Ferdinando Galiani (1728-1787): What are the Roots of his Anti-Physiocratic Attitude?
p. 107-137
Texte intégral
1The present chapter aims at examining some aspects of Galiani’s criticism to Physiocracy. In order to do so, I try to demonstrate that the philosophy of history of Giambattista Vico is one of the roots of his scientific procedure. The importance of the thought of Vico in the analysis of Galiani had been recalled by Nicolini and Tagliacozzo and, partly, also by Einaudi and Diaz, but it seems quite put aside in recent years1.
2Vico’s historicism is far from the rationalism of Physiocrats, and this is an important basis of the criticism of Galiani. His Della Moneta, published anonymously in Naples in 1751, when Galiani was very young, follows a Vichian approach to its basic concepts (namely, the origin of money). Later, in the decade he spent in Paris as the Secretary of the Kingdom of Naples’s Embassy, Galiani would come into contact with the culture of Enlightenment and Physiocracy. Again, his criticism to the free trade propounded by the Physiocrats has one of its roots just in the thought of Vico, as shown in the second part of the paper.
3In the first part I briefly describe the historical and cultural context where the Dialogues sur le commerce des bleds (since now Dialogues) was born, and the structure of the argument. Impossibility of directly applying a theory to all countries and necessity of considering which social groups are advantaged or disadvantaged by different rules appear as the basic issues of the proposals of the Dialogues. In the second part I recall some themes of the first to clear the vision of history and nature of Galiani. There also references to Della Moneta concerning value, alzamento2 and interest are introduced. The comparison with some points of the third New Science of Vico allows us to draw conclusions about the philosophy of history of Galiani and its incompatibility with the Physiocratic theories.
The Dialogues and their historical and cultural background
Genesis and publication of the Dialogues
4In January 1759 Tanucci appoints Galiani as the Secretary of the Embassy of the Kingdom of Naples in Paris, where he would remain for ten years. The Dialogues were written between November 1768 and June 1769. Galiani, called back in Naples, left Paris on 30 June. In the meanwhile he wrote the Eighth Dialogue. The Ninth was never published, perhaps never written3. The manuscript was revised by Diderot and M.e d’Epinay, protected by the lieutenant de police Sartine, who partly modified the text4. In December 1769 Terray took the place of Maynon d’Invault as Contrôleur général and Sartine gave the permission of publishing the Dialogues, printed by Merlin in Paris, even though “Londres” is indicated. The book enjoyed an immediate success and three releases.
5The period of preparation of the book, and the debate about it, cover a time span from the Neapolitan famine of 1763-64 to the crowning of Louis XVI (1774) and the coming of Turgot, followed by the guerre des farines and the disgrace de Turgot (1776).
6Interestingly, in the previous years Galiani, in accordance with the more advanced culture, is favourable to the free trade. In a letter to Tanucci of 25 July 1764, a few days after its official enforcement, he comments the Edit by de l’Averdy which establishes the international free trade of grain5. He writes that in France the truth has been recognized: the only defense against famine is the free trade, which enhances farming. The free export of grain from France will damage the commerce of Naples, if the Kingdom does not try to copy it. Also in theMemoria of the end of 1765 Storia dell’avvenuto sugli editti del libero commercio de’ grani in Francia promulgati nel 1763 e 17646 and in two others letters to Tanucci (21 September 1767; 2 November 17677) he discusses about the persistent good effect in France of freedom in agriculture and bakery. In theMemoriahe singles out the dispute between the intendenti, who were losing their privileges and rents, and the Parlaments, whose deputies often were proprietaires damaged by regulation. In the letters he says that the rules in France are the best, just as in Naples are the worst (21 September 1767); and notes that in France the hoarders who buy from farmers to sell to bakers with enormous profit have disappeared (2 November 1767).
7His positive vision of the free trade would clash against facts. Indeed the liberalization, begun in 1763-648, failed in 1768-699, just when Galiani was working on the Dialogues, and would have been reproposed by Turgot, with the known result10.
8Not only was liberalization a strategy of political economy, but also it engendered a paramount process of socioeconomic and intellectual change: subsistence was no longer public matter, and uncertainty and insecurity could begin to spread. The opposition came from the side of “intendenti”, and also from many merchants and landlords afraid of novelties. French Parlaments were divided: several of them were part of the liberal lobby, whereas many others (e. g. Paris and Rouen) were against, since feared riots after the abolition of the “magazzini di abbondanza” (warehouses managed by public authorities, where the grain was stored and sold at administered price). Between 1765 and 1768, due to the bad climate there was a dearth of grain, prices soared, real wages and employment dropped, and popular rage bursted out. The famine plot persuasion, due also to the assistance ensured to Paris (for which a special fund of king’s grain had been constituted), undermined the confidence in public authorities until the fall of the ancien régime. On 22 December 1769 the moderate Terray became Contrôleur général and, even though he personally was not so far from liberal thesis, in 1770-1 he could not help abandoning liberalization11.
The debate on the free trade in the period of Dialogues
9The debate is really complex. Initially, even Diderot defends the free trade. In 1767 he reads L’Ordre naturel et essentiel des sociétés politiques of Le Mercier de la Rivière and appreciates it very much12. In two letters to Falconet in 1767-8, Diderot maintains that le Mercier de la Rivière is “apôtre de la propriété, de la liberté et de l’évidence” and will be an invaluable collaborator of the tsarine Catherine II in Russia, where he is going13, but he criticizes the other Physiocrats, defined “missionaires enthousiastes à qui le zèle indiscret aura fait dire force inepties14”. In this period Diderot is near the Boutique économiste, authors not far from Physiocracy, but interested mainly in commerce and manufacture, and favourable to the free circulation of grain (so as of writings and ideas): Turgot, Trudaine de Montigny, Dupont de Nemours, Condorcet, M.lle de Lespinasse and others. This group is influent on the decision of the Edit of 176415.
10On 12 and 22 November 1768 Diderot writes a couple of letters to Sophie Volland where he appreciates the ideas of Galiani, which he has exposed in d’Holbach’s salon with intelligence and wit16. Galiani stated that, in principle, the State should not modify any law, even a bad one, if it has no administrative bureaucracy able to enforce a better one. Furthermore he expounded that the export of grain is not giving grain in exchange of gold, but giving grain in exchange of grain17. Such an idea can also be found in the Dialogues, that is the impossibility of growth led by the export of grain. Diderot asked Galiani to publish his ideas, and this gave rise to the Dialogues.
11Almost two years later, in Apologie de l’abbé Galiani, Diderot would show his esteem for the realism of his Italian friend: “L’abbé expose les faits. Il se demande la raison de ces faits, soit pour approuver, soit pour improuver18.” Why did Diderot change his mind? Probably, the conversion is due to the observation of reality from his point of view of propriétaire, even though not great landlord, and the awareness of the condition of life of labourers, which he describes with few and effective lines, where he sharply criticizes Morellet. The high price of grain, he notes, hardly can trickle down and benefit the paysan.
12The opinion against the Physiocracy spreaded. In 1767 Forbonnais publishes the two volumes Principes et observations oeconomiques, very critical of the abstractions of Physiocrats. The Journal de l’agriculture, du commerce et des finances (which previously supported the Physiocracy, and would have taken similar position few years later) in September 1767 reviews the book and underlines that the économistes have built up “des systèmes” not fully compatible with facts. In April 1770, become Journal de l’agriculture, du commerce, des arts et des finances, and dominated by commercial and industrial lobbies, it welcomes the “moderation” of the Dialogues, which allows to reconcile different interests19. The discussion on the Journal shows that the questions under debate were not just theoretical (abstraction and système vs. realism and empirism), but they involved also tangible economic and political concerns. Balanced and acute reaction was that of Turgot: the Dialogues are not a book that one may label as “mauvais”, but its principal weapon is just the dialectical ability, often a little sophistical. It is a book supporting the “politique de Pangloss”, that is a short-sighted political strategy of appearing good sense20, and defending the “gens en place21”.
Galiani’s and Diderot’s proposals on policy
13The facts observed brought Galiani to believe that free exchange in several cases was inapplicable: to entrust everything to the market would lead to disaster. One must keep in mind the geographical and geopolitical specificities, as Galiani underlines in the letter to Tanucci of the 18 October 1762: “Any treatise is a little illness (taccolo) […] and reciprocity destroys profit. Treatise with the Ottoman Empire and the Pope, weak and desordered States. With the others, no treatise22.” Here he remarks that actually treatises do not often get both parties better off, but just one side takes advantage from them. Then, such an agreement can be useful for the Kingdom only if it is stipulated with States that are not really competitive in any sector. Then the disparity benefits the country with the higher bargaining power.
14In the Kingdom of Naples a period of high price of grain had followed the famine of 1763-4, and the remedy couldn’t possibly be liberalization. Only the enhancement of commerce and industry could have opposed the too high price, but this was impossible because of political and institutional conditions. In Galiani’s language, the gist and substance of the country was “drunk” by monks, barons and pettifogging lawyers, “wicked and idle people”; then money circulated with difficulty23.
15In fact, international free trade did not run even in France, where the Edits of 1763 and 1764 were unapplied in 1769-1770. However, according to Galiani it would be harmful, because of obstacles both natural and due to human behaviour. They would encourage the export of grain even when it lacks in the country. On the contrary, Galiani supports the domestic free trade, because it tends to get uniform standard of living everywhere and, as a consequence, social tensions lessen. Then in the Eighth Dialogue Galiani proposes that in France export be carried by the domestic fleet and customs duties on export be established, to compensate the different costs of transport and risk to get the port, or to send grain in the hinterland. Therefore, much grain would remain in France, its price would lower, so as monetary wages, and French manufactured goods would be cheaper.
16Customs duties are better than absolute prohibition, which is the unfairest tax and violates natural liberty; and also than a prohibition decided from time to time, which creates uncertainty and risk. Furthermore, customs duties allow to become friend with a few foreign countries, granting them customs franchise, and can be graded decreasingly for grain, flour and pasta, to support domestic production.
17Since somewhere foreign farmers pay lighter taxes, they can spoil French farmers in case of bumper crop; then a customs duty on import is needed. Also this duty should favour French shipping and be higher for flour and pasta. Its revenue must be used to redeem the rights of the French nobility, making easier the domestic trade. Thanks to the import duty, grain would be sold at its “valeur naturelle24”, the “prix en année commune” ensuring the fair reward to producers, like the physiocratic “bon prix”. So foreign trade would become convenient for the merchants only when it is convenient also for the country. The case of internal trade is different; indeed, it is always profitable to citizens.
18Since French people do not absorb the whole internal production of grain yet, it is possible that in some years does exist an actual excess of grain, difficult to stock. In this case export is convenient, to avoid its loss, even though the profit will not flow to agriculture, but rather to trade and marine. Then, thanks to the customs duties described above, grain might be exported from France just when it is in excess, because to reckon its real surplus in advance, even only in the short period, is very difficult, as Galiani observes in the Sixth Dialogue.
