AFrenchwriterwhodealtwiththequestionofmoney，butfromadifferentpointofview，wasJeanBodin。InhisRéponse
auxparadoxesdeM。Malestroittouchantl’enchérissementdetoutesleschosesetdesmonnaies，1568，andinhisDiscours
surlerehaussementetladiminutiondesmonnaies，1578，heshowedamorerationalappreciationthanmanyofhis
contemporariesofthecausesoftherevolutioninprices，andtherelationofthevariationsinmoneytothemarketvaluesof
waresingeneralaswellastothewagesoflabour。Hesawthattheamountofmoneyincirculationdidnotconstitutethe
wealthofthecommunity，andthattheprohibitionoftheexportofthepreciousmetalswasuseless，becauserendered
inoperativebythenecessitiesoftrade。Bodinisnoinconsiderablefigureintheliteraryhistoryoftheepoch，anddidnot
confinehisattentiontoeconomicproblems;inhisSixlivresdelaRépublique，about1576，hestudiesthegeneralconditions
oftheprosperityandstabilityofstates。Inharmonywiththeconditionsofhisage，heapprovesofabsoluteGovernmentsas
themostcompetenttoensurethesecurityandwell—beingoftheirsubjects。Heentersintoanelaboratedefenceofindividual
propertyagainstPlatoandMore，ratherperhapsbecausetheschemeofhisworkrequiredthetreatmentofthatthemethan
becauseitwaspracticallyurgentinhisday，whentheexcessesoftheAnabaptistshadproducedastrongfeelingagainst
communisticdoctrines。Heisunderthegeneralinfluenceofthemercantilistviews，andapprovesofenergeticGovernmental
interferenceinindustrialmatters，ofhightaxesonforeignmanufacturesandlowdutiesonrawmaterialsandarticlesoffood，
andattachesgreatimportancetoadensepopulation。Butheisnotablindfollowerofthesystem;hewishesforunlimited
freedomoftradeinmanycases;andheisinadvanceofhismoreeminentcontemporaryMontaigne（7）inperceivingthatthe
gainofonenationisnotnecessarilythelossofanother。Tothepublicfinances，whichhecallsthesinewsoftheState，he
devotesmuchattention，andinsistsonthedutiesoftheGovernmentinrespecttotherightadjustmentoftaxation。Ingeneral
hedeservesthepraiseofsteadilykeepinginviewthehigheraimsandinterestsofsocietyinconnectionwiththeregulation
anddevelopmentofitsmateriallife。（8）
CorrectviewsastothecauseofthegeneralriseofpricesarealsoputforwardbytheEnglishwriter，W。S。（William
Stafford），inhisBriefeConceipteofEnglishPolicy，publishedin1581，anddedicatedtoQueenElizabeth。Itisintheform
ofadialogue，andiswrittenwithlivelinessandspirit。TheauthorseemstohavebeenacquaintedwiththewritingsofBodin。
Hehasjustideasastothenatureofmoney，andfullyunderstandstheevilsarisingfromadebasedcoinage。Hedescribesin
detailthewayinwhichtheseveralinterestsinthecountryhadbeenaffectedbysuchdebasementinpreviousreigns，aswell
asbythechangeinthevalueofthepreciousmetals。Thegreatpopulargrievanceofhisday，theconversionofarableland
intopasture，heattributeschieflytotherestrictionsontheexportofcorn，whichhedesirestoseeabolished。Butinregardto
manufacturesheisatthesamepointofviewwiththelatermercantilists，andproposestheexclusionofallforeignwares
whichmightaswellbeprovidedathome，andtheprohibitionoftheexportofrawmaterialsintendedtobeworkedup
abroad。
Outofthequestionofmoney，too，arosethefirstremarkableGermanproductiononpoliticaleconomywhichhadanoriginal
nationalcharacterandaddressedthepublicinthenativetongue。TheErnestineSaxonlinewasinclined（1530）tointroducea
debasementofthecurrency。Apamphlet，GemeineStymmenvonderMüntze，waspublishedinoppositiontothis
