Dbananjayarao Gadgil Library I111m 11m ~I ~lIllilllll mIl GlPE-PUNE-012319 POLITICAL ECONOMY A HISTORY OF ECONOMIC DOCTRINES J'BOH THE TIHE or THB PHYSIOCRJ.TS TO TRB PRESBNT DAY By CHARLES GIDE Prqf.... r oJ &daJ E

AUTROBIZBD TRAXIIL.A.TlOK noll TBB 811ColflJ RKVlBllD AND A.UGIIRNTIID BDmo. o. 19J. By R. RICHARDS, B.A.(CANTAD.) D/1m1/ 8110. 700 pagBl. Cloth

PRINCIPLES OF POLITICAL ECONOMY By CHARLES GIDE

TIux~UTBD I'BOI( TOB BIGBTII BDITIO. BW PRorESSOR C. W. A. VEDITZ De"'11 8110. '120 pag81. Cloth PRINCIPLES OF POLITICAL ECON01\IY By CHARLES GIDE

TRANSLATED I'ROlI TIIlI TWENTY-TII1IID FRl!NI.'II EDmOll By ERNEST F. ROW, B.Sc. Demy 8vo. 544 pages. Cloth POLITIOAL EOO.NOMY

BY CHARLES GIDE PROJ'BSSOB OJ' SOCIAL ECOIfOllICS IN THB J'ACULTY OJ' LAW IN THB UNIVJ:JtSITY OJ' PAJtIS

AUTHORIZll:D TRANSLATION FROM THll: THIRD EDITION (11118) OF THll: "COURS D'tCON01UR POLITIQUE"

PROFESSOR WILLIAM SMART BY CONSTANCE H. M. ARCIDBALD M..A.

GEORGE G. HARRAP & CO. LTD. LONDON CALCUTTA SYDNEY x

Ff... I{>a/JIi.hH, W.O. Z R~: March 1916 December 19r1 M"~192f) A"gu.tI9U

Print04 ... Gnal Brita... at THK BALL.NTYNE Puss b, SPOTTISWOODE, BAI.t.AMYNE & Co. LrD, Colched.. , Londoto ,. Elan .. TRANSLATOR'S PREFACE

THIS third edition of Professor Gide's Coura d'Economie politique has been carefully revised by its author in order not only to bring the figures up to date, but, so far as is possible within the limits of . one volume, to keep abreast of the latest changes in faets and ideas. It will be found, therefore, that new chapters have been added and several of the old ones entirely re-written. As the book is intended primarily to help French students in preparing for their examinations in the Law Faculty of Paris, the method employed by the author has been not so much to exhaust a few subjects, as to cover the whole ground of Political Economy, dealing with each question in a concise but critical way. In the translation I have done my best to follow the thought of the author. Nothing distinctively French has been eliminated, and it may be that examples in the text will be found to apply at times to French rather than to English conditions. But it has been thought good for the student of Political Economy to see the funda­ mental and familiar questions of his science pose themselves in slightly different forms under the influence of another race and another tradition. So he is reminded of the human element which is at once the main difficulty and the main interest of Political Economy.

CONSTANCE H. M. ARCHIBALD CONTENTS

INTRODUCTORY

CHAPTER J: ECONOMIC SCIENCE rAoa I. THB OBJEcr 01' POLITICAL ECONOMY 1 n. WHETHEB THERlI ABE NATt1BAL LA. W8 Ilf POLITICAL ECONOMl' 4 III. Row EOONOMIO SCIENCB 'WAS CoNSTITUTED 7 CIIAPTER 11: THE VARIOUS ECONOMIC SCHOOLS I. SCHOOlS.is DISTINGUISHED BY THIUB METHODS 11 II. SCHOOlS AS DISTINGUISHED BY TaEm SOLUTIONS 18 (A) TaE LmUAL SCHOOL 18 (B) TaB SOOIALIST SCHOOlS 22 rC) STAT. SOOULISM-THB ROLB 91' THB STATil 26 (D) CmuSTIAN SOOUL RBlI'olUl 30 (E) THB "SOLmABlTY II SOHOOL 32

CIIAPTER III: WANTS AND VALUE I. THB WANTS 01' MAlI' 35 II. UTILITY 40 Ill. WHAT IS V ALUB , 44 IV. WHAT IllAKES VALUE' 47 [A) TaB LABOUR THBOR'! 49 (B) FINAL UTlLITY 53 V. Row VAL17B IS MUSl1BBD 57 VI. Row UK STANDAED 01' V ALUB IS ConBcrBD-llII'DBJ: NUMBERS III

Boon: I: PRODUCTION PART I: THE FACTORS OF PRODUCTION CHAPTER I: NATURE I. TaB ENVIBONMEN"r 66 II. RAw MATElWL 71 III. MOTIn FORoEs 73 IV. TaE LAw 01' DIlIDlII'lSHING Oll NON-PBoPOBTIOIUL RlITUllIfs 77 V. THB ILLUSIONS TO WHICH MACHINERY HAS GIVBlII' RISB 82 VI. WHETHU. MACHINERY IS DETlUlIIlINTAL '1'0 THB WORKING Cu.ss.~ 85 VIL EMIGRATION AND CoLONISATION 90 vii VllI CONTENTS '.&01 CHAPTER II: LABOUR I. THE PART PLA YED BY LABOUR IN PRODUCTION 94 II. How LAnOUR PRODUCES 96 III. ON THE EVOLUTION OJ' IDEAS CoNCEIlNING THB PRODUCTIVBIf£88 OJ!" LABOUR 9S IV. PAm AS AN ELEMENT OJ' LABOUR 103 V. TIME AS AN ELEMENT OJ' LABOUR-LENGTH OJ' THB WonING LtJ"B 106 VI. ApPRENTIOESHIl!" AND PROFESSIONAL EDUOATION lOS