19Galiani looks at manufacture as a source of demand and capital for agriculture. Since the First Dialogue, chevalier Zanobi, the character who gives voice to the author, says that, if the rich farmer demands more work to the artisan, the artisan will consume more fruits of the land. The enrichment of the craftsman gets agriculture blossoming. In the Fifth Dialogue he adds that a manufacture run by the family of the farmer supports the cultivation of land and supplies the necessary capital, avoiding indebtment or selling in loss. The fast and regular circulation of wealth can exist only thanks to manufacture. Farming is limited by the extension of fertile land, whereas manufacture has no such bounds. To increase the domestic product, manufacture, whose income is effectual demand for agriculture, must be privileged. For the same reason, the development of manufacture solely allows the growth without external constraints. Indeed a rising population will consume sometime the whole agricultural production, which will be no more exportable. Only the export of manufacture can increase without limits25.
20Diderot, friend and collaborator of Galiani26, was worried about the growth of both sectors at the same pace, because to produce more foodstuffs does not encourage consumption. Industry, like land, has a net product. When the net product of industry absorbs the whole product of the work of farmers, industry and agriculture balance necessarily. In fact, industry can be born only after the satisfaction of the basic needs; but only the development of industry can boost agriculture, because, widening demand, supply grows. The first push to the circular movement of economy comes from both agriculture and manufacture, but it is fastened by the latter, which transforms the row materials of agriculture and employs workers who consume foodstuffs. According to Diderot, nor Galiani, too favourable to manufacture, nor Morellet, too favourable to agriculture, were able to grasp this point27.
Galiani’s skepticism and historical facts in the Kingdom of Naples and France: must we trust him?
21Galiani declares in the letter to d’Epinay on 27 January 1770 that Zanobi (Galiani’s alter ego in the Dialogues) does not really think nor believe one word he says; he is the greatest skeptical and theorician of the world. My work has been written by the pen of a philosopher, Galiani states, and a lot of time is needed before in Paris people understand that the dispute can never end28. Must we believe Galiani about Zanobi’s skepticism29? Already in Della Moneta the (anonymous) author said that he had never read anything on the subjet, but actually he had translated Locke and knew Davanzati, Melon, Serra, Charles-Irenée Castel and maybe others30. The debunking and disenchanted attitude is a fundamental hallmark of Galiani’s personality, “biting critic from time to time of everybody31”. Turgot, even showing respect for Galiani’s intellectual qualities, accuses him of letting the world goes by as it does32. In fact the skepticism of Galiani derives from his experience, but it is not his actual experience, according to Venturi33: he observes a reality that induces him to mistrust in the possibility of actual improvement in the political and social scenario. However, in spite of that, not only does he take active part in the intellectual debate, but also he accomplishes important administrative tasks both in Paris and in Naples, after his return in fatherland. Indeed he gains the esteem of an engaged intellectual as Diderot, according to whom Galiani is “homme de génie… [qui] pense et nous fait penser34”.
22Is it only a rethorical device in a personal letter? Perhaps it isn’t: it is likely to be the cue of a real difficulty to face a question that is of paramount importance, beyond the wit talking in the salons.
23As is known, Galiani loves talking and bantering in the salons, but he tells us relevant issues with light tone and knows very well the reality of Naples. His skepticism springs up just from his experience and the attentive observation of different realities, likes France and the Kingdom of Naples. He does not find any general principle or law, neither reflecting nor accomplishing his diplomatic and administrative duties. This is the sense of his statement in the quoted letter to d’Epinay: “la clef du mystère… [est que] tout se réduit à zéro35”. Interestingly, the realism of Galiani, praised by Diderot, was indirectly indicated by Nicolini as the major cause of the modification of his attitude on free trade. Indeed the meeting in 1768 with Domenico Caracciolo, ambassador of the Kingdom in London, and Galiani’s aversion to the abstractism of Physiocrats (according to Nicolini, a sort of Jacobinism ante litteram) would be the main causes of such a change36.
24Actually, his practical activity shows us an active and engaged person. During the period of his diplomatic appointment in Paris, he came back to Naples and remained there for more than one year (May 1765-October 1766), to work on the scheme of a commercial treatise between the Kingdom and France. About his experience he wrote the Considerazioni sul trattato di commercio tra il Re ed il Re Cristianissimo, where he expounds his idea of “natural” forms of commerce between nations, ruled by principles of liberty and partial protection, to proportion according to circumstances. Galiani’s attitude is realistic: he looks for the immediate utility for his country, without referring to any general principle37.
25Later, after the period in Paris and the Dialogues, Galiani is involved in the administration of the Kingdom of Naples, with relevant and ticklish charges. He accomplishes the task with “realistic elasticity38,” in the interest of the Kingdom. For example, he avoids the stipulation of further commercial treatises with France, but claims for a treatise with Russia, far and different country, because it can be more useful in order to develop commerce. In this case a political agreement is likely to enhance commercial streams that would remain low if created just by the market forces. Furthermore, Russian economy is less developed than the Neapolitan one, so the Kingdom of Naples could easily obtain a large return from its trade with Russia.
26The terrible famine that hit Naples in 1763-1764, few years before the Dialogues, when Galiani was in Paris, did not support the general, absolute principle of the free international trade of grain as an expression of the sacred rights of liberty and property, core of politics, to which Galiani refers in the Seventh Dialogue, where he explains the reasons to justify the external trade of grain in France. We can understand that, looking at such a situation, the abbé rejects the rigid application of abstract economic principles and underscores the opportunity of examining the actual reality and interpreting it with good sense and attention to its specificity39.
27Then the basic problems of the agriculture emerged: backwardness of productive structures, constraints of international market, unbalances between provinces, technical and bureaucratic hindrances in logistics, huge expansion of the capital, which subordinated the market of grain to its necessities. There was a monopoly of nobility on the management of the public warehouses and bakery. In such a situation, public intervention was absolutely necessary; international free trade would have been completely useless. Bernardo Tanucci40 faced the situation by importing grain from the Ottoman Empire and also Charles III helped him, sending grain from Spain.
28The crisis showed the ability of government in a difficult task and favoured the limitation of the local claims, despite the ambiguity of Tanucci, who liked French liberalization, but preferred to extend the system of public warehouse to the provinces and implement reforms against the power of barons. His aims were defense of sovereignity of the King and strong absolutism. The barons put up themselves for the defenders of their subjects before the central power. It was an entanglement between old and new, where local autorities wanted to preserve old monopolies and privileges, but also juxtaposed absolutisme and liberty41.
29In these historical happenings one can see the contrasts frequently found in the reflection of Galiani, which brings him to pessimism. The weakening of the reformism of Charles III since the Forties, due to the opposition of Neapolitan professionals, bureaucracy, barons, Church, confirms to him the difficulty to improve an administration when powerful lobbies resist against any change. This is evident, for example, if one observes fiscality. Broggia noted that the new land register, begun in 1740, gave negative results: the fiscal burden remained on the income of manufacture and commerce, earned by peoplepoor and hard-working. Thus we arrive to the dark picture drawn by Giuseppe Maria Galanti in 1786-90: abandonment of agriculture and decline of manufacture and trade42.
30Also the French situation was critical. As shown by Kaplan, authorities applied the rigid and complicated rules of the grain trade with good sense and elasticity, in a situation of conflict between central administration, provinces and various lobbies and groups. The question of grain was a problem of subsistence and, at the same time, of social cohesion and many administrators and scholars demanded the end of regulation43.
31The Déclaration of 25 May 1763 by the Contrôleur général Bertin institutes the free internal trade of grain, even if special rules for Paris remains. Then l’Averdy, successor of Bertin, promulgates the Edit of July 1764. It is the result of complicate arrangements, and confirms the Déclaration of Bertin, extending it to the external trade, even though under restrictions: exported grain must be shipped on French vessels; export is allowed only if the price of grain is low; a customs duty is imposed on import. Paris, again, maintains its special rules.
32Zanobi in the Eighth Dialogue praises the Edit of 1764, because it expresses the reciprocal trust between sovereign and people. However one should expect much less than that promised by the “lively imagination of Economists” (as Zanobi says): indeed the export of grain raised little in consequence of the Edit. Turgot sees the basic difficulty in the incompatibility between free trade of grain and despotism. In a couple of letters to Dupont de Nemours, commenting the Première introduction à la philosophie économique ou analyse des Etats policés by Baudeau (1771), he announces his position against the legal despotism, which continues to mark the works of Physiocrats44.
33About 1773 Galiani writes that the unlimited liberty of the external trade of grain brings to republic and democracy; it would be much better the complete unification of the internal market, because it is absurd that in two provinces they are respectively abundance and scarcity, and, at the same time, their dwellers march together in war, he says in the Eighth Dialogue. Then the unification of the domestic market would have a positive consequence on the social peace and stabilize the political body; the turmoils, which could bring even to democracy, would be avoided.
34In September 1774, when Turgot has been appointed as Contrôleur général since just one month, Galiani, who personally esteems him very much, foresees his fall due the policy of free external trade of grain45.
No merely abstract and theoretical solution will ever be really effective: the realistic abbé
35Face to the situation of the Kingdom of Naples and France, the skeptical Galiani thinks that, to find out the best solution, one has always to make allowances for the limits of man and institutions. Political economy must aim at the good for men, but every good goes together with some evil. In politics nothing can be pushed to the extreme. Expressing a concept that Einaudi, in the last century, would have called punto critico, Zanobi says: “When in a problem there are many unknowns, the equation is undetermined, or it belongs to the category of problems […] de maximis et minimis. There is point until which good is greater than evil; if you trespass, evil prevails over good46.” It is better not to change anything, if one is not sure to change it with something really better. When choosing the scopes of government, enthusiasm is dangerous, especially if applied to a truth, because it induces to go too straight. On the contrary, nothing must be done suddenly, and the straight line must be avoided.
36The Édit of 1764 is too liberty allowed to people too quickly, Zanobi observes in the Eighth Dialogue. It gives the liberty of providing their own subsistence to people not accustomed to do it. It will cause the stop of the internal circulation of grain, the famine in the bad years, the ruin of agriculture in France. The grain of the border provinces will be exported and there the circulation of gold will rise, while the famine will spoil manufacture in the internal regions. Then the equalization of internal and external trade can bring about great damages, because the economic system is not ready for it, and the spontaneous reaction of the agents to such abrupt change leads just to the destruction of agriculture, which authorities intended to develop47.
37The graduality must relate with the point at which a country is situated along the path of the historical progress. In the Second dialogue, Zanobi says that the first error, which all further errors derive from, is the supposition that man consumes always the same quantity of subsistence. But “[l] e total de la consommation […] est en raison composée de la population et de leur opulence […] un peuple riche et heureux, mieux […] se nourrit, plus il travaille48”. Indeed rich farmers do not spend much, live in the countryside, save, then consume few handicrafts. On the contrary, artisans live in cities, becoming rich they pick up the habits of the upper classes and increase also their demand for foodstuffs. For this reason one thousand rich artisans give rise to more demand than two thousands rich farmers: “les mœurs sont toujours plus forts que les lois49”. The change of uses and consumption over time is part of human societies, and every proposal of economic policy must take it into consideration. This immediately recalls a principle of the philosophy of history of Giambattista Vico: laws cannot help adapting to the nature of men and things.
