The above are the principal Italian political economists of the 18th century. The complete collection of all the Italian writers on political economy was edited by Custodi, in 50 volumes 8vo. Melzi, the vice president of the Italian republic, supplied the author with the necessary funds for the undertaking. Custodi was afterwards made by Napoleon counsellor of state of the kingdom of Italy, baron, knight of the. iron crown, and secretary of finance.
In England, the science of political economy made a marked progress in the latter part of the 18th century through the exertions of Adam Smith, who is considered as the founder of the modern school. In 1776 Smith published his great work, with the modest title Enquiry into the Nature and of the Wealth of Nations.' In the first book he treats of the divishin of labour and its wonderful effects, of the real and nominal price of commodities, the wages of labour, the profits of stock, and the rent of land. Book ii. treats of the nature, accumulation, and employment of stock or capital. Book iii. is in a great measure historical, and treats of the different progress of opulence in different nations. Book iv. is employed in discussing the various systems of political economy. Smith did not follow implicitly either the mercantile system or that of the economists ; he showed, in opposition to the latter, that the labour of manufacturers and merchants is productive and is a source of wealth ; but he at the same time considered agriculture as the most productive kind of labour, and the home trade as more productive than foreign trade. These positions have been combated by writers who have adopted many of his general views. On the subject of foreign trade, modern writers on political economy are divided, some maintaining that all foreign trade is advantageous to a country precisely in the degree in which it is profitable to those who are engaged in it, and independently of war and peace and other national vicissitude's; whilst others contend that the immediate interest of the trader is not in all cases a criterion of the permanent national interest.
Adam Smith's doctrine of universal free trade has found many opponents, and is in fact still a theory, for it is not in practice in any country, though iu our own a much nearer approximation to it is made than in any other. His definition of productive and unproductive
labour has been contradicted by Malthus, in his Principles of Political Economy,' and in France by Say and others. Smith considered com merce as an exchange between producers of various commodities, but not as a cause of fresh production by stimulating new wants in the producers. His doctrine of the " natural rate of wages " has also been controverted. ( 3IcCulloch's " edition " of Smith's Wealth of Nations,' with a Biography of the Author, and Notes and Supple mentary Dissertations,' by the editor.) In 1798 Malthus published his 'Essay on the Principle of Popu lation,' in which be demonstrated that " au increase in the means of subsistence is the only sure criterion of a real permanent and beneficial increase in the numbers of any people." He stated that the population never falls below the level of subsistence, but that it tends, on the contrary, always to exceed it, and is only kept down by moral or physical checks. A consequence of these positions is, that any artificial stimulus to the increase of population by premiums on marriage, laws against celibacy, &c., is injudicious. These inferences had been antici pated by the Italian political economists Ortes and Ricci.
In France, J. B. Say published, in 1802, TraitaS d'Ecouomie Politique,' in which he expounded the principles of Adam Smith, adding many original and important illustrations, especially ou the nature and causes of gluts resulting from over-production, which, be maintained, can only be partial and temporary, and can never occur in every species of com modity at once. Say has written several other works on political economy. Gamier also translated the work of Smith into French.
In 1815 appeared an Fasay on the Application of Capital to Land,' by Mr. West, Oxford, 1815 ; and about the same time 3Ialthus published 'An Enquiry into the Nature and Progress of Rent,' a subject which was afterwards investigated and expounded by Mr. Ricardo, in his Principles of Political Economy and Taxation,' published in 1817, and which is generally considered as the most important work on political economy since the time of Adam Smith. [ItIcanno, iu Broo. Div.] The writings of James Mill were also valuable contributions to the literature .of the science.