Principles Of Political Economy
by William Roscher
Previous Part     1  2  3  4  5  6  7  8  9  10  11  12  13     Next Part
Home - Random Browse

122 Whately, in his fourth lecture (Lectures, 1831), shows in a very clear way, how London is supplied and provisioned by men with no object in view but their own personal interest, each of whom is possessed of but a very limited knowledge of the aggregate wants of its inhabitants, and yet they work into one another's hands, in the interests of the whole, purely instinctively, and infinitely better, perhaps, than the operations of the most skillful governmental commission, organized for the same purpose.

123 Alphonsus of Castile, the king astrologer of the thirteenth century, is reported to have said, that the universe would have been much better constituted, if the Creator had asked his advice beforehand. Astronomers like Newton and Gauss have, certainly, judged otherwise.

124 MacCulloch remarks, that there is an essential difference between the physical and the moral and political sciences in this, that the principles of the former apply in all cases, those of the latter, only in the greater number of cases—a thought very ably developed by Knies, loc. cit., passim. If, with Newmarch, (London Statistical Journal, 1861, p. 460 seq.), we could grant, that there is no "law," except where it is possible to predict each individual occurrence under it, there would be no such thing even as the "laws" of the probability of life. The word "element," also, means something very different in Political Economy from what it does in chemistry: a combination which might be broken up, but which that science leaves it to other sciences to do. The "element" of Political Economy is Man. Compare Pickford, Einleitung in die politische OEk., 1860, 17.

125 It is in this sense that Aristotle (Polit., I, p. 1, 9 Schn.) says: φανερὸν, ὅτι τῶν φύσει ἡ πόλις ἐστὶ, καὶ ὅτι ἄνθρωπος φύσει πολιτικὸν ζῶον. According to L. Stein, Lehrbuch der Volkswirthschaft, 1858, 33, the political economy of a people begins at the point where the overplus of individuals begins.

126 Compare K. L. von Haller, Restauration der Staatswissenchaft, I, p. 446 ff.

127 As Sallust characterizes the political apogee of the Romans: Optimis moribus et maxima concordia egit populus Romanus inter secundum atque postremum bellum Carthaginiense. See Augustin (Civ. Dei II, 18). Puchta (Institutionen, I, f. 83), with a great deal of good sense, distinguishes in every people their individual character from that which they share in common with all mankind. The latter exists among savage nations, only as a germ buried under the overpowering weight of that which is special to them. The period of the perfect equilibrium of both elements is coincident with that of a people's real culture. In the further course of development, the latter, more general element becomes gradually over-powerful, destroys the individual, and thus dissolves nationality.

128 Thus formulated, the principles of the two great parties, evidently, no more contradict one another than their ordinary watchwords, "freedom" and "order," are in contrast with one another. Hence all the great statesmen of the best periods of history have adopted the middle course recommended by Aristotle.

129 See Lotze, Allgemeine Pathologie, 1842. Ruete, Lehrbuch der allgemeinen Therapie, 1852. These analogies, obviously, should not be pushed too far. One of the most essential differences between the two consists in this, that in the diseases of the body politic, physicians and nurses are themselves part of the diseased organism.

130 See Ahren's very beautiful exposition, Organische Staatslehre, 1850, I, 77. National economy (Nationaloekonomie=public economy); national economics (Nationaloekonomik=the science of public economy). The latter term was first proposed, in Germany, in 1849, by Uhde; the former was naturalized therein 1805: v. Soden, Nationaloekonomie, 1805; Jacob, Grundsaetze der N. OEk., 1806. In Italy, G. Ortes used it as early as 1774, in his Dell Economia nazionale, and in England it was employed, even in 1867, by Ferguson, History of Civil Society, III, p. 4. Holland. Volkshuyshoudkunde. As a rule, outside of Germany, the term political economy, economie politique, one which is somewhat calculated to mislead the student, is used. (Thus Montchretien sieur de Vatteville, Traite de l'Economie politique, 165; later J. J. Rousseau, Discours sur l'Economie politique, later yet the Traites d'E. p., Maillardere, Page and J. B. Say, 1801-1803). Political Economy (Sir J. Stewart, Inquiry into the principles of P. E., 1767); also Public Economy (Petty, several Essays, 1682, 35); Economia politica or pubblica (the latter by Verri and Beccaria). The title Economia civile (Genovesi, Lezioni, d'Ec. civ. 1769), has found few adherents. It has, however, been used recently by Cernuschi: Illusions des Societes cooeperatrices (1866). The term, Economie sociale has been used all the more in France (Dunoyer, Nouveau Traite d'Ec. soc., 1830), since recommended by J. B. Say, and employed by Buat (Des vrais Principes de l'Origine et de la Filiation du Mot Economie politique, in the Journal des Economistes, 1852.)

131 Stein, Lehrbuck der V. W., prefaces his "Science of Public Economy" (pp. 329-358), by a "Science of Economy" (pp. 96-328), which, however, treats individual economies only as the elements of the national economy. A science of household or isolated individual economy could, of course, treat only of the economic relations of anchorites. Those who object that Political Economy is not a real whole will be satisfied with the definition of it given by F. I. Neumann: "The Science of the bearing of household or separate economies to one another, and to the state as a whole." (Tueb. Zeitschr., 1872, 267.)

132 In so far as these various institutions are concerned, with objects beyond the human, or supernatural, only the manner in which they are accepted, or in which they are made use of, is an expression of national life.

133 Thus, J. Tucker thinks that religion, the state and commerce, are only the parts of one same general plan: no institution, therefore, can be called appropriate, within the limits of the province of any one of these, if it be clearly in opposition to the other two, because the harmony of God's work can not be broken up. (Four Tracts and two Sermons on political and commercial Subjects, 1774, Serm. I.)

134 Riedel (National OEkonomie, 1838, I, p. 178 seq.), gives a good illustration of the difference between the manner in which law and Political Economy look at the same question. The law (to avoid strife, or to settle controversies) looks upon the debtor as the owner of the capital, and lets him run all the risk; Political Economy, on the other hand, looking deeper into the nature of the contract, reaches an entirely opposite result. The mere jurist has a dangerous tendency to undervalue the reign of the laws of nature; the mere political economist, just as readily, undervalues the element of free will. (Arnold, Cultur und Recht I, 97.) In this respect, the two sciences complement each other very well. Roesler (Hildebrand's Jahrb., 1868, II, and 1869, I.) shows, and he does not exaggerate the fact, that political economists have made altogether too little use of the results of the science of law.

135 Jurists will always experience the want of divesting their isolated ideas of their purely accidental character, by grouping them together in such a manner as to make them constitute a complete and independent whole. One must be possessed of profound knowledge to perceive their necessary connection from an historico-juridical point of view. Political Economy, with its characteristic accuracy and practical utility, can best take its place, at the present time. It is in the greater number of legal questions, the systematically elaborated science of "the nature of the thing." See the able beginnings of a policy of legislation and higher history of law, based on Political Economy, by H. Dankwardt: N. OEk. und Jurisprudenz, 3 Hefte, 1857, and my preface to Dankwardt's Nationaloekonomisch-civilistischen Studien, 1862.

136 The intellectual power of a people depends upon the vigorous and harmonious development of all seven spheres of life.

137 Montecuccoli, Besondere und geheime Kriegsnachrichten (Leipzig, 1736). A very similar judgment by Caesar in Dio Cass., XLII, 49.

138 Buelan, Handbuch der Staatswirthschaftslehre, 1835.

139 Thus v. Justi, Staatswirthschaft 1755. Kraus, Staatswirthschaft, published by Auerswald, 1808; Schmalz, Handbuch der Staatswirthschaft, 1808. More recently, Hermann, Staatswirthschaftliche Untersuchungen, 1832. In France, the expression economie de l'etat, is very seldom used. Gavard, Principes del'E. d'Etat, 1796.

140 Poelitz, Staatswissenschaften im Lichte unserer Zeit, II, 3. Compare Lotz, Handbuch der Staatswirthschaft (2d ed., 1837), I, 10 ff.

141 Our view of Political Economy holds a middle place between opposed extremes. The view expressed by Whately, Lectures on Political Economy (1831), No. 1, and covered by the proposed term "catalactics," is by far too narrow. Similarly, Macleod, Elements of Political Economy, 1858, I, 11. A like objection may be raised to the earlier title of Pritzwitz's book: Die Kunst reich zu werden,—the art of growing rich. On the other hand, Dunoyer, Liberte du Travail (1845), L. IX, ch. I, goes too far altogether: "not only in what manner a nation grows rich, but according to what laws it best succeeds, in the execution of all its functions." And so Storch, Handbuch, translated into German by Rau, I, 9. Many modern writers define Political Economy simply as the theory of society; for instance, Scialoja, Principj. dell'Economia sociale, 1840. Cibrario, E. polit. del medio Evo, III, 1842.

142 For the many and various definitions of the police power, see von Berg, Handbuch des Polezeirechts, I, 1-12; Butte, Versuch der Begruendung eines System der Polezei (1807), 6 ff.; Rosshirt, Ueber den Begriff der Staatspolizoi (1817), 34 ff. One of the principal difficulties is, that the practical domain of the police power is, in consequence of the successive grades of civilization through which a people passes, subject to greater modifications than any other state power. We call attention especially to the expressions "without mediation, to prevent," and "external order," in our definition. The church, the school, the administration of justice etc., act mediately towards the prevention of such disturbances; and there are many other institutions which offer immediate protection to order of a higher and more intellectual nature.

143 See the great number of earlier definitions collected in R. von Mohl, Gesch. und Literatur der Staatswissenschaften III, pp. 637 ff. There are two principal groups of them, the one of which considers it as the science of things of political note, the other as the science of actual or past conditions.