proceeding，undertheauspicesoftheAlbertinebranch，whosepolicywassounderintheeconomicsphere。Areplyappeared
justifyingtheErnestineproject。ThiswasfollowedbyarejoinderfromtheAlbertineside。TheErnestinepamphletis
describedbyRoscherasill—written，obscure，inflated，and，asmightbeexpectedfromthethesisitmaintained，sophistical。
Butitisinterestingascontainingastatementofthefundamentalprinciplesofthemercantilesystemmorethanonehundred
yearsbeforethepublicationofMun’sbook，andforty—sixbeforethatofBodin’sSixlivresdelaRépublique。TheAlbertine
tracts，accordingtoRoscher，exhibitsuchsoundviewsoftheconditionsandevidencesofnationalwealth，ofthenatureof
moneyandtrade，AndoftherightsanddutiesofGovernmentsinrelationtoeconomicaction，thatheregardstheunknown
authorasentitledtoaplacebesideRaleighandtheotherEnglish"colonial—theorists"oftheendofthesixteenthand
beginningoftheseventeenthcentury。
InconnectionwiththesamesubjectofmoneywemeetthegreatnameofCopernicus。HistreatiseDemonetaecudendae
ratione，1526（firstprintedin1816），waswrittenbyorderofKingSigismundI，andisanexpositionoftheprincipleson
whichitwasproposedtoreformthecurrencyofthePrussianprovincesofPoland。Itadvocatesunityofthemonetary
systemthroughouttheentirestate，withstrictintegrityinthequalityofthecoin，andthechargeofaseignioragesufficientto
covertheexpensesofmintage。
AntonioSerraisregardedbysomeasthecreatorofmodernpoliticaleconomy。HewasanativeofCosenzainCalabria。HisBreveTrattatodellecausechepossonofareabbondareliregnid’oroed’argentodovenonsonominiere，1613，was
writtenduringhisimprisonment，whichisbelievedtohavebeenduetohishavingtakenpartintheconspiracyofCampanella
fortheliberationofNaplesfromtheSpanishyokeandtheestablishmentofarepublicanGovernment。Thiswork，long
overlooked，wasbroughtintonoticeinthefollowingcenturybyGalianiandothers。Itstitlealonewouldsufficientlyindicate
thattheauthorhadadoptedtheprinciplesofthemercantilesystem，andinfactinthistreatisetheessentialdoctrinesofthat
systemareexpoundedinatolerablyformalandconsecutivemanner。Hestronglyinsistsonthesuperiorityofmanufactures
overagricultureasasourceofnationalwealth，andusesinsupportofthisviewtheprosperityofGenoa，Florence，and
Venice，ascontrastedwiththedepressedconditionofNaples。Withlargerinsightthanmanyofthemercantilistsexhibit，he
insistsontheimportance，towardstheacquisitionofwealth，notaloneoffavourableexternalconditions，butofenergetic
characterandindustrioushabitsinapopulation，aswellasofastablegovernmentandagoodadministrationofthelaws。
ThefirstsystematictreatiseonoursciencewhichproceededfromaFrenchauthorwastheTraitédel’ÉconomiePolitique，
publishedbyMontchrétiendeWatteville（orVasteville）（9）in1615。Theuseofthetitle，saysRoscher，nowforthefirsttime
giventothescience，wasinitselfanimportantservice，sinceevenBaconunderstoodby"Economia"onlythetheoryof
domesticmanagement。Thegeneraltendenciesandaimsoftheperiodareseeninthefactthatthistreatise，notwithstanding
thecomprehensivenameitbears，doesnotdealwithagricultureatall，butonlywiththemechanicalarts，navigation，
commerce，andpublicfinance。Theauthorisfilledwiththethendominantenthusiasmforforeigntradeandcolonies。He
advocatesthecontrolbyprincesoftheindustryoftheirsubjects，andcondemnsthetoogreatfreedom，which，inhisopinion
totheirowndetriment，theGovernmentsofSpain，Portugal，andHollandhadgiventotrade。Hisbookmayberegardedasa
