Accounting Historians Notebook

Volume 12 Number 2 Fall 1989 Article 14

Fall 1989

Dr. Samuel Johnson and accounting

Peter G. Boys

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This Article is brought to you for free and open access by the Archival Digital Accounting Collection at eGrove. It has been accepted for inclusion in Accounting Historians Notebook by an authorized editor of eGrove. For more information, please contact [email protected]. Boys: Dr. Samuel Johnson and accounting DR. SAMUEL JOHNSON AND ACCOUNTING by Peter G. Boys University of Kent at Canterbury

Dr. Samuel Johnson (1709-1784), lex­ progress will be easier than the icographer and professional writer, is one beginning. Do not be content with of the most quotable of writers. Although what a single master dictates, but much has been written about Johnson, in­ procure books: different authors ex­ cluding his opinions on economics, hibit the same thing in different nothing has been written specifically views, and what is obscure in one, about Johnson's published works and may be clear in another. When you papers, particularly his diaries and letters, can readily apply numbers on together with Boswell's Life of Johnson emergent occasions, you will find and other sources, provides some in­ yourself to think with so much teresting and informative material of par­ clearness and certainty that the ticular interest to accounting historians. pleasure of arithmetick will attract These publications show that Johnson was you almost as much as the use." something of an economist and an ac­ (Chapman, 1952, number 836.1, to countant; his philosophy of accounting Hester Maria Thrale, 26th April, seems to be in accord with modern writers 1783) although his practice of keeping personal "Your proficience in arithmetick is accounts leaves a lot to be desired. not only to be commended, but ad­ THE IMPORTANCE OF ARITHMETIC mired. ...Never think, my Sweet, Johnson's knowledge of, and interest that you have arithmetick enough; in, accounting may well have stemmed when you have exhausted your from his high regard for arithmetic. In master, buy books. Nothing amuses several letters to Hester Maria Thrale and more harmlessly than computation, Sophia Thrale (daughters of Henry Thrale, and nothing is oftener applicable to Brewer and M.P. for Southwark), Johnson real business or specualative en­ emphasized the importance of this sub­ quiries. A thousand stories which ject. Many of the letters were repetitive, the ignorant tell, and believe, die but the following extracts from April and away at once, when the computist July 1783, when Hester and Sophia were takes them in his gripe. I hope you 18 and 12 years old respectively, present will cultivate in yourself a disposi­ the flavor of his views. tion to numerical enquiries; they "You have done very wisely in tak­ will give you entertainment in ing a master for arithmetick, a solitude by the practice, and reputa­ science of which I would not have tion in publick by the effect." you soon think that you have (Chapman, 1952, number 870, to enough. It will seem at first dif­ Sophia Thrale, 24th July, 1783). ficult, but you will soon find its In addition to the comments in his let­ usefulness so great that you will ters, there is further evidence of his in­ disregard the difficulty; and the terest in arithmetic; for example, Mrs.

38Published by eGrove, 1989 The Accounting Historians Notebook, Fall, 1989 1 Accounting Historians Notebook, Vol. 12 [1989], No. 2, Art. 14 Thrale relates the following: "Useful and penditure in his diary. what we call every-day knowledge had the Johnson was perhaps influenced by his most of his just praise. 'Let your boy learn father when it came to not keeping ac­ arithmetic, dear Madam,' was his advice counts. Writing of his childhood, Johnson to the mother of a rich young heir: 'he will had this to say of his parents: not then be a prey to every rascal which "Neither of them ever tried to this town swarms with: teach him the calculate the profits of trade value of money, and how to reckon it...' " [bookseller], or the expenses of liv­ (Roberts, 1925, p. 127 and Hill, 1897, ing. My mother concluded that we vol.i, p. 281) The rich young heir was Sir were poor, because we lost by some John Lade, the nephew of Mr. Henry of our trades; but the truth was, Thrale. that my father, having in the early Indeed, his high regard for arithmetic part of his life contracted debts, was such that he thought it should