CHAPTER III: CAPITAL I. THE Two CoNOEPTIONS Oll" CAPITAL 113 II. PRODUCTIVE CAPITAL AND LUORATIVB CAPITAL 117 III. WHAT IS MEANT BY THE PRODUCTIVITY OJ" CAPITAL Jl9 IV. FIXED CAPITAL AND CIRCULATING CAPITAL 122 V. How CAPITAL IS FORMED 124

PART II: THE ORGANISATION OF PRODUCTION CHAPTER I: HOW PRODUCTION IS REGULATED I. OJ! BUSINESS ENTERPRISES AND OJ" THB CoST OJ" PRODUCTIOll 127 II. THE AUTOMATIO REGULATION 011' PRODUCTIOll 131 III. CoMPETITION 134 IV. OVER-PRODUCTION AND THB LAW 011' MARKETS 139 V. CRISES 14.2

CHAPTER II: THE DIVISION OF LABOUR I. THE DIFII'ERENT MODES OJ' THB DIVISION 011' LABOUB 150 II. THE CoNDITIONS OJ" THB DIVISION 011' LABOUR 152 III. THB ADVANTAGES AND DISADVANTAGES OF THE DIVlSIOll D' LABOUR IG4

CHAPTER III: THE CONCENTRATION OF PRODUCTION I. THB STAGBS OJ" INDUSTRIAL EVOLUTION 157 II THB LAw OJ" CoNCENTRATION 161 III. SPECIALISATION AND INTEGRATION 011' INDUSTRY 165 IV. THB LABOB STORKS 167 V. HOHll WORK 172 VI. INDUSTRIAL EVOLUTION IN AGBIOtrLTUBAL PRODUCTIOB 178

CHAPTER IV: ASSOCIATION FOR PRODUCTION l ASSOOIATIONS 011' LABOUB ISO n. ASSOCIATIONS 011' CAPITAL 184 iII. TRUSTS AND CARTELS IS9 IV. AGBICULTUBAL ASSOCIATIONS 195 V. INDUSTRIAL Co·OPERATlVE ASSOCIATIOB 200 CONTENTS CllAP'!ER V: PRODUCTION BY THE STATE L TIl. DBnLOPHDT 01' STATII AIm H11lIIlCIP6.L EJrrDPJU.IU 204 n. TllII D.uraBU 01' STAn ,,1m M17lI'ICIPAL EBTBBPBI811 2011 m. :611 DIJ'I'DUT lUTKOD. 01' Sun EBTBBPBI811 213

BOOK II: CIRCULATION CIIAPTER I: EXCllANGE L HISTORIOAL SKBTCH 01' EXCBAlIIOIi 1111 U. TIl. BRUKINO-t7l' 01' BARTBB INTO SALII AIm PvBaw!. 2111 UI. EXOBAlIIOIi VALl1l1 OB hIOIi 221 IV. Ts. Lt. W 01' Sl1PPLY .llQ) DEIUJI'B 22.') V. VABUTION. m hIOli 231 VL TlllI ADUNUOIII 01' EXOBAI'I'oli 237

CllAPTER II: TRANSPORT

I_ TIl. DUI'IOl1LTIBS .llQ) TIIB CoST 01' TauSfOBT 240 U RAILWAYS 2411 UI. TlllI MlIBaul'TILIII Mumll 255 IV. PORTS 263 V. CANALS A1m NAVIOABLII WAYS 2117 VL HODIII 011' TIl. TuNSHISSION 011' TB0110B'l' 270

CHAPTER Ill: MERCHANTS I. TlllI HISTORY A1m TlllI FuNCTION 01' MBBOBANTI 272 U. STOCX EXCHANOES AND Tnn BABOAINS 2711 III. WJlIOBTS AND MBASl1BES 281

CHAPTER IV: METALLIC l\IONEY L HISTORICAL SUTCH 01' MONEY 283 U. WBETlIBB MONEY RANKS ABon OTlIBB FoRMS 01' WULTIJ 287 m. WBETlID METALLIO MONEY IS DESTINBD TO ULL llmEl'II'l'ITBLY IN V ALl111 291 IV. TlllI CoNDmONS WHICH Ol1GBT TO DB F1n.I'Iu.Jm BY ALL GOOD Mol'fBY 29-1 V. GBBSBAH'S Lt. W' 297

