Dear Mason

Thanks for the reference, had not read Schmoller before.  I agree of course
that we need to focus on the meanings of words, but Besomi’s summary of OED
does seem helpful in distinguishing (at least!) the two very distinct
meanings – his 1 and 2

On that connection, I feel that Schmoller’s usage tends to fall between the
two stools.

Regarding meaning 1.  At the very general level, states can fund themselves
in different ways, using a big bureaucracy and direct taxation, or
a small bureaucracy using indirect taxation (collected via merchants).
I am inclined to believe this dilemma has troubled statesmen since at least
the inception of coin use around 500 BC.  For evidence I would point to the
long and detailed 'Salt and Iron Debate', held in China in 81 BC  (I note
Gale's translation is now available on the web).  My no doubt controversial
view is that very similar debates were frequently held from 500 BC onwards
in Europe, and for that matter India and Persia too.  China was exceptional
merely in that it very early chose not to hold them in camera.

Regarding meaning 2.  At a very detailed level, at least part of the time,
Adam Smith seems to use the term ‘Mercantile System’ in order to avoid more
specifically criticising the ‘Act to Encourage Coyning’ of 1666, and thus by
implication the great John Locke, and indeed the ‘Glorious Revolution’
itself.  The clear sarcasm in what Smith writes on seigniorage is surely
thought provoking?

Robert Tye