HISTORICAL PROGRESS

AND

IDEAL SOCIALISM

BY THE SAME AUTHOR

PRINCIPLES OF POLITICAL ECONOMY

Vol.
I.

15s.

A TREATISE ON MONEY
AND

ESSAYS ON MONETARY PROBLEMS

7s. 6d.

HISTOKICAL PBO'GKESS
AND

IDEAL SOCIALISM
AN EVENING DISCOUESE
DELIVERED TO THE BRITISH' ASSOCIATION AT OXFORD
IN

THE SHELDONIAN THEATRE,

13TH

AUGUST

1894

BY
J.

SHIELD NICHOLSON,

M.A., D.Sc.

PEOFESSOE OF POLITICAL ECONOMY IN THE UNIVERSITY OF EDINBUEGH

SECOND EDITION

LONDON ADAM AND CHAELES BLACK

1894

HISTOKICAL PKOGKESS
AND

IDEAL SOCIALISM
INTRODUCTION AND APOLOGY

DIFFICULT task has been assigned to me,

I

and

must try

to lighten the

burden with

a preliminary explanation and apology.

The

present, I believe,

is

the

first

occasion

on which the section of Economics and

Statistics has

been called upon for one of

discourses.

the

evening

The

choice

is

peculiarly appropriate to the place of meet-

iog

for in this ancient University the in-

HISTORICAL PROGRESS

AND

fiuence of Aristotle, the father of Economics,

is
still

a living force

and

it

is

so for this

reason mainly or only,

the

because he showed

way

to apply scientific

methods

to the

creature he called the political animal

nature, and he studied the

by

civil societies of

mankind with the same

intellect that
field or

fearlessness of pure

he gave to the beasts of the

the stars of heaven.

all

And

that

is

the essence of
intellect.

science, fearlessness

of

With

the history of science before

old proposition, that

us

we may convert the

proposition, that

courage depends on

knowledge, into the

new

knowledge depends
it

on courage.

There was a time when

needed courage to dissect a dead body or to

describe the motion of the earth.

In our

own time
there
is

it

is

in the social sciences that

this fear-

most need to emphasise

IDEAL SOCIALISM
lessness

of knowledge.

It

seems a bold

thing to run counter to the newest popular

opinion on the social and economic questions
of the day,

and

reckless audacity to assert

is

that an old opinion

the better.

Not only

is

the choice of an economic

subject appropriate to the place of meeting

but

also

to

the

time.

For

science,

if

science

may

be spoken of as a personality,

has begun to weary of measuring only dead

matter and the lower stages of

longs to turn

life,

and

again

to the fields of her

youth and watch the growth and decay of

the endless varieties of the mental activity
of mankind.

But although time and place seem

justify the choice of

to

an economic subject, a
if it

doubt

may

well

arise

can be

made

sufficiently popular for the purpose.

And

HISTORICAL PROGRESS

AND

the consciousness of this

difficult

doubt makes a
There
is

task more

difficult.

no

aid to be obtained from slides or specimens,

from flames or explosions

nothing but

words, and these not even technical.

of
all,

Worst

from the point of view of popularity,

will

my my

theme

seem to lack novelty and

;

argument to be unfashionable
will

for

my
be

endeavour

be to treat what

may

termed the popular myths of the future in

the

same way

as historians

have treated the

popular legends of the past.

And

it

is

remarkable fact that the age which

has

witnessed, with equanimity and even with

pleasure, the reversal of the process of the
deification

of

the

heroes,

and the

total

destruction of the golden age of a state of

nature, cannot bear to have the

same cold

reasoning applied to the future.

To

assert

IDEAL SOCIALISM
that Moses and the prophets were imagi-

nary or at best imaginative poets, that

both
scientific

is

and fashionable; but to deny

his followers are true

that Karl

Marx and
is

prophets, that
fashionable.

both unscientific and un-

THE GREAT WAVE OF ALTRUISM

Without further apology
I

proceed to

my

task.

My

object

is

to test the ideal

by

the real,
past.

the possible future

by

the actual

At

once, however, the objection will

be raised that at the end of the nineteenth

century

human

nature and social arrange-

ments are so
of the

different that the experience

is

past

only curious by contrast.

in

This

alleged

change
highly

mankind,

or

should

say

civilised

mankind, or

HISTORICAL PROGRESS
British

AND
is

more precisely
scribed
in

mankind,

de-

the current nineteenth-century

Latin as a change from egoism to altruism.

"
"

Nothing
l

says
"

our latest philosophical

celebrity

can be more out of place than

comparisons which are instituted between

society one

hundred years ago and at the

present time.

We
It

have

little

in

common

with the past.

for

may
in

be searched in vain

any

clue to the solution of the problems

which confront us
forces,

the future.

Social

new, strange, and

altogether

imus."

measurable, have been released

among

And

if

we

learn that

inquire more particularly we " the close of this century is

marked by an extraordinary development

of the humanitarian feelings," and that
altruistic feelings
1

"

the

have attained a develop-

Mr. Kidd's Social Evolution.

IDEAL SOCIALISM
merit previously unexampled in the history
of the race."

Other writers speak of the

7
'

great wave of altruism, which, like a wave o

of heat, has

warmed

equally and impartially

the masses and the classes the unjust.

the just and

The
truism
life

latest translation
is,

of the

word

al-

I believe,
l

"

the struggle for the

but perhaps the best and of others," " I would brotherly kindness." simplest is

invite
to

you

to notice

some of the evidence

this

as

the

growth of

feeling

that
is

has
the

strangely escaped attention.

What
is

greatest evil from which Europe

suffering

an

evil that has

been steadily increasing

?

during the present generation

It is un^

questionably the vast armaments, and the

compulsory conscription of millions of men.

1

Professor

Drummond's Ascent

of

Man.

HISTORICAL PROGRESS
means brotherly

AND
love,
it

If altruism

can

'hardly also

mean

militarism.

Europe stands

in yearly expectation of the greatest

war
as if

that ever occurred.

Does that look

the next century would begin with a

new

form of

altruistic

human

nature
:

Take our own country

this extraordinary

we

are forced

by

development of humani-

tarianism

this

competition in brotherly

kindness

to increase our

navy

to an unto

precedented extent, and when

find the

we come

means

it is

with the greatest

altruistic

diffi-

culty that the

most

government

of the century can persuade the most altruistic people of the

world to pay a fraction

for a glass of beer, or

of a farthing

more

submit to an equivalent displacement of

water.

Next

to

the vast preparations for war,

IDEAL SOCIALISM
perhaps the most characteristic feature of
our generation
sions
is

to be found in the dissencapital, as

between labour and

shown

in our

own

great coal strike last year, and

the
last

still

greater railway strike in America

month.
real

The

altruism that

will stand

the

monetary
expression

test as distinct

from the formal

consideration

of

distinguished

seems to
not so

consist, in

this as in other ages,

much

in a

struggle for the

life

of

others as in a struggle for the property of

others.