formalexpositionoftheprinciplesofthemercantilesystemfortheuseofFrenchmen。
AsimilarofficewasperformedinEnglandbyThomasMun。Inhistwoworks，ADiscourseofTradefromEnglanduntothe
EastIndies，2nded。，1621，andespeciallyinEngland’sTreasurebyForeignTrade，1664（posthumous），wehaveforthe
firsttimeaclearandsystematicstatementofthetheoryofthebalanceoftrade，aswellasofthemeansbywhich，according
totheauthor’sview，afavourablebalancecouldbesecuredforEngland。Thegreatobjectoftheeconomicpolicyofastate，
accordingtohim，shouldbesotomanageitsexportofmanufactures，itsdirectandcarryingtrade，anditscustomsduties，as
toattracttoitselfmoneyfromabroad。Hewas，however，opposedtotheprohibitionoftheexportofthepreciousmetalsin
exchangeforforeignwares，butontheground，fullyaccordingwithhisgeneralprinciples，thatthosewaresmightafterwards
bere—exportedandmightthenbringbackmoretreasurethanhadbeenoriginallyexpendedintheirpurchase;thefirstexport
ofmoneymightbe，ashesaid，theseed—time，ofwhichtheultimatereceiptofalargeramountwouldbetheharvest。（10）He
saw，too，thatitisinexpedienttohavetoomuchmoneycirculatinginacountry，asthisenhancesthepricesofcommodities，
andsomakesthemlesssaleabletoforeigners，butheisfavourabletotheformationandmaintenanceofastatetreasure。（11）
OneofthemostremarkableofthemoderatemercantilistswasSirJosiahChild（BriefObservationsconcerningTradeand
theinterestofMoney，1668，andANewDiscourseofTrade，1668and1790）。HewasoneofthosewhoheldupHollandas
amodelfortheimitationofhisfellow—countrymen。Heisstronglyimpressedwiththeimportancefornationalwealthand
well—beingofalowrateofinterest，whichhesaysistocommerceandagriculturewhatthesoulistothebody，andwhichhe
heldtobethe"cauzacausansofalltheothercausesoftherichesoftheDutchpeople。"Insteadofregardingsuchlowrate
asdependentondeterminateconditions，whichshouldbeallowedtoevolvethemselvesspontaneously，hethinksitshouldbe
createdandmaintainedbypublicauthority。Child，whilstadheringtothedoctrineofthebalanceoftrade，observesthata
peoplecannotalwaysselltoforeignerswithouteverbuyingfromthem，anddeniesthattheexportofthepreciousmetalsis
necessarilydetrimental。Hehastheordinarymercantilistpartialityforanumerouspopulation。Headvocatesthereservation
bytheMotherCountryofthesolerightoftradewithhercolonies，and，undercertainlimitations，theformationofprivileged
tradingcompanies。AstotheNavigationAct，hetakesupapositionnotunlikethatafterwardsoccupiedbyAdamSmith，
regardingthatmeasuremuchmorefavourablyfromthepoliticalthanfromtheeconomicpointofview。Itwillbeseenthat
heissomewhateclecticinhisopinions;buthecannotproperlyberegarded，thoughsomehaveattributedtohimthat
character，asaprecursorofthefree—tradeschooloftheeighteenthcentury。
Twoothereclecticsmaybeherementioned，inwhomjustviewsaremingledwithmercantilistprejudices——SirWilliam
TempleandCharlesDavenant。TheformerinhisObservationsupontheUnitedProvinceoftheNetherlands，1672，andhisEssayontheTradeofIreland，1673，hasmanyexcellentremarksonfundamentaleconomicprinciples，asonthefunctionsof
labourandofsavingintheproductionofnationalwealth;butheisinfectedwiththeerrorsofthetheoryofthebalanceof
trade。HefollowstheleadofRaleighandChildinurginghisfellow—countrymentoimitatetheexampleoftheDutchintheir
economicpolicy——advicewhichinhiscasewasfoundedonhisobservationsduringalengthenedresidenceinHollandas
