32
While widely recognized as the father of political economy and market economics, clichés abound of Adam Smith as “the preacher of self-interest, religious apologist for unrestricted capitalism, or patron saint of the greedy executive or financier.” 1 While the astute scholar recognizes the philosophical complexities of Smith, nevertheless he is still widely perceived as a thinker who employed reason to preach a gospel of efficiency, keeping moral philosophy and religion at an arm’s length. Indeed, modern economics in general has become completely secularized, with mathematical models and psychological insights used to account for people’s economic decision- making, a role that in centuries prior was left for the philosopher or priest. However, to completely secularize Smith and remove him from any religious context is to fail to recognize the society influences under which he wrote. As a Scotsman, Smith was a faithful member of the Scottish Presbyterian Church his entire life, and was familiar with Calvinist theology and British Scientific Natural Philosophy. Furthermore, Smith’s religious convictions were certainly not in name alone: while it remains unclear exactly what his personal religious beliefs were, Calvinist ideas on the nature of God, providence, and natural law pervade his thinking. While he avoids theological controversies and 1 Oslington, Paul. Adam Smith as Theologian. (New York: Routledge, 2011. Print.) 10 1

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While widely recognized as the father of political

economy and market economics, clichés abound of Adam Smith

as “the preacher of self-interest, religious apologist for

unrestricted capitalism, or patron saint of the greedy

executive or financier.”1 While the astute scholar

recognizes the philosophical complexities of Smith,

nevertheless he is still widely perceived as a thinker who

employed reason to preach a gospel of efficiency, keeping

moral philosophy and religion at an arm’s length. Indeed,

modern economics in general has become completely

secularized, with mathematical models and psychological

insights used to account for people’s economic decision-

making, a role that in centuries prior was left for the

philosopher or priest.

However, to completely secularize Smith and remove him

from any religious context is to fail to recognize the

society influences under which he wrote. As a Scotsman,

Smith was a faithful member of the Scottish Presbyterian

Church his entire life, and was familiar with Calvinist

theology and British Scientific Natural Philosophy.

Furthermore, Smith’s religious convictions were certainly

not in name alone: while it remains unclear exactly what his

personal religious beliefs were, Calvinist ideas on the

nature of God, providence, and natural law pervade his

thinking. While he avoids theological controversies and 1 Oslington, Paul. Adam Smith as Theologian. (New York: Routledge, 2011.

Print.) 10

1

presents some dissenting ideas, Smith’s ideas cannot be

untwined from this way of seeing the world.

This marriage between Smith and Calvinist theology,

however, is not necessary an unhappy one, imposed on him by

the society in which he lived. Rather, the interplay between

freedom and law in Calvinist thought naturally lends itself

to the idea of a competitive market economy. Historically,

this is exemplified through the economic vibrancy of another

group steeped in Calvinist thought: New England Puritans.

Establishing colonies in the New World, Puritans structured

their society around beliefs in God’s providence and man’s

character very similar to Smith’s own. While sometimes

restrained by theocratic meddling, New England nevertheless

developed a flourishing, indeed almost Smithian economy, a

connection that would be incomplete without an exploration

of their shared religious and intellectual heritage.

The personal religious views of Adam Smith are never

made entirely clear in his writings, and Smith made a point

of avoiding discussing specific Christians theological

issues that could be seen as controversial. When Smith took

his Chair at the University of Glasgow in 1751, he signed

the Calvinist Westminister Confession before the Glasgow

Presbytery and took an Oath of Faith, in which he espoused

orthodox Calvinist beliefs, and there is no evidence that

this was not a sincere confession.2 While he was often

2 Oslington, 4

2

critical of ‘superstitious’ religious practices and overly

charismatic religious practices, this is more of an attack

on sectarianism, specifically Roman Catholicism and

Methodism, than on orthodox Scottish Presbyterianism or on

religion in general. Indeed, “any interpreter who takes

criticism of religious practices as evidence of a lack of

faith or commitment has little experience of churches.

Usually, the opposite is true.”3

While publicly adhering to the Scottish Presbyterian

Church, Smith was also influenced by less orthodox religious

thinking. David Hume, an avowed atheist who’s moral theory

replaced morals with utilitarian goals, was counted by Smith

as a intimate friend and confidant, though Smith critiqued

Hume’s working throughout A Theory of Moral Sentiments. Smith also

discusses Stoicism extensively, and his thinking is

profoundly influenced by its individualism view of virtue,

particularly that “to the Stoical wise man, all the events

of human life must be in a great measure indifferent.”4 This

Stoic belief clearly influenced the development of Smith’s

spectator mechanism.