So much then

for the

height and the

depth of the great

altruistic

wave.

It

reminds

me

of the waves encountered

by

the pious ^Eneas in the middle of the Mediterranean, which were so high that

they

besprinkled the stars, arid so deep that the

io

HISTORICAL PROGRESS

AND

affrighted

mariners saw the floor of the

ocean
"

These ride on waves sublime

those see the ground

Low

in the boiling deeps and dark profound."

But these were waves of the

gination,

poetical imais

and of

such sort

the

great

wave of
It

altruism.
to accumulate evidence

would be easy

both from the past and

the

present to

show that neither

has

intellectually nor morally

human
the

nature, in the present genera-

tion or

present century,

changed to
use

such an extent that

we cannot

the

interpretation of the past for the anticipation

of the future.

We

must, of course,
;

allow for changes in circumstances

but

if

we

find that certain great forces in the past

for the progress,

have made

and other

forces
toler-

for the decay, of nations,

we may be

IDEAL SOCIALISM

ably certain, in the near future, of this

result at least, namely, that the
will

same causes

not produce the opposite

effects.

Let

me now

state, in the simplest form,

I shall
is

my leading
fullest

contention.

try to

show

that the ideal of socialism

to give the

play to those forces which in the

past have
nations,

caused

the

decay or

ruin

of

and

to check those forces

life

which

have been the

and soul of progress.

THE KEALITY or ECONOMIC PHOGRESS.

But

my

opponents will say

Your

ideas

of progress are not ours,

are not our thoughts
:

and your thoughts

call

what you

decay

we

call

growth, and what you

call

progress
this

we

call retrogression.
is

To some extent

objection

valid,

but so

far as it is valid I

12

HISTORICAL PROGRESS
evade
it.

AND

shall

For

I shall

only take those

elements in progress about which there can

be no dispute.
cerned with
gress.
is

The progress we

are con-

economic or industrial, prois

There

no need

for

any nicety of

definition.

Look

at the broadest aspects.

is
is

If

man

conquers nature there

progress
death.
effects

if

nature conquers
are

man
to

there

We
of

often

told

admire the

natural
survival
species
life.

selection,

and

to
in

wonder

at

the

of the fittest

the numberless

and

varieties of plant

and animal
?

Leave out man, and what do we find

millions

Countless centuries,
natural
selection

of years, of

have covered the most

life-abounding portions of the earth with

tangled jungles and impenetrable

forests.
?

And
Is
it

with what creatures are they peopled

only the
fittest

that survive

The

IDEAL SOCIALISM
truth
is,

13

that

we

find packed

and crowded
in

together at the
place,
ible

same time,
life,

the

same
invis-

every variety of

from the

germs that make the

pestilence,

up

through every gradation of parasite and

devourer and devoured, to the creature that

comes nearest to a caricature of man.

Now
mankind
period,

consider the economic progress of

in a comparatively short historical

say,

some seventy generations of

for

man.

Let biology and geology make

you a picture of England before the Koman invasion with its swamps and wastes and
forests,

and with that picture

in

your mind

pass through the length and breadth of the

land to-day.
drained,
forests

Stagnant
rivers

fens

have

been

crooked
uprooted,

made

straight,
;

and wastes

cultivated

plants

and animals are those of man's

14

HISTORICAL PROGRESS
and
if

AND

choice,

here and there there remains

a

a portion of the old order undisturbed

few miles of heath or woodland

for his caprice

it is

solely

or delectation.

The very

surface
aspect,

of

the
its

land presents a different

villages

with

and

cities

knit

together by broken stone and welded iron,

and

if

you look more narrowly you

will find

that the actual necessaries of existence are

drawn by man's hand from the ends of the

earth.

With such

a contrast before

you

it is

im-

possible to question the reality of economic

progress
fertile

but take for a background the

plains of Asia

and

Africa,

and

see

how gardens have been turned

nesses,

into wilderquarries.
:

and

great

cities
its

into

Nature has reconquered

domain

and

why ?

Because for

the

economic forces

IDEAL SOCIALISM
that

make

for progress

man

has substituted
for destruc-

or admitted those that

tion
;

make

the surrender has been due, not to

an overpowering outburst of the violence

of nature, but to the betrayal of

man by

man.
Let

me now,

with the light of these

illustrations

thrown

upon

it,

repeat

my

main contention.
socialism

I shall

try to

show that

looks

for

its

achievement to a

reversal of the processes of industrial evolution

:

it

seeks to

repress the

forces that

have made for development, and to give

full

scope to those that have led to degener-

ation.

ECONOMICS AND BIOLOGY

I

have used the favourite terminology of

the
contrast

the day in stating

betwee

16

HISTORICAL PROGRESS
and
ideal
it

AND

real progress

socialism, not be-

cause

suppose

will

really

make

the

subject

more

clear or

seem more

scientific,

but for the very opposite reason

to point out the

namely,

danger of applying the

are

conceptions
science
different.

that
a

appropriate
that
is

to

one

to

science

essentially

We

have been told recently that

political

economy must be reconstructed

of the Darwinian theory.

in the light

That theory has

revolutionised the sciences that deal with

animal

life,

political

economy

deals

with

man, man
is

is

an animal
political

and the conclusion

re-

obvious

economy must be

volutionised.

Now,

venture to say, so far from this

being the case, the Darwinian theory, even

as

guiding

hypothesis,

is

altogether

IDEAL SOCIALISM

17

inadequate and inappropriate in tracing the

industrial or economic progress of

mankind
it
is

not only
leading.
I

is

it

not

sufficient,

but

mis-

have already called attention to the

contrast between the progress of

in a

mankind

few centuries, and that of other forms

in a period that can only be

of

life

reckoned
is

by

geological ages.

The

difference

so

startling that

we may

naturally expect to

discover different principles at

work

in the

two

cases, or at the least to

find that in

the case of
play.

man new
we

forces

have come into

If then

are forced to believe that

life

the

progress of animal and plant

if

that can be called progress which results in

the fantastic
forest

anarchy of an impenetrable
to the struggle for

must be ascribed

existence, to perpetual war, to reckless dis-

HISTORICAL PROGRESS
life,

AND

regard of
the

and a consequent survival of

the principle of pre-

fittest,

if this is

historic animal progress

we ought
the

to expect

something
civilised

different

in

progress
it

of

mankind.

And

strange as

may

seem

to those

who have supposed

addition
to

that the

Darwinian theory can be applied without

modification or

the political

animal as to others, the moving principle

of industrial progress
is

not to be found in

an unceasing and bitter struggle of this

kind.

