270 Marx makes a very arbitrary assertion when he says that only the capital operating in trade, and even only that operating in trade where money is used as the instrument of exchange, can properly be called capital; and that, therefore, the modern biography of capital dates only from the 16th century, (Das Kapital I, 106 ff.)
271 See, on the other hand, Wolkoff, Lectures d'Economie politique rationelle, 167.
272 Hermann (II ed., 238 ff.) distinguishes especially preparatory contrivances auxiliary to labor, such as stationary structures etc., vessels, tools, machines and instruments for measuring etc.
273 Thus, for instance, the plow and the gun are machines, the spade and the blow-pipe are tools. A hammer may be considered as a hard, insensible fist; the bellows as a pair of very strong and durable lungs. Tongs take the place of fingers, just as a spoon does of the empty hand, and the knife the place of the teeth. A great number of machines, on the other hand, may be compared to a complete workman. Thus, the action of the mill which grinds grain has very little resemblance to the blowing of the wind or the running of the water, whereas the rising and falling of the pestle in the small mortar for throwing grenades corresponds to the motion of the arm. (Rau, Lehrbuch I, 125.) The infinite number of functions of which our members are capable is related to their inability to attain alone the greater number of their ends. Hence animals which require no tools can undertake to achieve very few things. "Man is a tool-making animal." (B. Franklin.)
274 This is seen most clearly in the history of the grinding of corn. In the time of Moses, and even of Homer, there were only hand-mills, and originally only mortars. Later, mills set in motion by horse-power were employed. Shortly after Cicero's time, mills driven by water-power came into use. Brunck, Analecta, II, 119, Ep. 39. Mills built on pontoons do not date farther back than the time of Belisarius. Wind-mills have been known since the ninth century; Dutch wind-mills, only since the middle of the 16th century. See Beckman, Beitraege zur Geschichte der Erfindungen II, I ff.
275 Compare Plato, Polit., 280.
276 Thus, Ganilh, Theorie de l'Economie politique I, 133, calls the knowledge, talents and probity of merchants, as well as their reputation, valuable parts of their capital in trade. See, also, Moeser, Patriot. Ph. II, 26. See some happy observations on the intellectual capital of nations, as consisting of "known and unknown preparatory labor through their history," in Lotze, Mikrokosomos II, 353 seq.
277 Compare Dietzel, System der Staatsanleihen (1856), 71 ff. And, earlier yet, Ad. Mueller had looked upon taxes not in the light of an insurance premium, but as "the interest of the invisible and yet absolutely necessary intellectual capital of the nation." (Elemente, III, 75.) Of course, the State is much more than a species of capital; just as a Gothic cathedral is something more than a piece of masonry, but does not on that account cease to be a piece of masonry.
278 J. B. Say, Traite d'Economie Politique I, ch. 10. Only think of what is known in physiology as the change or transformation of matter (Stoffwechsel!).
279 Productive capital has been rendered into German by the word Erwerbstamm, by the author of "Staatswirthschaft nach Naturgesetzen," 1819. Malthus, Definitions, ch. 10, and Rau, Lehrbuch, I, 51, call productive capital alone, capital. According to M. Chevalier, goods lose their quality of capital as soon as they come into the hands of a consumer. Schaeffle, N. OEk., II, aufl., 59, calls capital in use Genussvermoegen (resources intended for enjoyment) and productive capital, Kapitalvermoegen (capital-resources). On the other hand, J. B. Say, Traite, I, 13; McCulloch, Principles, II, 2, 3, Hermann, Staatswirthschaft. Untersuchungen, p. 60 ff., and v. Mangoldt, Volkswirthschaftslehre, 122, divide capital into capital in use and productive capital, according as it provides the possessor with that which he may turn to account directly or indirectly by becoming the owner of goods through its means. Aristotle distinguishes between ὄργανα and κτήματα, the former relating to ποίησις; for instance, a shuttle; the latter to πράξις, as, for instance, bedding and articles of dress. (Polit., I, 2, 5.)
280 Thus, for instance, class A embraces parks and forests; B, theaters, churches, manufactories, arsenals, granaries, public walks and roads. Walks can, besides, be used for the cultivation of fruit, and roads for pleasure trips.
281 Translated "capital de consommation" by Wolowski, p. 96 of his Roscher's Principles.—Translator's note.
282 Dead, or better, dormant capital is such productive capital as, for the time being, remains unused, and which, therefore, does not yield even personal enjoyment. The sum total of this kind of capital is very much diminished by the agency of savings banks. Loaned capital which has been employed unproductively evidently constitutes no longer a part of the wealth of a people. See infra, 189.
283 Wolkoff is so far right, when in his Lectures, p. 142, he calls the return of capital in use not revenu, but destruction graduelle. Schaeffle is right, too, and entirely so, when he says that only such an increase of the property, intended for enjoyment simply, is anti-economic, as does not make the personal capacities of labor (Arbeitsvermoegen) as much more productive than they would otherwise be. N. OEk., II, aufl., 224.
284 Humboldt, N. Espange, II, ch. 17; v. Schloezer, Anfangsgruende, II, 109. Ausland, 140, No. 313. On the extraordinary wealth of even Russian peasant women in pearls, see v. Haxthausen, Studien, 87, 309.
285 Townsend, Journey in Spain, I, 115, 310. In the patriarchal age of the Jews, there was a relatively very large quantity of ornamental objects in gold and silver: Michaelis, De Pretiis Rerum apud Hebraeos, in the Comm. Soc. Goetting., III, 151 ff., 160. Conservative Sparta, in the middle age of its history, was certainly not rich, and yet it had more gold and silver than any other Grecian state: Plato, Alcib., I, 123. According to St. John, The Hellenes, III, 142, the ancients had relatively much more of the precious metals in the form of objects for ornament than the moderns. The Romans, with their usual good sense, did not make use of silver as an article of luxury until they had attained great wealth. See Cato, R. R., ch. 23, and Seneca, De Vita beata, ch. 21. Then the Carthaginian ambassadors railed at their hosts because they found the same pieces of table silver in all the houses to which they were invited. The younger Scipio, even, did not possess more relatively than 32 pounds of silver ware. Mommsen, Roemische Geschichte, II, 383. The relatively great importance of the stores for domestic use, nevertheless, runs through the whole of Roman history. The title de penu legato, in the Pandects (Digest, XXIII, 9), points to this, during the reign of the emperors, and in earlier times, the derivation of penates from penu. See Rodbertus, in Hildebrand's Jahrbuch, 1870, I, 365. Immense importance of the ring in the old north countries: Weinhold, Altnord. Leben, 184 ff. The age of chivalry was very rich in silver plate, cups, basins, etc. Buesching, Ritterzeit und Ritterwesen, II, 137. Anderson, Origin of Commerce, a. 1386. Lord Burleigh, in the age of queen Elizabeth, left after him between fourteen and fifteen thousand pounds sterling in silver ware; that is almost as much as the rest of his whole estate; and, it would seem, that for a man of his rank, even this was not considered a great deal. Collins' Life of B., 44. According to Giustiniani, cardinal Wolsey owned articles of silver to the value of 1,500,000 ducats, and the greater number of the lords of the time were equally well provided with them.
286 The Bedouins are fond of decorating their wives and children with all the jewels that they possess, both on holidays and other days, so that they sometimes have four or six bracelets on each arm and fifteen ear-rings in each ear. Burckhardt, Bemerkungen, 188. Wellsted (Roederer's translation), I, 224. In Asia Minor, girls wear their whole dowry in the shape of personal ornaments. Belgiojoso, Revue des deux Mondes, Feb. 1, 1855. In East India even the most wretched towns have their silver workers. The emirs of Scinde, with an annual income of L300,000, had a treasure worth L20,000,000, nearly L7,000,000 of which were in jewels. Ritter, Erdkunde VII, p. 185. On the upper Ganges more jewels and other ornaments are worn than on the lower, where the wealthy prefer to spend their capital on landed estates. Ritter, VI, 1143.
287 The first beginnings of this division are to be found in Quesnay (Analyse du Tableau economique, 1758), in which he develops the difference between avances primitives and avances annuelles. See also Adam Smith, W. of N., II, ch. 1, who, however, reduces the difference between them mainly to the relations of possession, and hence includes grain and seed in fixed capital. Hermann, Staatsw. Untersuch., 269 ff.; Ricardo, Principles, ch. 1, sec. 2; Schmitt-henner, Staatswissenschaften, I, 387, divides capital into I, infungible, that is, 1, fixed in the strict sense of the word; 2, transportation-capital; II, fungible, 1, transformable capital; a, material (raw material, auxiliary material etc.), b, formed products; 2, circulating capital; a, wares; b, money. A. Walker, S. of W., 57, calls circulating capital that which may be easily transferred from one branch of production to another; fixed, that which can be used with advantage only for the purpose for which it was originally intended.
288 Old wood-work is burned; old iron utensils sold; also houses when pulled down. Emminghaus, Allg. Gewerbelehre, 1868, 175.
289 If the Mongols, for instance, should despoil China of all its moveable property with the exception of its buried money, its immovable property would become productive only from the time that that money would be used to secure other moveable articles. In any case, the production would be proportioned only to the borrowed seed, cattle, etc. (Sismondi, Richesses commerciale, 1803, I, p. 61.)
