Even the practical Xenophon, however, is not free from the moral-aristocratic prejudice against mechanical arts (βαναυσικαί) for the better class of citizens. He admits that they are justly spoken against, and held in ill-repute, since they tend to weaken the laborer both in body and in soul.[[433]] The artisans have no leisure to give either to their friends or to the state, and in a warlike state the citizens cannot be thus employed.[[434]] The artisan is also servile because of his ignorance of the higher moral sentiments (τὰ καλὰ καὶ ἀγαθὰ καὶ δίκαια).[[435]] All this sounds like Plato, but Xenophon differs, in that he is in no wise opposed to the unlimited development of industry and commerce, provided the drudgery of it may be done by non-citizens.
The principle of the division of labor is clearly stated by him, but here again he differs from Plato in that his prime interest is practical and economic rather than moral. He presents it as the reason why royal dishes are superior in flavor to others, and makes the acute observation that the division of labor is not so fully applied in the small city, because there are not enough consumers to support a man in one trade. In the large city, on the other hand, the consumers are so numerous that even the trades themselves are divided and subdivided. Thus much greater skill is developed, and better results realized, for he who spends his time in work of the narrowest compass (βραχυτάτῳ) must accomplish this in the best manner.[[436]] He does not specify the advantages of the division of labor to industry, except that it results in greater skill, but he reveals especial insight in stating so clearly the relation of the market to the development of the principle.[[437]] In this, he is the forerunner of Adam Smith, who observes that a minute division of trades cannot exist except in the larger cities, especially in coast and river towns.[[438]] The assertion of Haney,[[439]] that the Greeks referred only to a “simple separation of employments,” is certainly unwarranted in the light of this passage, for Xenophon expressly distinguishes here the simple from the more complex subdivision. He says that some are employed on men’s shoes, others on women’s; some do the sewing (νευρορραφῶν), others do the cutting (σχίζων), and that the same also is true in the manufacture of clothing.[[440]] This passage is also an evidence that the development of industry in fourth-century Athens must have been extensive. Xenophon also, like Plato, observed the fact that the diversity in the natures of men is the basis for the division of labor,[[441]] though he did not follow him in his doctrine that men and women should have the same work.[[442]]
Unlike Plato, the idealist, Xenophon, the practical man of affairs, takes the institution of slavery for granted, seemingly unconscious of any ethical or economic problems involved.[[443]] However, as a matter of common-sense, he advises that slaves be treated with consideration. He would give them a proper degree of liberty,[[444]] and arouse them to do their best[[445]] by a fair system of rewards and punishments. In the case of those slaves who hold positions of trust, he advises that their affections should be won by kindly treatment, and even by making them sharers in the prosperity of the household.[[446]] Slavery is, of course, a condition most irksome to the free-born. The unfortunate Eutheros would almost prefer starvation.[[447]]
MONEY
In his treatise on the Revenues of Athens, Xenophon shows some appreciation of the theory of money. He appears to take for granted that money must have intrinsic value. At least, he understands that silver is a commodity whose value is affected by its use as such, as well as by its employment for currency.[[448]] He also apprehends the value of a silver currency for international commerce.[[449]] His naïvely enthusiastic argument for the indefinite increase of the stock of silver, however, is suggestive of the mercantile fallacy, which identified money with wealth.[[450]] But perhaps he is merely using for practical purposes of argument the fact that the Athenians were accustomed to look upon silver as the metal for fixed and constant value.[[451]] In any event, he sees that the increase of silver must be attended by a corresponding increase in business activity, if its value is not to depreciate,[[452]] and he cannot be accused of the error of the mercantilists, that a country is impoverished by the export of money.[[453]] He must also have understood clearly the importance of stability of value in a currency, since he deems it necessary to show that the increased output of silver will not decrease its value, and that silver is the least changeable of the monetary metals.[[454]] Despite his enthusiasm for his thesis, which causes him to exaggerate the stability of silver, he does not fail to grasp the direct effect of supply and demand upon it,[[455]] just as upon gold[[456]] and other commodities.[[457]] He shows also some understanding of the quantitative theory of the relation between gold and silver.[[458]] It need hardly be added that, in strong contrast to Plato, his attitude toward the precious metals, especially silver, is very favorable.[[459]]
EXCHANGE
Xenophon presents no theory of exchange,[[460]] though he is frankly interested in the advance of commerce and trade. In his opinion, the greater their development, the better it is for the city of Athens.[[461]] He is full of practical suggestions to stimulate commercial activity.[[462]] So assured is he of the prime importance of extensive commerce to a nation, that, in the spirit of modern commercialism, he insists upon the necessity of peace for its sake.[[463]] To his mind, increased trade means not only material advantage, but social and political as well, in that greater prosperity, more labor, and a better distribution will mean greater satisfaction, and hence less danger of revolution in the state.[[464]] He entertains none of the prejudice of the other Socratics against the money-makers’ art, a fact which may well be a warning against the too ready acceptance of their attitude as the usual verdict of the Athenian citizens.[[465]] In his practical suggestions for the development of commerce there is a hint of the protective principle. He advises that certain advantages be granted to shipowners so as to induce them to increase their shipping.[[466]] But the purpose is not to limit the advantage to Athenian merchantmen, nor to restrict import trade. It is rather the opposite. He would enrich the city by tribute on both imports and exports, imposed for sumptuary and revenue purposes,[[467]] and would also develop a public merchant-marine for rent to merchants, as a further source of income.[[468]]
POPULATION
In antithesis to Plato and Aristotle, the problem of population has no difficulties for Xenophon. He does not deem it advisable to set a limit on the population of the state. On the contrary, he conceives it as one of the advantages of his plan in the Revenues, that thereby the city would become very populous, and thus land about the mines would soon be as valuable as that in the city itself.[[469]]