Do

not be

deceived
transfer
biological

by words
to

translate,

when you
of

them

man,

the

principles

development

into plain English.

language will
nature
of the

The mere change of almost suffice to show the

difference.

Will any one

maintain that

we

are to look for the real

causes of economic progress to robbery and

IDEAL SOCIALISM
pillage, to

19

murder and slaughter, or to the

perpetual warfare of

man

with man, family

tribe,

with family, tribe with

and nation
is

with nation
manifest

On

the contrary,

it

not

that

industrial

progress

- - the,

foundation of
in proportion

all civilisation

has advanced

to the suppression of these

animal instincts and the substitution for

them of
to

propensities

and practices peculiar

man ?
Nor can competition be properly
dethis

scribed

as

the

economic
it

form

of

struggle

because

rests

upon security
contract.

and works

by bargaining and

The analogy with the struggle for existence is to be found much more in combinations
than in competition,
as,

for

example, in
the

Trade

Unions

that

exclude

weaker

workers, and are essentially fighting organ-

20

HISTORICAL PROGRESS The essence

a

AND

isations.

of competition, as

illustrated in
is

highly organised market,

that the price will be so adjusted that

off.

at that price the supply will be carried

If

wages be considered

as

the

price

of

labour, one principal object of Trade

is

Unions

to prevent competition
;

from lowering the

price

but this prevention means exclusion,

to

and exclusion means

struggle for existence.
It
is,

the

excluded

however, in the principle of here-

dity and the effects of variation that

we
The

observe the most startling differences.

offspring of
is

man,

like that of other animals,

no doubt influenced or even determined

heredity, but this hereditary influence

by

affects

individuals

only.

And
to

industrial

progress

has

consisted

very small

extent in the improvement of the natural

IDEAL SOCIALISM
qualities of the individual types of

21

workers

taking the word in

its

broadest sense,
as well as the

and including the highest

lowest

the workers with brain as well as

the workers with hand.

as

The medieval man,

man

the world was recently told from

this

very place by a very fine judge of

mankind 1

was perhaps superior to

his

modern descendant.
because

And

yet

it is

precisely

man makes

use of the accumulated

wisdom

of his ancestors,
it,

and generation by

generation adds to
gress
is

that industrial prothis

possible.
it

But

wisdom and the

additions to

are not passed from parent

to child in the texture of the brain or the

form of the hand.

Once an idea has been

set in speech it is free to all

who have

ears

to hear,

and once an invention has been

1

Mr. Gladstone's Romanes Lecture.

22

HISTORICAL PROGRESS
it is

AND
who have

shaped in matter
eyes to
see.

free to all

And

thus a variation in the direction of

progress, instead of having to trust to the

remote chance of transmission by individual

inheritance, passes at once into the inherit-

ance of mankind

new

idea

is

not, as

with some

slight

improvement
as

in animal

mechanism,

transmitted

potential

capability only to the children of the in-

ventor, but at once vibrates through space

and time, and wherever

standing quickens
it

it

finds an under-

in unison.

That

is is

the reason

why

the progress of

mankind

immeasurably more rapid than

that of the anima] world and advances with

an increasing rate
thus

of

acceleration.

And

we

arrive at the astounding result that,

within a limited period, there

may

be in-

IDEAL SOCIALISM
dustrial progress to

23

an indefinite extent,

whilst the individuals

who

take part in

it,

or effect that progress, remain in

mind and

body

practically stationary.

Consider the difference in

case.

concrete

century of natural

selection

three generations of the race of savage

man

would not increase

to a degree that could

be measured the acuteness of his sight to

discern

danger or his power of voice or

speech to warn his fellows.

prehistoric time,

century of

judged by

its effects, is as

momentary
our

as in the distance it appears to

imagination.
in

But

in

this

present
civilised
I

century

three

generations
see,

man

has learned to

or

must

say

perceive? the metals in a planet and the

germs

in

a disease

and, as

if

time and

space were not, to hold counsel with his

24

HISTORICAL PROGRESS
on
the
other

AND
of

fellows

side

the

world.
It is surely unscientific to search for the

explanation of this progress that

is

peculiar to

man,

in

which the improvement of the indivilittle,

dual counts for so

in the principles of

the progress of animals, in which the improve-

ment

of the individual counts for everything.

is

There

a sense or rather there are

many

senses in which
evolution,

we may speak of industrial but we cannot discover the

that
evolution

processes

of

by drawing

superficial analogies
It

from plants and animals.

is

sounds very well to say that the State

an organism, and therefore must obey the

laws of organic growth
this
;

but so

far

from

being the latest product of modern

science, it is

merely a simile which has been

used from the most ancient times, and has

IDEAL SOCIALISM
given
rise to

25

more

fallacies

possibly owing

to its frequency

than any other analogy.

True

science, as

you

all

know

in

your own

special departments, special

cannot dispense with

evidence.

Can

you

deduce

the

development of a frog or of a black beetle

from the general laws of organic growth
?

On

the contrary, do they not

;

demand the
and do you

work of hundreds of observers

imagine that the societies of mankind can

be explained by this easy appeal to
principles
?

first

Science would degenerate into

if

mere rhetoric

once

it

were thought that

for different

special evidence

was not needed

departments.

If

you are

sufficiently

vague

you can make

this easy

method of analogy
to prove that

prove anything.
the capitalist
is

If

you want

an

evil,

compare him to the

boa-constrictor that swallows the labouring

26

HISTORICAL PROGRESS
;

AND
a blessing,

ox and
call

if

you want

to prove

him

him the sheep that is shorn by the One simile is as good as labouring man.
another for
its

purpose, and both are better

first

than an appeal to the

principles of

organic growth, and the latest theories of

Weismann on the games

In
the

of chance played

with one another by hypothetical germs.

industrial

world,

as

in

other
in-

departments
animate,
fact

of

nature,

animate
step

and
step,

we must proceed

by

and

by

fact,

and not by the easy method of

anticipation

by analogy and

desire.

We

need,

it is

true, as in
;

every other science,

guiding hypotheses

but the results obtained

verified
is

must be constantly
facts.

by an appeal
confirmed,

to

If

the

appeal

the

hypothesis becomes a law or a generalisation

in the

same way

as in

any other

science.

IDEAL SOCIALISM
I

27

proceed to consider some of the general-

isations

made by economists

in this

way on
of the

the industrial progress of mankind, and to

contrast
socialists.

them with the proposals

SOCIALISM AND TAXATION

In
order
to

emphasise

the

difference

between the appeal to actual

gress

historical pro-

and

to the

vague analogies derived from

I will

evolution in general,

begin with one

of the causes of the decay and even of the

destruction of nations in which the facts are

unquestionable and are yet peculiar to man.

