and residence, and, in brief, must circulate the power of its authority alike through the main arteries and the smallest capillaries of industry. How, under a complicated system of division of labour, such a degree of organisation could be obtained, seems absolutely inconceivable. The magnitude of the change is perhaps best seen from the usual proposal to abolish the use of money. Let any one try to imagine how the business of a great country is to be carried on without money and prices, how the value to the society of various species of labour is to be estimated, and how the relative utilities of consumable commodities and transient services are to be calculated, and he will soon discover that the abolition of money would logically end in the abolition of division of labour. This prospect throws a strong light on the claims of the socialists to base their doctrines on the tendencies of history and the actual processes of evolution, for as already shown in detail, the principal characteristic of industrial progress has been the continuous extension of the use of money. In reality, however, socialism is still more vitally opposed to historical development, since it aims at reversing the broadest principle of progress, the continuous substitution, namely, of contract for status. It is equally false in its assumptions as to the present relations of capital and labour; the idea of the tyranny of dead capital over living labour is utterly unreal; dead capital without living capital is powerless, and living capital is stored in the brains and hearts of men. The interest pure and simple, apart from wages of superintendence, on the dead capital of the United Kingdom is probably less than one-third of the gross annual income, and most of it is due to labour in the past of a highly specialised kind, which has benefited society to a much greater extent. The notion that the modern system has tended to make one very large class of very poor and one very small class of very rich, is
1 Consider, for example, the interest afforded by railways, banks, and improvements in lands and buildings.
the reverse of the truth. It is in countries in which the principle of competition is carried to the greatest pitch, that the middle class is relatively greatest, and the proportion of skilled to the unskilled workmen the highest. Not only, however, does socialism rest upon a false view of past and present conditions, but it sets up an ideal which would dwarf the minds and cripple the energies of mankind. The principle of population would soon assert itself, and because an objection is not new, it does not follow that it is not valid. Above all, the liberty of the individual would be stifled, and with it, self-reliance, independence, and enterprise. State socialism, if carried out, could only end in state pauperism, and the best critique on the so-called historical socialism is the history of the English Poor Laws.
Allmends of Switzerland, 280.
Abstinence, 100, 198, 388, 389, 393, 403. Allowance system, 378.
Access to mountains, 262, 263.
Accumulation: influence of climate
on, 11; effective desire of, 25 (cf.
205-208); in United Kingdom, 89,
Book I. Ch. XII.; scope for, given
by capital-basis of private property,
242; stimulus of freedom of bequest,
253, 254; acquisition of a right of
separate, 360; effects of rate of in-
terest, 393, 394 (cf. 209, 210); of se-
curity, 398.
America: agriculture of, 161, 420; de-
mand for gold in, 419.
American economists, 172, 346.
Amsterdam, Bank of, 392.
Analytic method, 268.
Anarchists, Russian, 428.
Anderson, 19.
Andrews, Dr., 289.
Anglo-Saxons, 291, 292.
Saxons.)
Acquisition, labour of, 68. (See also
Appropriation.)
Anticipation of the future, 243. (See
also Discounting the future, and
Expectations.)
Adoption in Russian family commu- Antiquity, argument from, 251.
Appreciation of gold, 215, 419.
Advantage, meaning of term, 138, 141, Apprenticeship: statute of, 124, 360,
142.
Agents of production, 33 seq., 200, 229,
234, 403.
Agricultural Holdings Act (1883), 321,
Agricultural: labourers, what drives
them into towns, 120; condition of
English, compared with French peas-
ant, 145; systems, Book II. Ch. VI.;
land and its economic rent, 404-409;
produce, causes affecting its amount,
417, 418; price, 418-420; expenses of
production, 421.
Agricultural System, 140.
Agriculture, 45; Nature's part in, 67;
importance of, 71; effect of exten-
sion of market, 113, Book I. Ch. IX.;
law of diminishing return in, 151;
American, 161; English, 168; im-
provements and inventions in, 170,
172; British, 260; and judicial rents,
317, 318; apprenticeship in, 363, 364;
British, 417-423; Irish, 418.
Africa, 69, 133; tribes of, 207.
Alfred, King, 45.
Alienation, freedom of, 293, 294, 305.
361, 366-368; system of, 124, 360-
362, 363-364, 370.
Appropriation: emphasised in distri-
bution, 10; mark of economic utili-
ties, 26, 27, 29; of natural fruits, 33;
of ideas, 40, 46; a species of pro-
duction, 44, 45; labour of, 93; of
land, 405-409.
