Who Was the Author of the Essay on Commerce? A Note on Sir James Steuart's Doctrinal Sources

Abstract

The influence of Richard Cantillon's Essai sur la Nature du Commerce en General on Sir James Steuart's An Inquiry into the Principles of Political Oeconomy has been discussed by historians of economic thought. It seems that several points of connection between these works can be found. But we do not know with certainty whether Steuart had read Richard Cantillon's Essai. It is sure that he had read Philip Cantillon's Analysis of Trade, since he explicitly cites this book in the Principles.' But there is not any definitive evidence to prove that he knew Richard Cantillon's masterwork. There are two quotations in Part II of Book IV of the Principles that have been considered references to R. Cantillon's Essai. In the first one. in chapter XXXVII. that describes the functioning of the bank of Amsterdam. Steuart writes: "Many authors have written concerning this great bank of deposit: particularly, Davenant. Sir William Temple. Ricard in his Traite de Commerce revu par Struyk, the author of the Essay sur le Commerce, and Mr. Megens. in his book, which has been translated into English under the title of The Universal Merchant,' ' The second quotation can be found in Chapter XXXIX. In this chapter Steuart studies the circulation of coin and discusses the importance of the treasure of the bank of Amsterdam. He writes: "From this I conclude that the treasure of the bank of Amsterdam is not so great as some authors, from mere conjecture have asserted." The author of the Essay on Commerce reckons it at four hundred millions of guilders: and the Amsterdam edition carries in the margin a correction, which gives us to understand, that it amounts to between eight and nine hundred millions. Davenant esteems it at 36 millions sterling. Mr. Megens, an author of great judgment and sagacity, esteems this treasure at no more than about 60 millions of guilders, or about 5,500,000 £ sterling; a sum (says he) wherewith great things may be done. Universal Merchant, sect. 6 1 . " 3