Читать книгу Encyclopedic Liberty - Jean Le Rond d'Alembert - Страница 25
Оглавление[print edition page 55]
TRADING COMPANY. This term means an association formed for undertaking, implementing, or managing any commercial operations.
These companies are of two kinds, either private or privileged.
Private companies are normally formed by a small number of individuals who each furnish a portion of the capital, or simply their time and advice, and sometimes both, on the conditions agreed to in the partnership contract. These companies more commonly bear the denomination of firms [sociétés]. See SOCIÉTÉ [Society or Association].
Usage has nonetheless preserved the name company for private firms or partnerships when there are a large number of members, substantial capital, and enterprises distinguished by their risk or their scale. These sorts of company-firms are most often composed of persons from various occupations who, being inexperienced in trade, entrust the direction of operations to partners or to competent agents under a general plan. Although the operations of these companies receive no public preference over private operations, they are nonetheless always regarded askance in commercial locales, because any competition reduces profit. But that reason itself ought to make them very agreeable to the state, whose commerce can be extended and perfected only through the merchants’ competition.
Even in general, these companies are useful to traders because they extend a nation’s knowledge of, and interest in, that sector that is always envied and often despised—despite its being the sole source of all others.
[print edition page 56]
Abundant money, low interest rates, sound public credit, the growth of luxury—all clear signs of public prosperity—are the usual results of these sorts of establishments. They contribute in turn to that prosperity, by multiplying the various kinds of occupation for the people, their ease, their consumption, and finally the revenues of the state.
There is one case, however, in which they might be harmful: that is when dividends are distributed as shares that are traded and transferred without further formality. By this means, foreigners may elude that wise law that in civilized states prohibits non-naturalized or non-domiciled foreigners from participating in armaments companies. Thanks to these shares, peoples who have a better rate of interest than their neighbors can attract from afar all the profit from the trade of these neighbors—sometimes even ruin them, if it is in their interest. It is only then that merchants have a right to complain. Another general rule: anything that can be subject to speculation is dangerous in a nation that pays a higher rate of interest.
The usefulness of these associations to investors is much more ambiguous than to the state. Nonetheless, it is unfair to be biased against all schemes just because most of those that have been seen to hatch at various times have failed. The usual pitfalls are lack of thrift (inseparable from large operations), lavish expense on establishments before being assured of profit, impatience to see gain, hasty loss of appetite for the project, and finally, discord.
Credulity, daughter of ignorance, is imprudent, but it is contradictory to abandon an enterprise one knew to be risky simply because its risks have been unfurled. Fortune seems to take pleasure in making those who solicit her pass through trials; her largesse is not reserved for those discouraged by her first whims.
There are some general rules by which people who are not acquainted with commerce but would like to become interested in it can protect themselves: (1) At a time when a nation’s capital stock has increased among all classes of people—although with some disproportion among them—the types of commerce that have raised up great fortunes, and that sustain brisk merchant competition, never procure substantial profits; the more this competition increases, the more noticeable the disadvantage becomes. (2) In distant and risky trade, it is imprudent to employ capital whose revenue is not superfluous to subsistence. For if the stakeholders annually
[print edition page 57]
withdraw either their dividends or simply their interest (if it is at any tolerably substantial rate), any losses that might occur fall immediately on the capital. Sometimes, this capital itself is found to be already diminished by the extraordinary expenses of the first few years. Operations languish or lack boldness; the plan as conceived cannot be fulfilled, and the dividends will certainly be mediocre, even if things go well. (3) Any plan that shows only profits is drawn up by a man lacking either prudence or sincerity. (4) An excellent commercial operation is one in which, following the ordinary course of events, capital runs no risk. (5) The gains from trade are almost always proportional to the uncertainty of success; the operation is good if this proportion is very clear. (6) The selection of individuals who should be assigned the conduct of the enterprise is the most essential item in its success. The one who is capable of taking in a broad overview of things and of directing each particular operation to the common benefit will do quite poorly on the details; aptitude for the latter indicates talent, but often only that. Without understanding commerce, one can be enriched by its means. If the laws were not burdened with formalities, a skillful merchant would surely be a good judge; he would in every case be a great financier. But just because a man knows the laws, just because he has administered the public revenues well or has profited much in one type of trade, it does not follow that his judgment ought to prevail in all commercial deliberations.
