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Econ. Wf'itings, ed. Hull, p. 108). , how much money is necessary to drive the trade of the nation," he supposes that as wages are paid weekly and rents quarterly, the whole stock of money may be taken to circulate about once in seven weeks, and that 5! millions will be enough for an annual expense of 40 millions. " 1 In face of so clear a conception of the national capital and income and of the smallness of the aggregate stock of money compared with the whole of the capital, the modern reader may feel surprised that general economic theory did not spring into existence in Petty's lifetime or soon afterwards.

Dr. Charles Davenant (r656-I714) advanced matters a little. He was commissioner of excise from 1683 to r68g and InspectorGeneral of exports and imports from 1705. His work and influence are inextricably mixed up with those of Gregory King (1648-I712), who let him have the free use of his manuscript, Natural and Political Observations and Conclusions upon the state and condition of England, 1696, which was not printed and published till r8oi. , 18oi. r8 ORIGINS OF ECONOMIC THEORY (cH. I road-book of England, so that he had probably seen with his own eyes far more of the country than many did in those days.

18 .. i}:oduce ne t .. :tlf .. fOduce ne t .. .. :·:::----. 0... 5 .. 10 :tiiP .. ~::::::::::::~.. o... 2 .. If. •.. .. .. ·:· o... 2 .. 11 ·na t .. .. -···--" o... 2 .. -;;..... o... r... s ·--- ...... r... s. ;;~-~~t ......... o... o... r... 5 &c. ·r ORIGINS OF ECONOMIC THEORY 32 [CH. I The idea of the zigzag seems to be that any given sum, say 6oo livres or 6oo,ooo,ooo livres, expended on agriculture, under the circumstances which ought to exist in a well-regulated state, will cause a net produce of equal amount to appear, which goes to the landlords as net product or revenue.

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A review of economic theory by Edwin Cannan

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