The cause
taxation.

mean

is

simply excessive
is

The mere word

enough

to

show that we have taken the plunge from

the general into the particular.
If taxes

28

HISTORICAL PROGRESS

AND

are not facts, then there are not, and there

never have been, any facts within the ken

of man.

No

subject
;

is

better adapted for

scientific research

materials

may
;

be drawn
if

from

every

time

and

place

in
is

the

language of logicians to be taxed

not of
it

the essence of civilised man, at any rate

is

an inseparable accident.
I

would cordially recommend the evolu-

tionist in search of

new
to

fields

and prepared
the
origin,

to

work

at

them,

trace

development, multiplication, and decay of

taxes.

He

could, if he chose, introduce all

his favourite biological expressions,

and he

would find the old taxes quite

as fossils,

as interesting

and the study of new ones more

interesting than vivisection.

By

taxation, broadly speaking,

we mean
of the

the share taken

by the Government

IDEAL SOCIALISM
wealth of the nation.
It is

29

most important

to look beneath the surface,

and not to be

deceived by words.
all

favourite device of

governments

is

to call taxes

by some
of

less offensive

name.

The Government

the great French Revolution decided that

taxes
called,

or

imposts (impdts), as they were

were only exacted by tyrants, and

call

they proposed therefore to

the payments

made by free citizens contributions. own kings called taxes benevolences

prettier word.

Our
a
still

But names make no

;

differ-

ence to things

and whether the burdens

of the State take the form of land revenues,

or

compulsory military

service,

or

forced

labour, or tithes of produce, or fifteenths of

property, or

all

or

any of them
get

at once,

whenever
certain

these
it

burdens

beyond
less

amount

means nothing

than

30

HISTORICAL PROGRESS

AND
are
cite

the ruin of the nation.

so

The examples

numerous that

it

seems useless to

any.

By

excessive taxation

Kome

ruined
;

her provinces and shattered her empire

France accumulated the miseries that broke

into

the

great

Revolution
fertile

Turkey

laid

waste the most

regions of the earth.

is

At

this

moment

Italy

smouldering with

discontent,

and even the vigorous colonies

feel

of

Australia

their

progress

checked

through the immoderate expenditure of the

State.
It is true that the evils of excessive

taxation are to some

extent mitigated

if

the proceeds are

spent for the apparent

for education, secular
relief

good of the people

and
for

religious,

for the

of the

poor,

the employment

of the

unemployed,

or for national defence.

evil

But although the

all

may

be mitigated,

history shows

IDEAL SOCIALISM
that,
for

31

whatever purpose taxes are imis

posed, there
is

a limit

beyond which there

a rapid

fall

through decay to destruction.

for the reality of

So much

one of the

great causes of the degradation of nations.

Now

consider the contrast offered

by

ideal

socialism.

Stripped

of
is

all

disguise,

the

very object of socialism

to impose taxes

beyond the

limit

ever yet attempted

by

the rapacity and audacity of governments.

Instead of a land tax, the State

the

is

to seize

land

itself;

instead
it is

of paltry

death

duties on capital,
itself;

to take the capital

and from

the

incomes

that pay

income

tax, instead of taking a miserable

it
is

eightpence,

to take

twenty

shillings

in the pound.

Perhaps

it

may seem

strange

I sincerely

hope

it

may,

for familiarity is the

bane of

32

HISTORICAL PROGRESS
insight
it

AND
strange
to

critical

may seem

speak of socialism in terms of taxation.

It

seems so simple, so pleasant, so

nice,

to think of the State

owning

all

the land

and

capital

and distributing the proceeds

it

according to needs or deserts, and

as if

looks

we had got

rid of taxation altogether.

In reality on this system

expressed in

terms of taxes
to

every one might be said

earnings as poor rates,
relief.

pay away

all his

and receive an allowance of out-door

But whatever might be the

there
is

final result,

no doubt about

the

period

of

transition from the present system to the

ideal.

If in the

meantime socialism

is

to

be regarded as a tendency
political action
it

as a guide to

can only operate through

increasing as rapidly and as

sible

much

as pos-

the taxes

on land and

capital,

and

IDEAL SOCIALISM
the higher

33

forms of professional income.

device

No

better

could be imagined
is

for

checking industrial progress, as

proved

by the history

of every country.

It

would
;

be to introduce a creeping paralysis

and,
for

when

the

time was

considered ripe

taking over the land and capital, the land

would be a wilderness, and the

iron.

capital old

Surely there never was a better instance

of the disregard of the teaching of history,

and never a better

ordinary

illustration of the extra-

flexibility

of

language

and

its

wonderful power in

disguising

thoughts,

than that people should be found to set

up

as

an

ideal,

excessive,
it

all-absorbing

taxation, and describe

as the latest

in

glowing terms
phil-

and greatest mode of

anthropy.

34

HISTORICAL PROGRESS

AND

SOCIALISM AND EXCHANGE

I

have already insisted at some length

that

we must expect

to find the roots of

industrial

development in the propensities

and practices peculiar to man.

Amongst

Adam
barter,

these propensities is one which Smith calls " the propensity to truck,

and exchange one thing

he goes on to
say,

for another."

"

It is,"

"common

to all

men, and to be found

in

no other race of
neither this

animals, which seem to

know

nor any other species of contracts."

then,

And

by way of
"

illustration,

he observes
fair

that

nobody ever saw

dog make a

and deliberate exchange of one bone

another with another dog."
the difference between
of animals

for

As thus

stated,

man and
a

other races

may seem

mere

curiosity,

but

IDEAL SOCIALISM
it is

35

a curiosity that on examination proves

to be one of the principal factors in industrial

progress.
to
is

To

trace its

developof

ment would be
civilisation.

trace
part,

the

history

It

and a principal
status

part, of the great

movement from
a
series

to

contract.

By

of

struggles
%

against custom, superstition, and authority

of

endless

varieties,

and

by numberless
in

trials

of tentative processes, exchange

the most advanced communities has come

to be the fundamental principle in the pro-

duction and in the distribution of wealth.

The expenditure of a workman's wages

the last of an infinite
series

is

of complex

bargains and exchanges, which provide

him
life.

with the necessaries and comforts of

It

would be
of

impossible

to

estimate the
in

number

exchanges

involved

the

36

HISTORICAL PROGRESS
production
of a

AND
industrial

daily
nation.

great

And

similarly as regards the distribution

of wealth,

the

principle

of

exchange of

services has gradually overpowered or sup-

pressed other principles.

The share of an
is

animal in the feast of nature

it
(
(

as

much
in

as

can grab,

the share of a
is

man

the

annual produce of society

can bargain
for.

as

much

as he

The only

difficulty in realising the

mag-

nitude of this peculiarly

is its

human

propensity

familiarity,

and

to dispel that familiar-

ity

we must

appeal to history, and to history

written in such detail as alone can recall

the
life

of the past.
I

Again

would

invite the evolutionist to

study the actual developments of markets,

of foreign trade, and of the substitution of

IDEAL SOCIALISM

37

money

rents

for

rents

in

labour and in
for various

produce, and of

money wages

kinds of serfdom.

