And who will hereafter bind his Son to a Merchant?
I answer, The end of Service and giving of Money with Apprentices, I have always understood to be the Learning of the Art or Science of Merchandizing, not the purchasing of an Immunity or Monopoly to the prejudice of our Country; and that it is so, is evident from the practice, there being many general Merchants that are free of no particular Company, who can have as large Sums of Money with Apprentices, as any other that are free of one or more particular Companies of Merchants; and many Merchants that are free of particular Companies, unto whom few will have any considerable sums of Money with Apprentices; the proportion of Money given with Apprentices not following the Company a Merchant is free of, but the condition the Master, as to his more or less reputed skill in his Calling, Thriving or going backward, greater or lesser Trade, well or ill Government of himself and Family, &c.
Obj. 5. If all should be admitted on such easie terms, will not that be manifest Injustice to the Companies of Merchants, who by themselves or Predecessors have been at great Disburstments to purchase Priviledges & Immunities abroad, as the Turkey-Company, and the Hambrough-Company have done.
I answer, That I am yet to learn that any Company of Merchants not trading with a joynt Stock, such as the Turkey, Hambrough, Muscovia and Eastland Companies ever purchased their Priviledges, or built and maintained Forts, Castles or Factories, or made any Wars at their own charge; but I know the Turkey Company do maintain an Embassador and two Consuls, and are sometimes necessitated to make Presents to the Grand Senior,8 or his great Officers; and the Hambrough Company are at some charge to maintain their Deputy, and Minister at Hambrough; and I think it would be great Injustice that any should trade to the places within their Charters, without paying the same Duties or Leviations towards the Companies charge as the present Adventurers do pay, but I know not why any should be barred from trading to those places, or forced to pay a great Fine for admition, that are willing to pay
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the Companies Duties, and submit to the Companies regulation and orders in other respects.
Obj. 6. If all may be admitted as aforesaid, then such numbers of Shop-keepers and others would come into the Society of Merchants, as would by the Majority of Votes so much alter the Governours, Deputy and Assistants of the respective Companies, that Ignorant Persons would come into those ruling places, to the general prejudice of those Trades.
I answer, Those that make this Objection, if they be Merchants, know there is very little in it, for that it is not to be expected that twenty Shop-keepers will come into any one Company in a Year; and therefore can have no considerable influence upon the Elections; but if many more should come in, it would be the better for the Nation, and not the worse for the Company, for that all men are lead by their Interest, and it being the common Interest of all that engage in any Trade, that the Trade should be regulated and governed by wise, honest and able men, there is no doubt but most men will Vote for such as they esteem so to be, which is manifest in the East-India-Company, where neither Gentlemen nor Shopkeepers were at first excluded, neither are they yet kept out; any English-man whatsoever being permitted to come into that Company that will buy an Action, paying only five Pounds to the Company for his admission; and yet undeniable experience hath convinced all Gain-sayers in this matter; that Company, since its having had so large and National a Foundation, having likewise had a succession of much better Governours, Deputies and Assistants then ever it had upon that narrow bottom it stood formerly, when none could be admitted to the freedom of that Company, for less than a Fine of Fifty Pounds; and the success hath been answerable, For the first Company settled upon that narrow limitted Interest, although their Stock was larger, then this, decayed and finally came to ruin and destruction; Whereas on the contrary, this being settled on more rational, and consequently more just, as well as more profitable Principles, hath through Gods Goodness thriven and encreased to the trebling of their first Stock.
What concerns the various companies of Europe is relegated to the commerce of each state. This article is by M. V.D.F.
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COMPETITION, in matters of commerce. This word sets out the idea of several persons aspiring to one preference: thus, when various individuals undertake to sell the same commodity, each one strives to offer it better or at a lower price, to obtain the preference of the buyer.
One immediately sees that competition is the soul and the spur of industry, and the most active principle of commerce.
This competition is either external or internal.
The external competition of a nation’s commerce consists in being able to sell abroad the products of its land and industry in the same quantity as other nations sell theirs—proportional to their respective populations, their capital stock, and the extent and fertility of their lands. The nation that does not sustain this competition in the proportion that we have just discussed will inevitably possess power that is inferior to that of others, because its men are less employed, less rich, less happy, thenceforth relatively fewer—in short, in less of a position, relatively speaking, to support the commonwealth. It cannot be too often repeated: the balance of trade is truly the balance of power.
This external competition is not obtained by force; it is the value of the efforts that human industry makes to grasp the tastes of the consumer, even to predict them and stimulate them.
Internal competition is of two kinds: one, between domestic commodities and foreign commodities of the same nature or the same use; and another type, depriving the people of the means of subsistence, should in general
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be proscribed. Those who contribute to introducing it—either by buying or selling—are genuinely guilty of increasing or maintaining the number of poor with which society is burdened.
The other type of internal competition is that of work among subjects: it consists in the fact that each of them has the capacity to be employed in the manner that he believes most lucrative, or that is most agreeable to him.
This is the principal basis of the freedom of trade: it alone contributes more than any other means to bringing to a nation that external competition which enriches it and makes it powerful. The reason is very simple. I won’t, perhaps, say that every man is so unfortunate as to be naturally inclined to work, but he is naturally inclined to procure his ease; and this ease, the wages of his labor, then makes his occupation agreeable to him. Thus, as long as no internal vice in the state’s administration sets obstacles to human industry, this industry enters by itself into the lists. The more substantial the number of its products, the more moderate is their price; and this price moderation obtains the preference of foreigners.
However, as money enters a state in this way, as the people’s means of subsistence multiply and the number of, or competition among, consumers increases, commodities must be represented by a larger sum. This increase in the price of everything is real, and is the first effect of the progress of human industry. But a fortunate circle of new competitions ushers in appropriate arrangements. The commodities subject to consumption become daily more abundant, and that abundance partly moderates their price increase; the other part is distributed imperceptibly among all those who produce things, or who exchange them, by the reduction in their profits. The reduction in this profit is itself compensated for by the reduction in interest rates, since, as the number of borrowers is found to be fewer than the number of lenders, money loses its value by unanimous agreement, like any
