches sur les contes des fées, par M. Collin de Plancy (Paris: Brissot-Thivars, 1826). See the glossary entry on "Colbert."
678 Honoré de Balzac (1789-1850) 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, e.g. Old Goriot (le père Goriot, 1835). See the glossary entry on "Balzac." Alexandre Dumas (1802-70) was a prolific author of plays and historical novels such as The Three Musketeers (Les Trois Mousquetaires) (1844). See the glossary entry on "Dumas." Eugène Suë (1804-57) was a surgeon and served in the French Navy during the 1820s. He was active in the romantic and socialist movements and is best known for the novel series Le juif errant (The Wandering Jew) (1844-45). See the glossary entry on "Suë."
679 Bastiat uses the word "la ruse" (fraud) here. 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."
680 "Gave" is a Gascon word for a river. It can be used generically or with reference to particular rivers. It is a word commonly used in Béarn and Chalosse. The Gave de Pau (the main city of Béarn) was a tributary of the Adour river with which Bastiat was very familiar.
681 See the glossary entry on "General Councils."
682 Louis Blanc (1811-1882) was a journalist and historian who was active in the socialist movement. His book L'Organisation du travail (1839) was an important statement of the socialist position on the exploitation of labor and much criticized by the Economists. In 1841 he published a very popular critique of the July Monarchy, Histoire de dix ans, 1830-1840 in 6 volumes which went through many editions during the 1840s. See the glossary entry on "Blanc."
683 Both Géronte and Damis are characters who appeared in Molière's plays but it is not clear what play Bastiat has in mind. Neither appear in the same play together so Bastiat may have misremembered. There is an exchange in Le Misanthrope (Act II Scene IV) between Célimène and Philinte who are talking about the quality of the meals at dinner parties they have attended, and where Célimène gives an extended comment on Damis' parties. She describes him as a rather obnoxious person who tries to be witty and overly critical of everything, yet who has impeccable taste "rien ne touche son goût" (nothing can touch his taste): "Yes; but he's always trying to be witty, / Which drives me wild ; in all his talk, he labours / To be delivered of some brilliant saying. / Since he has taken a notion to be clever, / Nothing can hit his taste, he 's grown so nice. / He needs must censure everything that's written, / And thinks, to praise does not become a wit, / But to find fault will prove your skill and learning, / And to admire and laugh belongs to fools." See the glossary entry on "Molière."
684 Just like Bastiat had of course in his free trade journal Le Libre-Échange. See the glossary entry on "Le Libre-Échange."
685 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 October 1846. See the glossary entries on "Le Moniteur industriel," "Mimerel," and "Association for the Defense of National Employment".
686 The title of Pasha was given to high ranking officials in the Ottoman Empire.
687 Roustam (or Roustan) Raza (1782-1845) was a Georgian slave who was purchased in Constantinople by Sala-Bey, one of the governors of Egypt. He was later freed and entered the Mamelouk cavalry. He eventually came to the attention of Napoleon when he occupied Egypt who took him back to Paris when he returned in 1799. For the next 15 years he faithfully attended upon Napoleon as his personal servant.
688 Adolphe Thiers (1797-1877) was an historian and politician who was Prime Minister and Minister of Foreign affairs during the July Monarchy. During the 1820s he wrote a monumental history of the French Revolution, Histoire de la révolution française (1823-27), and during the 1840s and 1850s one on the Consulate and the Empire, Histoire de consulat et de l'empire (1845-1862). See the glossary on "Thiers."
689 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 the Glossary entry on "French Taxes."
690 Bastiat was elected to the municipal council of Mugron in 1833 after the coming to power of the July Monarchy in July 1830, a post which he held until his death. He would thus have had personal experience of council meetings. See the glossary entry on "General Councils."