290 That the Athenians left everything in the lurch to oppose Xerxes, much more readily than under Pericles, even, the flat country of Attica. Buechsenschuetz (Besitz und Erwerb im griech. Alterthum, 589) explains by the fact that in the interval between the two periods, fixed capital increased largely. In rude ages under the appellation of a community or nation was understood a number of men; and the state, while its members remained, was accounted entire. With polished and mercantile states, the case is sometimes reverted. The nation is a territory cultivated and improved by its owners; destroy the possession even while the master remains, the state is undone. Ferguson, Hist. of civil Society, V, 4; v. Mangoldt, Volkswirthschaftslehre, 159. Fixed capital is not so sure of being completely used up as circulating. On this point see Schaeffle, N. OEk., 53.
291 If the aggregate productive activity of man be designated by the word labor (just as everything produced on a piece of land is inaccurately called its product), then all capital may be considered as the unconsumed result of labor. The recent socialistic theory that considers capital as the wages which have been earned but not paid, is a gross misconception of this truth. This is the origin only of the capital of oppressors and deceivers, and of theirs only in part. See infra, 189.
292 "While we are clothed in our winter garments, the spring stuffs are already in the shops of retail dealers; the light material of next summer's wear is already manufacturing, and the wool for our next winter's clothing spun." Think of the study in advance which the physician must have gone through, whom we summon to us at a moment's notice! Menger, Grundsaetze, I, 33. seq.
293 Thus in dangerous callings, as for instance, among soldiers and sailors, there is very little saving. The same may be said of times of plague. See J. Rae, New Principles on the Subject of Political Economy, 1834.
294 That we keep our property under lock and key, while it was customary in Plato's time to seal it up, is in itself a great advance. See Becker, Charicles, I, 202 seq. Earlier yet, artificial knots were used. Homer, Odyss. VII, 443.
295 Compare Hearne, Reise, nach Prinzwalesfort, 43, 58, 119. Barrow von Sprengel, 282. Humboldt, Relation historique, II, 245. Ausland, 1844, No. 359; 1845, No. 84. Stein-Wappueus, Handbuch der Geographie, I, 310. For proof that the clergy by preaching self denial contributed largely to the creation of capital in the earlier part of medieval history, see Guorard, Polyptiques d'Irminon Pref., 13.
296 On the inevitableness of slavery, where capital is needed, and no one cares to save, see de Metz Noblet, Phenomenes economiques, I, 306.
297 The origination of capital by "social connexions" (gesellschaftliche Zusammenhaenge) Lassalle (Bastiat-Schultze, 92, 98) exaggerates into the absurdity that no capital was ever saved. This is in part related to his confounding land with capital (103 seq.). On the other hand, P. L. (v. Lilienfeld), Gedanken ueber die Staatswissenschaft der Zukunft (1873), distinguishes between the external and internal creation of capital in human society; the latter based on the condition of every organic being, by virtue of which the present is generated by the past, and generates the future. The intercellular substance of plants, the honey-comb of bees, and the blood in the animal body, correspond to the capital of a nation.
298 Hermann, St. Untersuchungen, 289 ff.; List, System der politischen OEkonomie, I, 325 ff. Thus, for instance, capitalization among a race of hunters may be continued longest by the creation of herds; that of a race of shepherds by the building of houses, and by land-improvements; that of an agricultural people by the establishment of trades, artificial roads, etc. As to how, in general the accumulation of goods to any great extent, supposes exchange, and as to how, first of all, with exchange through the existence of a superabundance wealth may originate, see Hermann, loc. cit., II, Aufl., 25 ff.
299 The annual increase of the capital of France during the later years of Louis Philippe's reign, was estimated at from 200 to 300 million of francs; during the best years of Napoleon III's reign, at 600 million. Journal des Econ., Nov., 1861, 170. The capital of the British empire, judging from the statistics of the income tax, increased from 1843 to 1853, in Great Britain alone, at least L42,000,000 yearly; from 1854 to 1860, in the whole empire, at least L114,000,000; and in 1863 alone by L130,000,000. London Statis. Journal, 1864, 118 ff. A war carried on on English soil would doubtless be more destructive of capital than one waged in Russia; but Russia would recover from one like that of 1854-55 with much greater difficulty because of the small tendency of its people to amass capital. In countries in which the middle classes preponderate, the influence of the amassing of capital on foreign politics is one that favors peace. In despotic or democratic countries, it may as readily favor war.
300 The "absolute formation" of capital above described is, of course, the only one in the general economy of mankind. In the economy of individuals, we frequently meet with another which is only "relative," as when the increase of one's resources is attended by as great or even greater decrease of another's. This is the case, for instance, where privileges or monopolies are granted. The same phenomenon is found also in the intercourse of economies of different nations. Supra, 64.
301 Thus Cicero, De Off., II, 3, 4. Nature may indeed produce mere value in use without the cooeperation of labor, in the narrow sense of the word; as, for instance, a forest which protects a district from avalanches etc. But "everything which has been transformed into goods tends constantly to return to its natural state, and to withdraw itself from the life of goods." Stein, Lehrbuch.
302 Compare List, System der Polit. OEkon. But see also the very fine discussion of J. S. Mill, Principles, IV, ch. VI, 2, on the dreariness of nature, when taken exclusive possession of by man; "with every rood of land brought into cultivation which is capable of growing food for human beings; every flowery waste or natural pasture plowed up; all quadrupeds or birds which are not domesticated for man's use, exterminated as his rivals for food; every hedgerow or superfluous tree rooted out, and scarcely a place left where a wild shrub or flower could grow, without being eradicated as a weed, in the name of improved agriculture."
303 In Paris, in 1820, the necessary tools of a rag-gatherer cost 6-1/4 francs. Garnier, Elements d'Econ.-polit., 43.
304 It is not to be overlooked that all labor expended for a distant end also falls under the head of capital. See Droz, Economie politique, 1829, I, 6.
305 For a good exposition as to how England has need of more agricultural products, the East Indies of more capital, and the West Indies of more labor, see Fawcett, Manual of P. E., 110.
306 It is a very significant fact, that, at present, in certain European countries, in Germany for instance, the laborer is called a taker, and the capitalist a giver of work. The expressions employed by Canard, Say and Hermann, teach a similar lesson.
307 Schaeffle, Kapitalismus und Socialismus, 124 seq.
308 It is evident, that, absolutely considered, the predominating factor of an earlier period may continue to increase during the following: and, as a rule, it does continue to increase.
309 I need cite only the instance of the slaves, who called out the hours, thus performing the functions of a clock: Martial, VIII. 67; Juvenal, X. 216; Petron. 26; of the turning of water wheels, in Egypt and Babylon, by human hands. Strabo, XVI. 738, XVII., 807. Among the ancients, it required one shepherd, and shepherd boys besides, to take care of twenty sheep. (Geopon. XVIII, 1.) In highly cultivated regions, the number ran up to fifty. (Demosth., adv. Euerg. et Mnes., 1155.) It seldom passed eighty (Varro, De re rust., II. 10, 10. 2, 20), or one hundred (Cato, R.R. c. 10); while, recently, five men are sufficient to take care of eighteen hundred sheep. See Roscher's discourse on the relation of Political Economy to classical antiquity, in the reports of the Royal Saxon Science Association, May, 1849. Also D. Hume, Discourses, No. 10.
310 The productive power of each of the factors of production has been over-estimated by some schools. After Gratian (c. i, C. XIII. qu. i), had clearly recognized the necessary cooeperation of the three elements, there was in the one-sidedness with which the Reformers emphasized God's blessing as the only source of wealth, a great over-estimation of the factor nature. The Mercantile System over-estimated the factor capital, in one of its most obvious component parts, money. In later times again: "La terre est la source ou la matiere d'ou l'on tire la ichesse; le travail de l'homme est la forme qui la produit. Tous les hommes d'un etat subsistent et s'enrichissent aux depens des proprietaires des terres." (Cantillon, Sur la Nature du Commerce, 1755, I. 33, 55.) La terre est l'unique source des richesses. (Quesnay, Maximes generales de Gouvernement, 1758, ch. 3.) In another place, indeed, the same writer says: les revenus sont le produit des terres et des hommes (Grains, p. 276, Daire), and Mirabeau frequently laid stress on the necessary cooeperation of labor and capital. (Landwirthschaftsphilosophie, translation by Wichmann, I, 5.) Turgot, Sur la Formation et Distribution des Richesses, 7. For an excellent refutation of this "Physiocratic" one-sidedness, which, if all men are endowed by nature with equal rights, leads to socialism, see Canard, Principes, 6. According to Gioja, N. Prospetto, I. 35, the part played by labor, in the production of Parmesan cheese, is a thousand times as great as that played by the soil; and in the production of a Dutch tulip, a hundred thousand times as great. The English are wont, similarly, to over-estimate the relative power of labor. (Ponocratie, after Ancillon, Essais philosophiques, 1817, II. 327.) "Commerce and trade first spring from the labour of men." (North, Discourses upon Trade, 112.) Thus, Locke (1690), Of Civil Government, II, 5, 40 ff., is of opinion, that, at least 9/10 of the value of the products of the soil, useful to man, are to be ascribed to labor, and, in the case of most, even 99/100. And so, Berkeley (1735), Querist, No. 38 seq. This view is advocated in its boldest form,—a thing unusual in the case of the independent disciples of a great master—by McCulloch, Principles, II, ch. i, that it is to labor, and to labor alone, that man owes everything that possesses any value in exchange. Similarly, J. Mill, Elements (1824), III, 2. The consequences which socialism might draw from these premises are self-evident. Karl Marx's whole system, for instance, rests, without any attempt at demonstration, on the assumption that the Ricardo school is right. Much more moderate views are met with earlier. Thus, Hobbes, De Cive, XIII, 14, and Leviath., 24 (1642 and 1651), calls labor et parsimonia necessary sources of wealth; proventus terrae et aquae useful ones; and Petty, On Taxes (1679), 47, says: "Labour is the father and active principle of wealth, as lands are the mother. Land and labour together are the sources of all wealth; without a competency of lands there would be no subsistence, and but a very poor one without labour." Harris, Upon Money and Coins, 1757, P.I. Adam Smith, also, in spite of the well known passage at the beginning of his work, very frequently lays stress on "the annual produce of land and labour." (See the passages collected in Leser, Begriff des Reichthums bei A.S., 97.) According to Leibniz, regionis potentia consistit in terra, rebus, hominibus. (ed. Dutens, IV. 2, 531.) Ricardo's school is wont to bring capital under the head of labor, as saved-up labor. This is about as correct as to say, that all that a grown man does, his parents had done. (Umpfenbach, Nat. OEk., 64.) There is only one way in which labor, and even then the expression is not exactly correct, can be looked upon as the only factor in production; and that is to presuppose the forces of nature as matters of course (als sich von selbst verstehend), and to call the aggregate use made of them by the human mind, labor. Or we might say with old Epicharmos, that the gods sell all goods for labor. (Xenoph., Memor. II. 1.) Moreover, even in purely intellectual productions, in poetical productions for instance, nature, labor and experience, the culture inherited from former ages (a kind of intellectual capital) uniformly cooeperate. But how almost completely valueless in literature are all entirely pure (empty!) productions of the fancy!