38Some countries structurally produce and export grain, like Poland or Sicily. For other countries, like France, the choice of free export can be disadvantageous. As Galiani underlines in the Sixth Dialogue, as long as we ignore whether in the “année moyenne” there is a surplus50, we do not know if France can trade grain with constant and valuable rentability. A country could also reach a population so large to be compelled to purchase foodstuffs in less populated countries, in exchange of its handicrafts. Then the art of government would have done his masterpiece, forcing nature to have, on a limited territory, more people than land could feed.
39The question of scarcity or abundance of grain and its foreign trade is examined in relation with the target of the art of government in the long run, that is demographic increase. If the sole wealth is man, as Galiani affirms in Della Moneta, the social surplus is the outcome of human labour (fatica) and scarcity must be seen in relation with man and his activity. The human production of manufactured goods has not the bounds of agriculture, conditioned by the scarcity of land. Thus only manufacture can be source of economic development in the long run.
Free trade and alzamento: expectations, uncertainty, advantages for some sectors or social groups, disadvantages for others
40Abundance and scarcity have different effect on social groups, classes and countries. During a famine, affluent classes do not suffer. Sellers even can earn profit. The benefit of the high price of grain hardly goes to the farmer: traders are likely to take advantage of it, while people starve and manufacture is negatively affected, as Galiani argues in the Seventh Dialogue. Poor crops are profitable for commercial countries: if some countries in Europe complain about famine, the banker of the Nederlands is happy, the abbé writes in the Forth Dialogue. Referring to the relation between wage and grain price, in the Second Dialogue Zanobi remarks that the activity of manufacture is not conditioned by the good or bad year in agriculture. Manufacture goes on at its own pace. Since one working day is always paid by the same quantity of money, the unique way to preserve the standard of living of labourers is to keep the price of bread constant. This should happen not by taxation, but through a direct public intervention, very important in countries where manufacture is the main activity.
41Diderot puts in light that the high price of grain does not favour agriculture, because rent rises and, in the short period, landlords take advantage of it. Then the remuneration of public officials rises as well. Taxes increase, so the augmentation of the purchasing power of proprietors is cancelled. If the upsurge of rent is greater than that of the income of farmers due to export and high price of grain, then farmers are actually impoverished. This is likely to happen, since the landlord decides the lease on the basis of his own needs, without looking at farmer’s income.
42Finally Diderot observes: “Ce ne sont pas les fermiers aisés qui forment la condition des campagnes, c’est la multitude des salariés; et je demanderai si, les premiers devenus plus aisés, leur richesse refluera sur les derniers et les tirera de leur misère51.” The sense of justice of Galiani, quite conservative, emerges in the solicitude the right-minded sovereign ought to have for the welfare of his people; whereas the sense of justice of the progressive Diderot can be found in the awareness that the high price of grain hardly is favourable to farmers.
43Necker, intellectually indebted with Galiani, keeps a position at half way between paternalism and advanced Enlightenment: not just the various economic policies, but all civil institutions benefit only proprietors, while people, who own nothing, are defended solely by political institutions and administration. Few years after the Dialogues, Necker writes in Sur la législation et le commerce des grains (1775): “presque toutes les institutions civiles ont été faites pour les Propriétaires […] les institutions politiques et les loix d’administration, sont presque les seules qui défendent le Peuple52”. People have no property, nor anything to shield; if they do not work today, tomorrow will starve: property, justice, liberty do not concern them. The market of grain reveals the “esclavage de la multitude” under the neutrality of the relation of exchange and throws light on the social conflicts in economy: “la liberté n’est que la permission donnée aux propriétaires de déployer toute leur puissance53”. The spontaneous cooperation of market forces can run well on the market of superfluites, not of subsistence. The asymmetry of the market of subsistence weakens only in the years of bumper crop, when proprietors are pushed to sell and lose their natural supremacy on buyers.
44To better understand the continuity of Galiani’s thought, it may be interesting to look at the perception of the conflicts of interest in the first economic work of Galiani. In Della Moneta (1751)54, Book III, Chapter III he suggests the raising of high-standard coins with intrinsic value ( “alzamento della moneta alta”) by law or by reduction of the weight of coins, so that coin’s nominal value becomes higher than its real value. The raising has the same effect as a tax, or, if strong and repeated, as even the failure of the state; but, if raising is slow, it spreads gradually over all citizens and has no immediate ruinous consequence. In a period of depression, the state and the indebted poor farmers gain from it. On the other side, the owners of public bonds, usually belonging to the upper class, are the losers. Then the sovereign who decides, if necessary, the raising in such circumstances deserves admiration. Orphans and widows, hit as perceiving fixed income, are few. Government must support other people: skilled farmers, artisans, sailors, merchants, who usually lease and take advantage from the alzamento. Galiani was the first and, for long, the only one to argue that a slow continuous decrease of purchasing power encourages entrepreneurs55.
45In periods of expansion, on the contrary, the rich are debtors of wage, the poor are creditors. Thus the raising of coin reduces the purchasing power of the monetary wage (even though it remains temporary unchanged), harms the poor and is profitable for the rich. Generally speaking, the alzamento is a good tax, provided creditors are few and rich, debtors many and poor. However, in the Dialogues Galiani would recognize that the damage of people perceiving fixed income might be great and concern a large and various share of people, included both old servants and officers.
46The effectiveness of the raising takes place in the time span between the change of value ordered by the prince and the “change done by people”, that is the rise of prices, so that the rate between goods and gold is re-established. Since that moment, the alzamento is no more effective.
47But the human mind naturally tends to take relative magnitudes in absolute sense, the “Vichian” Galiani notes at the beginning of the Book III of Della Moneta. It changes his comprehension more slowly than it would be necessary; just for this reason the alzamento engenders its results. The first judgment of people is confused, they perceive the injustice received, but cannot arrive to analyse it correctly and can even accept the effect of the alzamento as natural. On the other hand, the sovereign can lose the public trust if he uses it too frequently. Habits, tradition, mentality are relevant as to the consequences of raising; and also the behaviour of the prince, who not always can grasp the future evolution of economy.
48To understand these actions/reactions and distinguish between what is “fair or unfair” and “correct or erroneous”, one should know the immutable human nature and the history and social structure of the country. These aspects, particularly the principles of the human mind and the illusions it builds about reality, are further Vichian elements in Galiani’s thought56. Already in Della Moneta we can remark that the young Galiani is aware of the necessity of choosing the tools of policy according to the circumstances and the kind of country under scrutiny.
49In both cases of money and grain trade, information and expectations are crucial. The theory of interest of Della Moneta is grounded on expectations and uncertainty and has to be considered as forerunner of the theories of the risk premium57. Risk and scarce information are characteristic also in the domestic and international market of grain, which indeed tends to monopoly, as Galiani singles out in the Seventh Dialogue.
50In Della Moneta Book 5th, Chapter 1 he writes that nothing is less fortuitous than casual events, which have constant order and rules58. In the Dialogues he changes his position, abandons the faith in the stability of frequency and assumes a more radical vision of casuality and incertitude. Facing Quesnay, who attributes regularity to the natural determinism, now Galiani looks at it as the result of a great number of fortuitous cases59. But in the Dialogues he regards mainly the horizon of short period, whereas the stability of frequence emerges in the long run. Furthermore, as Diderot notes (but this point is present also in the Dialogues), even though good and bad years follow one another, the situation of the farmer remains negative, so as the compensation of gain and loss does not help the gambler60.
The method of Galiani and the philosophy of history of Vico
The two sources of Galiani’s method
51The methodology of Galiani has two main sources. The first one is an inductive epistemology, arrived to him through the “Investiganti” and the Neapolitan followers of Galileo, that can be found also in the work of Forbonnais, written three years before the Dialogues, and in the Apologie of Diderot. The second one is the philosophy of history of Giambattista Vico, which expresses the idea of evolution and progress where all aspects of human nature, both rational and emotional, play a constitutive role in the development and decline of institutions61.
52In Principes et observations oeconomiques (1767), Forbonnais criticizes the method of Physiocrats. He maintains that, to develop a “science conjecturable” similar to medicine, they are necessary: a large collection of facts, the systematic search for the exceptions, the “verités locales” and the consideration of time lags. Such a consideration is evident in his treatment of the accounting of firms and state and of the inertia of prices and wages, which react late and in a complex way to bumper and poor crop. In particular, salary can remain behind the subsistence level also for long, engendering poverty, begging, death62.
53In opposition to Physiocracy, Diderot asserts that one must create in his mind general principles; but, in order to do so, the inverse method is required. Before collecting the phenomena, our mind is empty: facts are the step to raise ourselves. Beginning from many particular cases, one elaborates general notions. Then a rational empirism is needed, starting from particular cases to build up a theory that one must compare continuously with reality. Examining the grain market, Diderot contends that this trade in general is “un conflit tumultueux de crainte, d’avidité, de cupidité”, where the quantities demanded and supplied correspond to a great variety of speculative interests. There is a fight between landlords and monopolists, and the people are overwhelmed, enduring “maux infinis”. Then, face to such a conflicting and troubled reality, “il faut laisser là les vues générales et entrer dans tout ce détail si l’on veut calculer juste63.”
54These two methodological sources can be singled out already in Della Moneta. The young Galiani states in the Proemio that history is the uninterrupted tale of the errors of humanity. If we had astronomical observations since many centuries ago, we could set up a system about the movement of stars; similarly for the art of government. But this is true also for the science of money, because metals have their natural value, deriving from solid, general and constant principles. Not even law or prince can violate them. In Della Moneta Galiani does not use the “sublime” geometry, but examples and repeated statements ( “esempi e dichiarazioni replicate”). Here the legacy of Bartolomeo Intieri, friend of Celestino Galiani, is present64.
55The influence of Giambattista Vico on Della Moneta does exist as well. Vico had been friend of Celestino Galiani, and the young Ferdinando had met him; later, he would define the Scienza Nuova as “book written in the dark by a highly enlightened man” in a letter to Tanucci65. Galiani writes that nature imposes bounds to everything, such that nothing can trespass them, and the history of natural things always repeat the same evolution66. He recalls the Providence, thanks to whom even our wicked passions give rise to collective good67. At the beginning of Scienza Nuova (edition 1744), Vico contends that men were pushed by their utility to live in society with justice, and celebrate their sociable nature68. We find in Della Moneta the ideas of nature as an environment where the human action occurs, and of human nature that has fundamental immutable characters, but evolves along the course of history; and also the principle of historical progress involving even money, which stems naturally just to satisfy natural needs felt by different people, rather than thanks to a sort of original contract. This last point is fully consistent with the philosophy of Vico.
