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Second　Book

The　Theory

Chapter　11

Political　and　Cosmopolitical　Economy

　　　　Before　Quesnay　and　the　French　economists　there　existed　only　a

practice　of　political　economy　which　was　exercised　by　the　State

officials；　administrators；　and　authors　who　wrote　about　matters　of

administration；　occupied　themselves　exclusively　with　the

agriculture；　manufactures；　commerce；　and　navigation　of　those

countries　to　which　they　belonged；　without　analysing　the　causes　of

wealth；　or　taking　at　all　into　consideration　the　interests　of　the

whole　human　race。

　　　　Quesnay　（from　whom　the　idea　of　universal　free　trade　originated）

was　the　first　who　extended　his　investigations　to　the　whole　human

race；　without　taking　into　consideration　the　idea　of　the　nation。　He

calls　his　work　'Physiocratie；　ou　du　Gouvernement　le　plus　avantageux

au　Genre　Humain；'　his　demands　being　that　we　must　imagine　that　the

merchants　of　all　nations　formed　one　commercial　republic。　Quesnay

undoubtedly　speaks　of　cosmopolitical　economy；　i。e。　of　that　science

which　teaches　how　the　entire　human　race　may　attain　prosperity；　in

opposition　to　political　economy；　or　that　science　which　limits　its

teaching　to　the　inquiry　how　a　given　nation　can　obtain　（under　the

existing　conditions　of　the　world）　prosperity；　civilisation；　and

power；　by　means　of　agriculture；　industry；　and　commerce。

　　　　Adam　Smith（1*）　treats　his　doctrine　in　a　similarly　extended

sense；　by　making　it　his　task　to　indicate　the　cosmopolitical　idea　of

the　absolute　freedom　of　the　commerce　of　the　whole　world　in　spite　of

the　gross　mistakes　made　by　the　physiocrates　against　the　very　nature

of　things　and　against　logic。　Adam　Smith　concerned　himself　as　little

as　Quesnay　did　with　true　political　economy；　i。e。　that　policy　which

each　separate　nation　had　to　obey　in　order　to　make　progress　in　its

economical　conditions。　He　entitles　his　work；　'The　Nature　and　Causes

of　the　Wealth　of　Nations'　（i。e。　of　all　nations　of　the　whole　human

race）。　He　speaks　of　the　various　systems　of　Political　economy　in　a

separate　part　of　his　work　solely　for　the　purpose　of　demonstrating

their　non…efficiency；　and　of　proving　that　'political'　or　national

economy　must　be　replaced　by　'cosmopolitical　or　world…wide　economy。'

Although　here　and　there　he　speaks　of　wars；　this　only　occurs

incidentally。　The　idea　of　a　perpetual　state　of　peace　forms　the

foundation　of　all　his　arguments。　Moreover；　according　to　the

explicit　remarks　of　his　biographer；　Dugald　Stewart；　his

investigations　from　the　commencement　are　based　upon　the　principle

that　'most　of　the　State　regulations　for　the　promotion　of　public

prosperity　are　unnecessary；　and　a　nation　in　order　to　be　transformed

from　the　lowest　state　of　barbarism　into　a　state　of　the　highest

possible　prosperity　needs　nothing　but　bearable　taxation；　fair

administration　of　justice；　and　peace。'　Adam　Smith　naturally

understood　under　the　word　'peace'　the　'perpetual　universal　peace'

of　the　Abb椤t。　Pierre。

　　　　J。　B。　Say　openly　demands　that　we　should　imagine　the　existence

of　a　universal　republic　in　order　to　comprehend　the　idea　of　general

free　trade。　This　writer；　whose　efforts　were　mainly　restricted　to

the　formation　of　a　system　out　of　the　materials　which　Adam　Smith　had

brought　to　light；　says　explicitly　in　the　sixth　volume　（p。　288）　of

his　'Economie　politique　pratique'。　'We　may　take　into　our

consideration　the　economical　interests　of　the　family　with　the

father　at　its　head；　the　principles　and　observations　referring

thereto　will　constitute　private　economy。　Those　principles；　however；

which　have　reference　to　the　interests　of　whole　nations；　whether　in

themselves　or　in　relation　to　other　nations；　form　public　economy

（l'閏onomie　publique）。　Political　economy；　lastly；　relates　to　the

interests　of　all　nations；　to　human　society　in　general。'

　　　　It　must　be　remarked　here；　that　in　the　first　place　Say

recognises　the　existence　of　a　national　economy　or　political

economy；　under　the　name　'閏onomie　publique；'　but　that　he　nowhere

treats　of　the　latter　in　his　works；　secondly；　that　he　attributes　the

name　political　economy　to　a　doctrine　which　is　evidently　of

cosmopolitical　nature；　and　that　in　this　doctrine　he　invariably

merely　speaks　of　an　economy　which　has　for　its　sole　object　the

interests　of　the　whole　human　society；　without　regard　to　the

separate　interests　of　distinct　nations。

　　　　This　substitution　of　terms　might　be　passed　over　if　Say；　after

having　explained　what　he　calls　political　economy　（which；　however；

is　nothing　else　but　cosmopolitical　or　world…wide　economy；　or

economy　of　the　whole　human　race）；　had　acquainted　us　with　the

principles　of　the　doctrine　which　he　calls　'閏onomie　publique；'

which　however　is；　properly　speaking；　nothing　else　but　the　economy

of　given　nations；　or　true　political　economy。

　　　　In　defining　and　developing　this　doctrine　he　could　scarcely

forbear　to　proceed　from　the　idea　and　the　nature　of　the　nation；　and

to　show　what　material　modifications　the　'economy　of　the　whole　human

race'　must　undergo　by　the　fact　that　at　present　that　race　is　still

separated　into　distinct　nationalities　each　held　together　by　common

powers　and　interests；　and　distinct　from　other　societies　of　the　same

kind　which　in　the　exercise　of　their　natural　liberty　are　opposed　to

one　another。　However；　by　giving　his　cosmopolitical　economy　the　name

political；　he　dispenses　with　this　explanation；　effects　by　means　of

a　transposition　of　terms　also　a　transposition　of　meaning；　and

thereby　masks　a　series　of　the　gravest　theoretical　errors。

　　　　All　later　writers　have　participated　in　this　error。　Sismondi

also　calls　political　economy　explicitly　'La　science　qui　se　charge

du　bonheur　de　l'esp鑓e　humaine。'　Adam　Smith　and　his　followers　teach

us　from　this　mainly　nothing　more　than　what　Quesnay　and　his

followers　had　taught　us　already；　for　the　article　of　the　'Revue

M閠hodique'　treating　of　the　physiocratic　school　states；　in　almost

the　same　words：　'The　well…being　of　the　individual　is　dependent

altogether　on　the　well…being　of　the　whole　human　race。'

　　　　The　first　of　the　North　American　advocates　of　free　trade；　as

understood　by　Adam　Smith　　Thomas　Cooper；　President　of　Columbia

College　　denies　even　the　existence　of　nationality；　he　calls　the

nation　'a　grammatical　invention；'　created　only　to　save　periphrases；

a　nonentity；　which　has　no　actual　existence　save　in　the　heads　of

politicians。　Cooper　is　moreover　perfectly　consistent　with　respect

to　this；　in　fact　much　more　consistent　than　his　predecessors　and

instructors；　for　it　is　evident　that　as　soon　as　the　existence　of

nations　with　their　distinct　nature　and　in

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