691 The phrase "la légalité nous tue" (legality will kill us) was much quoted in the 19th century and has been variously attributed to the novelist Flaubert and to the politician Odilon Barrot. They in turn were probably quoting Jean-Pons-Guillaume Viennet (1777-1868) who had been a soldier under Napoleon and was a well-known poet and politician during the July Monarchy. He ruffled many feathers with his satirical and sometimes flippant works and he was harshly criticised for making this statement by Armand Carrel who called it "sad" and "counter-revolutionary." See "Du mot de M. Vinnet: La légalité nous tue," in Oeuvres politiques et littéraires d'Armand Carrel, mises en ordre, annotées et précédées d'un notice biographique sur l'auteur, par M. Littré et M. Paulin (Paris: F. Chamerot, 1857). vol. 3, p. 383. See the glossary entry on "Viennet."
692 In the 1820s asphalt was being used in Paris and London to pave sidewalks.
693 This could refer to one or other of the sons of a famous general François de Chasseloup-Laubat (1754-1833) who became politicians. Justin de Chasseloup-Laubat (1800-1847) was a soldier before he was elected to the Chamber in 1837 where he supported the conservatives. His brother, Prosper de Chasseloup-Laubat (1805-1873) had an even more distinguished career. After the July Revolution of 1830 he joined General Lafayette's staff in the National Guard and was elected to the Chamber in 1837 like his brother, but supported the centre left. His political career blossomed under Napoleon III taking an interest in naval matters and the colony in Algeria.
694 This is the exact opposite of Bastiat's view of tariffs. See the Appendix "Bastiat's Policy regarding Tariffs."
695 In ES2, XIII "Protection, or the Three Municipal Magistrates," above, pp. ??? Bastiat makes fun of the efforts of the three magistrates of Paris to keep cheap butter from Normandy from competing with local Paris butter. Instead of the enemy being "perfidious Albion" it is now "perfidious Normandy" they have to be frightened of. See the glossary entry on "Perfidious Albion."
696 See also ES1 IV. "Equalizing the Conditions of Production", ES1 X. "Reciprocity," ES2 XVIII. "Domination through Work," and ES3 XI. "The Specialists."
697 Slate deposits were found in the Départment of the Hautes Pyrénées near Lourdes.
698 Bastiat recongnizes that there would be an "inevitable displacement of labour" in any transition period to a system of full liberty. See ES1 XX. Human Labour and Domestic Labour," ES2 VI. To Artisans and Workers," ES2 XVII. "Domination through Work," and ES3 XVII. "Antediluvian Sugar." In "The Utopian" [ES2 XI. (January 1847)] the Utopian minister is reminded that his radical liberal reforms will fail if the process of reform gets too far ahead of the ideas held by ordinary people: "Mr Utopian you are taking on too much, the nation will not follow you!" (above pp. ???). In ES2 XII. "Salt, the Mail, and the Customs Service" (May 1846) Bastiat states that the best strategy is to pursue one reform at a time, as the Anti-Corn Law League had done in England as too many reforms at once could overwhelm the public. His most extended discussion of the problem of transition to a fully free society and the strategy required to achieve this can be found in ES3 V. "On Moderation" (May 1847) where he summarizes his position as follows: "We are fully convinced that by relieving the pressure of a protectionist regime as gradually as opinion will allow but in accordance with a period of transition agreed in advance and on all points simultaneously, all forms of economic activity will be offered compensations that will make the shocks genuinely imperceptible." See above, pp. ???
699 Bastiat is mistaken here. On the previous page Jean is said to be a chicken producer not a wine maker.
700 See the glossary entry on "The Chamber of Deputies."
701 See the glossary entry on "Utopias."
T.183 (1848.02.06) "Two Englands" (LE, Feb. 1848)↩
SourceT.183 (1848.02.06) "Two Englands" (Deux Angleterre), Le Libre-Échange, 6 Feb. 1848, no. 11 (2nd year), p. 57. [OC3.34, pp. 459-62.] [CW6]
Text(insert HTML of file here)
T.184 (1848.02.13) "Antediluvian Sugar" (LE, Feb. 1848)↩
SourceT.184 (1848.02.13) "Antediluvian Sugar" (Le sucre antédiluvien), Le Libre-Échange, 13 Feb. 1848, no. 12 (2nd year), p. 68. [OC2, pp. 446-51.] [CW3 - ES3.19]
XIX. Antediluvian Sugar [13 February 1848] (final draft)↩
Publishing history- Original title, place and date of publication: "Le sucre antédiluvien" (Antediluvian Sugar) [13 February 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. 446-51.