Galiani and history
56According to Galiani, history is a process of progress, but not always linear and with periods of decline.
57Schumpeter states that Galiani was the sole economist of the 18th century who took into account the variability of man and the relativity of every policy with respect to time and place, when in the European intellectual life was entering the “paralysing faith” in universal practical principles69. Galiani substitutes to the Providence of Vico the sense of limitation of human action, in front of the immensity of nature, the errors that can be made, the injustice that cannot be eliminated. But all that does not bring to inaction, as demonstrated by his suggestions and his life and activity after the return from Paris. The idea that a new law must be applied only if it is better than the previous one does not means blockage, but rather attention and keen reflection.
58Galiani makes an effort to be neither optimist nor pessimist, but realist. He trusts in the possibility of amelioration, even though he does not believe in the society of the ordre naturel, just because man is part of nature, and man is continuous change, an entanglement between altruism and selfishness. According to his early unpublished paper De l’opinion, modern society derives from religion, which, on its turn, springs from the socialisation of original human passions. The religious credulity of man allows him to keep under control selfishness and deception and to create useful (also if false) beliefs, which frame and coordinate the human relations70.
59Galiani deems that money and economic structure are not abstractly devised or merely conventional: they are historical formation. He criticizes the ingenuous, idealised representation of the original state of nature and recalls the struggle of man to dominate nature. Galiani’s reflection is historicist, always grasping particular and real, both in Della Moneta and in the Dialogues71.
60On the other side, since his first great work (De Antiquissima Italorum sapientia ex linguae latinae originibus eruenda, 1710) Vico maintains that only history can be really known by man, because it has been done by him72. Later he will remark that mathematics are “certain” insofar as names are concerned, but powerless to grasp the ultimate nature of things, since the objects of reality, which are works of God, can be known clearly and distinctly only by his infinite mind73.
61In Della Moneta, before the presentation of the principles of value, Galiani alleges that the value of gold and precious metals derives from the same sentiment in all men, which has been constant for many centuries; that is, from an original disposition of human nature and intrinsic qualities of things74.
62We can compare this with two “Axioms” (Degnità) of Vico, xiii and xiv: “Uniform ideas originating among entire peoples unknown to each other must have a common ground of truth”; “The nature of things is nothing but their coming into being at certain times and in certain fashions75.” “Fashion” (guisa) is the historical, real determination in which nature shows itself as fact, according to the principle that man is a historical being, whose existence unfolds in society76. History evolves between two poles. The first is constituted by the disposition of men and the nature of things, which are the immutable basis, accessible to our observation. The second are habits, customs and different level of civilisation of nations. Thus we can investigate the constant human nature only through the infinite variety of circumstances and situations. This is juxtaposed to abstract rationalism and intellectual deduction. The recovery of the past is intended not just as a mere collection of factual beads, or “ideas”, arguments, works of art and so on, similarly treated by the antiquaries of the humanities, but rather as a possible world, a society which could have had such characteristics whether it had precisely these or not77.
63Galiani’s already mentioned key statement at the beginning of the Book III, Chapter I of Della Moneta titled “On the proportion between the value of the three metals used for money78”, that “of the many errors by which our mind is surrounded and among which it continuously wanders, very few would be left if it were possible to make people avoid, as it is easy to say, those which derive from relative words taken in an absolute sense79”, derives indeed from these Vico’s propositions and is the cornerstone of his vision of value as relationship between man and things.
64This is true both for the proportion between the value of the metals used for coins of different purchasing power, as just seen, and for the basic theory of value, which he expounds in Book I, Chapter II: “Declaration of the principles from which the value of all things is born80.” Indeed his definition of value here is “the idea of proportion between the possession of one thing and the possession of one other in the mind of a man81”. From such a definition Galiani, few lines below, draws the principle of the exchange between equivalent, “because where is equality, there is no loss, nor fraud82”, which is the fundamental concept of his theory of the rate of interest and exchange, since they must ensure the equality in time and space respectively, then they are not unfair earnings83.
65The seen “idea of proportion” must be, at the same time, both individual and universal, since value should correspond to a sort of equilibrium price. Thus it satisfies the Vichian criterion of truth, i. e. the identity between certum and verum. This principle is relevant and expounded in various topics. Certum is individual, and ascertained by filologia (that really means “history”, rather than “philology”); verum is universal, and established by philosophy. This is explained in the Axiom X: “Philosophy contemplates reason, whence comes knowledge of the true; philology observes the authority of human choice, whence comes consciousness of the certai84.” Explaining the Axiom, Vico remarks that philosophers must verify their “reasons” through the auhority of the philologists, and philologists, on their turn, must do the same with the reason of philosophers. For him, history is not random and irrational, but nor the realisation of rational plans, as witnessed also in his theory of courses and recurrences85 : each attempt to apply abstract principles to the very complicated reality is doomed from the beginning.
66Indeed Vico singles out rationality in history: not abstract, mathematical, cartesian, of the Enligthenment, but concrete, immanent rationality, which shows up into the history itself86.
Policy, circumstances, social habits: the Vichianism of Galiani
67His cultural attitude leads Galiani to the idea that everybody who acts politically must consider the real circumstances and the stratified social habits. He says: “the human nature cannot be ameliorated beyond a certain point. If one tries more, he spoils the natural order” and “from disorder to order and from order to disorder perpetually the world goes. One cannot repress luxury in prosperity, as one cannot prevent fields to yield crop in summer87.” We can compare these passages with the following Axiom lxvi of Vico: “Men first feel necessity, then look for utility, next attend to comfort, still later amuse themselves with pleasure, thence grow dissolute in luxury, and finally go mad and waste their substance88.”
68In the note iv of the second edition of Della Moneta (1780), Galiani offers a historical, rather than allegorical, interpretation of the myth, with reference to the history of shipping in Mediterranean sea89, that we can set near the Axiom xvi: “Vulgar traditions must have had public grounds of truth, by virtue of which they came into being and were preserved by entire peoples over long periods of time90.”
69In Galiani’s opinion, we have seen, the best law may not spring even from the intellectual elaboration of an enlightened group, who cannot apprehend all aspects of the pretended ordre naturel, first of all human malice. Indeed, the mission of the prince is to achieve an acceptable level of welfare of his subjects. The initial attitude favourable to the free trade of grain, mentioned in par. I.1, can been explained as due just to his pragmatism91.
70The Axiom vii of Vico is on the same line of reasoning: “Legislation considers man as he is in order to turn him to good uses in human society. Out of ferocity, avarice and ambition […] it creates the military, merchant and governing classes, and thus the strength, riches and wisdom of commonwealths. Out of these three great vices […] it makes civil happiness92.” Also Vico tries to understand how one can act and within what limits one can regulate the institutions, which the Neapolitan philosopher wants to investigate through his “rigorous” New Science. Here “rigorous” means such that takes into account all aspects of man and society, rational and irrational: passions, interests, volunty, historical period, geography, institutions. Vico, in polemical attitude against Descartes and the geometrical method, emphasize that there are as many methods as subjects to deal with. Against a method which sharply distinguishes true and false, he claims that statesman, general, orator, judge, medical pratictioner, casuist, are most often in the right when they do not depart from the probable93.
71On these points is really interesting, overall for the methodological assertions at the beginning, the short paper on the food administration in Genova, sent by Galiani to Giovanni Battista Grimaldi on 23 April 177394. His ideas are fully developed and he can expound them in a private text with total liberty and without any concern about political correctness. He writes that modern French, due to their great ignorance, called this science “economy”, but they should have called it “politics”. Such a science is just the application of general theories very simple to particular cases very complex. Its theoretical truths are really easy, almost trivial, but their application demands a great, profound knowledge of every aspect of the country under scrutiny. This science includes ethics, customs, laws, commerce, agriculture, public finance. All cases are different, so that the application of the theories must be different as well. One can argue only about the countries he knows really well95.
72These important methodological statements bring the empirism of Dialogues to the extreme. One must single out few simple general principles; the actual difficulty lies in their application to each specific historical situation.
73Near the end of the text, Galiani claims that the political leader must be enemy of “the best”, which is just a wishful thinking for idle philosophers, and must be happy with “the good, or the minor evil”. Indeed it does exist in nature a general rule of “mutation” (mutazione), so “the best” cannot be established once and for all. Besides, “a particular drawback often goes through a general good: and it is false in politics, even if it is true in geometry, that the whole is stronger than one of its part96”.
74The individual choice, which takes place in the social context, creates habits and shapes one’s nature, also if the process is uncertain, unpredictable and subject to many different causal forces. Everybody creates the taste that the moral constitution of his spirit allows him. The taste becomes habit, the habit becomes nature. Man seems to desire the condition that he hasn’t; but, if he had it, he would be in despair and wouldn’t be able to adapt himself to it. Moreover, the change of mentality is slow, and the intellectual must help its evolution97. Man is idle and likes following old paths without looking if things are changed, Zanobi says in the Forth Dialogue. The best the “true philosopher” can do is just to hasten corrections.
75In order to do so, the “true philosopher” must cope with the human nature, well described at the beginning of the Eighth Dialogue: “l’homme […] est une quantité indéterminable […] une matière ductile par la filière de l’habitude […] ce qui est plus singulier, aussi-tôt qu’il s’y est fait, il trouve que cela lui est tout naturel […] il ignore le bienfaiteur et le bienfait, comme il ignore et le méchant et le mal qu’il lui a causé, et qu’il croit honnêtement être de sa nature98”.
76Thus in the Dialogues political economy is a science concerning the behaviour of man. As Galiani says, again in the Eighth Dialogue, “c’est absolument la même science que celle du pilotage et de la conduite d’un vaisseau: l’objet est la route, les moyens sont la manoeuvre qu’il faut faire99”.
77Man shapes history, but he is shaped by habits. Only the wise man can reckon the exact measure of the policy to implement, beyond which good becomes evil. Such a limit “le sage seul le calcule. Le peuple le sent par instinct. L’homme en charge l’aperçoit avec le temps100”. And Vico, in their long-distance dialogue through time, discusses the same issues in the Axioms xii, lxix and civ: “Common sense is judgment without reflection, shared by an entire class, an entire people, an entire nation, or the whole human race”; “Governments must conform to the nature of the men governed”; “The remark of Dion Cassius [i.e. Chrysostom] is worthy of consideration, that custom is like a king and law like a tyran; which we must understand as referring to reasonable custom and to law not animated by natural reason101.” In Dialogues’ words, quoted above in par. 1.5, “les mœurs sont toujours plus forts que les lois”.
78We can conclude that, according to both Galiani and Vico, in the art of government “wisdom” is needed: a set of qualities which analytical intelligence is part of, mingled with a special, rare sensibility. Such wisdom is collective patrimony of people, who “sent par istinct”, whereas the common man mistakes about “natural”, “bienfaiteur”, “bienfait”, “méchant”. Only wise men know the bounds, beyond which even the best policy must not go; unwise people remain an indetermined quantiy and believe that benefits and drawbacks are “natural102”.
