PAINE, THOMAS (1737-1809), born at Thetford (Norfolk), died in New York; held an appointment in the excise, on his dismissal from which in 1774 he went to Philadelphia; there, through introductions from Franklin, he made friends and obtained employment in journalism. He took an active part in the American War of Independence, and in 1777 was made secretary to the committee of foreign affairs. His Crises (1776-83) were acknowledged by Washington and others as having powerfully assisted the cause of separation. Leaving America in 1787, he visited Paris and London, where he published his Rights of Man (1791 and 1792), a reply to Burke's Reflexions on the French Revolution. thereupon elected to the convention, and subsequently to the committee for framing a new constitution. His association with the Girondins aroused the enmity of Marat and Robespierre, and he spent the greater part of 1794 in prison, where he completed his Age of Reason. He returned to America in 1802.

"

He was

Paine's merits and defects are those of a partisan. In his economic, as in his political and religious writings, his aim is not the complete investigation of a subject with a view to the discovery of truth, but the application of foregone conclusions to particular cases; he displays, however, moral though not intellectual sincerity, along with much originality and acuteness of observation. His style is clear and vigorous, and he is a master of telling and suggestive phrases, like his definition of government as "a mode rendered necessary by the inability of moral virtue to govern the world" (Works, vol. i. p. 71), and his anticipation of the spirit of the Monroe doctrine-"Nothing but continental authority can regulate continental matters (Works, vol. i. p. 107). The Crises (1776-83), the Forester's Letters (1776), and the Letter to Raynal (1782), which deal with the subject of colonial and imperial relations, are still of interest as an exposition of the disadvantages arising from too close a connexion between the mother country and a fully developed colony. But Paine was obviously mistaken in regarding political independence as the only means of freeing colonial trade from vexatious restrictions, and in denying that the colonies had derived any benefit from British protection during the wars of the 18th century. How little he realised the force of the imperial idea was shown by his attempt to prove that Canada and Halifax were possessions useless to England, and inevitably destined to Amalgamation with the States (Works, vol. ii.

pp. 123-5). The value of another group of works, treating of administration and its relation to economics, and including Common Sense (1776), Prospects on the Rubicon (1787), The Rights of Man (1791), Address to the Addressers (1792), and the Dissertation on the First Principles of Government (1795), is diminished by the prevalent fallacy that " every civil right grows out of a natural right" (Works, vol. ii. p. 307). Paine, however, is in harmony with modern thought in his refusal to identify society with government (Works, vol. i. p. 69), in his support of the principle, first perceived by the PHYSIOCRATS, that the prosperity of a commercial nation is

regulated by the prosperity of its rivals (Works,

vol. ii. p. 457), and in his condemnation of illicit trade (Works, vol. i. p. 379). He was the author of several ingenious schemes of taxation, including one for the abolition of the poor-rate (Rights of Man, pt. ii., 1792). In the Dissertation on Government, the Affairs of the Bank, and Paper Money (1786), according to Mr. Conway, he overwhelms "the whole brood of heresies-State privilege, legal tender, repudiation, retrospective laws" (Life, vol. i. p. 217). But, like some other advocates of "honest money," Paine is not free from the heresy of regarding abundant currency as a disadvantage (Works, vol. i. p. 226). Among his other works may be mentioned the Letters (1779), in which he argues for the "natural right' of the United States to the Newfoundland fisheries; Public Good (1780), dealing with the question of state sovereignty; and Agrarian Justice (1797), opposing the system of landed property, and containing a proposal for state compensation in money to those debarred from the possession of land.

PALE (IRELAND) denoted the district within which direct English law and control existed. First used in the 15th century, it applied to the greater part of the four counties of Dublin, Louth, Meath, and Kildare. The Statute of Drogheda (1494) provided that the pale should be surrounded by a double fence and ditch to prevent marauding incursions by the Irish. The chief points in this boundary were Dundalk, Kells, Naas, and Tallaght.

[Hardiman in Tracts on Ireland, vol. ii. (1841), issued by the Archæological Society.-Bagwell, Ireland under the Tudors, vol. i. p. 123.]

