The Science of Wealth

CHAPTER I. - Divisions of the Subject. - Distribution arises out of divi-
sion of labor, 252.-Labor, physical, mental, and subsidiary, all
receive wages; capital loaned in two forms, one receiving interest, the
other rent, 253.- Government claims a share; we have therefore to
provide for wages, profit, interest, rent, and taxation.

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CHAPTER II.-Wages. - Governed by laws of value; vary in different

countries and ages, 254. — Importance of freedom and equality in

securing fair wages; necessary wages, 255.-Wages depend on

business enterprise; distinction between real and nominal wages;

illustrated, 256. — Facts in point, 257.

CHAPTER III. — · Proportionate Rise and Fall of Wages. — Do not rise

so soon or high as commodities generally; reason, no speculative

demand; fall sooner; difficult to ascertain rise or fall of real wages;

unquestionably have a tendency to advance; 1810 compared with

1860, 259. Difference from character of employments; danger;

disgrace, 260.—Unhealthy trades; compensation should be made;

agricultural wages, for this reason, lowest of all, 261.- Education of

the laborer; makes him more efficient, and commands a reward; fru-

gality of the laborer; makes him independent, 262. — Neutralizes

the advantage of the employer; distinction of sex influences wages;

rate of difference, 263. — Equality of numbers; industrial sphere of

woman closely circumscribed; her products more dispensable; hence

inferiority of compensation, 264.- - Cannot be increased by mere phil-

anthropic efforts; change must be effected on economic principles;

her occupations must be increased, 265.- Another classification of

wages, paid respectively for physical, mental, moral power, 266.

Gradation of wages on this plan; economical importance and value of

integrity; high rewards, 267.- Objected, confounds moral and eco-

nomical philosophy; answer, they do meet, and this ground is

common to both, 268.

CHAPTER IV. - Labor Combinations. — Laborers have same right

to combine as capitalists; friendly associations of England, 269. —

Their agency; official registration; moral influence, 270.—Trades'

unions; lawful, but no coercion may be employed within or without

these unions, 271.-Strikes lawful within the same restrictions, 272.

Do not permanently raise wages; freedom, intelligence, and virtue

must do this, 273. — Co-operative associations; account at length by

Professor Fawcett, 274.

CHAPTER V.-Profits. — The remuneration of the business man, 279.

Must not be confounded with interest, wages, or rent, 280. — The

forms may be united; freedom necessary to secure fair profits, 281. —

Profits of capital an inaccurate term, 282. Rate of profit tends to

decline, from acceleration of exchanges, increasing competition, and

more rapid intercourse; difference in rate of profits in same commu-

nity, 283. — Rapidity of exchange; its effect on profit illustrated, 284.

- Profits large in new countries; Western States of America; prof-

its governed by demand and supply, 285.- Tendency to reduce

profits further discussed; effect on profit of temporary rise of wages

illustrated, 286.- Dividends, how classified? 287.

CHAPTER VI. — Interest. — Reward of circulating capital; justified by

right of property, 228. By human wants; interest dependent on

productiveness of labor, 289.— Governed by demand and supply; abo-

lition of British usury laws; usury laws ineffective, 290.— Increase

expense of borrowing, by danger and secrecy of transaction; create

fictitious exchange, 291. Create compulsory deposits; interest

still further influenced by hazard of capital; this depends on honesty

and thrift of a people, and efficiency of laws affecting property;

interest influenced by unsoundness of currency, 292. Illustrations

from Europe and America; legal rate should be fixed in the absence

of any agreement, 293.

CHAPTER VII.- Rent. - Reward of fixed capital; not of great impor-

tance in United States; implies ownership; implies society, 294.

Land the foundation of rent; does not appear in hunter or

shepherd state; begins with agriculture, 295. - Location the first

element; rent would appear though there were enough land for all,

with no difference of quality; illustrated, 296. - Fertility the second

element; illustrated, 297.- Cost of importation, third element;

illustrated from Great Britain; application of capital, fourth element;

not proportionally productive in all cases, 298. - Great extent of

European improvements; land appendages; do not sell for cost, 299.

— Reason, difference between West and East, 300.- Improvements

become gratuitous; city rents generally on level with interest, 301.

CHAPTER VIII.- Wages, Rent, Interest, and Profits, as relatively af-

fected by Currency Inflation.-Not affected in equal degree; wages did

not rise in 1864–5 as prices did, 302. — Rents advanced little, interest

somewhat, but not as high as profits; state of things illustrated, 303.

-The laborer loses; the business man gains, but not so greatly as
supposed; is, however, the only party who gains at all, 304. Ex-
cept speculators; loss on all fixed incomes, 305. - Facts of the war
hold to a degree in all expansions.

CHAPTER IX.
Principles of Taxation. - Necessity of government; it

receives revenue; by taxation, 306. — Importation in United States;

must be just and equal in a free country, 307. - Government own a

share in every product, has a lien on every article of value; principles

of taxation propounded by Adam Smith; first, equality of contribu-

tion, 308. — Explained and illustrated; second, taxation must be

certain and plain, 309. Third, convenience of payment to be con-

sidered; fourth, economy; how the last principle may be violated;

by great machinery of collection, 310. By disturbing industry; by

encouragement to smuggling; by interruptions and vexatious visits;

a fifth principle proposed, taxation of mischievous consumption;

forms of American taxation, 311. - National; State; taxes divided,