ambassadortotheStates。DavenantinhisEssayontheEastIndiaTrade，1696—97，EssayontheProbableWaysofmaking
thePeopleGainersintheBalanceofTrade，1699，etc。，alsotakesupaneclecticposition，combiningsomecorrectviewson
wealthandmoneywithmercantilistnotionsontrade，andrecommendingGovernmentalrestrictionsoncolonialcommerceas
stronglyasheadvocatesfreedomofexchangeathome。
Whilstthemercantilesystemrepresentedtheprevalentformofeconomicthoughtintheseventeenthcentury，andwasalone
dominantintheregionofpracticalstatesmanship，therewasgrowingup，sidebysidewithit，abodyofopinion，differentand
indeedhostileincharacter，whichwasdestinedultimatelytodriveitfromthefield。Thenewideaswerefirstdevelopedin
England，thoughitwasinFrancethatinthefollowingcenturytheytookholdofthepublicmind，andbecameapowerin
politics。Thattheyshouldfirstshowthemselveshere，andafterwardsbeextended，applied，andpropagatedthroughout
EuropebyFrenchwriters，belongstotheorderofthingsaccordingtowhichthegeneralnegativedoctrineinmoralsand
politics，undoubtedlyofEnglishorigin，founditschiefhomeinFrance，andwasthencediffusedinwideningcirclesthrough
thecivilizedworld。InEnglandthismovementofeconomicthoughttooktheshapemainlyofindividualcriticismofthe
prevalentdoctrines，foundedonatrueranalysisoffactsandconceptions;inFranceitwaspenetratedwithapowerfulsocial
sentiment，furnishedthecreedofaparty，andinspiredaprotestagainstexistinginstitutionsandanurgentdemandfor
practicalreform。
Regardedfromthetheoreticside，thecharacteristicfeaturesofthenewdirectionwerethefollowing。Theviewofatleastthe
extrememercantiliststhatnationalwealthdependsontheaccumulationofthepreciousmetalsisprovedtobefalse，andthe
giftsofnatureandthelabourofmanareshowntobeitsrealsources。Theexaggeratedestimateoftheimportanceofforeign
commerceisreduced，andattentionisoncemoreturnedtoagricultureandtheconditionsofitssuccessfulprosecution。On
thesideofpracticalpolicy，aso—calledfavourablebalanceoftradeisseennottobethetrueobjectofanation’sora
statesman’sefforts，buttheprocuringforthewholepopulationinthefullestmeasuretheenjoymentofthenecessariesand
conveniencesoflife。And——whatmorethananythingelsecontraststhenewsystemwiththeold——theelaborateapparatusof
prohibitions，protectiveduties，bounties，monopolies，andprivilegedcorporations，whichtheEuropeanGovernmentshad
createdinthesupposedinterestsofmanufacturesandtrade，isdenouncedordeprecatedasmoreanimpedimentthana
furtherance，andthefreedomofindustryisinsistedonastheonethingneedful。Thiscircleofideas，ofcourse，emergesonly
gradually，anditsearliestrepresentativesineconomicliteratureingeneralapprehenditimperfectlyandadvocateitwith
reserve;butitrisessteadilyinimportance，beingmoreandmorefavouredbythehighestminds，andfindinganincreasing
bodyofsupportersamongsttheintelligentpublic。
SomeoccasionaltraitsofaneconomicschemeinharmonywiththesenewtendenciesaretobefoundintheDeCiveandLeviathanofHobbes。Buttheefficacyofthatgreatthinkerlayratherinthegeneralphilosophicfield;andbysystematising，
forthefirsttime，thewholenegativedoctrine，hegaveapowerfulimpulsetowardsthedemolitionoftheexistingsocial
order，whichwasdestined，asweshallsee，tohavemomentousconsequencesintheeconomicnolessthaninthestrictly
politicaldepartmentofthings。
Awriterofnosuchextendedrange，butofmuchsagacityandgoodsense，wasSirWilliamPetty，authorofanumberof