C. F. B.

PALEY, WILLIAM (1743-1805). Paley was senior wrangler 1763, fellow of Christ's College, Cambridge, 1766, chaplain of Bishop Law at Carlisle, 1769. After holding various livings he became archdeacon of Carlisle (1782), the title by which he is best known.

He wrote at greatest length on natural theology and the evidences of Christianity (Horae Paulinae 1790, Evidences of Christianity, 1794, Natural Theology, 1802). The two writings that bear

most on economics are the Principles of Moral and Political Philosophy (1785) and the tract, Reasons for Contentment addressed to the Labouring Part of the British Public (1793). This tract was written at a time when there was war with France together with depression of trade and general suffering, when there was much public agitation in favour of reform, with much straining of the laws against sedition, when booksellers great and small were prosecuted for selling Paine's Rights of Man, "that being treason in duodecimo which is innocent in quarto" (Windham). Paley tells the grumbling mob that they should not make comparisons, but do their own duty and mind their own concerns (4, 5); let them consider that the same law which protects the rich in their property protects the poor man in his, and as the poor man is the weaker he needs the protection more (5, 6). Besides, the labouring man has as much of the real pleasures and blessings of life as the rich, without the care and the temptations (7-11, cp. 14, 15). Indeed in security and certainty of provision for his family the poor is superior (11, 12). Service for wages Paley takes to be "the best way of conducting business, because all nations have adopted it" (13), and it is as equitably regulated in England as anywhere (13). "I have no propensity to envy any one, least of all the rich and great; but if I were disposed to this weakness, the subject of my envy would be a healthy young man in full possession of his strength and faculties, going forth in a morning to work for his wife and children, or bringing them home his wages at night" (18). Finally changes of condition that break up our ordinary habits of living never can be productive of happiness," "it is not only to venture out to sea in a storm but to venture for nothing" (22). This pamphlet was meant quite seriously, and attracted some attention.

66

Paley seems not to have studied either HUME or Adam SMITH. In his Moral and Political Philosophy, he borrows his utilitarian doctrine from Abraham Tucker's Light of Nature Pursued (1768-78). He is on the whole a defender of things as they are, though this sometimes leads him into hazardous arguments. He defends the institution of property by urging that it increases the produce of the earth, preserves it to maturity, prevents contests about it, and "improves the conveniency of living," by allowing division of employments and encouraging art and invention (b. ch. ii.). "The poorest and the worst provided, in countries where property and the consequences of property prevail, are in a better situation with respect to food, raiment, houses, and what are called the necessaries of life, than any are in places where most things remain in common" (ib. ch. ii.). The foundation of the right of property is not, as LOCKE said, labour, but "the law of the land," and that is founded altimately on "the will of God" (ch. iv.). The special chapters on contracts of sale, hazard, inconsumable property, lending, and labour, ch. vi.-xiv., have little or no economic value, though ch. viii., on general consequences, has some points neatly put in the style of BASTIAT'S Popular Sophisms.

In the chapters on charity (pt. ii. ch. i.-v.) there are instances of arguments reaching farther than the author intended; e.g. "it is a mistake to suppose that the rich man maintains his servants, tradesmen, tenants, and labourers; the truth is they maintain him." "All that he does is to distribute what others produce, which is the least part of the business." One chapter (v.) on pecuniary bounty can hardly be reconciled with the Address to Labourers; "the dread of want" is included among the evils of poverty, and the plea that "the poor do not suffer so much as we imagine" is rejected: "the question is not how unhappy any one is, but how much more happy we can make him."

The section (bk. iii. pt. iii.) devoted to marriage is more of a sermon than an economic discourse on population. We need of course to remember that the book is not professedly economic. The subject of "population and provision" is discussed by itself in a later section, bk. vi. ch. xi.). Paley thinks that on the whole "twice the number of inhabitants will produce double the quantity of happiness." "It may and ought to be assumed in all political deliberations that a larger portion of happiness is enjoyed amongst ten persons possessing the means of healthy subsistence than can be produced by five persons under every advantage of power, affluence, and luxury."