Arabian influence on civilisation, 79.
Argyll, Duke of, 45 N, 322, 370 N, 402 N,
405 N.
Aristotle, 37, 88, 390.
Ashley, Prof., 41 N, 306 N.
Asia Minor, 69.
Asiatic governments, 398.
Atkinson, E., 101 N, 211.
Austin, 222.
Australian, the native, 206.
Auxiliary capital, 97; specialisation
of, 108; and division of labour, 111,
112, 122, 153, 212.
Bacon: idols of the market-place, 5;
"fraternities in evil," 365, 408.
Bagehot, 103 N, 124, 125, 209.
Bain, 364 N.
Baker, Sir Samuel, 207.
Bancroft, 84.
Bank of England, 419.
Banking organisation, 96, 201, 207,
Bastiat, 13, 14, 103, 109, 198, 332, 388.
Beccaria, 236.
Belgium, 423.
Beneficium, 292.
Bentham, 7, 24, 52, 198 N, 202 N, 203,
205, 237; on security, 243-245; criti-
cism of his views on security, 245,
246, 252, 267 N.
paid for use of, 229; an economic
basis of private property, 242, 243;
includes most valuable qualities of
land, 258; interest received on, ib.;
in wages-fund theory, 340 seq.; ad-
vantage in bargaining, 396; demo-
cratic, 400; landowners' interest in
application of, 407, 408; relations of
labour and, 433.
Capitalist, profits dependent on feel-
ings of, 388.
Capitation tax in Russia, 276.
Caste system, 227.
Cavour, 274.
Cellini, Benvenuto, 47 note 1.
Bequest, 230, 241, Book II. Ch. III.; Celtic crofters, indolence of, 79.
Berkshire bread-scale (1795), 377.
Bible, the, on usury, 390.
Biology and Political Economy, 12.
Black Death (1349), 147, 285, 303, 341,
365.
Blackstone, 44 N, 236 N, 309.
Blood-relationship, 250, 251; in Russia,
274; in West Britain and Ireland,
288.
Champion and several, 45, 278.
Chance, element of, in profits, 400, 401.
(See also Conjunctur.)
Checks to population, 184 seq.
Child, Sir J., 124, 131, 331 N.
Children: employment of, 120 N, 124,
360, 370; views on increase of, 178,
182, 183, 187, 188; pauper, 189; obli-
gation to support parents, 190, 375.
China, 79, 162, 185, 195.
Chisholm, G. G., 70 N, 116 N, 202 N.
Böhm-Bawerk, E. von, 87 N, 88, 103 N, Christian Fathers and usury, 390, 391.
Bonar, Dr., 176, 177 N.
Booth, Charles, 189, 190 N.
Brassey, Mr., 79.
Brentano, L., 124 N, 127 N, 331 N, 352 N,
360 N, 361 N, 362, 365 N, 367 N, 369 N,
381.
Brodrick, 305 N.
Budget, National, 199.
Burton East African morality, 207.
Business management. See Manage-
ment, also Entrepreneur.
CAIRD, SIR JAMES, 153 N, 157, 163,
422.
Cairnes: Political economy a moral
science, 10; wages-fund theory, 340.
Cannan, E., 152 N, 157 N, 159 N.
Canon law, 41, 88.
Capital, 30; a requisite of production,
33 seq., 44, 200, 403; historically
prior to appropriation of land, 36;
living, 37, 38; mental and moral, 38,
39; growth of, 66, Book I. Ch. VI. ;
economy of, 122, 123; concentration
of, 122-124, 129-131, 427, 433, 434;
and large farms, 142, 143; and size
of farms, 147; growth of (material),
Book I. Ch. XII.; profit the price
Christian Socialism: of Middle Ages,
430.
Christianity and self-interest, 82. (See
also Church.)
Church, mediæval: and the economic
basis of ideas, 41-43; prohibits inter-
est, 87, 226; condemnation of love
of gain, 206; held a third of English
land, 254, 269; and the poor, 373,
374; nobility of aim, 429, 430.
Circulating capital, 96, 97.
Civilisation, 36, 39, 79; security, con-
tract and, 203-205; and inequalities
of distribution, 221; money the guid-
ing thread to its history, 300.
Civil law: influence on systems of
cultivation, 149, 150.
