NORTH, SIR DUDLEY

born May 16, 1641, Westminster, Eng. [now in London] died Dec. 31, 1691, London English merchant, civil servant, and economist, an early advocate of what later came to be called laissez-faire. North entered the eastern Mediterranean trade at an early age and spent many years residing in Smyrna and Constantinople (now Izmir and Istanbul), finally returning to England, a wealthy man, in 1680. He then served under Charles II as one of the sheriffs of the City of London and received a knighthood; under James II he was appointed a commissioner of customs. A confirmed Tory, he retired from public affairs shortly after the Revolution of 1688. His fame rests on the contribution to political economy made in his Discourses Upon Trade: Principally Directed to the Case of the Interest, Coynage, Clipping, Increase of Money, published anonymously in 1691 or possibly 1692. This work attracted little attention until reprinted in 1822, after James Mill had hailed the importance of North's ideas as summarized in the biography by his brother, Roger North, published in 1744. The Discourses, though brief and aphoristic, are probably the most thoroughgoing statement of free-trade theory made in the 17th century. Although the older mercantilist view was that trade was the exchange of goods not needed by the producing country, the Discourses insisted that the whole world as to trade, is but as one nation or people, and therein nations are as persons. Sumptuary laws and legal restrictions on interest rates are denounced as harmful and ineffective. Subsequent monetary doctrines are anticipated in the insistence that the supply of money can be left to free market forces without any aid of politicians.