Moderate Liberalism and the Scottish Enlightenment: Montesquieu, Hume, Smith and Ferguson

Examines how Montesquieu, Hume, Smith, and Ferguson's foundational liberal theories responded to the moral and civic challenges of early capitalism * Brings together discussions of key Enlightenment thinkers Montesquieu, David Hume, Adam Smith, and Adam Ferguson * Recaptures a conceptual space in the famous eighteenth-century commerce and virtue debates, which illustrates the possibility that one may accept the general principles of modernity while maintaining a healthy skepticism towards commerce * Compares how Montesquieu and key thinkers of the Scottish Enlightenment developed their distinct theories of honour in the context of eighteenth-century high finance, namely, in response to the infamous collapse of the Mississippi and South Sea ‘bubbles’ (1720) * Provides a heuristic device for identifying when commercial innovation poses a threat to liberal societies, and a framework for balancing commercial ends with the public good under conditions of liberal democracy * Expands the currency of ideas available in foundational liberal thought for identifying an emotional quality that is necessary for twentyfirst-century citizenship __Montesquieu’s Moderate Liberalism and the Scottish Enlightenment__ responds to a perennial problem in political theory: how to balance commercial considerations with the public good. It investigates this dilemma through the lenses of Enlightenment thinkers whose liberal theories responded to the hazards of commercial innovation during capitalism’s nascent stages. Vassiliou argues that Montesquieu, David Hume, Adam Smith, and Adam Ferguson represent a moderate perspective in foundational liberal thought, which emphasizes the critical importance of honour. He compares how their liberal theories uniquely channel human beings’ desire for honour to nourish a sense of interpersonal magnanimity within an inward-looking, liberal commercial world. In an age of polarized extremes, we have witnessed restive democracies flirting with populist, illiberal responses for managing the hazards of capitalist innovation. Montesquieu and his Scottish counterparts’ foundational liberal theories offer us more viable, middle-ground prescriptions which are sensitive to the emotional constitution of a liberal society. Contents 5 Preface: A Liberal Framework for Inspiring Magnanimity in the Modern Commercial World 6 Acknowledgements 14 Introduction: Montesquieu’s Moderate Liberalism and the Scottish Enlightenment 17 Chapter 1 From High Society to High Finance: John Law’s System and the Spectre of Modern Despotism 41 Chapter 2 ‘Real Wealth’ versus ‘Fictional Wealth’ in an Age of High Finance: Montesquieu, Hume and Smith 66 Chapter 3 ‘Ancient Prudence’ versus ‘Modern Prudence’: Montesquieu’s Response to Harrington 87 Chapter 4 Montesquieu and Hume’s English and French Affinities 107 Chapter 5 Liberty and Honour in Britain and France 132 Chapter 6 Montesquieu’s Honour 150 Chapter 7 A Liberal Art for the Commercial World: Adam Smith and Adam Ferguson 169 Conclusion: Moderate Liberalism for a Commercial World in Transition 194 Bibliography 203 Index 214