Classification of labour, 108, 109, 122.
Clerk Maxwell, 28.
Climate, 8; a constituent in national
production, 70; affects systems of
cultivation, 147.
Cloth manufacture in England, origin
of, 114, 115.
Co-aration, 35.
Code, Napoleon, 314.
Collaterals and inheritance, 252.
Collections for impotent poor, 373 seq.
Coloni, 83, 239; and villani, 286.
Combination of use, in natural things,
49, 50; in employment of persons,
128, 129; of labour, 104, 112; modi-
fies competition, 345, 351, 357.
Comfort, standard of: its influence on
population, 190-194, 195; limitation
of bequest and, 255; and "natural"
rate of wages, 333-335; and mini-
mum wages, 349-351.
Comforts, taxation of, 65.
Commendation, practice of, 292.
Commercial treaties, object of the
earliest, 204.
Commodities: consumable, 199, 213,
433; labour treated like other, 324,
325, 342.
Commons, peculiar rights over, 273.
Communications, means of, improve-
ments in, 125, 170, 183, 201.
Communism, 428.
Companies, joint stock, 131-137; regu-
lated, 132.
Comparative method, 19, 277–229, 230,
236, 273, 279.
Compensation: for expropriation, Book
II. Ch. IV.; for improvements, 204,
318-323; for risk, 396–399.
Competition: relation of political
economy to, 14, 233; and custom,
Book II. Ch. V.; in determination
of wages, 324; modifies custom, 325;
has diminished the sphere of custom,
331, 333, 335, 336, 340 seq.; what it
implies, 345; modified by combina-
tion, law, and custom, ib., 348, 355,
356, guilds' attempt to restrict, 364;
and equality of interest, 394, 395;
tends to equalise risks, 397; and
economic rent, 409; and degradation
of labour, 427; the great agency of
progress, 429–434.
Concentration: of industry, 122-124;
of labour and capital, 129-131; of
capital, 427.
Conditions of work, as affecting quan-
tity of labour, 76; affected by law
and custom, 330, 331, 357.
Condorcet, 176.
Conflict of interests between labourer
and employer, 329-331, 332, 333.
Coniunctur, 400, 414. (See also
Chance.)
Consumer's rent, 57-60, 63-65.
Consuls, their constancy of yield, 395,
396.
Contract: movement from status to,
38, 230, 300, 325; socialists would
reverse this, 433; freedom of, 230;
as a basis of private property, 240-
242; hostility of socialists to, 242,
243; security essential to, 244, 245;
a means to an end, 246; the true
ideal of a trades union, 387.
Contracts: security for enforcement of,
203, 204; state secures fulfilment of,
225; customary land tenures have
given way to, 226; time an impor-
tant element in, 244; relation of the
law to, 247; for the hire of land,
Book II. Ch. IX.; for labour, 357.
Conventional land tenure substituted
for customary, 312, 324.
Co-operation, 104, 106, 112; among
peasant proprietors, 142, 143, 145,
227; very ancient, 288; power for
good, 432.
Corn: cost of production of, 164;
causes affecting its price, 419, 420.
Corn Laws, 152, 343.
Corporations: powers annulled, 226;
the ancient family a corporation,
251; bequests to, should be limited,
254, 269.
Cost of labour, 328-331, 388, 420.
Cost of production: and rent, 162, 163;
absolute, of corn, 164; applied to
wages of labour, 324, 333.
Cottier, rack-rents in Ireland, 315, 316.
Coulanges, De, 280 N.
Country, meaning of term, 338, 339.
Cournot, 8, 19 N, 103 n.
Craft-guilds, 362–365. (See also Guilds.)
Credit institutions: a form of im-
material wealth, 33; produced by
labour, ib.; its extension increases
wealth, 200, 201.
Crisis, commercial, 134, 201, 266, 343.
Crofters, Scottish, 74, 145, 158, 320.
Cultivation of land: intensive or ex-
tensive, 151, 160, 161, 165, 166; in
common, 240, 273 seq.; in Russian
mir, 278, 280, 281; intensive, 407.
(See also Improvements.)
Currency: debasement of, 327; changes
in, 419.
Consumption, 1, 9, Book I. Ch. III.; Custom, 142, 144, 221, 227, 228, 230,
Consumption-capital, 90, 91, 199, 211,
252, 253; and competition, Book II.
Ch. V.; and village communities,
Book II. Ch. VI.; money the prin-
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