Merely by way of example

trate

let

me

illus-

the

enormous

development of the

principle of exchange

by two statements.

About the time of the Norman Conquest

one of the principal imports
so great as to

be a considerable part of the whole

the bones and other relics of saints.
gives
trade.

was
That

you some idea

of the progress of foreign

At

the

same time the chief and

almost the only industry of importance was

agriculture,

and the mass of the people were

in serfdom or

some other form of bondage.

That gives you some idea of the progress

in the exchange of services.

But

it is

useless to attempt to illustrate

so vast a subject,

and

it

ought to be need-

38

HISTORICAL PROGRESS
So fundamental
is

AND

less.

exchange that the

deals mainly with

political

economy which

modern
the

societies is forced to

make exchange
and

leading

principle

throughout,

historically one of the best

marks of the
nation
its
is

stage of development of a

the

degree of the organisation of

exchange,

applying the
labour
of
all

term

in its

widest sense to
well
as

kinds

as

to

com-

modities.

Industrial progress has been

marked by

a constant contraction of the sphere of im-

perative law or equally imperative custom,

and by a constant expansion of the sphere

of

freedom

of

contract,

and

especially

freedom of exchange.

And

yet, here again, ideal socialism not

merely underrates or ignores, but seeks to

repress

and

destroy

this

vital

principle.

IDEAL SOCIALISM
The very essence of
of exchange.
socialism
is

39

the abolition

So
is

far is

this idea pushed,

and so complete

this abolition to

be made,
is

that the use of any form of

money

to

be abandoned, and production and distribution

alike

are to

be determined, not by

contract,

by

bargain,

by exchange, but by

authority.

SOCIALISM AND LIBERTY

The

substitution of authority for freedom

of contract deserves a closer

examination

with respect to labour, taking the term in

its

widest sense,
it

for

expressed

in

other
of

words

involves

the whole

question
is

personal liberty.

Industrial liberty

only

part of that larger liberty which through

centuries

has been

the motive

power of

40

HISTORICAL PROGRESS
progress,

AND
island to

human

and

in

this

greater extent than in any other portion

of the earth.
Industrial liberty has

ad-

vanced side by side with the destruction of

political inequality, of religious intolerance,

and of

all

kinds of antiquated laws and

'

customs founded on privilege and prejudice.

There

is

no great deed in our history in

which the love of liberty did not bear a

prominent
part,

and there

is

not one of our

great poets
of liberty.

who

has not sung the praises

is

Liberty

the only justification,

universally

recognised

by

moralists

and

historians, of war,

and the

justification exit
is

tends even to

civil

war

and

through

the wars and the civil wars of our forefathers that

we

are enabled

to look

upon
in-

liberty as the natural

and inalienable

heritance of the race.

IDEAL SOCIALISM

41

Now
to

consider the attitude of socialism

liberty.

Under
is

the

ideal

of

state

socialism every one

to be compelled to

labour, just as, under the present system,

with few exceptions, every one capable of

it

does labour

the difference

is

that neither

the task nor the wages will be a matter ofJ

choice or stipulation.

But
a

this

is

neither

more nor
labour,

less

than

system
to

of forced
realise
it

and the best way

is

the
its

nature of such a system

to call

by

proper name, and that

like taxation, is

is

slavery.

Slavery,

not an attractive word, arid

of negroes
it

to

us

is

only suggestive

and
be

sugar-plantations,

and perhaps

may

thought, as the socialists will be of a different

colour,

and have

different occupations, they

cannot properly be called slaves. suppose then

for the

Let us

absence of liberty

42

HISTORICAL PROGRESS
certainly slavery of

AND
that the
is

is

some kind

correct analogue of ideal socialism

not

negro slavery, but one of those milder forms

that prevailed in some of the nations of
antiquity:

In Greece and
all

Rome

not only

was practically
slaves,

industry carried on by

but

many
art,

slaves received the highest

education in

philosophy, and literature.

in con-

Not only were they more valuable

sequence,

but

they

often

obtained

the

friendship of their masters.

that,

It is possible

on the whole, domestic slavery yielded

a very fair

amount of happiness

it is

certain

that slaves often attained the highest moral

dignity.

Eecall the instance given

historian of the slave who,

by the

Roman
soldiers

when

came
I

to kill his master, boldly re-

"
plied,

am

the man," and was slain forth-

with.

There you have a kind of altruism

IDEAL SOCIALISM

43

" noble which was well immortalised as a

lie."

But do you think that any strength of

imagination, or any persuasiveness of words,

could induce
benefits

people

who had

felt

the

and the manliness of

liberty again

to submit to slavery in

any shape

or form

Do you
elected

think

it

would reconcile them

if

their masters

were to be a central assembly

by themselves, with committees and sub-committees ad infinitum until we reach

the state-bailiffs, overseers, and managers

chosen,

we

will
?

suppose,

by competitive

examination

The opposition between real progress and ideal socialism on this question of
liberty cannot be

shown by one example,

It is

or
is

even by many.

an opposition that
Slavery, large as

marked throughout.

it

44

HISTORICAL PROGRESS
before
is

AND
example.

looms
Liberty

us,

is

but

one

as essential to the reason as to

the spirit of mankind.

in
science,

Every revolution
invention
in in

every

radical
has,

mechanical

appliances,

the

past,

been opposed by some form of authority,

if it

be only that most deceptive but most

all

oppressive of

public opinion.
this century,

The progress of
science or
in

whether

in

industry,

could never have

been achieved but for the obstinate persistence

of individuals

against received

and
rail-

popular opinions.

The introduction of
generally

ways

and

of

machinery

was

assailed as fiercely as later

on the Darwinian
socialistic

theory.

Under the new

the
for

regime

how would
authorities

man
you

be regarded by the

cannot

have

the

singular without the plural

who showed

IDEAL SOCIALISM

45

that the labour of skilled workers might be

dispensed with by some radical invention

Are these labourers alone to benefit

if not,

And
The

how

is

the fair share of the relief to

?

be distributed throughout the nation

truth
is,

that
if

authority

must work by

routine,

and

you upset the routine you

upset the authority.

I

must ask your indulgence

for

this

extremely brief and inadequate treatment

of a vital part of the question, but in every

argument we must be allowed to take something for granted, and pass over lightly

what

is

generally admitted.
of

And
eve

in the

middle

England,

on

the

of

the

twentieth century,

it is

hardly necessary to

do more than

recall the incalculable benefits

of freedom, with which the greatest

in

names

our history and literature are associated.