Galiani’s vision of nature and the influence of Vico.
79Also the vision of nature of Galiani owes much to Vico103. Auerbach notes that in Vico’s thought the word “natura” refers often to the spiritual and social human nature104. Galiani recalls a sort of natural law in a Mémoire on famine in France and the errors of the Edit of 1764, sent, through M.e d’Epinay, to Sartine in December 1770105. In the Mémoire he writes that since long there are countries, like Sicily, that export grain freely, and no sovereign ever decided to limit the export. It is a “loi naturelle inhérente au sol”, but developed in a specific historical condition, valid in those particular circumstances.
80The Physiocrats look at natural liberty as something new, which will renew the entire society, and prompt calls to remove the legal hindrances that prevent the application of natural law106.
81The natural law in Galiani’s vision is what has always happened: since history is continuous change, absolute natural laws do not exist, but only phenomenons and situations more or less persistent. Now, in Vico’s thought, in the childhood of humanity (the epoch of Gods and fantasy) the action and production of man was spontaneous, unconscious, nearly natural, and rationality was latent (certum existed, but verum not yet); but history urged and prompted even in prehistory and opened the pathway to the adult era, that is the rational epoch of men (verum emerges, and it includes not only rationality, but also passions of certum of the previous stages)107. Vico’s law theory consists just of the fusion of a formal relationship, the natural law, with a historical object, the people law (diritto delle genti); domination and liberty are prefigured in the structure of the human nature, therefore, as in an individual “becoming older, volunty creates liberty”, so it happens in the history of peoples108.
82Zanobi says in the Second Dialogue that one must set up the principles drawn from the very nature of things, namely: which is the Kingdom we are going to speak about? Where is? What are its customs and opinions, and the advantages we can get, or the risk we ought to avoid?
83The difference between the policies of grain is due to the nature of things: public warehouses can be a nice solution in small countries, in large countries this isn’t possible, because of the difficulty of administration: “Approvisionner et nourrir avec règle et économie deux ou même un million d’habitants est au dessus des forces humaines109.” Large countries cannot develop only manufacture and commerce, because they wouldn’t have sufficient vent for surplus and cannot specialize only in those sectors: “Pouvez-vous réduire vingt millions d’hommes à n’être que Manufacturiés ou Navigateurs? […] La Nature a mis des bornes en tout, on ne la viole pas jusqu’à ce point110.” Zanobi expresses lyrically the vision of nature of the abbé: “La nature est quelque chose d’immense, d’indéfini, elle est le digne ouvrage de son Créateur. Et nous, qui sommes nous? Des insects, des atômes, rien. […] Sans doute elle remet toutes les choses en équilibre, mais nous n’avons que faire d’attendre ce retour et cet équilibre111.”
84Another issue that widens our interpretation of Galiani’s concept of nature is his idea of fortuitous event, explained in the treatment of interest and agriculture in Della Moneta and in the Fifth Dialogue. What is called the fruit of money, when it is legitimate, is the price of palpitation. The interest rewards risk and privation of liquidity. It equalizes current money and money far in the future; just like the exchange rate equalizes current money and money far in the space. Thus the interest exists, is similar to the exchange rate and one must understand rationally its nature in the history, without moralism. Borrowing at interest is changing equivalent, because things that offer the same utility and comfort to the agents are really equivalent.
85Galiani goes into uncertainty also with reference to agriculture, compared with gambling. Zanobi says in the Fifth Dialogue that nothing is less hazardous than fortune or less fortuitous than chance, that have constant courses and recurrences. The human beings have been able to evaluate the fortuitous damage in the trade of grain and bread thanks time and habits, because only nature and instinct can solve these puzzling problems, impossible even for very skilled mathematicians. Also the farmer is a gambler, against weather and seasons which hold the bank.
86The history of an agricultural country is parallel to the story of a gambler. At the beginning people are hard-working, fierce, free and martial, with a bent for war. But war is “the luxury of nations” (indeed, it destroys wealth), therefore it causes the decline of the state and high public debt, so money flows away. In a country without manufacture, compelled to buy grain abroad, external debt soars. As a result, the national independence is jeopardized and inequality rises, because of the growth of finance. As an indebted gambler, the only hope lies in bumper crops, but just one bad year is sufficient to fall down again. At the same time, “industrious foreigners” start their business in the country. The effects of natural facts and human greed sum up: the foreign entrepreneur looks at the natural human cupidity. He gives rise to new needs and corrupts the good habits of the farmer.
87This interlacement between selfish, but natural, behaviour (which Galiani looks at without moralism), natural “blind” facts, consequences on institutions, which may not steer the events conveniently, expresses a rich and profound vision of history and nature, realistic, pessimistic, but far from fatalism. Human society can partly avoid these dangers. In particular, the sovereign must have wise collaborators to search for the moderate good that his state can achieve. The promotion of manufacture should be part of the project, because it is essentially human action, not conditioned by weather and seasons: encouragement of manufacture means promotion of liberty.
88Nature comes back to its equilibrium, sooner or later, but man cannot wait for it and must fight against nature. In particular, it is true that the price of grain tends naturally to equilibrium, but we may not counterbalance the up and down of price with a theoretical mean. What is true in a semplified model might have an awful impact on people. Grain finally arrives where are money and consumers, but it takes time and in the meanwhile famine and starvation can spread.
89Humanity here is seen as an instrument of something powerful and immense, incomprehensible, like the Providence of Vico. Only institutions founded upon the real human nature, which sociability is part of, can endure. At the basis of society may not lie the mere strenght, nor the search for utility112.
90Also the theory of value of Galiani, as we have partly seen, stems from the natural relation between man and things. Utility is a subjective pre-condition, partly natural, partly social. The relation between rarity, value and consumption is depicted in few words, which single out its great complexity113. Rarity depends on nature, but can be modified by man. The modification is carried on by fatica (labour), which is the fundamental principle, since only fatica gives value114. Then rarity can be win by fatica115.
Concluding remarks
91In this paper I try to demonstrate that, at the roots of the opposition of Galiani to the international free trade of grain, both his vision of economy, where the human activity gives value to goods, and his vision of the civil and economic progress as a historical result, which is different in different countries and in different ages, are relevant. In both cases Galiani has been influenced by the philosophy of history of Giambattista Vico. Physiocrats trust in the goodness of the ordre naturel; Galiani expresses a sort of naturalism not optimistic. Nature is not benign, nor malicious; the development of history in the natural world must be steered with attention and realism. Galiani is skeptical and aware that the transition towards a hypothetical improvement can be really hard. This is true for the free international trade of grain, that, introduced too fast, would engender bad consequences, and it is also his general political attitude. Transition is part of the result, the historical evolution cannot be the outcome of a set of theoretical projets, but is a continuous, endless process.
92Galiani is anti-physiocratic for his methodological approach, influenced by Vico; and also for historical reasons, when he looks at the agriculture of the continental part of the Kingdom of Naples. He does not trust in the efficiency of administration and is worried for social peace.
93The fundamental idea that the only wealth is man leads Galiani to claim for accessible prices of basic goods. According to him, the bon prix must “naturally” conform to utility, scarcity and labour, and a high price means that grain is too rare or too difficult to obtain. A stable price over time is the best possible achievement. The role of labour (fatica) and scarcity (rarità), together with the rigidity of the demand of foodstuffs, gives rise to a theory of value different from the treatment of value of Physiocrats, in whose theory prices must ensure the reproduction of the system and the flow of surplus to agriculture.
94In a letter to Tanucci of 6 February 1769, when he lived in Paris, Galiani puts forward what, perhaps, had brought him to reflect upon economy with his couple of great books written with a time gap of twenty years: “Great truth is that politics is not metaphysical genius, but knowledge of the hard difficulties of human life116”.
95Acknowledgements: I wish to thank Gérard Klotz, Arnaud Orain, Andrea Zanini and an anonymous referee for their suggestions and helpful comments on a previous version of the paper. Usual caveats apply.
Notes de bas de page
1 See for example Nicolini Fausto, “Avvertenza”, in La Signora d’Épinay e l’Abate Galiani. Lettere inedite (1769-1772), con Introduzione e note di Fausto Nicolini, Bari, Laterza, 1929, p. 7-12; Tagliacozzo Giorgio, Economisti napoletani dei sec. XVII e XVIII, Bologna, Cappelli, 1937; Tagliacozzo Giorgio, “Il Vichismo economico (Vico, Galiani, Croce – Economia, Liberalismo economico)”, Moneta e Credito, XXI, 83, 3, 1968, p. 247-272; Tagliacozzo Giorgio, “Economic Vichianism: Vico, Galiani, Croce – Economics, Economic Liberalism”, in Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, Baltimore, Johns Hopkins Press, 1969, p. 349-368; Einaudi Luigi, Saggi bibliografici e storici intorno alle dottrine economiche. Cap. XI “Galiani economista”, Roma, Edizioni di Storia e Letteratura, 1953, p. 267-305; Diaz Furio, Introduzione, in Ferdinando Galiani, Opere, a cura di Furio. Diaz e Luciano Guerci, Napoli/Milano, Ricciardi, 1975, p. ix-cvi.
2 “Enhaussement” in the André Tiran edition of Della Moneta, 2005; “raising of coin” as translated by Annalisa Rosselli. See Rosselli Annalisa, “The role of the precious metals in Della Moneta by Ferdinando Galiani”, History of Economic Ideas, vol. IX, n° 3, 2001, p. 43-60.
3 Diaz Furio, Filosofia e politica nel Settecento francese, Torino, Einaudi, 1962, p. 413.
4 Nicolini Fausto, “Introduzione”, in Ferdinando Galiani, Dialogues sur le commerce des bleds. Giusta l’editio princeps del 1770, Milano/Napoli, Riccardo Ricciardi, 1959, p. ix-xxix; Klotz Gérard, “La question des blés en France au dix-huitième siècle: Galiani, critique des Physiocrates”, Il Pensiero Economico Italiano, vol. VIII, n° 2, 2000, p. 157.
5 See Galiani Ferdinando., Lettere di Ferdinando Galiani al Marchese Bernardo Tanucci, pubblicate per cura di Augusto Bazzoni, Firenze, presso Gio. Pietro Vieusseux, 1880, p. 124. The letter is quoted also in Diaz Furio, Introduzione, in Galiani Ferdinando, Opere, a cura di Furio Diaz e Luciano Guerci, Napoli/Milano, Ricciardi, 1975, p. xlix-l, but Diaz cites with the date 25 June 1764, that is a few days before before such an enforcement. The Édit was written with the collaboration of Trudaine de Montigny, Turgot and Dupont. It was registered at the Parliament of Paris on 18 July 1764. The previous year, on 25 May 1763, the Contrôleur général Bertin had liberalized the domestic trade of grain. In the same years Naples was fiercely affected by the famine. See Faccarello Gilbert, “Galiani, Necker and Turgot: a debate on economic reform and policy in eighteenth-century France”, in Gilbert Faccarello (éd.), Studies in the history of French political economy, London/New York, Routledge, 1998, p. 122.
