The Industrial Revolution is hardly less a fundamental change in the habits of English thought than in the technique of commercial production. Alongside the discoveries of Hargreaves and Crompton, the ideas of Hume and Adam Smith shifted the whole perspective of men's minds. The Revolution, indeed, like all great movements, did not originate at any given moment. There was no sudden invention which made the hampering system of government-control seem incompatible with industrial advance. The mercantilism against which the work of Adam Smith was so magistral a protest was already rather a matter of external than internal commerce when he wrote. He triumphed less because he suddenly opened men's eyes to a truth hitherto concealed than because he represented the culmination of certain principles which, under various aspects, were common to his time. The movement for religious toleration is not only paralleled in the next century by the movement for economic freedom, but is itself in a real sense the parent of the latter. For it is not without significance that the pre-Adamite economists were almost without exception the urgent defenders of religious toleration. The landowners were churchmen, the men of commerce largely Nonconformist; and religious proscription interfered with the balance of trade. When the roots of religious freedom had been secured, it was easy for them to transfer their argument to the secular sphere.
Nothing, indeed, is more important in the history of English political philosophy than to realize that from Stuart times the Nonconformists were deeply bitten with distrust of government. Its courts of special instance hampered industrial life at every turn in the interest of religious conformity. Their heavy fines and irritating restrictions upon foreign workmen were nothing so much as a tax upon industrial progress. What the Nonconformists wanted was to be left alone; and Davenant explained the root of their desire when he tells of the gaols crowded with substantial tradesmen whose imprisonment spelt unemployment for thousands of workmen. Sir William Temple, in his description of Holland, represents economic prosperity as the child of toleration. The movement for ecclesiastical freedom in England, moreover, became causally linked with that protest against the system of monopolies with which it was the habit of the court to reward its favorites. Freedom in economic matters, like freedom in religion, came rapidly to mean permission that diversity shall exist; and economic diversity soon came to mean free competition. The latter easily became imbued with religious significance. English puritanism, as Troeltsch has shown us, insisted that work was the will of God and its performance the test of grace. The greater the energy of its performance, the greater the likelihood of prosperity; and thence it is but a step to argue that the free development of a man's industrial worth is the law of God. Success in business, indeed, became for many a test of religious grace, and poverty the proof of God's disfavor. Books like Steele's Religious Tradesman (1684) show clearly how close is the connection. The hostility of the English landowners to the commercial classes in the eighteenth century is at bottom the inheritance of religious antagonism. The typical qualities of dissent became a certain pushful exertion by which the external criteria of salvation could be secured.
Much of the contemporary philosophy, moreover, fits in with this attitude. From the time of Bacon, the main object of speculation was to disrupt the scholastic teleology. In the result the State becomes dissolved into a discrete mass of individuals, and the self-interest of each is the starting-point of all inquiry. Hobbes built his state upon the selfishness of men; even Locke makes the individual enter political life for the benefits that accrue therefrom. The cynicism of Mandeville, the utilitarianism of Hume, are only bypaths of the same tradition. The organic society of the middle ages gives place to an individual who builds the State out of his own desires. Liberty becomes their realization; and the object of the State is to enable men in the fullest sense to secure the satisfaction of their private wants. How far is that conception from the Anglican outlook of the seventeenth century, a sermon of Laud's makes clear. "If any man," he said,[19] "be so addicted to his private interest that he neglects the common State, he is void of the sense of piety, and wishes peace and happiness for himself in vain. For, whoever he be, he must live in the body of the commonwealth and in the body of the Church." So Platonic an outlook was utterly alien from the temper of puritanism. They had no thought of sacrificing themselves to an institution which they had much ground for thinking existed only for their torment. The development of the religious instinct to the level of salvation found its philosophic analogue in the development of the economic sense of fitness. The State became the servant of the individual from being his master; and service became equated with an internal policy of laissez-faire.
[19] Sermon of June 19, 1621. Works (ed. of 1847), p. 28.
Such summary, indeed, abridges the long process of release from which the eighteenth century had still to suffer; nor does it sufficiently insist upon the degree to which the old idea of state control still held sway in external policies of trade. Mercantilism was still in the ascendant when Adam Smith came to write. Few statesmen of importance before the younger Pitt had learned the secret of its fallacies; and, indeed, the chief ground for difference between Chatham and Burke was the former's suspicion that Burke had embraced the noxious doctrine of free trade. Mercantilism, by the time of Locke, is not the simple error that wealth consists in bullion but the insistence that the balance of trade must be preserved. Partly it was doubtless derived from the methods of the old political arithmetic of men like Petty and Davenant; the individual seeks a balance at the end of his year's accounting and so, too, the State must have a balance. "A Kingdom," said Locke, "grows rich or poor just as a farmer does, and no other way"; and while there is a sense in which this is wholly true, the meaning attached to it by the mercantilists was that foreign competition meant national weakness. They could not conceive a commercial bargain which was profitable to both sides. Nations grow prosperous at each other's expense; wherefore a woolen trade in Ireland necessarily spells English unemployment. Even Davenant, who was in many respects on the high road to free trade, was in this problem adamant. Protection was essential in the colonial market; for unless the trade of the colonies was directed through England they might be dangerous rivals. So Ireland and America were sacrificed to the fear of British merchants, with the inevitable result that repression brought from both the obvious search for remedy.
