Chapter 9

Commerce and finance practical expressions of the instinct of self-preservation which is common not only to all men, but to all living creatures. Early appearance of trading habit in boys. Early examples of trade. Abraham's purchase of a burying-ground from Ephron the Hittite. Solomon's trade with Hiram of Tyre. Herodotus, the first historian, opens his history with an allusion to trade. Trade is based on specialization, and is at once a cause of unity and of disunion. Its extension from individuals to communities. Foreign trade stimulated by variations of value in different communities. Specialization increases efficiency, but makes the worker a machine, and a speculator on the chance that others will want what he makes. International trade also promotes both unity and friction. On the whole, commerce a great promoter of unity. Likewise finance, or money-dealing. Its origin and development. London's catholic taste in foreign securities: sometimes prefers them to the home-made article. Effect of foreign investment on home production and consumption. Foreign finance and productive specialization.