have never had trade sufficient to enable more prominence than literature in educa­ him to pay them, and maintain his tion: " 'Let the people learn necessary family; he got something but not knowledge; let them learn to count their enough. It was not till about 1768, fingers, and to count their money, before that I thought to calculate the they are caring for the classics... .' " returns of my father's trade, and by (Roberts, 1925, p. 141 and Hill, 1897, that estimate his probable profits. vol.i, p. 295) This, I believe, my parents never Johnson liked the precision afforded by did." (McAdam, 1958, pp. 7-8) numbers; Boswell reports him as saying This extract from his Annals of 1710-1711, " 'That, Sir, is the good of counting. It probably written in about 1772, shows brings every thing to a certainty, which that Johnson thought himself well able to before floated in the mind indefinitely.' " keep and draw up a set of accounts, and (Hill, 1934 & 1950, vol. iv, p. 204, 18th also to calculate profit. However, no April, 1783) Commenting that people record of such a calculation of his father's often exaggerated stories by not counting profits exists. There is evidence to suggest but by estimating, he is reported as hav­ that such a calculation had not been car­ ing said "Round numbers are always ried out by 18th August, 1774, since a false.' " (Hill, 1934 & 1950, vol. iii, p. note in Johnson's diary on that date states: 226, n.4) "To note down my Father's stock, ex- JOHNSON AS AN ACCOUNTANT pences, and profit." (McAdam, 1958, p. On September 18, 1764, the date of his 201) fifty-fifth birthday, Johnson wrote in his The accounts which Johnson did keep diary that he resolved "To keep a journal for September and October 1776 were as both of employment and of expenses. To follows: keep accounts." (McAdam, 1958, pp. "MONEY RECEIVED 81-2) This is the first extant record of Sept. 22 I borrowed of Mr. T. 3-3-0 Johnson making such a resolution. His 27 I borrowed of Mr. T. 3-3-0 resolve was not strong, since the nearest Oct. 28 I borrowed of Mr. T. 1-1-0 thing to a set of accounts appears in September and October 1776, twelve 7-7-0 years after his resolution; from time to EXPENDED time during those twelve years he had Paid to Mrs. Thrale noted various amounts of income and ex­ Miss Owen &c 1-15-0

The Accounting Historians Notebook, Fall, 1989 39 https://egrove.olemiss.edu/aah_notebook/vol12/iss2/14 2 Boys: Dr. Samuel Johnson and accounting Given away at Tunbr. &c at Oct. 5 From Straham 20 0 0 Brighthelmston 0-4-0 6 weeks To Francis 2 2 0 Booksellers and Rooms 1-3-0 To Desmoulins 1 1 0 Given Away 1-14-0 4 weeks To White 1 11 6 Sam: Bill 0-7-4 Stockens &c 0 10 0 neglected at the beginning 0-3-0 Purloined by Mr. T. 0-2-0 546 Oct. 8 in Pocket Gold 13130 5-8-4 Silver 0 16 6 In my pocket 1-19-0 1-19-0 19140" 7-7-4" These examples give a clear picture of (McAdam, 1958, p. 261 and Hill, 1934 & how Johnson actually kept his accounts. 1950, vol. iv, p. 511) Although there are no arithmetical errors There are several more small accounts in the two examples cited above, strange­ contained in his diary, particularly at the ly, given Johnson's views on arithmetic, end of 1777 and the beginning of 1778. several of the columns in his accounts are These accounts are mostly lists of expen­ miscast. This indicates that either diture with totals. In 1782 there are slight­ Johnson's arithmetic was not very good or ly fuller accounts since his diary was writ­ he was particularly careless. From the ac­ ten in The Gentleman's New Memoran­ counts for 1776 it can be seen that they dum Book improv'd: or, The Merchant's do not balance, expenses being greater and Tradesman's Daily Pocket Journal for than receipts by 4d. Similarly, the ac­ the Year 1165, (the dates and days of the counts for 1782 do not balance, this time week for 1765 and 1782 correspond) being out by much more. (McAdam, 1958, p. xx); the right-hand page was designated for the week's ac­ Several reasons can be put forward for count and the left-hand page for this lack of accuracy. One possibility is that memorandum entries. Unfortunately, the Johnson simply forgot to note down some editors of Johnson's dairies thought that of his expenditure; entries were not always they would be easier to understand if the made at the same time as the events oc­ weekly accounts were dispersed to the curred (Hill, 1934 & 1950, vol. iv, p. 505) specific days of the week to which they and he often wrote "I think" by an