Other Causes of Slow Progress

No Law on Contracts

Another thing which greatly retarded commerce was the imperfection of the law with regard to contracts.

Contracts were the last kinds of rights that sustained action.

• Originally, the law gave no redress for any but those concluded on the spot.
• Presently, all considerable commerce is carried on by commissions. Unless these sustained action, little could be done.

The first action on contracts extended only to the inconsiderable moveable goods of the contractor. He and his lands could not be touched. Probity is not a prevalent virtue among a rude people because it is commerce that introduces probity and punctuality.

Bad Peace and Order and Infrastructure

Another obstacle to the improvement of commerce was the difficulty of transportation due to=

• lack of peace and order, and
  • The countryside was then filled with retainers who were idle people depended on the lords. The lords’ violence and disorders rendered travelling very difficult.
• bad infrastructure as the lack of good highways.

In a rude society, only war is honourable. In the Odyssey, Ulysses is sometimes asked, by way of affront, whether he is a pirate or a merchant. Back then, a merchant was reckoned odious and despicable, but a pirate or robber was treated with honour, since he had military bravery.

In Britain, a man made his testament before leaving Edinburgh for Aberdeen. It was even more dangerous to go overseas. The laws of countries on aliens and strangers are far from being favourable.

Sea travel remained difficult and piracy was an honourable occupation as men were ignorant of navigation.

The lack of navigable rivers was also an inconvenience, which is still the case in Asia and other Eastern countries. All inland commerce is carried on by great caravans.

The price of all these risks was laid on the goods. This raised their prices so much above the natural price that the improvement of commerce was greatly retarded.

Fixed Fairs

Another policy which had the same effect was the fairs and markets all over Europe. Our forefathers thought that these were wise. Until the 16th century, all commerce was carried on by fairs.

The following fairs were much talked of in antiquity=

• Bartholomew of Leipzig
• Troyes in Champagne, France
• Glasgow.

These were the most central places best for carrying on business and all linen and black cattle were brought in to them. They were brought on a certain day and not allowed to be sold on any other day.

Forestallers went up and down the country buying up commodities. They were severely punished as they would reduce the goods for the market. This might be necessary if it were not safe to go anywhere alone. But even if there were no fairs, buyers and sellers will find a way to each other.

Easy conveyance and other conveniences of trafficking will be of more advantageous than bringing them to a fixed market which confines buying and selling to a certain season. All fairs, however necessary they then were, are now real nuisances. It is absurd to preserve old customs when their causes – the lack of security – are removed.

Staple towns

Staple towns had the exclusive privilege of selling a certain commodity within that district. When Calais belonged to the English, it was the staple for wool for a long time. Its price was very high as men were obliged to carry their wool very far. However, it was a very great advantage to any town to have the staple.

Therefore, the king:

• gave it to the town that he was best pleased with, and
• took it away whenever it disobliged him.

Staple towns had all the disadvantages of fairs and markets. It had an extra disadvantage that the staple commodity could not be sold at any other market or fair. This reduced the liberty of exchange and consequently the division of labour.

Import and Export taxes

All taxes on export and imported goods also hinder commerce. Initially, merchants were so contemptible that the law abandoned them. The law obliged the merchants to pay and to have their goods taxed, which raised the price of goods. This led to fewer goods and discouraged manufactures and the division of labour.

Monopolies and exclusive privileges

All monopolies and exclusive privileges of corporations, for whatever good ends they were at first instituted, have the same bad effect.

The Statute of apprenticeship

Similarly, the statute of apprenticeship has a bad tendency. They imagined that the cause of so much bad cloth was that the weaver had not been properly educated, so they made a statute that he should serve a 7 years apprenticeship before making any cloth.

But this is not a sufficient security against bad cloth since you cannot inspect a large piece of cloth. Instead, you rely on the stampmaster’s skill.

Bounties

Above all other causes, the giving bounties for one commodity, and the discouraging another, hurts the natural state of commerce.