Herein it might appear that Adam Smith had novelty to contribute; yet nothing is more certain than that his full sense of the world as the only true unit of marketing was fully grasped before him. In 1691 Sir Dudley North published his Discourses upon Trade. Therein he clearly sees that commercial barriers between Great Britain and France are basically as senseless as would be commercial barriers between Yorkshire and Middlesex. Indeed, in one sense, North goes even further than Adam Smith, for he argues against the usury laws in terms Bentham would hardly have disowned. Ten years later an anonymous writer in a tract entitled Considerations on the East India Trade (1701) has no illusions about the evil of monopoly. He sees with striking clarity that the real problem is not at any cost to maintain the industries a nation actually possesses, but to have the national capital applied in the most efficient channels. So, too, Hume dismissed the Mercantile theory with the contemptuous remark that it was trying to keep water beyond its proper level. Tucker, as has been pointed out, was a free trader, and his opinion of the American war was that it was as mad as those who fought "under the peaceful Cross to recover the Holy Land"; and he urged, indeed, prophesied, the union with Ireland in the interest of commercial amity. Nor must the emphasis of the Physiocrats upon free trade be forgotten. There is no evidence now that Adam Smith owed this perception to his acquaintance with Quesnay and Turgot; but they may well have confirmed him in it, and they show that the older philosophy was attacked on every side.
Nor must we miss the general atmosphere of the time. On the whole his age was a conservative one, convinced, without due reason, that happiness was independent of birth or wealth and that natural law somehow could be made to justify existing institutions. The poets, like Pope, were singing of the small part of life which kings and laws may hope to cure; and that attitude is written in the general absence of economic legislation during the period. Religiously, the Church exalted the status quo; and where, as with Wesley, there was revolt, its impetus directed the mind to the source of salvation in the individual act. It may, indeed, be generally argued that the religious teachers acted as a social soporific. Where riches accumulated, they could be regarded as the blessing of God; where they were absent their unimportance for eternal happiness could be emphasized. Burke's early attack on a system which condemned "two hundred thousand innocent persons ... to so intolerable slavery" was, in truth, a justification of the existing order. The social question which, in the previous century, men like Bellers and Winstanley had brought into view, dropped out of notice until the last quarter of the century. There was, that is to say, no organized resistance possible to the power of individualism; and resistance was unlikely to make itself heard once the resources of the Industrial Revolution were brought into play. Men discovered with something akin to ecstasy the possibilities of the new inventions; and when the protest came against the misery they effected, it was answered that they represented the working of that natural law by which the energies of men may raise them to success. And discontent could easily, as with the saintly Wilberforce, be countered by the assertion that it was revolt against the will of God.
II
Few lives represent more splendidly than that of Adam Smith the speculative ideal of a dispassionate study of philosophy. He was fortunate in his teachers and his friends. At Glasgow he was the pupil of Francis Hutcheson; and even if he was taught nothing at Oxford, at least six years of leisure gave him ample opportunity to learn. His professorship at Glasgow not only brought him into contact with men like Hume, but also admitted him to intercourse with a group of business men whose liberal sentiments on commerce undoubtedly strengthened, if they did not originate, his own liberal views. At Glasgow, too, in 1759, he published his Theory of Moral Sentiments, written with sufficient power of style to obscure its inner poverty of thought. The book brought him immediately a distinguished reputation from a public which exalted elegance of diction beyond all literary virtues. The volatile Charles Townshend made him tutor to the Duke of Buccleuch, through whom Smith not only secured comparative affluence for the rest of his days, but also a French tour in which he met at its best the most brilliant society in Europe. The germ of his Wealth of Nations already lay hidden in those Glasgow lectures which Mr. Cannan has so happily recovered for us; and it was in a moment of leisure in France that he set to work to put them together in systematic fashion. Not, indeed, that the Frenchmen whom he met, Turgot, Quesnay and Dupont de Nemours, can be said to have done more than confirm the truths he had already been teaching. When he returned to Scotland and a competence ten years of constant labor were necessary before the Wealth of Nations was complete. After its publication, in 1776, Adam Smith did little save attend to the administrative duties of a minor, but lucrative office in the Customs. Until the end, indeed, he never quite gave up the hope, foreshadowed first in the Moral Sentiments of completing a gigantic survey of civilized institutions. But he was a slow worker, and his health was never robust. It was enough that he should have written his book and cherished friendships such as it is given to few men to possess. Hume and Burke, Millar the jurist, James Watt, Foulis the printer, Black the chemist and Hutton of geological fame—it is an enviable circle. He had known Turgot on intimate terms and visited Voltaire on Lake Geneva. Hume had told him that his book had "depth and solidity and acuteness"; the younger Pitt had consulted him on public affairs. Few men have moved amid such happy peace within the very centre of what was most illustrious in their age.
We are less concerned here with the specific economic details of the Wealth of Nations than with its general attitude to the State. But here a limitation upon criticism must be noted. The man of whom Smith writes is man in search of wealth; by definition the economic motive dominates his actions. Such abuse, therefore, as Ruskin poured upon him is really beside the point when his objective is borne in mind. What virtually he does is to assume the existence of a natural economic order which tends, when unrestrained by counter-tendencies, to secure the happiness of men. "That order of things which necessity imposes in general," he writes, "... is, in every particular country promoted by the natural inclinations of man"; and he goes on to explain what would have resulted "if human institutions had never thwarted those natural inclinations." "All systems either of preference or of restraint, therefore, being thus completely taken away," he writes again, "the obvious and simple system of natural liberty establishes itself of its own accord. Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest in his own way.... The sovereign is completely discharged from a duty in the attempting to perform which he must always be exposed to innumerable delusions, and for the proper performance of which no human wisdom or knowledge would ever be sufficient; the duty of superintending the industry of private people and of directing it towards the employments most suitable to the interests of the society."