entry, referred, thus giving a complete which led one author (Fleeman, 1975, p. chronological sequence of events, income 228) to conclude that such a curious and expenditure. The following is the only remark "probably signifies nothing more published example of a right-hand page than that Johnson was an inattentive ac­ and is for the period September/October countant". There are other instances 1782 (McAdam, 1958, plate facing p. where an entry is made but the amount 336): paid is totally omitted; for example, in August 1777 there is an entry "Money "SEPTEMBER 1765 given to strangers" but with no amount WEEK'S ACCOUNT. Received. Paid. (McAdam, 1958, pp. 274-5). Johnson was To White 1 1 0 a very generous man who gave away much From Straham 4 4 0 of his money, as is witnessed by the ex­ To Frank for wages 2 10 0 hibited accounts for 1776 and by the To White 0 5 0 remark made by the Rev. Dr. Maxwell to For Coals 3 9 Boswell: "He frequently gave all the silver 40 The Accounting Historians Notebook, Fall, 1989 Published by eGrove, 1989 3 Accounting Historians Notebook, Vol. 12 [1989], No. 2, Art. 14 in his pocket to the poor, who watched wishes it; but I do not see its use.' I him, between his house and the tavern maintained that keeping an account where he dined.' " (Hill, 1934 & 1950, has this advantage, that it satisfies a vol. ii, p. 119) It is no wonder that he man that his money has not been lost could not account for all his transactions or stolen, which he might sometimes and was thus unable to make his books be apt to imagine, were there no writ­ balance. ten state of his expence; and besides, More likely though, especially from the a calculation of economy so as not to specimen of his 1782 accounts, the reason exceed one's income, cannot be made why the accounts do not balance is the without a view of the different articles omission of an opening balance in hand. in figures, that one may see how to Fleeman (1975, p. 223) comments on retrench in some particulars less Johnson's diary for 1782 as follows: this necessary than others. This he did not "contains several instances of weak accoun­ attempt to answer." (Hill, 1934 & ting: errors in simple addition, misplac­ 1950, vol. iv, pp. 177-8) ing of figures in cash columns, approxima­ As a matter of interest, and for the sake tions, and large omissions". of completeness, the lady who kept ac­ It would seem that Johnson was not counts was the Hon. Mrs. Stuart (the wife concerned about the accuracy of his ac­ of Lieut.-Col. the Hon. James Archibald counts, nor did he use them as a method Stuart, and Boswell's wife's dearest friend) of control over his financial resources; and the lady who would not keep accounts rather the records were kept simply as a was Boswell's wife (Hill, 1934 & 1950, vol. matter of interest. iv, p. 511). JOHNSONS THOUGHTS This reported dialogue between ON ACCOUNTING Johnson and Boswell, two intelligent men Although Johnson may not have been of their time, succinctly puts the a very good accountant in practice, he cer­ arguments for and against the use of tainly was in spirit. Boswell provides some historical cost accounting. Both arguments evidence of Johnson's views on the have some validity; historical cost accoun­ usefulness of keeping accounts when he ting is not useful for economic dicision writes: making, whereas it does serve a useful "I praised the accuracy of an account- purpose as a method of financial control. book of a lady whom I mentioned. Johnson was a cautious man, a trait JOHNSON. 'Keeping accounts, Sir, is often ascribed to accountants. His of no use when a man is spending his philosophy of domestic economy is shown own money, and has nobody to whom in a letter to Boswell in 1783 (Hill, 1934 he is to account. You won't eat less & 1950, vol. iv, p. 163): " 'Make an im­ beef to-day, because you have written partial estimate of your revenue, and down what it cost yesterday.' I men­ whatever it is, live upon less.' " A further tioned another lady who thought as he example of Johnson's cautious nature in did, so that her husband could not get money matters is demonstrated in a copy her to keep an account of the expence of The Rambler, a literary journal, of the family, as she thought it enough published twice weekly. In all, there were that she never exceeded the sum allow­ 208 issues, all but a few written entirely ed her. by Johnson himself. Issue number 57, JOHNSON. 