144 See Dufau, Traite de Statistique, 1840; Moreau de Jonnes, Elements de Statistique, 1847; Knies, Die Statistik als selbststaendige Wissenschaft, 1850. B. Hildebrand, in his Jahrbuechern, 1866, I etc., but especially Quetelet's works. For the contrary view, see Fallati, Einleitung in die Wissenschaft der Statistik der St., 1843; Jonak, Theorie der Statistik, 1856, and Heeren, in the Goett. Gelehrten Anzeigen, 1806, No. 84, 1807, 1302.

145 So thinks v. Ruemelin (Tuebinger Zeitschr., 1863, 653 ff.); and he recommends in place of statistics an independent branch of learning bordering on history and geography, to be called demography. His statistics is a science auxiliary to all the experimental sciences of man, just as criticism and hermeneutics are a methodological science auxiliary to many sciences, otherwise different. It would be difficult to justify the use of the name statistics for such a science, as such a science corresponds to neither of the two meanings of the word status (state—condition).

146 The ancients understood by the term καμάρα camera, covered places such especially as were vaulted, also vaults of the most varied kind. Compare Herod, I, 199; Diod., II, 9; Strabo, XI, 495; Arrian, Exp. Alex., VII, 5, 55; Dio Cass. XXXVI, 32; Sallust, B. C., 55; Cicero, ad Q. fratrem III, 1; Plin., H. N. XXX, 27; Seneca, Epist., 86; Tacit. Hist. III, 47; Sueton, Nero, 34. During the middle ages, the meaning treasure-chamber (Schatzkammer) became predominant: camera est locus, in quem thesaurus recoilligitur, vel conclave, in quo pecunia reservatur (Ocham, Cap. Quid sit Scaccarium). It gradually became synonymous with finance,—from the time of Charlemagne, or at least since Louis II. (Charter of 874). See Ducange, Glossarium, v. Camera, and Muratori Antiquitt. Ital., I, 932 ff.

147 "A husbandman must plow and manure his land if he would reap a harvest from it. He must fatten his cattle if he would slaughter them; and furnish his cows with good fodder if he would have them give good milk. In like manner, a prince should begin by assuring his subjects healthy and abundant food, if he would take anything from them." von Schroeder, Fuerstl. Schatz-und Rentkammer (1686), preface, 11. Von Horneck before him, Oesterreich ueber alles wann es nur will, p. 220, ed. of 1707, had expressed the idea that the watchful solicitude for the public economy of the country was no parergon, no appendix, to the council (Kammer), but its real basis, and that it embraced many subjects which had nothing in common with the cameralia ("Cameralien").

148 Morhof, Polyhistor (1688), III. Thomasius, 1728, Cautelae circa praecognita Jurisprudentiae (1710), ch. 17. (Cautelae circa studium oeconomicum.) Also, in his lectures on Seckendorff's "Teutschen Fuerstenstaat." Compare Roscher, Gesch. der N. OEk. in Deutschland, 328 ff.

149 While Dithmar (1731) distinguishes economy-police and cameralistic sciences and restricts the latter to finance and taxation; Darjes (1756) comprises under the name of cameralistic science, economy (municipal and rural), and police, as well as cameralistic subjects in the strict sense of the term, that is, the public, domain and regal rights. While Nau (1791), in his "Ersten Linien der C.," treats only of the branches of private economy, Schmalz, (1797) treats also of national or public economy, and Roessig (1792) divides cameralistic science into the doctrine of the public demesne and regal rights (cameralistic science in the narrower sense), and the doctrine of taxation and police.

150 Thus, for instance, all that concerns domestic economy, book-keeping and private financial administration.

151 John Stuart Mill, Principles of Political Economy (1848), I, p. 25, draws a distinction between the physical conditions which influence the economic situation of a people, and the moral and psychological conditions; which last have their origin in social institutions or in the fundamental principles of human nature. Only the latter belong to the domain of Political Economy. According to J. B. Say, Traite, Introd., this science embraces at once agriculture, manufactures and commerce, but only in their relation to the increase or diminution of wealth, and does not concern itself with the means employed to reach the desired end. As a rule, says Arndt (Naturgemaesse Volkswirthschaft, 1851, p. 16), it takes into consideration not so much things themselves as their exchange value. Lotz (Handbuch, I, p. 6 seq.), in like manner, defines Political Economy—the science of the one activity which constitutes the basis of all industries etc. F. G. Schulze (Ueber volkswirthschaftliche Begruendung der Gewerbswissenschaften, 1826), characterizes Political Economy as the science of the fundamental conditions of the well-being of a people, in so far as they lie in human nature.

When Adam Smith (book IV, c. II) says that the government in respect to matters of economy is inferior to the first best person engaged in industrial pursuits, he is right only from a technic point of view. And when Stewart, on the other hand, vindicates for the state the office of a pater-familias (book II, ch. 13), he evidently means only in national economical matters.

152 See also Rau (Ueber die Cameralwissenschaft, Entwickelung ihres Wesens und ihrer Theile, 1825); Baumstark (Cameralistische Enclycopaedie, 1835).

153 Xenoph. OEconom. I, 8 ff. Cyrop. VIII; 2, 23. He saw with equal clearness the moral light and shade of wealth. (OEcon. XI. 9. Conviv. 4. Memor. I, 6. Cyrop. VIII, 3, 35 ff. Hiero 4.)

154 Thomas Aquinas values earthly goods according to the end they are made to serve; when used for a good purpose, they have a mediately true value. Hence it was an error of the stoics to despise them under all circumstances. (Summa Theol. II, 2. Qu., 50, 3. 58, 2. 59, 3. 125, 4.)

155 Whateley considers the savage much beneath the materialist, instead of superior to him. The latter possesses, although he frequently abuses it, the faculty of self-control and forethought, which is entirely wanting in the former. (Lectures, No. 6.) Dunoyer, De la Liberte du Travaeil, liv. IV, ch. I, 8, an apology for the moral wholesomeness of civilization, since promotive of military prowess, favorable to the development of the sciences, and even poetical. Baudrillart, Manual d'OEkonomie politique, 1857, 24. See Fallati, Ueber die sogennannte materiellen Tendenz der Gegenwart, 1842.

156 See the inscription on the tomb of Sardanapalus: ταῦτ᾽ ἔχω, ὄσσ᾽ ἔφαγον καὶ ἐφύβρισα καί μετ᾽ ἔδωτος τέδπν ἔπαθον. (Strabo, XIV, 672.) Isaiah, 122, 13, 56, 12, and the book of wisdom (2) characterizes the view of the fallen Jewish people. In Greece, the Cynic and Epicurean schools were only different phases of the same degeneration. "Thirst, for money, and nothing else, will be the ruin of Sparta!" (Cicero, De Offic, II, 22, 77.) See the magnificent description by Demosthenes, in which he shows the over-estimation of material things to be the principal cause of the decline of Athens, and in which he lays great stress on the fact, that Athens, on its decay, had a larger population, more wealth, ships, and evidences of external power, than in its golden age. (Phil., III, 120 seq.) Also Phil., IV, 144, cautions us against the Manchester criterion of national prosperity. See Plato, De Rep., VIII. In Rome, the principle ommia venalia esse was a chief element in the total decline and fall of the republic. (Sallust, Cat., 10 ff., Jug., 8 ff.) In an age when people think they can do everything with money, the ruin of all things is the last end of mercantile, financial and political speculation. (Condillac, Le Commerce et le Gouverment, 1776, II, 18.)

157 Under Pericles, the Athenian treasury of the state contained at most 9,700 talents. (Thucyd. II, 13.) On the other hand, Alexander the Great had a treasure of 180,000 talents accumulated in the citadel of Ecbatana. (Strabo, XV, 731); Ptolomy II. left after him 740,000 talents. (Appian. praef. 10, Droysen, Geschichte des Hellenismus II, 44 ff.) In Nero's time there was many a freedman's daughter who owned a looking glass worth a greater sum than the senate had appropriated as a dowry to the daughter of the great Scipio. (Seneca, Quaest. Natur. I, 17. Compare Cons, ad Helviam, 12.) McCulloch says that an intelligent despotism can enrich a nation as well as freedom. (In his Discourse on the Rise, etc. of Polit. Econ., 1825, 77 seq.)

158 Bacon (Sermones, 56) says that youthful states distinguish themselves specially by their warlike instincts; mature states in literature; old and decaying ones in industry and commerce. Davenant very happily remarks, that the development of commerce among a people has an ambiguous value. It, indeed, increases wealth, but, at the same time, it may introduce luxury, covetousness and fraud, destroy virtue, do away with simplicity of manners and customs, and then it inevitably ends in internal or external slavery. (Works II, 275.) The simplicity of the patriarchal state, however, cannot last always, if for no other reason, because of the emulation of foreign nations. (1, 348, ff.) The impoverishment of even the wealthiest nation is certainly inevitable when its morality declines. It is especially true, that the public economy of a people can be prosperous only where political liberty obtains, and this, independent of the fact that wealth without freedom has no value. (II, 336 ff., 380, ff., 285.) According to Ferguson, private wealth, honestly acquired, used rightly and with moderation, managed with a sense of independence, may be to those who possess it, an element of self-confidence and of liberty, provided they loosen their purse strings not through vanity or for their personal gratification, but for commendable party purposes. But in periods of decay, even a greater amount of wealth is very far from producing these results. (History of Civil Society, VI, 5.) Whately, on the contrary, maintains that only personal wealth—never national wealth—has a disastrous influence on morals. Lectures, No. 2.

159 "The method of a science is of much greater importance than any individual discovery, however wonderful." (Cuvier.)

