CHAPTER XIII.-Foreign Indebtedness. - 1st, Economy of foreign in-

debtedness; of four kinds, individual, corporate; these may be

enforced by law, are of great extent; State, 346. — National; no

legal remedy for these; amount already sent abroad; 2d, exporta-

tion of public stocks considered; desirableness depends on return

made, 347. — Exporting stocks regarded as extending mercantile

indebtedness; the return will depend much on condition of the

currency, 348. — Disadvantage at which stocks are now exported;

tariff will not help it, 349. The remedy should be applied to the

currency; rapid depletion of the United States; objection to foreign

indebtedness; debtor cannot choose his creditor, 350.
Makes no

difference who the creditor is; we should be glad to have the use of

foreign capital; errors of financial management during the rebellion;

wisdom of the Confederate loan, 351. Our debt can be cheaply

negotiated abroad, if rightly put out; can make no operations advan-

tageously under an expanded currency; indefinite fear that foreign

indebtedness endangers a nation, 352.- The danger is to the party

owning, not the party owing, the debt; no evil can arise from this

source; fallacies respecting a national debt; Mr. Jay Cooke's first

proposition, 353. — If “our debt is so much added to our wealth,"

the war was a financial blessing; nobody is richer, the govern-

ment is three billions poorer; the wealth which the debt represents

has been spent in war, 354. - If debt is wealth, repudiation would

destroy wealth; not so; again,
not so; again, "debt is active capital; " govern-

ment debt, like individual, can be hypothecated to obtain capital, 355.

Again, it "gives stability to government; " government depends on

the satisfaction of the people; France has large debt, yet undergoes

repeated and violent changes; but “ every government creditor is in-

terested in the stability of the nation; " who holds the debt? not one

citizen in fifty holds enough stock to make his interest from it so large

as the taxation it imposes, 357. — Illustrated, 358. The debt will be

a source of discord and faction; again, "it insures protection to home

industry," 359. — England has a large debt, and has repudiated pro-

tection; again, "it is a desirable basis for banking;" debt is no basis

for sound banking; again, "the generation contracting is under no

obligation to pay;" this simply enslaves posterity, 360.- But nations

must sometimes create debts; " very rarely, 361. — Ours should be

paid within the century, 362.

CHAPTER XIV.- Rise and Growth of the Modern Financial System.

no large national debt ever paid; William III. of England author of

modern system; his war with France, 363. — Disadvantages of former

kings of England; William established a regular scheme of borrow-

ing; incorporated Bank of England to manage the debt; established

land-tax, 364. —Also indirect taxation; results of the new system;

unlimited credit; all check on war expenditures removed, taxation

transferred to the poor; the aristocracy conciliated, 365. — Progress

of British national debt, 366.-Diagram of the British national debt;

the bank grows up with it, 367.- Advantages and mischiefs of indi-

rect taxation, 368. — Fruit of this policy; extension of war system;

increasing indebtedness all over the civilized world; impoverishment

of the masses; such a debt throws taxation on the productive classes,

371.— Altered condition of the United States, 371.

CHAPTER XV. — On the Laws of Inheritance and Bequest.

To whom

does the world belong, the living or the dead? 371. It is a concern

of government; Mr. McCulloch's argument; the world belongs to

the living, 372.-Laws entailing property established in certain coun-

tries, 373. Wealth tends to pass out of the hands of a family or

class, 374. — This liability of the rich is the property of the poor;

to contravene it by law is to rob them; the laws of primogeniture and

entail; their rightfulness; subsistence secured to man only in his

powers of industrial appropriation, 375. — Analogy of nature; defeat

his right to appropriate by making property inalienable, and you de-

prive him of subsistence, 376.- Expediency of such laws; entailed

estates generally too large for economic well-being; monopoly of

wealth and monopoly of wives, 377. — Diminish the industrial de-

sires; draw off wealth to luxury, 378.- Come to men incompetent

to administer them, 379.

BOOK V. - CONSUMPTION.

CHAPTER I. — Divisions of the Subject.-Destruction of wealth not a

subject for science; consumption the use of wealth, 380.— Illus-

trated, 381. Upon consumption depends reproduction; the acts of

consumption often cannot be defined or even detected, 382. - Not

the less real; relations of production, exchange, distribution, and

consumption illustrated; consumption divided as mistaken, luxuri-

ous, public, and reproductive.

CHAPTER II.-Mistaken Consumption. Capital applied for reproduc-

tion without result; frequent failures of industrial enterprises, 383.

- Secondary uses of such failures, i.e. railroads, factories, &c.,

น.

384. Large proportion of industrial misadventures; why? capital

fallible; extravagance in outlay; great accidents or developments,

385. — Wealth unproductively applied is not capital; is waste or

luxury, 386.

CHAPTER III. · Luxurious Consumption. What is luxury? 386.-

General formula; standard varies with classes, countries, and ages,

387.- Direction varies with individual taste; do luxuries directly

encourage industry? illustration, 388. — Encourages one class to

discourage another; capital thus spent pays less wages than that

employed reproductively, 389. Do they indirectly encourage indus-

try? the desire to spend is the origin of the desire to gain; great

economic importance of this; this influence of luxuries increased by

their general diffusion, 390. — Only temperate and harmonious con-

sumption of wealth in luxury encourages industry; place of morality,

391.

-

CHAPTER IV. — On the Degree of Luxurious Consumption. — Luxuries

not confined to the rich; an extent of necessary wages, 392.

