Bentham via Dumont on the Balance of Trade

In this chapter, Michael Quinn argues that although Bentham’s only works on international trade were discussions on “the balance of trade” and “colonial trade,” these works reveal several new aspects of Bentham’s broader political economy. Like Smith, Bentham considered international trade to be mutually beneficial and strongly criticized mercantilist fallacies concerning balance of trade and the fetishization of precious metals. However, Bentham’s views differ from Smith’s on the issues of paper money and inflation. The chapter explains Bentham’s struggles to combine elements of both commodity and credit theories of money in a coherent package.