There have never been so many plans and projects of this kind since the return of peace,1 and it is noteworthy that virtually everyone has turned his sights toward Cadiz, Martinique, and St. Domingue.2 That did not require much skill, and however little discussion one may have wanted to engage in, it was easy to predict the fate that the stakeholders have experienced. The result is that much more capital has left this trade than has entered into it as surplus.
If one had been busy discovering new mines or establishing solid factories in lesser-known cities such as Naples or Hamburg; if companies had employed a great deal of capital, wisely managed, in the trade of Louisiana
[print edition page 58]
or the North; if they had set up enterprises in our Antilles (which are conducive to them), as in Guadeloupe and Cayenne,3 they would soon have recognized that there are even bigger and more solid fortunes to be made in the branches of commerce that are not open than have been made up to now. Means of subsistence for the people and wherewithal for families would have doubled in less than ten years.
These details would perhaps not be suitable for an ordinary dictionary, but the purpose of the Encyclopédie is to instruct, and it is important to absolve commerce of the faults of those who have engaged in it.
Privileged companies or guilds are those that have received from the state special favors or rights for certain enterprises, to the exclusion of other subjects. They began in times of barbarism and ignorance, when the seas were covered with pirates, the art of navigation was crude and uncertain, and the use of insurance was not well known. At that time, it was necessary for those who tried their luck in the midst of so many perils to diminish these by sharing them, to engage in mutual support, and to band together in political bodies. The advantage that states derived from them led states to grant encouragements and special protection to these bodies; afterward, the needs of those states and the merchants’ greed imperceptibly perpetuated these privileges, under the pretext that trade could not be carried on otherwise.
This prejudice has not entirely dissipated as people have become more civilized and the human sciences more perfected, because it is easier to imitate than to reason. And even today, many people think that it is useful to restrict competition in certain cases.
One of these special cases that people cite is that of an enterprise that is new, risky, or costly. Everyone will no doubt agree that cases of this type require the special favor and encouragement of the state.
If these favors and encouragements are fiscal exemptions, it is clear that the state loses nothing from the fact that a larger number of subjects will profit from them, since it is a new industry that it is favoring. If it is outlays, bonuses, whatever is more certain and even indispensable, it is clear that three infallible consequences result from competition. First, a greater number
[print edition page 59]
of men are enriched; the state’s investment brings returns more surely and promptly. Second, the establishment will be brought to its perfection (which is the purpose of the outlays) to the extent that greater efforts contribute to it. Third, the outlays will cease sooner.
The reader will be better instructed on this matter if I place before him the opinions of one of England’s most skillful men of commerce. I speak of Mr. Josiah Child, ch. iii of one of his treatises entitled, Trade, and interest of money considered.4
No one is justified in flattering himself that he thinks any better; and what I will say, when supported by such an authority, will be less open to criticism. It is good to observe that the author was writing in 1669, and that many things have changed since then, but virtually all of them in extension of his principles.5
Companies of Merchants [says Mr. Child] are of two sorts, viz., Companies in joynt Stock, such as the East-India-Company, the Morea-Company (which is a Branch of the Turkey-Company) and the Greenland-Company, which is a Branch of the Muscovia-Company; the other sort are Companies who trade not by a joynt Stock, but only are under a Government and Regulation, such are the Hambrough-Company, the Turkey-Company, the Eastland-Company, the Muscovia-Company.
It hath for many Years been a moote case, whether any Encorporating of Merchants, be for publik Good or not.
For my own part I am of Opinion:
[print edition page 60]
I. That for Countries with which his Majesty hath no Allieance, nor can have any by reason of their distance, or Barbarity, or non-Communication with the Princes of Christendom, &c., where there is a necessity of Maintaining Forces and Forts (such as East-India and Guinia), Companies of Merchants are absolute necessary.
II. It seems evident to me that the greatest part of these two Trades ought for publick Good, to be managed by joynt Stock.
[Since that time the English have found the secret of reconciling the liberty and protection of commerce on the coast of Africa. See GRANDE BRETAGNE, its commerce.6]
III. It’s questionable to me, whether any other Company of Merchants are for publick good or hurt.
IV. I conclude however, that all restrictions of Trade are naught, and consequently that no Company whatsoever, whether they Trade in a Joynt Stock or under Regulation, can be for publick Good, except it may be easie for all, or any of his Majesty’s Subjects to be admitted into all, or any of the said Companies, at any time for a very inconsiderable Fine, and that if the Fine exceed 20 l. including all Charges of admission, it is too much, and that for these Reasons.