311 Before the predominance of the Mercantile System, Montchretien very cleverly called all trades: parcelles et fragments de cette sagesse divine que Dieu nous communique par le moyen de la raisen. By means of the three estates; labourers, artisans, merchands, tout etat est nourri; par eux tout profit se fait. L'utilite regle les rangs des arts. (Traite, 12, 45, 66.) The teaching of P. Gregorius Tolosanos (ob. 1597) on the different classes of society and the different callings of men, is still more in keeping with the present doctrine of production; only, in the moralizing tone of the time, he speaks rather of their dignity than of their influence in creating wealth: De Rep. I, 195. See, also, the earlier views of Franc. Patricius (ob. 1494), De Rep. I, 4, 7, 8.
312 Compare A. Serra, Breve Trattato delle Cause che possono far abbondare i Regni d'Oro d'Argento, 1613. Th. Mun, England's Treasure by foreign Trade, 1664. Ch. King, British Merchant or Commerce Preserved, 1721. But, particularly, A.C. Leib, Von Verbesserung Land und Leuten etc. (1708), who, from the point of view of the Mercantile System, draws a very clear distinction between the productive and unproductive classes. See, also, infra, 116. First thoroughly refuted by W. Petty, Political Anatomy of Ireland, 67, 82. Quantulumcunque concerning Money (1682). D. North, Discourses upon trade (1691). See Roscher's Geschichte der englischen Volkswirthschaftslehre, 77, 88, 138. And later, especially, Ad. Smith, W. of N. IV., ch. 1 ff. Adam Smith's doctrine of productive and unproductive labor is to be found already, in this period, in Petty, Several Essays, 127 ff. Political Anatomy, 185 ff; also, in the anonymous work, A Discourse of Trade, Coyn and Paper Credit, London (1697), 44, 159.
313 Quesnay, Dialogue sur les Travaux des Artisans, 210 ff.; 289 ed. Daire; Turgot, Sur la Formation etc., 8; Dupont, Correspondence avec J.B. Say, 400, ed. Daire. B. Franklin, Letter to Dr. Evans (1768), and Positions Concerning National Wealth (1769), Works ed. Sparks, VII and II. Similarly even Aristotle, Oec., I, 2, says, that commerce, wage-labor and war win from men, with or without their will; but that only agriculture obtains booty from nature. And so Cicero says of merchants: nihil proficiunt, nisi admodum mentiantur. De Off., I, 42. The same view seems to have prevailed during the middle ages. See Thom. Aquin., De Rebus publicis, II, 3, 5 seq. Luther entertained a like notion (Vom Kaufhandel und Wucher, 1524). He prefers agriculture to the trades. See the Irmischer edition of his works, XXII, 284; XXXVI, 172; LXI, 352. Calvin considered commerce both useful and honorable; so that ex ipsius mercatoris diligentia atque industria, its profit may be greater than that of agriculture. (Opp. ed. Amstelod, 1664, IX, 223.) Asgill, Several Assertions proved in order to create another Species of Money than Gold (1691): "what we call commodities is nothing but land severed from the soil; man deals in nothing but earth." Concerning Cantillon, compare 47, note 4. How violent an innovation the Physiocratic theory was in its time may be inferred from what Zincke writes in the Leipzig Sammlungen, X, 551 ff. (1753), p. 20, XIII, 861.
314 Quesnay, l. c., 189, does not ignore that many workmen earn more than the cost of their necessary subsistence; but he claimed that this was a result of a natural or legal monopoly of the same. The dearer labor was, the more productive it seemed. Per contra, see Dohm on the Physiocratic system, in the Deutsch. Museum, 1778, II, 313 ff.
315 Gournay (compare Turgot, Eloge de G., in Guillaumin's edition, I, 266, 271 ff.), as well as Raynal, Histoire des Indes, vol. X, Livre 19, spite of the similarity of their and Quesnay's views, acknowledged on this account, the productiveness of industry. For some remarkable examples illustrative of how it may increase the value in exchange of raw material, see the anonymous work, Paying Old Debts without New Taxes, London, 1723. See also Algarotti (ob. 1794), 318, in Custodi, Economisti classici italiani, Parte moderna, I. Thus a cwt. of coarse cast iron is converted, in a Berlin manufactory, into 88,440 shirt buttons worth 6-⅔ silver groschens each. Hence the value is raised from 1-2 thalers to 19,653 thalers. The increase of the value in use by industrial labor is self-evident.
316 Quesnay, Dialogue sur le Commerce.
317 Recognized very early by Ad. Contzen, Politicorum, Lib. VIII, C. 10 (1629).
318 This did not escape the notice of Frederick II. Von Raumer, Hohenstaufen, III, 535.
319 Condillac acknowledges the productive power both of industry and of commerce; and that the service rendered by the state is at least economically indispensable. (Le Commerce et le Gouvernment, 1776, I, 6, 7, 10.) Beccaria, Economia pubblica (1769 ff.), IV, 4, 24. Boisguillebert (ob. 1714), Sur la Nature des Richesses, illustrated the utility of commerce by the picture of a number of men bound to pillars, one hundred steps apart, one with a superabundance of food but naked, a second with a superabundance of fuel, a third with a superabundance of clothing etc.; all of whom perish, because unable to exchange their respective surpluses with one another. According to Lotz, Revision, I, 217, "buying dear," apart from real fraud, means only a decrease of possible gain.
320 Verri, Meditazioni, XXIV, instead of calling the merchant productive, calls him a mediator between producers and consumers. It would be just as reasonable to call the shoemaker a mediator between the production and consumption of leather; or the cloth merchant, who cuts the material from the piece, an assistant preparatory to the tailor. The labor of commerce is especially like that of the fisherman or the turf digger, because they produce only in so far as they transfer goods from inaccessible to accessible places. See, however, Rau, Lehrbuch, I, 103. See the demonstration of the productive power of commerce in general, as well as of what is, by way of preference, called industry, in Ad. Smith, W. of N., IV, ch. 9. A much more fundamental refutation of the Physiocratic Principle is to be found in Jacob, N. OEk., 204 ff.
321 In 1843, about 55,000 tons of ice were shipped from Boston. Less than 25 cents per ton was paid for the ice in the first instance. When packed on board ship, it was worth $2.55 per ton. The ultimate sale brought $3,575,000. Ausland, 1844, No. 278. The ancients were acquainted with a similar production of ice, the value in exchange of which might be almost entirely reduced to the labor of commerce. See Xenoph., Memor., II, I, 30; Athen. III 97: Proverbs of Solomon, 25, 13.
322 W. of N., ch. 3. See, however, Garnier's French translation of Ad. Smith, Pref. p. IX and V, note 20. Similarly, Malthus, Principles, ch. 1, Lect. 21. Definitions, ch. 7, 10.
323 Bacon had already said of the nobility, clergy and literateurs: sorti reipublicae nihil addunt (Serm., 15, 29); in opposition to which, Hobbes justly remarks, that even human labor may, like other things, be exchanged against goods of all sorts. (Leviathan, 24.) In the work, Discourse of Trade, Coyn and Credit, p. 44 ff., and p. 156, the absolute necessity of "head-work" as well as bodily labor, is conceded; but it is insisted that physicians, clergymen and jurists can never enrich a country, and that a relatively large number of them would even conduce to national poverty. (See Roscher, Geschichte der englischen Volkswirthschaftslehre, 138.) David Hume considers merchants as productive, but says that a doctor or lawyer can grow rich only at the expense of some one else. (Discourses, No. 4, On Interest.) Ferguson very cleverly compares such a valuation of national wealth to that of a miser. Hist. of Civil Society, VI, I.
324 Similarly Lauderdale, Inquiry, 355; Lotz, Handbuch der Staaetswirthschaft, I, 39, and Rau, Lehrbuch I, 195, concede only indirect productiveness to commerce. It may be shown, in a great many instances, that such productiveness exists side by side with direct productiveness, on account of the thousand ways in which all economic threads are interwoven with one another. Thus Paley remarks in his work on the Principles of Morals and Politics, that a tobacco manufacturer even may contribute indirectly to the cultivation of grain; an actor, to industry etc.