46

HISTORICAL PROGRESS

AND

SOCIALISM AND SECURITY

There

is

perhaps only one other contrast

real

between the
fitly

and the

ideal

which can
already

claim
If

attention

after

those

noticed.

we were

to try to express in

one word the opposing principle in mankind

to

the

struggle

for

existence
is

in

animals, the
security for
one's
self,

word best adapted

life

security-

person and property for

for the

and corresponding respect

wealth
of
others.

persons
security,

and

Shake
of .the

introduce

the

discord

natural

savage state,
;

and industrial pro-

gress ceases

shatter security, and industry

itself vanishes.

It is

not necessary, for the purpose in

hand, even to indicate

how

the absolute

necessity of security to industrial progress

IDEAL SOCIALISM

47

has been shown through the whole course

of history, because
it is

contended that here

at least the ideal corresponds with or even

transcends the

real.

Are we not told that

is

the very object of socialism

to put an

end to competition and every other survival

in

man
if

of the struggle for existence,

security
is

and

thus,

the

opposite
?

of this
objec-

struggle, to increase security

tion
is

The

plausible, but there

are

two con-

clusive answers.
established,

Let us grant that, once

like

socialism,

other forms of

government, would enforce security of some

kind.

But the

vital question

is,

Of what

kind?
There
is

species of security that

;

is

afforded even

by despotism

most republics

have at times been obliged to choose a

dictator.

Custom

also,

which

in

unde-

48

HISTORICAL PROGRESS
is

AND

veloped countries
powerful

more general and more

affords
it

than

law,

species

of

security that renders

certain

possible to attain a

standard of industrial prosperity.

the

But the security that distinguishes

nations that have taken the lead in industrial

progress

is

not the security of despot;

ism or of custom

it is

not the security of en-

forced obedience, but the_securit^of^ liberty.

It
is,

however, too large an assumption

is

to

suppose that socialism

established.

We

must consider the

effects

on security in

the period of transition from the present to

the future system.

Now,
;

for all its fair

name, the road to

It is easy

socialism lies through anarchy.

to speak of the state taking possession of

all

the land and capital of a country.

of a

The

land

country

even a countrv like

IDEAL SOCIALISM
this
is

49

held directly and indirectly by a

of people
are
all
is
;

large

number
there
is

besides the nominal

sorts
still

owners

of

interests.

What

true of land

more true of

capital.

Does any one suppose that the

owners
will

present
struggle,

submit,

without

to surrender their wealth to

an

assembly,

constituted

in
it

any
calls

way you
itself

choose, simply because

the

State

Thirty years ago the most advanced

civil

country in the world was plunged in

Avar,

simply because some of

its

component

states

would not surrender the ownership

of their living capital.

And

only

few

days ago the United States seemed to be

threatened with
a
still

worse

civil
first

war

because labour had taken only the

step

towards the seizure or management of one

form of dead

capital.

50

HISTORICAL PROGRESS

AND
it is

In socialism, as in other things,

true

that extremes meet, and the extreme that

socialism meets
is

anarchy.

OTHER POINTS OF CONTRAST

The great
principles
I

have brought
sufficient

under your notice are more than

to

show that socialism

but impossible.

is

not only undesirwould, however,

able

It

be easy to extend the points of contrast

between the real and

its ideal

counterpart.

The same reasoning which was applied

to personal liberty

might mutatis mutandis

be applied to private property.

tution of private property, as
exists in the
it

The

insti-

at present
is

most

civilised

communities,

a remarkable instance of the substitution of

individual for

common

ownership.

It

would

IDEAL SOCIALISM

51

be absurd to attempt to compress a whole

literature into a

few sentences, and

I shall

only notice one broad feature of this

of industrial progress.

mode

This disintegration

of the tribal, the village, or the family com-

munion of property was not due

deliberate action of skilful
legislators.

to

the

and far-seeing

in its

The process began whilst law modern sense was in its infancy and
It

utterly incapable of such an effort.

was
of

coincident

with the gradual

assertion

the rights, the powers, and the interests of the individual.

Legislation,

when

it

be-

came

really effective, either recognised

and

assisted

the

movement, or

else

the laws

were evaded until they were reformed.

In

England agrarian serfdom and cultivation

in

common were broken down

by natural economic

in the

middle
Grer-

ages

forces.

In

52

HISTORICAL PROGRESS

AND

many

the separation of the noble land and

the peasant land

only took place in the

present century, but the action of Govern-

ment was
not,

forced

by circumstances.

must

however,

be led aside into

details,

though the

details are of such

magnitude

as to form the basis of the social history of

nations.

For the present

purpose

it

is

sufficient to notice that the substitution of

collective for

individual ownership

is

not

simply to introduce one set of laws in place

(

of another, but to run counter to the whole course of industrial progress in which legis-

lation has been only one

and not the most

important

factor.

Again, with reference to the limitation

of governmental
interferences,

we might

prove by a multitude of examples that, not

of choice

but of

necessity,

governments

IDEAL SOCIALISM

53

have been [forced to abandon to contract

large spheres of their former control partly
.

i-

because their energies were unequal to the

task of keeping pace with the progress of

mankind, and partly because the burden of

their

necessary

functions

had

increased.

And

even at the present day the most

advanced nations, in spite of the contraction of the sphere of imperative law

and

the

devolution

of

governmental powers,
all

cannot overtake the legislation that on

sides
is

admitted to be necessary.
yet socialism proposes to throw on

And

Governments
ments, which

on representative Governcannot do
the

work they

ought to do

work, such as the regulation

/i

of wages and employment, which the history

of civilisation shows they cannot do.

If these

and other points of contrast

54

HISTORICAL PROGRESS
it is
is

AND

have been omitted,

wealth of material
necessary
to

simply because the

it

so great that

was

make

choice.

Socialism

avowedly wishes to make an end of the

present system, and as the present system
is

unquestionably

the
it is

outcome

of

the

growth of centuries,
nearly
all

inevitable that on

points of importance the ideal of

the future should be opposed to the real of the past.

I

have confined myself to a general

treatment of the question because any real

danger that there

definite proposals

is

in socialism lies, not in

for

they are constantly

shifting

and changing
of
principles

but in the pro-

pagandism

opposed

to

all

history amongst those

who know no

history

whatever.

Nothing

is

more easy and more

attract-

IDEAL SOCIALISM

55

ive than gradually to increase the expenditurje

of the State on public schemes of

all

sorts,

and nothing

is

more

difficult

and

more

distasteful than to retrace the steps.

is

Nothing

more natural than that a maseek

to

jority should

coerce

minority,

and

to call in the aid of

Government.

The

trade

unions at

present are rapidly adfor,

vancing in the direction of asking

and

possibly acquiring, those monopolistic powers

which destroyed the

guilds.