piecescontaininggermsofasoundeconomicdoctrine。Aleadingthoughtinhiswritingsisthat"labouristhefatherand
activeprincipleofwealth，landsarethemother。"Hedividesapopulationintotwoclasses，theproductiveandthe
unproductive，accordingastheyareorarenotoccupiedinproducingusefulmaterialthings。Thevalueofanycommodity
depends，hesays，anticipatingRicardo，ontheamountoflabournecessaryforitsproduction。Heisdesirousofobtaininga
universalmeasureofvalue，andchoosesashisunittheaveragefoodofthecheapestkindrequiredforaman’sdaily
sustenance。Heunderstandsthenatureoftherentoflandastheexcessofthepriceofitsproduceoverthecostof
production。Hedisapprovesoftheattempttofixbyauthorityamaximumrateofinterest，andisgenerallyopposedto
Governmentalinterferencewiththecourseofindustry。Heseesthatacountryrequiresforitsexchangesadefinitequantity
ofmoneyandmayhavetoomuchofit，andcondemnstheprohibitionofitsexportation。Heholdsthatoneonlyofthe
preciousmetalsmustbethefoundationofthecurrency，theothercirculatingasanordinaryarticleofmerchandise。Petty’s
nameisspeciallyassociatedwiththeprogressofstatistics，withwhichhewasmuchoccupied，andwhichhecalledbythe
nameofpoliticalarithmetic。Relyingontheresultsofsuchinquiries，hesethimselfstronglyagainsttheopinionwhichwas
maintainedbytheauthorofBritanniaLanguens（1680），Fortrey，RogerCoke，andotherwriters，thattheprosperityof
Englandwasonthedecline。
Themostthoroughgoingandemphaticassertionofthefree—tradedoctrineagainstthesystemofprohibitions，whichhad
gainedstrengthbytheRevolution，wascontainedinSirDudleyNorth’sDiscoursesuponTrade，1691。Heshowsthatwealth
mayexistindependentlyofgoldorsilver，itssourcebeinghumanindustry，appliedeithertothecultivationofthesoilorto
manufactures。Thepreciousmetals，however，areoneelementofnationalwealth，andperformhighlyimportantoffices。
Moneymayexistinexcess，aswellasindefect，inacountry;andthequantityofitrequiredforthepurposesoftradewill
varywithcircumstances;itsebbandflowwillregulatethemselvesspontaneously。Itisamistaketosupposethatstagnation
oftradearisesfromwantofmoney;itmustariseeitherfromaglutofthehomemarket，orfromadisturbanceofforeign
commerce，orfromdiminishedconsumptioncausedbypoverty。Theexportofmoneyinthecourseoftraffic，insteadof
diminishing，increasesthenationalwealth，tradebeingonlyanexchangeofsuperfluities。Nationsareeconomicallyrelatedto
theworldjustinthesamewayascitiestothestateorasfamiliestothecity。Northemphasisesmorethanhispredecessors
thevalueofthehometrade。Withrespecttotheinterestofcapital，hemaintainsthatitdepends，thethepriceofany
commodity，ontheproportionofdemandandsupply，andthatalowrateisaresultoftherelativeincreaseofcapital，and
cannotbebroughtaboutbyarbitraryregulations，ashadbeenproposedbyChildandothers。Inarguingthequestionoffree
trade，heurgesthatindividualsoftentaketheirprivateinterestasthemeasureofgoodandevil，andwouldforitssakedebar
othersfromtheirequalrightofbuyingandselling，butthateveryadvantagegiventooneinterestorbranchoftradeover
anotherisinjurioustothepublic。Notradeisunprofitabletothepublic;ifitwere，itwouldbegivenup;whentradesthrive，
sodoesthepublic，ofwhichtheyformapart。Pricesmustdeterminethemselves，andcannotbefixedbylaw;andallforcible
interferencewiththemdoesharminsteadofgood。Nopeoplecanbecomerichbystateregulations，——onlybypeace，
industry，freedom，andunimpededeconomicactivity。ItwillbeseenhowcloselyNorth’sviewofthingsapproachestothat
