The Unity of Western Civilization

by Unknown

The stories of fortunes made by merchants who travelled among simple native tribes with cargoes of glass beads and were able to exchange these gaudy baubles for gold or rubber or other commodities which are valuable in civilized countries, have often been told, and opportunities for trading of this kind must have been very much more frequent when communication was comparatively difficult. Value to a great extent being determined by local convention and local habit, the profits of the trader were likely to be considerably increased the further he got from his home market. If he took away with him plenty of things which were in abundant supply at home and consequently cheap, he would almost certainly be able to bring back a large number of things which were plentiful in a far-away community, and consequently cheap for him to acquire, and scarce in his own district and consequently sure of a good market. This difference of standard of value in different countries was a great stimulus to foreign trade, also a great help to bringing mankind together, though it sometimes ended in disillusionment. It has been asserted that even within the memory of man an English merchant traded with a primitive community in which gold and silver were exchangeable weight for weight. For some years he did a very pleasant and profitable trade by taking a cargo of silver and bringing back with him the same weight in gold, the value of which in England happened to be sixteen times as great, or more. Unfortunately, when he made his last voyage he was met at the mouth of the river by a friendly native, who informed him that the community was waiting for him with tomahawks, and he hastily put to sea again. For the rest of his life he cherished a grievance against this curious people with which he had dealt, according to his own view, on perfectly equitable terms, having sold them a commodity at a price to which they were accustomed, and which they regarded as quite correct, with the result that they proposed to murder him because they found that the price was not in accordance with that current in other parts of the world.

By this business of exchange of commodities between one community and another, the process of specialization or division of labour which has already been referred to as its basis has been developed to extraordinary lengths. Its effect has been to increase enormously the wealth available, while at the same time the concentration of the individual has narrowed down his work so that he now no longer specializes on making one commodity, but on making a part of a fraction of a commodity.

Adam Smith's chapters on division of labour are so well known that there is no need to point out the very great economic benefits that arise from it. Clearly, any man who spends all his working time upon one particular process of productive activity acquires thereby a skill and rapidity in carrying out his part of the operation which would be impossible to any worker who has to carry the manufacture of an article from the beginning to its end. Just as we saw, when the primitive savage left off doing everything for himself and took to building huts for the rest of the community, that the huts became much more water-tight and comfortable, so the process goes still further, and building becomes very much more rapid and very much more cheap and efficient when a large number of specialists are set to work on the various very different processes required for the construction of a house. The consequence is that the production of goods is very greatly cheapened and made much more rapid, but at the same time the worker tends to become an artisan instead of a craftsman, and his work is likely to be much more monotonous and much more trying. Instead of seeing his product grow under his hand from its beginning to its end, with constant changes in the nature of its call on his energy and care, he is employed during the whole of his working time on some mechanical process, with the result that he himself becomes something very like a machine. What he has gained in the power to make and acquire commodities cheaply and quickly is offset to a certain extent by the less interesting and varied nature of his work.

It also follows that as the worker becomes a specialist he becomes dependent upon other members of the community for the supply to him of a large number of things which he requires for his own existence. If he spends his life in making one commodity or in making part of one commodity, it is clear that his requirements of all the things that are necessary for life apart from what he makes himself can only be satisfied by the willingness of the community to take the commodity that he makes in payment for those which it produces and of which he is in need. When he works for himself, he only makes things that he knows himself to need; when he works to sell to others, he has to speculate on the hope that the others will want what he makes.

Commerce thus not only shows the unity of mankind by being a universal feature of his existence, but increases that unity by making each individual dependent upon the exertions of his fellows, and on their willingness to take from him stuff which he is turning out; but if commerce thus promotes unity, it also tends to create a certain amount of friction and disagreement between one man and another when differences of opinion arise concerning the value of the product which each man is making, that is to say, concerning the amount of goods which the rest of the community is prepared to give him in exchange.

This consideration is also very strongly evident with regard to international trade. Here the division of labour is assisted by the difference in the products of different countries. There can be no doubt that the exchange of commodities between one nation and another tends to bring them together and to promote unity and harmony of interests. At the same time it is also likely to be fruitful in quarrels and bickering. We saw that Hiram was very much dissatisfied with the cities in Galilee which Solomon presented to him in the course of their semi-commercial transactions. He appears to have retaliated by making Solomon a very handsome present in gold; but Hiram seems to have been a very exceptional person, and it is probable that most traders who are dissatisfied with the consideration received would not have been so generous in expressing themselves.

