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Elements of Political Economy Elements of Political Economy With Special Reference To The Industrial History of Nations By Robert Ellis Thomson, M.A. Professor of Social Science in the University of Pennsylvania and Member of The American Philosophical Society “The true greatness of kingdoms and estates, and the means thereof, is an argument fit for great and mighty princes to have in their hand; to the end that neither by over measuring their forces, they lose themselves in vain enterprises nor on the other side, by undervaluing them, they descend to the fearful and pusillanimous counsels.” - Lord Bacon. Chicago New York The Werner Company Copyright, 1875, by Porter a Coates Copyright, 1882, by Porter a Coates Copyright, 1895, by The Werner Company Digital Edition prepared by Gary Edwards [email protected] 25th July, 2006 Preface This work forms a third and revised edition of the author's "Social Science and National Economy," published in 1875, and in a revised edition in the following year. The author retains his preference for the earlier title, but the general use of the term Political Economy to designate this science renders it desirable to make this change. The author of this book has had a twofold purpose in its preparation, - first, to furnish a readable discussion of the subject for the use of those who wish to get some knowledge of it, but have neither the time nor the inclination to study elaborate or voluminous works; secondly, and more especially, to provide a text-book for those teachers - in colleges and elsewhere - who approve of our national policy as in the main the right one, and who wish to teach the principles on which it rests and the facts by which it is justified. Of course the book is not exactly what it would have been had either of these purposes been kept singly in view. Some explanations are given, which are here only because this is meant to be a textbook; there are discussions of a political kind, for instance, in the second chapter, whose presence is necessitated by the fact that no specific instruction in political philosophy is ordinarily given in our college courses, and the teacher of National Economy cannot always assume that his classes are already familiar with the conception of the state in its full significance. On the other hand, in the closing chapters, what the theological controversialists used to call “the present truth" has been stated and defended with a fullness which would ordinarily be needless in a textbook, and it is suggested that in the use of those chapters a selection be made, and the rest omitted. But it is believed that nothing has been inserted, and it is hoped that nothing has been omitted, whose insertion or omission will interfere with either purpose of the book. The form of the book is entirely different from the ordinary arrangement under the three rubrics, "Production, Distribution and Consumption." The method pursued of itself excludes that artificial and symmetrical distribution of its parts which - the author believes - sacrifices life and reality to system. Whatever interest or other merits the book possesses it owes to the method which underlies its construction. In so far as the author has succeeded in being faithful to that method, he must have succeeded also in showing that this science is not one that is "up in the clouds," but one that touches on human life and the world's history at all points. The author has had access to the library of the late Stephen Colwell, Esq., now in possession of the University, and only regrets that he has not been able to use its treasures more freely. It contains some eight thousand books and pamphlets, whose collection occupied Mr, Colwell's leisure till his death in 1869, and it embraces nearly every important book, periodical or pamphlet on the subject, that had appeared in the English, French or Italian languages, besides a large number in German and Spanish. Of the books that the author has. drawn upon, the writings of Mr, Henry C. Carey hold the first place. Then come those of his school - Dr. Will. Elder, Hon. E. Peshine Smith (especially in chapter III.), Dr. E. Duhring (chapter I.) and Stephen Colwell (chapter VIII.). Free use has also been made of the writings of Sir Henry S. Maine and Rev. E. Mulford (chapter II.), W.R. Greg (chapter IV.), Cliffe Leslie, Maine, and E. Laveleye (chapter V. ), W.T. Thornton (chapter VII.), R.H. Patterson (chapter VIII,), J. Noble (chapter IX.), and Edward Young (chapter XII.). Other authorities are specified in the notes appended to various paragraphs. For the correction of many small and some large errors, and for suggestions which have contributed to whatever completeness of discussion or other merits the book possesses, the author is greatly indebted to the kindness of Cyrus Elder, Esq., of Johnstown, to Joseph Wharton, Esq., and especially to his friend Wharton Barker, Esq., to whose encouragement this book owes its existence. University of Pennsylvania. Contents. Page Chapter I. Definition and History of the Science. 11 Chapter II. The Development Of Society. - The Nation 32 Chapter III. Wealth And Nature. 41 Chapter IV. The Science and Economy of Population. 49 Chapter V. The National Economy of Land. 70 Chapter VI. The National Economy Of Land (Continued). – 101 How The Earth Was Occupied. Chapter VII. The National Economy of Labor. 115 Chapter VIII. The Science and Economy of Money. 142 Chapter IX. National Economy of Finance and Taxation. 179 Chapter X. The Science and Economy of Commerce. 197 Chapter XI. The Science and Economy of Manufactures. – 219 The Theory. Chapter XII. The Science and Economy of Manufactures. – 267 The Practice Chapter XII. The Science and Economy of Intelligence 365 and Education. Political Economy. Chapter First. - Definition and History of The Science. § 1. Political or National Economy is that branch of the science of man which treats of man as existing in society, and in relation to his material wants and welfare. It is therefore, a subdivision of the science of Sociology, or the science of social relations, which itself is a subdivision of the greater science of Anthropology, or the science of man. § 2. It has been objected by some that there can be no such thing as a science of man. "Science," they say, "deals only with things whose actions and reactions can be foretold, after we have mastered the general laws by which they are governed. The test of science, as Comte says, is the power of prediction. There is a science of Chemistry, because there is a possibility of foretelling what compound will be produced by the union of any two elements or known compounds. But man is not governed by laws of that sort; he is a being possessed of affections and a will, which often act in the most arbitrary way, - in a way that no one can foresee or predict." This objection expresses a truth which can never be left out of sight. If we ignore it we shall miss the conditions under which man's material welfare is to be achieved. Men can never be put to a good use of any sort, while they are regarded or Elements of Political Economy. 12 treated as things. To do so will be to keep them poor, as well as to degrade them morally; for the best work and the wisest economy can be got out of them, only by bringing their free will into play in the desirable direction. But the possibility of constructing a science of man does not rest upon the power to foresee the line of action that each individual man will pursue. Man lives in a world which his will did not create, and whose "constitution and course of nature" he cannot change. If he act in violation of its laws, he must take the penalty. Thus if he indulge in habits that contravene the constitution of his moral nature, then moral degradation, unhappiness and remorse will be the necessary results. Because there is such a moral "constitution and course of nature," there is a science of ethics, which enables us to predict, not the conduct of each individual man, but the consequences of such conduct, whatever it may be. And there exists equally for society an economic "constitution and course of nature;" the nation that complies with its laws attains to material well-being or wealth, and the nation that disobeys them inflicts poverty upon itself as a whole, or upon the mass of its people. To learn what those laws are, is the business of the student of social science; to govern a nation according to them is the business of the statesman, and is the art of national economy. While men are beings possessed of a will, they ordinarily act from motives. This is especially true of their conduct in regard to their material welfare; in this connection the same motives act with great uniformity upon almost all men. The same wants exist for all; the same welfare is desired by all; so that in this department of the science of man there is so little caprice, that there is nearly as much power to foresee and foretell what men will do, as in some of the sciences to foresee the actions of things. Nearly, but not quite so much; for while men are agreed as to the end here, there is room fol difference of opinion as to the means, and consequently for variety of action - for wise and unwise ways of procedure. § 3. What the science of man and of society lacks in certainty, Society a Primary Fact.
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