"

Consequently the decay of population is the greatest evil a state can suffer, and the improvement of it the object which ought in all countries to be aimed at in preference to every other political purpose whatever." He allows "the tendency of nature, in the human species,1 towards a continual increase of its numbers." "The two principles upon which population seems primarily to depend, the fecundity of the species and the capacity of the soil, would perhaps in all countries enable it to proceed much further than it has yet advanced." "The condition most favourable to population is that of a laborious, frugal people ministering to the demands of an opulent luxurious nation, because this situation, whilst it leaves them every advantage of luxury, exempts them from the evils which naturally accompany its admission into any country." This is the passage criticised by MALTHUS (Essay, iv. xiii.); Malthus quotes a passage in Paley's Natural Theology (ch. xxvi.) where Paley seems to modify his views. He had (in the Mor. and Pol. Phil.) regarded luxury as bad for the luxurious, though good for those that supplied them; "the business of one half of mankind is to set the other half at work" (vi. xi.). In the Natural Theology he says that "mankind will in every country breed up to a certain point of distress," a point which will be high or low according to the country. He also accepts the statements of Malthus (the author of "a late treatise upon population") in regard to geometrical increase. Malthus draws the inference that Paley must now admit luxury to be a benefit to the luxurious themselves, and the wide diffusion of luxury to be a safeguard against overpopulation, in so far as luxury raises the "point of distress higher and produces a check on

PALISSY, BERNARD DE (1500-1589), died a Protestant prisoner in the Bastile. Celebrated for his artistic pottery, his figulines rustiques as he called them, he enjoyed for a time the protection of the kings of France, after having exhausted his own slender means, and worked for sixteen years, to discover the composition of the enamels used in Italy.

Though a poor and illiterate man, he left several works remarkable for clear insight into natural and economic phenomena. In geology he was in many respects a harbinger of modern science. In his Recepte véritable pour apprendre aux hommes à multiplier leurs trésors (1563), he gives useful advice to agriculturists on the use of manures-their object is to return to the soil the elements which have been exhausted by the crops. "Philosophy," he affirms, should lead and direct agriculture. In his Traité des Métaux et Alchimie, (1580), a dialogue between 'Théorique" and "Practique," he ridicules the futile researches of

alchemists, who, he said, should be called "antiphilosophers"; according to the opinion of Practique: "A pestilence, a war, or a famine would be less injurious than six men who knew how to make gold in great quantity. If once their process were divulged, everybody would despise tillage, and land would remain a waste... Gold would become so depreciated that nobody would give bread or wine in exchange." This view, so strikingly in advance of the times, was, a century

later, again expressed by LEIBNIZ in his Oedipus Chymicus. Palissy's works were republished in 1880, one vol. [Henry Morley, Palissy the Potter, London, 1852. E. Dupuy, B. Palissy, l'homme, l'artiste, le savant, et l'écrivain, Paris, 1902.] E. ca. PALMER, J. HORSLEY (1780-1858), for fifty years one of the most eminent and esteemed of English merchants, became a director of the Bank of England in 1811, and governor for the three years 1830-1832.

Palmer gave an able explanation of the working of the system of the bank (see BANKING; BK. of ENG.) before the committee of 1832 on the bank charter. He further stated his views in The Causes

and Consequences of the Pressure upon the Money Market, with a Statement of the Action of the Bank of England from 1st October 1833 to 27th December 1836, London, 1837, 8vo, which called forth a reply from S. Jones LOYD (q.v.), Reflections suggested, etc., 1837, republished in Tracts, 1858. Palmer defended his position in a Reply to the Reflections, etc., 1837, 8vo. His views are further criticised in Tooke's History of Prices, vol. iii. pp. 91-114. Palmer also wrote Reasons against the proposed Indian Joint-Stock Bank, London, 1836, 8vo.

[Times, 11th February 1858.-Annual Register, 1858.]