6 Now in Galiani Ferdinando, Dialogues sur le commerce des bleds, Giusta l’editio princeps del 1770, op. cit., p. 315-322.
7 See Galiani Ferdinando, Opere, op. cit., p. 933-936 and p. 943-946 respectively.
8 The liberal laws of 1763-64 have been considered “among the most daring and revolutionary reforms attempted in France before 1789. […] The royal government […] proclaimed [de facto] that subsistence was no longer its overriding responsibility”, Kaplan Steven L., Bread, Politics and Political Economy in the Reign of Louis XV, The Hague, M. Nijhoff, 2 vol., 1976, p. xxvi.
9 However, according to Diaz the Edits of 1763-64 had been quite bereaved of effective contents. This would weaken even the political relevance of the controversy between Galiani and the Physiocrats. See Diaz Furio, Introduzione, op. cit., p. 395-411.
10 Versini Laurent, “Introduction à Apologie de l’abbé Galiani”, art. cit.; Diderot Denis, Œuvres. Tome IIIe: Politique, Paris, Robert Laffont, 1995 p. 119. These facts are mentioned also in Jacques le fataliste by Diderot.
11 Kaplan Steven L., Bread, Politics and Political Economy in the Reign of Louis XV, op. cit., p. xxvi-xxx. See also Kaplan Steven L., Le complot de famine: histoire d’un rumeur au xviie siècle, Paris, Armand Colin, 1982, p. 39-43; Versini Laurent., “Introduction à Apologie de l’abbé Galiani”, loc. cit.
12 Indeed, it was the work by Le Mercier that raised Diderot’s interest in political economy. See Minerbi Marco, “Diderot, Galiani e la polemica sulla Fisiocrazia”, Studi Storici, vol. 14, n° 1, 1973, p. 147, n. 4, where a letter to Damilaville sent in June or July 1767 is quoted.
13 Diderot Denis, Œuvres. Tome Ve: Correspondance, Paris, Robert Laffont, 1997, p. 746, letter of July 1767.
14 Ibid., p. 817 letter of March 1768. See also Diaz Furio, Filosofia e politica nel Settecento francese, op. cit., p. 396 and n. 2.
15 Versini Laurent, “Introduction à Apologie de l’abbé Galiani”, art. cit., p. 119.
16 Diderot Denis, Œuvres. Tome V: Correspondance, op. cit., p. 913 and p. 922.
17 Paolo Mattia Doria had already noted that tha abundacy of gold and silver does not decrease nor increase the actual, real wealth, which is the “wealth of commodities” (ricchezza delle merci) (Doria Paolo Mattia, La Vita Civile con un Trattato sulle Educazione del Principe [1709], Torino, 1852, p. 289); see Badaloni Nicola, Introduzione a Vico, Roma/Bari, Laterza, 1984, p. 64. Significantly, Jonathan Israel sets Vico and Doria in the early Italian radical Enlightenment. See Israel Jonathan Irvin, Radical Enlightenment. Philosophy and the Making of Modernity 1650-1750, Oxford, Oxford University Press, p. 664-683; see also Ricuperati Giuseppe, Frontiere e limiti della ragione, Torino, UTET, 2006, p. 157. On Vico’s Enlightenment, see the classical Corsano Antonio, Umanesimo e religione in G. B. Vico, Bari, Laterza, 1935, p. 21.
18 Diderot Denis, Œuvres. Tome IIIe: Politique, Paris, Robert Laffont, 1995, p. 132. The paper of Diderot was published only in 1954 by Yves Benot in La Pensée, new series, 55, May-June, p. 3 ff. Diderot began to write it probably in april 1770, to answer the Réfutation of Morellet, addressed against Galiani and prohibeted by Terray. The original title was “Notes sur un ouvrage intitulé Rèfutation de l’ouvrage qui a pour titre Dialogues sur le commerce des bleds”. Here Diderot attacks Morellet, especially in the first version. In the third version he adopted the title Apologie de l’abbé Galiani, currently used. See Versini Laurent, “Introduction à Apologie de l’abbé Galiani”, art. cit., p. 119-21; Venturi Franco, “Galiani tra Enciclopedisti e Fisiocrati”, art. cit., p. 60.
19 Venturi Franco, “Galiani tra Enciclopedisti e Fisiocrati”, art. cit., p. 49-56.
20 The reference is to the well-known bluntly optimist character in the novel Candide by Voltaire, published in 1759.
21 See letters to Morellet: 17, 19 and 26 January 1770, in Gustave Schelle (éd.), Œuvres de Turgot et documents le concernant, Paris, Alcan, 1913, vol. 3, p. 419-420.
22 Galiani Ferdinando, Opere, op. cit., p. 870, our translation.
23 Diaz Furio, Introduzione, op. cit., p. li-lii.
24 “Valeur naturelle” in the sense that it is the best price for the right functioning of economy. By no way it is “natural” in the sense of established accordingly to a “natural” order juxtaposed to history. Indeed Galiani does not trust in any natural order. For exemple, about the “natural” tendency to the monopole of the grain trade, that must be mended by law, he writes: “l’art corrige la Nature presqu’en tout” (Galiani Ferdinando, Dialogues sur le commerce des bleds [1770], Napoli, Banco di Napoli, 1987, p. 176). We shall return on this point infra.
25 Also in this case the statement of Della Moneta is valid: “the sole wealth is man” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, con introduzione di Alberto Caracciolo e a cura di Alberto Merola, Milano, Feltrinelli, 1963, p. 129 and p. 134). Interestingly, this relevant concept, which was appreciated by Marx (Marx Karl., Storia dell’economia politica. Teorie sul plusvalore, a cura di Christina Pennavaja, vol. III, trad. it. di Sabrina de Waal, Roma, Editori Riuniti, p. 285), had been put forward about twenty years before, when Galiani was twenty-two.
26 Diderot and Madame d’Épinay were the editors of the Dialogues. About the role of Diderot and d’Epinay in modifying the original text, see Nicolini Fausto, “Introduzione”, in Galiani Ferdinando, Dialogues sur le commerce des bleds. Giusta l’editio princeps del 1770, op. cit., p. xv-xxix; Galiani Ferdinando, Opere, op. cit., p. 347-356, where Diaz observes that the work done by them was really important, with few, relevant, additions; not surprisingly, since Diderot already had taken part into the drawing up of essays written by his friends d’Holbach and Raynal (ibid., p. 355).
27 Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 133-149.
28 D’Épinay Louise, Galiani Ferdinando, Epistolario (1769-1772 e 1773-1772), a cura di Stephano Rapisarda, prefazione di Giuseppe Giarrizzo, 2 tomi, Palermo, Sellerio, 1996, vol. 1, letter n. 22.
29 Klotz Gérard, “La question des blés en France au dix-huitième siècle: Galiani, critique des Physiocrates”, art. cit., p. 155.
30 Bianchini Marco, Alle origini della scienza economica. Felicità pubblica e matematica sociale negli economisti italiani del Settecento, Parma, Editrice Studium Parmense, 1982, p. 91 and p. 123, n. 116.
31 Einaudi Luigi, Saggi bibliografici e storici intorno alle dottrine economiche, chap. xi: “Galiani economista”; art. cit., p. 270. Kaplan maintains that the work of Galiani was not particularly original, and its success and the controversies it raised were mainly due to the personality of the author and his brilliant literary style (Kaplan Steven L., Bread, Politics and Political Economy in the Reign of Louis XV, op. cit., vol. II, p. 592-593).
32 Letter to Mlle de l’Espinasse, 26 January 1770, quoted in Diaz Furio, Introduzione, op. cit., p. lxix.
33 Venturi Franco, “Galiani tra Enciclopedisti e Fisiocrati”, art. cit., p. 53.
34 Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 124.
35 D’Épinay Louise, Galiani Ferdinando, Epistolario (1769-1772 e 1773-1772), op. cit., I, letter n. 22.
36 See Nicolini Fausto, “Introduzione”, in Galiani Ferdinando, Dialogues sur le commerce des bleds, op. cit., p. xiii.
37 Galiani Ferdinando, Opere, op. cit., p. 717-734, especially p. 717-724.
38 Diaz Furio, Introduzione, op. cit., p. xciv.
39 We can also recall the indignation with which Diderot rejects the “atroce” statement of Morellet, according to whom, if in the country people cannot pay the same price as foreigners, must starve and dead (Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 155).
40 Bernardo Tanucci (1698-1783), born in Tuscany and educated at the University of Pisa, was adviser and Minister of Charles Borbone from 1734 and Prime Minister from 1754 to 1777, under Charles and, from 1759 (when Charles became King of Spain) under Ferdinand Borbone. He is considered the real promoter of the reforms that, with different results, were implemented in the Kingdom during that period.
41 Rao Anna Maria, “Il riformismo borbonico a Napoli”, Storia della società italiana, vol. XII “Il secolo dei lumi e delle riforme”, Milano, Teti, 1989, p. 256-68.
42 Diaz Furio, Introduzione, op. cit., p. xxxix.
43 Kaplan Steven L., Bread, Politics and Political Economy in the Reign of Louis XV, op. cit., p. 72-86; Klotz Gérard, “Le dialogue des Dialogues, ou la question du libéralisme en France au xviie siècle”, in Jean Louis Fournel, Jacques Guilhaumou, Jean Pierre Potier (dir.), Libertés et libéralisme: formation et circulation des concepts, Paris, ENS, 2012, p. 118; Klotz Gérard, “La question des blés en France au dix-huitième siècle: Galiani, critique des Physiocrates”, art. cit., p. 150-153.
44 Galiani Ferdinando, Opere, op. cit., p. 417, n. 5. The letters are dated 7 and 10 May 1771. See also Œuvres de Turgot, op. cit., p. 486-487.
45 Diaz Furio, Introduzione, op. cit., p. lxxxix.
46 Galiani Ferdinando, Dialogues sur le commerce des bleds (1770), op. cit., p. 191. See also the letter to d’Epinay of 6 November 1773 in Louise D’Épinay et Ferdinando Galiani, Epistolario (1769- 1772 e 1773-1772), op. cit., II: letter n. 331. We can recall also the occasional paper Delle lodi di papa Benedetto XIV (July 1758), where he praises the Pope because, in case, he is able also to do nothing (Galiani Ferdinando, Opere, op. cit., p. 973).
47 Commenting the Edits of Turgot of January 1776, which abolished the Jurandes, Galiani, far from France for seventeen years, writes that they are going to harm French manufacture very hard: “les habiles artistes en partie sortiront, d’autres se négligeront; et au lieu d’établir l’émulation, il aura cassé tous les ressorts vrais du cœur de l’homme” (quoted in Diaz Furio, Introduzione, op. cit., p. xc). Competition, introduced suddenly in an economy not prepared yet, is likely to have effects contrary to what is desired.