ClIAPTER V: MONETARY SYSTEMS

L TIIB NEOBSSITY I'OIl ElIl'LOYINO SBYBllAL MBTALS .llQ) 'l.BII DInI- CULTIBS WHICH RESl1LT Ts:.uulloH 300 U. How IT IS TBAT BDlBULLI8T Col1I'l'TBIES BULLY ILlVB BtTT ONB MONBY 3O~ Ill. WBETlID IT IS ADVISABLII TO ADOPT DB MONOliETALUSl' SYSTEH 3(l~ A x CONTENTS rA08 CHAPTER VI: PAPER MONEY I. WlrBTlBB lliTALLIO Mony CAN BE REPLACED BY PAPBB MONEY 3U II. WHETHER THE CREATION OJ' A PAPER MONEY IS EQUIVALBRT TO TH1I: CREATION OJ' WEALTH 318 m. OJ' THE DANGERS WHICH RESULT I'BOM THB USE OJ' PAPER MONEY Am> OJ' THE MBANs OJ' PREVENTING THEIl 321 IV. THE Cmi:QUB 3240 V. How THE IIIPBOVBIIBl'I'l'8 m EXClU.'NGB TBlm TO BJm(G 178 BACK TO BARTEll 328

CHAPTER VII: INTERNATIONAL EXCHANGE I. WHAT II17ST BB UNDBBSTOOD BY THB BALANCB OJ' TRADB 330 II. How THB BALANCB 01' AccomfTS IS lliINTAINED 335 m. WHElIBIN CONSIST TH1I: ADVANTAGES OJ' bTBBNATIONAL EXClU.'NGlI 338 IV. WHY bTBBlUTIONAL TRADB IS NECES8AJLILY DETllIIIBNTAL TO SOlll:B bTBBESTS 3402

CHAPTER VIII: COMMERCIAL POLICY I. HISTORICAL SKETCH OJ' mBBNATIONAL TRADlI 3.40 II. THE PRoTBCTIONIST PosmON 352 III THE FREE TB.ADE PosmoN 357 IV. Trui: SYSTEM OJ' CoIlllERCIA.L TREATIES 366 V. Trui: TABIFJ' LEGISLATION OJ' FRANCB 370 \'"1. BOUNTIES ON PRoD17CTION 378 VII. TB.ADB WITH TH1I: CoLON'IBlI 380

CHAPTER IX: HOW CREDIT IS O:r..TLY AN EXTENSION OF EXCHANGE L MEANING OJ' CREDIT 38' II. HISTORICAL SKETCH OJ' CREDIT 386 III. How CREDIT ENABLES MONEY PA YIIENTI TO JIB DUPBNSD WlTB 389 IV. CAN CREDIT CREATB CAPITAL' 391 V. J..AND CREDIT (CUDIT FONCIBR) 39' VI. AGRICULTURAL CREDIT 398 VII. POPULAl! CREDIT 402 VIII. PuBLIO CRBDI'l'-TIm F11ND8 iOS

CHAPTER X: BANKS

L THE FuNCTIONS AND TH1I: EVOL17TION OJ' BANX8 413 II. DEPOSIT!! 417 III. DISC017NT 419 IV. TIm IsSU1I OJ' BAlrlt-NOTES 4021 V. DIFJ'EBENCES BETWED THE BAlrlt·NOTJ: Am> PAPEB Mo::.Tr 424 VL MONOPOLY OR CoMPBTITION-TuB SUTE BANK 0. THB ProvATII BAlrlt 4025 VII. THB GREAT BANJtS OJ' Iss17B 429 CoNTENTS xi UOB VIII. REG17LATIOlf Olr Issv. '33 IX. FOUIGlf EXOJUlfGES 440 X. THE RAISING Olr TUB RAn Olr DISOO17lf'l' 446

BOOI{ III: DISTRIBUTION PART I: THE DIFFERENT MODES OF DISTRIBUTION CHAPTER 1: THE PRESENT MODE OF DISTRIBUTION I. TulllNEQ17ALJTY Olr WULTU 451 II. How DISTlUBUTION TAKES PLACB 454 III. THlI BASIS 01' TUlI RIGHT 01' PROPERTY 458 IV. TuE RIGHT OJ' PROPERTY IN REGABD TO ITS OJI.JBCT Alf1) ITS SUB.JECT 462 V. THlI RIGHT 01' PROPERTY WITH REGABD TO ITS ATTBIB17TU- S1700BSSION 466 CHAPTER II: TIlE SOCIALIST MODES OF DISTRIBUTION I. EQ17AL SHARING 473 II. ComroN'ISM 477 Ill. .. AssocuTIONISM .. 480 IV. COLLBCTIVIS1oI 483 V. Co-OPEBATISM 492

PART II: THE DIFFERENT CLASSES OF SHARERS INTRODUCTION I. THlI SOCUL CLASSES CIIAPTER I: LANDLORDS L THlI OWNBBSHIP OJ' LAND 502 IL lNOOMlI FROM LAIlfD--TuE LAw Olr RBNT 608 III. TuB RISlI IN RENT AND SURPL178 V"-Lv. 1512 lV. THB LEGrmtloY 01' LAND RENT 15115 V. THB HIRING-OUT OJ' LAND 619 VI. TSB SySTBJ4 01' MiTAYAGJI 623 VII_ SYSTEMS Olr LAND NATIONALI8ATION 525 VIII. SYSTEMS FOB Buu:ING-t7P LANDED PROPERTY 62& IX. SYSTEMS FOB TUlI CoNSERVATION OJ' LANDED PROPBBTl' 636 X. URBAN PROPERTY 639 XI. THE OWNEBSHIP 01' FOllOTS 541 XII. THE OWNERSHIP 01' Monts 5« XUI. TaB OWNERSHIP OF WATD 549 Xli CONTENl'S