325 Thus Sismondi, Nouveaux Principes, II, ch. 1, and, earlier, Mengotti Colbertismo, 317. (Cust.) See, on the other hand, Hermann, Staatsw. Untersuchungen, 34 ff. Even J.B. Say does no manner of justice, in this respect, to personal services. He speaks of produits qui ne s'attachent a rien qui s'evanouissent a mesure qu'ils naissent, qu'il est impossible d'accumuler, qui n'ajoutent rein a la richesse nationale. Compare Catechisme (3d ed.) 52 ff., 174 ff. On the other hand Dunoyer, Liberte du Travail, L.V., remarks that here labor and its result are made to change places; the former like all labor is very perishable, the latter as lasting as in the case of other kinds of labor. In the one case the utility is fixed in things, in the other in persons. Ad. Mueller, Elemente der Staatskunst passim, calls special attention to how the kinds of labor, called unproductive by Adam Smith, preserve the state, and in that way, all individual exchangeable goods. Similarly, Storch, Handbuch, I, 347; Steinlein, Handbuch, I, 460. Lauderdale (443), however, is correct when he says, that the continued duration of the product of labor depends, usually, more on the caprice of consumers than on the nature of the labor.
326 Garnier calls attention to the fact, that there is a great quantity of material products, such as laces, perfumes etc., that can scarcely be ever used in further production, and, generally speaking, one's resources for the most part are not kept in lasting goods, but are preserved by the change of technic forms in production. Hermann, I, Aufl., 115.
327 When Schoen, Nat. OEkonomie, 33, ridicules the idea of the productiveness of personal services, by citing the instance of prostitution carried on as a trade, he forgets that many material goods also may conduce to the moral damage of the purchaser of them. It is said that there are in France 3,500 retailers and colporteurs of immoral writings and pictures, who sell yearly nine million numbers or pieces, at a cost of six million francs! (Moniteur, 9 Avril, 1853.)
328 Compare Schaeffle, Theorie der ausschliessenden Absatzverhaeltnise, 1867, 135. seq.
329 Many of the socialists take a retrograde step in this respect, in as much as they consider only manual labor productive. Fourier's school particularly, declaim passionately against the unproductiveness of commerce and of most personal services. Compare V. Considerant, Destinee sociale, 1851, I, 44.
330 Besides the above, see Gioja, N. Prospetto, I, 246 ff.; Scialoja, 42; J. B. Say, Traite, I, ch. 2; Hufeland, N. Grundlegung, I, 42, 54; Gr. Soden, Nat. OEkonomie, I, 142 ff. Hermann, St. Untersuchungen, 20 ff., distinguishes three politico-economical points of view; that of the producer, that of the consumer, and that of the whole nation's economy. The producer calls his labor productive, in case he receives back his outlay of capital with the rate of profit usual in the trade of the country. To this point of view, therefore, every service which is paid for, according to wish, seems productive. On the other hand, the consumer ascribes productiveness to all those kinds of labor the achievements of which he may use, and which he can obtain at a convenient price. Whenever, therefore, he pays for a service voluntarily, he acknowledges its productiveness. Lastly, from a national-economical point of view, all labor is considered productive which increases the quantity of goods exposed for sale in the market; and this, personal services do. The technic productiveness, which depends on the execution of the technic ideas floating before the mind of the workman, must be distinguished from this economic productiveness. It is possible that, technically labor may be very productive, and yet cause economic loss; for instance, the fine arts and the so-called master pieces of the trades! See Seneca, De Benef., II, 33. H. (33) furnishes a very good refutation of the doctrine that a great deal depends on whether the labor has been paid from capital or from income. Eiselen, Volkswirthschaft (1843), 27 ff., remarks, that the laborer, for instance, who grows corn, must besides look after his health and the preservation of his house; this is a part of his necessary aggregate labor. Why, then, should it be called unproductive when such secondary labor is performed by particular persons? Otherwise the farmer would have no time whatever for his principal business! Edinburgh Review, 1804, IV, 343 ff.; Wakefield, An Essay upon Political Economy, 1804, who is concerned mainly with the theory of the productiveness of labor. L. Lauderdale says, that when the nation's wealth is estimated according to its value in use, all useful labor is productive; and that when estimated according to its value in exchange, all labor that is paid is productive. (Inquiry, ch. 3.) Stein (Lehrbuch, 68; Tueb. Zeitschr., 1868, 230) conditions the notion of productiveness by the presence of a superfluity of values. But, it may be asked, does a family, which does no more than support itself, labor unproductively? (Compare, however, 30.) J. S. Mill took a surprisingly retrograde step in the doctrine on this point, in his Principles, I, ch. 3. Compare his Essays on some unsettled Questions of Political Economy, No. 3. A still more surprising exaggeration in de Augustinis Instituzzioni di Economia sociale (Napoli 1837), who goes so far as to call a person guilty of arson a productive person because he has produced for himself "the pleasure of destruction"! More recently, von Mangoldt distinguishes between economic labor and the labor of culture: the latter is incorporated into the man himself, the former one employed on the external world, in order to transform it in a way corresponding to human wants. Viewed from the stand-point of Political Economy, the latter only is productive. (Volkswirthschaftslehre, 1865, 26 ff.)
331 We might, indeed, compare original production, that which preceded all other, to eating; the trades, to digestion; commerce, to the movements of the several members of the body; personal services to inspiration, and yet all are equally necessary to the life of the body! Thus, Gamilh compares agriculture to the root of a tree of which the service rendered by the state is the top. The growth of the latter contributes, as well as that of the former, to the nutrition of the whole, and is far removed from exhausting the tree. Theorie de l' E.P., II, 46 ff. "Natural production" would, indeed, accomplish very little without the legal protection guaranteed by the state, or without the tools furnished by industry etc. But it is, besides, in most instances, a distortion of the truth to speak of productive and unproductive men or classes of men. These expressions are proper only when applied to individual kinds of labor. See Murhard, Ideen ueber Nat. OEk., 88 ff. Persons seriously ill are temporarily unproductive, and children who die early, are unproductive for their whole life.
332 Not, however, in the case in which the loser estimates the pleasure of the play higher than the loss.
333 J. B. Say, Traite, I. ch. 1.
334 v. Cancrin, OEkonomie der menschlichen Gesellschaften, 1845, 10, speaks, in this case, of privative production. Among the Socialists, Bazard's expression l'exploitation de l'homme par l'homme, has found loud echo; instead of which only l'exploitation du globe par l'homme should be allowed to obtain. (Exposition de la Doctrine de St. Simon, 24.) But von Schroeder had already warned the world of "imagined food" which led only to idleness. (F. Schatz- und Rentkammer, 191, 363.)
335 Therefore, there should not be too many nor too highly salaried offices. See Storch, Nationaleinkommen, 33 ff.
336 See v. Mangoldt, Volkswirthschaftslehre, 29 ff.
337 Remained, and not become, poor, as is generally supposed; for the enormous wealth of Spain, under Ferdinand and Isabella, as well as during the early period of Charles V. is only a fable convenue. Charles V. said: France has a superabundance of everything, and Spain is in want of everything. See also the embassy report of Navagero (1526), Viaggio fatto in Spagna e in Francia (Venet., 1563), and Ranke, Fuersten und Volker, I, 393 ff.
338 The prize was won by Arreta de Monteseguro. The author of the history of Portuguese Asia, translated by Stevens, is of opinion (III, ch. 6), that commerce is not a proper subject for serious history to treat.
339 There is a very fine description of this spirit in Clenard, Epist. I. ad Latomum (1535 ff.) Compare Juvellanos, in Laborde, Itineraire descriptif, IV, 176. Townsend, Journey through Spain, II, 207, 117. Buckle, History of Civilization, II, ch. I. The census of 1788 gave the number of priests and monks, soldiers, mariners, nobles, lawyers, tax-gatherers, authors, students and domestics, at 1,221,000, in a total of 3,800,000 men; from which number there was a multitude of beggars, vagrants etc. to be deducted. Laborde, Itineraire, II, 32 ff. The seventeen universities and the numberless small Latin schools, with their gratuitous instruction, and their many scholarships, misled a disproportionately large number to engage in study. At the beginning of this century, there were at least 200,000 priests, nuns (Geistliche), etc., in a population of from three to three and a half millions only. (Ebeling, Erdbeschreibung von Portugal, 66.) Senior shows that the poverty of the Osman is caused by too many state employees, tax-farmers and retail merchants. (Journal kept in Turkey and Greece, 1857-58.) Thus, also, J. Tucker, Four Tracts, 1774, 18, contrasts men engaged in industry with rich idlers, whose increase, possibly by immigration, would make the people a nation of "gentlemen and ladies, footmen, grooms, laundresses etc." Schmitthener, N. OEk., 656, calls a condition such as that of Spain, "national-economical phthisis."