1. Because the Dutch who thrive best by Trade, and have the surest rules to thrive by, admit not only any of their own People, but even Jews and all kind of Aliens, to be Free of any of their Societies of Merchants, or any of their Cities or Towns Corporate.
2. Nothing in the World can enable us to coape with the Dutch in any Trade, but encrease of Hands and Stock, which a general admission will do; many Hands and much Stock being as necessary to the Prosperity of any Trade, as Men and Money to warfare.
3. There is no pretence of any good to the Nation by Companies, but only Order and Regulation of Trade; and if that be preserved (which the admission of all that will come in and submit to the Regulation, will not prejudice) all the good to the Nation that can be hoped for by Companies, is obtained.
4. The Eastland, besides our Native Commodities, spend great quantities of Italian, Spanish, Portugal, and French Commodities, viz. Oyle,
[print edition page 61]
Wine, Fruit, Sugar, Succads, Shoomack, &c. Now, in regard our East-Country Merchants of England are few, compared with the Dutch, and intend principally that one Trade out and home, and consequently are not so conversant in the aforesaid Commodities, nor forward to adventure upon them, and seeing that by the Companies Charter our Italian, Spanish, Portugal and French Merchants, who understand those Commodities perfectly well, are excluded those Trades, or at least, if the Company will give them leave to send out those Goods, are not permitted to bring in the Returns; it follows, that the Dutch must supply Denmark, Sweeden, and all parts of the Baltique, with most of those Commodities, and so it is in fact.
5. The Dutch who have no Eastland-Companies, yet have ten times the Trade to the Eastern parts as we have; and for Italy, Spain and Portugal, where we have no Companies, we have yet left full as much, if not more Trade, then the Dutch. [If, in this situation, English trade was equal to that of Holland in the countries just named, it is evident that either this trade was increased by the liberty of Northern shipping, or that England resold to Holland a part of its return cargo, and thereby deprived itself of a substantial portion of its benefit. It is an effect of all restricted shipping, because large stocks alone procure large sales.] And for Russia and Greenland where we have Companies (and I think Establisht by Act or Acts of Parliament) our Trade is in effect wholly lost, while the Dutch have, without Companies, encreased theirs to above forty times the Bulk of what the residue of ours now is.
From whence may be inferred:
1. That restrained limitted Companies are not alone sufficient to preserve and encrease a Trade.
2. That limitted Companies, though Established by Act of Parliament, may lose a Trade.
3. That Trade may be carried on to any part of Christendom, and encreased without Companies.
4. That we have declined more, at least have encreased less, in those Trades limitted to Companies, then in others where all his Majesties Subjects have had equal freedom to Trade.
The common Objections against this easie admission of all his Majesties Subjects into Companies of Merchants, are:
Object. 1. If all persons may come into any Company of Merchants on such easie terms, then young Gentlemen, Shop-keepers and divers others
[print edition page 62]
will turn Merchants, who through their own unskillfulness will pay dear for our native Commodities here, and sell them cheap abroad; and also buy Foreign Commodities dear abroad, and sell them here for less then their cost, to the Ruin of themselves, and Destruction of Trade.
I answer, first, caveat emptor, let particular Men look to themselves,7 and so doubtless they will in those Trades for which there are now Companies, as well as they do in others for which there are no Companies.
It is the care of Law-makers first and principally, to provide for the People in gross, not particulars, and if the consequence of so easie an admission, should be to make our Manufactures cheap abroad, and Foreign Commodities cheap here (as is alledged), our Nation in general would have the advantage both ways.
Object. 2. If all should be admitted &c. Shop-keepers, being the Retailors, of the same Commodities the Company Imports, would have so much the advantage of the Merchant, that he would beat the Merchant wholly out of the Trade.
I answer, first, We see no such thing in Holland, nor in the open Trades, viz. France, Spain, Portugal, Italy, and all our own Plantations, neither can that well be, for to drive a retail Trade to any purpose, requires a Mans full Stock, as well as his full attendance, and so doth it to drive the Trade of a Merchant, and therefore few can find Stock and time to attend both; from whence it follows, that of the many Hundreds which in memory have turned Merchants, very few continued long to follow both, but commonly after two or three Years Experience, betake themselves wholly to Merchandizing, or returned to the sole Exercise of their Retail way; but whether they do, or do not, concerns not the Nation in general, whose common Interest is to buy cheap, whatever appellation the Seller hath, whether that of a meer Merchant, Gentleman, or a Shop-keeper.