- Previous translation: [none]
People think that sugar is a modern invention; that is a mistake. The art of making it may have been lost in the flood,702 703 but it was known before this catastrophe, as is proved by a curious historical document found in the caves of Karnak and whose translation we owe to a learned multi-linguist, the illustrious Cardinal Mezzofante.704 We reproduce here this interesting document, which also confirms this saying of Solomon: there is nothing new under the sun.
"In those days, between the 42nd and 52nd parallel, there was a great and rich nation, powerful and of lively and courageous disposition, numbering more than 36 million inhabitants, all of whom loved sugar.705 The name of this nation has been lost, so we will call them the Welches.706
Since their climate did not allow saccharum officinarum707 to be grown, the Welches were completely at a loss at first.
However, they thought up a very strange expedient, which had just one drawback, namely its essentially theoretical, that is to say, rational, character.
Because they could not create sugar naturally, they worked out a way of creating its value.
That is to say, they made wine, silk, woolen cloth, canvas and other goods, which they sent to the other hemisphere in order to receive sugar in exchange.
An immense number of traders, ship owners, ships and sailors were employed to carry out these transactions.
First of all, the Welches simply thought they had found the simplest method of obtaining sugar in their situation. Since they were able to choose from more than half the globe the place where the they could get the most sugar for the least amount of wine or cloth, they said to themselves: "Truly, if we made sugar ourselves we would not get one tenth for the same amount of work!"
This was too simple for the Welches, as a matter of fact and so it could not last.
One day, a great Statesman (an unemployed admiral) gave them this terrible thought: "If ever we have a maritime war, how will we manage to collect our sugar?"
This judicious thought troubled people and this is what they thought of doing.
They set themselves the task of seizing a small scrap of land in the other hemisphere where they feared trade might be interrupted, saying: "Let us own this tiny spot and our supply of sugar is assured."
Thus, to guard against a possible war, they started a real one that lasted a hundred years. It was finally ended with a treaty that gave the Welches possession of the scrap of land they wanted, to which the name Saccharique was given.708
They imposed new taxes on themselves to pay for the cost of the war, and then more new taxes to organize a powerful navy in order to retain the scrap of land.
Having done this, there was the question of taking advantage of the precious conquest.
This tiny corner of the antipodes was not favorable to agriculture. It needed protection. The decision was taken that commerce with half of the globe would henceforward be forbidden to the Welches and that not a single one of them could suck a lump of sugar that did not come from the scrap of land in question.
Having arranged everything, both taxes and restrictions, in this fashion, they rubbed their hands saying: "This is not how it is supposed to work in the theory."
Even so, a few Welches crossed the Ocean and went to Saccharique to grow sugar cane, but as it turned out they could not bear to work in this debilitating climate. People then went to another part of the world and, once they had kidnapped some men whose skins were completely black, they transported them to their small island, and there forced them with heavy blows of the whip to cultivate it.
In spite of this forceful expedient, the tiny island was unable to provide even an eighth part of the sugar required by the Welche nation. The price rose, as always happens when ten people seek something that is enough only for one. The richest of the Welches were the only ones to be able to obtain sugar.
The high price of sugar had another effect. It encouraged the Saccharique planters to go and abduct a greater number of black men in order to subjugate them with more heavy blows of the whip, to grow sugar cane even on the sand and the most arid of the rocks. This led to the never before observed sight of the inhabitants of a country doing nothing directly to procure their sustenance and clothing, and working uniquely for export.
And the Welches said: "It is marvelous to see how work is developing on our island in the antipodes."