48 Galiani Ferdinando, Dialogues sur le commerce des bleds (1770), op. cit., p. 30.
49 Ibid., p. 31.
50 Diderot notes that the price in “année moyenne” is almost impossible to calculate, because it depends on a too large number of circumstances (Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 133).
51 Diderot Denis, Oeuvres. Tome IIIe: Politique, op. cit., p. 158.
52 Necker Jacques, “Sur la legislation et le commerce des grains (1775)”, in Collection des Principaux Économistes, tome 15 “Mélanges d’économie politique”, II, Réimpression de l’édition 1848, Osnabrück, Otto Zeller, 1966, p. 357. See on this point Perrot Jean Claude, Une histoire intellectuelle de l’économie politique, xviie-xviiie siècle, Paris, EHESS, 1992, p. 281 and n. 2.
53 Necker Jacques, loc. cit.
54 Della Moneta is dated 1751, but was published in 1750. About the editorial story of the book and its cultural and historical background see Tiran André, “Introduction à la vie et à l’œuvre de Ferdinando Galiani”, Galiani Ferdinando, De la monnaie / Della Moneta, Paris, Economica, 2005, p. ix-xlvi.
55 Einaudi Luigi, Saggi bibliografici e storici intorno alle dottrine economiche, op. cit., p. 299.
56 Tagliacozzo Giorgio, “Il Vichismo economico (Vico, Galiani, Croce – Economia, Liberalismo economico)”, Moneta e Credito, XXI, 83, 3, 1968, p. 257-258; Tagliacozzo Giorgio, “Economic Vichianism: Vico, Galiani, Croce – Economics, Economic Liberalism”, Giogio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, Baltimore, Johns Hopkins Press, 1969, p. 357.
57 Giocoli Nicola, “Value and interest in Ferdinando Galiani’s Della Moneta”, History of Economic Ideas, 2001, vol. 9, n° 3, p. 97.
58 Galiani Ferdinando, Della Moneta (1751) e scritti inediti, op. cit., p. 290.
59 Giocoli Nicola, “Value and interest in Ferdinando Galiani’s Della Moneta”, art. cit., p. 104, n. 14; Perrot Jean-Claude, Une histoire intellectuelle de l’économie politique, xviie-xviiie siècle, op. cit., p. 173.
60 Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 138.
61 Badaloni writes that “Vico is connected, even though through a tortuous route, with Galilei” ( “Vico si riallaccia, pur attraverso una serie di mosse anche tortuose, a Galilei”; see Badaloni Nicola, Introduzione a Vico, op. cit., p. 3).
62 See Perrot Jean Claude, Une histoire intellectuelle de l’économie politique, xviie-xviiie siècle, op. cit., p. 277-279.
63 Diderot Denis, Œuvres. Tome IIIe: Politique, op. cit., p. 134.
64 Celestino Galiani, uncle of Ferdinando, was an open-minded priest and bishop, who tried to reform and modernize the University of Naples and the cultural institutions of the city. Ferdinando had been living with his uncle Celestino since the childhood and was grown up and educated by him. Bartolomeo Intieri, intellectual, philosopher and civil servant, was near to Investiganti, in the wake of Galileo, Bacone and Gassendi, deeply interested in the advancement of science. He created and funded the first chair of political economy ( “meccanica e commercio”), held by Antonio Genovesi. See Bianchini Marco, Alle origini della scienza economica. Felicità pubblica e matematica sociale negli economisti italiani del Settecento, op. cit., p. 88.
65 “[F] atto all’oscuro da un uomo che avea gran lumi”; letter to Bernardo Tanucci, December 22nd, 1766 (Galiani Ferdinando, Opere, op. cit., p. 928). Croce recalls that several parts of Vico’s interpretation of Homer were published in 1765 on the “Gazette littéraire de l’Europe” of Suard and Arnaud, maybe thanks to Galiani (Croce Benedetto, La filosofia di G. B. Vico [1911], Roma/Bari, Laterza, 1973, p. 284).
66 “Così la natura alle sue cose pone certi confini, ch’elle non li oltrepassano mai, né all’infinito estendendosi, durano perpetuamente a raggirarsi in sulle stesse vicende” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 34).
67 “[La Provvidenza] per lo suo infinito amore degli uomini, talmente l’ordine del tutto ha congegnato, che le vili passioni nostre spesso, quasi a nostro dispetto, al bene di tutti sono ordinate” (ibid., p. 55).
68 “[Gli uomini] dall’utilità medesima… [sono] tratti da uomini a vivere con giustizia e conservarsi in società, e sì a celebrare la loro natura socievole” (Vico Giambattista, “Scienza Nuova”, in Autobiografia, Poesie, Scienza Nuova [giusta l’edizione del 1744: la 3° ed., pubblicata dal figlio Gennaro], a cura di Pasquale Soccio, Milano, Garzanti, 2000, p. 218).
69 Schumpeter Joseph Alois, Storia dell’analisi economica, 3 vol., italian translation, di Paolo Sylos Labini e Luigi Occhionero, Torino, Boringhieri, 2003, ed. orig. 1954, I, p. 356. Schumpeter maintains that the influence of Vico on Galiani was relevant as to his social philosophy, but amounted to little as to his technical theory (ibid., p. 366, n. 1). See Tagliacozzo Giorgio, “Economic Vichianism: Vico, Galiani, Croce – Economics, Economic Liberalism”, art. cit., p. 355, who observes that here Schumpeter refers to the technical theory strictu sensu, and underlines the influence of Vico also on Galiani’s theory of value in broader sense.
70 The fragment De l’opinion was published by Nicolini in 1959: “Un inedito dell’abate Galiani”, a cura di Fausto Nicolini, Biblion, I, 1959, p. 139-156. It was written in the Forties, but Galiani came back on it also in the Sixties. See Stapelbroek Koen, Love, self-deceit, and money: commerce and morality in the early Neapolitan Enlightenment, Toronto, Buffalo/New York, University of Toronto Press, 2008, p. 209-211; Venturi Franco, “Galiani tra Enciclopedisti e Fisiocrati”, art. cit., p. 52-3.
71 See Einaudi Luigi, Saggi bibliografici e storici intorno alle dottrine economiche, op. cit., p. 281.
72 In Latin: “verum ipsum factum; verum et factum convertuntur”. The criterion of truth about a thing is doing it. Knowledge is knowing through causes. Only God has intelligentia, whereas man has cogitatio and must remain on the surface of things. Man can achieve full knowledge of mathematics, because they are created by him. De Ruggiero observes that in 1710 Vico was anti-Cartesian and almost skeptical, but later, in Scienza Nuova, he would provide a positive and constructive vision of human knowledge (De Ruggiero Guidi, Storia della Filosofia, vol. VI “Da Vico a Kant”, Roma-Bari, Laterza, 1976, ed. orig. 1940, p. 32-34). See also Fassò’ Guido, Storia della filosofia del diritto, vol. II “L’età moderna”, edizione aggiornata a cura di Carla Faralli, Roma/Bari, Laterza, 2001, p. 214-216. Geymonat and Tisato refers that Vico already expressed this principle in 1708, in his opening speech at the University of Napoli, where he taught rhetorics, titled “De nostri temporis studiorum ratione” and published in 1709 (Geymonat Ludovico, Tisato Renato, “Il pensiero filosofico-pedagogico italiano”, art. cit.; Geymonat Ludovico, Storia del pensiero filosofico e scientifico, vol. III “Il Settecento”, Milano, Garzanti, 1975, p. 440).
73 See Belaval Yvon, “Vico and Anti-cartesianism”, in Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 83.
74 Galiani Ferdinando, Della Moneta (1751) e scritti inediti, op. cit., p. 67-68.
75 “Idee uniformi nate appo intieri popoli tra essoloro non conosciuti debbon avere un motivo comune di vero”; “Natura di cose altro non è che nascimento di esse in certi tempi e con certe guise” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 247-248; english translation of Nuova Scienza in the text always follows Vico Giambattista, The New Science, Unabridged Translation of the Third Edition (1744) with the addition of Practic of the New Science, translated by Thomas Goddard Bergin and Max Harold Fisch, Ithaca/New York, Cornell University Press, 1984). On this point see De Mas Enrico, “Vico and Italian thought”, Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 156, according to whom Galiani “paraphrases” the two Degnità.
76 The idea of historicity of man in Galiani is witnessed also by an aspect of his activity after the return to Naples. He writes the essay Del dialetto napoletano (1779) and a dictionary of the dialect, published posthumous. There the dialect is seen as a document of the activity of social and ethnical groups, which grasps, behind the history of words, the history of men, facts and things crystallized in every phrase. See Diaz Furio, Introduzione, op. cit., p. xci-xcii; Ronchetti Emanuele, “Introduzione”, Galiani Ferdinando, Dialoghi sul commercio dei grani, trad. it. di Lorenzo Calabi, Roma, Editori Riuniti, 1978, p. 17.
77 See Berlin Isaiah, “A Note on Vico’s Concept of Knowledge”, Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 376. According to him, “the nature of this kind of knowing is Vico’s central topic” (Berlin Isaiah, loc. cit.).
78 “Della proporzione tra il valore de’ tre metalli usati per la moneta” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 157).
79 “Di tanti e tanti errori, onde è circondata la nostra mente e in mezzo a’ quali perpetuamente s’aggira, non ne resterebbero se non pochissimi, quando fosse possibile a fare che si evitassero, come è facile a dire, quelli che provengono dalle voci relative prese in senso assoluto” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 157). In the subtitle of the chapter, this part is summarized as “Il valore è una relazione” (Value is a relation). As we have seen, in the Dialogues the same criticism will be addressed to Physiocrats, who draw practical conclusions from abstract principles; see Tagliacozzo Giorgio, Economisti napoletani dei sec. XVII e XVIII, Bologna, Cappelli, 1937, p. lii.
80 “Dichiarazione dei principi onde nasce il valore delle cose tutte” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 36).
81 “[U] na idea di proporzione tra ‘l possesso d’una cosa e quello d’un’altra nel concetto d’un uomo” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 39).
82 “[P] erché nella egualità non v’è perdita né inganno” (Galiani Ferdinando, loc. cit.).
83 On the influence of Galiani on Turgot, especially with regard to the theory of the interest rate, see Pons Alain, “Vico and French thought”, in Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 169 and n. 14.
84 “La filosofia contempla la ragione, onde viene la scienza del vero; la filologia osserva l’autorità dell’umano arbitrio, onde viene la coscienza del certo” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 246).
85 See Geymonat Ludovico, Tisato Renato, “Il pensiero filosofico-pedagogico italiano”, art. cit., p. 451-452. Berlin writes: “The central idea at the heart of Vico’s thought is that, in the individual and society alike, phase follows phase […] as stages in the pursuit of an intelligible purpose – man’s effort to understand himself and his world, and to realize his capacities in it. […] [M] en acted as they did because their membership of social groups, and their sense of this relationship, was as basic and as decisive as their desire for food, or shelter, or procreation…” (Berlin Isaiah, Vico and Herder. Two Studies in the History of Ideas, London, Chatto and Windus, 1980, orig. ed. London, The Hogarth Press, 1976, p. 34-35 and 87). About the possibility of “recurrences” (ricorsi) and their characteristics, see De Ruggiero Guido, Storia della Filosofia, vol. VI “Da Vico a Kant”, op. cit., p. 64-65.