160 Thus, for instance, G. Biel (ob. 1495), the "last of the schoolmen," gives us his doctrine of Political Economy, in a work on Dogmatic Theology, in the chapter on Penance, his starting point being the inquiry, how the economic damage caused by the sinner may be repaired. Roscher, Geschichte der Nationaloekonomik in Deutchland, 1074, I, 23. The Melittotheologia, Arachnotheologia of later times! A recent attempt in this direction has been made by Ad. Mueller, Nothwendigkeit einer theologischen Grundage der gesammten Staatswissenschaften und der Staatswirthschaft insbesondere (1819), i.e., "necessity of a theological basis for all political science, and especially for Political Economy." He divides political science into two parts: the science of law, and the science of wisdom, embracing under the latter denomination, politics, Political Economy, etc. Law emanates from God, as supreme judge; the science of wisdom from God, as our Supreme Father.

161 Abstraction is indulged in on a large scale, when a number of elements which are always found combined in life, are here separated and examined apart. It is precisely thus that anatomy proceeds, dissecting each member of the human frame, separating the bones, ligaments and muscles from one another, thus becoming the necessary preparatory school to physiology.

162 Thus, for instance, Canard, Principes d'Economie politique (1801). Also Kroencke, in several of his works, and Count Buquoy, in his Theorie der Nationalwirthschaft (1816), p. 333 ff.; Lang, Grundlinien einer politischen Arithmetik, Charkow, 1811, and more especially v. Thuenen, Der isolirte Staat, vol. I (1842), vol. II, 1850. See my criticism of his method in Birnbaum's Georgika, 1869, 77 ff. Voa Thuenen's first volume is an essay towards a geometrical exposition of the science. See also Rau, Lehrbuch I, 154, appendix; von Mangoldt, Grundriss der Volkswirthschaftslehre (1862); Cazaux, Elements d'Economie privee et Principes mathematiques de la Theorie des Richesses (1838); F. Fuoco, Saggi economici (1827) II, 61 ff. Walras, Elements d'Econ. politique pure (1874). Jevons has recently endeavored to give Political Economy a mathematical basis by reducing the objects of which it treats to the calculable feelings of pleasure (+) and pain (-). The duration of a feeling is treated as an abscissa, its intensity as the ordinate of a curve, and its quantity as the area. Future feelings are reduced to present ones, by allowing for their distance, and the uncertainty of their occurrence. All this, however, is rather curious than scientifically useful.

163 Herbart, Ueber die Moeglichkeit und Nothwendigkeit, Mathematik auf Psychologie anzuwenden; Kleinere Schriften, II, 417.

164 How detrimental it is to ignore the psychological nature of Political Economy is evident from the errors of Karl Marx, who personifies things in a manner almost mythological. Thus, according to him, modesty should be ascribed to a coat which exchanges for a piece of linen, and purpose to the linen, etc. (Das Kapital, 1867, I, 19, 22, seq.) The greatest fault of this intelligent but not very acute man, his inability to reduce complicated phenomena to their constituent elements, is greatly increased by his way of thus looking at things.

165 Compare J. B. Say, Traite I, introd. Thus, it would be certainly possible to describe every individual's physiognomy by means of a very complicated mathematical formula, and yet there is no one who would not prefer the usual mode of taking pictures. The simple motions of the heavenly bodies, on the contrary, are always treated mathematically. (Lotze, Allgemeine Physiologie, 322 ff.)

166 When Fawcett says that all "principles of Political Economy are describing tendencies instead of actual results" (Manual of Political Economy, 1863, p. 90), our method, the historical, would give also the theory of the latter.

167 This was lost sight of by most writers during the second half of the eighteenth century, because they looked upon that equality as the really oldest condition, and its restoration the ideal to be striven for. How much of this still clings to the present free-trade school; see in Roscher, Gesch. der N. OEk. in Deutschland, 10, 17 ff.

168 Thus, for instance, Ricardo examines, almost exclusively, the actual condition of things, while the socialists confine themselves, still more exclusively, to the investigation of how things should be. It has been very usual in Germany since Rau wrote, to draw a distinction between theoretical and practical Political Economy. There are many who think that a good manual of practical Political Economy, dropping the introduction, demonstrations etc., would be also a good code of law, of universal application. Mercier de la Riviere has said that he wished to propose an organization which should be necessarily productive of all the happiness which can be enjoyed on earth. (Ordre essentiel et naturel (1767), Disc. prelim.) Compare, also, Sismondi, N. Principes, I, ch. 2.

169 The word method is used in an essentially different sense, when the inquiry is, whether the inductive or deductive method is followed in Political Economy. J. S. Mill calls Political Economy, and, indeed, all "sociology," a concrete deductive science, whose a priori conclusions, based on the laws of human nature, must be tested by experience, either by comparing them with the concrete phenomena themselves, or with their emperical laws. It, in this, resembles astronomy and physics. (System of Logic VI, ch. 9. Essays on some unsettled questions of Political E., No. 5.) According to this, an economic fact can be said to have received a scientific explanation only when its deductive and inductive explanations have met and agreed. "Only those principles which, after they have been obtained by the one, are confirmed by the other method, can be said to have a scientific basis." (von Mangoldt, Grundriss, 8.) While I agree to this view, it seems necessary to me to mention points wherein caution is necessary: A. Even the deductive explanation of economic facts is based on observation, namely, on the self-observation of the person accounting for them, who, consciously or unconsciously, must always inquire: If I had experienced or accomplished the same fact, what should I have thought, willed and felt? The man who cannot translate himself into the souls of others, will give a wrong explanation of most economic facts. In the question, for instance, of the determination of the price of an article, the person who can look into the mind of one of the contracting parties only, will give a one-sided explanation of the facts. B. Moreover, every explanation, that is, satisfactory connection of the fact seeking explanation with other facts which are already clear, can be only provisional. The wider our horizon grows, the deeper should our solution of all questions become. A hundred years hence, should science increase in the mean time, the solutions which are satisfactory to us will be looked down upon by our posterity, as the speculations of our fathers antecedent to Adam Smith's time are looked down upon by us.

170 Tanquam e vinculis sermocinantur, says Bacon (De Dignit. et Augm. Scient., III, 3), of those who have written in a not non-practical way on the laws. Hugo, also (Naturrecht, 1819, p. 9), calls attention to the resemblance of the so-called laws of nature, to the positive law in force at the time. As to political idealism, see Roscher: De historicae doctrinae apud sophistas majores vestigiis (Goett. 1838, 26 ff.). The only exceptions to this rule are the eclectics, who form their own system from the blossoms of all foreign ones, a system, indeed, without root, and which therefore must soon wither.

171 In this place, naturally, such an assertion can be made only as a programme to be carried out, the proof whereof is to be sought in the rest of the work. By "the people," we do not mean the governed, to the exclusion of the governing classes, but both classes together. We attach to the expression the most extensive meaning possible. We do not limit it to the present generation, but intend it to cover all the generations from the beginning of a people's history to its end.

172 The custom, which has become general, of calling all democratic movements, and them only, revolutions (thus Stahl: Was ist Revolution? 1852, and many other writers of an entirely opposite tendency, especially in France), is not warranted. It is true that democratic (and imperial) revolutions are more frequent than others in our times, just as aristocratic revolutions were in the middle ages, and monarchical at the beginning of modern history. The essence of revolution, however, is in the operation of change contrary to positive law, acknowledged as such by the consciousness of the people.

173 Compare, especially, the first pages of Sir J. Stewart, Principles of Polit. Economy.

174 See Colton, Public Economy of the United States, p. 28, who, indeed, unwarrantedly, refers to the whole of Political Economy, what properly belongs to its precepts.

175 Je n'impose rien, je ne propose meme rien: j'expose. (Ch. Dunoyer). Cherbuliez, Precis de la Science economique, 1862, p. 7 ff., has exaggerated this idea in a strangely non-practical manner. That the historical method does not differ essentially from the statistical as recently recommended, see Roscher, Gesch. der Nat. OEk., 1035 seq.

176 Storch, Handbuch, II, 222.

177 Ad. Mueller, an essentially mediaeval mind, is guilty of this same braggadocio in an opposite direction, when he calls the "present with its political disorders simply an intermediate state,—the transmission of the natural or unconscious wisdom of the fathers, through the inquisitiveness of their children to the rational acknowledgment of that wisdom by their grandsons." (Theorie des Geldes, 1816, pref.)

178 Thus, for instance, it can not be said that a model university is better than a model public school; and yet the former is higher, because the age to which it is adapted is doubtless intellectually higher.

179 Knies (Polit. OEk., 256 seq.) remarks, that it would be a great mistake, and it is the mistake of the majority, to consider what has been achieved or striven for in the present, as the absolute non plus ultra, and thus to look upon all future generations as called upon to play the parts of apes and ruminators; a remark worthy to be taken to heart.

180 I have, myself, no doubt, that up to the present time, mankind, as a whole, has, from the beginning of historical knowledge, always advanced. In individual cases, their movement has been interrupted by so many pauses, and even by so many occasional retrogressions, that great care must be taken not to infer superior excellence from mere subsequency.

181 Buckle writes of people whose knowledge is about limited to that which they see going on under their eyes, and who are called practical, only because of their ignorance; and he adds that, although they assume to despise theory, they are in fact slaves of theory, of others' theories.

