Freedom In Transactions


Filed Under : Free Trade

In 1848, a French legislator tried to tell his countrymen how the God-given self-interest of each person benefits the welfare of the group

On entering Paris, which I had come to visit, I said to myself—Here are a million of human beings who would all die in a short time if provisions of every kind ceased to flow towards this great metropolis. Imagination is baffled when it tries to appreciate the vast multiplicity of commodities which must enter tomorrow through the barriers in order to preserve the inhabitants from falling a prey to the convulsions of famine, rebellion and pillage. And yet all sleep at this moment, and their peaceful slumbers are not disturbed for a single instant by the prospect of such a frightful catastrophe. On the other hand, eighty departments have been labouring today, without concert, without any mutual understanding, for the provisioning of Paris. How does each succeeding day bring what is wanted, nothing more, nothing less, to so gigantic a market? What, then, is the ingenious and secret power which governs the astonishing regularity of movements so complicated, a regularity in which everybody has implicit faith, although happiness and life itself are at stake? That power is an absolute principle, the principle of freedom in transactions. We have faith in that inward light which Providence has placed in the heart of all men, and to which He has confided the preservation and indefinite amelioration of our species, namely a regard to personal interest—since we must give it its right name—a principle so active, so vigilant, so foreseeing, when it is free in its action. In what situation, I would ask, would the inhabitants of Paris be if a minister should take it into his head to substitute for this power the combinations of his own genius, however superior we might suppose them to be—if he thought to subject to his supreme direction this prodigious mechanism, to hold the springs of it in his hands, to decide by whom, or in what manner, or on what conditions, everything needed should be produced, transported, exchanged and consumed? Truly, there may be much suffering within the walls of Paris—poverty, despair, perhaps starvation, causing more tears to flow than ardent charity is able to dry up; but I affirm that it is probable, nay, that it is certain, that the arbitrary intervention of government would multiply infinitely those sufferings, and spread over all our fellow-citizens those evils which at present affect only a small number of them. []

This extract is from Social Fallacies, Register Publishing Company edition, 1944.

Force or Reason

Do you not see, first, that—as a mental abstract—physical force is directly opposed to morality; and, secondly, that it practically drives out of existence the moral forces? How can an act done under compulsion have any moral element in it, seeing that what is moral is the free act of an intelligent being? If you tie a man’s hands there is nothing moral about his not committing murder. Such an abstaining from murder is a mechanical act; and just the same in kind, though less in degree, are all the acts which men are compelled to do under penalties imposed upon them by their fellow-men. Those who would drive their fellow-men into the performance of any good actions do not see that the very elements of morality—the free act following on the free choice—are as much absent in those upon whom they practice their legislation as in a flock of sheep penned in by hurdles. You cannot see too clearly that force and reason—which last is the essence of the moral act—are at the two opposite poles. When you act by reason you are not acting under the compulsion of other men; when you act under compulsion you are not acting under the guidance of reason. The one is a force within you and the other is a force without. Moreover, physical force in a man’s hand is an instrument of such brutal character that its very nature destroys and excludes the kindlier or better qualities of human nature. The man who compels his neighbor is not the man who reasons with and convinces him, who seeks to influence him by example, who rouses him to make exertions to save himself.

Auberon Herbert (1838-1906)


May 1955

comments powered by Disqus


* indicates required


November 2014

It's been 40 years since F. A. Hayek received his Nobel Prize. His insights, particularly on the distribution of knowledge and the impossibility of economic planning, remain hugely important today. In this issue, we look back on the influence of his work. Max Borders and Craig Biddle debate whether liberty must be defended from one absolute foundation, further reflections on Scottish secession, and how technology is already changing our world for the better--including how robots, despite the unease they cause, will only accelerate this process.
Download Free PDF