Essay Questions

Explain Daniel Defoe’s ideology in “Of the Multiplicity of Banks.”

Defoe explains, “And first, allowing those many banks could, without clashing, maintain a constant correspondence with one another, in passing each other’s bills as current from one to another, I know not but it might be better performed by many than by one; for as harmony makes music in sound, so it produces success in business.” Defoe endorses the multiplication of banks. Numerous banks would spread out the banking activities .Moreover, it would guarantee that a single bank would not monopolize the banking services. Cooperation among the banks would formulate a harmonious economy that would benefit all merchants and savers.

Why does Defoe encourage “a civil war among merchants”? - “Of the Multiplicity of Banks”

Defoe writes, “A civil war among merchants is always the rain of trade: I cannot think a multitude of banks could so consist with one another in England as to join interests and uphold one another’s credit, without joining stocks too; I confess, if it could be done, the convenience to trade would be visible.” The war denotes competition among merchants which would result in perfect competition. Merchants would compete perfectly among each other when there are multiple banks which would fund their businesses. Trade would boom due to the war among merchants. Consequently, consumers will have numerous options for their commodities.

Expound Defoe’s foremost argument in “Of The Highways.”

Defoe asserts, “ I make no question but if it was taken into consideration by those who have the power to direct it, the kingdom might be wholly eased of that burden, and the highways be kept in good condition, which now lie in a most shameful manner in most parts of the kingdom, and in many places wholly unpassable, from whence arise tolls and impositions upon passengers and travellers, and, on the other hand, trespasses and encroachments upon lands adjacent, to the great damage of the owners.” Repairs would restore the conditions “of the highways”. The highways are central infrastructure in transportation; hence, their repairs would be remarkable. Poor roads makes traveling uncomfortable. Defoe insists that the highways should be well-maintained for the benefit of the entire kingdom.