182 Compare this whole chapter with Roscher, Leben Werk und Zeitalter des Thukydides, 1842, pp. 25, 239-275; Roscher, Grundries zu Vorlesungen ueber die Staatswirthschaft nach geschichtlicher Methode, 1843, preface; Roscher Geschichte der Nat. OEk. in Deutchland (1874), 882 f., 1017 seq., and D. Vierteljahrsschrift, ff. See also J. Kautz's learned and accurate Theorie und Geschichte der N. OEkonomik, vol. I, 1858, II, 1860. I find no real contradiction between the views here expressed and those of Kautz, when he (I, pp. 313 ff.) introduces history and ethico-practical reason with their ideals as sources of Political Economy, to the end that the science may be something more than simply a picture, namely, a model of economic life. Apart from the fact that it is only the ethico-practical reason that can understand history at all, the ideals of a period constitute one of the most important elements of its history. The aspirations of an age find in them their best expression. The historical political, economist as such, is certainly not disinclined to form plans of reform, nor can it be said that he is not adapted to the performance of such a task. Only, he will scarcely recommend his reforms as absolutely better than what they are intended to supplant. He will confine himself to showing that there is a want which may, probably, be best satisfied by what he proposes. See Sartorius, Einladungsblaetter zu Vorlesungen ueber die Politik, 1793.

183 "There is a book which youth may use to grow old, and the old to remain young—History." (K. S. Zaccharia).

184 Especially when natural science begins to be "a practical science." (L. Stein).

185 The difference between the broader and narrower sense of production, corresponds essentially with that of gross and net income ( 145). Compare also 206, 211 ff.

186 Von Mangoldt distinguishes the coming into existence of free values of the production undertaken for an economic purpose. (Grundriss, 9.)

187 Gioja, Nuovo Prospetto delle Scienze economiche (1815), I, 49 ff. Besides positive production, there is a latent production, which prevents the decay of goods. It is not possible to make as exact an estimate of the latter as of the former; and much more depends in the latter case than in the former on continuity and proper extension. Hence, latent production is especially a state concern. (Knies, Telegraph als Verkehrsmittel, 1857, 232.)

188 See Schaeffle, in the Tuebinger Univ. Programm, September 27, 1862, on the disastrous effect on the community of idleness. The leading of a happy life the Greeks called very appropriately, εὐπράττειν (Garve).

189 We use the expression "external nature" through the whole of this work in contradistinction not only to the soul, but also to man's body, designating his entire physico-intellectual activity by the term "labor-force" (Arbeits kraft).

190 By the expression "natural forces," we designate the economically useful changes of matter, changes of place as well as of composition, which are made without man's cooperation; for instance, the gigantic machinery which supplies the greater part of mankind with water to drink, for domestic and other purposes—the evaporation of the sea, the formation of clouds, rain, springs, rivers etc. See Bastiat, Harmonies, 277. Thus the sun's rays are indirectly the cause, not only of vegetation, but also of all wind and steam forces.

191 Spite of this "freedom," it may well happen that these gifts of nature can be utilized, in many cases, only on condition of some expenditure. The photographer can compel the sunlight to work for him only by means of a camera obscura, and the smithy the atmosphere, only by means of a bellows. But neither will ever successfully make an item, in their accounts with their customers, of the services of the sun or air.

192 The most important ocean currents may be explained by two causes: the flowing of the water from the polar seas to the equator (polar current), and the revolution of the earth about its axis (equinoctial current); besides which, there are the reflex currents produced by the horizontal form of the coast-lands. Thanks to these natural ocean highways, England is nearer to almost all the important mercantile coasts of the world by 300 geographical miles than the Eastern States of the American Union. The only exception is the Atlantic coast of America north of the Equator. North Americans to pass the line, or to double one of the two great capes, are obliged first to traverse the ocean as far as the Azores. On the other hand, the western coast of South America is very widely separated from Mexico, for instance, by its ocean currents. The colonization of America by Europe, instead of by China, is a consequence of the direction of ocean currents, as is also the fact that America has now the fairest prospect of influencing the civilization of China and Japan. What an influence the warm gulf stream has on the mild climate of north-western Europe!

193 While the Mississippi has no ebb or flow whatever, the influence of the ocean is felt in the Hudson, which is 60 geographical miles long, a distance of 29 miles from its mouth.

194 Thus, A. Young, Travels in France I, 293 ff., has defined, with approximate accuracy, the limits within which the vine, maize and the olive grow. And so von Cancrin, Dorpater Jahrbuch IV, 1, distinguishes the ice zone, the reindeer-moss (a lichen on which the reindeer live in winter) zone, the forest zone, the zone within the limits of which cattle are raised; that in which the culture of rye begins, that in which it becomes permanent; the wheat, fruit-tree, vine, maize, olive, sugar cane and silk-worm zones. The United States are divided into cattle-raising, wheat-raising, cotton-raising, rice-raising and sugar-raising zones. Even in Europe, beyond the 60th parallel of north latitude, wheat can scarcely be cultivated; the polar limits of rye raising extend, at most, six or seven degrees farther. Towards the north, barley extends sometimes as far as the 70th degree. Here agriculture almost ceases, and the inhabitants are compelled to confine themselves to animal substances for food. On the other hand, these three cereals are not adapted to a tropical climate, while the bread-fruit tree, for instance, does not thrive at more than 22 degrees from the Equator, nor the banana at more than 35. Compare Grisebach, Die Vegetation der Erde nach ihrer klimatischen Anordnung. II, 1871.

195 Thus rye and wheat thrive in many parts of Siberia (Iakutzk) at an annual temperature of - 7.50, while in Iceland no cereals ripen at an annual temperature of + 4 deg.. But in the former place the summer heat is + 16.2 deg.; the winter cold, - 39.2 deg.; in Iceland, + 12 deg. and - 1.6 deg.. In England, the myrtle, laurel, camelia and fuchsia stand the winter well; while the vine no where ripens. On the other hand, Astrakan and Hungary are vine growing countries, although the former is as cold in winter as North Cape, and although the cold is more intense in Hungary than in the Faroe Islands, where neither the oak nor the beech grow any longer. No good wine is produced on the western coast of France, north of 47 deg. 20' north latitude; in Champagne, north of 49 deg., or in the Rheingau, north of 51 deg.. In Norway, the average heat is greater on the coast than in the heart of the country where, however, grain ripens, while it does not on the coast; for the mildness of the winter, no matter how great, can make no compensation for the want of heat. On the other hand, the cattle on the coast can remain much longer out of doors, and the sea seldom freezes in such a way as to interfere with the fisheries. Blom, Norwegen I, 39. Boussingnault (Economie rurale consideree dans ses Rapports avec la Chimie, II) has made some interesting attempts to calculate by a mathematical process the amount of heat necessary to vegetable, during the period of vegetation. Thus, for instance, wheat requires about 12 deg. (Reaumur) of heat during 140 days; that is, nearly 140 x 12 deg. = 1680 deg. Reaumur. In Venezuela, the sugar cane requires a longer time to grow in a higher and therefore cooler position than in a lower and warmer, and the length of time required is in proportion to the height.

196 Hence it is that the isothermal lines are not parallel with the equator or with one another. The greater number of these have two northern and two southern summits; the former on the western coasts of Europe and America, and the latter in eastern North America, and in the interior of Asia.

197 The quantity of rain which falls every year is, at St. Petersburg and Pesth, from 16 to 17 inches; at Berlin 19, Mannheim 21, Tuebingen 26: in the interior of France 16-24; on the French coast 25, on the eastern coast of England 24, on the western coast 35, in Milan 36, Genoa 44, on the coast of most tropical lands 70-120. On the political-economical influences of most climates, see Gobbi, Ueber die Abhaengikeit der Populationskraefte von den einfachen Grundfstoffen, 1842.

198 The snow limit at Mageroee in Norway is 2,200, in Iceland 2,900, in the northern Ural 4,500, in the Alps 8,200, in the Caucasus 10,400, and Quito 14,850 feet high. Hence it is that mountainous countries which produce nothing in the north, make magnificent vineyards in warmer countries.

199 In central Germany, even a second crop can be produced after the corn harvest. In Arabia, the same seed produces three harvests, because the grain which falls at the time of harvesting to the ground, germinates immediately and suffices for new seed. (Niebuhr, Beschreibung, 154.)

200 Thus in the northern states of the American union, wheat yields a return of only from four to five times the amount sown; in France, 5-6 times (Lavoisier): in Chili, 12 times; in northern Mexico, 17 times; in Peru, 18 and 20 times; in southern Mexico, 25 and even 35 times; in Germany, maize seed yields at best one hundred fold, while in the torrid zone there is a return of from three hundred to four hundred fold, generally.

201 Andalusian corn produces in the mill only one-half as much bran-waste as Baltic wheat produces. Bourgoing, Tableau de l'Espagne, II, 155. Baltic wheat contains 6-7 per cent, of azote, and Algerian, 20-25 Per cent. (Kabsch, Pflanzenleben der Erde, 1865.)

202 In Europe the blossoming season is retarded four days for each degree of northern latitude. (Schuebler.) As we advance towards the north, the difference becomes less noticeable, but more so as we go towards the south. In mountainous countries a similar difference is observable, produced by a like climatic influence. It is from about 10 to 12 days, for a height of from 500 to 600 feet. (Wolff, Naturgesetzliche Grundlagen des Ackerbaues I, p. 332 ff.) In the cantons, in which the Swiss confederation had its origin, the pasturage of the Alps lasts generally thirteen weeks, but in the higher Alps it lasts only from six to seven weeks. (Businger, C. Unterwalden., p. 52.)

