which was a feature of mercantalisim?
Foreign Trade
In the first place the mercantilists laid great emphasis on a favourable balance of trade. [ They held that the strength and richness of a country depends on two things-the possession of gold and silver mines and favourable balance of trade.
Importance of Money.
Mercantilism attached great importance of money. It considered the wealth as the source of all powers and laid great emphasis on the importance of gold, silver etc. It also considered money as a significant factor for the commercial advancement. Further as the trade in those days was mostly carried on the basis of
barter of goods, the people naturally preferred to keep gold and silver rather than the commodities.
Interest.
The concept of interest formed an important part of mercantilism even though there was no unanimity among the various mercantilists regarding its use and importance. For example, Mun justified charging of interest on the money because it could be profitably employed in trade and enabled the borrower to make hugh profits.
Factors of Production.
The mercantilists considered the land and the labour as the sole factors of production. Petty asserted, "Labour is the father and active principle of wealth, as lands are the mother." Similarly, Josiah Child held that land and trade went hand in hand.
Most of the mercantilists laid emphasis on the need of increasing production with a view to attain self-sufficiency in foodstuffs as well as encouragement of exports. Emphasis was laid on the cultivation of waste lands to increase . reduction of agriculture.
Large Populations.
Mercantilism emphasized the need of possessing large population for increasing production and participation in the war. Highlighting the importance of large popuation Davenant said, "The people are the real strength of the community; dense population made inventions. It also developed industries which brought riches to the nation. ]