However, as time went on, the poorest of them started to grumble in these terms:
"What have we done? Sugar is no longer within our reach. What is more, we are no longer making the wine, silk and cloth that was distributed over an entire hemisphere. Our trade is reduced to what a tiny rock is able to produce and receive. Our merchant navy is in dire straits and we are burdened with taxes."
But they were given this correct answer: "Is it not glorious for you to have a possession in the antipodes? As for the wine, drink it. As for the cotton and woolen cloth, you will have make do with the issuing of special manufacturing licences. And as for the taxes, nothing has been lost since the money which leaves your pockets goes into ours."
On occasion, these same dreamers asked: "What use is this great navy?" They were given this answer: "To retain the colony." And if they persisted, saying: "What use is the colony? The reply came without hesitation: "To preserve the navy."
In this way, the poor Utopians709 were beaten on all fronts.
This situation, which was already highly complicated, was made more so by an unforeseen event.
The Statesmen of the Welches' country, relying on the fact that the advantage of having a colony entailed great expenditure, considered that in all justice, this expenditure should, at least in part, be borne by those who ate sugar. Consequently, they imposed a heavy tax on sugar.
With the result that sugar, which was already very expensive, became even more by the full amount of the tax.710
Well, although the Welches' country was not suited to the growing of sugar cane and since there is nothing that cannot be done if sufficient work and capital is devoted to it, chemists, lured by the high prices, began to look for sugar everywhere, in the ground, in water, in the air, in milk, in grapes, in carrots, in corn and in pumpkins, and they looked so diligently that the ended by finding a little in a modest vegetable, in a plant that hitherto had been considered so insignificant that it had been given the doubly humiliating name: Beta vulgaris.711
Sugar was therefore made in the Welches' country, and this industry, hampered by nature but supported by the intelligence of free workers, and above all by the artificially high price, made rapid progress.
Good heavens! Who could tell the tale of the confusion that this discovery injected into the economic situation of the Welches? In a short time, it jeopardized everything at once, the highly expensive production of sugar in the tiny island in the antipodes, what remained of the merchant navy occupied with the trade from this island, and even the navy itself, which can recruit sailors only from the merchant navy.
In view of this unexpected upheaval, all the Welches set about finding a reasonable solution.
Some said: "Let us gradually revert to the state of affairs that was established naturally before absurd ideas and arrangements threw us into this confusion. As in the old days, let us make sugar in the form of wine, silk and cloth, or rather, let those who wish to have sugar create value for it in whatever form is agreeable to them. Then we will have trade with an entire hemisphere; our merchant navy will regenerate and our navy will as well, if need be. Free labor being essentially progressive will outdo slave labor, which is essentially stagnant. Slavery will die away of its own accord712 without its being necessary for nations to have highly dangerous policies toward each other.713 Labor and capital will take the most advantageous direction everywhere. Doubtless, during the transitional period, some people's interests will be ruffled. We will help them as much as we can. But when we have gone down the wrong road for so long, it is childish to refuse to join the right road because it will cause some discomfort."
The people who spoke thus were labeled innovators, ideologists, metaphysicians, visionaries, traitors and disturbers of the public peace.
The Statesmen said: "It is unworthy of us to seek to escape an artificial situation by returning to a natural one. We are not great men for nothing. The height of art is to manage everything without causing any fuss or bother. Let us not tinker with slavery, that would be dangerous, nor with beet sugar, that would be unjust. Let us not allow free trade with all of the other hemisphere, which would be the death of our colony. Let us not abandon the colony, that would be the death of our navy, and let us not remain in the status quo, as that would be the death of everyone's interests."
These men acquired a great reputation as moderate and practical men. It was said of them: "Here are skillful administrators who know how to take account of all forms of difficulty."
Such was the situation that, while people sought a change that would change nothing, things went from bad to worse, until the supreme solution occurred, a flood that, by engulfing them, solved this question and a great many others.
Endnotes702 "Antediluvian" (or pre-diluvian) refers to the period in Biblical accounts between the creation of the earth and the flood (deluge) at the time of Noah and his Ark.