340 Tucker, Progress of the U.S., 137. The following data also will serve for a comparison: In Belgium, in 1856, it was estimated that, leaving persons sans profession out of consideration, 45.6 per cent. were agriculturists, 37.2 industrials, 6.7 in commerce, 2.8 in the liberal professions, 1.5 force publique, 2.1 proprietaires, rentiers, pensionnes, 3.7 domesticite. In Prussia, in 1871, of the entire male population, 28.6 per cent. were engaged in agriculture, forest-culture, hunting and fishing: 32.3 per cent. in mining, industry, building, and in founderies: 8.56 in trade and commerce; 20.3 in personal services and handiwork not belonging to any of the groups above mentioned; 2.3 in the army and navy; 3.7 in other callings; 2.7 were renters, pensioners, and persons who lived by selling or renting houses, reserving lodgings for themselves therein, and persons who gave no account of their calling. (Preuss. statisc. Zeitschr., 1875, 32. ff.) It is, however, surprising that Engel's Amtl. Jahrbuch, III, 1867, gives only 48 per cent. as belonging to the first category, and 25 to the second. In the kingdom of Saxony in 1861, 25.1 per cent. of the population were agriculturists and foresters; 56.1 were engaged in industry; 7.7 in trade and commerce; 6.8 in art, science, the service of the state and of private persons; while 4.1 per cent were without any particular calling, or returned none. Bavaria, in 1852, had 67.9 per cent. of its population engaged in agriculture; 22.7 in the trades and in manufactures; 5.5 per cent., persons living on the interest of their money, and by performing the higher class of personal services; 1.9 in the army; and 2 per cent. of listed poor. In Hermann, Beitraege zur Statistik des Koenigreichs Bayern. In France, according to the official reports, there were:
Agriculteurs 61.46 per cent. in 1851, 51.49 per cent. in 1866; Industriels et commercants 25.95 per cent. in 1851, 32.78 per cent. in 1866; Professions liberales 9.73 per cent. in 1851, 9.48 per cent. in 1866.
To which it must be added, that, in 1851, there were 2.86 sans profession ou dont les professions n'ont pu etre constatees; and that, in 1866, on the other hand, there were 2.87 per cent. in professions se rattachant a l'agriculture, industrie et commerce. (Legoyt.) In England and Wales, leaving the domestic class out of consideration (women without an independent means of employment, school children, servant girls etc.), and also the "indefinite class," there were, in 1861, 25.3 per cent. of the population engaged in agricultural pursuits; 60.7 in industrial; 7.8 in commercial; and 6.06 in professional pursuits. In Italy, omitting housewives, children and infirm persons, there were, in 1862, 57.4 per cent. of the population engaged in agriculture; 22.9 in industrial pursuits; 4 in commerce; and 3.9 per cent. in the army and in the liberal professions. (Annali univ. di Statistica, Febbr., 1866.) On Holland, in the middle of the 17th century, see J. de Wit, Memoires, 34 seq.
341 Csaplovics, Gemaelde von Ungarn II, 1. Torrens, The Budget: On commercial and colonial Policy, 106 ff.
342 Precisely as there are more people ruined by spirituous liquors than by bread. Time thieving is also more frequent among servants. There is scarcely anything in agriculture analogous to the lazzaroni who wait all day to help a gondola to land, to unload a coach, etc. There is more in the chase, in the fisheries, or in the cattle raising.
343 Compare Bastiat, Harmonies economiques, ch. 17. Hence Sismondi accounts it one of the chief merits of the constitutional state, that in it, the population gardienne does not regulate its own remuneration. (N.P., I, 144.) Saint Simon, indeed, says that the French members of the Chambre, in his time, drew a revenue from the state, three times as large as from their own resources, and were, therefore, deeply interested in increasing the budget. (Vues sur la Propriete et la Legislation, 1818.) I would call attention also to the national over-estimation and over-crowding of learned callings from which Germany suffered, even as far back as the time of Louis XIV. (v. Schroeder, Fuerstl. Schatz-und Rentkammer, 302 ff.); to the disproportionate number of keepers of public houses, which is related to the system of popular assemblies, and is a regular attendant upon Democracy (Bronner, Der C. Aargau, I, 451.) Taxation-legislation may here become a good means of popular education.
344 This was recognized very early by Gregor. Tolsan, l.c. Ad. Mueller, Elemente, II, 255. Storch, Handbuch, II, 229 ff. (Schleiermacher, Christ. Sitte, 668.) A. Smith, W. of N., II, ch. 5, ascribed greater productiveness to agricultural than to industrial labor; in the former case, not only human labor was put in operation, but the forces of nature were compelled to cooeperate with them. Similarly, Malthus, Additions (1817) to the Essay on the Principle of Population, B. III, ch. 8-12. Principles of P. E., 217 ff. Both thus explain the rent of land, and so far as products, which have only value in exchange are concerned, they are right. Hence it is all the more surprising that Carey, the zealous advocate of a protective tariff and opponent of rent, comes back in this to Adam Smith. Principles of Social Science, 1858, II, 35, and passim. Compare also J. B. Say, Traite, II, ch. 8; Sismondi, N. P., II, ch. 5. For the best refutation of this view, see Ricardo, Principles, ch. 2, 3. Does not all labor put the force of nature in operation? Ad opera nihil aliud potest homo, quam ut corpora naturalia admoveat, reliqua natura intus transigit. (Bacon.) Similarly, Verri, Meditazioni, III, 1. An expression escapes even Ricardo himself (ch. 7), to the effect, that capitalists are the producing class.
345 Relying on very superficial statistics of England and France, Ganilh advocates a theory of the productive forces of the several branches of economy the very reverse of Adam Smith's. He places foreign trade first; then follow wholesale trade, industry and agriculture. (Theorie, I, 240 seq.)
346 Ausland, 1846, No. 54. Expressions still used in Europe, such as Spindelmagen (spindle-relation), Kunkellehen (apron-string-hold) etc., for instance, suggest this most ancient and purely family division of labor. The lower classes of the population, even in the most civilized countries, are wont to preserve some of the peculiar customs of very primitive times. Hence it is that among proletarians, the division of labor between males and females is still very small. The employments usual at different stages of life among men, and the costumes worn by them are much more uniform than among the higher classes. See Riehl, Die Familie, 1855, passim.
347 As Dankwardt shows, the jus civile of the earliest Roman time is based on the condition of isolated labor, the later jus gentium, on the division of labor. N. OEk. und Jurisprudenz, 1857, Heft. I.
348 Saxo Gramm., Hist. Dan. V, 101. Turner, Hist. of the A. Saxons B. VII, ch. 11. Nibel., 351 ff. There is a French proverb: du temps que la reine Berthe filait. Queen Bertha was a mythic daughter of Charlemagne. It may be that the character meant is the old German spinning goddess Berchta. Concerning the daughter of Otto the Great, see Dithmar, Merseb. II. Homer, Od. V, 31 ff.; X, 106; XXIII, 189 ff. Herodot., VIII, 137. Livy, I. 57.
349 Eden, State of the Poor I, 558 ff. In the interior of Peru, the priest is also usually a shop-keeper (Poeppig, Reise, II, 365); in Canada, as in many of the villages of the Alps which are not often visited, a hotel keeper. In countries with an unadvanced civilization, the little division of labor that exists is also very awkwardly regulated. Thus in Russia, weak children are very frequently put to work on farms, while powerful men are found in the city offering all kinds of eatables and the pictures of saints for sale. (Storch, Gemaelde des russischen Reichs II, 364. v. Haxthausen, Studien I, 335.)
350 Babbage, Economy of Machinery, 1833, 201. L. Faucher, Angleterre II, Ch. "la Ville des Serruriers." The industrial statistics of Paris, furnished by H. Say in 1847 and 1848, show that in that city alone there are 325 different branches of industry, 17 of which are concerned with the production of food; 21 with building; 32 with the manufacture of furniture; 21 with that of clothing; 36 with that of thread and tissues; 7 with skins and leathers; 14 with vehicles, saddlery, and military equipment; 33 with chemicals and pottery; 33 with working in metal, glass etc.; 35 in that of the precious metals and jewels; 27 with printing, engraving and paper; 15 with that of wooden-ware and wicker-ware; 34 with articles de Paris. Journal des Economistes, Janv., 1853, 107. According to the industrial almanac of Birmingham, there are in that city manufacturers of buttons in gold, silver, metal, mother-of-pearl etc.; manufacturers of hammers, ink-stands, coffin-nails, dog-collars, tooth-picks, stirrups, fish-hooks, spurs, pack-needles etc.
351 And so with the subdivisions. Flannel is manufactured almost exclusively in Halifax, woolen blankets between Leeds and Huddersfield etc.
352 The same division of labor was developed among the Dutch in the 17th century, and excited then the wonder of the English. See Sir W. Temple, Observations upon the U. Provinces, 1672, ch. 3. Works, I, 128, 143. In 1615, Montchretien held up the Flemish as a model to the French, in this respect.
353 On the bees, see Virgil, Georg. IV, 158.
354 The principle of the division of labor was known to the ancients: Xenophon, Cyri Discipl., VIII, 2, 5. Plato, de Rep., II, 369, III, 394, IV, 443; Isocrat., Busir., 8. Aristot., Polit., II, 8, 8. Among the more modern writers, compare Thomas Aquin., De Reg. pr., I, 1, II, 3. Luther (Works by Walch, I, 388), in his Commentary on Genesis, 3, 19. Petty, Several Essays, 1682, p. 113. Considerations upon the East India Trade, London, 1701. Roscher, Geschichte der englischen Volkswirthschaftslehre, 118. Mandeville, The Fable of the Bees, enlarged edition of 1723, p. 411. Berkeley, Querist, 1735, No. 415, 430, 520 ff., 586: "What is everybody's business is nobody's." Harris, on Money and Coins (1757), I, 16. J. J. Rousseau, Emile (1762), L. III. Turgot, Sur la Formation et la Distribution des Richesses, 3, p. 50, 62, 66. Diderot, Encyclopedie de l'Art, s. v. Art. J. Tucker, Four Tracts (1774), p. 25 ff. Boccaria, Economia pubblica, I, 1, 9. But the author to whom we owe most on this score is undoubtedly Adam Smith. To him we are indebted almost entirely for our knowledge of the natural laws developed in 59 seq.