French and English workmen compared; popularization of luxuries,

393. — Relative consumption in luxury by different classes in Great

Britain; historical examples of luxury, 394. — The causes of luxu-

rious consumption, a surplus, preponderance of desire to spend over

desire to gain; this influenced by security and profitableness of capi-

tal; extent to which luxury can be carried; Gibbon's theory, 395.–

Modifications of this; no certain proportion for all nations; idleness

as a luxury, 396. — Of learning and art; have value; their price

varies, 397. Quantity of labor bestowed on them governed by sup-

ply and demand; effect of such consumption, 398. — Sumptuary

laws; supported by urgent reasons, 399. — Found impracticable;

causes, 400. — Violations not easily proved; against human nature;

laws in the interest of morality should be sustained, 401.

CHAPTER V.- Public Consumption. - Economical reason for govern-

ment, 401. — Right to participate in consumption; share? 402.-

Government should take nothing from individual enterprise; anec-

dote, 403. — Government should do nothing for display; historical

instances of frugality; progress in this direction; expense of gov-

ernment varies with circumstances and character, 404.—Expendi-

tures of European nations; of United States, 405. —Does public

consumption encourage industry? if unnecessary, it is only charity,

requiring great expense beyond the help given to the poor, 406.

saves self-respect, entails burden on the future; if necessary, public

does not get full value of the outlay, 407.-Government never

operates successfully; some duties must be undertaken directly by

government; these occasions few and definite, 408. - Disadvantages

of government consumption; seldom needed by the people; perpet-

uates dependence; demoralizes industry; induces political corruption,

409. — If government expends at disadvantage when necessary, it

should not go beyond its strict occasions; expenditures of United

States in recent war not economically advantageous, 410.

CHAPTER VI. — Charity and Poor-Laws. — Field of this agency;

restricted by family relation, 411. Constituents of the class

needing support; statistics of pauperism, 412.-Not very impor-

tant in United States; what classes entitled to charity? all who

require it; the vicious? Roman cruelty; Christian law, 413. —

Who should administer charity; may be most judiciously and

economically done by private hands, 414. Mutual-relief soci-

eties another and advantageous mode of charity; such agencies

extensive in Europe and the United States, 415. Christian

scheme of the Quakers or Friends, 415. All these methods

insufficient, and the State must engage in the work, 415. — By what

branches of the government; to what extent; two English methods;

allotment of land and parish allowance, 416.— Failure of this sys-

tem; to what extent poor-laws may be effective, 417. - Able-bodied

workmen as paupers, 418. - Pauperism of England, 418. — In what

form should charity be administered? 418, 419. — How government

should furnish charitable assistance, 420. In what spirit charity

should be dispensed, 421.

CHAPTER VII.-The Finance of War, 422.-Fallacy that more money
is wanted in time of war than in peace; evil effects of this; govern-
ment becomes the greater operator in war, and changes the
direction of industry, but does not increase production; war a
business as truly as agriculture, and needs similar resources,
materials, provisions, and services, 422. "Raising money" no
more necessary in time of war than peace, 423.- Except for obtain-
ing foreign assistance.

CHAPTER VIII.-Economy of the War System, 425.—War the greatest
fact in public consumption; not accidental; consisting of (1) a per-
manent military and naval force; (2) constant preparations; (3) large
national indebtedness; British statistics in proof, 426.- Statistics
of European armies; muster roll of the British army, 427.-State-
ment of national debt of each European power, 428.
Small pro-

portionate amount required for civil service in Great Britain, 428.

Rapid increase of war expenditures; statement of Mr. Gladstone, 429.

-War expenditures must be greatly increased by the revolution in

naval warfare inaugurated in the United States during the Rebellion;

the “Merrimack" and "Monitor," 430.-Questions whether new and

improved ideas of international intercourse are not quite as desirable

as new engines of human destruction, 431.-Condition of the United

States, 431.- Modern war debts will never be paid until the war

policy of nations is changed, 432. — Is war a moral necessity? would

not the same common sense that establishes courts of justice for

individuals, establish a similar institution for the settlement of inter-

national disputes? 432. - Folly of rival armaments, 433. — Changes

in war armament, 434. — Influences adverse to war; (a) commerce;

(b) increasing intercourse; (c) education of the masses; (d) example

of the neutralization of the American lakes and the Black Sea, 435.

A congress of nations probable, 436.-Motion of Mr. Cobden in

House of Commons; Lord Palmerston's declaration; the French

emperor's proposal; declined only by Great Britain, 437.-Reply

of Emperor of Russia, King of Prussia, and other monarchs, 438. -

The public press in favor of disarmament, 438 and 439. The

question rests with Great Britain, France, and the United States, 440.

CHAPTER IX. —Economy of Public Education.—Objection to compul-

sory education in England not appreciated in the United States,

440.-Economic results of education; (1) prevents pauperism and

crime; (2) creates higher economical condition, 441.—Scotland and

the United States as illustrations, 442.-Secures more uniform dis-

tribution, 443.

CHAPTER X.-Reproductive Consumption.—Its character and origin;

necessity for the use of reproductive capital, 444. — Importance of

frugality, 445. —What amount of reproductive consumption indis-

pensable; (1) capital must support labor, 446.- Capital must provide

for the increase of population; must supply its own wants, 447.-

Must support government, 448.—What amount of reproductive con-

sumption is desirable? 448.- Little occasion to ask this question in

a normal state of society, 449. — The degree somewhat determined by

geographical position and political relations, &c., 450.-Desires to

spend unequally developed in different communities, 451.

CHAPTER XI. Population. Reference to the theory of Malthus ;
his two postulates, 452.-Three fallacies; (1) as to subsistence;
(2) as to propagation, 453. (3) The supposed necessary relation