86 In 1720 Vico writes De uno universi iuris principio et fine uno, where he calls history “natural law of peoples” (diritto naturale delle genti) and begins his theory of verum – certum. In legal field, verum is justice, and certum is the positive law (Fassò’ Guido., Storia della filosofia del diritto, vol. II “L’età moderna”, op. cit., p. 217-220). If we apply this criterion to free trade, we can conclude that justice must be joint with a legislation that takes into account the concrete welfare of people.
87 “Il comune degli uomini non si può nelle idee oltre a certi limiti migliorare; e, volendolo a ogni modo fare, l’ordine delle cose si guasta e si corrompe” e “dal disordine all’ordine e dall’ordine al disordine perpetuamente si viene. Tanto è dunque volere impedire il lusso nella prosperità quanto il voler che nella state le biade… non fruttifichino” (Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 46 and 242).
88 “Gli uomini prima sentono il necessario, dipoi badano all’utile, appresso avvertiscono il comodo, più innanzi si dilettano del piacere, quindi si dissolvono nel lusso, e finalmente impazzano in istrapazzar le sostanze” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 262).
89 Galiani Ferdinando, Della Moneta (1751) e scritti inediti, op. cit., p. 308-310.
90 “Le tradizioni volgari devon avere avuto pubblici motivi di vero, onde nacquero e si conservarono da intieri popoli per lunghi spazi di tempi” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 248).
91 Minerbi underlines that, in that moment, liberalization appeared to Galiani as a reasonable way to get grain cheaply. This must not be intended as a nearness to Physiocracy. See Minerbi Marco, “Diderot, Galiani e la polemica sulla Fisiocrazia”, Studi Storici, 14, 1, 1973, p. 151 n. 10, where he marks his distance from the interpretation of Venturi (Venturi Franco, “Galiani tra Enciclopedisti e Fisiocrati”, art. cit.), who would seem to believe in Galiani’s initial support to Physiocracy.
92 “La legislazione considera l’uomo qual è, per farne buoni usi nell’umana società: come della ferocia, dell’avarizia e dell’ambizione […] ne fa la milizia, la mercatanzia e la corte, e sì la fortezza, l’opulenza e la sapienza delle repubbliche; e di questi tre grandi vizi […] ne fa la civile felicità” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 245).
93 Belaval Yvon, “Vico and Anti-cartesianism”, art. cit., p. 79.
94 Galiani Ferdinando, Opere, op. cit., p. 735-741.
95 This is a real Vichian approach. We can remember that in the essay “In memoria del Manifesto dei comunisti”, 1895 ( “Remembering the Communist Manifesto”, 1895), Antonio Labriola observes approvingly that Vico looks at history as a process that the mankind engenders, carrying out continuous experiments in the different fields of religion, language, law, habits and so forth (Labriola Antonio, Scritti filosofici e politici, Torino, Einaudi, 1973, p. 519).
96 “Il danno d’un particolare attraversa spesso un bene generale: ed è falso in politica, benché sia vero in geometria, che il tutto sia più forte d’una sua parte” (Galiani Ferdinando, Opere, op. cit., p. 739).
97 Vico’s pedagogy, as emerges from De nostri tempori studiorum ratione (written in 1708, published in 1709), did not go towards specialization, as it was in fashion already in his era, but rather towards “knowledge”, intended as global experience of “philosophy” and “philology”; see Ricuperati G., Frontiere e limiti della ragione, op. cit., p. 22.
98 Galiani Ferdinando, Dialogues sur le commerce des bleds (1770), op. cit., p. 190.
99 Ibid., p. 193.
100 Ibid., p. 191.
101 xii: “Il senso comune è un giudizio senz’alcuna riflessione, comunemente sentito da tutto un ordine, da tutto un popolo, da tutta una nazione o da tutto il gener umano”; lxix: “I governi devono esser conformi alla natura degli uomini governati”; civ: “E’ un detto degno di considerazione […] che la consuetudine è simile al re e la legge al tiranno; che deesi intendere della consuetudine ragionevole e della legge non animata da ragion naturale” (Vico Giambattista, “Scienza Nuova”, op. cit., p. 247, p. 263, p. 273). It has been observed that the profound believe of Vico in the unity of the mankind derives from Bodin; see Cotroneo Gerolamo, “A Renaissance Source of the Scienza Nuova: Jean Bodin’s Methodus”, in Giorgio Tagliacozzo and Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 58. The common consensus of all peoples in order to achieve a feeling of certitude about matters pertaining to the natural laws of nations is “the kernel” of Vico’s argument against Grotius, who, in Vico’s opinion, does not take into account the common consensus of all peoples in regard to human needs and utilitarian interests when discusses the natural law of nations; see Faucci Dario, “Vico and Grotius: Jurisconsults of Mankind”, in Giorgio Tagliacozzo, Hayden V. White (dir.), Giambattista Vico: an International Symposium, op. cit., p. 71, n. 25. Croce in 1911 recalls Vico’s accusation to Grotius of confusion between ius naturale philosophorum and ius naturale gentium (Croce Benedetto, La filosofia di G. B. Vico [1911], Roma/Bari, Laterza, 1973, p. 101).
102 In Vico’s vision, the feelings of the majority of people are the boundaries of reason (Abbagnano Nicola, Storia della filosofia, vol. II “La filosofia moderna: dal Rinascimento all’Illuminismo”, Torino, UTET, 1993, p. 335). Croce in 1911 deems that “Everyone who thinks, as Vico, that customs worth more than law and that customs do not change suddenly, but only gradually and slowly, will not legiferate easily and will not fancy to shape a new humanity according to his subjective model” ( “Chi pensa, come il Vico, che ‘i costumi valgano più delle leggi’ e, insieme, che ‘i costumi non si cangino d’un tratto ma per gradi e in lungo tempo’, non sarà incline al facile legiferare e non s’illuderà di poter plasmare a nuovo l’umanità sopra un modello soggettivo” Croce Benedetto, La filosofia di G. B. Vico [1911], op. cit., p. 103).
103 This is here a subtle, but relevant, difference with Diderot, whose esteem for Le Mercier de la Rivière was just due to the relationship established by Physiocracy between social and natural order: “Au reste, voici sur quoi mon eloge [de Mercier de la Rivière] est fondé: […] personne ne me paraît avoir vu, comme lui, que l’ordre des sociétés était donné essentiellement par l’ordre de la nature, et que vouloir une bonne société et s’écarter de cet ordre, c’était vouloir une impossibilité” (Diderot Denis, Œuvres. Tome Ve: Correspondance, op. cit., p. 738. This letter was written in June or July 1767). See also Minerbi Marco, “Diderot, Galiani e la polemica sulla Fisiocrazia”, art. cit., p. 152.
104 See Soccio Pasquale, “Nota introduttiva”, Vico G., “Scienza Nuova”, in Autobiografia, op. cit., p. 179.
105 See Diaz Furio, Introduzione, op. cit., p. lxxix.
106 Perrot comments: “Du reste, comment intégrer les accidents de l’histoire à une démarche qui cherche l’ordre immuable de la Nature sous l’écume du quotidien et veut construire la science de ses lois?” (Perrot Jean Claude, Une histoire intellectuelle de l’économie politique, xviie-xviiie siècle, op. cit., p. 278).
107 De Ruggiero Guido, Storia della Filosofia, vol. VI “Da Vico a Kant”, op. cit., p. 42-44.
108 Badaloni Nicola, Introduzione a Vico, op. cit., p. 62.
109 Galiani Ferdinando, Dialogues sur le commerce des bleds (1770), op. cit., p. 48-49.
110 Ibid., p. 56.
111 Ibid., p. 195. Charles observes that “Galiani s’inscrit désormais dans la conception traditionnelle du commerce des grains, celle d’un espace ‘soumis à des temporalité asynchrones’” (Charles Loïc, La liberté du commerce des grains et l’économie politique française [1750-1770], thèse pour le doctorat en sciences économiques, université Paris I Panthéon-Sorbonne, 1999, p. 105). See also Orain Arnaud, “‘One must make war on the lunatics”. The physiocrats’ attacks on Linguet, the iconoclast (1767-1775)”, in Steven L. Kaplan and Sophus Reinert (dir.), The Economic Turn: Recasting Political Economy in Eighteenth-Century Europe, London: Anthem Press, 2017, forthcoming.
112 On this point we can cite the Axiom viii: “Things do not settle or endure out of their natural order” (Vico Giambattista, “Scienza Nuova”, in Autobiografia, op. cit., p. 246).
113 “We can safely assume that consumption shapes and varies according to value, just like rarity and value, on their turn, depend on consumption. Then, due to such a relation, the problem is undetermined, as it always is, when two unknown related quantities meet” ( “[E’] da stabilirsi per certo che, siccome la rarità ed il valore dipendono dal consumo, così il consumo secondo il valore si conforma e si varia. E da questa concatenazione il problema si rende indeterminato, come lo è sempre che due quantità ignote, che hanno qualche relazione fra loro, vi s’incontrano”; see Galiani Ferdinando, Della Moneta [1751] e scritti inediti, op. cit., p. 53).
114 “Now I am going to speak about fatica, which is the sole element that gives value to things, not only in artefacts, but also in many natural bodies, such as minerals, stones, wild plants” ( “Entro ora a dire della fatica, la quale non solo in tutte le opere che sono intieramente dell’arte, […] ma anche in molti corpi, come sono i minerali, i sassi, le piante spontanee delle selve, ecc., è l’unica che dà valore alla cosa”, ibid., p. 47).
115 Even though Galiani has been considered a forerunner of the theory of labour value (see Schumpeter Joseph Alois, Storia dell’analisi economica, op. cit., p. 368), his reference to fatica rather expresses it as a real cost: man operates in Nature and on Nature, in order to get, in the well-known Smith’s words, “the necessaries, conveniences, and amusements of human life”. This approach is totally different from the analytical treatment of labour commanded, or labour embedded, we find in the theories of labour value. Here Galiani considers labour as a useful human activity, which produces use value and has nothing to do with the notions of “abstract labour” or the “socially necessary labour” present in the most developed version of the theory. This appears especially when he deals with basic commodities: providentialy, the labourers able to produce foodstuffs are abundant.
116 “Grande verità è quella che la politica non è ingegno metafisicante, ma conoscenza della scabrosità della vita umana” (Galiani Ferdinando, Lettere di Ferdinando Galiani al Marchese Bernardo Tanucci, op. cit., p. 212. The letter is quoted also in Galiani Ferdinando, Dialogues sur le commerce des bleds, op. cit., p. 333).
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