'Sir, it is fit she should published on Tuesday, 2nd October, keep an account, because her husband 1750, over 30 years before Johnson's let- The Accounting Historians Notebook, Fall, 1989 41 https://egrove.olemiss.edu/aah_notebook/vol12/iss2/14 4 Boys: Dr. Samuel Johnson and accounting ter to Boswell quoted above, was devoted afterwards completed in the counting- to the subject of frugality. house, by observation of the manner "It may, however, be laid down as a of stating accounts, and regulating rule never to be broken, that 'a man's books, which is one of the few arts voluntary expence should not exceed which having been studied in propor­ his revenue.' tion to its importance, is carried as far ...Another precept arising from the as use can require. The counting-house former, and indeed included in it, is of an accomplished merchant is a yet necessary to be distinctly impress­ school of method, where the great ed upon the warm, the fanciful, and science may be learned of ranging par­ the brave; 'Let no man anticipate ticulars under generals, of bringing the uncertain profits.' Let no man presume different parts of a transaction to spend upon hopes, to trust his own together, and of shewing at one view abilities for means of deliverance from a long series of dealing and exchange. penury, to give a loose to his present Let no man venture into large business desires, and leave the reckoning to for­ while is is ignorant of the method of tune or to virtue." (Bate & Strauss, regulating books; never let him im­ 1969, vol. iii, p. 308) agine that any degree of natural Johnson's second rule certainly is very abilities will enable him to supply this much in line with current accounting deficiency, or preserve multiplicity of practice. affairs from inextricable confusion. Johnson presents us with something of This is the study, without which all a contradiction with his views on accoun­ other studies will be of little avail...." ting and the usefulness of accounts. In (Johnson, 1804, vol. i, pp. 236-7) 1764, Johnson resolves to keep accounts, It should be remembered that mid- but at a later date, sometime before 1783, dleclass educated men in the eigh­ he is telling Boswell that he sees no use teenth century were more aware of and in keeping accounts and in 1784 when he able to keep accounts than their was writing to his great friend Mr. modern-day counterparts as is evidenc­ Langton, he made the following comment ed by the number of references to ac­ having been asked for certain information: counting in the eighteenth century "I am a little angry at you for not keep­ literary journal The Spectator (Bond, ing minutes of your own acceptum et ex- 1965). Accounting (or more precisely pensum, and think a little time might be bookkeeping) formed part of the cur­ spared from Aristophanes, for the res riculum of the writing schools. A familiares" (Chapman, 1952, number writing school was where a boy: 999, 26th August, 1784 and Hill, 1934 & "received what use to be called a plain 1950, iv, p. 362). English education, fitting him for a Although the above examples are con­ place in a merchant's counting-house, cerned with personal accounts, Johnson or giving him abundant information to also knew the importance of merchants make him competent to learn any keeping accounts of their transactions. In business as an apprentice" and "where his preface to Rolt's Dictionary, (1756) he he was qualified for commercial pur­ wrote: suits" (Scargill, 1829, p. 46). "The first of the means of trade is a Johnson should perhaps be regard­ proper education, which may confer a ed more as an economist than as an ac­ competent skill in numbers; to be countant; the following shows that: he 42 The Accounting Historians Notebook, Fall, 1989

Published by eGrove, 1989 5 Accounting Historians Notebook, Vol. 12 [1989], No. 2, Art. 14 understood the idea of economic value: economics in the eighteenth century. "when the sale of Thrale's brewery was Some of the most interesting comments going forward, Johnson appeared from the viewpoint of an accounting or bustling about, with an ink-horn and business historian are in letters between pen in his button-hole, like an excise­ 1771 and 1783, as follows: man; and on being asked what he real­ "Nothing very memorable has happen­ ly considered to be the value of the pro­ ed since your departure from London, perty which was to be disposed of, except the failure of Fordice, who has answered, 'We are not here to sell a drawn upon him a larger ruin than any parcel of boilers and vats, but the former