embodiedsomeeightyyearslaterinAdamSmith’sgreatwork。（12）
LockeisrepresentedbyRoscheras，alongwithPettyandNorth，makingupthe"triumvirate"ofeminentBritisheconomists
ofthisperiodwholaidthefoundationsofanewandmorerationaldoctrinethanthatofthemercantilists。Butthisviewof
hisclaimsseemscapableofbeingacceptedonlywithconsiderabledeductions。HisspeciallyeconomicwritingsareConsiderationsoftheloweringofInterestandraisingthevalueofMoney，1691，andFurtherConsiderations，1695。
ThoughLeibnitzdeclaredwithrespecttothesetreatisesthatnothingmoresolidorintelligentcouldbesaidontheirsubject，
itisdifficultabsolutelytoadoptthatverdict。Locke’sspiritofsoberobservationandpatientanalysisledhimindeedtosome
justconclusions;andheisentitledtothecreditofhavingenergeticallyresistedthedebasementofthecurrency，whichwas
thenrecommendedbysomewhowereheldtobeeminentpracticalauthorities。Buthefallsintoerrorswhichshowthathe
hadnotbyanymeanscompletelyemancipatedhimselffromtheideasofthemercantilesystem。Heattachesfartoomuch
importancetomoneyassuch。Hesaysexpresslythatrichesconsistinaplentyofgoldandsilver，thatis，asheexplains，in
havingmoreinproportionofthosemetalsthantherestoftheworldorthanourneighbours。"Inacountrynotfurnished
withmines，therearebuttwowaysofgrowingrich，eitherconquestorcommerce。"Henceheacceptsthedoctrineofthe
balanceoftrade。Heshowsthattherateofinterestcannomorebefixedbylawthantherentofhousesorthehireofships，
andopposesChild’sdemandforlegislativeinterferencewithit。Butheerroneouslyattributedthefalloftheratewhichhad
takenplacegenerallyinEuropetotheincreaseofthequantityofgoldandsilverbythediscoveryoftheAmericanmines。He
setstooabsoluteavalueonanumerouspopulation，inthispointagreeingwithPetty。Onwagesheobservesthattherate
mustbesuchastocovertheindispensablewantsofthelabourer;whenthepriceofsubsistencerises，wagesmustriseina
likeratio，ortheworkingpopulationmustcomeonthepoorrates。Thefalloftherentoflandheregardsasasuresignofthe
declineofnationalwealth。"Taxes，howevercontrived，andoutofwhosehandssoeverimmediatelytaken，do，inacountry
wheretheirgreatfundisinland，forthemostpartterminateuponland。"Inthislastpropositionweseeaforeshadowingof
theimpôtuniqueofthephysiocrats。WhatevermayhavebeenLocke’sdirecteconomicservices，hisprincipalimportance，
likethatofHobbes，liesinhisgeneralphilosophicandpoliticalprinciples，whichpowerfullyaffectedFrenchandindeed
Europeanthought，excitingaspiritofoppositiontoarbitrarypower，andlayingthefoundationofthedoctrinedevelopedin
theContratSocial。（13）
NOTES:
1。Comptesrendusdel’AcadémiedesSciencesmoralesetpolitiques，lxii，435，sqq。
2。GeschichtederN。O。inDeutschland，p。25。
3。GeschichtederN。O。inDeutschland，p。228，sqq。
4。Roscher，GeschichtederN。O。inDeutschland，p。227。
5。Clément，Histoiredelavieetdel’administrationdeColbert（1846），p。134。
6。AmorevaluableworkisthatofRomeoBocchi（writtenin1611andpublishedin1621），Dellaguistauniversalemisurae
suotypo:vol。i，AnimadellaMoneta;vol。ii，CorpodellaMoneta，ofwhichafullaccounthasbeengivenbyU。GobbiinhisEconomiaPoliticanegliScrittoriItalianidelSecoloxvi—xvii（1889）。
7。"Ilnesefaictaucunprofitqu’audommaged’autruy。"Essais。liv。I，chap。21。
8。AwriterwhoseliteraryactivitywasofasimilarcharactertoBodin’sandwhoseemstohavebeenmuchinfluencedby
him，wastheItalianGiovanniBotero（1540—1617）。HistreatiseDellecausedellagrandezzadellecitta（1588;Eng。Trans。