203 In central Italy, winter wheat may be sown in October, November or December; summer wheat, in February or March. (Sismondi, Tableau de l'Agriculture Toscane, p. 35.) In Judaea, it was possible to harvest figs ten months in the year. (Joseph, Bell. Jud., Ill, p. 10.) On the other hand, there is Jemtland, where the peasant in many places surrounds the northern portion of his cornfield with fagots, and lights them in August when the north wind blows, to protect his land from the frost; and where the expression "green years" is used to designate those in which the harvest has to be reaped before it is ripe. (Forsell, Statistik von Schweden, 24.) In the valuation made of the lands of the kingdom of Saxony, for assessment purposes, the cost of supporting a yoke of oxen in the lowest country is estimated at only three-fourths of what it is in the highest localities, because in the former, 200 work days can be calculated upon in the year, in the latter only 159. In central Russia, the greater part of the labor of agriculture, sowing and harvesting, has to be finished within the space of four months. In central Germany, they are spread over seven months. Other things being equal, seven horses and ploughmen are needed in Russia where only four are called for in central Germany, (von Haxthausen, Studien I, 174.) On the impediments put in the way of agriculture by the climate of eastern Prussia, see Meitzen, Boden und landwirthsch. Verhaeltnisse des preussichen Staats, 1868, I, Abschn., 6.

204 "In both hemispheres, the zone in which the temperature decreases most rapidly lies between the 40th and 50th degrees of north latitude. This circumstance must have a happy influence on the culture and industry of the nation inhabiting the neighborhood of that zone. Here is the point where the regions of the vine touch upon those of the olive. Nowhere in the world, do the products of the vegetable kingdom, and the most varied wonders of agriculture, follow with such rapidity on one another. The great variety of products enlivens the commerce and increases the industrial activity of agricultural nations." (Humboldt.) It is true, however, that tropical countries possess, also, in their mountainous parts, the tierra fria, templada and caliente, superimposed the one on the other.

205 The aggregate coal supply of Great Britain (1869) was 2,180 millions cwt.; of Belgium (1862), 207 millions; of France (1868) 256 millions; of Prussia (1870), 600 millions, of Austria (1870), including brown lignite coal, 158 millions; of Russia (1868), only a little over 9 millions. The great English coal field, in the counties of Durham and Northumberland, embraces 732 English square miles; that of South Wales, 1,200, with a depth of 95 feet, so that the geographical square mile contains here 679 millions of tons, each of twenty cwt. To obtain the same quantity of combustible material as was furnished to Prussia, in 1865, by its coal, it would be necessary to use up 6,331 square miles of forest, (von Dechen, in Engel's Zeitschrift, 1867, 258.) The supply of coal is, of course, exhaustible while, for instance, turf-fields replace themselves by slow degrees. Compare Griesbach, ueber die Bildung des Torfs, in the Goettinger Studien, 1845, vol. I. The importance of the coal-fields of the United States, which are twenty-two times as large as those of Great Britain, in the distant future, cannot be over-estimated.

206 I need only call attention to the earth-fire (Erdbrand) for the purpose of forcing the growth of garden plants in the neighborhood of Zwickau, which is said to have existed since 1505.

207 Thus, in Watt's steam engines of the larger kind, an hourly consumption of ten pounds of coal is needed to produce a force equivalent to that of one horse, while in the smallest machines of only one horse power, twenty-two pounds are needed. See Prechtl, Technolo. Encyklopaedie, III, 669.

208 It is easy to see that it is the most important substances needed in industry which are mentioned in this section. Many political economists have considered the principal difference between agriculture and the industries and economies of towns to lie in the contrast here referred to. Thus, A. Sena, Sulle Cause che possono far abbondare li Regni d'oro e d'argento, dove non sono miniere, 1613, I, 3. See the description of the difference between land and machines in Malthus, Principles, III, 5; Senior, Outlines, 86. But it is nothing more than a difference of gradation. Even in the most active of businesses there is a limit which the accumulation of means of production cannot pass without a relative diminution of the income. This boundary is imposed by the limited nature of those organic beings which must contribute to production either actively or passively. Thus, for instance, a manufacturing establishment or commercial business can be enlarged with advantage only so long as it is still possible for one superintendent to conduct it. And so, when cattle are furnished with very abundant and substantial food, a pound of meat costs the producer a much higher price than when they are more moderately supplied: sometimes in the ratio of 1.95:0.98. Boussingault, Economie rurale, II. Where there is absolute over-feeding, the producer must suffer loss. But, even inorganic nature imposes its own limits here; as, for instance, when ships, machines etc., on account of the insufficient strength of the materials of which they are made, cannot be constructed beyond a certain size. But all these limits are much narrower than those imposed by the quality of immovability.

209 Senior, Outlines, 26, 81 ff. See Stewart, Principles, II, ch. 11; Ortes, E. N., I, 18, II, 18 ff. This most important principle in Political Economy is thus illustrated by John Stuart Mill, Principles, book I, ch. 12. "The limitation to production from the properties of the soil is not like the obstacle opposed by a wall, which stands immovable in one particular spot, and offers no hindrance to motion short of stopping it entirely. We may rather compare it to a highly elastic and extendible band, which is hardly ever so violently stretched, that it could not possibly be stretched any more, yet the pressure of which is felt long before the final limit is reached, and felt more severely the nearer that limit is approached." This is, if possible, more obvious in building than in agriculture, both as to the construction of new stories and the excavation of deeper cellars.

210 Ad. Mayer, Das Duengerkapital und der Raubbau (Heidelberg, 1869), sees the only conditions of production which man cannot increase at will exclusively in the sun's rays, the employment of which also depends on the quantity of land. Thus would he explain Senior's law.

211 See the tables of increase in Cotta, Anweisung zum Waldbau, p. 228. Count Buquoy, Theorie der N. Wirthschaft, p. 54, ridicules the absurd procedure of a great many farmers, as if by forcing the ploughshare deeper into the soil, they could compel it to produce a double return, and asks: if one should dig a square foot of land to the center of the earth and manure it, who would take it off his hands? As to the effect of manure, Kuhlmann's investigations have shown that 300 kilogrammes of guano produced in three years an increase per hectare in the yield, of 2,469 kilogrammes of hay; while 600 kilogrammes produced an increase of only 2,870 kilogrammes. Schuebler, found that where salt had been used for manuring purposes, 40 kilogrammes produced a maximum of fertility from which point forward every increase in the amount of salt was attended by diminished returns, and finally led to complete barrenness. See Wolff, Naturgesetzliche Grundlagen, I, 408, 412, 502. Constantly increased irrigation would convert the land into a swamp instead of indefinitely adding to its fertility. Nor can abundant sowing be of any use when it reaches such a point that the plants stand so closely together as to interfere with their proper development.

212 These differences correspond with the differences in the kinds of deterioration to which land is liable from rivers, floods, lava, etc., soil-exhaustion, and the growing wild of the land.

213 From a technic point of view, it would, perhaps, be practicable, in most instances, to obtain the phosphoric acid immediately from the land and transfer it to other land; but the relation of the cost to the result makes it impossible from an economical point of view.

214 It most certainly is always an uncommon advantage that certain kinds of soil, rich in kali and decayed vegetable matter, yield a long series of harvests without the addition of manure, provided, always, that a short interval is allowed to the process of decay to replace the exhausted plant-food. Thus in many volcanic regions. Compare on similar districts in the Deccan: Rilter, Erdkunde, V, 714.

215 According to Schuebler, the absorption of water by 100 parts of earth is, in the case of quartz-sand, 25 per cent. of its weight; for clay, 70 per cent.; for calcareous earth, 85 per cent.; humus, 190 per cent.; and for 100 parts of their value, respectively, 37.9, 66.2, and 69.2 per cent. The consistency of the four kinds of earth, in a dry state, is in the proportion of 0.100, 5, 8.7; their adhesion in a moist state, to iron agricultural implements, is in that of 0.17, 1.12, 0.65, 0.40. Of 100 parts of water mixed with these kinds of earth, the evaporation in four hours, at a temperature of 18 deg. 75' (centigrade) is 88.4, 31.3, 28 and 20.5 per cent, respectively. The diminution of volume when the moist earth dries, under the same degree of temperature, is, 0, 18.3, 5 and 20. Their relative absorption of atmospheric moisture for 48 hours is as 0, 24, 17.5 and 55; their absorption of oxygen in 30 days is respectively 1.6, 15.3, 10.8 and 2.03 per cent.; and, lastly, their heat-holding power is in the ratio of 95.6, 66.7, 61.8, 49.

216 In Austria, below the Enns, only 3.8 per cent. of the soil is barren; in the Tyrol, 29 per cent.; in Dalmatia, 48.1 per cent. (Springer). In the French Pyrenees, 43 per cent. is considered incapable of cultivation; in the Alps, in Landes and Morbihan, 42 per cent.; in the departments of Nord and Somme, 1.3 per cent. (Schnitzler). Franscini considers 36 per cent. of Switzerland unfit for tillage. The idea "barren" is a very vague one, and hence a comparison of different countries on this point should not be made without great caution.

217 Wolff, loc. cit., 353 ff. As to the manner in which soil and climate mutually improve or injure one another, see Schwerz, Prackt. Ackerbau I, 12.

218 In this respect, also, the fundamental difference between agriculture and industry is very important, inasmuch as the products of the former, equal in value to those of the latter, require a very large supporting or bearing surface; those of industry, a very small one. If Nobbe's "water-cultivation" should ever come to assume any great practical importance, agriculture would approach to industry in this respect.

219 Wolkoff has called special attention to mere emplacement: Lectures d'Economie politique rationelle (1861), pp. 90 seq., 157 seq. Bastiat's rather broad and enthusiastic assertion, that no mere product of nature possesses value (in contradistinction to utility), an exaggeration of his very honorable contest with the socialists (1848!), is refuted by daily experience, as when, for instance, discoveries are made accidentally of metallic veins, coal-fields etc., which immediately acquire great exchange value.

220 Aristotle distinguishes between ἀπολαυστικὰ and κάρπιμα. (Rhet., I, 5.)

221 Humboldt, Essai politique, sur la N. Espagne, IV, 9, in which he estimates the relation of the culture of the banana to that of wheat, in respect of mere quantity, to be as 4,000 to 30,—"probably the best gift of nature to awakening man, and the object of the most ancient cultivation."