More so than both of these schools of thought, British

Scientific Natural Theology was largely internalized by

Smith, as well as by the majority of his intellectual

contemporaries. Natural theology, based on the works of

3 Oslington, 54 Smith, Adam. The Theory of Moral Sentiments. (Oxford: Clarendon, 1976. Print.) 277.21

3

Bacon, Newton, and others “thought knowledge of God through

the study of nature, and a favourite (sic) metaphor of the

natural theologians was the two books written by God for our

benefit: Nature and Scriptures.”5 In essence, Natural

theology looked to science and nature to revere and learn

about the nature of God. God’s existence was presupposed,

which is a position Smith seems to hold, evidenced to by his

constant references to divine order. While many of the early

Natural theologians held orthodox Christian views, by the

time Smith wrote many intellectuals promoting Natural

philosophy were more properly defined as deists. Deists

believe in the existence of God as the creator of the

universe and the setter of the natural order, but disavow

religious superstition, often including Christian teachings

about the nature of Jesus. Smith seems to believe in a

creator God, who gave the world order and instilled humanity

with a sense of right and wrong. These beliefs, combined

with his silence on almost all issues of specifically

Christian dogma, have led many to infer that Smith is a

deist. This claim is plausible, if unprovable.

Even if Smith is a deist, that does not prevent

Calvinist thought from being a major, indeed even the

primary religious influence on his work. Calvinist thought

in fact has many connections to Natural theology, and on

many issues come to similar conclusions. Calvinist thought

5 Oslington, 9

4

is based on the theological writing of John Calvin, a French

theologian and pastor prominent in the early 16th century

during the heyday of the Protestant Reformation. Calvin did

most of his ministry in Geneva, and churches based on his

work spread throughout Europe, particularly in Scotland,

where is became the established Church. Calvin’s most

important contribution to Protestant theology was his

writings on election. Calvin believed that God created the

universe and has complete providence over it, and that God’s

revelation could be seen through the natural world, but more

importantly through the Bible. Despite God’s perfect

creation, man’s sin corrupted God’s perfect plan for the

universe, separating man from God as the just punishment for

rebellion. This idea correlates with those of Natural

theologians including Smith that God created the universe

and assigned rules and principles that govern it. Smith in

particular believed that man possesses an innate knowledge

of right and wrong. Additionally, Smith’s contention in “the

necessity of justice to the existence of society”6

correlates with Calvin’s idea that God justly punishing sin

in necessary for the existence and order of the universe.

Calvin contended that salvation from the punishment of

sin comes to humanity through the grace of God to those he

elects to be his followers, and is not due to moral works.

There are many Biblical passages used to support this

6 Smith, 89.9

5

position, though the clearest explications are in the

Epistle of Ephesians, such as Ephesians 1:5-8, which says

“He destined us in love to be his sons through Jesus Christ,

according to the purpose of his will, to the praise of his

glorious grace which he freely bestowed on us in the

Beloved. In him we have redemption through his blood, the

forgiveness of our trespasses, according to the riches of

his grace which he lavished upon us.”7 Similarly, Ephesians

2:8-10 states “For by grace you have been saved through

faith; and this is not of your own doing, it is the gift of

God- not because of works, least any man should boast. For

we are his workmanship, created in Christ Jesus for good

works, which God prepared beforehand, that we should walk in

them.”8 Since salvation is a free gift of God and does not

depend on man’s moral accomplishments, Calvinists are

therefore free from perfect adherence to Christian moral

law, since no immoral actions can compromise the salvation

the believer received undeservedly by being elected by God.

However, this does not mean moral laxity should result.

Rather, because a believer is elected and saved by God, and

therefore filled with the spirit of God, they should

willingly and with joy follow God’s commandments, which is

indeed evidence of their election as explained in Galatians

5. Eventually, God will come to judge the world, drawing his7 Nelson, Thomas, and Wayne A. Meeks. The Holy Bible: Revised Standard Version.

(New York: World Bible Publ. 1973. Print.) Ephesians 1:5-88 RSV, Ephesians 2:8-10

6

elect to himself and condemning those that did not follow

him. Calvinist societies were typically theocracies,

governed by strict laws where individuals demonstrated they

were God’s elect through diligently and with joy going about

their work and lives.