CHAPTER II: THE CAPITALIST RENTIER I. THB SITUATION OJ' ~ BENTlER 61S1 n. HISTORICAL SKBTCH OJ' THB Lou AT lNTuBs'l'-USUIlY 61S4 m. THB LBGITDlAOY .urn THB RBGULATIOB OJ' IBTImUT 657 IV. WHY. CAPITAL PRoDUCES IBTImEST 662 V. THE RATE OJ' INTEREST 668 VI. DoBS THB RATE OJ' INTBREST TBND TO FALL' 660

CHAPTER III: WAGE-EARNERS L WHAT IS THB WAGB·BARNER? ..,72 n. HISTORIOAL SKBTCH OJ' THE WAGE-SYBTEJI 674 In. THE WAGE CoNTRACT 677 IV. THE LAws OJ' WAGBS '68/S V. THE RISB IN WAGES 684 VI. TRADB UNIONS 699 VII. STEIKBS 601S VIII. CoNCILIATION.urn AlmITEATIOB 613 IX. THB RBGULATION OJ' LABOUR 618 1. THE LIlIDTATION OF THE WORKnfG DAY 617 2. MBASUIlES OJ' HYGmNB.urn SECUIlITY 824 3. THE LEGAL MnmroK WAGB 624 4. INTERNATIONAL LABOUll TUATIBS 625 X. GUARANTEBS AGAINST RISKS 626 XL PRoFIT·SHARING AND Co,PARTNERSHIP MJ XII. CO·OPERATIVB ASSOCIATION FOR PRoDUCTIOlf 149 xm. THB FUTURE OJ' THB WAGB·SYSTEK 652

CHAPTER IV: THE ENTREPRENEUR L HISTOEIOAL EVOLUTION OJ'THB ENTRBPRBNBO" 857 n. WHAT IS PBOJ'IT' 660 IlL THE LBGITDlAOY OJ' PRoJ'IT 664 IV. THEABOUTION OJ' THE ENTBBPRBNBU& 170

CHAPTER V: THE DESTITUTE L THE DIFnRBNT CATEOOEIBS OJ' DESTITUTlI 673 II. THB DANGBRS OJ' POOR REUBI' 675 IlL TxB OBOANISATIOB OJ' POOR RBLID' 178

CHAPTER VI: THE STATE L THE ROLB OJ' THB STATB Ilf DIaTEIBUTIOB 682 II. THE SHARB OJ' THE BTAD Ilf DIaTEIBUTIOB-TAUTIO:W 684 CONTENTS XUl rAaa BOOi{ IV: CONSUl\IPTION CHAPTER I: CONSUMPTION IN ITS RELATIONS TO PRODUCTION I. WHAT IS THB MEANING 0 .. TilE WORD" CONSUJQ>TIOll' " 7 693 IL WHBTlIl!lB PaoDUCTION WILL ALWAYS KEEP PACB WITH CoNSUlIP. TlOlf-TllB LAWS OJ'MALTHUS • 695 III. TuB ROLB 01' THB CONSUJlBB-SOClAL LEAOUES 01' BUYERS 700

C~I.~PTER II: EXPENDITURE L TuB DrsTBIBUTlON 01' EXPENDlTUBB '103 II.SOClJllTlBS I'OR CONSUllPTlON 705 III. HOUSING-BUILDING SOClBTlES '106 IV; CREDIT I'OR CONSUMPTION-PAWNSHOPS 712 V. LUXURY 71" VI. NOXIOUS CoNSUJlPTlON-ALCOJlOLlS!II '117 VII. ABSBNftEISM '122 VIII. STAn CoNTROL 01' CONSUMPTlOlf 723 IX. PvBLlO EXPBNDITURB 729

, CHAPTER III: SAVING I. TllB Two ASPltOTS 01' SAVINQ '133 IL TaB ConmoNS 01' SAVING 138 IlL INSTITUTIONS FOR FACILITATING S.l\T.fQ 141 IV. lNSUBANOB 745 V. INVl!lSTIIBNT 749 VL TllB EaoOBATlON O' CAPITAL '152

.INDEX 751 INDEX

• IoDowlDII " number ,1l1li1'" tbat 1& I'. II Dote OD the l1li._ '. qaeetloll wllleIIla _ to

