Religion and the Rise of Capitalism

vacates is occupied by a new institution, armed with a novel doctrine. If the Church of the Middle Ages was a kind of State, the State of the Tudors had some of the characteristics of a Church; and it was precisely the impossibility, for all but a handful of sectaries, of conceiving a society which treated religion as a thing privately vital but publicly indifferent, which in England made irreconcilable the quarrel between Puritanism and the monarchy. When the mass had been heated in the furnace of the Civil War, its component parts were ready to be disengaged from each other. By the end of the seventeenth century the secular State, separate from the Churches, which are subordinate to it, has emerged from the theory which had regarded both as dual aspects of a single society. The former pays a shadowy deference to religion; the latter do not meddle with the external fabric of the political and social system, which is the concern of the former. The age of religious struggles virtually ends with the Treaty of Westphalia in 1648. The age of the wars of economic nationalism virtually begins with the war between England and Holland under the Commonwealth and Charles II. The State, first in England, then in France and America, finds its sanction, not in religion, but in nature, in a presumed contract to establish it, in the necessity for mutual protection and the convenience of mutual assistance. It appeals to no supernatural commission, but exists to protect individuals in the enjoyment of those absolute rights which were vested in them by the immutable laws of nature. “The great and chief end of men uniting into commonwealths and putting themselves under government is the preservation of their property.”6

While the political significance of this development has often been described, the analogous changes in social and economic thought have received less attention. They were, however, momentous, and deserve consideration. The emergence of an objective and passionless economic science took place more slowly than the corresponding movement in the theory of the State, because the issues were less absorbing, and, while one marched in the high lights of the open stage, the other lurked on the back stairs and in the wings. It was not till a century after Machiavelli had emancipated the State from religion, that the doctrine of the self-contained department with laws of its own begins generally to be applied to the world of business relations, and even in the England of the early seventeenth century, to discuss questions of economic organization purely in terms of pecuniary profit and loss still wears an air of not quite reputable cynicism. When the sixteenth century opens, not only political but social theory is saturated with doctrines drawn from the sphere of ethics and religion, and economic phenomena are expressed in terms of personal conduct, as naturally and inevitably as the nineteenth century expressed them in terms of mechanism.

Not the least fundamental of divisions among theories of society is between those which regard the world of human affairs as self-contained, and those which appeal to a supernatural criterion. Modern social theory, like modern political theory, develops only when society is given a naturalistic instead of a religious explanation, and a capital fact which presides at the birth of both is a change in the conception held of the nature and functions of a Church. The crucial period is the sixteenth and seventeenth centuries. The most important arena (apart from Holland) is England, because it is in England, with its new geographical position as the entrepôt between Europe and America, its achievement of internal economic unity two centuries before France and two and a half centuries before Germany, its constitutional revolution, and its powerful bourgeoisie of bankers, shipowners, and merchants, that the transformation of the structure of society is earliest, swiftest, and most complete. Its essence is the secularization of social and economic philosophy. The synthesis is resolved into its elements⁠—politics, business, and spiritual exercises; each assumes a separate and independent vitality and obeys the laws of its own being. The social functions matured within the Church, and long identified with it, are transferred to the State, which in turn is idolized as the dispenser of prosperity and the guardian of civilization. The theory of a hierarchy of values, embracing all human interests and activities in a system of which the apex is religion, is replaced by the conception of separate and parallel compartments, between which a due balance should be maintained, but which have no vital connection with each other.

The intellectual movement is, of course, very gradual, and is compatible with both throwbacks and precocities which seem to refute its general character. It is easy to detect premonitions of the coming philosophy in the later Middle Ages, and reversions to an earlier manner at the very end of the seventeenth century. Oresme in the fourteenth century can anticipate the monetary theory associated with the name of Gresham; in the fifteenth century Laurentius de Rudolfis can distinguish between trade bills and finance bills, and St. Antonino describe the significance of capital; while Baxter in 1673 can write a Christian Directory in the style of a medieval Summa, and Bunyan in 1680 can dissect the economic iniquities of Mr. Badman, who ground the poor with high prices and usury, in the manner of a medieval friar.7 But the distance traversed in the two centuries between 1500 and 1700 is, nevertheless, immense. At the earlier date, though economic rationalism has proceeded far in Italy, the typical economic systems are those of the Schoolmen; the typical popular teaching is that of the sermon, or of manuals such as Dives et Pauper; the typical appeal in difficult cases of conscience is to the Bible, the Fathers, the canon law and its interpreters; the typical controversy is carried on in terms of morality and religion as regularly and inevitably as two centuries later it is