Though the theological distinctiveness of Calvinism

rests on the types of doctrinal intricacies that Smith

actively avoided, nevertheless the Calvinist view of God

created a worldview that shaped the intellectual climate in

which Smith wrote. Scottish society was imbued with the

Calvinist ideas of God’s omnipresence and the role of

religion in civil society which, when separated from the

more ‘Christian’ aspects of Calvin’s worked and combined

with the influence of British Scientific Natural Philosophy,

produced what may be called a ‘moderate Calvinism.’ This

moderate Calvinism is described as

“The dominant theology of moderate intellectuals in the

era of the Scottish

Enlightenment… The role of God as a creator and

sustainer of the world is emphasized. The signs of the

divine presence are evident in the natural world; in

this respect, the design argument is widely assumed to

be valid. The beneficial role of religion in civil

society is stressed. Religion contributes to social

order and harmony. When purged of irrational fanaticism

and intolerance, faith exercises a cohesive function

7

through the moral direction and focus it offers human

life. As benevolent and wise, God has ordered the world

so that its moral and scientific laws contribute to

human welfare. The prospect of an eschatological state

in which virtue and felicity coincide, moreover,

provides further moral motivation.”9

Smith seems to fit this description perfectly.

While there are many parallels between Calvinist and

Smithian thinking, the Calvinist idea of ‘Christian freedom’

most affected Smith’s views on economic development.

Christian freedom is the idea that because Christians are

elected and saved by the grace of God, they are free from

having to follow moral law in order to merit salvation, but

out of gratefulness to God and transformation of their heart

by the Holy Spirit willingly and joyfully follow God’s law.

Similarly, while Smith argues for the importance of law for

securing property rights and establishing justice necessary

for the preservation of society, he nevertheless claims

“[General moral rules] are upon occasions commonly

cited as the ultimate

foundations of what is just and unjust in human

conduct; and this circumstance seems to have misled

several very eminent authors, to draw up their systems

in such a manner, as if they had supposed that the

original judgments of mankind with regard to right and

9 Fergusson in Oslington, 7

8

wrong, were formed like the decisions of a court of

judicatory, by considering first the general rule, and

then, secondly, whether the particular action under

consideration fell properly within its

comprehension.”10

Essentially, Smith contends that feelings of right and wrong

are inherent within people, rather than derived from law in

a society. Therefore, being a moral and virtuous person does

not require perfectly following the law. Indeed, men are

free from the necessity of following the law for the sake of

being virtuous, just as the Calvinist is free form the

necessity of following the law to receive salvation from

God.11

True morality and virtue, according to Smith, comes

through the spectator-mechanism. By considering the view of

an impartial spectator, man can see what is good and

virtuous without having to blindly follow the laws of

society. However, by Smith’s own admission the spectator

mechanism is imperfect. To this end, Smith tells his parable

of the man who sees a stranger on the street who is in deep

mourning because he has just lost his father. In an ideal

world, this man would see the stranger through the lens of

an impartial spectator, and recognize the great pain and

sorrow of the stranger and come to sympathize with him.

However, in reality we do not have time to go through the 10 Smith, 160.1111 Blosser in Oslington, 50

9

process of seeing every situation through the perspective of

an impartial spectator and acting accordingly, and neither

are we often inclined to for the sake of a stranger.

However, we still recognize the importance of responding

appropriately in this situation, and

“thus we all, Smith argues, learn over time to lay down

general rules to guide our

behavior, and in effect these rules as shortcuts.

Instead of always going through the impartial

spectator, we can simply refer to the rule we created.

We are not, therefore, beholden to these rules as if

they were divine laws or right and wrong; rather, we

turn to them to guide our daily judgments.”12

Even though we do not have to follow societal laws and

rules, we willingly submit to them because they create

convenient shortcuts for interpreting complex moral

situations. Similarly, according to Calvin though Christians

do not need to follow Biblical law in order to receive

salvation, they recognize the importance of following the

law in order to honor and worship God, which brings peace

and joy to the believer. In both cases, though there is an

authority greater than laws, it is still in the best

interest of the individual to submit to and follow the law.

When humans are not forced to follow law, but freely

submit to it according to their own will and interest,

12 Blosser in Oslington, 52

10

freedom abounds and society can prosper. For Calvin,

“Christian freedom has both a restrictive and an instructive

side. On its restrictive side, we are freed from the anxiety

produced by demands for proper ritual performances (and)

religious superstitions… On its instructive side, we are

freed for the end God intends for us.”13 Because of their

election, Christians are free from the obligation of

following Christian moral law. Out of gratitude towards God,

Christians will then willingly follow the law, because

through following the law they can best “glorify God, and

enjoy him forever,” which according to the Westminister Shorter

Catechism is “the chief end of man,”14 and therefore the

ultimate goal and in the best interest of Christians.

