"P.S.—Pray, did Guidelianus[300:3] get his money, allowed him by the Pay-office? I suppose he is in Ireland, poor devil! so I give you no commission with regard to him.
"Pray, tell Glassaugh that I hope he has not suppressed the paper I sent him about the new year.[301:1] If he has, pray ask for a sight of it, for it is very witty. I contrived it one night that I could not sleep for the tortures of rheumatism; and you have heard of a great lady, who always put on blisters, when she wanted to be witty. 'Tis a receipt I recommend to you."[301:2]
The following letter to Oswald shows us that Hume was, at the time it was written, earnestly engaged in the preparation of the "Essays on Political Economy," which he published in 1752.
Hume to James Oswald of Dunnikier.
"Dear Sir,—I confess I was a little displeased with you for neglecting me so long; but you have made ample compensation. This commerce, I find, is of advantage to both of us; to me, by the new lights you communicate, and to you, by giving you occasion to examine these subjects more accurately. I shall here deliver my opinion of your reasonings with the freedom which you desire.
"I never meant to say that money, in all countries which communicate, must necessarily be on a level, but on a level proportioned to their people, industry, and commodities. That is, where there is double people, &c. there will be double money, and so on; and that the only way of keeping or increasing money is, by keeping and increasing the people and industry; not by prohibitions of exporting money, or by taxes on commodities, the methods commonly thought of.
I believe we differ little on this head. You allow, that if all the money in England were increased fourfold in one night, there would be a sudden rise of prices; but then, say you, the importation of foreign commodities would soon lower the prices. Here, then, is the flowing out of the money already begun. But, say you, a small part of this stock of money would suffice to buy foreign commodities, and lower the prices. I grant it would for one year, till the imported commodities be consumed. But must not the same thing be renewed next year? No, say you; the additional stock of money may, in this interval, so increase the people and industry, as to enable them to retain their money. Here I am extremely pleased with your reasoning. I agree with you, that the increase of money, if not too sudden, naturally increases people and industry, and by that means may retain itself; but if it do not produce such an increase, nothing will retain it except hoarding. Suppose twenty millions brought into Scotland; suppose that, by some fatality, we take no advantage of this to augment our industry or people, how much would remain in the quarter of a century? not a shilling more than we have at present. My expression in the Essay needs correction, which has occasioned you to mistake it.
"Your enumeration of the advantages of rich countries above poor, in point of trade, is very just and curious; but I cannot agree with you that, barring ill policy or accidents, the former might proceed gaining upon the latter for ever. The growth of every thing, both in art and nature, at last checks itself. The rich country would acquire and retain all the manufactures that require great stock or great skill; but the poor country would gain from it all the
simpler and more laborious. The manufactures of London, you know, are steel, lace, silk, books, coaches, watches, furniture, fashions; but the outlying provinces have the linen and woollen trade.
"The distance of China is a physical impediment to the communication, by reducing our commerce to a few commodities; and by heightening the price of these commodities, on account of the long voyage, the monopolies, and the taxes. A Chinese works for three-halfpence a-day, and is very industrious; were he as near us as France or Spain, every thing we used would be Chinese, till money and prices came to a level; that is, to such a level as is proportioned to the numbers of people, industry, and commodities of both countries.