222 It was said that in Easter Island, three days' labor sufficed for a man's maintenance through the whole year. A similar gift of nature to tropical lands is the date tree. It is turned to so many different uses that the Arabs of the coast of the Persian Gulf say that it is possible to construct a ship, rig it, supply and freight it, from date trees. Houses are built of palm wood, covered with palm leaves, furnished with palm mats, lighted with palm chips, and heated with palm coals. The whole architecture of these countries is fashioned by the date tree. Date wine is the favorite intoxicating beverage. There is a proverb current there that a good housewife can vary the preparation of the date for her guests every day in the month. Even the pulp is eaten. Each tree yields an average of 50-250 lbs. of dates; and a tree may last over 200 years. An acre may contain more than 200 trees. The labor of cultivation is very slight, although it demands more care than the banana. Compare Ritter, Erdkunde, XII, 763. An acre planted with the sago-palm yields as much nourishment as 163 acres of wheat land. (Reise der Frigatte Novara, II, 113.)

223 See D. Hume, Discourses No. I (On Commerce). While in hot countries "the sun does more work for man, it diminishes human strength itself." (M. Wirth.) That, however, such people, to their surplus of the natural means of enjoyment and the consequent laziness and absence of care, add the bright side of a joyous disposition, is well shown by Goethe, Werke (16 mo., 1840), XXIII, 246.

224 Noticed even by Thucyd., I, 2. See also Euripides' comparison of Sparta and Messina, in Strabo, VIII, 366.

225 We find, in a great many countries, that their northern portions are endowed more sparingly by nature with means of enjoyment (Genussmitteln) than southern portions, but more abundantly with means of acquisition. (Erwerbsmitteln.) Hence, the former are latest to develop; but once developed, they assume a much higher place in civilization than the latter. This is true of Italy, Spain, Portugal, France, the Netherlands, and the United States, and of North America in general, as compared with South America. Something similar may be seen in the contrast between Austria and Prussia. The latter is colder and less fertile, but far superior to the former in extent of coast, in rivers, and fossilized combustible matter.

226 The rule is not without its exceptions. Thus, for instance, Borneo and New Guinea are physically very like each other, but zooelogically two different worlds; the former belonging to India and the latter to Australia.

227 Even language, which is the most general and most accurate expression of the intellectual genius of a people, presents a strikingly analogous contrast in mountainous and coast countries. Thus, compare the Ionic, Latin, Low German, Danish and Portuguese, with the Doric, Oscan, High German, Swedish and Spanish.

228 See Strabo, II, 126. seq.

229 The most striking instance, illustrative of the manner in which the nature of a country influences the character of a people is afforded by the difference in the development of the Aryans in India and Persia, especially when their sojourn in the territory of the Indus before that near the Ganges is looked upon as an intermediate stage.

230 French writers, especially, have exaggerated the influence of nature over man. Thus, Bodin. de Repub. (1584), V, I; Montesquieu, Esprit des Lois, XVII, 6. XVIII, 1, 18. Cabanis, Rapport du Physique et du Moral de l'Homme (1805), IX, Memoire, Influence des Climats. Comte, also, Traite de Legislation (1827), is of opinion that "the degree of civilization which a people may attain does not depend on the degree of development of which they are capable by nature, but on that which their geographical situation permits them to attain." See, also, Herodot., III, 106; Hippocr., De AEre etc., 71; Euripid., Medea, 820 ff.; Plutarch, De Exilio, 13. The proper mean has been found by E.M. Arndt, in his Anleitung zu historischen Characterschilderungen (1810), and by Ritter, and his school. See, also, K.S. Zachariae, Idee einer volkswirthschaftlichen Geographic als Grundlage der praktischen N. OEkonomie fur jedes einzelne Volk: Vierzig Buecher v. Staate, II, 79. See, also, Turgot, Geographie politique, 1750, OEuvres (ed. Daire, II, 611 ff.); Lueder, Nationalindustrie und Staatswirthschaft, III, 1800 ff.

231 Malte Brun, Precis. de la Geographie universelle, VI. pr.

232 Strabo, IV, 178. On the climate of ancient Germany, see Tacit, Germ, 2.

233 Fraser, Travels in Koordistan and Mesopotamia, II, 5. See, also, the description of ancient Susiana in Strabo XV, 731, with that of the new one by M'Kinneir, Geogr. Memoir of Persia, 92.

234 Thus, Galenus, De Usu Partium Corporis humani, L. I. The animal nearest to man mentally, the elephant, is also possessed of a member more like the human hand than any other animal. Its trunk was called manus by the Romans. Hence the Indians call the elephant, the animal gifted with a hand. Buffon's view is exaggerated by Helvetius in the interests of materialism. Aristotle, (De partt. anim. IV, 10), opposes the saying of Anaxagoras: διὰ τὸ χεῖρας ἔχειν φρονιμώτατον εἶναι τῶν ζώων ἄνθρωπον. Compare Bell, On the human Hand, 1836.

235 As to the imperfection of the ordinary division into agricultural, industrial and commercial labor, see John Stuart Mill, I, ch. 2, 9. The division of all labor into mental and physical, is not more satisfactory; for even the basest labor is not wholly physical. See Buckle, History of Civilization, vol. II.

236 Dioscorides and Galen were acquainted with, at most, 600 plants; Linnaeus, with 8,000. About 1812, about 30,000 had been described; in 1837, about 60,000; in 1849, about 100,000. Buckle, History of Civilization etc., II, p. 359.

237 Industrie extractives, according to Dunoyer. When nature's spontaneous gifts are exhausted, this occupation readily becomes production.

238 Industrie voituriere, according to Dunoyer; industria traslocatrice in opposition to trasformatrice, according to Scialoja. Ortes distinguishes only four classes: agricoltori, artefici, dispensatori and administratori, or raccoglitori, manifattori, and difensori di bene (E. N. I, 2; III, 14). A. Walker, Science of Wealth (1867), p. 34, knows only three classes: transmutation, transformation, transportation.

239 This is not to be understood in the sense, that there ever was a period in which these sciences were unknown. We need only mention the position occupied by the priest and knight in the middle ages. But, looked upon as economic labor, intended only for purposes of free commerce, they have become very important only within a relatively recent period of time. Thus, for instance, there was in Lower Austria, in 1866, one lawyer or notary to every 6,569 inhabitants; in Bohemia, to every 14,860; in Galicia, to every 22,361; in the whole of Cis-Leithanian Austria, 12,259. In 1865, there was in Prussia, one to every 11,149; in Bavaria, to every 7,350; in Hanover, to every 4,946; in 1862, in Baden, one to every 4,992; in 1867, in Saxony, one to every 3,048. Hildebrand's Tagebuch, 1868, I, 234. There was in Prussia, in 1871, one doctor to every 3,230 inhabitants; in Berlin, to every 1,100; in Heldesheim, to 1,803; in Cologne, to 2,120, in Marienwerder, to 7,240; in Gumbinnen, to 10,047. Engel, Preuss. Statis. Zeitschrift, 1872, 376. The verb "to plow" is, according to comparative philologists, of more recent origin than "to weave." (Lassen, Indische Alterth. I, 814 ff.) And yet agriculture, in the sense above indicated, undoubtedly precedes industry.

240 Observed by Geiler v. Kaisersberg. Compare Schmoller in the Tuebinger Zeitschr., 1860, 483. Hour wages occupy a middle place between day wages and piece wages.

241 Thus the introduction of piece wages into lower Silesia has increased the daily earnings of workmen by one-third, one-half, and even more. Engel's Stastist. Zeitschr. (1868), p. 327. The investigations of the German agricultural congress on the condition of agricultural laborers in the German empire (report of v. d. Goltz, 1875) show that in all Germany on an average, the daily earnings of a contract workman (Accordloehner) is to the daily summer wages of a day laborer as 15:10 (1420). On the other hand, Brassey, in the construction of a railway, found that the same workmen engaged in grading, digging, etc., cost 18 pence per yard when paid by the day, and 7 pence when paid by the piece. (Work and Wages, 266.) Swiss experience is, that production became 20 per cent. cheaper under the piece wages system. (Boehmert, Beitr., 109.)

242 According to v. d. Goltz's Enquete, the earnings of workmen by the piece, compared with the wages paid workmen by the day in summer, is especially high in middle Franconia (16.5:10); in the Leipzig circle of the German empire (16.6), in the Braunschweig plain (16.8), within the jurisdiction of Hildesheim (18.1), of the Bavarian Palatinate (18.6), in Rhenish Hesse (23.2), especially low in Stettin (13.2:10), in Stralsund (12.4), in Schleswig Holstein (12), in Osnabrueck, (11.7.)

243 According to v. Flotow, Anleitung zur Fertigung der Ertragsanschlage, I, 80, four days of serf labor are equivalent to only three of a free day laborer. According to v. Jacob, Ueber die Arbeit Leibeigener und freier Bauern (1815), 21, two day laborers are equal to three serfs, and one farm horse is equal to two employed by serfs. It is as impossible to obtain accurate general estimates here, as in the case of slave labor. As a rule, hope is not only a more humane but a sharper spur to action. But if force is employed at all, there is no doubt that the greater it is, the more effectual it is. Wherever the right of corporal punishment has been taken from the masters, the technic value of serfdom has uniformly decreased. In the English West Indies, formerly, philanthropic masters who treated their negroes with unwonted gentleness, obtained from them, as a rule, very poor economic results. While each of the slaves expressed the greatest indignation at the idleness of the others when they had "so good a master," they were all equally and excessively lazy. The weekly production of a plantation sank rapidly under this system from thirty-three hogsheads to twenty-three, and finally to thirteen. Math. Levis, Journal of a West India Proprietor, 1834; Edinburg Review, XLV, 410. For the same reason, the negroes in the Spanish colonies, who were treated much more gently than those owned by other European nationalities produced much worse work. See, however, Columella, De Re rust., I, 8.