703 Bastiat was right when he predicted in the closing line of this article that it would take the "flood" of revolution to finally destroy the institution of slavery in France. Note that this article was published on 13 February only 9 days before the 1848 Revolution broke out on 22-24 February. As a newly elected Deputy to the Constituent Bastiat would have been able to vote for the law signed by Victor Schoelcher the under-secretary for the Navy and Colonies on 27 April 1848 abolishing slavery. This was the second time slavery had been "abolished" in France. It was first abolished in the 1790s when a slave revolt broke out in Haiti but it was reintroduced by Napoleon when he became First Consul. See the glossary entry on "Slavery in France" and the Appendix on "Bastiat's Activities in the National Assembly, 1848-1850."
704 The historical document Bastiat refers to is fictitious. Karnak was a temple complex in Egypt near Luxor. Cardinal Mezzofanti (1774-1849) was a gifted linguist who became professor of Oriental languages at the University of Bologna.
705 This is of course a description of France: the city of Calais in the north is latitude 51 degrees north, the city of Marseille in the south is latitude 43 degrees north, and Mugron where Bastiat lived is also latitude 43 degrees north. The population of France in the late 1840s was about 36 million people.
706 The name "Welches" is a made up name but may have some reference to the German word "welsch" a derogative word for foreigner.
707 "Saccharum officinarum" is Latin for sugar cane.
708 "Saccharique" is a made up name based upon "saccharum" (the Latin for sugar) and "Martinique" which was the name of the French sugar colony in the Caribbean. It began producing sugar in earnest with African slave labor in the 1670s. By 1700 there were about 15,000 slaves in Martinique. Slavery was abolished on 27 April 1848 when Victor Schoelcher the under-secretary for the Navy and Colonies signed the decree. At that time there were about 73,000 slaves out of a total population of 120,000.
709 See the glossary entry on "Utopias."
710 According to the Budget for 1848 the French state raised fr. 38.5 million by taxing French colonial sugar and another fr. 11.3 million by taxing other foreign produced sugar. There was also a tax of fr. 20.8 million on domestically produced sugar from sugar beets. See the Appendix on "French Government Finances in 1848-49."See the glossary entry on "French Taxes."
711 "Beta vulgaris" is the Latin name for the common beet or sugar beet ("betterave" in French).
712 The French classical liberal economists like Bastiat were fascinated by the institution of slavery because it was a violation of their deeply held views about natural rights and individual liberty and also because it was a glaring example of how a powerful vested interest could use the power of the state to their own advantage, especially the use of tariffs to protect the colonial sugar industry. He would most certainly have voted for its abolition when a bill was presented by Victor Schoelcher, the under-secretary for the Navy and Colonies, on 27 April 1848 abolishing slavery in French colonies. One of the Economists most interested in the question of slavery was Gustave de Molinari (1819-1912) who wrote a useful summary of their thinking on the topic in the article "Esclavage," DEP, vol. 1, pp. 712-31. See the glossary entries on "Molinari" and "Slavery in France."
713 This is a reference to the much hated policy of the British Navy, the Right of Inspection, to board, search, and even seize foreign vessels on the high seas which they believed were carrying slaves. This was a bone of contention between Britain and France throughout the Restoration and July Monarchy.
T.185 (1848.02.20) "Monita secreta" (LE, Feb. 1848)↩
SourceT.185 (1848.02.20) "Monita secreta" (Monita secreta), Le Libre-Échange, 20 Feb. 1848, no. 13 (2nd year), pp. 75-76. [OC2, pp. 452-58.] [CW3 - ES3.20]
XX. Monita Secreta: The Secret Book of Instructions [20 February 1848] (final draft)↩
Publishing history- Original title, place and date of publication: [Paillottet gives no details but presumably it appeared in Le Libre-Échange, 20 February, 1848 as "Monita secreta" (The Secret Book)]
- 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. 452-58.
- Previous translation: [none]
A great number of Catalan protectionist electors drew up for their deputy a sort of Notebook, a copy of which we have received.714 Here are some rather curious excerpts from it.