Similarly, even though Smith believes people are not

necessarily bound by society’s laws and morals, they

willingly submit to them because it best serves their self-

interest. Smith’s sees laws as an attempt to bring about

proper moral sentiment and and will lead society to

flourish. Therefore, even though laws are artificial, it is

in the best interest of every individual to follow them,

because if everyone follows the laws society will be best

suited for the flourishing of the individual. Just like

Calvin, Smith believes when we willingly submit to the law

we bring about our own good. Smith explains “by acting

according to the dictates of our moral faculties, we 13 Blosser in Oslington, 5214 Blosser in Oslington, 56

11

necessarily pursue the most effectual means for promoting

the happiness of mankind, and may therefore be said, in some

sense, to co-operate with the Deity, and to advance as far

as in our power the plan of Providence.”15 Submitting to our

natural moral sentiments that are reflected in law is the

natural and best state for society, just as Calvin contends

submitting to God’s moral law is the original and natural

state of all people. Indeed, in many ways the calling of the

Calvinist and the Smithian is the same.

Despite the numerous parallels between Smith and

Calvin, there is of course one stark difference: Smith’s

world is distinctively nontheocentric. Calvin believes that

humans are made for God; the greatest purpose and joy of our

life comes from worshiping God and brining him glory. Smith,

however, contends we are made for society. When everyone in

society has correct moral sentiment, and is therefore

following the intent of the Creator, we create a society

that flourishes and prospers in the way it was meant to.

Thus, while the most fundamental goal of the Calvinist is

spiritual, Smith focuses on the moral and material. However

while different, these goals are not incompatible. As the

Calvinist seeks to live a life that glorifies God, he

dutifully goes about his about his work, seeking his own

benefit and respecting moral law. In the process of pursuing

this life, he will almost certainly become the productive

15 Smith, 166.7

12

member of society envisioned by Smith. Smith desires people

to have good moral sentiment, accept their position in life,

and work hard for their own best interest. This is exactly

the life lived by the devout Calvinist, who adds the

dimension of being devoted to following God.

MERT STARTS WRITING:

Having established a number of parallels between

Calvinist belief and Smithian moral and economic principles,

we can now evaluate the extent to which they inform

Puritanism and more specifically shaped the development of

early Puritan societies in New England during the 17th

century. First we must begin by generally defining what is

meant by “Smithian economic principles” as is outlined in

Adam Smith’s The Wealth of Nations. Next we will look at the

doctrinal beliefs of the major Puritan sects finding that to

a large extent there is adherence to core Calvinist belief

systems. I will then illustrate the abstract potentiality

for the doctrinal views of Puritanism to encourage the

development of societies and economic systems in line with

Smithian ideals. And finally, I will identify distinct

traces of Smithin economic principles found in the evolution

and organization of the unusually prosperous Puritan

colonies in New England.

Adam Smith’s Wealth of Nations looked foremost to

challenge the prevailing contemporary view that gold and

13

silver constituted wealth. Smith criticized the mercantilist

model which directed public policy measures towards

maximizing exports while minimizing imports; or in effect

the hording of currency. Instead Smith stated that true

wealth could only be measured by the goods and services

produced by a nation, or the gross national product. In

turn, he suggested that efforts of the government be

centered around expanding domestic production if promoting

maximum prosperity was the intended aim16.

How then could this be achieved? The basic principle

from which Smith’s argument proceeds is simple; the division

of labor. If individuals were allowed to exist in a society

where there was free exchange of goods and provision of

services, inevitably each man (and nation) would specialize

in those activities which they were most suited to. Most

importantly this process would be entirely automatic guided

by an “invisible hand”; profit-seeking industries would

naturally emerge to accommodate the needs of the public. In

turn this increased specialization would increase human

productivity enormously. People would develop their skills,

employ labor-saving machinery and exchange their specialist

products with others increasing the net surplus of

productivity across the whole population. The growth of

capital would in turn allow for greater investment into

16 De Marchi, Niel. “Adam Smith and Natural Liberty.” Perkins Link Seminar 2, Durham, NC. Lecture.

14

technology which in turn would provide for even greater

technological advancement and efficiency17.

What then would this translate to in terms of tangible

public policy recommendations? Governments would need to

first and foremost allow for the market, both domestic and

global, to operate as unhindered as possible. Smith stated

that legislators would be misguided in thinking that

intervention could produce greater production increases than

the free activity of individuals. Next, government would

have to cultivate an environment which reassures investors

that their capital will remain safe. This would take the

form of maintaining rule of law and providing assurance of

adequate defense from invaders. Furthermore, in a tempering

of his endorsement of laissez-faire policies, the government

should also undertake efforts to build infrastructure,

public works and promote education; increasing the ease with

which trade could occur alongside investments in human

capital. In collecting the necessary taxes for the above,

rates should be set proportional to the people’s ability to

pay with caution taken to avoid undue accumulation of

debt.18

Having broadly identified Smithian economic principles,

we can now turn our attention to various Puritan groups and

to extent to which their particular doctrinal beliefs fall

in line with the development of such an economic system. To 17 “Adam Smith and Natural Liberty”18 “Adam Smith and Natural Liberty”

15

begin with we must look at defining Puritanism itself; which

religious groups fell under this designation and what

distinct characteristics did they exhibit? In An Introduction to

Puritan Theology, Edward Hindson simply states that “Puritans

were Calvinists”19. On the other hand while Max Weber finds

Calvinism as most totally embodying the “capitalist spirit”

he expands his definition to include three other distinct

Protestant groups, Pietism, Methodism and Baptists, as

belonging to this tradition20. I will therefore focus my

discussion on Calvinism while including a brief explanation

for the variances of the remaining groups.