But

if

they

attain these powers, before they are content

to part with

them trade unions may no

there
is

longer be
trade.

necessary, because

no

And
is

especially as regards security,

destruction
difficult.

easy and reconstruction most

in

Only consider what happens

crisis
its

a commercial
firm cannot

when

single

great
at

meet

liabilities.

Look

56

HISTORICAL PROGRESS
still

AND
going on in

the liquidations that are

consequence of the Baring

is

crisis.

Nothing

more

sensitive than credit in all its forms

and branches.

The whole system

is

the

result of centuries of growth, of slow, tentative processes, of experiments

and

failures.

There

is

not in the animal world any-

thing more wonderful than the development

of the present credit organisation of the

commercial world.

And
the

to

destroy this
effect

system would

have

same

as

taking the nerves out of a living man.

SOCIALISM AND ALL THE VIRTUES

The question, however, may be asked,

If ideal

socialism resolves

itself

into

all-

absorbing taxation

and
its

practical

slavery,
lies

and

if

the

road to

achievement

IDEAL SOCIALISM

57

through anarchy, how do you account for

the large following
it

has obtained

The

answer,
the

I conceive, is

that the largeness of

following

depends

mainly upon the

largeness in the interpretation of the word.

Socialism claims for itself not only

all

the

land and
tions

all

the capital, but

all

the aspira-

and

all

the virtues in the State.

Every

man

with a spark of enthusiasm or philanif

thropy,

not a pure

socialist,
is

is

mixed

socialist, or at

any

rate he

credited with
believe in

socialist leanings.

Does
?

man
is

Christian
socialist.

charity

He

Christian

In

the religion

of

humanity

An

agnostic socialist.
social

In the democracy?

democrat.
socialists,

Then you have the

with
their

utilitarian

greatest
;

happiness

of

the

greatest

number
H living

the
;

labour socialists

who want

wage

58

HISTORICAL PROGRESS

AND
for the

the revolutionary Socialists

who long

death of the present system, embracing the

anarchist

who

is

ready to bring

it

about

quickly by violence, and the Fabian

patiently

who

waits
;

for

suicide

or

death by

natural
rapidly,
relief,

causes

and, to

summarise more

any one who approves of poor

or State

or protection of children,

education, or factory acts, in short, any one

who
for

looks to

Government
good
is

to
set

do anything

the

public

down

as

socialist, or as

one with leanings.

the
socialist

In the

enumeration

of

census

the

landlords and capitalists are, of course, left

out as being prejudiced

and when the

numbers are complete there remain on the

other side a few malefactors, and the professors of

orthodox
all

political

economy.
it
is

But

in

seriousness,

time to

IDEAL SOCIALISM
protest

59

against

the

preposterous

notion

that every reform in the interests of the

masses or of the nation

socialistic

is

an example of the

tendencies of the age.

The tend-

encies of this, as of every other age, are

partly for good and partly for evil, and in

both respects their roots stretch far into

the past and into widely distant regions
the forests of

Germany, the

hills

of

Kome,

and the

acres of Palestine.

The question
is

the socialist ought to dare to answer

this

Does socialism

mean
?

reform,

or

does

it

mean

revolution

It

cannot mean both.

Do you

propose in the style of a Eobesconfiscate the land itself,

pierre to

or in

the style of a John Bright to reform the

land laws

You cannot

at the

same time

wear on the same head the red cap of

anarchy and the broad brim of the Quaker,

60

HISTORICAL PROGRESS

AND

though you

may

indeed change your head-

gear according to your company.

It
is

time to protest also against the

equally false idea that the political economy

of

Adam

Smith and
for

his successors consists

of one

maxim

the

Government

"Do

nothing," and of another for the governed " " Be No economist ever

Be

selfish."

said,

selfish,"

least

of

all

Adam

Smith.

This

same
moral

Adam Smith
Sentiments.
is

wrote a great work on

philosophy called

The Theory of

Moral
suppose

And what do you

standard, the test
this

the

ethical

of good conduct, set

up by
?

supposed

teacher of pure
in
his

selfishness

It is this

own words

"
:

Those passions of

human
the

nature are to be approved of when

of

heart

every

impartial

spectator

entirely sympathises with them,

when every

IDEAL SOCIALISM
indifferent

61

bystander entirely enters into

In a word,

and goes along with them."

the
kernel
is

of

this

elaborate

system of

morality

not selfishness, but sympathy.

strange contrast this to the moral sentiof

ments
classes

those
tell

leaders

of

the

working-

who
feel

them they must make the

power,

public

their

must make the

public suffer

the public, for the most part,

being the wives

workers.

and

children

of

other

Equally

false is the

"

do nothing

"

maxim

ascribed to political economists as the sole

guide for governments.

ists

Because the

social-

wish the State to do everything, they

suppose or assert that

to

we wish
it is

the State

do nothing.

But

certainly not

those

who

find the great forces of industrial

progress in security, liberty, and freedom of

62

HISTORICAL PROGRESS

AND
the
con-

contract

who propose
life

to

break

tinuity of social

by burning the
the

statute

book

and

destroying

constitutional

powers of the various branches of administration.

speak in

Nor do we suppose if I may their names that the old laws

sufficient for

and the old powers are

emergency.

every

Security and liberty are con-

stantly being threatened

disorder,

by new forms of

and new forms of crime demand

new

penalties.

And

further, the

growth of knowledge
possibilities

and of industry opens up new

for the beneficial action of the State

and

the

municipalities,
duties.

and even

imposes on

them new

IDEAL SOCIALISM

63

CONCLUSION

But herein

lies

the difference.

When

the whole course of history shows that the

recognised functions of the State are more

than

sufficient for the limited capacities of

as-

governments, we protest against the

sumption of burdens which long ago they

have
been
of

forced

to

throw
the

aside

the
of

direction

capital,

management

land,

and the regulation of wages.

Let
the

me

again invite your attention to

of

permanence

the

individual

type,

taking the average of a nation, relatively to

the tremendous changes that take place in
a comparatively short period, measured
historical

by
in-

and not geological time,

in

dustrial organisation

and productive power.

The

feelings

and passions are renewed with

64

HISTORICAL PROGRESS
generation
;

AND
intellectual

every

even

the

capacities remain as limited as the physical

powers
that
is
is

in other words, it

is

only knowledge

accumulated, and not reason that

sharpened.
It

follows,

then,

that

any scheme
for

of

government, any proposal

revolution

which really assumes that the human nature

of the governed

and that the

capacities of

the governors have suddenly changed indefinitely, is

pre-doomed to
is

failure.