355 According to Adam Smith, a nailer can make 2,300 nails (Rau says 3,000 shoemaker's tacks in the Odenwalde) per day; a smith who is only occasionally employed in the manufacture, from 800 to 1,000; and smiths who never made nails before, from 200 to 300. A clever filer makes 200 strokes in a minute; a skilled comb-maker can make in a day from 60 to 70 combs of such fineness that there are from 40 to 48 teeth to the inch in them; eight Liege brick-makers, working together, produce 4,800 bricks per day; children employed in a needle manufactory, in making the eyes of needles, grow so skillful at it that they can make a small hole in the finest hair and draw another hair through it. Rau, Lehrbuch I, 115. The old proverb, "practice makes perfect," is followed even by thieves in their great division of labor. See Thiele, Die juedischen Gauner I, 87. Fregier, Des Classes Dangereuses.
356 Children, with their thinner fingers, can point twice as many needles in the same time as a grown person.
357 The manufacture of English needles demands, on the part of workmen, degrees of skill so different that their pay varies from 6 pence to 20 shillings per day. If the most skillful workman were to manufacture whole needles alone, he would partly be obliged to be satisfied with one-fortieth of what he might otherwise receive. Babbage, loc. cit.
358 In the case of machines and in the chemical branches of industry, the labor increases in a much smaller ratio than the material used in production.
359 In opposition to monopolies, and to practical constraint which has its source in ignorance etc.
360 Hence Torrens calls foreign trade the "territorial division of labour." (Essay on the Production of Wealth (1821), 155 ff.)
361 See Bastiat, Harmonies, ch. 1, for a very beautiful exposition of the doctrine that each man receives much more from society than he accomplishes on his part, for it.
362 The working together of a great number of persons is often carried on to the detriment of agriculture, for each then waits for all the others to work, throws all the blame on them etc. (Columella, I, 9.) As many a housekeeper must have observed, two seamstresses or ironers accomplish, in a day, less than one, in two days. Of course, this rule does not apply in the case of work which cannot be performed by one man, under any circumstances, or the magnitude of which would easily discourage him, and in which mutual aid is easily obtained; as in the raising of heavy loads, the construction of roads, dikes etc.
363 Ad. Smith, B., II, Introd. Hufeland, Neue Grundlegung, I, 215. In many instances, a division of labor, of course, favors the saving of capital. If every workman needed all the tools necessary to the work in which he participates, three-fourths of them would have to lie idle at present. J. Rae, New Principles on the Subject of Political Economy, 164.
364 This necessity is observable, although in a peculiar form, even where what has been called the "despotic organization of labor" prevails, instead of freedom.
365 In the highlands of Scotland, in Adam Smith's time, there were no smiths who manufactured nails only; for the reason that no smith had a market for more than 1,000 nails a year, that is not for so many as might be manufactured in a single day.
366 It is of course very different when there is question of a foreign market, even if it be only indirectly. Thus, for instance, there are in the Hartz mountains, persons who are simply post-makers, trough-makers, chess-wood-makers, block-hewers, shingle-makers etc.
367 Too much should not be inferred from the existence among the Egyptians of physicians, specialists for the several members of the body. Herodot., II, 84. Something analogous is to be found even among barbarous nations; but it is accounted for entirely by the superstition of the people. See Klemm, Kulturgeschichte, I, 266.
368 In the whole of Hesse, there were under Philip the Magnanimous, only two apothecaries, one at Cassel and one at Marburg. Rommel, Gesch. v. Hessen, IV, p. 419, note. And there were no bakers among the Romans before the time of the war with Perseus. All the bread needed by the family was baked by the wife or by female domestics. Plin., H. N. XVIII, 28. The common oven in new towns marks the period of transition. Even yet, in the central part of France, there are localities where each family bakes its own bread for a whole month in advance; and, in the Alpine departments for even a year in advance. M. Chevalier, Cours II, 366.
369 It is obvious from the foregoing that, in decaying nations, in which the market contracts and capital decreases, the division of labor also must grow less.
370 According to Arago, a horse uses the same amount of force to draw 20 cwt. along an ordinary road that he does to draw 200 over a railroad track, or 1,200 on a canal. He could carry scarcely 2 or 3 on his back! Moniteur, 1838, No. 116. It is, however, certain that the introduction of our railroads has somewhat detracted from the advantages of coasts.
371 Compare Humboldt, Essai politique sur l'Ile de Cuba, II, 205.
372 Strabo, II, 121 ff. In Europe, there is one mile of coast to every 31 square miles in the interior; in North America, to 56; in South America, 91; in Asia, 100; in Africa, 142. (Humboldt.)
373 If the original connection of the Caspian sea and the sea of Aral with the Frozen Ocean were still in existence, it is probable that an Asiatic Scandinavia would have been formed in consequence.
374 What is true of the sea in this respect may be claimed, also, though in a less degree, for the streams that carry the civilizing fruits of the coasts far into the interior. Nearly all large cities not situated on the harbors of coasts derive their importance from rivers; especially when they have been built on spots adapted by nature to the transhipment of merchandise. That Venice finally eclipsed Genoa is to be ascribed, in greatest part, to its control of an important stream, the Po. The economic importance of Holland, of Hamburg and Bremen will, in the long run, bear the same relation to one another as the geographical importance of the valleys of the Rhine, Elbe and Weser. As nothing is more disastrous to a nation than the loss of its coast (we need only cite the efforts of the Lybian kings and, later, of Philip of Macedon to conquer the Greek colonies on their coasts; and in more recent times, of Russia before Peter the Great, or of the Zollverein without the shores of the German sea), so, also, the economic and political influence of a stream increases as one approaches its mouth. Hence the justification of the great interest taken by Germany and Austria in the question of the Danubian principalities. The United States recognized this fact when they purchased Louisiana for 80,000,000 francs. Bignon, Hist. de France III, 111 seq. Readers of history are familiar with the important part played by the three Asiatic Mesopotamias: that between the Euphrates and the Tigris; that between the Ganges and the Brahmapootra; that between the Hoang-Ho and the Yang-tse-Kiang, to which finally the Punjab might be added. This relation is recognized by popular consciousness, in the case of the Ganges, by the belief in the sacredness of the stream. No river has had so much influence on civilization as the Nile: its periodical risings have made the labor of agriculture extraordinarily easy; their extent and regularity favored the progress of astronomy; the flooding over of the land led to geodesy; the hydraulic labors necessitated by the rising of the waters produced a school of architecture to which the river furnished an excellent means of transportation for the enormous masses to be moved. K. Ritter, Erdkunde, I, p. 880 seq; VI, p. 1,168 seq. In this matter, also, America and Europe have the advantage over Asia and Africa. While the Danube is, in places, scarcely three German miles from the Rhine—which, however, flows in an almost opposite direction—in Asia, the eastern streams are separated from the western, and the northern from the southern, by a strip of land difficult to be traveled, and about 300 German miles in extent. Besides, the principal streams of northern Asia have their exit into the Frozen Ocean, a fact which diminishes their importance greatly. The source of the Missouri is only about one mile distant from the Columbia river, although the two flow towards opposite seas.
375 The law governing the march of civilization from the mountain to the plain and to coast lands was observed even by Strabo, XIII, 592, and partly by Plato, De Leg., 677 ff.
376 Thus, for instance, that all the customers of a shoemaker together form a shoe-association etc. Dunoyer, Liberte du Travail, L. IV, ch. 10.
377 Storch, Handbuch, III, 188 ff. The Dutch traveler, Usselinx, speaks in a similar way of the imitativeness and many-sidedness of the Swedes (Argonautica Gustavica, 20). Chilian servants (peones) are a good combination of the cook, the muleteer, builder, courier etc. Once they have passed over a road, they never forget it. A knife stands them in stead of most tools, and pieces of leather in stead of nails. Poeppig, Reise, I, 171 ff.
378 von Haxthausen, Studien, I, 63, 113. In 1827, a Russian hatter got 12 rubles for a hat, a German one 35 (Schoen, N. OEkonomie, 78).
379 See the report of a large manufacturer in Kohl, England und Wales, p. 332 seq.
380 Raynal, Histoire des Indes (1780), L. XV. And so Rousseau, Discours sur l'Inegalite (1754), who also declaims against all kinds of capital; were there no ladders, men would climb better; and throw a stone better if they had no slings. There is certainly a misunderstood truth in this saying. It is assuredly very salutary, in the actual state of society, in which every one's business is transacted for him by some one else, that a time should occasionally come when no one can take our place, and a man can only call upon himself. And herein lies the immense value which just war, when not much prolonged, but which is brought to a happy termination, sometimes has upon the life of a people.
381 The American savages are, on an average, weaker than the whites. In a fist-fight the Kentuckians and Virginians showed themselves far superior to the Indians. See Lawrence, Lectures, 403, supra, 40.
382 For a very unprejudiced estimate of the dark and bright sides of the division of labor, even before Adam Smith's time, see Ferguson, History of of Civil Society (1767), IV, I, V, 3 ff. Also Garve, Versuche, III, 41. Adam Smith was not blind to the dark side of the division of labor, which, in part, he would remove by popular instruction at the expense of the state, and by a species of compulsory education. W. of N., V, ch. 1, 3, art. 2. One of the chief peculiarities of J. Moeser's Political Economy is his great opposition to all highly developed division of labor. Patr. Ph., I, 2, 21, III, 32, 34.
