!!!Merkantilismus

Mercantilism, economic theory and practice, economic counterpart to 
political absolutism in the 17%%sup th/%  and 18%%sup th/%  centuries; 
originated in France, in Austria it was closely connected with the 
process of consolidating the state. The Habsburg territories had to be 
turned into a uniform national and economic territory (administrative 
reform 1749, customs territory of Bohemia and Austria without Tirol 
and its Fore-Lands and without Hungary 1775). The first to view 
"Austria" in this way was P. W. von  Hoernigk ("Oesterreich ueber 
alles wann es nur will" - " Austria above all, if it only wants") in 
1684. The most important proponents of this idea were J. J.  
Becher ("Politischer Discurs" - "Political Discourse", 1667), Hoernigk 
and W. von Schroeder ("Fuerstliche Schatz- und Rentkammer" - "Royal 
Treasure and Pension Chamber", 1686). Because of the work of 
J. H. G. von Justi ("Staatswirtschaft oder Systematische 
Abhandlung aller oekonomischen und Cameralwissenschaften" - "National 
Economy or Systematic Treatise on Economics and Cameralistics, 1758) 
and J. von  Sonnenfels ("Grundsaetze der Polizey ..." - " Principles 
of the Police ...", 1771) "cameralism" continued to have effect until 
the 19%%sup th/%  century. On the analogy of a sole trader 
Mercantilism demands that, analogous to an individual enterprise, the 
income of a national economy be higher than expenditures (favourable 
trade balances). "Universal Commerce" between the Habsburg territories 
and active foreign trade were promoted by establishing commerce 
authorities (Kommerzienkolleg 1665, Haupt-Commercien-Collegium in 
Vienna 1718, Commerzdirectorium 1746), internal tariffs were lowered 
or abolished altogether,  Trading Companies, Privileged (1%%sup st/%  
and 2%%sup nd/%  Oriental Companies 1667 and 1719) and manufacturing 
enterprises were granted privileges ("factory privileges" to become 
exempt from compulsory guild membership and all guild restrictions, 
mercantile powers), which were often connected with monopolies. State 
monopolies - apart from the traditional mining privileges, the salt 
monopoly, the tobacco monopoly (1701/23) and mercury production and 
trade - were also strengthened, although trade monopolies were often 
rented. Under Emperor Karl VI and his successors traffic routes 
were improved: "Commercial roads" formed links to Vienna as a trade 
centre and to the "sea ports" (1719 free ports of Trieste and 
Fiume/Rijeka); the Triesterstrasse route across the Semmering mountain 
(1728) and the karst, as well as the Loiblstrasse route were newly 
routed, and the Arlbergstrasse route under Joseph II. The planned 
expansion of waterways failed due to financial difficulties and 
natural obstacles. Postal connections were also extended; credit 
institutions were founded, which were primarily to cover state loans 
(1706, Wiener Stadtbank - Vienna City Bank). Initially only the 
production of luxury goods (glass and silk) was promoted, later also 
the production of bulk goods (linen, cotton, wool cloths). 
Mercantilism favoured low wages on theoretical grounds and aimed at 
creating an industrious, disciplined society ("industriousness", i.e. 
"industry", derived from the Latin term "industria") by having 
large-scale enterprises ("manufactures", usually privileged 
"factories") putting out tremendous amounts of work to the rural 
population as well as by making inmates of workhouses, prisons and 
orphanages do factory work. Major privately or state-owned  
Manufakturen employed thousands of people, mostly lessees or small 
tenants, as homeworkers by putting out work (cottage industry); 
labour-saving machines and new sources of energy were not in use at 
that time.

!Literature
L. Sommer, Die oesterreichischen Kameralisten in 
dogmengeschichtlicher Darstellung, 1920 and 1925; H. Matis (ed.), Von 
der Glueckseligkeit des Staates, 1981; H. Stekl, Oesterr. Zucht- und 
Arbeitshaeuser 1671-1920, 1978.


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