The four main branches of “ascetic Protestantism” all

contain similar ethical requirements for its adherents

although they differ in dogmatic structure. When we look at

the influence of the psychological sanctions of Puritanism

which, originating in religious belief and the practice of

religion, we find that they gave a direction to practical

conduct which provided for the economic prosperity.

The main tenant of Calvinism is the belief in

predestination and by extension the existence of two groups

within Mankind: those who are saved under the grace of God

and those who are not. Earthly standards of justice become

meaningless and insulting; those who are saved invariably 19 Hindson, Edward E. Introduction to Puritan Theology: A Reader. (Grand Rapids:

Baker Book House, 1976. Print.) 2220 Weber, Max. The Protestant Ethic and the Spirit of Capitalism. (New York: Taylor &

Francis, 2005. University of Minnesota. Web. 22 Apr. 2014.) 51-52

16

embody virtue in their actions. This produced a general

rejection of indulgence in sensual and emotional elements of

culture; these were not means to salvation and therefore

unbecoming of someone who was saved. Furthermore this

doctrine had a deep psychological and isolating impact; each

person had to follow his path alone to meet his destiny. No

one was there to help him nor did there exist a means to

attain God’s grace if He had decided to deny it; church

sacraments had no relevance. While interaction with the

celestial was thus carried out in spiritual isolation,

social organization persisted as labor became understood as

demonstrating the impersonal social usefulness believed to

be required by God. 21

While doctrinal dogma thus stated that the Chosen were

determined at birth, nevertheless psychological mechanisms

arose amongst Calvinist societies to identify those who were

in a state of grace. The first was an active demonstration

of absolute belief in the fact that one was saved through

the avoidance of all evil temptation, and secondly, through

the economic activity22. While the former seems somewhat

self-evident and universal of all Christian doctrine, the

elevation of worldly activity to this degree of importance

seems at first to be somewhat unusual.

The explanation for this come in the form of the

somewhat novel idea of a religious “calling”, first 21 Weber, 53-7922 Weber, 53-79

17

developed by Luther during the Reformation. This referred to

an idea that worldly activity had a larger religious

significance and that people had a duty to fulfill the

obligations imposed upon them by their position of the

world. This “moral justification of worldly activity”

provided not only a religious basis, but a need for in the

case of Puritan doctrine, for the accumulation of wealth.

Humans were seen as the vessel that God worked through to

demonstrate the grace of an individual. Thus faith was shown

in objective results, and activity that increased the Glory

of God were seen as a sign of being chosen. This created an

expectation of self-control with little sympathy for

weakness; a life of works contributing to the greater of

good of society was seen as the greatest virtue. This

culminated in an attitude in which a neighbor’s sins, given

that he was seen as acting as a vessel of God, evoked hatred

because he was disgracing his Creator. This worked manifold,

firstly, virtuous worldly behavior greatly elevated itself

in importance, resulting in a Christianization of societal

norms. Next, within this society in which the importance of

worldly virtue was drastically magnified, virtue came also

to correspond directly with the accumulation of material

wealth.