AB8UTBlIiI8I1, 722, 723 Betting, 728 A batinence, 125 Billa of exchange, 360, 387, 440 Aooeaaion, 460 Bimetallism, 301-308, 309-313 Aooidente, 630 Bismarck, PriDce, U8, 365 Aooounte, balance of, 332 Bohm· Blower'" 565 Adulteration of lood, 33, 725 Boisguilbert, 288 Alt&lIon, 1" n Bouoher, M.,713 Agrioulture, 08 Bounties, 260, 378-380 Alooholitm, 717-722 Bourgeoia, Leon, 34 II Alglave, Professor, 721 Buchez, 649 .AlmIIgiving. 677 Building societioe, 706-712 Anarohiat .ohool, 25 n, 477, 494" Bullioni&m, 345, 346 II Anti·Corn Law League, 347, 701 BU1ere. Sooial Leagues of, 700-703 Apprentioeship, 108-113, 156 Appropriation, 459 Arbitrage, 446 Arbitration, 613-616 Aristophanea, 208, 299 " Aristotle, 8, 120, 221, 316 ... 470, 554, 556 Alllignata, 322 " A&sooiation, induatrial oo-operative, 200- 204 A&sooiationi&m, 480-483 Aaaooiationl, a~oultural, 195-·200, 275 oonaumera, 275,661,701, 706, 710 II, 744 Aatronomy, II Atmosphere, 67-68 Auatrian sohool, the, 16 AutonomoUl produoer, 127, 163.1114, 170. 573 d'Avenel, 575 Averagee, 7