And

that

the vital mistake of socialism

for it is

only possible on the assumption

that

the

masses of the people suddenly

by

become

nature

infinitely

more

dis-

interested,
infinitely

and those placed

in

authority

more wise and prudent.

socialism
is

The root of
a
false

to be

found in

scientific

method, and unless the

IDEAL SOCIALISM

65

method be exposed and the root destroyed, off the leaves and it is useless to cut
branches
;

they will spring up again in a

day under the heat of imagination and

enthusiasm.
lies

The

falseness of the

method

in the neglect of the actual industriaj

It is true that
it is

development of mankind.

the socialists refer to history, but

that

kind of history which consists in the search

for

illustrations
ideas.

of

preconceived

opinions

and

It is precisely analogous to the

history which supported the

social

theory of a

compact.

The philosophers of the

eighteenth century professed to explain the

nature of

political

societies

by

asserting

that on an early day, in a far-off place, the

people had

made
;

a general agreement with

one another

in the interests of peace

and

prosperity they had contracted themselves

66

HISTORICAL PROGRESS

AND

out of certain natural rights and agreed to

submit to Government.

The only history

brought forward in support of this theory

was a species of natural history

natural that
contract,

it

seemed
a

men

should have

made such

and therefore they did make

it.

But
facts,

as soon as history,

founded on actual
it

was applied

to this theory

became

so nebulous

and confused that the

it

difficulty

was

to put

in a

form that would admit of

disproof; even to

comprehend

it

was

like

grasping a mist with the hands.

The socialism of the nineteenth century

has taken the place of the social contract of
the eighteenth, with this difference, that
it

seeks to foretell the future instead of ex-

plaining the past.

The

socialists

suppose

that at some indefinite time the people will

again meet in a national assembly and tear

IDEAL SOCIALISM
up the old
contract,

67

and frame a new one

according to the principles of natural justice.

The attempt may be made,

hundred years ago, but that
is

as

it

was a
succeed

it will

against the teaching

of history.

The

social contract of the future is as

nebulous

and unreal

as the social contract of the past.

ideal

Not that the

by the

must be altogether limited

all

real, for
;

that would be to destroy

progress

but you cannot place a great gulf

for that

between the past and the future,

would be to destroy the present, and you

cannot build up an ideal that will endure
except on the foundations of the
real.

THE END

Printed by R.

&

R. CLARK, Edinburgh,

WOKKS ON ECONOMICS
PUBLISHED BY

ADAM

&

CHAELES BLACK

PRINCIPLES OF POLITICAL
J.

ECONOMY

SHIELD NICHOLSON, M.A., D.Sc.

Economy in
the University of

Professor of Political

Edinburgh.

CONTENTS
BOOK
CHAP.
I. I.

PRODUCTION
PAGE

Utility

II.

Production

III.

IV. V. VI. VII. VIII. IX. X.

Consumption Nature Labour

Capital Division of Labour Production on a Large and Production on a Small Scale

The Principle of Population XII. The Growth of Material Capital

XL

Large and Small Farming The Law of Diminishing Return and the creasing Return
.
.

23 32 48 66 72 87 104 122 138

Law
.

of In.

.151
175 197

BOOK
I.

II.

DISTRIBUTION

The Distribution of Wealth The Institution of Private Property III. Bequest and Inheritance IV. Property in Land and Compensation V. Competition and Custom VI. Custom and Village Communities
II.

....
for Expropriation
. .

VII. Feudalism VIII. Modern Ownership of Land and Industrial Freedom IX. Contracts for the Hire of Land X. Wages and Theories of Wages XL Relative Wages XII. The Effects of Law and Custom on Wages XIII. Profits
.

219 235 249 256 268 272 290 307 314 324 348
388 402

.357 .424
,

XIV. Economic Rent

XV. Economic History and Economic Utopias

Index

435

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it

A TREATISE ON
AND

MONEY

ESSAYS ON MONETARY PROBLEMS

BY
J.

SHIELD NICHOLSON, M.A., D.Sc.

'

Professor of Political

Economy in the University of Edinburgh. Author of Principles of Political Economy.'

Revised and Enlarged Edition.

Crown

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Price

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CONTENTS
PART
CHAP.
I.
I.

A TREATISE ON MONEY

II.

III.

IV.

V.
VI.

VII.
VIII.

Difficulties in the Study and Practical Importance of the Subject Functions of Money Material Money and Requisites of Good Coinage Gresham's Law and Token Coins The Quantity of Money and General Prices " " Effects of Credit or Representative Money on Prices Influence on the General Level of Prices in any one Country of the General Level of Prices in other Countries Effects on General Prices of the use of botli Gold and Silver as
.
. .

.......
. . .
. .

PAGE
3

.34 .43 .54

.

14

72

Standard Money

....
:

.85 .92

PART
I.

II.

ESSAYS ON PRESENT MONETARY PROBLEMS

and the Greatest Speculative Mania on

John Law of Lauriston

Record

One-pound Notes for England III. The Effects of Great Discoveries of the Precious Metals IV. Bi-metallism both Advantageous and Practicable V. The Morality of Bi-metallism VI. Stability of the Fixed Ratio between Gold and Silver under
II.
.

......
. .
.

109 152

165 220

.190
Inter-

national Bi-metall ism

.247
Monetary
.

VII.

The Measurement

of Variations in the Value of the

VIII.

IX. X. XI. XII. XIII. Capital and Labour their Relative Strength XIV. The Indian Currency Experiment
.

256 Standard .286 Causes of Movements in General Prices .324 Mr. Giffen's Attack on Bi-metallists 342 Mr. Alfred de Rothschild's Proposal to the Monetary Conferences .348 The Missing Link between Gold and Silver 354 The Living Capital of the United Kingdom
.
. .

.....
. .

.374
394

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who

conceptions and loftier platforms of thought.

Sensuous phenomena

It is, as we may call it, suggest, but cannot constitute these. this luciferous power of mental application which sustains men like Adam Smith in their flights from earthly to celestial eminences. Smith lived befere his 'day, and therefore incurred the customary It is the dust which the great man's chariot penalty of obloquy. Wisdom is uprears as it sweeps forward on the path of progress. justified of her children, and the vindication of such men arrives sooner or later. Society marches majestically onwards towards the

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HISTORY OF SOCIALISM
BY

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In Crovra 8vo.
300 pages.

Price 6s.

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THE

ENCYCLOPAEDIA BRITANNICA.
A Dictionary
of Arts, Sciences,

and General Literature.

NINTH EDITION.
Contains articles by the following Economists
:

W.

S.

JEVONS.

THOMAS KIRKUP.
J.

SHIELD NICHOLSON.
SPRAGUE.

T. B.

Eight Hon. LEONARD H. COURTNEY.

Mrs. FAWCETT.

HENRY
J. E.

SIDGWICK.

EGBERT SOMERS.

THOROLD EOGERS.

E.
J.

W. BRABROOK.

INGRAM.

F. A.
C. F.

WALKER.
BASTABLE.

Prince KROPOTKINE.
In 24 Volumes and Index.

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price Is. Qd. each.

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