Before advancing to the larger societal consequences of

Puritanism it’s important to also touch upon the other three

branches: Pietisim, Methodism and Baptists. Pietism is

18

perhaps most closely linked to Calvinism, adherents also

believed in predestination and tried to live a life freed

from all the temptations of the world and in all its details

dictated by God’s will. There was however greater emphasis

on the emotional side of religion than with Calvinism and

they believed in the methodical development of one’s grace

in terms of the law and that God gives signs to those in

states who waited. Pietism thus left some room for human

activity as being doctrinally relevant. Methodism went even

further in combining the emotional and ascetic arriving at a

“methodical systemic nature of conduct”. Doing good works

were seen as the only means of knowing one’s state of grace

and actively experiencing the feeling of grace was seen as

necessary for salvation. Thus one looked explicitly at

conduct in assessing ones state of Grace. Baptists were

probably most separated from Calvinism in that they believed

in the idea of a unified believers’ church; a community of

only true believers rather than one of predestined Chosen

individuals. One achieved grace through individual

revelation; one simply had to wait for the Spirit and while

avoiding sinful attachments to the world. While based on

different foundation than Calvinism, Baptists still rejected

all idolatry of the flesh as a distraction, devalued

sacraments as a means to salvations, and had a comparable

19

interest in economic occupations (increased by their

rejection of political involvement).23

The most important commonalities of the Puritans faith

was the conception of the state of religious grace as a

status which marks off its possessor from the degradation of

the flesh from the world. This was a state that could not be

achieved from magical sacraments or good work, but only

through particular kinds of conduct. Individuals thus had an

incentive to methodically supervise his own state of grace

and practice asceticism; this in turn meant planning one’s

whole life systematically in accordance with God’s will.24

Now we can trace the connection between Puritan faith

and material success. While they remained suspicious of

wealth as a dangerous temptation, possessions were only

objectionable to the extent that they encouraged the risk of

relaxation in place of activity which promoted God’s glory.

There was thus a great moral objection to relaxation,

idleness and distraction from the pursuit of a righteous

life. Wasting time was seen as one of the the worst of sins

as it was understood as time lost promoting God’s will; even

if significant amounts of wealth has already been

accumulated. Hard and continual mental and bodily labor was

seen as the ideal as an end in and of itself. Puritanism

thus opposed spontaneous and wasteful enjoyment of life and

its opportunities. As a doctrine it rejected spending money 23 Weber, 80-10124 Weber, 50-101

20

on entertainment that did not serve God’s glory and there

was an ethical duty to hold and increase their possessions.

Combined with a condemnation dishonesty and impulsive greed

in activity, we can see clearly that Puritanism

fundamentally favored the development of rational bourgeois

economic life.25

Having illustrated the most prominent Puritan sects and

their general theological leanings we can begin to trace the

economic development of the New England colonists. From its

conception, we can see that Puritan belief had a hand in

directing the development of the colonies. The initial

willingness to even migrate to the New World reflects a

desire to adhere to underlying Puritan doctrine. The need to

live a life which demonstrated the glory of God, both

materially and morally, was the primary motivation for the

initial waves of colonization. Puritan congregations, who

had often times found their economic opportunities limited

due to their beliefs, desired the opportunity to prosper

within a model Christian community. Thus the readiness of

the Puritans to submit to harsh realities, leave ancestral

homes and their desire to lead exemplary Christian lives,

allowed in actuality for the very existence and growth of

the colonies26.

25 Weber, 102-12226 Bremer, Francis J. The Puritan Experiment: New England Society from Bradford to

Edwards. (New York: St. Martin’s, 1976. Print.) 31

21

While it is difficult to generalize the development of

the varied settlements of New England, we can nevertheless

examine certain specific developments which reflect larger

trends in colonial organization. Often initial investment

for a settlement, as seen specifically with Plymouth, was

done in conjunction with prospectors who established

companies which exercised ownership of all claimed land.

This created systems of “enforced communism” whereby no

single individual had ownership over the individual products

of his toil; all profits would be redistributed to

shareholders at the end of the fiscal calendar. This system

proved deeply unpopular amongst Puritan settlers who found

it fundamentally conflicted with their individual religious

mandate. In the case of Plymouth and elsewhere, settlers

were seen consistently buying out of these arrangements

preferring to incur huge personal debts rather than toil

under a collectivist economic system27. In this way we see

even in the initial steps taken by colonists the underlying

Puritan pursuit of individual self-expression helped pave

the way for a Smithian economic system.

Another relevant anecdote which demonstrated the

proclivity of Puritan pursuits to bring colonial society

closer to one envisioned by Smith was on the issue of the

commons; a collective owned space present in many early

settlements. Initially many towns included a central area

27 Bremer, 34-35

22

which was owned by all. Any trees found within this region

was allowed to be felled for personal use by members of the

settlement. However, as the lumber industry became

increasingly lucrative it became clear that colonists were

beginning to clear far greater amounts of lumber than

personal use would have merited. As a result these commons

were soon sold to private citizens and removed from

existence. In this way we seen the pursuit of Puritan aims

resulting in the strengthening private property rights and

moving colonial society towards one which did not

inefficiently expend government assets. This is in turn very

much in line with Smithian recommendations on the topic.28

While the above two examples above represent more

general consequences of an individual driven shaping social

ordering, we can find even clearer examples of the direct

effects of Puritanism in shaping the development of Colonial

society when we examine the sermons delivered by religious

leaders of the time. Looking more specifically at those

found in Connecticut from 1690-1765 we find that they urged

adherents to be “industrious and seek wealth”. Pastors would

proclaim the importance of “keeping accounts straight,

buying and selling with care and watching the success and

failures of others so as to discover the way to

prosperity”29. In this we see Puritan doctrine taking the 28 Bushman, Richard L. From Puritan to Yankee: Character and the Social Order in