Never forget that your mission is to maintain and extend our privileges. You are a Catalan first and a Spaniard second.
The minister will promise you one favor in return for another. He will tell you: "Vote for the laws that suit me and I will then extend your monopolies." Do not be taken in by this trap, and tell him: "Extend our monopolies first and I will then vote for your laws."
Do not sit on the left, on the right or in the center. When you give your allegiance to a government, you do not obtain very much, and when you systematically oppose it you obtain nothing. Take your seat on the center left or the center right. The intermediate places are the best. Experience has shown this. There, you are to be feared by the black balls and you are courted by the white balls715.
Read deeply into the mind of the minister and also into that of the leader of the party that aspires to replace him. If one is restrictionist through necessity and the other by instinct, push for a change of cabinet. The new occupant will give you two guarantees instead of one.
It is not likely that the minister will ever ask you for sacrifices through a love of justice, freedom or equality, but he may be led to doing this by the requirements of the Treasury. It may happen that one day he says to you: "I cannot hold out any longer. The balance of my budget has been broken. I have to allow French products to enter to generate an opportunity to raise taxes."
Be ready for this eventuality, which is the most threatening, and even the only threatening one at this time. You have to have two strings to your bow. Get along with your co-restrictionists in the center and threaten to have a large battalion of your supporters move over to the left. The minister will resort to a loan in terror, and we will gain one year or perhaps two; the interest payments will fall on the people.
If the minister nevertheless insists, have another tax to suggest to him, for example, a tax on wine. Tell him that wine is the taxable commodity par excellence. That is true, since wine producers are easy-going taxpayers par excellence.716
Above all, do not, through ill-advised zeal, get it into your head to try to ward off the move by making reference to the slightest reduction in expenditure. You will alienate all present and future ministers and in addition all the journalists, which is extremely serious.
You may well talk about economies in general, which will make you popular. Keep strictly to these. That will be enough for the electors.
We have just mentioned journalists. You know that the press is the fourth power in the State and we might say the leading one. Your diplomacy in dealing with it cannot be too great.
If by chance you came across a journalist who is willing to write on a topic for money, pay him to write on ours. This is a very expeditious means. But it would be even better to buy silence; that costs less and is certainly more prudent. When you have reason and justice against you the safest thing is to stifle discussion.
As for the theoretical positions you will have to support, this is the golden rule:
If there are two ways of producing something, if one of these is expensive and the other economical, impose a heavy tax on the economical method to the advantage of the expensive method. For example, if with sixty days' work devoted to producing wool, the Spanish can import from France ten varas (about 33 inches) of woolen cloth while it would take them a hundred days' work to obtain the same ten varas of woolen cloth if they made it themselves, then encourage the second option at the expense of the first. You cannot imagine the advantages that will result from this.
First of all, everyone who uses the expensive method will be grateful and devoted to you. You will receive strong support from this quarter.
Then, as the more economic method gradually disappears from the country and the expensive method constantly spreads, you will see an increase in the number of your partisans and the number of your opponents will decrease.
Finally, since a more expensive method implies more work, all the workers and philanthropists will be on your side. Indeed, it will be easy for you to show how the work would be affected if the more economic method were allowed to revive.
Keep to this superficial appearance and do not allow people to go into the subject in depth, for what would the result be?
What would happen is that certain minds that are too keen on investigation would soon discover the deception.717 They would see that if the production of ten varas of woolen cloth takes one hundred days' work, there are sixty days less that are devoted to the production of wool in return for which people used to receive ten varas of French woolen cloth.
Do not argue about this initial compensation; it is too clear and you will be defeated. Just continue to show the other forty days that are spent on activity using the expensive method.
People will then answer you: "If we had kept to the more economic method, the capital which has been diverted to the direct production of woolen cloth would have been available in the country; it would have produced things that were useful and would have given work to the forty workers that you claim to have rescued from idleness. And as for the products of their work, they would have been purchased precisely by the consumers of woolen cloth since, as they obtained French woolen cloth cheaper, an amount of remuneration that was enough to pay forty workers would also have remained available in their hands."