383 von Ledebur, Reise in Altai, I, 384. The working together of wife and child, introduced recently by manufacturers, cannot be considered as a higher grade of the division of labor, but only as a very unfavorable change in the kind of it; inasmuch as it were better to employ the women in their domestic avocations and to leave children to their studies and their sports. Among the higher classes, it should be made the part of female education, to counterbalance, in the family, the effects of the ever increasing division of labor among the male portion, by the development of that which is universally human—art, sociability, house-keeping etc.
384 Schleiermacher, Christliche Sitte, 465 ff., 676 ff., 154 ff. From a similar feeling, although much exaggerated, the Greeks of the classic age proper considered all callings followed for gain dishonorable, not excepting even those of the physician and of the teacher. Plato, de Rep., I, 347 ff. Aristot., Rhet., I, 9, 27: μηδεμίαν ἐργάζεσθαι βὰναυσον τέχνην, ἐλευθέρον γάρ τὸ μὴ πρὸς ἄλλον ζην.
385 As, for instance, the superintendent of a manufactory must have a better general training, but can get along with less of a special, than his workmen.
386 Thucydides says of the contemporaries of Pericles: "The same men devote themselves, among us, in part to domestic and political business; in part, others who busy themselves with agriculture and industry have no mean knowledge of the affairs of state. We call those who take no part in the former not people loving their ease, but useless men." (II, 40.) During the succeeding period, Athens was destroyed mainly by the ever increasing division of labor between citizens and soldiers. For, "to separate the arts which form the citizen and the statesman, the arts of policy and war, is an attempt to dismember the human character, and to destroy those very arts we mean to improve." (Ferguson.) We know from Valerius Maximus, that the Roman soldiers from the time of Marius had, doubtless, a better technic training than their ancestors who who defeated Hannibal; but was it in a military or political sense that they were thus better trained? The beautiful definition of Cato intimates something of the same nature; the good orator was vir bonus dicendi peritus. (Quintilian, XII, I.) And so Garve, Versuche, IV, 51 ff., expects from the political elevation of citizenship, of those possessed of the right of citizens, not only usefulness in a particular direction but the development of the whole man, a thing hitherto expected only of the nobility.
387 As one's peculiar calling does not take up all his life, we must draw a clear distinction between the one-sidedness of labor and the one-sidedness of life, (von Mangoldt, Volkswirthschaftslehre, 227.) Only the last is to be avoided at all hazards; and we find it in the middle ages, with its limited divisions of labor, perhaps more frequently than where civilization has attained a higher stage. During the middle ages, it was not unusual to make feelings which every one should cultivate at times, if only temporarily, the lasting calling of some. Thus one prayed his whole life long, or was engaged in contemplation, and relieved others of the necessity of performing these duties. The consequence was, that the latter sank as deeply in worldliness and want of the interior spirit as the former were plunged in idleness and hypocrisy. But, on the other hand, when, in our day, the printer relieves the writer of a portion of the labor which might be his, the personal development of neither suffers.
388 L'uomo e un' tal potenza, che unita all' altra non fa un eguale alla somma, ma al quadrato della somma. (Genovesi.) As to how the action of every individual man is a species of division and union of different kinds of labor, see Stein, Lehrbuch, 24.
389 Compare Ad. Mueller, Elemente der Staatskunst, III, 1809. Fr. List, System der polit. OEkonomie, 222 ff., 409 ff. Wakefield, in his edition of Adam Smith, distinguishes two degrees of cooeperation, simple and complex. In the case of simple labor, the same sort of work is performed at the same time and place by several individuals, as, for instance, by a lot of hod-carriers in building. In the other case, there are different kinds of work performed at different times and places, but all intended for the one greater end. Agriculture affords room for the first especially, and it is known also to a great number of animal species.
390 Flemish weavers in England, French refugees in Protestant countries; German miners in Spain, Scandinavia, Hungary and America.
391 This, so very largely developed in Egypt and India, where the principle of caste obtains, is very little developed in the despotisms of Asia. The great princes, in the latter countries, build largely from vanity only. Hence their successors seldom complete their works, and scarcely repair them. Nowhere else are there so many half completed and yet decaying buildings. Klemm, Kulturgeschichte, VIII, 86. Riedel, N. OEkonomie I, 259, very correctly remarks that such kinds of cooeperation as contribute most to the propagation of skill, both in commerce and manual labor, have less real division of labor, and vice versa.
392 Compare Leplay, La Reforme sociale en France (1864).
393 Concerning association in general, see M. Chevalier, Cours, III, Lecon, 24, 25. On this subject so much talked of in our day, see, more in detail, concerning its application to agriculture, my work, Nationaloekonomik des Ackerbaues, 4, 39, 47 ff.; 68, 133 ff.; on its application to industry, especially where there is question of the relation of handiwork and manufactures to large factories; see Roscher, Ansichten der Volkswirthschaft, II, Aufl., 1861, Abhandlung, IV, V.
394 Adam Smith remarked that the laws of the division of labor obtain also in intellectual works; and indeed, among all nations in a very low grade of civilization, the germs of all art and science are found connected with theology; and later, the germs of all poetry and history with the epic. The expression: non defuit homini, sed scientiae, quod nescivit Salmasius, is a clear proof of the insignificance of the science of the time. Think of the increase during the last hundred years of the branches of study in our German universities. There are now thirty-four regular professors in the Leipzig philosophical faculty, where then there were only nine. But here also the principle proves true, that an excessive division of labor, where the broader connection and the deeper foundation of all sciences disappear from the consciousness, undermines intellectual health and freedom. And the injury here is greater and more irreparable than in the domain of mere physical labor. See Hufeland, N. Grundlegung, I, 207 ff. If we have just become Alexandrians, we have, however, no Aristotle to hope for. Jurisprudentia est divinarum atque humanarum rerum notitia, justi atque injusti scientia (Ulpian). It is remarkable that nations who possess no real national literature of their own, when they once get beyond the bounds of utter barbarism, learn foreign languages etc., most easily.
395 The socialistic utopia of Ch. Fourier (Theorie des quatre Mouvements, 1808. Theorie de l'Unite universelle, 1822. Le nouveau Monde industriel et societaire, 1829) are based upon the following fundamental ideas. A. The present civilization is that of a topsy-turvy world, especially in so far as it ascribes a "moral" (a word always used by him in an ironical sense) self-government to man. In Fourier's world, on the other hand, every man is supposed, at all times, to give free rein to every passion; and the play of these gratifications constitutes the harmonie, in which the poorest find more enjoyment than do kings at the present time. (See 207 of this work.) B. The main thing to further this is a radical reform in the division and cooperation of labor as they exist at present. Instead of the present villages and cities, we should have only phalansteries, each with 2,000 inhabitants, and situated in the center of the land cultivated by them. Instead of the present nations and states, we should have a universal confederate republic, hierarchically graded, with French as the universal language. According to the demands of the passion papillonne, each one should carry on the most different kinds of business side by side, and each one of them at most two hours per day; i.e., every one should be a dilettante, no one a master, and everything should be done as badly as possible. Proudhon, Contradictions economiques, ch. 3, objects to this, that a workman must, in some way, be held responsible for his work. Fourier himself calculates that, in his harmonie all pleasures are productive labor; and that by this constant change, one might be satisfied with from 4-1/2 to 5-1/2 hours of sleep, and that even children 2-1/2 years old might take part in the work. Thus, there would be a great rivalry between apple-growers and pear-growers, so great "that more intrigues in attack and defense [passion cabaliste] would arise there than in all the cabinets of Europe," in the settling of which the growers of quinces would act as intermediaries. There are, in addition to all this, wonderful aids; a fructifying crown of light rises over the north pole; oranges bloom in Siberia; the sea becomes as delicious as lemonade; dangerous animals die, and in their stead anti-lions and anti-whales come into being, animals useful to man, which draw his ships for him during calms. These ideas are by no means retracted in Fourier's later works, See Nouveau Monde (Oeuvres) IV, 447. The propositions of Robert Owen, A new View of Society (1812), have much similarity with those of Fourier. They differ only in the absence of the French barrack-like character of the phalanxes, and the fantastic character of the presentation of the doctrine. He would have all the land divided into districts of 1,000 acres each; each district to have a four-cornered town with 1,000 inhabitants, following a system of production and consumption in common, but not with full equality; carrying on both agriculture and other business. A principal feature here is an entirely new system of education. The author says that man has hitherto been the slave of an execrable trinity: positive religion, personal property and indissoluble wedlock. (Declaration of mental independence.)
396 Compare Tacitus, Histor., II, 44.
397 See Iselin, Geschichte der Menschheit (1764), III, 7. Bazard, Exposition de la Doctrine de Saint Simon, 1831, 153. Among negro nations deprivation of freedom is one of the most usual punishments for crime; but the criminal has the option of substituting his wife or child for himself. L.A. de Oliveira Mendez, in the Memor. econom. of the Royal Academy of Lisbon, vol. IV, I, 1812. As to slavery on account of crime among the Germans, see Grimm, D. Rechtsalterth., 328 seq.