B400N, 12, 22 Bagehot, 126 Bank of Amsterdam, 413, 414 Bank of England, '13, 426, 432, 435, 438, 440 Bank of France, 413, 428, 429-4.32, 435. 436, 437, 440, 448 II Banking principle, 433, 437 Bank·netel, 421-423 dillerenoea between paper and, '24-425 regulation of iaaue, 433-440 Banka. 413-450 funotieUl and evolutioDl of, 413-417 Bamlcand, M., 725 Barter, 58, 130. 219-221. 328, 329 Baatiat., 32. 49. 51, 88, 133, 135.289, 337, 340 II, 345, 347, '57, 617 II, 662, 570, 598, 715 • Bellamy. 552 Bentham, 120, 656 Bergmann, Mr., 143 758 INDEX Competition, 32, 39, 134--138, 192, 206, Dividend, 185, 569 230, 247, 248, 483, 498 II Division of 1e.boor, 150-157. 176,239, 353 Comte. Auguste, I, 32, 34 Domestio industry. 158, 161 Conoentre.tion, 1e.w of, 161-165, 176, 415. Dumont. M.. 699, 752 II 425,499 Dwnping, 369 Conoeaaiona in re.ilwe.ys, system of, 252 Dunoyer. 18 II. 100 Conoilie.tion, 613-616 Durand aoeietiea, 401 Consumption, 4, 45, 693-756 Duties, 687 cO-opere.tive sooieties for. 275. 651. 701.706.710 II, 744 EOONOHIO man, 12, 15, 18 in its re1e.tions to produotion, 693- Eoonomy. 733 703 Eden Treaty, 346 mee.Ding of word, 693-695 Elberfeld system of relief, 678 Stete control of, 723-729 Emigration, 90-94 Consumption goods, 117 Enterprise, 183 Contingency, 6 II dangers of State and munioipal, 209- Contre.-e.coount. 292 213 Conversion, 411 development of StsteAnd munioipal, Co-opere.tion. 21, 32. 34, 138 II, 150. 163. 204-208 353, 492-496, 672 diJIerent methods of State. 213-215 Co-operative e.ssociations, 138, 671 EntrepreneUf', 127, 128, 129, 130, 132. 159, for consumption, 172. 211. 651. 672. 163. 165.184. 198. 200, 204. 209. 712 213. 657. 572. 577. 579. 582, 588. for produotion. 184, 649-652 591,595.631.657-673 CO-opere.tive credit societies_ 398 historical evolution of. 657-660 Co-pe.rtnership, 183, 578, 643-648 Environment. 66-71 CO- pe.rtnershi p tene.nt societies, 711 Equal sbaring,l73-476 Corn Laws. 347 Espinas, M., 21 ,., 157, 181 Cost of produotion, 128 Ethics. 1. 2. 37 Conroot, 229, 341 II Evolution, 21. 30. 31. 484. 485 Cre.ft, 158-159 Exchange. 3.44.45. 57. 141. 152.216-240 Credit, 131, 216, 234, 292, 384-413 advantages of, 237-240 agrioulture.1, 398-402 . advantages of internl1tiona~ 338-342 co-opere.tive societies of, 404, 744 historical sketch of. 2ltl-218 historice.l sketch of, 386-389 international, 330-343 1e.nd, 394-397 rate of. 323. 336 popn1e.r. 402-405 Exchange value. 221-225 publio. 405-413 Expenditure. 703-733 . utility of, 389-391 distribution of, 703-705 Crises, 139-149 public. 729-733 Cromwell, 259, 346. 347 Experiment. 13. 14 Currenoy principle. 433. 435. 437 Exploitation. 248. 250, 251 of colonies. \13 DA YLIGB1' Saving Bill, 734 Expropriation, 247, 403. 462, 474, "6, Dealers, 276 485,487 Debentures, 185 Extensive cultivation, 177 '" 178. 1711 Deductive method, the, 11 Deductive school, 12, 14, IS, 16 FABIAN19H, 601 II Deposits, 417-418 Factory. 160. 161 Desire.bility. 41 legis1e.tion, 578 degree of, 45 Fairs. 276 Destitute, the. 673-681 Fair tre.de, 368 different ce.tegories of. 673-675 Family, the, 31, 150. 158. 217 Determinist achoo!, 22 II FeDdaISyste~the,505 Diminishing or non-proportional returns. Final utility, 53-56 lawof,77-82 Forced currency. 424. 425 Discount, re.ising of re.te of, 446-450 Foreign exchanges, 440-446 Distribution, 3. 45, 451-692 Forests, ownership of, 541-544 different modes of. 451-496 Forethought, 105. 125.734. 738 how distribution tskea place, 454- Foundations, 465 458 Founders' shares, 186 present mode of, 451-4j3 Fourier, 23, 24, 34, 104, 137 n. 154 .. r61e of the State in, 682-684 156 ,., ISO. 181 n,2;5, '73. 479, share of the Stste in, 684-692 4SO. 493, 706 aoeialist modes of. 173-496 Eoxwell, 670 " 759 Free ooinage, 297 In~naive oultintio.. 177, 178, 179 J'ree oon'rao" 6 ln~" 30.128, 1811 Freedom 01 8l[ohange, 346 legitimacy and regolation of, 557-661 Freedom of labour, 137 '" 138, U6 rate of. 666-1169 Free trade, 346, 347, 348, 349, 350, 3111, ~ndeooy to fall, 569-672 352, 3117-366, 368 why capital prodl1C08, 562-665 J'ree..will, 6 . lDvalidity, 636-637 )'reooh Revolution. tho, 31, 131, 138 II, Invention. 97, 152, 237, 664 346, 605, 523, 1128, 529, 600, 680, Investment, 126, '134, '138, "9-762 724, 7211 J'rDgalit:y, 37 Ju.. 'f, Claudio, '911 Fundi, 'be. 60lS JelJenon, 409 JevoDB, 105, 143, 287, 328, 691 • G.JlBLJ1(G, 728 Join' 'tack companies, 670, 671 Garden oities, 708 Journeymen, 575 / George, Henry, 1" '" 1111 '" lS14 '" 1S27, Juglar, M.., 149 .. "7 686 J o.at wage, 693, 694. 653 Goods, '3, 44 Greaham', Law, 297-300, 304, 3011, 323, lUJr'f,6511 426 King, Gregory, 226 II Guild .ystelD, un, 100, 182, 218, 346, 5711, 676, 600 II, 653 LABoUB, 60. 