H. E. E.

PALMERI, NICOLO, born at Termini, Sicily (end of 18th century, died July 1837). His liberal principles prevented him from seeking

public employment. He lived in obscurity, devoting his life to study.

He was an economist of the school of Adam SMITH. Besides many minor writings published in reviews and newspapers, he wrote an Historical Résumé of Sicily, and an essay in which he demonstrates the wretched state of Sicilian agriculture, recommending, with a courage unusual for the epoch and country in which he lived, the opening of the Sicilian ports to free trade with foreign countries as the only remedy for existing evils. Even in our times, when the Sicilian problem, far from being solved, or even appeased, has grown more acute and alarming, the remedies proposed by Palmeri are still worthy of consideration. His essay, which fell accidentally into the hands of Francesco Ferrara, induced the latter to apply himself to economics. (See The Life and the Doctrine of Francesco Ferrara, by A. Bertolini, Bari, 1895).

Saggio delle cause e delle angustie attuali dell'economia agraria della Sicilia, Palermo, 1826.

A. B.

Born

PALMIERI, GIUSEPPE (1721-1794). Neapolitan family; was an economist, financier, in Martignano, province of Lecce; of a noble and statesman. He began life as a soldier, and then became a disciple of GENOVESI; he again returned to military life, in which his career was brilliant, but at thirty-eight he finally abandoned it and devoted himself to study, agriculture, and public life. In 1788 he was charged with the reorganisation of the finance of the province of Lecce, and in 1791 was made director of the board of finance in the kingdom of Naples.

As a statesman, Palmieri tried to apply the principles of economic science to public administration; he rescued the latter from many abuses, promoted the abolition of turnpike tolls and feudal rights, and together with FILANGIERI assisted greatly in the formation of the Neapolitan customs tariff of 1788, which was a great step towards simplifying taxation and a rational organisation of the customs.

His views on commerce are of especial importance. He advocates moderate protection to commerce and agriculture; he admits the advantages of free trade applied universallyabsolute freedom for commerce in the interior; but he suggests for Italy limits to the freedom of foreign trade as a defence against foreign competition, and to assist the promotion of national industries as other countries do.

He combats the doctrines of the PHYSIOCRATS, especially with respect to the importance of foreign trade, which he maintains to be a true source of wealth for the nation. He was the soul of the theoretic and practical reform of the study of economics and finance in the kingdom of Naples towards the end of the 18th century.

He discussed the general theory of taxation, as well as detailed questions of finance, and

originated and encouraged many interesting discussions on the errors and prejudices of existing systems and necessary financial reforms. He minutely analyses taxation, preferring, on the whole, indirect taxation. This opinion had many supporters in his day, but for variety of observation, critical acumen, largeness of ideas, and diversity of argument, Palmieri far surpasses all other writers of his time. His works gave a great impulse to the scientific life of his day, and proposed improvements into public administration by showing the baneful effects of the existing system on trade and economics.

The fundamental conception of the financial reforms suggested, and to a great extent carried out by him, consists in greatly simplifying the system of taxation combined with freedom to trade, agriculture, and traffic. Abolition of internal customs, reduction of frontier customs, particularly of those on export of goods, reorganisation of customs tariffs and reform of the crown estates, were the measures proposed by Palmieri for the improvement of the economic position and finances of the kingdom of Naples.

Palmieri wrote, Riflessioni sulla pubblica felicità relativamente al regno di Napoli, Napoli, 1787.Pensieri economici relativi al regno di Napoli, Napoli, 1789.-Osservazioni su varii articoli riguardanti la pubblica economia, Napoli, 1790.— Lettera sulla nuova tariffa doganale, Napoli, 1790. -Della richezza nazionale.-Napoli, 1792.

[See on Palmieri, among others, Ricca Salerno, Storia delle dottrine finanziarie in Italia, 2nd edition, Palermo, 1896.-Fornari, Delle teorie economiche nelle provincie Napoletane, vol. ii., Milan, 1888.-Gobbi, La concorrenza estera e gli antichi economisti italiani, Milan, 1884.] U. R.