244 According to Howlett, The Insufficiency of the Causes to which the Increase of our Poor Rate have been ascribed (1788), piece wages had become usual "a few years ago." Very recently the trades unions have again restricted the system of piece wages ( 176).

245 This system is inapplicable in the case of domestic servants (Gesinde) who are a part of the household, and who afford to their masters, besides their services, the advantage of having a person at their disposal always about them, and whose wages are therefore in great part their board and lodging. Still less can it apply to the case of the family physician, whose services consist not simply in writing prescriptions, but who is also the professional family friend. The same may be said of the state official, clergyman etc., from whom it is demanded that he should sacrifice his entire life to the service of the public. Against adopting piece wages in the case of state officials, it may be further urged that no case at law, no act of public life is precisely similar to any other. It cannot be applied to that of soldiers, because they are called upon for action only after a long term of peace, during all of which they must keep themselves in readiness for war. (Schaeffle, N. OEk., II, 388.) It has also been the practice of courts, until recently, on account of their dignity, to pay their mechanics not by the piece, wherever that was practicable, but by a fixed salary. An able professor in a university is of use to it not only by his lectures, but by his reputation and example etc.; hence, here, a combination of piece wages and of a regular salary is preferred. As to services, the permanency of which constitutes their essential character, remuneration is also wont to be permanent or hereditary, as in the case of very many public officers, while civilization is as yet unadvanced. Later, in proportion as the progress of civilization makes itself felt, this hereditariness is wont to be confined to the sovereign. For an opposite view, see Boxhorn, Institutt. politt. (1663), 41.

246 Thus, the Chinese, who, by a ridiculous exaggeration bordering on caricature of many of our recent tendencies, may afford us a warning reflection of ourselves in our present state of civilization, rarely labor efficiently when not watched. Only by means of piece wages or the share-system can they be induced to do good work. R. M. Micking; Recollections of Manilla and the Phillippine Islands, 1851.

247 Day laborers, for instance, must be watched over during the harvest, to prevent their idling away their time, and piece-workers to prevent their continuing to work in spite of wet weather, binding sheaves, for instance, which causes the sheaves to rot. In England, it is considered almost an impossibility to induce laborers to cut wheat close enough to the soil. (Sinclair, Code of Agriculture, 102.) The haste of piece-workers, in the harvest of the rape, occasions great loss, by the fall of the seed. In Russia the removing of the hide from animals is paid for by the piece, and the laborers injure a very large number of skins in their haste. Steinhaus, Russlands industrielle und commercielle Verhaeltnisse, 425. Piece-wages are to be entirely discountenanced in the reeling of silk. See Bernouilli, Technologie, II, 215. A yearly salary is to be recommended in the tending of cattle, because here a certain connection (Anschluss) with individuals is desirable. In building trades, contractors in England prefer a regular salary; but they employ model workmen, the so-called "bell horses," to whom they pay a large salary, and who keep the others on the strain by their example, and who on that account are very much hated by their colleagues.

248 Adam Smith, W. of Nations, I, ch. 8. Howlett, also, l. c., thinks that piece-wages increase the earnings of workmen, but at the expense of their capacity for constant labor. Count Goertz, in his Reise, 328, relates with what fatal effect piece-work in Demarara tells on white laborers and their horses. After the February Revolution, Parisian workmen demanded the abolition of piece-wages, and obtained it in several manufactories. Revue des deux Mondes, March 15, 1848.

249 In several Swiss factories, understrappers receive a salary, while monteurs work by groupe-contract. (Boehmert, Arbeiterveraeltnisse und Fabrikeinrichtungen der Schw., II, 70.) Sub-contracting, where the contract is generally made with only one person, for the most part of more than average capacity, and this latter contracts with other workmen on his own account entirely, is considered by philanthropic employers of labor as one of the worst kinds of remuneration. The more democratic system of gang-contract is much better, although even here, it is very easy for the weaker members of a good gang to overwork themselves. (Edinburg Review, October, 1873, 365.)

250 Especially important in chemical factories. The expense of greasing on the Rhenish railways fell, through premiums offered as rewards for saving, from 27,000 thalers to 5,000, in spite of an increase in the amount of traffic. (v. Mangoldt, Volkswirthschaftslehre, 349.) This was, besides, the most effectual way of controlling the theft of material.

251 In the cachelot fishery, the captain receives one-sixteenth, the master, one twenty-fifth, the second master, one thirty-fifth, the boatswain, one-sixtieth, each sailor, one eighty-fifth of the profit. (Humboldt, N. Espagne, IV, 10.) This system is very common in North America. See Carey in J. S. Mill's Principles, V, ch. 9, 7. In heathen Iceland, mariners were always paid a certain quota of the profits. Leo, in Raumer's historischem Taschenbuch, 1835, 524. The same was often the case in China. McCulloch, Comm. Diction. v. Canton. In England, its employment was rendered very difficult by the laws of partnership, which made each individual, except in great chartered societies, responsible for all kinds of debts contracted by the rest of the firm. J. S. Mill, B. IV, ch. 7, 5.

252 The house painter Leclaire, in Paris, obtained very high results in this respect. Leclaire, Repartition des Benefices du Travail, 1842. He retained for his own services as contractor the sum of 6,000 francs, and paid each workman the salary he had hitherto received. What remained was, at the end of the year, equally divided among all. Leclaire assures us that he was always satisfied with the system. The paying of a proportion of the general profits to laborers is advisable only in case their ability of surveying the whole is not much inferior to that of their employers. Where a special proportion is paid, in special branches of business, it is sufficient if their supervision extends over that particular branch. But a sharing in the profits of business always supposes a corresponding supervision of the business itself, and also the keeping of accounts.

253 A very good remedy against indigence among the lower classes. (Umpfenbach, National OEkonomie, 1867, 214.) But whether it will ever be possible to make the remuneration of the navvy or that of a type-setter depend on the final success of his work, qnoere.

254 Tournefort, speaking of the fatalism of the Turks, says that they always and everywhere leave the world as they found it. According to their own proverb, no grass grows again where the Osman has set foot.

255 The experiments made with the dynamometer in 1800 ff. show that the average force manuelle of an inhabitant of Van Dieman's Land is to that of an inhabitant of New Holland, of Timor, of a French marine, and of an English colonist in Australia, in the ratio of 50, 51, 58, 69, 71 kilogrammes. Peron, Voyage de Decouverte aux Terres australes, 2d ed., II, 417. It was found more recently in the American army, that the average lifting-power of white soldiers was 314 to 343 -lbs.; of white marines, 307; students, 308; negroes, 323; mulattos, 348; and Indians, 419. Gould, Investigations in the Military and Anthropolog. Statistics of American Soldiers, 1869, 458, seq. According to English manufacturers, an English laborer accomplishes almost as much again as a French one(?), and the latter in turn more than an Irishman. An English contractor, who had worked in French manufactories, expressed his opinion concerning the French to this effect: "It cannot be called work they do; it is only looking at it and wishing it done." Senior, Outlines, 149. Thus, for instance, a good English spinner with a machine of 800 spindles could produce 66 lbs. of yarn, No. 40, while a Frenchman could produce only 48 lbs. (M. Mohl, Reise durch Frankreich, 535; compare Dingler, Polyt. Journal, I, 63 seq.) That the Americans also are inferior to the English in strength and dexterity is attested by the American Hewitt. See Brentano, Arbeitergilden, II, 231. A Berlin wood-sawyer accomplished as much in ten days as a West Prussian from Labiau in twenty-seven days. J. G. Hoffmann. English farmers on the Hellespont prefer to pay Greek laborers L10 per year "besides their keep," rather than L3 to Turkish laborers. (Lord Carlisle, Diary in Turkish and Greek Waters, 1854, p. 77 seq.) In Paulo-pinang, the Malayan agricultural laborer receives $2-1/2 per month, the Malabar, $4, the Chinese, $6; for which compensation they work respectively 26, 28 and 30 days. Ritter, Erdkunde, v, 54.

256 Little light can be thrown on this subject by a comparison of different countries. Thus, in France, there are 614 persons in every 1,000 examined fit for military service; in Bavaria, 705; in Denmark, 523; in Austria, 498; in Prussia, 284; in Saxony, 259; in England, where the conscription is from among the lowest classes, 665; and in Wuerttemberg, 490. (Wappaeus, Allg. Bevoelkerungsstatistik, II, 71, 140.) Massy, Remarks on the Examination of Recruits, 1854. (Memminger, Wuert. Jahrb., 1843, 103.) The comparison of different parts of the same state is much more instructive. Thus, in Saxony, cities afford only 197, and the flat country only 265 per 1,000 (Saechs. statist. Ztschr., 1856, No. 4 ff.); and in France there are among those of illegitimate birth a very large number unfit for military service. (Journ. des Econ., 1850, XXV, 69.) According to the Austrian Annual of military statistics, there were in 1870, on an average, throughout the entire monarchy, 211 per 1,000 of those liable to enter the ranks of the military, fit for service; in the Innsbruck command, 325; in Lemberg, 179.

257 M. Chevalier, Cours, I, 115. Adam Smith, B. I, ch. 8, noticed the great industry of well paid workmen. Among the uneducated, labor must almost necessarily be repulsive in proportion as it is illy remunerated.