Do not be led into these subtleties. Call all those who reason in this way dreamers, ideologists, Utopians718 and economists.
Never lose sight of the following notion; at the present time the public does not push the investigation this far. The surest way of opening their eyes is to discuss it. On your side you have appearances; keep to them and laugh at the rest.
It might happen that one fine day the workers will open their eyes and say:
"Since you force products to be expensive by recourse to the law, you ought also, in order to be fair, to force wages to be expensive by recourse to the law."
Let the argument drop for as long as you can. When you can no longer remain silent, answer: "The high price of products encourages us to make more of them, and in order to do this we need more workers. This increase in the demand for labor raises your wages and in this way, indirectly, our privileges extend to you by the ricochet or flow on effect.719"
Workers will perhaps then answer you: "This would be true if the excess production stimulated by high prices was achieved with capital that had fallen from the moon. But if all that you can do is to take it from other sectors of industry, there will be no increase in wages, since there has been no increase in capital. We now, accordingly, have to pay more for the things we need and your ricochet or flow on effect is a trick."
At this point, take a great deal of trouble to explain and confuse the mechanism of the ricochet effect.
Workers may insist and say to you:
"Since you have so much confidence in these ricochet or flow on effects, let us change our roles. Do not protect products any more but protect wages. Set them by law at a high rate. All the proletarians720 will become wealthy; they will purchase a great many of your products and you will become wealthy by the ricochet or flow on effect."721
We have put words into the mouth of a worker in order to show you how dangerous it is to go deeply into questions. This is what you should take care to avoid. Fortunately, as workers work from morning to night, they do not have much time to think. Take advantage of this; arouse their emotions; rail against foreigners, competition, freedom and capital, in order to divert their attention from the subject of privilege.
Attack the professors of political economy with vigor at every opportunity. If there is one point on which they do not agree, conclude that the things on which they do agree should be rejected.
Here is the syllogism that you may use:
"Economists agree that men should be equal before the law,
But they do not agree on the theory of rent,722
Therefore they do not agree on every point,
Therefore it is not certain that they are right when they say that men should be equal before the law,
Therefore laws ought to create privileges for us at the expense of our fellow citizens."
This line of reasoning will have a very good effect.
There is another method of argument that you may use with great success.
Observe what is happening around the world, and if any distressing accident occurs, say: "See what freedom does."
If then Madrid is burnt down and if, in order to rebuild it at a lower cost, wood and iron are allowed in from abroad, attribute the fire, or at least all the effects of the fire, to this freedom.
A certain nation has ploughed, fertilized, harrowed, sowed and hoed its entire territory. When they are about to reap the harvest, it is carried away by a blight; this nation is thus put into the situation of either dying of hunger or importing foodstuffs from abroad.723 If it takes the latter alternative, and it certainly will take it, its regular activities will be greatly disturbed, that is certain; it will experience a crisis, both in production and finance. Be careful to hide the fact that in the long run this is better than dying of starvation, and say: "If this nation had not had the freedom to import foodstuffs from abroad, it would not have been subjected to a crisis in production and finance." (See numbers 21 and 30)724
We can assure you from experience that this line of reasoning will bring you great good fortune.
Occasionally, principles are invoked. Make fun of principles, ridicule principles, and scoff at principles. This will have a good effect on a skeptical nation.
You will be seen to be a practical man and will inspire great confidence.
What is more, you will lead the legislature in each particular case to call into question all truths, which will save us a lot of time. Think of where astronomy would be if the theorem: The three angles of a triangle are equal to two right angles had not been accepted, after it was demonstrated once and for all, and if it were necessary to prove it on each occasion. It would be never-ending.
In the same way, if your opponents prove that all restrictions result in two losses for one profit,725 demand that they redo the demonstration for each particular case and say boldly that in political economy there are no absolute truths. 726 727
Benefit from the huge advantage of dealing with a nation that thinks that nothing is either true or false.