In

PALMIERI, MATTEO (1405-1475). his treatise Della vita civile (Florence, 1529) Palmieri deals with political economy and finance. He supports proportional and condemns progressive taxation proposed at that time in Florence, as he considers diversity of fortune is in the order of nature, and should

not be altered by taxation. The basis of Palmieri's opinion is that taxation is an obligation to the state, imposed on all citizens in return for the assistance given by the state in the formation of private fortunes, and that it should be distributed among them in proportion to wealth, so that property may bear its part without changing the natural distribution of wealth. This is a very remarkable conception for those days, as it shows that even then the most important financial controversies turned on this point, and it offers a certain analogy to the modern doctrine of equality

of sacrifice.

57

PANIC, COMMERCIAL. See CRISES. PANNAGE. Originally this word seems to have meant simply the food, acorns, beech mast, etc., which pigs could find for themselves in a wood. Generally, however, in mediaval records, it means either the right of feeding pigs in a particular wood, or the annual rent paid for that right. Thus, the statement, that in a certain wood there is pannage for twenty pigs, means that twenty pigs could pick up a living there: A. B. has pannage for twenty pigs in such a wood, means, that A. B. has the right to turn out twenty pigs, to find a living there; while in the forestofficer's accounts the word pannage would mean the rent paid by A. B. for this right.

[Pipe Roll Society's publications, vol. iii.— Cowel's Interpreter, London.]

A. E. S.

PAOLETTI, FERDINANDO (1717-1801), parish priest of S. Donnino at Villa Magno, near Florence, was an intelligent practical agriculturist and an excellent writer on that subject.

A follower of the PHYSIOCRATS, Paoletti published, 1769, Pensieri sopra l'agricoltura, part of which CUSTODI inserted in his Raccolta (see Scrittori classici di economia politica, modern part, t. xx.), and, 1772, I veri mezzi di render felici le società, in which, as every physiocrat in Italy as well as in France did in his time, he brought forward free-trade ideas on the corntrade. His belief in the good effects of free-trade induced him to reproach BANDINI for his prejudice against public stores of produce (see GRENIERS D'ABONDANCE). Yet he supported, in his Veri mezzi, taxes on luxuries, the idea of aiding the exportation of commodities not of the first necessity such as oil, wine, etc.; and in his Pensieri protective duties to encourage agriculture. Cossa therefore (Introduction, p. 269) rightly places Paoletti among those who, though accepting the new theories of the physiocrats, could not altogether give up the old ones of the mercantilists. Pensieri sopra l'agricoltura, Firenze, 1769, 2nd ed. 1789.- Veri mezzi di render felici le società, Firenze, 1772 (in Raccolta del Custodi). A. B.

PAOLINI, GIOVANO BATTISTA (end of 18th century). Born in Pistoja, an eclectic writer fixed on absolute and universal principles, but on economics, his idea is that laws cannot be

must be subservient to conditions of time and

place, so that under different circumstances any system may be advisable. In foreign commerce Paolini recommends "legitimate," not "absolute freedom "-that.is, "a right to cultivate, work, transport, export, and introduce such goods as are useful to the whole countrythis freedom to be limited and regulated by laws and duties wherever the good of the of such freedom it is necessary to consider the country demands it. Hence in the application existing circumstances of the country," hence also "certain economic laws might be good for ancient but bad for modern nations.'

Paolini wrote, Della legittima libertà del com

58

PAOLINO, a Minorite of Venice, lived in the first half of the 14th century. In the solitude of the monastery he devoted himself to study the political and economical problems of society with brilliant talent, but also with the defects common to his age and condition, namely a complete submission to the doctrines of Thomas AQUINAS (q.v.), and a total want of practical knowledge of men and things.

His name and work would probably not have been known had not Prof. Mussafia, an Italian philologist teaching at Vienna, published, in 1868, with notes, the Trattato di Fra Paolino, in which he speaks of the family and of the state, laying down rules for their moral encouragement, as the many writers De regimine, institutione, eruditione Principum of that time had done, among whom the poet Petrarch (1304-74), De republica optime administranda; Egidio Colonna (1247-1316), De regimine Principum (anterior to Paolino) among the politicians; and Andrea d'Isernia (1220-1316), among the jurisconsults, are worthy of being mentioned.