258 Thus A. Young remarked that wages in Ireland are wretchedly low, while labor is far from being cheap. In his "Evidence in Respect to the Occupation of Land in Ireland," II, 135, he says that a Scotch day laborer at 1s. per day is cheaper than an Irish day laborer at 1/2s. According to McCulloch, "Statis. Account of the British Empire," I, 666, industrial labor in Germany and France is dearer than in England, because in the former countries there are, ceteris paribus, twice as many laborers employed in most manufactures. See Senior, Lectures on Wages, 1830, 11, and the reports of the committees of parliament, passim on French manufactures (1825). The same has been experienced in the agricultural history of Schleswig-Holstein. See Hanssen, Archiv. der Politisch. OEk. IV, 421. La main d'oeuvre est chere en Russie des qu'il s'agit d'une certaine capacite et d'un certain degre d'instruction professionelle, tandis que celle de l'ouvrier ordinaire n'est nulle part aussi bas. (Tegoborsky.)

259 Thus even Columella, R. R. I, 9. J. S. Mill, Principles, I, ch. 7, 5.

260 Thus, for instance, the Lex Visigoth., VIII, 4, 16, graduates the fine to be paid by the murderer according to the age of his victim. It increases up to the 20th year in the case of males, and diminishes after the 50th. In the case of females, the maximum is attained between the ages of 15 and 40. Similarly even Moses, Book III, 27.

261 As to what concerns the two sexes, the force renale of adult males is twice that of females in the human species. The difference between them in youth is not so great. The force manuelle of the two sexes at the age of 30 is as 9:5. (Quetelet, Sur l'Homme II, p. 73 ff.) The numerical ratio of one sex to the other varies but little among those nations which have attained a certain degree of civilization. See infra, 245.

262 It is of great importance to calculate here the number of days in the year in which the laborer is compelled to be idle on account of sickness. Fenger, (Quid faciant aetas annique tempus ad frequentiam et diuturnitatem morborum, Hafniae 1840), finds the following result:

Between 15 and 19 years, 7.2 days. Between 35 and 39 years, 7.8 days. Between 20 and 24 years, 10.3 days. Between 40 and 44 years, 8.3 days. Between 25 and 29 years, 9.5 days. Between 45 and 49 years, 11.6 days. Between 30 and 34 years, 7.6 days. Between 50 and 59 years, 14.1 days.

According to Villerme, in the Annales d'Hygiene, II,

At 60 years, 16 days. At 67 years, 42 days. At 65 years, 31 days. At 70 years, 75 days.

The latter table is the result of a comparison made of the tables of seventy Scotch mutual aid societies. Compare Digler, Polyt. Journal, XXIV, 168.

263 Tacit., Germ., 14. Leo, in Raumer's Taschenbuch, 1835, 418. Maxime sua esse credebant, quae: ex hostibus cepissent. (Gajus IV, 16.) Roman auction sub hasta! Similar views obtained among the Thracians. See Herodot., V, 6. In Sparta, even in the time of Agesilaus, economic labor was considered unworthy of a free man, (Plutarch, Ages, 26); while the Athenians, from the time of Solon, punished idleness, and from that of Pericles "knew no other festival but attending to their business." Thucyd., I. 70. For some happy observations on this subject, see Riehl, Die deutsche Arbeit, 1861.

264 Compare Erasmus Colloq. (ed. Stallb.), 21 ff., 213 ff., 392 ff.

265 Temple learned from the Dutch of his own age that the time of industrious men is the greatest home commodity of a country. (Works I, 129.) "A trader's time is his bread." (Sir M. Decker, Essay on the Decline etc., 1744, 24.) Walpole, in his Testament politique II, 385, speaks of the inferiority of the Roman Church in this respect. I would allude to the medieaval prohibition "to sell time" as one of the chief grounds of the prohibition of usury. (See Roscher, Gesch. der N. OEk. in Deutschland, 7.) Economia di tempo equivale a prolungamento di esistenza. (Soialeja.)

266 Douville, Voyage au Congo I, 239. See v. Haxthausen, Studien, II, 439; W. Jacob, Production and Consumption of the precious Metals, II, 209. The division of the day into hours dates from the time of the sun dials of Alexandria. It was not known in Rome until after the year of the city 491. (Mommsen, Roemische Geschichte, I. 301.)

267 Pinckard, Notes on the West Indies, 1806, II, 107. In Spain it looks as if no one in the streets was in a hurry. What a contrast between the sans souci gait of persons at bathing places and the resorts of pilgrims and the precipitate haste in commercial centres!

268 Meyendorff, Voyage a Boukhara, 246.

269 The history of this idea affords a remarkable example of the confusion produced by the employment of scientific terminology in daily life. Until within a short time every possible meaning of the word capital was to be found in the dictionary of the French Academy, its scientific politico-economical meaning alone excepted. During the middle ages, the Latin capitale was used to signify both loaned money and cattle. (Ducange, s.v.) When culture was at its highest in Greece, Demosthenes entertained very good ideas of the nature of capital which he sometimes calls ἀφορμὴ, sometimes ἔρανος, the meaning of which he extends also to the incorporeal capital of a good reputation. (Adv. Mid., 574; pro Phorm, 947.) The same may be said of the Roman in conception of peculium. See Hildebrand's Jahrbb., 1866, I. 338. On the beginnings of the present idea of capital among the later schoolmen, see Funck, Tuebinger Ztschr., 1869, 149. The diary of Lucas Rems, 1491-1541 (ed. Greiff, 1861), calls commercial capital, in most instances, the chief good (Hauptgut) p. 37; also Cavedal. The words money and capital, interest and the price of money are now confounded in daily life, as they were formerly by most writers. In the 17th century, Child and Locke may be mentioned as instances. Hobbes had some faint notion of the productive power of capital. See Roscher, Zur Geschichte der englischen Volkswirthschaftslehre, 49, 60, 102. Thus, also, in the 18th century, Law, Sur l'Usage des Monnaies, 697; Trade and money (1705) 117; Melon, Essai politique sur le Commerce, 1734, ch. 22; Galiani, Della Moneta, IV, 1, 3; Blackstone, Commentaries, 1764, II, 456; Genovesi, Economia civile, II, 2, 18, 13; Stewart, Principles, IV, 1, ch. IV; Verri, Meditazioni, XIV; Buesch, Geldumlauf, V. 14; A. Young, Political Arithmetics (1774), 1, ch. 7. Hume, on the other hand, Discourses (1752), No. 4 (on interest), shows, that the rate of interest is dependent, not as Locke supposed, on the abundance or scarcity of money, but on the state of profit and on the relation between the demand and supply of capital. Similarly, J. Massie, An Essay on the governing Causes of the Rate of Interest (1750). Quesnay, Dialogue sur le Commerce, 173 (ed. Daire), shows that he had a very clear conception of the operation, and of the principal component parts of capital. Turgot, Sur la Formation et la Distribution des Richesses, 14, 54-79, came very near the truth, and yet missed it. He recognized the necessity of advances which, as a rule, are the result of saving, in every case of production. He also distinguishes in the product of the soil, besides the produit net and the subsistance du laboureur, the profit of the latter. He likewise points out a great number of differences between the "price of money" considered in its relation to trade, and in its relation to loans. He explains the interest on capital, as Schroeder, in his Schatz-und Rentkammer, 231, and Benjamin Franklin, in his Inquiry into the Nature of a Paper Currency (1729) had done before, by the fact that the owner of capital can purchase a piece of land with his capital, and thus draw an income without working. Money, he said, was indeed not productive, but neither was any other thing that could be loaned or leased, with the exception of land and cattle. Adam Smith deserves the greatest credit for his analysis of the idea of capital, although he opposes "capital" to what the Germans call capital-in-use, the "stock for immediate consumption." When Canard, Principes d'Economie politique (1801) and J. B. Say, Cours pratique, 1828, I, 285, included man's power of labor in capital, they took a retrograde step. "Labour is Capital, primary and fundamental." Colton, 275. Every grown-up individual, says McCulloch, Principles, 1825, II, ch. 2, may be looked upon as a machine which has cost several years of continued care and a considerable sum for its construction. It is only another side of this same perversity, when McCulloch seeks to force the results produced by animals and machines into the definition of labor. Schlozer, Anfangsgruende (1805), I, 21, goes so far as to call the soul, raw material, which receives productive power from the labor of the teacher! For a calculation of the money value of man in the different ages of life, see Statis. Journ. XVI, 43 ff. See, on the other hand, Malthus, Definitions, ch. 7; and Rossi, in the Journal des Economistes, VI, 113. Nor does the view of Ganilh, Systemes d'Economie politique (1809), I, 243; of Ad. Mueller, Concordia, 93 ff., 211; of Hermann, "Staatswirth" Untersuchungen, No. 3; of Dunoyer, Liberte du Travail, L. VI; of Bastiat, Carey and others, who include pieces of land in themselves under the head of capital, seem to be better founded. Hermann defines capital the durable basis of every utility possessed of value in exchange. Schaeffle reckons land as nature offers it to us, among free goods. From the moment that labor and capital are spent upon it, it becomes immovable capital, but he concedes that it still preserves many essential points which distinguish it from other capital. (N. OEk. Theorie der ausschliessenden Absatzverhaeltnisse, 1867, 65 ff., 89 ff.) These differences appear to me to be still more important than that which land and capital have in common; especially as the historic development of their relations proceeds for the most part in opposite directions. Thus, for instance, as civilization advances, land is wont to become dearer and capital cheaper. How difficult would it be to introduce clearness into the ideas of intensive and extensive agriculture, if land were accounted capital! And it is not only always theoretically, but also very often, in practice, possible to separate the value of a given piece of land from the most durable capital-improvements (Kapitalmeliorationen) made on it. It is only necessary to call to mind the area of buildings.

Previous Part     1  2  3  4  5  6  7  8  9  10  11  12  13     Next Part
Home - Random Browse