65, 66, M-1l3, 152, :118, Guyot, Yves, 697 II, 6118, 653, 657, 659, 461 700, '102 II, 720 _iations of. 180-184, 239 regulation of, 616 Bue eOCI&TD:s, 399 LaboUllegialation, 2'1, 204. II Habita, 40 LaboUl theory 01 the 01101180 01 value, 49:' Health and Morale 01 Apprenti08l Aot, 53 618 . Labour treaties, international, 625-626 Hedonistio principle, 18, 2'1 II, 248 Lafitte, 294 Hegel, 28 Law.r Joire, 9, 10, 111. 28, 27, 30, 200. Hildebrand, Bruno, 38'1 " 346, 368, 658 Hill, Ootavia, '112 Land, 63, 66 II Hill, Rowland, 271 hiring ou, of, 1S19-622 Hiatorioalachool, the, 12-14, lIS, 28, 158, OWDership of, 502-608, 1S20 351 t.&nd banke. 400 Hiatory, 1 II Landlol'dI, 502-5:il Hoarding, 298 Languages. eoienoe of, 1 Home indl18try, 159, 161 Laasalle, 589, 590, 649 II, 739 • Home wage. earning, 172-176 Laveleye, tmile de, 142, 1" II, ISUI • Home work. 1;2-1 ;6, 623 Law, 1. 2, 11, 117 Hugo, Viotor, 590 Law, e\)onomio, 6 Hygiene and 88ourity, meaa\l1'8ll of, 624 Law, John, 278, 288, 31" 318 II, 413 Leclaire, 6U IJlHJ&UL Bank 01 Germany, 432, 43611 Legal ~nder, 294. 297, 301, m ImperialiaJD, 349 Le Play, 31, 158 II, 159 II, 469, 537, 6511. Incidence, law of, 361, 690" 699. Inoome, ", 115.. '55 LeroDlt, 32, 34. 480 IndeJ: number&. 61-64 Leroy-Beaulien, M.,511I, 528, 557 .. 5'10. Indifferenoe., law 01, 222 598, 599 .. 645, 691 II, 698, '118 .. I ndividualiat sohool. the, 18 745. Induotive method, the, 11 Leeoure.l" " Indl18trialevolution. stages of, 157-161 Liberal school. 'he, 18-22. Mo1l7, 30, 31, in agrioultural produotion, 1'16-180 192, 195, 209, 2411. 368, 426, 428, Industrialisation 01 agrioulture. 177 433, 499, 539, 589, 597, 598, 607, Inheritance, 30. 33 . 611, 616, 633, 652, 659, 670, 683, IDBorance, 128 .. 6'18, 745-749 700, '102. 7u" '125, 728, '135. against loss of capital, 567 739. against loss 01 wages, 64O-M3 List, Friedrioh. U7. 351 capitalist, 741 Localisation 01 indl18try, 166 _operative, 741 " Lock-out.. 608 II guarantee association for, 767 Loa flu .a-c.u..lG, 1st mutual, 747 Lott.eriee, 728 etate, '148-749 LnzUly. 714-717 Intl'grotion 01 industry, 162, 165-167, li6 Luuatti, M.. 404. 440 760 INDEX MACUIl'l'BRY, 82-90,154,156,163.178 Ophelimity. n Male labour, adult, 620-623 Organio IOhool, the, 17 Malthus; 10, 20 A, 71, 587, 675, 677, 696. .OrthodolllOhool, the. 19 699 • . Over· production, 134. 139-U2, 144, U3 laws ~, 695-700 Owen, Robert, 23 A, 201, 477 ... '79, Management, 664-665 490 1I,~93,'94,658,665 Manohester school, 18 A, 349 Manual labour, 96 , PAIl'I' and labour, 103-106 Manufactory, 159, 160, 161, 218 Paper money, 314-329 Manufacture, 9& oonventional, 315 Markets, 139-142, 223 A, 272, 273 A, 276 dangers arising from 1188 of, 321-324 Marshall, 57 A, 594 differenoea between the bank. note Marx, Karl, 24, 49, 53, 144 A, 146 A, 163, and, 424-425 416, 451, 473, 484 A, 485, 486 A, fiduoiary, 315 498, 559, 577, 639, 665, 666, 668 representative. 314, 434 Materialism, historical, 24 Pareto, ViUredo,M.,l64A,l71.'74I1,476 Mathematical school, the 16 Patten, Professor, 734 Mercantile Marine, 255-263, Pawnshops. 712-714 Mercantilism, 8, 9, 291, 345, 350 Peabody Fund, 710 A Merchants, 272-282 Peel, Sir Robert, 347.432,435 history and function, 272-275 People's banks, 404. 744 Mercier de 1110 Riviere, 9 Physioorats, the. 3. 6. 9. 10. 18. 28, 98, M elayage, 522 A, 523-525 345 A, 346, 508, 517 tt, 627 Meteorology, 5 Pieoe-work, 643 Method, 11 Political economy. I, 2, 37. 43 Methuen Treaty, 346 . applied, 3 " Michelet, 520 object and BOOpe of, 1-4 Mill, John Stuart, 18.20 II, 31. 89 tt, 137 tt, rise of, 7-11 340 II ,341 A, 361 A. 392, 454, 511 tt, Politics, 1 587,649 n, 672. 751 Polyculture, 177 A Mines. ownership of, 544-549 Pools. 190 Minimum wage, 174 Poor relief. dangers of. 675-678 legal, 624-625 organisation of, 678-681 Mirabea.u, 572 Ports. 263-267 Molinari, M. de. 603, 653 Premature death, 637-638 Money, 221, 222 Prescription, 460 conditions of good, 294-297 Prio~69,60,14O,221-225,226,227 historical sketch of, 283.-287 ourrent, 223· metallio, 283-300 natural, 589 paper, 314-329 variations in, 231-237 quantity theory of, 232, 236 Produotion.3,45.65-216 systems of, 300-313 &B8OOiation for, 180-204, 483. 653 Money-changers, 413 bounties on, 378-380 Monoculture, 176 A concentration of. 167-180 Monometallism. 301-313 evolution in agricultural, 176-180 Monopoly, 136, 137, 138, 206, 229, 230, factors of, 65. 126, 216 248 its relation to CODBum ption, 695-700 Montaigne, 125 organisation of, 127-215 Montchretien, Antoine de, 7. 345 i& regulation of. 127-149 Montesquieu; 3, 8, 9, 362, 380 A, 382, 735, Sta~ 204-215 736,739 theory of cost of, 53 It, 129 More, Sir Thoma.s, 23 Profit. 