Trattato de regimine rectoris (1313-1315), Vienna, 1868.

A. B.

PAPER BLOCKADE. A phrase used to denote a blockade maintained by an insufficient force or by no force at all. INTERNATIONAL LAW requires that a belligerent power, which claims the right of capturing all vessels attempting to run in or out of an enemy's port, shall have rendered ingress and egress dangerous by sending a ship or ships of war to cruise off the port in question, in such a position and in such numbers that they are almost certain to intercept all who approach (see BLOCKADE). This is the only kind of blockade neutral states are bound to submit to. The fourth article of the DECLARATION OF

In

PARIS laid down that "blockades to be binding must be effective, that is to say sufficient really to prevent access to the coast of the enemy.' In drawing up this rule the statesmen of the Congress of Paris of 1856 did but formulate an accepted principle. The ARMED NEUTRALITY (q.v.) of 1780 had declared not only that there must be evident danger in entering the blockaded port from the proximity of the blockading squadron, but also that the vessels which composed it must be stationary. 1800 the second armed neutrality added that ships were entitled to a warning by the commander of the force which closed the port, and might not be captured unless they made an attempt to enter after having been warned. The great agreement of 1856 was silent as to these fanciful restraints upon the undoubted right of a belligerent; but gave the sanction of express consent to the just and reasonable rule which forbids a power at war to interfere with neutral trade by merely forbidding com

The

merce with its enemy's ports. This had been done often enough in medieval times, and was not unknown as late as the 18th century. But the great events of the close of that epoch, and the growth of a reasoned system of maritime law from the decisions of the prize courts of the leading nations of Europe and America, settled definitely that a belligerent could not enjoy the rights against neutrals given by blockade without fulfilling the obligation of maintaining his blockade by a sufficient naval force. civilised world has accepted this principle for more than a century. The violations of it, ordered by Napoleon's Berlin and Milan decrees, and the retaliatory British Orders in Council, were justified on both sides as reprisals for the illegal violence of the enemy (see CONTINENTAL SYSTEM; ORDERS IN COUNCIL). But no attempt was made to show international law. The statement that Great that they were part and parcel of ordinary Britain upheld paper blockades up to the time of the declaration of Paris is entirely destitute of foundation (Calvo, Droit International, iv. 177). The slightest knowledge of the decision of Lord Stowell, our great judge of the Courts of Admiralty during the long war with Napoleon, would be sufficient to dispel this illusion. Our own country is at one with others in insisting upon the wholesome rule that belligerent ports cannot be hermetically sealed against the commerce of the world by a mere paper decree. The great economic importance, to a country situated as Great Britain is, of freedom of access-where possible-to the ports of the world, needs no comment.

[Fauchille, Du Blocus Maritime, Paris, 1882.Manning, Law of Nations, i., edited by Amos, bk. v. ch. vi., London, 1875.-Lawrence, Principles of International Law, pt. iv. ch. v., Boston and London, 1895.-Case of the Betsey in C. Robinson's Admiralty Reports, i. 93.]

T. J. L.

PAPER MONEY. See MONEY. PAPER, TAXES ON, fall under two heads, those on paper as a manufactured article, and those on newspapers and advertisements. (1) The tax on paper, varying according to quality, was imposed in 1712, increased in 1714; it included a duty of 1s. a square yard, in addition to the ordinary duty, on all printed, painted, or stained paper used for hangings or other purposes. The yield in 1793 was in Great Britain £83,079, and, the tax being raised in 1794 and doubled in 1801, while the manufacture was greatly improved, by 1802 the yield had risen to £268,000 for England alone, by 1815 to £476,019 for Great Britain. The complications attending the incidence and collection of the duties, apart from the social disadvantages produced by taxes on knowledge, led in 1836 to the consolidation and simplification of the tax, which was fixed at 1d. a pound on all sorts of paper alike, except the