Object. 3. If Shop-keepers and other unexperienced persons may turn Merchants, &c. they will through Ignorance neglect buying and sending out our Native Manufactures, and will send out our Money, or Bills of Exchange to buy Foreign Commodities, which is an apparent National loss.
I answer, that Shop-keepers are, like all other Men (led by their profit) and if it be for their Advantage to send out Manufactures, they will do it without forcing; and if it be for their Profit to send over Money or
[print edition page 63]
Bills of Exchange, they will do that, and so will Merchants as soon and as much as they.
Object. 4. If any may be admitted, &c. what do we get by our seven Years Service, and the great Sums of Money our Parents gave to bind us Apprentices to Merchants? &c. And who will hereafter bind his Son to a Merchant?
I answer, The end of Service and giving of Money with Apprentices, I have always understood to be the Learning of the Art or Science of Merchandizing, not the purchasing of an Immunity or Monopoly to the prejudice of our Country; and that it is so, is evident from the practice, there being many general Merchants that are free of no particular Company, who can have as large Sums of Money with Apprentices, as any other that are free of one or more particular Companies of Merchants; and many Merchants that are free of particular Companies, unto whom few will have any considerable sums of Money with Apprentices; the proportion of Money given with Apprentices not following the Company a Merchant is free of, but the condition the Master, as to his more or less reputed skill in his Calling, Thriving or going backward, greater or lesser Trade, well or ill Government of himself and Family, &c.
Obj. 5. If all should be admitted on such easie terms, will not that be manifest Injustice to the Companies of Merchants, who by themselves or Predecessors have been at great Disburstments to purchase Priviledges & Immunities abroad, as the Turkey-Company, and the Hambrough-Company have done.
I answer, That I am yet to learn that any Company of Merchants not trading with a joynt Stock, such as the Turkey, Hambrough, Muscovia and Eastland Companies ever purchased their Priviledges, or built and maintained Forts, Castles or Factories, or made any Wars at their own charge; but I know the Turkey Company do maintain an Embassador and two Consuls, and are sometimes necessitated to make Presents to the Grand Senior,8 or his great Officers; and the Hambrough Company are at some charge to maintain their Deputy, and Minister at Hambrough; and I think it would be great Injustice that any should trade to the places within their Charters, without paying the same Duties or Leviations towards the Companies charge as the present Adventurers do pay, but I know not why any should be barred from trading to those places, or forced to pay a great Fine for admition, that are willing to pay
[print edition page 64]
the Companies Duties, and submit to the Companies regulation and orders in other respects.
Obj. 6. If all may be admitted as aforesaid, then such numbers of Shop-keepers and others would come into the Society of Merchants, as would by the Majority of Votes so much alter the Governours, Deputy and Assistants of the respective Companies, that Ignorant Persons would come into those ruling places, to the general prejudice of those Trades.
I answer, Those that make this Objection, if they be Merchants, know there is very little in it, for that it is not to be expected that twenty Shop-keepers will come into any one Company in a Year; and therefore can have no considerable influence upon the Elections; but if many more should come in, it would be the better for the Nation, and not the worse for the Company, for that all men are lead by their Interest, and it being the common Interest of all that engage in any Trade, that the Trade should be regulated and governed by wise, honest and able men, there is no doubt but most men will Vote for such as they esteem so to be, which is manifest in the East-India-Company, where neither Gentlemen nor Shopkeepers were at first excluded, neither are they yet kept out; any English-man whatsoever being permitted to come into that Company that will buy an Action, paying only five Pounds to the Company for his admission; and yet undeniable experience hath convinced all Gain-sayers in this matter; that Company, since its having had so large and National a Foundation, having likewise had a succession of much better Governours, Deputies and Assistants then ever it had upon that narrow bottom it stood formerly, when none could be admitted to the freedom of that Company, for less than a Fine of Fifty Pounds; and the success hath been answerable, For the first Company settled upon that narrow limitted Interest, although their Stock was larger, then this, decayed and finally came to ruin and destruction; Whereas on the contrary, this being settled on more rational, and consequently more just, as well as more profitable Principles, hath through Gods Goodness thriven and encreased to the trebling of their first Stock.
What concerns the various companies of Europe is relegated to the commerce of each state. This article is by M. V.D.F.