30, 660-663 .. ~ . Motive forces, 66, 73-77 , legitimacy of, 664-610 Mutu&Jism, 483 aurplus, 668, 672 Profi~8haring,l83,578,643-648,651 NATIONALISATION of land, 525-528 Promissory note, 387 Natural law, 6, 27, 686, 697, 698, 611 Property, 2, 8, 15, 23, 25 II, 28, 30. 32, 33 Natural right as basis of property, 460 basis of right of, 458-462 Natural wage, 694 A free disposaJ of, 469 Nature, 9, 65, 66-94 . perpetuity of, 467 Navigation Act, 259, 347 systems for breaking· up landed, 528- 535 OOOUl'ANCY, 459 systems for oonservatioD of landed, Old age. 632 536-539 Open colony, the, 92 urban, 539-MI INDEX Prosection. 141. 346-357,73' Sme.U Holdings &DCl Allotment. A •• Pror.eotioni.t IOhool. 338 (19(111). 530 Protestant achool. the. 32 Smith, Adam, jJ. 10. 18. 49. 60. 99. 118, Proudhon, 327, 399, ~2, ~3 11,180, 483, . 150, 162, 155. 211. 221. 319, 320. 1171 346, '14. 508. 509 II, 60S, 657 Prudentiallocieiiee. mtdual, 743.7" Social economy. 3. 8 P.ycbo(ogicallcbool, the. 16 . Bocial politice, 3 Publio 6nano•• 729 II • Socialist IOhoot. the. 22-26. 30. 162, 496. Purohuing power of an object, 67 663. 655, 670. 672 8ociology.2 QUlISlf.lY, J'ran90it, II, 657 • Solidarity IOhool (eo-operative IOhool). the. 32-34. 166. 654. 655. 656. 748 R4lP7Il4Blf. 399 Speoie.lisatioD of industry. 165-167,178 Railway.. 246-255 .• of bawng, 415 Raw material. 66. 71·73 Speculation, oommercial, 665 Reoiprocity, 368 SpenoeJ', Herbert., 17, 50' II. 501 II Redem"tion. 410 Standard of life, 690 Reformation, the. 1156 State. th8\ 682-692 Reformistl. the. 492, 60' State lOOialism, 25. 26-29. 205, 731 Religion••• oience of, 1 Statiatioa. 13 Rent., 112.128. 129n,II111 Stookbroken, 278 law of. 60S-611 Stock ezch"nge•• 276-281 legitimacy of land, 1115-518 Storel, 166. 167-172 Btr!kee. 605-613 ris8 in. 612-51/S SubstitutioD. law of. 39, 73 Ramiar. 294 n. 501 II. 551-572 Sueo_ion, 466-473 lituation of. 551-553. 572 Sully. 160 Reproduction. labour of. 61 Sumptuary lawl, 724 Retaliation. 36S . • Supply and demand, 49 _, 60. 132. 133. Ricardo. 3, 10. 17. 18. 20 II. 48. 49. 112 "r 141.225-231.456.456 63 ft. 14. '" 232. 336, 341 n. 500. Swee.ting .yatem. 173 1110.511.1112.1113.1114,1116,1118", Syndicalism, 26. 492. 496, 603 689. 654. 661 Syndicatea. 138 Riske, guarantees agaioat,·626-643. . agrioultural, 198 Roch4U1 Equitable Pioneel'l, 201 de Rotbschild Endowment. 710 .. TACfrUS, 150 Rousseau. J. J .• 8 . Rousseau. Waldl!Ok. 601 Tarilliegialation of France, 370-377 . Ruskin, 3. Taxation, 128 ". 684-692 Technical edUO&tion, Ill, 156 Territory. 68-71 S4110T401l. 686, 606, 606 Thi8l'l, M.• 348 Saint· Simon, 23. 480. '81, '82, '88 Time, 66. 73 At 80. 106-108 Satiety. 31. 3S. '6 TokeD money. 297. 301. 305 Sauer beck. 63 Tolatoy.34 Saving. 124.403. 733-756 Torreoa .ystem. the, 505, 506 " oonditions of. 738-740 Trade, advantages of international. 338- institutions for facilitating. 741-7" 342 two upeotl of. 733-738 balance of. 330-336, 335-331 Savings banu, 735. 741-743 colonial, 380-384 Say, J. B .• '. 10. 17. 18. 139, 140, 338 II, dis&d vaotagee of international, 342'- 50S. 589, 657, 664 343 Scarcity, 46, 48 general, 330 _ Sohulze-Delitz.sch eocietiea, 400, '04,. "4 hiatorlcal Iketoh of international Seligman, Professor, 146, 691 a 3«-362 Serfdom, IllS. IS2 lpeCial, 330 .. Serra, Antonio, 8 Trade uniOOl, 138, 162, 293 At 675. 699- Servicea, 43, 100 605, 661 Settlement, oolonies of, 112 Tre.des, 151 Shaftellbury, Lord. 618 Transport., 72, 99. 152, 240-272 Sharehold8l'l, UI1 diffioulties and eoel of. 240-248 ShlU'eB, 185, 294 At 569 Treatiee. commercial, 366-370 Bherm&D Aot, 190 Trom bert, M.., 646 Siokness, 629-630 Truck-system, 5S1 Sismondi, 1" II . TrustB, 39" 138. 141. 163. 187.189-195 Slav8l'1, IllS. 182 Tupo-RaraDO'lflky. l4t4. • 762 INDEX Turgot. 9 n, 556, 565, 569, 570. 576. 51111 Wage-eArning 'Yltem, future of, 0112-6117 historical sketch of. 574--677 UNDER-PRODUCTION, 147, 148 Wages, 60, 128 ,Uneamed increment, 513. 527. 528 laws of, 5811-59' Unemployment, 638-643 rise in. 594--599 Usury, 30, 554--557, 561, 755 Wage-Fund Theory, the, 686-688 Utility, 40--44, 45, 48, 53. 237 Wages, Iron Law of, 588 social, 461, 462 . Walle.ce, Dr. Alfred Ruaael. 725 subjective, 221 Walraa, Professor, 516 n, 663 n, 686 total, 54 11 Wants, 35-40,41-44 Utility theory,final.-48. 49, 53-60 ,Water, ownership of, 549-551 Wealth, 36, 38, 43, 44, 45. VALORISATION. 141. 230 n inequality of, 451-454 Value, 44-61 ' Wealth 0/ Nalion., the, 10, 150, 1111 in exchange, 221-225 Weights and measures, 281-282 in use, 221 .. White ooal," 76 normal,589 Wilson, Dr. Woodrow, 348 It Values, law of. 58, Women'. labour, 619-623 Voltaire; 714 Workhouses, 679 Working day, limitation of, 811-623 WAG. contraCt, the, 577-585 Wage-earners, 572-657 . XENOPBOJI. 7, 95 It Wage-earning system, 2, 21. 23. 30,.160. • 572-574 YOOG. Arthur. 523