Bankrupt. Such a general potentially of growing rich, beyond the distrust and timidity has been diffus­ dreams of avarice.' " (Hill, 1934 & ed through the whole commercial 1950, vol. iv, p. 87) system, that credit has been almost ex­ Johnson appreciated that the brewery tinguished and commerce suspended. would be sold as a going concern; the in­ There has not since the year of the dividual value of the assets was unimpor­ South Sea been, I believe, such exten­ tant - what was important were the future sive distress or so frightful an alarm. It cash flows to be reaped from the use of can however be little more than a those assets. panick terrour from which when they Henry Thrale died on 4th April, 1781. recover, many will wonder why they However, Mrs. Thrale in her diary of 3rd were frighted." (Chapman, 1952, June, 1781, writes that Johnson was number 275.1, to John Taylor, 15th "something unwilling—but not much August, 1772) at last—to give up a Trade by which Alexander Fordyce was a banker who suf­ in some Years 15 or 16000£ had un­ fered heavy losses on stocks at the begin­ doubtedly been got, but by which in ning of 1771 as a result of the dispute bet­ some Years it's Professor had suffered ween the British Government and the Agonies of Terror, & totter'd twice Spanish over the Falkland Islands. He upon the Verge of Bankruptcy". managed to soothe his partner's worries by She continues: "the simple expedient of showing them "Johnson was hardest to gain over to a pile of bank notes which he had borrow­ my Intentions of quitting, but the ed for the purpose for a few hours" small quantity of Cash, the immensi­ (Stephen & Lee, 1959-60, vol. vii, p. 431). ty of the Capital, the Consciousness However, his losses continued and the that the Risques we run were ours, the bank stopped payment on 10th June, Profits - if Profits - were not to be ours 1772. The deficiency amounted to about - frighted & convinced him..." £100,000. (Balderston, 1951, vol. i, p. 499). "The state of the Stocks I take to be The brewery was sold on 31st May, 1781, this. When in the late exigencies, the for £135,000 (Hill, 1934 & 1950, vol. iv, Ministry gave so high a price for p. 86, n.2) money, all the money that could be JOHNSON AS A COMMENTATOR disengaged from trade, was lent to the ON CONTEMPORARY BUSINESS publick. The stocks sunk because Although his diaries and Boswell's Life nobody bought them. They have not of Johnson show Johnson's views and prac­ risen since, because the money being tice of accounting, it is his letters which already lent out, nobody has money to provide a commentary on business and lay out upon them, till commerce shall The Accounting Historians Notebook, Fall, 1989 43 https://egrove.olemiss.edu/aah_notebook/vol12/iss2/14 6 Boys: Dr. Samuel Johnson and accounting by the help of peace bring a new supp­ REFERENCES ly. If they cannot rise they will Balderston, K.C. (ed.)(1951). Thraliana, sometimes fall, for their essence seems The Diary of Mrs. Hester Lynch Thrale to be fluctuation," (Chapman, 1952, (Later Mrs. Piozzi) 1776-1809, 2 vols., number 891, to Mrs. Thrale, 6th Oc­ Oxford, Clarendon Press, Second tober, 1783) Edition. Johnson's comments not only provide Bate, W.J. & Strauss, A.B. (eds.) (1969). a description of business and economic The Rambler, vols. iii-v of The Yale events in the latter half of the eighteenth edition of the Works of Samuel century, but he is also able to provide Johnson, New Haven, Yale University economic analysis of such events; once Press. again showing that he had a sound grasp Bond, D.F. (ed.) (1965). The Spectator, of economics. For further views of 5 vols., Oxford, Clarendon Press. Johnson's on economics, reference should Boswell, J. (1791). The Life of Samuel be made to Middendorf (1965), Mathias Johnson, 2 vols., London, Charles (1978) and O'Brien (1925), who decal in­ Dilly. ter alia with such subjects as agriculture, Chapman, R.W. (ed.) (1952). The Letters wealth, scarcity, poverty, population and of Samuel Johnson, 3 vols., Oxford, production. Clarendon Press. CONCLUSION Fleeman, J.D. (1975). 