International commerce has also been a fruitful cause of disunion rather than unity when various nations have quarrelled with one another concerning the right to trade with a third people. If one nation is trading with another greatly to its profit, it feels that it has a grievance when it finds that a neighbouring nation is sending cargoes to the same destination and undercutting it and taking the cream of the trade. After religion, it is probable that trade has produced more bloodshed than any other form of human activity. At the same time there can be no doubt that on the whole its influence has been strongly on the side of unity and that it has done more to break down international barriers than any other influence that has operated in the course of history. The trader, as such, believes entirely and whole-heartedly in the unity of mankind. All that he wants to do is to buy his products as cheaply as he can and to sell them at the best possible price. Whether he buys at home or abroad, or whether he sells at home or abroad, is a matter of complete indifference to him except that, as has been shown, owing to variations in value in different parts of the world, he is probably likely to be able to make larger profits from foreign trade than in commerce at home. National preferences sometimes induce him to encourage home industry by buying home products when foreign goods would have paid him better, but in so far as this happens, he ceases to be a trader as such and becomes a mixture of trader and patriot. As buyers and sellers, however, mankind is, on the whole, singularly free from international prejudices. It was thought at one time that importation of foreign goods into England would be considerably checked by insisting upon marks of origin, that is to say, that imported goods should be stamped as such. This expectation, however, seems to have been entirely disappointed, since most buyers were not concerned with the question of the country whence the commodity that they bought came, and only considered whether it suited their purses and was what they wanted. Sometimes there is actually a prejudice in favour of foreign goods, and, curiously enough, this is found to be so even in countries in which a protective policy has been very highly developed. It is, or was a few years ago, common to see in American newspapers, flaming advertisements heralding sales of imported goods, which were definitely stated to be such obviously because the sellers thought that they were likely to be able to sell them better because they were stated to be so. It is also a proud boast of English manufacturers that in many countries on the Continent it is common, or was until quite lately, for native manufacturers to sell their goods more easily in their home markets by describing them as English. Political and national prejudice seems to be overruled by the common human desire for something new and strange, and consequently, in spite of all friction that has arisen from international trade, and of the number of wars which have had their origin in commercial questions, there is good reason for the assertion that on the whole commerce has been a mighty promoter of intercourse among the nations and of the unity of mankind. If it had not been for commerce, the cheapening and quickening of communication could never have been carried out. The trader goes first, and after him the traveller and the tourist.

This claim can be made with perhaps even more certainty when we proceed to the realm of finance. If commerce is international and unifying, finance is perhaps even more so. Finance, of course, arises out of commerce and is an essential part of its machinery. By finance we mean the machinery of money—money-dealing and money-lending. Money becomes necessary as soon as the exchange of commodities, which is the meaning of trade, becomes fairly developed. At first, primitive peoples exchanged their commodities one for another, but a difficulty arose when out of a pair of possible traders one had something which the other wanted but the other had not. For example, if the arrow-maker had arrows to sell and wanted to buy fish, there obviously could be no bargain if his friend who wanted to buy arrows had only got deerskins to give in exchange. It was essential to the development of trade that some commodity should be hit on which could always be taken in exchange and so form a circulating medium. We have seen from the twenty-third chapter of Genesis that a certain weight of silver had in Abraham's time begun to assume this function. Economic text-books tell us that many other commodities had the form and function of money before the metals came into use. Until quite lately there were many places in which the use of an agreed medium of exchange had not been adopted to facilitate the purposes of commerce. Jevons begins his very interesting book on money by relating how

Some years since, Mdlle Zélie, a singer of the Théâtre Lyrique at Paris, made a professional tour round the world, and gave a concert in the Society Islands. In exchange for an air from Norma and a few other songs, she was to receive a third of the receipts. When counted, her share was found to consist of three pigs, twenty-three turkeys, forty-four chickens, five thousand cocoa-nuts, besides considerable quantities of bananas, lemons, and oranges. At the Halles in Paris, as the prima donna remarks in her lively letter, ... this amount of live stock and vegetables might have brought four thousand francs [£160], which would have been good remuneration for five songs. In the Society Islands, however, pieces of money were very scarce; and as Mademoiselle could not consume any considerable portion of the receipts herself, it became necessary in the meantime to feed the pigs and poultry with the fruit,'[27] and so her receipts consumed one another.

This is an example of the inconvenience which the invention of money overcame. In primitive communities it took the form of cowry-shells or tobacco or gunpowder or any commodity which was in universal request in the place. All the seller wanted to do was to be able to obtain for his product a certain amount of stuff which he could rely on being able to exchange for other things that he wanted. In the end the precious metals, with their strong appeal to human vanity, and their utility for adorning temples and so propitiating divine favour, ousted all other commodities which had been used for money; and they are now to a great extent ousted by pieces of paper, which still, however, represent claims to so much gold.