398 Loss at play was a frequent cause of slavery among the ancient Germans. Tacit., Germ., 24. For the principal causes of slavery among the Israelites, see the books of Moses, II, 22, 3; III, 25, 39; IV, 21, 26 seq.; among the Indians, Laws of Menu, VIII, 415. The first serfs of Russia were prisoners of war and their children. The laws of Jaroslaws recognize, besides, the following causes: insolvency, contracting marriage with a slave, the illegal breach of a contract for service, flight, unconditional contract for service. Karamsin, Russ. Gesch., II, 37.
399 At least seed and the means of subsistence until harvest time.
400 Cases of voluntary slavery to escape famine. Papencordt, Geschichte der Vandalen, 186; Victor, Chron., V, 17; Tur., VII, 45; Lex Bajuv, VI, 3; L. Fris, XI, I. According to the Edictum Pistense (a., 864), c., 34, one could free himself again by paying back the purchase money and 20 per cent. in addition. It frequently happened that people spontaneously accepted the condition of a vassal in order to enjoy the protection of a powerful personage. See Stueve, Lasten des Grundeigenthums, p. 74. In 1812, a young Himalayan offered himself to the traveler Moorcroft as a slave in order to obtain food during the famine. K. Ritter, Erdkunde, III, p. 999. The same fact occurred, but in greater proportions under Joseph in Egypt. Moses, I, 47, 18 seq.
401 Caesar, B.G., VI, 13.
402 Solon was the first to prohibit this commerce in Athens. Kindlinger, in his Geschichte der deutschen Hoerigkeit, p. 621, speaks of a child promised as a slave before its birth, by its parents, as a species of farm-rent. (See the Edictum Pistense, in Baluz, II, 192.) In Chili, the poorest country people who were not entirely white, sold their children in the towns, where they grew up with the families of their masters, and were then kept as servants in a state of semi-serfdom. There is, it is true, no law governing this condition of things. (Poeppig, Reise, I, 201 ff.)
403 Ritter, XIII, 727. For instance, men in South America used for the purpose of riding. M. Chevalier, Cours, I, 251; Loewenstern, Le Mexique, Souvenirs d'un Voyageur (1843); and Stephens, Travels in Yucatan (1841), show how, even yet, in Central America, although the Indians are legally free, yet, by their senseless way of running into debt, a number of legal relations, amounting virtually to glebae adscriptio, arise. But compare, however, Humboldt, Neuspanien, IV, 263. This condition of things has been produced in Peru, also, by the payment of one or two years' wages in advance. (Poeppig, Reise, II, 225.)
404 Thus Forbonnais, Elements du Commerce (1854) I, 364, says of trade with savages: il fait naitre dans ces nations le gout du superflu et des commodites, qui multiplie le, echanges et leur donne le gout du travail.
405 In very uncivilized nations, among whom serfdom is not known, we generally find the slavery of woman and the temporary bondage of the son-in-law in order to secure the daughter in marriage. This is still the case among the Laplanders. Klemm, Kulturgeschichte III, p. 54. Slavery was unknown among the Greeks in the very earliest times. Herod., VI, 263. F. A. Wolf, Darstell. der Afterthumswissenschaft, III, doubts whether any great advance in the higher development of the mind would have been possible without slavery.
406 In Russia, where free peasants and serfs lived side by side, it has been remarked that the latter were never so rich and never so poor as the former. (Kohl, Reise durch Russland II, 8, 300.) The Livonian peasants have become poorer since their emancipation. (Cancrin, OEkonomie der menschlichen Gesellschaften, 41). Many of the serfs refused to accept emancipation. (Buesch, Geldumlauf, Einleitung, 6.) And so Martius, Reise in Brasilien II, 552 ff., assures us that the negro slaves in Brazil are as a rule a very merry set. He is also of the opinion that they are better clothed, lodged, fed and employed than in their own country. For the remarkable official defense of North American slavery directed by Calhoun, to Lord Aberdeen, see the Allg. Zeitung, 1844, No. 145. In this document, we find a comparison instituted between the free negroes of the north and the slaves of the south. In the north, there was one deaf-mute, a case of blindness and of insanity in every 96; in the south, in every 672; a pauper, invalid and prisoner in every 6 at the north, in every 54 at the south. In Maine, 1/12th of the negroes were afflicted by disease; in Florida, 1/1105th(?). The fact that the slave population of the United States increased, between 1840 and 1860, from 2,873,698 to 4,441,830, while the free negro population of Jamaica, between 1833 and 1843, underwent a frightful decrease, is to the same purport. However, too much must not be inferred from all this, as the negroes in America are very far from being the children of the soil.
407 The servants in the Odyssey who cared for hogs and cattle etc. were certainly in a better condition in many respects than the peasants of Attica, who were free, but buried in debt until the time of Solon. Concerning the mildness of the treatment of slaves in very early Roman times, see Plutarch, Coriol., 24, and Cato, I, 3, 20 ff.; Cato, de Re rust, 5, 56 ff.; Macrob., Stat. I, 10 ff. On the state of the serfs among the Germans, see Grimm, Deutsche Rechtsalterthuemer, p. 339 ff.; among the ancient Scandinavians etc., Dahlman, Geschichte von Daenemark, I, 163. See Tacit., Germ., 25.
408 Compare Landnamabok, I, 6.
409 The opinions of the ancients for and against slavery are found in Arist. Polit. I, 2. See especially the beautiful passages in Philemon: Meineke, Comicorum jr., 364, 410. Aristotle even thinks that there are cases in which master and slave might be brought together by a mutual want, each of the other. The former wants hands to execute the work of his brain; the latter a guiding brain for his hands. Where the degree of dependence corresponds exactly to the difference of ability, Aristotle, leaving its abuses out of the question, declares slavery to be just. See, also, Eth. Nicom., VIII, 11. Similarly the Pythagorean Bryson in Stoboeus, Florid. LXXXV, 15. But Aristotle would hold up emancipation to all slaves as a reward they might have in prospect. Polit VII, 9, 9; OEcon. I, 5. It is characteristic of the many testaments of philosophers, found in Diogenes Laertius, that they contain declarations giving slaves their freedom. The Essenes and Therapeutics condemned slavery under all circumstances. Philo., Opp. II, pp. 458, 482, Opp. I. See Seneca, De Benef. III, 20. The jus naturale of the age of the Caesars recognized the freedom and equality of man. Digest, XII, 664., L. 17, 32. The New Testament does not reject it absolutely, but would sanctify it as well as all other relations in life. Compare Luke, 17, 7; Eph. 6 5 ff.; Coloss. 3, 22; Tit. 2, 9. More especially, I Timothy, VI, 1 ff. It was not until the ninth century that the opinion that slavery was anti-Christian because men were all made in the image of God, arose. Planck, Geschichte der kirchlichen Gesellschaftsverfassung, II, 350. Sachsenspiegel, III, 42. A writer as recent as Pufendorf explains slavery as arising from a free contract; faciam, ut des. Jus naturae (1672) VI, 3. More recently Linguet, Theorie des Lois civiles (1767), V, ch. 30, and Hugo, Naturrecht, 186 ff. have endeavored to prove that slaves are in a condition preferable to that of poor free men. And so Moeser Patriot Phantasien, II,. p. 154, seq. Those who with Thaer separate the element of production, "labor" from that of "intelligence," justify slavery on the same principle that Aristotle did, without knowing it. Per contra, see F. G. Schultze, N. OEkonomie (1856), 418.
410 Turgot, Sur la Formation etc., 21. The universal empire of the Romans demonstrated this. Then it was, for instance, that during the wars of Lucullus, a slave cost only four drachmas. (Appian., Bell. Mithr., 78.) Sardi venales: on account of the glutting of the market with Sardinian slaves, made through the victory of Tib. Gracchus, 177, before Christ. Many of the lesser wars of the Romans can be looked upon only as slave-hunts. But the great wars also were followed by uprisings of slaves on account of the many new slaves which they made. Thus 198 in Latium, 196 in Etruria. (Buecher, Aufstaende der unfreien Arbeiter von, 143-129, v. Chr., 1874.) During the relatively peaceful periods which preceded many of the Roman revolutions, pirates delivered over great masses of slaves. It frequently happened that several thousand slaves were led to Delos and sold in a single day. (Strabo, XIV, 668.) As emancipation was a measure which people could not make up their minds to adopt, these pirates satisfied a "want" for a time, and this partly explains the otherwise incomprehensible forbearance of the state towards them.
411 Gregor. Turon., III, 15.
412 Grimm, D. Rechtsalterthuemer, 323. It is a strange fact that prisoners of war were in several remarkable instances sold as slaves in Italy during the fifteenth century. (Sismondi, Hist. des Republiques italiennes, IX, p. 312 seq.; XI, p. 138 seq.) And even in the sixteenth century, the pope allowed those of states opposed to him to be treated in this way. Sismondi, supra, XI, 251; XIII, 485. Raynold, Ann. eccl. 1506, 25 ff.
413 This graduation of slave, serf and workman, has been carried out especially by Saint Simon, Oeuvres, 328 ff. Even Proudhon admits that the condition of the lower classes is better now than formerly. (Contradictions economiques, ch. X, 2.) Compare M. Chevalier, Cours, I. Lecons 1 and 2, where he shows that our productive power has increased during the last four or five centuries in the production of iron in the proportion of 1 to from 25 to 30; in the preparation of flour since the time of Homer in the proportion of 1:144; in the production of cotton during the last 70 years in the proportion of 1:320. Aristotle predicted, long ago, that "when the shuttle would move of itself, and plectra of themselves strike the lyre, we should need no more slaves." Polit., 2, 5. Every step of true progress brings us nearer the fulfillment of the prophecy.