'The revenue of a The writings of Dr. Johnson and those writer', in Studies in the Book Trade, of his biographers provide information in honour of Graham Pollard, Oxford, about Johnson's views on, and practice of, Oxford Bibliographical Society Publi­ accounting. His views are all the more in­ cations. teresting because they are not those of a Hill, G.B. (ed.) (1934 & 1950). Rev. L.F. businessman but those of an eminent Powell, Boswell's Life of Johnson, 6 literary figure. Johnson, no doubt, is not vols., Oxford, Clarendon Press. unique; his practices and opinions may Hill, G.B. (ed.) (1897). Johnsonian well be similar to those of other well- Miscellanies, 2 vols., Oxford, Claren­ educated men of the eighteenth century. don Press. Historical accounting texts, such as Johnson, S. (1804). Miscellaneous and those in the Scottish and English Institute Fugitive Pieces: consisting of Essays, collections, together with extant accoun­ Dissertations, Prefaces, Reviews, Lives, ting business records, provide valuable Etc., Etc., 2 vols., London, Slater, source material for the accounting Bacon. historian, but the personal reminiscences Marriner, S. (ed.) (1978). Business and and contemporary comments of writers are Businessmen: Studies in Business, just as important, and offer refreshing in­ Economics, and Accounting History, sights into attitudes towards accounting in Liverpool, University Press. days gone by. Mathias, P. (1978). 'Dr. Johnson and the It is appropriate to conclude with an ap­ Business World', in S. Marriner (ed.), posite quotation from Johnson for con­ Business and Businessmen: Studies in tributors to this journal: "No man but a Business, Economics, and Accounting blockhead ever wrote, except for money." History, Liverpool. (Hill, 1934 & 1950, vol. iii, p. 19, 5th McAdam, E.L. (ed.) (1958) with D. and April, 1776) M. Hyde. Diaries, Prayers and Annals, vol. i of The Yale edition of the Works 44 The Accounting Historians Notebook, Fall, 1989 Published by eGrove, 1989 7 Accounting Historians Notebook, Vol. 12 [1989], No. 2, Art. 14 of Samuel Johnson, New Haven, Yale History: A Bibliography is now in the University Press. hands of the publisher, Garland Publica­ Middendorf, J.H. (1965), 'Johnson on tions Inc. We are therefore expecting Wealth and Commerce', in Johnson, publication of this text in the near future. Boswell and their Circle, essays A number of the committee members presented to Lawrence Fitzroy Powell, were able to meet in person at the Inter­ Oxford, Clarendon Press. national Historians Congress in Sydney in O'Brien, G. (1925). 'Dr. Samuel Johnson 1988 and began to draw up plans for a as an Economist', Studies, March, research methodology conference which pp. 80-101. we considered to be a logical follow-on ex­ Roberts, S.C. (ed.) (1925). Anecdotes of ercise to the text. We are pleased to report the late Samuel Johnson, LL.D., during that we have set a target of mounting a the late twenty years of his life, by two or three day historical research Hester Lynch Piozzi, Cambridge, Uni­ methodology conference in 1991. Our versity Press. present intention is to mount the con­ Rolt, R. (1756). A New Dictionary of ference at the University of Mississippi in Trade and Commerce, London. early December 1991. In due course, the Scargill, W.P. (1829), Recollections of a committee will be calling for papers for Blue-coat Boy, Swaffam, F. Skill. Re­ that conference and we will be encourag­ printed, New York, Johnson Reprint ing the maximum possible attendance Corporation, 1968. from Academy members and other Stephen, Sir Leslie & Lee, Sir Sidney (eds.) academic accountants with an interest in (1959-60). The Dictionary of National historical accounting research. Biography, 22 vols., Oxford, University We are treating the proposed con­ Press. ference as a major second step in our undertaking to both provide a methodological resource base for our • •• membership as well as encouraging the development of a greater degree of sophistication in historical methods REPORT OF THE employed by accounting history ACCOUNTING HISTORY researchers. RESEARCH METHODOLOGY We commend our report to your atten­ COMMITTEE tion and we look to all Trustees and members for their support in both pur­ chasing and using the methodology text I have pleasure in presenting to the and in planning to present papers and Trustees and the Annual General Meeting participate in our 1991 conference. of the Academy, my Committee's report Lee Parker, Chairman on progress during 1988-89. We have now completed the additional work involved in securing outstanding publisher permissions for some annotated sections of the bibliography of published references on historical methodology and historical method. The resulting text en­ titled Methodology and Method in

The Accounting Historians Notebook, Fall, 1989 45 https://egrove.olemiss.edu/aah_notebook/vol12/iss2/14 8