Cambridge History of American Literature: volume 3
Trent, William Peterfield, 1862-1939., Erskine, John, 1879-1951., Sherman, Stuart Pratt, 1881-1926., Van Doren, Carl, 1885-1950., Ed.

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[428] upon the Act of Parliament whereby a Duty is Laid of 6d. Sterving per Gallon on Molasses, etc., Shewing some of the many Inconveniences Necessarily Resulting from the Operation of the said Act (Boston, 1764); Reasons against the renewal of the sugar Act as it will be Prejudicial to the trade not only of the Northern colonies but to those of great Britain also (Boston, 1764); and Thomas Fitch's Reasons why the British colonies in America should not be charged with internal taxes (New Haven, 1764). In fact, the only tract of this period not directly connected with taxation was The commercial conduct of the Province of New York considered by ‘A Linen Draper’ (New York, 1767), which consisted of a plea to establish manufactures. With the imposition of the stamp taxes by the mother country in the following years there came a flood of controversial literature which was, however, so overwhelmingly political in character as to call for no detailed comment here.

In the pre-Revolutionary literature there stands out only one prominent name in American economic discussion, Benjamin Franklin.¹ His contributions represent the common-sense reactions of a powerful mind to the problems of the day, reinforced later on by general reflections suggested by the Physiocrats and Adam Smith. In his first work on paper currency, referred to above, Franklin was influenced by Petty in selecting labour, rather than silver, as the best measure of value. In his Observations concerning the increase of mankind (1751) he shows himself a forerunner of Malthus, and incidentally points out why wages must continue to be high in a country where there is an abundance of free land. In The interest of great Britain considered with regard to her colonies and the acquisition of Canada and Guadaloupe (1760) he emphasizes the principle of division of labour, and explains why manufacturing industry is difficult to introduce where the profits of agriculture are high. In On the price of corn and management of the poor (1767) he elucidates the reasons why export taxes are injurious and contends that ‘The best way to do good to the poor is not making them easy in poverty, but leading or driving them out of it.’ In his Positions to be examined concerning national wealth (1769) he considers, and gives partial adherence to, the Physiocratic doctrine. In his Reflections on the Augmentation of wages which will be Occa-