byRobertPeterson，1606）wasintroductorytohischiefworkDellaragiondiStato，libriX（1589），inwhichhecombated
theprinciplesofMachiavelli。
9。Montchrétien，havingfomentedtherebellioninNormandyin1621，wasslainwithafewfollowers，byClaudeTurgot，lord
ofLesTourailles，whobelongedtotheelderbranchofthenoblehousefromwhichthegreatTurgotwasdescended。
10。OnMun’sdoctrines，seeSmith’sWealthofNations，Bk。iv。chap。i。
11。WritersoflessimportancewhofollowedthesamedirectionwereSirThomasCulpeper（ATractagainsttheHighRate
ofUsury，1623，andUsefulRemarkonHighInterest1641），SirDudleyDigges（DefenceofTrade，1615），G。Malynes
（ConsuetudevelLexMercatoria，1622）E。Misselden（CircleofCommerce，1623），SamuelFortrey（England’sInterestand
Improvement，1663and1673），andJohnPollexien（EnglandandIndiainconsistentintheirManufacturers，1697）。
12。YetM。EugèneDaireasserts（OeuvresdeTurgot，i，322）that"HumeetTuckersontlesdeuxpremiersécrivainsquise
soinetélevés，enAngleterre，au—dessusdestheéoriesdusystèmemercantile。"
13。MinorEnglishwriterswhofollowedtheneweconomicdirectionwereLewisRoberts，TreasureofTraffick，1641;Rice
Vaughan，DiscourseofCoinandCoinage，16715;NicholasBarbon，DiscourseconcerningCoiningthenewmoneyhigher，
1696，inwhichsomeofLocke’serrorswerepointedout;andtheauthorofananonymousbookentitledConsiderationson
theEastIndiaTrade，1701。Practicalquestionsmuchdebatedatthisperiodwerethoseconnectedwithbanking，onwhicha
lengthenedcontroversytookplace，S。Lamb，W。Potter，F。Cradocke，M。Lewis。M。Godfrey，R。Murray，H。Chamberlain，
andW。Paterson，founderoftheBankofEngland（1694），producingmanypamphletsonthesubject;andthemanagementof
thepoor，whichwastreatedbyLocke，SirMatthewHale，R。Haines，T。Firmin，andothers。
Chapter5
ThirdModernPhase:SystemofNaturalLibertyThechangesintroducedduringthethirdphaseintheinternalorganisationoftheindustrialworldwere（1）themore
completeseparationofbankingfromgeneralcommerce，andthewiderextensionofitsoperations，especiallythroughthe
systemofpubliccredit;and（2）thegreatdevelopmentoftheuseofmachineryinproduction。Thelatterdidnotbecomevery
prominentduringthefirsthalfoftheeighteenthcentury，Whilsttendingtopromotethedignityoftheworkingclassesby
relievingthemfromdegradingandexhaustingformsoflabour，itwidenedthegulfbetweenthemandthecapitalist
employers。Itthusbecameplainthatforthedefinitiveconstitutionofindustryamoralreformwasthenecessarypreliminary
condition。
Withrespecttothepoliticalrelationsofindustry，aremarkableinversionnowshoweditself。Thesystematicencouragements
whichtheEuropeanGovernmentshadextendedtoitintheprecedingphasehadbeenpromptedbytheirdesiretouseitasan
instrumentforachievingthemilitarysuperioritywhichwasthegreatendofthekpolicy。Now，onthecontrary，themilitary
spiritsubordinateditselftotheindustrial，andthearmiesandthediplomacyofGovernmentswereplacedattheserviceof
commerce。ThewarswhichfilledalargepartoftheeighteenthcenturywereessentiallyCommercialwars，arisingoutofthe
efforttosustainorextendthecolonialestablishmentsfoundedinthepreviousphase，ortodepriverivalnationsofthe
industrialadvantagesconnectedwiththepossessionofsuchestablishments。Thischangeofattitude，notwithstandingits
deplorabletendencytofosterinternationalenmitiesandjealousies，markedarealandimportantprogressbypointingto
industrialactivityastheonepermanentpracticaldestinationofmodernsocieties。