Books

First edition and one of a very small number of copies containing Barrois's catalogue of publications for sale, which lists Cantillon's work with his initial. Richard Cantillon (c.1680-1734) was an Irish-born banker and economist forced to emigrate to continental Europe by the Williamite confiscations. He honed his financial skills working for the British Army's paymaster-general during the latter stages of the War of the Spanish Succession. He next proved his understanding of the market by making fortunes speculating against John Law's Mississippi Company and by purchasing put options (the right to sell at a predetermined price) during the height of the South Sea Bubble. His successful speculations reinforced his view that the monetary system must be based on intrinsically valuable metals. The Essai, his only published economic work, carries the imprint of Fletcher Gyles, a leading London bookseller who had died some 14 years earlier. In reality, the book was published clandestinely but with a "permission tacite" by Guillyn in Paris. It is notable for its model building, its analysis of market forces and the role of the entrepreneur, its outline of the circular flow of income, and its monetary theory. The Essai had a significant influence on Quesnay's idea of the circular flow of income and on Adam Smith's theory of resource allocation in the Wealth of Nations (1776). In distinguishing between market price and intrinsic value, and by showing how resources moved into those sectors where the market price was above intrinsic value and away from those sectors where the market price was below intrinsic value, Cantillon influenced Smith's famous distinction between market price and natural price. He also pre-empted later studies of human population with a brief but almost complete anticipation of the principles of Malthus. Books That Made Europe, p. 140; Cossa 243.1; Einaudi 846; En français dans le texte 159; Goldsmiths' 8989; Higgs 938; INED 933; Kress 5423; Mattioli 552; McCulloch 52; Sraffa 682. Duodecimo (165 x 95 mm). Contemporary mottled calf, red morocco label, gilt floral devices to compartments, marbled endpapers, red edges. Housed in a custom wooden slipcase with sliding panel entrance. Woodcut title page device, head- and tailpieces. Joint ends and corners expertly restored, thus presenting nicely; minor horizontal crease and very light foxing to half-title and title, contents crisp and clean, a single, tiny round wormhole to head of book block from p. 185 on, just touching text below headline. A very good copy.