Connecticut, 1690-1765. (Cambridge: Harvard UP, 1867. Print.) 2229 Bushman, 22

23

form of encouraging colonists to take individual

responsibility for their financial endeavors. There is no

mention of moral obligations to help one another or to seek

refuge in the alms of the Church. Taken even further we see

this same pastor declare, “A diligent man is raraely an

indigent man…would a man rise by his business? I say let him

rise to business…was not wealth a sing of divine favor?”30

Inequality is thus underlined as being a part of God’s

design. The best way to serve the greater society, as

alluded to Smith’s Theory of Moral Sentiments, is to achieve

personal success to serve both as a model to others and

virtuously enrich society as a whole.

We find further evidence of such thinking through a

quote of one particular pastor, who remains unnamed, and who

is quoted as proclaiming to his congregation, “Let there be

no Drone in the Hive, every man is to take some fair way

that the whole Hive may be better for him.31” We see then

the religious imperative to find a personal calling in the

world through the pursuit of useful work; this was how man

was to serve God. In this we see a clear and unambiguous

reproduction and endorsement of two key Smithian principles;

the first of the larger societal benefits of individually

driven economy activity, and secondly of the importance of a

specialization of labor in achieving this prosperity.

30 Bushman, 2331 Bushman, 23

24

Further evidence of the overlap of Smithian economic

principle with Puritan doctrine can be seen in another

sermon which took place during this same time period. The

pastor in question is quoted as stating that an “occupation

is an ordinance of God for safeguards against the

Temptations of the Devil”. He further continues to underline

the virtue of work as providing an “outlet for psychic

energies” denied elsewhere in Puritan moral code;

unproductive diversion was seen as preventing a relapse into

sin. This served to reinforce the prevailing notion that the

“pleasures of watching an estate grow…were ample

compensation for the hours missed in the ale house.32” We

see here Puritans embodying the idealized Smithian

hypothesis for ensuring the increasing prosperity of

society; reinvestment of surplus goods into productive

activity to further increase its yield.

We see additionally that this religiously sanctioned

pursuit of surplus as a means in and of itself permeated

through all levels of colonial society having significant

effect on the prevailing social norms of the time.

Connecticut Puritans as “farmers… could grow most things

they needed but were not content with this lot, they wanted

to trade in order to improve their living conditions and

raising their standing in the community.33” This did not

32 Bushman, 2333 Bushman, 25

25

merely extend to the farmer class as “virtually everyone

yearned for luxuries beyond the bare essentials34.”

A deeper examination of Puritan ideas demonstrates this

phenomenon went further than simply a doctrinal

encouragement of seeking surplus and acquiring wealth as a

means to demonstrate their grace under God. While Puritans

rejected fashions that were ‘immodest’ their doctrine also

stated individuals should dress according to their station

in life. Thus it became a demonstration of social status and

virtue to acquire and clothe oneself in expensive clothing,

and paintings from the era demonstrate that “even middle-

class individuals were seen dressed in fineries35”. Not only

did this Puritan pursuit further encourage the development

of specialization of trade but also simply further motivated

economic productivity.

In addition to encouraging free trade within

settlements, we can also find examples of Puritan colonists

explicitly rejecting attempts to level restrictions on

regional and international economy trade. A number of such

occurrences of resistance can be found in early colonial

history. One prominent case can be found in the actions of

the colonists in 1668 in response the town of Northampton,

Massachusetts attempted to impose to duties on all imports.

This law was met with such opposition in all parts of the

Commonwealth that a petition was circulated and the act was 34 Bushman, 2635 Bremer, 34-35

26

soon rescinded. This response is very much in line with

keeping with the ideal Smithian economy which rejects

attempts by government officials to infringe upon economic

liberty36. Another example can be found in resistance to

regular attempts by Britain to impose upon the colonies the

restriction of only having one port from which to engage in

trade. The colonists simply ignored any such attempts at

regulation.37 One last example can be found in the failure

of price controls. A number of attempts were made in the

early Colonial period in Connecticut to keep the prices of

certain goods and services low to allow the poor to provide

for their basic needs. These attempts went unheeded and soon

attempts were abandoned38.

