James Denham-Steuart

Sir James Denham-Steuart, 7th Baronet (21 October 1712 – 26 November 1780) was a British economist.

Life

He was the only son of Sir James Steuart, Solicitor General for Scotland under Queen Anne and George I, and was born in Edinburgh. After graduating from the University of Edinburgh he was admitted to the Scottish bar at the age of twenty-four.

He then spent some years on the Continent, and while in Rome entered into relations with the Young Pretender, Charles Edward Stuart. He was in Edinburgh in 1745, and so compromised himself that, after the battle of Culloden, he found it necessary to return to the Continent, where he remained until 1763. It was not until 1771 that he was fully pardoned for any complicity he may have had in the rebellion. He died at his family seat, Coltness, in Lanarkshire.

Works

In 1767 he published "Inquiry into the Principles of Political Oeconomy". It was the most complete and systematic survey of the science from the point of view of moderate mercantilism which had appeared in England and indeed the first fully-fledged economics treatise to appear anywhere. Although often regarded as part of the Scottish Enlightenment which produced David Hume and Adam Smith, Steuart's economics hark back to the earlier Mercantilist era. More accurately, while on the Continent, Steuart had imbibed the sophisticated Enlightenment Mercantilism that was in the air -- particularly, German Neo-Cameralism -- which combined a legal-statist approach with a "natural" approach to economics. Although a promoter of old fashioned export subsidies and import tariffs, Steuart added several elements that tied this in with a more general theory of economic development. Unlike the old Mercantilists, he recognized Richard Cantillon's "population-subsistence" dynamics. He also introduced the concept of diminishing returns to land. Steuart juggled two interesting theories of price -- a long-run labor theory of value and a short-run "demand-and-supply" theory. Indeed, Steuart was among the first to introduce the term "equilibrium". Thus, Steuart was an important forerunner of both the Classical and Neoclassical schools in many respects. Steuart also provided one of the more able statements of the real bills doctrine of money.

Although the work appears to have been well received its impact was overshadowed by Smith's "Wealth of Nations" that was published only nine years later. It is interesting to note that Adam Smith never quotes or mentions Steuart's book, although he was acquainted with him. Moreover, the attacks on Mercantilism in the Wealth of Nations appear to have been mainly directed against Steuart. As Smith appears to have thought that Steuart's conversation was better than his book, he probably wished to keep clear of controversy with him.

Steuart's book was received much more favourably a century later by the members of the German Historical School.

Literature

*"The Works, Political, Metaphysical and Chronological, of the late Sir James Steuart of Coltness, Bart., now first collected, with Anecdotes of the Author, by his Son, General Sir James Denham Steuart", were published in 6 vols 8vo in 1805. Besides the "Inquiry" they include:
*"A Dissertation upon the Doctrine and Principles of Money applied to the German Coin" (1758)
*"Apologie du sentiment de M. le Chevalier Newton sur l'ancienne chronologie des Grecs" (4to, Frankfort-on-the-Main, 1757)
*"The Principles of Money applied to the Present State ef Bengal, published at the request of the East India Company" (4to, 1772)
*"A Dissertation on the Policy of Grain" (1783)
*"Plan for introducing Uniformity in Weights and Measures within the Limits of the British Empire" (1790)
*"Observations on Beattie's Essay on Truth"
*"A Dissertation concerning the Motive of Obedience to the Law of God", and other treatises.

econdary sources

*Hutchison, Terence (1988) - "Before Adam Smith: the emergence of political economy".
*Monroe, Arthur Eli (1923) - "Monetary theory before Adam Smith"
*Sen, Samar Ranjan (1957) - "The economics of Sir James Steuart"
*Skinner, Andrew (1966) - "Introduction" in "An Inquiry into the Principles of Political Oeconomy", (2 vols.) ed. by A. Skinner for the Scottish Economic Society.
*Vickers, Douglas (1959) - "Studies in the Theory of Money, 1690-1776"
*Viner, Jacob (1937) - "Studies in the Theory of International Trade"

External reference

* [http://cepa.newschool.edu/het/profiles/steuart.htm Profile of Sir James Denham Steuart] at the [http://cepa.newschool.edu/het/home.htm History of Economic Thought website] .----