Always retain your current position with regard to our opponents.
What are we asking for? Privileges.
What are they asking for? Liberty.
They do not want to usurp our rights, they are content to defend theirs.
Fortunately, in their impatient ardor they are sufficiently poor tacticians to look for proof. Allow them to do this.728 They will thus impose on themselves the role that is due to us. Pretend to believe that they are putting forward a new system that is strange, complicated and hazardous and that the onus probandi (onus of proof) lies with them. Say that you, on the contrary, are not putting forward either a theory or a system. You will be relieved of having to prove anything. All moderate men will give you their support.
Endnotes714 Again, this has been invented by Bastiat for the purposes of telling this tale. The historical "Monita secreta" was a 17th century forgery which was supposed to be a secret book of instructions for Jesuits to follow in order to increase their power and influence in society. Bastiat here creates another "secret book of instructions" for protectionists to use in order to increase their power and influence.
715 An allusion to the black and white balls (representing a vote of yea or nay) which the deputies dropped into an urn for voting on bills before the Chamber.
716 According to the Budget for 1848 the French state raised fr. 103.6 million by taxing alcohol. See the Appendix on "French Government Finances in 1848-49." See the glossary entry on "French Taxes."
717 Here Bastiat uses the word "supercherie" (deception, or deceit). 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."
718 See the glossary entry on "Utopias."
719 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."
720 This is only the second time before the February Revolution of 1848 that Bastiat used the socialist term "prolétaires" (proletarians) or "prolétariat" (the proletariat). The first use occurred in ES1 XII. "Does Protection increase the Rate of Pay?" (c. 1845) in which Bastiat addresses "the workers"; the second occurred in ES3 XVIII. "Monita secreta" which was published on 20 February (the Revolution broke out on 23 February). Before this time he normally used the word "les ouvriers" (workers) so it seems the vocabulary of political debate was changing on the eve of the Revolution. After the Revolution he used the word proletarian or proletariat several times: in ES3 XXII "Disastrous Illusions" (15 March 1848, JDE); "Justice and Fraternity" (15 June 1848, JDE) [in CW, vol. 2 , pp. 60-81]; "Property and Plunder" (24 July 1848, JDD) [in CW, vol. 2, pp. 147-84]; "Protection and Communism" (January 1849) [in CW, vol. 2, pp. 235-65]; "Plunder and Law" (15 May 1850, JDE) [in CW, vol. 2, pp. 266-76]; and in two letters written on 9 September and 9 December 1850.
721 (Paillottet's note) See the pamphlet Plunder and the law in vol. 2.
722 The topic of rent was especially sensitive for Bastiat as he believed one of his major theoretical innovations was a rethinking of the classical Smithian and Ricardo notion of rent. He published some essays on the topic as he was writing Economic Harmonies and these provoked some harsh criticism when they were discussed at the monthly meetings of the Political Economy Society. Most of the Economists rejected his idea that there was noting special about rent, that there was nothing particularly productive about land to merit its special treatment as a source of income. He believed that all income, including rent from land, was the result of the voluntary exchange of "service for service." See the glossary entry on "The Political Economy Society."
723 Crop failures in 1846, especially in Ireland with the spread of the potato blight, caused 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. See the glossary entry on "The Irish Famine."
724 Paillottet note. [Paillottet references OC, vol. 2 Le Libre-Échange, 21. "Sur l'exportation du numéraire" (11 December 1847), pp. 112-16; 30. "La liberté a donné´du pain au peuple anglais" (1 January 1848), pp. 168-70.
725 This is another way of stating 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 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."
726 See ES1 XVIII "There are no Absolute Principles," above pp. ???
727 (Paillottet's note) <TBK> See numbers 57 and 58 above on pages 377 and 384, pages 79, 86 and 94 in Tome IV. and chapters XIII, XIV and XVIII of the first series of the Sophisms. .
728 Bastiat uses the phrase "laissez-les faire" which is an ironic thing for the protectionist to say. See the glossary entry on "Laissez-faire."