Having identified elements of Puritan doctrine giving

way to the development of a society along Smithian economic

principles, what then were the tangible results for New

England? Literature on the topic states that, “Transatlantic

visitors constantly remarked about the few signs of poverty

in the colonies.” Further, that the “typical colonial

household was able to maintain its very high material

standard of living [even] in the face of a population boom;

36 Trumbull, James Russell, and Seth Pomeroy. History of Northampton,

Massachusetts, from its Settlement in 1654. (Northampton: Press of Gazette

Printing, 1898. Print.) 195-19737 Perkins, Edwin J. The Economy of Colonial America. (New York: Columbia UP,

1980. Print.) 1338 Bushman, 24

27

this was a notable achievement that had rarely if ever

achieved by any other society”. Next, that “given existing

technology and the availability of natural resources this

commercial-agricultural society was probably functioning at

near optimum efficiency”. And, “by the mid-18th century if

not earlier, the typical white household in the mainland

colonies was almost certainly the highest standard of living

anywhere around the globe.39” Curiously this same text

states that “in comparison with the economies of its more

regulated European counterparts, colonial North America was

a much closer approximation of the open, free-market society

advocated by Adam Smith”. We find then a level of

independent confirmation both of the validity of our

observations that Puritans indeed did oversee the creation

of an economy truly among Smithian ideals and additionally,

and additionally in reaffirming its unmitigated success in

bringing prosperity to the Puritan colonists.

39 Perkins, 14

28

Work Cited

Bremer, Francis J. The Puritan Experiment: New England Society from

Bradford to Edwards. New York: St. Martin’s, 1976. Print.

Bushman, Richard L. From Puritan to Yankee: Character and the Social

Order in Connecticut, 1690-1765. Cambridge: Harvard UP, 1867. Print

De Marchi, Niel. “Adam Smith and Natural Liberty.” Perkins

Link Seminar 2, Durham, NC. Lecture.

Hindson, Edward E. Introduction to Puritan Theology: A Reader. Grand

Rapids: Baker Book House, 1976. Print.

Nelson, Thomas, and Wayne A. Meeks. The Holy Bible: Revised

Standard Version. New York: World Bible Publ. 1973. Print

Oslington, Paul. Adam Smith as Theologian. New York: Routledge,

2011. Print.

29

Perkins, Edwin J. The Economy of Colonial America. New York:

Columbia UP, 1980. Print.

Smith, Adam. The Theory of Moral Sentiments. Oxford: Clarendon,

1976. Print.

Trumbull, James Russell, and Seth Pomeroy. History of

Northampton, Massachussetts, from its Settlement in 1654. Northampton:

Press of Gazette Printing, 1898. Print.

Weber, Max. The Protestant Ethic and the Spirit of Capitalism. New York:

Taylor & Francis, 2005. University of Minnesota. Web. 22

Apr. 2014.

-introduce Puritans and their theological leanings

-Weber and the Protestant Work Ethic

-look at development of New England Purtian society,

particularly the economic system. Show the influence of

Protestant thought, particularly the parts shared with

Smith, on the economic development.

-Think about how the Puritans just wanted to live simple

lives and honor God with their professions- ie. They each go

about working hard and pursuing their own best interest

(Smith)

-See if you can show the NE economy developed along Smithian

lines.

30

-Maybe talk about how when Smith was alive (mid 1700’s) the

Puritans were breaking free of theocracy and the economy was

really expanding- same type of progressive thinking as

Smith?

Some quotes on Puritans:

Puritans- “Thus Puritanism became a doctrinal movement. It involved a rediscovery of God’s sovereignty and Christ’s all-sufficiency. It, like the Continental Reformation, was arevival of Augustinianism and Biblical theology. At the coreof Puritan sentiment was an intense disgust from the Roman Catholic emphasis on man’s ability to merit his own salvation.”- Hindson 18

“Thus Puritanism touched men of God in many denominations and became the basis of modern-day evangelicalism.”- Hindson18

“A seventeenth-century contemporary of the Puritans described them as ones who honored God above all else and who believed that the best Christians should be the best husbands, wives, parents, children, masters, and servants, so that the doctrine of God might be glorified and not blasphemed.”- Hindson 19

“The key to Puritan devotion was discipline. The Christian life is a disciplined life, not a happy-go-lucky one.”- Hindson 21

-Strong emphasis on law- comes from belief in scripture- Connection to Smith’s beliefs in natural law, and JUSTICE asthe basis of society. Idea of justice (God’s need for justice) the same.

31

“Thus the Puritans emphasized the practical use of the law; to restrain sin, to lead men to Christ, and to direct the believer’s conduct. In this they closely followed the teaching of Calvin, who had urged that the law be preached to show the sinner his great failure and need to encourage the believer to strive for holiness and integrity.”- Hindson22

Sources: The Puritan Experiment: New England Society from Bradford to Edwards By Francis J. Bremer

http://www.d.umn.edu/cla/faculty/jhamlin/1095/The%20Protestant%20Ethic%20and%20the%20Spirit%20of%20Capitalism.pdf

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